<PAGE> 1
[AIM LOGO APPEARS HERE]
[GLOBAL GROWTH GRAPHIC COLLAGE APPEARS HERE]
AIM GLOBAL GROWTH FUND
ANNUAL REPORT
OCTOBER 31, 1995
<PAGE> 2
AIM GLOBAL GROWTH FUND
For shareholders who seek long-term growth of capital. The Fund invests in a
portfolio of global equity securities of selected companies with strong earnings
momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Growth 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 for Class A shares includes reinvested distributions
of $0.004 per share. There were no distributions paid to Class B shares
during the reporting period.
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 Lipper Analytical Services, Inc. is an independent mutual fund performance
monitor. The unmanaged Lipper Global Fund Index represents an average of
the performance of the 30 largest global mutual funds.
o The Morgan Stanley Capital International World Index is a group of
unmanaged global securities tracked by Morgan Stanley Capital
International. The Fund has elected to use this index, which tracks both
domestic and foreign securities, as a more appropriate performance
comparison with AIM Global Growth Fund. In previous reports, the Fund used
both Morgan Stanley's unmanaged Europe, Asia, and Far East Index, which
tracks only foreign securities, and Standard & Poor's Composite Index of
500 Stocks, an unmanaged average which tracks only domestic securities.
o The Dow Jones Industrial Average (DJIA) is an unmanaged composite of the
performance of 30 large-company U.S. stocks. The unmanaged NASDAQ (National
Association of Securities Dealers Automated Quotation System) Composite
Index is generally representative of the performance of the stocks of
small-capitalization companies in the U.S.
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 Growth Fund.
We are pleased to report the Fund logged total returns
[PHOTO OF for Class A and Class B shares of 20.48% and 19.96%,
CHARLES T. BAUER, respectively, for the year ended October 31, 1995. Such
CHAIRMAN OF performance was enough to surpass a major world stock
THE BOARD OF performance benchmark index as well as results charted for
THE FUND similar funds. For its efforts, the Fund was widely
APPEARS HERE] recognized in such popular publications as The Wall
Street Journal, Kiplingers' Personal Finance, Money, and
USA Today.
For the record, the Morgan Stanley Capital International World Index, a
composite of foreign and U.S. stocks, posted a one-year total return of 9.48%
for the reporting period. Similar global stock funds, as measured by the Lipper
Global Fund Index, posted a one-year total return of 4.17%.
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 stock selection and a
diversified portfolio of 264 stocks. 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.
Net assets of the Fund increased during the year from $4.4 million to $40.9
million as of October 31, 1995. While the Fund's favorable market performance
was largely responsible, significant credit for this increase goes to our
shareholders who paid AIM the highest compliment by supporting one of our newest
funds. We sincerely appreciate our shareholders' confidence in this first full
year of the Fund's operation.
Although it has been a good year for AIM Global Growth 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 earnings-driven 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.
It is our hope that you continue to rely on AIM Global Growth 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
----------
Technology
companies,
which
comprised a
significant
number of the
Fund's hold-
ings, offered
outstanding
value.
----------
TECHNOLOGY STOCKS PROPEL MARKETS TO
NEW LEVELS IN 1995
During the reporting period, healthy corporate profits exceeded analysts'
expectations and propelled U.S. stocks through record- after record-breaking
level. The strength was broad-based, resuscitating large-capitalization stocks
which had been out of favor for three years. The popular DJIA sailed past 4000
on February 23, 1995, and then topped 5000 on November 21. By June 1995, the
powerful technology stock advance helped small-company stocks, as represented by
the broader NASDAQ, to overtake its large-cap cousins and finish the reporting
period well ahead of the pack.
The stars of the technology group were inarguably the semiconductor stocks.
However, other top-performing technology sectors were aerospace & defense,
software, and industrial technology companies. Also strong were such
beneficiaries of stable interest rates as banks and thrifts, and consumer
cyclical stocks in airlines, leisure and recreation companies, and restaurants.
Europe delivered the strongest foreign market performance during the
reporting period. Low interest rates, solid earnings growth, and ongoing
restructuring campaigns appealed to investors wary of ongoing volatility in
Japan and Latin American markets. More conservative investors were attracted to
strong, defensive companies and stable currencies in Switzerland and Germany.
