<PAGE> 1
[AIM LOGO APPEARS HERE]
[GRAPHIC COLLAGE APPEARS HERE]
AIM GLOBAL INCOME FUND
ANNUAL REPORT
OCTOBER 31, 1995
<PAGE> 2
AIM GLOBAL INCOME FUND
For shareholders who seek a high level of current income. The Fund invests in a
portfolio of debt securities issued by U.S. and foreign governments and
corporations.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Income Fund's performance figures are historical and
reflect reinvestment of all distributions and changes in net asset value.
Unless otherwise indicated, the Fund's performance is computed without a
sales charge.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B 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 performance of the Fund's Class B shares will differ from that
of Class A shares.
o One-year performance includes reinvested distributions for Class A and
Class B shares of $0.82 and $0.77 per share, respectively.
o The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o The Fund's portfolio composition may change and there is no assurance the
Fund will continue to hold any specific security in any particular
country.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Lehman Brothers Government Bond Index is an unmanaged composite
generally representative of intermediate- and long-term U.S. Treasury and
U.S. government agency securities. The Salomon Brothers World Goverment
Bond Index is an unmanaged composite of long-term foreign government debt
securities.
o Lipper Analytical Services, Inc., is an independent mutual fund
performance monitor. The unmanaged Lipper General World Income Fund Index
represents an average of the performance of the 30 largest global income
mutual funds.
o An investment cannot be made in any indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
<PAGE> 3
A Message from
the Chairman
Dear Fellow Shareholder:
It was an exemplary first year for AIM Global Income Fund.
[PHOTO OF We are pleased to report the Fund logged total returns for
CHARLES T. BAUER, Class A and Class B shares of 16.07% and 15.56%,
CHAIRMAN OF respectively, for the year ended October 31, 1995. Such
THE BOARD OF performance was enough to surpass major world bond
THE FUND, performance benchmarks as well as results charted for
APPEARS HERE] similar funds. For its efforts, the fund has begun to
attract attention from such popular publications as The
Wall Street Journal.
For the record, key indexes which measure the performance of U.S. and
foreign government bonds posted the following one-year total returns for the
reporting period: the Lehman Brothers Government Bond Index, 15.38%; and the
Salomon Brothers World Government Bond Index, 15.20%. Similar global income
funds, as measured by the Lipper General World Fund Income Fund Index, posted
a one-year total return of 11.25%.
The Fund managed its strong showing in world markets that, for much of 1995,
were pressured by economic and political uncertainty in Latin America and
Japan. The keys to the Fund's performance were disciplined security selection
and a portfolio invested in 10 countries. A more complete discussion of market
conditions during the reporting period and the Fund's investment strategy is
provided on page 2 of this report.
Although it has been a good year for AIM Global Income Fund, it is but one
year. We are reminded that market cycles come and go, and such performance as
we have enjoyed the past 12 months is unlikely to continue uninterrupted.
Therefore, even as we relish the success of a good year, we are already
looking ahead to next year. AIM's disciplined fixed-income investment strategy
is an ongoing evaluation of market opportunity, and as global markets continue
to grow, our job becomes more challenging.
On a personal level, the year to come has important investment implications
for all of us. Clouds on the horizon in the form of the budget debate over
retirement benefits such as Medicare and Social Security programs accentuate the
need to build your own retirement nest egg, independent of any benefits which
may--or may not--be available to you when the time comes. For many in the baby
boomer generation, that's just 10 years away.
We sincerely appreciate our shareholders' confidence in this first full
year of the Fund's operation. It is our hope that you continue to rely on AIM
Global Income Fund to help build your financial future. As always, we are
ready to respond to your questions or comments about this report. Please call
Client Services at 800-959-4246 during normal business hours. For automated
account information 24 hours a day, call the AIM Investor Line toll-free at
800-246-5463.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 4
Management's
Discussion & Analysis
----------------
AIM Global
Income Fund
offered
investors the
flexibility of
strategic invest-
ing combined
with monthly
income.
----------------
GLOBAL BOND INVESTORS REAP ATTRACTIVE
RETURNS IN 1995
Shortly after this reporting period began, the prospect of a slowdown in global
economies and benign inflation led to a dramatic rally in fixed-income
securities. The catalyst was the slowing economy in the U.S., which led
investors to anticipate that the Federal Reserve Board might suspend its
year-long restrictive monetary policy aimed at curbing inflation. Strong
international currencies relative to the U.S. dollar also contributed to
positive returns for U.S. investors.
The strength in U.S. bonds fueled an advance in world fixed-income markets.
The cycle came full circle when, in the second quarter of 1995, economic growth
in the U.S. slowed to 1.3%, prompting mild concern over the possibility of a
recession. By midyear, investors had already begun to factor in a reduction in
key short-term interest rates. In July, the Fed finally cut short-term
interest rates by 0.25%, the first such action by the central bank since 1992.
Growth in Japan subsided after the Kobe earthquake early in the year,
increasing demand for bonds among Japanese investors despite their low nominal
yields. While European bonds under-performed U.S. and Japanese fixed-income
securities, they nevertheless responded well to slower growth in Europe and
rising demand from domestic investors. Europe's securities also attracted
investors weary of currency turbulence initiated when Mexico devalued its peso
at the start of the year.
By the end of the third quarter in 1995, the steep decline in bond yields
was largely over. However, growth in most major world economies continued at
moderate rates and inflation remained in check.
YOUR INVESTMENT PORTFOLIO
AIM Global Income Fund invested across a range of fixed income securities
during the reporting period. As of October 31, 1995, 57% of the portfolio was
invested in domestic issues, including 34% in U.S. government bonds and 23% in
corporate bonds. Of course, the Fund's portfolio composition may change and
there is no assurance the Fund will continue to hold any specific security in
any particular country.
Of the Fund's international holdings, 33% was invested in foreign government
bonds and 14% in foreign corporate issues. Average duration of the Fund's
portfolio was 5.93 years. The average quality rating of the portfolio was "A",
as measured by Standard & Poor's Corporation, a credit rating agency. S&P
ratings are historical and are based on an annual analysis of the Fund's
portfolio credit quality, composition, and management.
The Fund was strongly weighted in domestic fixed-income securities
throughout the reporting period. During the second quarter of 1995, the Fund
increased its holdings in core European markets. Germany, in particular,
enjoyed strong bond market performance for most of the year. In addition, the
Fund benefited from diversification into such higher-yielding markets as New
Zealand, Australia, and Canada.
OUTLOOK FOR THE FUTURE
An important message revealed by the impressive performance of world bond
markets so far in 1995: investors believe inflation is not a problem, even with
moderate economic growth. Further, at current levels of inflation, bonds offer
reasonable valuations compared with stocks.