Growth investors bid up prices in Finland, Ireland, and the Netherlands.
The top performing industry sectors in Europe for 1995 were health and
pharmaceuticals, followed by leisure, engineering, and media. Economic growth,
though still stronger than in the U.S., slowed enough to diminish the appeal of
cyclical sectors such as metals, autos, paper & packaging, and construction
companies.
Even with Europe's best efforts, foreign equity performance during the
reporting period was largely influenced by Japan, which has the largest stock
market outside the U.S. Despite such positive factors as stabilizing U.S.
interest rates and a stronger U.S. dollar, Japanese stocks were unable to
overcome a flagging economy, a stubbornly depressed real estate market, and a
growing banking crisis. Meanwhile, other Asian markets, such as Hong Kong,
Malaysia, and Singapore, rebounded sharply from 1994 levels. Hong Kong, in
particular, was up more than 34% in the first 10 months of 1995, based on local
currency.
=============================================================================
LIPPER RANKINGS (As of 10/31/95)
AIM GLOBAL
PERIOD FUND(A) FUNDS TOP%
- -----------------------------------------------------------------------------
1 YEAR 4 121 4%
Fund total return performance rankings are vs. all global funds tracked by
Lipper, excluding all sales charges, and including fees and expenses.
=============================================================================
Latin American markets continued to be overshadowed by the ongoing
financial crisis in Mexico, which has yet to resolve. However, other emerging
markets--chiefly Peru, Chile, Brazil, and Argentina--began to attract investor
interest thanks to improved profitability, relative political and economic
stability, and solid growth potential.
YOUR INVESTMENT PORTFOLIO
A glance at the Fund's portfolio confirms a successful theme for AIM Global
Growth Fund during the reporting period. Technology companies, which comprised a
significant proportion of the Fund's domestic holdings, continued to offer
outstanding value. The Fund also invested in some of the better performing
European markets such as Switzerland, Sweden, the Netherlands, and top
Asian/Pacific markets such as Hong Kong and Australia. 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.
The Fund's foreign segment benefited from its strategic shift out of
cyclical stocks, such as building materials and construction companies, and into
defensive holdings such as pharmaceutical and media companies. Many of the
Fund's holdings were added to the portfolio during the last 12 months. Still,
the criteria remains the same: the Fund looks for well-established mid- and
large-size companies demonstrating strong earnings momentum relative to their
local economies.
UNITED STATES. The Fund focused on investing approximately 30% of its
portfolio in domestic stocks. Expanding market penetration and product
innovations propelled many technology stocks to unprecedented levels. The Fund
added such new names to the portfolio as Netscape Communications and Cisco
Systems, Inc. In addition, Fund managers continued to be attracted to specialty
retailers, such as Bed Bath and Beyond, Petco Animal Supplies, Inc., Circuit
City Stores, Inc., and Staples, Inc. The Fund was also interested in medical
supply mail order vendors Cardinal Health Inc. and Omnicare Inc.
See important Fund disclosure on inside front cover.
2
<PAGE> 5
==============================================================================
TOP TEN DOMESTIC EQUITY HOLDINGS (as of 10/31/95)
1. Philip Morris Companies, Inc.
2. Netscape Communications Corp.
3. Lam Research Corp.
4. Applied Materials, Inc.
5. Computer Associates International, Inc.
6. Bay Networks, Inc.
7. Micron Technology Inc.
8. Texas Instruments Inc.
9. Intimate Brands, Inc.
10. Abbott Laboratories
==============================================================================
==============================================================================
TOP TEN INTERNATIONAL EQUITY HOLDINGS (as of 10/31/95)
1. Pharmacia AB
2. Roche Holding Ltd.
3. HSBC Holdings PLC
4. Pinault-Printemps-Redoute S.A.
5. Malayan Banking Berhad
6. Medeva PLC
7. Vickers PLC
8. Standard Chartered PLC
9. PT Hanjaya Mandala Sampoerna
10. United Engineers Berhad
=============================================================================
EUROPE. Almost 25% of the Fund's holdings were invested in Europe. Many of
the better-performing stocks in the Fund's portfolio were those considered
"core" holdings such as Pinault-Printemps Redoute SA, Carrefour Supermarche, and
Promodes in France. The Fund was also benefited by the performance of publishers
PolyGram N.V. and Wolters Kluwer N.V., and beverage maker Heineken N.V., all of
the Netherlands. The Fund added Roche Holdings Ltd. of Switzerland, Pharmacia AB
of Sweden, and Vickers PLC of the United Kingdom.
PACIFIC BASIN AND LATIN AMERICA. Approximately 17% of the Fund's portfolio
was invested in Pacific Rim countries. In Japan, the Fund emphasized selected
technology companies such as Rohm Co. Ltd., Tokyo Electron Ltd., and Kyocera
Corp. Hong Kong's Hutchison Whampoa Ltd. continued to be a strong performer; the
Fund also added HSBC Holdings PLC from Malaysia, the Fund selected Land &
General Berhad.
The Fund remained underweighted in Latin America during the reporting
period. The exclusive holding remaining in Mexico, Kimberly-Clark de Mexico,
outperformed the Mexican market by 60% during the reporting period.
OUTLOOK FOR THE FUTURE
The current environment of stable interest rates and subdued inflation bodes
well for global stock markets. At this writing, U.S. equity markets have
conquered new record performance levels thanks to expectations of continued
strong earnings. A healthier U.S. dollar should help improve the profitability
of European, Japanese, and Asian exports. As a result, healthy economic
expansion in Europe and Southeast Asia, excluding Japan, should continue well
into 1996. Japan has initiated economic stimulus measures which may yet revive
investor confidence during the coming year. However, Japan's banking industry
still struggles with regulatory reform.
No one can predict how these and other factors may actually affect market
performance around the world. Therefore, AIM chooses not to rely on forecasts
and projections. We do not 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 companies in which we invest, based
upon verified financial information. Such a strategy helps us determine, on a
company-by-company basis, which stocks to own and which to sell--without
guesswork or futile attempts at market timing. We believe our commitment to this
time-tested, earnings-driven strategy will provide the best opportunity for
growth for our shareholders over the long term.
==============================================================================
THE TECHNOLOGY CYCLE: A SELF-PROPELLED ENGINE
Its global significance growing, the dynamic technology sector is broad and
complex--and fast-paced. The daily challenge for an investment manager is to
identify those companies with accelerating rates of growth, as well as companies
that have lost earnings momentum.
However, AIM has identified a continuing theme in technology companies
which should drive profits in this sector well into the next decade. We see it
as a self-propelled engine which shows no signs of slowing:
1) NEW TECHNOLOGIES INCREASE PRODUCTIVITY, which
2) INCREASES CORPORATE PROFITS, attracting
3) INCREASED COMPETITION, which
4) DRIVES DOWN PRICES, resulting in
5) HIGHER DEMAND AND INCREASED APPLICATION TO MORE END MARKETS, thus
encouraging
6) DEVELOPMENT OF NEW TECHNOLOGIES.
And so, the cycle continues.
==============================================================================
See important Fund disclosure on inside front cover.
3
<PAGE> 6
A Message from
the Chairman
GROWTH OF A $10,000 INVESTMENT
==============================================================================
AVERAGE ANNUAL TOTAL RETURNS
For periods ended October 31, 1995
CLASS A SHARES
Inception (9/15/94) 15.24%
1 Year 14.76
CLASS B SHARES
Inception (9/15/94) 16.30%
1 Year 14.96
- ------------------------------------------------------------------------------
[MOUNTAIN LINE CHART]
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AIM GLOBAL GROWTH AIM GLOBAL GROWTH LIPPER GLOBAL MORGAN STANLEY CAPITAL
FUND CLASS A SHARES FUND CLASS B SHARES FUND INDEX INTERNATIONAL WORLD INDEX
<S> <C> <C> <C> <C>
9/15/94 9,524 $10,000 $10,000 $10,000
9,362 9,830 9,823 9,721
9,743 10,220 9,979 9,982
9,333 9,790 9,511 9,533
12/94 9,299 9,750 9,400 9,609
9,061 9,490 9,089 9,449
9,404 9,850 9,192 9,570
3/95 9,785 10,240 9,383 10,015
10,090 10,550 9,689 10,346
10,366 10,840 9,903 10,418
6/95 10,833 11,330 10,092 10,397
11,576 12,110 10,586 10,900
11,471 11,990 10,458 10,640
11,748 12,270 10,653 10,933
10/95 11,738 11,860 10,397 10,744
</TABLE>
Past performance cannot guarantee comparable future results.