- -------------------------------------------------------------------------------
TOP 10 COUNTRIES (as of 10/31/95)
<TABLE>
<CAPTION>
United United New
States Australia Germany Canada Denmark Kingdom Zealand France Sweden Italy
- ------ --------- ------- ------ ------- ------- ------- ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
62.72% 10.70% 9.34% 6.38% 5.00% 3.27% 2.04% 1.45% 0.69% 0.31%
</TABLE>
- -------------------------------------------------------------------------------
TOP 10 HOLDINGS (as of 10/31/95)
1. U.S. TREASURY NOTE, 6.50%, 8/15/05
2. U.S. TREASURY BOND, 7.625%, 02/15/25
3. U.S. TREASURY NOTE, 7.50%, 2/15/05
4. KINGDOM OF DENMARK, DEB., 8.00%, 11/15/01
5. AUSTRALIA GOVERNMENT, GTD. DEB., 9.00%, 09/15/04
6. BUNDESREPUBLIK DEUTSCHLAND, DEB., 6.75%, 07/15/04
7. WESTERN AUSTRALIA TREASURY CORP., GTD. NOTES, 8.00%,
07/15/03
8. INTL. BANK FOR RECONSTRUCTION & DEVEL.,
UNSUB. GLOBAL BONDS, 7.125%, 04/12/05
9. PROVINCE OF MANITOBA, YANKEE BOND, 7.75%, 07/17/16
10. QUEENSLAND TREASURY CORP., GTD. NOTES, 8.00%, 07/14/99
- -------------------------------------------------------------------------------
2
<PAGE> 5
No one can predict what factors may actually drive market performance around
the world in the coming year. Therefore, AIM chooses not to anticipate
macro-economic trends in any particular country. Instead, we remain committed
to a disciplined investment strategy which prompts us to rely on what we know
about securities in which we invest, based upon verified financial information.
Such a strategy helps us determine the most attractive bonds to hold, on a
issue-by-issue basis, without guesswork or futile attempts at market timing. We
believe our commitment to this time-tested strategy will provide the best value
for shareholders over the long term.
- -------------------------------------------------------------------------------
10-YEAR GOVERNMENT BOND YIELDS (as of 10/31/95)
Germany Japan U.S.
10/94 7.63% 4.68% 7.79%
11/94 7.34 4.65 7.90
12/94 7.59 4.55 7.83
1/95 7.42 4.63 7.60
2/95 7.34 4.38 7.21
3/95 7.18 3.80 7.19
4/95 7.03 3.59 7.05
5/95 6.70 3.02 6.32
6/95 6.93 2.96 6.20
7/95 6.76 3.09 6.43
8/95 6.71 3.32 6.31
9/95 6.60 2.87 6.16
10/95 6.45 2.96 6.01
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
For periods ended October 31, 1995
CLASS A SHARES
Inception (9/15/94) 10.18%
1 Year 10.56
CLASS B SHARES
Inception (9/15/94) 10.96%
1 Year 10.56
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
SALOMON BROTHERS LEHMAN BROTHERS
AIM GLOBAL INCOME AIM GLOBAL INCOME WORLD GOVERNMENT GOVERNMENT
FUND CLASS A SHARES FUND CLASS B SHARES BOND INDEX BOND INDEX
------------------- ------------------- ---------------- ---------------
<S> <C> <C> <C> <C>
9/15/94 $ 9,524 $10,000 $10,000 $10,000
9/30/94 9,530 10,005 10,072 9,859
10/94 9,613 10,079 10,233 9,851
11/94 9,510 9,967 10,093 9,833
12/94 9,561 10,017 10,121 9,893
1/95 9,671 10,128 10,334 10,077
2/95 9,929 10,395 10,598 10,294
3/95 10,159 10,621 11,228 10,359
4/95 10,314 10,789 11,436 10,495
5/95 10,559 11,031 11,757 10,918
6/95 10,574 11,054 11,826 11,002
7/95 10,711 11,182 11,855 10,961
8/95 10,798 11,268 11,447 11,090
9/95 10,998 11,473 11,702 11,197
10/95 11,158 11,247 11,790 11,367
</TABLE>
Past Performance cannot guarantee comparable future results
===============================================================================
AIM Global Income Fund's performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value. Class A share
performance reflects the maximum 4.75% sales charge, and Class B 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
performance of the Fund's Class B shares will differ from that of Class A
shares.
The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
The Lehman Brothers Government Bond Index is an unmanaged composite
generally representative of intermediate and long-term U.S. Treasury and U.S.
government agency securities. The Salomon Brothers World Government Bond Index
is an unmanaged composite of long-term foreign government debt securities.
An investment cannot be made in any indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect sales
charges.