==============================================================================
AIM Global Growth 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.
Lipper Analytical Services, Inc. is an independent mutual fund performance
monitor. The unmanaged Lipper Global Company Fund Index represents an average of
the performance of global mutual funds tracked by Lipper.
The Morgan Stanley Capital International World Index is a group of
unmanaged global securities tracked by Morgan Stanley Capital International. The
Fund has elected to use this index, which tracks both domestic and foreign
securities, as a more appropriate performance comparison with AIM Global Growth
Fund. In previous reports, the Fund used both Morgan Stanley's unmanaged Europe,
Asia, and Far East Index, which tracks only foreign securities, and Standard &
Poor's Composite Index of 500 Stocks, an unmanaged average which tracks only
domestic securities. In accordance with SEC guidelines, we have provided the
chart at left to illustrate the performance of the Fund compared to indexes used
in the previous annual report.
An investment cannot be made in any indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect sales
charges.
==============================================================================
FUND vs. PREVIOUS INDEXES
<TABLE>
<CAPTION>
AIM GLOBAL AIM GLOBAL EUROPE,
GROWTH FUND GROWTH FUND AUSTRALIA, AND
CLASS A SHARES CLASS B SHARES S&P 500 FAR EAST INDEX
<S> <C> <C> <C> <C>
9/15/94 $9,524 $10,000 $10,000 $10,000
9/94 9,362 9,830 9,814 9,687
10/94 9,743 10,220 10,019 10,012
11/94 9,333 9,790 9,623 9,533
12/94 9,299 9,750 9,812 9,595
1/95 9,061 9,490 10,051 9,229
2/95 9,404 9,850 10,413 9,205
3/95 9,785 10,240 10,765 9,781
4/95 10,090 10,550 11,066 10,152
5/95 10,366 10,840 11,468 10,033
6/95 10,833 11,330 11,789 9,860
7/95 11,576 12,110 12,164 10,477
8/95 11,471 11,990 12,160 10,079
9/95 11,748 12,270 12,723 10,279
10/95 11,738 11,860 12,660 10,005
</TABLE>
==============================================================================
4
<PAGE> 7
For
Consideration
EXPANDING OPPORTUNITIES FOR INVESTORS OVERSEAS
Many investors have discovered the growing potential offered by investing in a
portfolio that includes foreign securities.
o MORE OPPORTUNITY.
Many of the largest companies in the world, based on market capitalization, are
outside the United States. In fact, 71 of world's 90 largest companies are not
American. That list includes:
o 7 of the 10 largest APPLIANCE companies
o 7 of the 10 largest AUTOMOBILE companies
o 7 of the 10 largest INSURANCE companies
o 8 of the 10 largest CHEMICAL companies
o 8 of the 10 largest ELECTRICAL/ELECTRONICS companies
o 8 of the 10 largest FINANCIAL SERVICES companies
o 8 of the 10 largest MACHINERY companies
o 8 of the 10 largest UTILITIES companies
o 10 of the 10 largest BANKS.
Source: Morgan Stanley Capital International
o GROWTH POTENTIAL.
Many countries are growing faster than the United States. Moreover, earnings
reports for international companies have been stronger than analysts had
expected--a trend that could continue into 1996 and beyond as foreign countries
continue to grow and develop.
o GREATER DIVERSIFICATION.
Most investors recognize the benefits of diversifying their investments across a
variety of industries. Since stock markets rarely move in step, it also makes
sense to consider diversifying into different countries. Studies show that a
portfolio invested approximately 65% in U.S. securities and 35% in foreign
securities reduces the overall volatility and increased returns of an equity
portfolio over time.
==============================================================================
BENEFITS OF A DIVERSIFIED STOCK PORTFOLIO
GROWTH OF $10,000: 9/30/75-9/30/95
65% U.S. Stocks/ 100%
35% International Stocks U.S.Stocks
$164,938 $15,5167
Source: Morgan Stanley Capital International
==============================================================================
==============================================================================
FOREIGN MARKETS HAVE DELIVERED HIGHER RETURNS
AVERAGE TOTAL RETURNS IN U.S. DOLLARS: 9/30/85-9/30/95
Hong Kong 25.29%
Netherlands 22.79
Belgium 21.78
Sweden 19.51
Switzerland 19.00
Spain 18.16
France 17.92
Sing/Malaysia 16.53
United Kingdom 16.23
United States 14.90
Denmark 14.39
Austria 14.02
Australia 13.33
Japan 13.27
Germany 13.26
Source: Morgan Stanley Capital International
==============================================================================
(continued on next page)
See important Fund disclosure on inside front cover.
5
<PAGE> 8
- ---------------------------
Top market performance
moves from country to
country, and many foreign
stock markets have
outperformed the U.S.
market.
Over the past 10
years, market leadership
has rotated among seven
different countries.
During that time, the U.S.
stock market was never
the top performer, and it
was among the top five
only twice.
- ---------------------------
==============================================================================
WORLD EQUITY MARKET LEADERSHIP MOVES FROM COUNTRY TO COUNTRY (as of 9/30/95)
ANNUAL TOTAL % RETURN IN U.S. DOLLAR TERMS
BEST WORST USA
12/85 Austria 176.26% Singapore/Malaysia -22.19% 31.08%
12/86 Spain 121.25 Norway -2.52 16.28
12/87 Japan 43.03 Germany -24.75 2.91
12/88 Belgium 53.63 New Zealand -13.75 14.61
12/89 Austria 103.91 Finland -9.63 30.01
12/90 U.K. 10.29 New Zealand -37.67 -3.15
12/91 Hong Kong 49.52 Finland -18.07 30.07
12/92 Hong Kong 32.29 Denmark -28.25 6.39
12/93 Hong Kong 116.70 U.S.A. 9.15 9.15
12/94 Finland 52.18 Hong Kong -28.9 1.13
9/95 Finland 47.54 Japan -4.2 29.62
Source: Morgan Stanley Capital International
==============================================================================
IMPORTANT INFORMATION ABOUT INVESTING IN FOREIGN SECURITIES. Investors should
understand the risks associated with investing in foreign securities such as
currency risk, political and economic risk, regulatory risk, differences in
accounting, and market risk.
See important Fund disclosure on inside front cover.
6
<PAGE> 9
FINANCIALS
SCHEDULE OF INVESTMENTS
October 31, 1995
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-29.44%
AEROSPACE/DEFENSE-0.47%
500 Boeing Co. (The) $ 32,813
- --------------------------------------------------------------------------------------------
800 Sundstrand Corp. 49,000
- --------------------------------------------------------------------------------------------
1,200 United Technologies Corp. 106,500
- --------------------------------------------------------------------------------------------
188,313
- --------------------------------------------------------------------------------------------
APPLIANCES-0.12%
2,000 Newell Co. 48,250
- --------------------------------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES-0.40%
3,500 Echlin, Inc. 125,125
- --------------------------------------------------------------------------------------------
2,000 Mark IV Industries, Inc. 39,000
- --------------------------------------------------------------------------------------------
164,125
- --------------------------------------------------------------------------------------------
AUTOMOBILE (MANUFACTURERS)-0.23%
1,800 Chrysler Corp. 92,925
- --------------------------------------------------------------------------------------------
BANKING-0.76%
3,000 CoreStates Financial Corp. 109,125
- --------------------------------------------------------------------------------------------
2,500 Norwest Corp. 73,750
- --------------------------------------------------------------------------------------------
5,000 Southern National Corp. 128,750
- --------------------------------------------------------------------------------------------
311,625
- --------------------------------------------------------------------------------------------
BUILDING MATERIALS-0.65%
6,500 American Standard, Inc.(a) 173,875
- --------------------------------------------------------------------------------------------
3,200 ServiceMaster L.P. 90,800
- --------------------------------------------------------------------------------------------
264,675
- --------------------------------------------------------------------------------------------
BEVERAGES (SOFT DRINKS)-0.23%
1,800 PepsiCo Inc. 94,950
- --------------------------------------------------------------------------------------------
BUSINESS SERVICES-0.66%
1,100 Equifax Inc. 42,900
- --------------------------------------------------------------------------------------------
1,200 Healthcare COMPARE Corp.(a) 44,400
- --------------------------------------------------------------------------------------------
3,900 Manpower Inc. 105,787
- --------------------------------------------------------------------------------------------