3
<PAGE> 6
Financials
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MATURITY AMOUNT(a) VALUE
<S> <C> <C> <C>
U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES-28.88%
AUTOMOBILE/TRUCKS PARTS & TIRES-0.14%
Harvard Industries Inc., Sr. Notes, 11.125%(b)
(acquired 07/12/95; cost $20,000) 08/01/05 $ 20,000 $ 20,400
- ------------------------------------------------------------------------------------------------------
CABLE TELEVISION-1.56%
Viacom Inc., Sr. Notes, 7.75% 06/01/05 100,000 102,282
- ------------------------------------------------------------------------------------------------------
Videotron Ltd., Sr. Disc. Notes, 11.125%(c) 07/01/04 100,000 67,750
- ------------------------------------------------------------------------------------------------------
Wireless One Inc., Units, 13.00%(d) 10/15/03 50,000 51,875
- ------------------------------------------------------------------------------------------------------
221,907
- ------------------------------------------------------------------------------------------------------
CHEMICALS-0.65%
Crain Industries, Sr. Sub. Notes,13.50%(b)
(acquired 08/22/95; cost $40,000) 08/15/05 40,000 41,500
- ------------------------------------------------------------------------------------------------------
RBX Corp., Sr. Sub. Notes, 11.25%(b)
(acquired 10/06/95-10/12/95; cost $50,325) 10/15/05 50,000 50,125
- ------------------------------------------------------------------------------------------------------
91,625
- ------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES-0.28%
Hines Horticulture, Inc., Sr. Sub. Notes, 11.75%(b)
(acquired 10/16/95-10/20/95; cost $40,475) 10/15/05 40,000 40,100
- ------------------------------------------------------------------------------------------------------
CONTAINERS-0.45%
Ivex Packaging Corp., Sr. Sub. Notes, 12.50% 12/15/02 10,000 10,750
- ------------------------------------------------------------------------------------------------------
Owens-Illinois Inc., Sr. Sub. Notes, 10.50% 06/15/02 50,000 52,500
- ------------------------------------------------------------------------------------------------------
63,250
- ------------------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-2.82%
Associates Corp., Deb., 7.95% 02/15/10 100,000 109,582
- ------------------------------------------------------------------------------------------------------
GPA Delaware Inc., Deb., 8.75% 12/15/98 70,000 62,300
- ------------------------------------------------------------------------------------------------------
Loehmann's Holdings, Inc., Sr. Sub. Notes, 13.75% 02/15/99 80,000 76,800
- ------------------------------------------------------------------------------------------------------
Olympic Financial Ltd., Deb., 13.00% 05/01/00 140,000 152,600
- ------------------------------------------------------------------------------------------------------
401,282
- ------------------------------------------------------------------------------------------------------
FOOD PROCESSING-0.47%
American Rice Inc., Sr. Notes, 13.00% 07/31/02 70,000 66,150
- ------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT-3.34%
Province of Manitoba, Yankee Bonds, 7.75% 07/17/16 300,000 323,109
- ------------------------------------------------------------------------------------------------------
United Mexican States, Deb., 11.875%(b)
(acquired 07/12/95; cost $150,000) 07/21/97 150,000 151,500
- ------------------------------------------------------------------------------------------------------
474,609
- ------------------------------------------------------------------------------------------------------
GAMING-0.45%
Aztar Corp., Sr. Sub. Notes, 11.00% 10/01/02 20,000 19,600
- ------------------------------------------------------------------------------------------------------
Showboat, Inc., Sr. Sub. Notes, 13.00% 08/01/09 40,000 44,000
- ------------------------------------------------------------------------------------------------------
63,600
- ------------------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.71%
John Q. Hammons Hotels Inc., Gtd. First Mortgage
Notes, 9.75%(b) (acquired 10/06/95; cost $100,000) 10/01/05 100,000 101,125
- ------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
Financials
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MATURITY AMOUNT(a) VALUE
<S> <C> <C> <C>
INSURANCE (LIFE & HEALTH)-0.37%
American Life Holdings Co., Sr. Sub. Notes, 11.25% 09/15/04 $ 50,000 $ 52,750
- ------------------------------------------------------------------------------------------------------
LEISURE & RECREATION-1.43%
Icon Health & Fitness Inc., Sr. Sub. Notes, 13.00% 07/15/02 70,000 75,075
- ------------------------------------------------------------------------------------------------------
Stratosphere Corp., First Mortgage Notes, 14.25% 05/15/02 120,000 128,100
- ------------------------------------------------------------------------------------------------------
203,175
- ------------------------------------------------------------------------------------------------------
MACHINERY (HEAVY)-0.73%
Primeco Inc., Sr. Sub. Notes, 12.75% 03/01/05 100,000 103,000
- ------------------------------------------------------------------------------------------------------
MACHINERY (MISCELLANEOUS)-1.35%
AM General Corp., Sr. Notes, 12.875%(b)
(acquired 04/21/95; cost $49,734) 05/01/02 50,000 49,625
- ------------------------------------------------------------------------------------------------------
Interlake Corp., Sr. Notes, 12.00% 11/15/01 40,000 39,600
- ------------------------------------------------------------------------------------------------------
MVE Inc., Sr. Sec. Notes, 12.50% 02/15/02 100,000 102,750
- ------------------------------------------------------------------------------------------------------
191,975
- ------------------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-0.36%
Graphic Controls Corp., Sr. Sub. Notes, 12.00%(b)
(acquired 09/21/95; cost $50,000) 09/15/05 50,000 51,250
- ------------------------------------------------------------------------------------------------------
NATURAL GAS PIPELINE-1.78%
Talisman Energy Inc., Yankee Deb., 7.125% 06/01/07 250,000 253,190
- ------------------------------------------------------------------------------------------------------
OIL & GAS-0.81%
HS Resources Inc., Sr. Sub. Notes, 9.875% 12/01/03 20,000 19,625
- ------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co. Inc., Sub. Deb., 12.25% 02/01/05 50,000 55,125
- ------------------------------------------------------------------------------------------------------
United Meridian Corp., Sr. Sub. Notes, 10.375% 10/15/05 10,000 10,200
- ------------------------------------------------------------------------------------------------------
Wainoco Oil Corp., Sr. Sub. Notes, 12.00% 08/01/02 30,000 30,300
- ------------------------------------------------------------------------------------------------------
115,250
- ------------------------------------------------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES-0.14%
Falcon Drilling Co. Inc., Sr. Notes, 9.75% 01/15/01 20,000 20,400
- ------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.55%
Asia Pulp & Paper Co., Yankee Bonds, 11.75% 10/01/05 50,000 50,500
- ------------------------------------------------------------------------------------------------------
Pacific Lumber Co., Sr. Notes, 10.50% 03/01/03 30,000 28,200
- ------------------------------------------------------------------------------------------------------
78,700
- ------------------------------------------------------------------------------------------------------
RAILROADS-1.27%
Johnstown America Industries Inc., Sr. Sub. Notes, 11.75% 08/15/05 50,000 47,000
- ------------------------------------------------------------------------------------------------------
Transtar Holdings, L.P., Sr. Disc. Notes, 13.375%(c) 12/15/03 200,000 133,500
- ------------------------------------------------------------------------------------------------------
180,500
- ------------------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUG)-1.70%
Grand Union Co., Sr. Notes, 12.00% 09/01/04 40,000 38,600
- ------------------------------------------------------------------------------------------------------
Great Atlantic & Pacific, Yankee Bonds, 7.78%(b)
(acquired 10/18/95; cost $100,000) 11/01/00 100,000 99,813
- ------------------------------------------------------------------------------------------------------
Penn Traffic Co., Sr. Notes, 10.65% 11/01/04 70,000 64,750
- ------------------------------------------------------------------------------------------------------
Ralph's Grocery Co., Sr. Notes, 11.00% 06/15/05 40,000 38,800
- ------------------------------------------------------------------------------------------------------
241,963
- ------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
Financials
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MATURITY AMOUNT(a) VALUE
<S> <C> <C> <C>
RETAIL (STORES)-2.15%
Fleming Companies Inc., Sr. Notes, 10.625% 12/15/01 $ 25,000 $ 26,188
- ------------------------------------------------------------------------------------------------------
Pamida Inc., Sr. Sub. Notes, 11.75% 03/15/03 50,000 40,500
- ------------------------------------------------------------------------------------------------------
Samsonite Corp., Sr. Sub. Notes, 11.125%(b)
(acquired 07/07/95-10/16/95; cost $39,403) 07/15/05 40,000 38,400
- ------------------------------------------------------------------------------------------------------
Specialty Retailers, Inc., Sr. Sub. Notes, 11.00% 08/15/03 75,000 70,125
- ------------------------------------------------------------------------------------------------------
United Stationer Supply, Sr. Sub. Notes, 12.75% 05/01/05 120,000 130,500
- ------------------------------------------------------------------------------------------------------
305,713
- ------------------------------------------------------------------------------------------------------
SCHOOLS-0.37%
Herff Jones Inc., Sr. Sub Notes, 11.00%(b)
(acquired 08/14/95-09/26/95; cost $50,550) 08/15/05 50,000 51,875
- ------------------------------------------------------------------------------------------------------
STEEL-0.79%
GS Technologies Inc., Sr. Notes, 12.00% 09/01/04 75,000 75,188
- ------------------------------------------------------------------------------------------------------
Gulf States Steel Corp., First Mortgage Notes, 13.50% 04/15/03 40,000 36,800
- ------------------------------------------------------------------------------------------------------
111,988
- ------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-3.88%
A+ Network Inc., Sr. Sub. Notes, 11.875% 11/01/05 50,000 50,063
- ------------------------------------------------------------------------------------------------------
CAI Wireless Systems Inc., Sr. Notes, 12.25% 09/15/02 50,000 53,500
- ------------------------------------------------------------------------------------------------------
Dictaphone Corp., Sr. Sub. Notes, 11.75% 08/01/05 20,000 19,500
- ------------------------------------------------------------------------------------------------------
Intermedia Communications, Sr. Notes, 13.50%(b)(e)
(acquired 5/25/95; cost $150,000) 06/01/05 150,000 164,250
- ------------------------------------------------------------------------------------------------------
Peoples Telephone Co. Inc., Sr. Notes, 12.25% 07/15/02 50,000 47,750
- ------------------------------------------------------------------------------------------------------
Pronet Inc., Sr. Sub. Notes, 11.875%
(acquired 06/12/95; cost $29,785) 06/15/05 30,000 32,100
- ------------------------------------------------------------------------------------------------------
TCI Communications Inc., Sr. Notes, 8.00% 08/01/05 150,000 155,076
- ------------------------------------------------------------------------------------------------------
Telewest PLC, Yankee Bonds, 11.00%(c) 10/01/07 50,000 29,188
- ------------------------------------------------------------------------------------------------------
551,427
- ------------------------------------------------------------------------------------------------------
TEXTILES-0.33%
Consoltex Group Inc., Sr. Sub. Notes, 11.00% 10/01/03 50,000 47,625
- ------------------------------------------------------------------------------------------------------
Total U.S. Dollar Denominated
Non-Convertible Bonds & Notes 4,104,829
- ------------------------------------------------------------------------------------------------------
NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES(f)-11.71%
CANADA-3.57%
Bell Canada (Telecommunications)
Deb., 13.875% 05/01/00 CAD 55,000 43,268
- ------------------------------------------------------------------------------------------------------
Deb., 10.875% 10/11/04 150,000 129,965
- ------------------------------------------------------------------------------------------------------
Canadian Oil Debco Inc. (Oil & Gas)
Deb., 11.00% 10/31/00 45,000 37,760
- ------------------------------------------------------------------------------------------------------
Ford Motor Credit Co. (Finance-Consumer Credit)
Mtn., 10.375% 09/17/96 125,000 96,190
- ------------------------------------------------------------------------------------------------------
IPL Energy Inc. (Oil Equipment & Supplies)
Series A Deb., 9.67% 02/23/00 250,000 200,459
- ------------------------------------------------------------------------------------------------------
507,642
- ------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
Financials
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MATURITY AMOUNT(a) VALUE
<S> <C> <C> <C>
FRANCE-1.09%
Credit Local de France (Finance-Consumer Credit)
Sr. Unsub. Deb., 6.00% 11/15/01 FRF 250,000 $ 48,931
- ------------------------------------------------------------------------------------------------------
IBM International Finance N.V. (Computer Mainframes)
Sr. Unsub. Deb., 10.00% 08/29/97 500,000 106,240
- ------------------------------------------------------------------------------------------------------
155,171
- ------------------------------------------------------------------------------------------------------
GERMANY-3.47%
Ford Credit Europe PLC (Finance-Consumer Credit)
Deb., 6.00% 03/30/99 DEM 200,000 144,182
- ------------------------------------------------------------------------------------------------------
International Bank for Reconstruction & Development
(Supranational Organization)
Unsub. Global Bonds, 7.125% 04/12/05 475,000 348,337
- ------------------------------------------------------------------------------------------------------
492,519
- ------------------------------------------------------------------------------------------------------
ITALY-0.32%
KFW International Finance Inc. (Finance-Consumer Credit)
Gtd. Notes, 11.625% 11/27/98 ITL 70,000,000 44,694
- ------------------------------------------------------------------------------------------------------
SWEDEN-0.69%
Credit Foncier de France (Finance-Consumer Credit)
Sr. Unsub. Deb., 6.50% 02/22/99 SEK 750,000 98,513
- ------------------------------------------------------------------------------------------------------
UNITED KINGDOM-2.57%
European Investment Bank (Supranational Organization)
Sr. Unsub. Deb., 6.00% 08/10/99 BPS 125,000 187,658
- ------------------------------------------------------------------------------------------------------
KFW International Finance Inc. (Finance-Consumer Credit)
Gtd. Notes, 10.625% 09/03/01 100,000 177,391