2,000 Olsten Corp. 77,000
- --------------------------------------------------------------------------------------------
270,087
- --------------------------------------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.41%
3,000 Grace (W.R.) & Co. 167,250
- --------------------------------------------------------------------------------------------
COMPUTER MAINFRAMES-0.31%
1,300 International Business Machines Corp. 126,425
- --------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-0.71%
3,300 COMPAQ Computer Corp.(a) 183,975
- --------------------------------------------------------------------------------------------
2,000 Digital Equipment Corp.(a) 108,250
- --------------------------------------------------------------------------------------------
292,225
- --------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTER NETWORKING-1.60%
3,200 Bay Networks, Inc.(a) $ 212,000
- --------------------------------------------------------------------------------------------
2,000 Cabletron Systems, Inc.(a) 157,250
- --------------------------------------------------------------------------------------------
2,000 Cisco Systems, Inc.(a) 155,000
- --------------------------------------------------------------------------------------------
2,800 3Com Corp.(a) 131,600
- --------------------------------------------------------------------------------------------
655,850
- --------------------------------------------------------------------------------------------
COMPUTER PERIPHERALS-0.77%
2,500 Adaptec Inc.(a) 111,250
- --------------------------------------------------------------------------------------------
8,000 PixTech, Inc.(a) 79,000
- --------------------------------------------------------------------------------------------
2,800 Seagate Technology(a) 125,300
- --------------------------------------------------------------------------------------------
315,550
- --------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-2.07%
400 Adobe Systems, Inc. 22,800
- --------------------------------------------------------------------------------------------
1,600 BMC Software Inc.(a) 57,000
- --------------------------------------------------------------------------------------------
3,000 Cadence Design Systems, Inc.(a) 96,750
- --------------------------------------------------------------------------------------------
4,000 Computer Associates International, Inc. 220,000
- --------------------------------------------------------------------------------------------
4,700 Dendrite International, Inc.(a) 81,663
- --------------------------------------------------------------------------------------------
400 Microsoft Corp.(a) 40,000
- --------------------------------------------------------------------------------------------
3,000 Netscape Communications Corp.(a) 264,000
- --------------------------------------------------------------------------------------------
3,800 Seer Technologies, Inc.(a) 57,000
- --------------------------------------------------------------------------------------------
200 Sterling Software, Inc.(a) 9,225
- --------------------------------------------------------------------------------------------
848,438
- --------------------------------------------------------------------------------------------
CONGLOMERATES-0.03%
500 Dial Corp. (The) 12,187
- --------------------------------------------------------------------------------------------
CONTAINERS-0.22%
2,000 First Brands Corp. 91,500
- --------------------------------------------------------------------------------------------
COSMETICS & TOILETRIES-0.12%
600 Procter & Gamble Co. 48,600
- --------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-0.64%
3,200 Anixter International Inc.(a) 61,200
- --------------------------------------------------------------------------------------------
1,100 AVX Corp. 34,237
- --------------------------------------------------------------------------------------------
5,000 Teradyne, Inc.(a) 166,875
- --------------------------------------------------------------------------------------------
262,312
- --------------------------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS-0.74%
2,500 Arrow Electronics, Inc.(a) 126,875
- --------------------------------------------------------------------------------------------
3,500 Avnet, Inc. 176,313
- --------------------------------------------------------------------------------------------
303,188
- --------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.24%
4,500 Paine Webber Group Inc. 99,000
- --------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-1.87%
5,200 Countrywide Credit Industries, Inc. 115,050
- --------------------------------------------------------------------------------------------
2,400 Dean Witter, Discover & Co. 119,400
- --------------------------------------------------------------------------------------------
1,600 Federal Home Loan Mortgage Corp. 110,800
- --------------------------------------------------------------------------------------------
2,400 Finova Group, Inc. 108,600
- --------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
Finance (Consumer Credit)-continued
4,300 MBNA Corp. $ 158,563
- --------------------------------------------------------------------------------------------
2,500 Student Loan Marketing Association 147,187
- --------------------------------------------------------------------------------------------
100 SunAmerica, Inc. 6,225
- --------------------------------------------------------------------------------------------
765,825
- --------------------------------------------------------------------------------------------
FOOD/PROCESSING-0.52%
900 ConAgra, Inc. 34,763
- --------------------------------------------------------------------------------------------
2,100 Heinz (H. J.) Co. 97,650
- --------------------------------------------------------------------------------------------
5,600 Hudson Foods, Inc. 79,100
- --------------------------------------------------------------------------------------------
211,513
- --------------------------------------------------------------------------------------------
FUNERAL SERVICES-0.12%
1,200 Loewen Group, Inc. 48,056
- --------------------------------------------------------------------------------------------
GAMING-0.21%
6,500 Station Casinos, Inc.(a) 84,500
- --------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.10%
1,500 La Quinta Motor Inns, Inc. 38,625
- --------------------------------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.24%
3,500 United Companies Financial Corp. 98,875
- --------------------------------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-0.51%
3,000 ACE, Ltd. 102,000
- --------------------------------------------------------------------------------------------
800 CIGNA Corp. 79,300
- --------------------------------------------------------------------------------------------
1,400 Prudential Reinsurance Holdings, Inc. 28,525
- --------------------------------------------------------------------------------------------
209,825
- --------------------------------------------------------------------------------------------
MEDICAL (DRUGS)-1.71%
5,000 Abbott Laboratories 198,750
- --------------------------------------------------------------------------------------------
1,000 American Home Products Corp. 88,625
- --------------------------------------------------------------------------------------------
2,000 AmeriSource Health Corp.(a) 54,500
- --------------------------------------------------------------------------------------------
500 Johnson & Johnson 40,750
- --------------------------------------------------------------------------------------------
2,000 Mallinckrodt Group, Inc. 69,500
- --------------------------------------------------------------------------------------------
3,750 Mylan Laboratories, Inc. 71,250
- --------------------------------------------------------------------------------------------
1,200 Pfizer Inc. 68,850
- --------------------------------------------------------------------------------------------
2,000 Schering-Plough Corp. 107,250
- --------------------------------------------------------------------------------------------
699,475
- --------------------------------------------------------------------------------------------
MEDICAL (INSTRUMENTS/PRODUCTS)-0.77%
800 Becton, Dickinson and Co. 52,000
- --------------------------------------------------------------------------------------------
2,700 Biomet, Inc.(a) 44,887
- --------------------------------------------------------------------------------------------
600 Cordis Corp.(a) 66,300
- --------------------------------------------------------------------------------------------
800 Medtronic, Inc. 46,200
- --------------------------------------------------------------------------------------------
900 St. Jude Medical, Inc. 47,925
- --------------------------------------------------------------------------------------------
1,300 Sybron International Corp.(a) 55,250
- --------------------------------------------------------------------------------------------
312,562
- --------------------------------------------------------------------------------------------
MEDICAL (SERVICES)-1.30%
3,320 Apria Healthcare Group, Inc.(a) 71,795
- --------------------------------------------------------------------------------------------
1,600 Columbia/HCA Healthcare Corp. 78,600
- --------------------------------------------------------------------------------------------
1,500 Healthsource, Inc.(a) 79,500
- --------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
Medical (Services)-continued
5,000 Healthsouth Rehabilitation Corp.(a) $ 130,625
- --------------------------------------------------------------------------------------------
3,800 Lincare Holdings Inc.(a) 94,525
- --------------------------------------------------------------------------------------------
2,800 Vencor, Inc.(a) 77,700
- --------------------------------------------------------------------------------------------
532,745
- --------------------------------------------------------------------------------------------
OFFICE AUTOMATION-0.19%
600 Xerox Corp. 77,850
- --------------------------------------------------------------------------------------------
OFFICE PRODUCTS-0.35%
4,000 Reynolds & Reynolds Co.-Class A 142,500