- ------------------------------------------------------------------------------------------------------
365,049
- ------------------------------------------------------------------------------------------------------
Total Non-U.S. Dollar Denominated
Non-Convertible Bonds & Notes 1,663,588
- ------------------------------------------------------------------------------------------------------
NON-U.S. DOLLAR DENOMINATED CONVERTIBLE BONDS & NOTES(f)-2.54%
CANADA-1.57%
Repap Enterprises, Inc. (Paper & Forest Products)
Conv. Deb., 9.00% 06/30/98 CAD 300,000 222,794
- ------------------------------------------------------------------------------------------------------
FRANCE-0.36%
Societe Generale (Banking) Conv. Deb., 3.50% 01/01/00 FRF 231,000 50,873
- ------------------------------------------------------------------------------------------------------
JAPAN-0.28%
Glaxo Holdings PLC (Medical-Drugs)
Conv. Deb., 4.30% 09/28/98 JPY 4,000,000 40,471
- ------------------------------------------------------------------------------------------------------
UNITED KINGDOM-0.33%
ELF Enterprise Finance PLC (Finance-Consumer Credit)
Gtd. Conv. Bonds, 8.75% 06/27/06 BPS 30,000 47,075
- ------------------------------------------------------------------------------------------------------
Total Non-U.S. Dollar Denominated
Convertible Bonds & Notes 361,213
- ------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
Financials
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MATURITY AMOUNT(a) VALUE
<S> <C> <C> <C>
NON-U.S. DOLLAR DENOMINATED GOVERNMENT
BONDS & NOTES(f)-25.22%
AUSTRALIA-10.70%
Australian Government, Gtd. Deb., 9.00% 09/15/04 AUD 900,000 $ 703,074
- ------------------------------------------------------------------------------------------------------
Queensland Treasury Corp.,
Gtd. Notes, 8.875% 11/08/96 180,000 138,777
- ------------------------------------------------------------------------------------------------------
Gtd. Notes, 8.00% 07/14/99 420,000 317,556
- ------------------------------------------------------------------------------------------------------
Western Australia Treasury Corp.,
Gtd. Notes, 8.00% 07/15/03 500,000 361,552
- ------------------------------------------------------------------------------------------------------
1,520,959
- ------------------------------------------------------------------------------------------------------
CANADA-1.24%
Province of British Columbia, Deb., 9.00%(c) 06/21/04 CAD 150,000 57,462
- ------------------------------------------------------------------------------------------------------
New Brunswick (Province of), Deb., 8.94% 01/15/05 150,000 118,618
- ------------------------------------------------------------------------------------------------------
176,080
- ------------------------------------------------------------------------------------------------------
DENMARK-5.00%
Kingdom of Denmark, Deb., 8.00% 11/15/01 DKK 3,750,000 710,880
- ------------------------------------------------------------------------------------------------------
GERMANY-5.87%
Bundesrepublik Deutschland
Deb., 6.75% 07/15/04 DEM 750,000 542,546
- ------------------------------------------------------------------------------------------------------
Deb., 6.875% 05/12/05 400,000 291,645
- ------------------------------------------------------------------------------------------------------
834,191
- ------------------------------------------------------------------------------------------------------
NEW ZEALAND-2.04%
New Zealand Government
Gtd. Deb., 9.00% 11/15/96 NZD 305,000 203,910
- ------------------------------------------------------------------------------------------------------
Gtd. Deb., 10.00% 07/15/97 125,000 85,959
- ------------------------------------------------------------------------------------------------------
289,869
- ------------------------------------------------------------------------------------------------------
UNITED KINGDOM-0.37%
Ontario Province, Sr. Unsub. Notes, 6.875% 09/15/00 BPS 35,000 52,292
- ------------------------------------------------------------------------------------------------------
Total Non-U.S. Dollar Denominated
Government Bonds & Notes 3,584,271
- ------------------------------------------------------------------------------------------------------
SHARES
WARRANTS-0.02%
LEISURE & RECREATION-0.02%
IHF Holdings-Wt., expiring 11/14/99(g) 70 2,100
- ------------------------------------------------------------------------------------------------------
STEEL-0.00%
Gulf States Steel Corp.-Wt., expiring 04/15/03(g) 40 200
- ------------------------------------------------------------------------------------------------------
2,300
- ------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
Financials
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MATURITY AMOUNT(a) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES-33.82%
Notes, 7.50% 02/15/05 $ 750,000 $ 827,280
- ------------------------------------------------------------------------------------------------------
Notes, 6.50% 08/15/05 3,000,000 3,108,060
- ------------------------------------------------------------------------------------------------------
Bonds, 7.625% 02/15/25 750,000 870,885
- ------------------------------------------------------------------------------------------------------
Total U.S. Treasury Securities 4,806,225
- ------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT(h)-7.06%
Daiwa Securities America Inc., 5.90%(i) 11/01/95 1,003,663 1,003,663
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-109.25% 15,526,089
- ------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-(9.25)% (1,314,883)
- ------------------------------------------------------------------------------------------------------
NET ASSETS-100.00% $14,211,206
======================================================================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Principal amount is in U.S. Dollars,except as indicated by note (f).
(b) Restricted security. May be resold to qualified institutional buyers
in accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at October 31, 1995 was $892,063
which represented 6.28% of the Fund's net assets.
(c) Discounted bond at purchase. Interest rate represents coupon rate at
which the bond will accrue at a specified future date.
(d) Issued as a unit. This unit also includes 3 warrants to purchase one share
of common stock at $11.55 per share per warrant.
(e) Issued as a unit. This unit also includes one warrant to purchase 2.19
shares of common stock at $10.86 per share per warrant.
(f) Foreign denominated security. Par value and coupon are denominated in
currency of country indicated.
(g) Non-income producing security acquired as part of a unit with or in
exchange for other securities.
(h) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Fund upon entering into the repurchase agreement. The collateral is marked
to market daily to ensure its market value as being 102% of the sales price
of the repurchase agreement. The investments in some repurchase agreements
are through participation in joint accounts with other mutual funds managed
by the investment advisor.
(i) Joint repurchase agreement entered into 10/31/95 with a maturing value of
$401,494,641. Collateralized by $353,853,000 U.S. Treasury Notes, 8.375%
due 08/15/08.
ABBREVIATIONS:
AUD Australian Dollar JPY Japanese Yen
BPS British Pound Sterling Ltd. Limited
CAD Canadian Dollar Mtn. Medium Term Notes
Conv. Convertible NZD New Zealand Dollar
Deb. Debentures Sec. Secured
DEM German Deutschemark SEK Swedish Krona
Disc. Discounted Sr. Senior
DKK Danish Krone Sub. Subordinated
FRF French Franc Unsub. Unsubordinated
Gtd. Guaranteed Wt. Warrant
ITL Italian Lire
See Notes to Financial Statements.
9
<PAGE> 12
Financials
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
ASSETS:
<TABLE>
<S> <C>
Investments, at market value (cost $15,090,239) $ 15,526,089
- --------------------------------------------------------------------------------------
Foreign currencies, at market value (cost $47) 48
- --------------------------------------------------------------------------------------
Receivables for:
Capital stock sold 140,561
- --------------------------------------------------------------------------------------
Foreign currency contracts, at value 740,258
- --------------------------------------------------------------------------------------
Dividends and interest 301,156
- --------------------------------------------------------------------------------------
Reimbursement from advisor 4,000
- --------------------------------------------------------------------------------------
Other assets 9,179
- --------------------------------------------------------------------------------------
Total assets 16,721,291
- --------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 1,690,132
- --------------------------------------------------------------------------------------
Capital stock reacquired 30,566
- --------------------------------------------------------------------------------------
Foreign currency purchased 739,832
- --------------------------------------------------------------------------------------
Dividends payable 23,276
- --------------------------------------------------------------------------------------
Accrued administrative services fees 5,895
- --------------------------------------------------------------------------------------
Accrued distribution fees 7,371
- --------------------------------------------------------------------------------------
Accrued operating expenses 13,013
- --------------------------------------------------------------------------------------
Total liabilities 2,510,085
- --------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 14,211,206
======================================================================================
NET ASSETS:
Class A $ 10,004,496
- --------------------------------------------------------------------------------------
Class B $ 4,206,710
======================================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- --------------------------------------------------------------------------------------
Outstanding 931,458
======================================================================================
Class B
Authorized 200,000,000
- --------------------------------------------------------------------------------------
Outstanding 392,214
======================================================================================
Class A:
Net asset value and redemption price per share $10.74
======================================================================================
Offering price per share:
(Net asset value of $10.74 divided by 95.25%) $11.28
======================================================================================
Class B:
Net asset value and offering price per share $10.73
======================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
Financials
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1995
INVESTMENT INCOME:
<TABLE>
<S> <C>
Interest $ 678,528
- -------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 55,087
- -------------------------------------------------------------------------------------------
Administrative services fees 29,858
- -------------------------------------------------------------------------------------------
Directors' fees 5,464
- -------------------------------------------------------------------------------------------
Distribution fees - Class A 29,618
- -------------------------------------------------------------------------------------------
Distribution fees - Class B 19,459
- -------------------------------------------------------------------------------------------
Custodian fees 24,935
- -------------------------------------------------------------------------------------------
Transfer agent fees - Class A 9,251
- -------------------------------------------------------------------------------------------
Transfer agent fees - Class B 5,843
- -------------------------------------------------------------------------------------------
Professional fees 27,901
- -------------------------------------------------------------------------------------------
Filing fees 36,255
- -------------------------------------------------------------------------------------------
Other 5,350
- -------------------------------------------------------------------------------------------
Total expenses 249,021
- -------------------------------------------------------------------------------------------
Less expenses assumed by advisor (141,187)
- -------------------------------------------------------------------------------------------
Net expenses 107,834
- -------------------------------------------------------------------------------------------
Net investment income 570,694
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain on sales of:
Investment securities 184,463
- -------------------------------------------------------------------------------------------
Foreign currencies 79,519
- -------------------------------------------------------------------------------------------
263,982
- -------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities 431,117
- -------------------------------------------------------------------------------------------
Foreign currencies (576)
- -------------------------------------------------------------------------------------------
430,541
- -------------------------------------------------------------------------------------------
Net gain on investment securities and foreign currencies 694,523
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,265,217
===========================================================================================
</TABLE>
See Notes to Financial Statements.
11
<PAGE> 14
Financials
STATEMENT OF CHANGES IN NET ASSETS
For the Year Ended October 31, 1995 and the period September 15, 1994 (Date
Operations Commenced) through October 31, 1994
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income $ 570,694 $ 17,716
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities and foreign currencies 263,982 (680)
- -----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and foreign currencies 430,541 4,707
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,265,217 21,743
- -----------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income
Class A (461,318) (15,447)
- -----------------------------------------------------------------------------------------------------------------------------
Class B (139,421) (398)
- -----------------------------------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 6,847,734 655,059
- -----------------------------------------------------------------------------------------------------------------------------
Class B 3,676,004 362,023
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 11,188,216 1,022,980
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 3,022,990 2,000,010
- -----------------------------------------------------------------------------------------------------------------------------
End of period $ 14,211,206 $ 3,022,990
=============================================================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 13,511,536 $ 3,017,092
- -----------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 85,635 1,871
- -----------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of investment securities
and foreign currencies 178,787 (680)
- -----------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and foreign currencies 435,248 4,707
- -----------------------------------------------------------------------------------------------------------------------------
$ 14,211,206 $ 3,022,990
==============================================================================================================================
</TABLE>
See Notes to Financial Statements.
12
<PAGE> 15
Financials
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1995
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Income Fund (the ''Fund'') is an investment portfolio of AIM
International Funds, Inc. (the ''Company''). The Company is a Maryland
corporation registered under the Investment Company Act of 1940, as amended
(the ''1940 Act''), as an open-end management investment company consisting of
four separate series portfolios: AIM Global Income Fund, AIM Global Aggressive
Growth Fund, AIM Global Growth Fund, and AIM International Equity Fund. The
Fund currently offers two different classes of shares: Class A shares and Class
B shares. Class A shares are sold with a front-end sales charge. Class B shares
are sold with a contingent deferred sales charge. Matters affecting each
portfolio or class are 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 following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. Security Valuations-Non-convertible bonds and notes 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 price, and may reflect appropriate factors such as
institution-size trading in similar groups of securities, developments
related to special securities, yield, quality, coupon rate, maturity, type
of issue, individual trading characteristics and other market data.
Investment securities for which prices are not provided by the pricing
service and which are listed or traded on an exchange are valued at the
last sales price on the exchange where the security is principally traded
or, lacking any sales on a particular day, at the mean between the closing
bid and asked prices on that day unless the Board of Directors, or persons
designated by the Board of Directors, determines that the over-the-counter
quotations more closely reflect the current market value of the security.
Securities traded in the over-the-counter market, except (i) securities
priced by the pricing service, (ii) securities for which representative
exchange prices are available, and (iii) securities reported in the NASDAQ
National Market System, are valued at the mean between representative last
bid and asked prices obtained from an electronic quotation reporting
system, if such prices are available, or from established market makers.
Each security reported in the NASDAQ National Market System is valued at
the last sales price on the valuation date. Securities for which market
quotations are not readily available are valued at fair value as
determined in good faith by or under the supervision of the Fund's
officers in accordance with methods which are specifically authorized by
the Board of Directors. Short-term obligations having 60 days or less to
maturity are valued at amortized cost which approximates market value.
Generally, trading in foreign securities, as well as corporate bonds and
U.S. Government securities, is substantially completed each day at various
times prior to the close of the New York Stock Exchange. The values of
such securities used in computing the net asset value of a Fund's shares
are determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the New York Stock Exchange.
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 New York Stock Exchange which will not be reflected
in the computation of a Fund's net asset value. If events materially
affecting the value of such securities and exchange rates occur during
such period, then these securities and exchange rates will be valued at
their fair value as determined in good faith by or under the supervision
of the Board of Directors.
B. 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.
C. Foreign Currency Contracts-A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency
contract for the purchase or sale of a security denominated in a foreign
currency in order to "lock in'' the U.S. dollar price of that security.
The Fund could be exposed to risk if counterparties to the contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably.
Outstanding contracts at October 31, 1995 were as follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT TO APPRECIATION
SETTLEMENT DATE DELIVER RECEIVE VALUE (DEPRECIATION)
- --------------- ------------- ----------- --------- ---------------
<S> <C> <C> <C> <C>
11/03/95............................. DEM 300,000 $213,159 $ 218,818 $ 5,659
11/15/95............................. DEM 400,000 284,387 279,602 (4,785)
01/25/96............................. DEM 340,000 242,286 241,838 (448)
----------- --------- ---------------
$739,832 $ 740,258 $ 426
=========== ========= ===============
</TABLE>
13
<PAGE> 16
Financials
D. Securities Transactions, Investment Income and Distributions-Securities
transactions are accounted for on a trade date basis. Realized gains or
losses are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on an accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. On October 31, 1995,
undistributed net investment income (loss) was increased by $113,809,
undistributed net realized gains decreased by $84,515, and paid-in capital
decreased by $29,294 in order to comply with the requirements of the
American Institute of Certified Public Accountants Statement of Position
93-2. Net assets of the Fund were unaffected by the reclassifications
discussed above.
E. 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.
F. Expenses-Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to both
classes, e.g. advisory fees, are allocated between them.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.70% of
the first $1 billion of the Fund's average daily net assets, plus 0.65% of the
Fund's average daily net assets in excess of $1 billion. During the year ended
October 31, 1995, AIM waived fees of $55,087 and assumed expenses of $64,100
and $22,000 for the Class A shares and Class B shares, respectively. Under the
terms of the master investment advisory agreement, AIM will, if necessary,
reduce its fee or make payments to the Fund to the extent necessary to satisfy
any expense limitations imposed by the securities laws or regulations
thereunder of any state in which the Fund's shares are qualified for sale.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to reimburse AIM for administrative costs incurred in providing
accounting services to the Fund. During the year ended October 31, 1995, AIM
was reimbursed $29,858 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed
to reimburse A I M Fund Services, Inc. ("AFS") for certain costs incurred in
providing transfer agency services to the Fund. During the year ended October
31, 1995, the Fund reimbursed AFS $9,321 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A shares and the Class B shares of the Fund. The Company has adopted
Plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's
Class A shares (the "Class A Plan") and with respect to the Fund's Class B
shares (the "Class B Plan") (collectively the "Plans"). The Fund, pursuant to
the Class A Plan, will pay AIM Distributors an annual rate of 0.50% of the
average daily net assets attributable to the Class A shares. The Class A Plan
is designed to compensate AIM Distributors for certain promotional and other
sales related costs and to implement a program which provides periodic payments
to selected dealers and financial institutions, in amounts of up to 0.25% of
the average net assets of the Class A shares attributable to the customers of
such dealers or financial institutions, who furnish continuing personal
shareholder services to their customers who purchase and own Class A shares of
the Fund. The Fund, pursuant to the Class B Plan, will pay AIM Distributors at
an annual rate of 1.00% of the average daily net assets attributable to the
Class B shares. Of this amount, the Fund may pay a service fee of 0.25% of the
average daily net assets of the Class B shares to selected dealers and
financial institutions who furnish continuing personal shareholder services to
their customers who purchase and own Class B shares of the Fund. Any amounts
not paid as a service fee under such 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. AIM
Distributors may, from time to time, assign, transfer or pledge to one or more
designees, its rights to all or a designated portion of (a) compensation
received by AIM Distributors from the Fund pursuant to the Class B Plan (but
not AIM Distributors' duties and obligations pursuant to the Class B Plan) and
(b) any contingent deferred sales charges received by AIM Distributors related
to the Class B shares. During the year ended October 31, 1995, the Class A
shares and the Class B shares paid AIM Distributors $29,618 and $19,459,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $27,115 from the sales of the
Class A shares of the Fund during the year ended October 31, 1995. 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, 1995, AIM Distributors received commissions of $3,877 in contingent
deferred sales charges imposed on redemptions of Class B shares. Certain
officers and directors of the Company are officers and directors of AIM, AFS,
and AIM Distributors.
During the year ended October 31, 1995, the Fund incurred legal fees of
$2,160 for services rendered by the law firm of Kramer, Levin, Naftalis,
Nessen, Kamin & Frankel as counsel to the Company's directors. A member of that
firm is a director of the Company.
NOTE 3-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company may invest directors' fees, if
so elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4-BANK BORROWINGS
The Fund has a $100,000 committed line of credit with Chemical Bank of New
York. Interest on borrowings under the line of credit is payable on maturity or
prepayment date. During the period July 20, 1995 (effective date of Credit
Agreement) through October 31, 1995, the Fund did not borrow under the
14
<PAGE> 17
Financials
line of credit agreement. The Fund is charged an administrative fee, payable
quarterly, at the annual rate of $100.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold by the Fund during the year ended October 31,
1995 was $20,756,948 and $9,361,656, respectively.
The amount of unrealized appreciation (depreciation) of investment
securities as of October 31, 1995 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $475,239
- -------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (39,389)
- -------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $435,850
===========================================================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
NOTE 6-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the year ended October
31, 1995 and the period September 15, 1994 (date operations commenced) through
October 31, 1994 were as follows:
<TABLE>
<CAPTION>
1995 1994
----------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
-------- --------- ------ --------
<S> <C> <C> <C> <C>
Sold:
Class A 760,598 $7,840,532 65,461 $655,027
- ----------------------------------------------------------------------------------------------
Class B 388,091 4,010,514 36,863 368,895
- ----------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 23,999 250,917 3 32
- ----------------------------------------------------------------------------------------------
Class B 11,879 124,099 2 25
- ----------------------------------------------------------------------------------------------
Reacquired:
Class A (118,603) (1,243,715) -- --
- ----------------------------------------------------------------------------------------------
Class B (43,933) (458,609) (689) (6,897)
- ----------------------------------------------------------------------------------------------
1,022,031 $10,523,738 101,640 $1,017,082
==============================================================================================
</TABLE>
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share and
Class B share outstanding during the year ended October 31, 1995 and the period
September 15, 1994 (dates operations commenced) through October 31, 1994.
<TABLE>
<CAPTION>
CLASS A CLASS B
---------------------------- ----------------------------
1995 1994 1995 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.02 $10.00 $10.01 $10.00
- --------------------------------------- ------------- ------------- ------------- -------------
Income from investment operations:
Net investment income 0.79 0.08 0.74 0.07
- --------------------------------------- ------------- ------------- ------------- -------------
Net gains on securities (both realized
and unrealized) 0.75 0.01 0.75 0.01
- --------------------------------------- ------------- ------------- ------------- -------------
Total from investment operations 1.54 0.09 1.49 0.08
- --------------------------------------- ------------- ------------- ------------- -------------
Less distributions:
Dividends from investment income (0.82) (0.07) (0.77) (0.07)
- --------------------------------------- ------------- ------------- ------------- -------------
Total distributions (0.82) (0.07) (0.77) (0.07)
- --------------------------------------- ------------- ------------- ------------- -------------
Net asset value, end of period $10.74 $10.02 $10.73 $10.01
======================================= ============= ============= ============= =============
Total return (a) 16.07% 0.93% 15.56% 0.79%
======================================= ============= ============= ============= =============
Ratios/supplemental data:
Net assets, end of period (000s omitted) $10,004 $2,661 $4,207 $362
======================================= ============= ============= ============= =============
Ratio of expenses to average net assets 1.25%(b) 1.25%(d) 1.74%(c) 1.73%(d)
======================================= ============= ============= ============= =============
Ratio of net investment income to
average net assets 7.38%(b) 6.01%(d) 6.88%(c) 3.59%(d)
======================================= ============= ============= ============= =============
Portfolio turnover rate 128% 6% 128% 6%
======================================= ============= ============= ============= =============
</TABLE>
(a) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(b) Ratios are based on average net assets of $5,923,634. Ratios of expenses
and net investment income to average net assets before fee waivers and
expense reimbursements are 3.03% and 5.59%, respectively.
(c) Ratios are based on average net assets of $1,945,925. Ratios of expenses
and net investment income to average net assets before fee waivers and
expense reimbursements are 3.57% and 5.05%, respectively.
(d) Annualized.
15
<PAGE> 18
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders of
AIM International Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of the AIM
Global Income Fund (a portfolio of AIM International Funds, Inc.), including
the schedule of investments, as of October 31, 1995, and the related statement
of operations for the year then ended, and the statement of changes in net
assets and financial highlights for the year then ended and for the period
September 15, 1994 (date operations commenced) through October 31, 1994. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosure in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AIM
Global Income Fund as of October 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for the year then ended and for the period September 15, 1994 (date
operations commenced) through October 31, 1994, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Houston, Texas
December 8, 1995
16
<PAGE> 19
Directors & Officers
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman and Chairman Suite 1919
Chief Executive Officer Houston, TX 77046
A I M Management Group Inc. Robert H. Graham
President INVESTMENT ADVISOR
Bruce L. Crockett
Director, President, and John J. Arthur A I M Advisors, Inc.
Chief Executive Officer Senior Vice President 11 Greenway Plaza
COMSAT Corporation and Treasurer Suite 1919
Houston, TX 77046
Owen Daly II Gary T. Crum
Director Senior Vice President TRANSFER AGENT
Cortland Trust Inc.
Carol F. Relihan A I M Fund Services, Inc.
Carl Frischling Vice President and 11 Greenway Plaza
Partner Secretary Suite 1919
Kramer, Levin, Naftalis, Houston, TX 77046
Nessen, Kamin & Frankel Dana R. Sutton
Vice President CUSTODIAN
Robert H. Graham and Assistant Treasurer
President and Chief State Street Bank & Trust Company
Operating Officer Robert G. Alley 225 Franklin Street
A I M Management Group Inc. Vice President Boston, MA 02110
John F. Kroeger Melville B. Cox COUNSEL TO THE FUND
Formerly, Consultant Vice President
Wendell & Stockel Ballard Spahr
Associates, Inc. Jonathan C. Schoolar Andrews & Ingersoll
Vice President 1735 Market Street
Lewis F. Pennock Philadelphia, PA 19103
Attorney P. Michelle Grace
Assistant Secretary COUNSEL TO THE DIRECTORS
Ian W. Robinson
Consultant; Former Executive David L. Kite Kramer, Levin, Naftalis,
Vice President and Chief Assistant Secretary Nessen, Kamin & Frankel
Financial Officer 919 Third Avenue
Bell Atlantic Management Nancy L. Martin New York, NY 10022
Services, Inc. Assistant Secretary
DISTRIBUTOR
Louis S. Sklar Ofelia M. Mayo
Executive Vice President Assistant Secretary A I M Distributors, Inc.
Hines Interests 11 Greenway Plaza
Limited Partnership Kathleen J. Pflueger Suite 1919
Assistant Secretary Houston, TX 77046
Samuel D. Sirko AUDITORS
Assistant Secretary
KPMG Peat Marwick LLP
Stephen I. Winer 700 Louisiana
Assistant Secretary NationsBank Bldg.
Houston, TX 77002
Mary J. Benson
Assistant Treasurer
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION
AIM Global Income Fund Class A and Class B shares paid ordinary dividends in
the amounts of $0.82 and $0.77 per share, respectively, to shareholders during
the Fund's tax year ended October 31, 1995.
<PAGE> 20
<TABLE>
<S> <C>
[PHOTO OF AIM MANAGEMENT THE AIM FAMILY OF FUNDS(R)
GROUP OFFICE BUILDING]
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH
AIM Global Utilities Fund**
HIGH CURRENT INCOME
AIM High Yield Fund
CURRENT INCOME
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of CT
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE
OF SAFETY
AIM Intermediate Government Fund***
HIGH DEGREE OF SAFETY AND
CURRENT INCOME
AIM Limited Maturity Treasury Shares
STABILITY, LIQUIDITY, AND
CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND
CURRENT TAX-FREE INCOME
AIM Tax-Exempt Cash Fund
* AIM Aggressive Growth Fund was closed to new
investors on July 18, 1995. ** On May 1,
1995, AIM Utilities Fund broadened its
investment strategy to permit up to 80%
of its total assets to be invested in
AIM Management Group has provided leadership foreign securities, and was renamed AIM
in the mutual fund industry since 1976 and Global Utilities Fund. *** On September 25,
currently manages approximately $40 billion 1995, AIM Government Securities Fund became
in assets for more than 2 million shareholders, AIM Intermediate Government Fund. For more
including individual investors, corporate clients, complete information about any AIM Fund(s),
and financial institutions. The AIM Family of including sales charges and expenses, ask
Funds(R) is distributed nationwide, and AIM your financial consultant or securities dealer
today ranks among the nation's top 20 mutual for a free prospectus(es). Please read the
fund companies in assets under management, prospectus(es) carefully before you invest or
according to Lipper Analytical Services, Inc. send money.
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BULK RATE
[AIM LOGO APPEARS HERE] U.S. POSTAGE
PAID
A I M Distributors, Inc. HOUSTON, TX
11 Greenway Plaza, Suite 1919 Permit No.1919
Houston, TX 77046 --------------
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