- --------------------------------------------------------------------------------------------
OIL & GAS (SERVICES)-0.15%
1,500 Halliburton Co. 62,250
- --------------------------------------------------------------------------------------------
RESTAURANTS-0.16%
4,600 Buffets, Inc.(a) 57,500
- --------------------------------------------------------------------------------------------
300 Outback Steakhouse, Inc.(a) 9,413
- --------------------------------------------------------------------------------------------
66,913
- --------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUG)-0.75%
2,200 Hannaford Bros. Co. 57,475
- --------------------------------------------------------------------------------------------
1,400 Jack Eckerd Corp.(a) 55,475
- --------------------------------------------------------------------------------------------
2,600 Kroger Co.(a) 86,775
- --------------------------------------------------------------------------------------------
2,300 Safeway Inc.(a) 108,675
- --------------------------------------------------------------------------------------------
308,400
- --------------------------------------------------------------------------------------------
RETAIL (STORES)-2.25%
3,600 AutoZone, Inc.(a) 89,100
- --------------------------------------------------------------------------------------------
5,500 Circuit City Stores, Inc. 183,563
- --------------------------------------------------------------------------------------------
6,000 Consolidated Stores Corp.(a) 138,750
- --------------------------------------------------------------------------------------------
3,000 Gap, Inc. (The) 118,125
- --------------------------------------------------------------------------------------------
12,000 Intimate Brands, Inc.(a) 201,000
- --------------------------------------------------------------------------------------------
1,050 Staples, Inc.(a) 27,956
- --------------------------------------------------------------------------------------------
1,000 Tandy Corp. 49,375
- --------------------------------------------------------------------------------------------
2,500 Viking Office Products Inc.(a) 111,250
- --------------------------------------------------------------------------------------------
919,119
- --------------------------------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.43%
1,500 Thermo Electron Corp.(a) 69,000
- --------------------------------------------------------------------------------------------
2,100 Varian Associates, Inc. 107,887
- --------------------------------------------------------------------------------------------
176,887
- --------------------------------------------------------------------------------------------
SEMICONDUCTORS-4.57%
2,000 Analog Devices, Inc.(a) 72,250
- --------------------------------------------------------------------------------------------
4,600 Applied Materials, Inc.(a) 230,575
- --------------------------------------------------------------------------------------------
3,500 Atmel Corp.(a) 109,375
- --------------------------------------------------------------------------------------------
2,400 Integrated Device Technology, Inc.(a) 45,600
- --------------------------------------------------------------------------------------------
800 Intel Corp. 55,900
- --------------------------------------------------------------------------------------------
4,000 KLA Instruments Corp.(a) 171,000
- --------------------------------------------------------------------------------------------
4,000 LAM Research Corp.(a) 243,500
- --------------------------------------------------------------------------------------------
2,500 LSI Logic Corp.(a) 117,813
- --------------------------------------------------------------------------------------------
3,000 MEMC Electronic Materials, Inc.(a) 96,000
- --------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
Semiconductors-continued
3,000 Micron Technology Inc. $ 211,875
- --------------------------------------------------------------------------------------------
1,400 Motorola, Inc. 91,875
- --------------------------------------------------------------------------------------------
500 Novellus Systems, Inc.(a) 34,437
- --------------------------------------------------------------------------------------------
200 Solectron Corp.(a) 8,050
- --------------------------------------------------------------------------------------------
3,000 Texas Instruments Inc. 204,750
- --------------------------------------------------------------------------------------------
2,700 Vishay Intertechnology, Inc.(a) 95,175
- --------------------------------------------------------------------------------------------
3,500 VLSI Technology Inc.(a) 82,250
- --------------------------------------------------------------------------------------------
1,870,425
- --------------------------------------------------------------------------------------------
SHOES & RELATED APPAREL-0.13%
1,200 Nine West Group, Inc.(a) 53,400
- --------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-0.90%
3,000 AT&T Corp. 192,000
- --------------------------------------------------------------------------------------------
3,700 MobileMedia Corp.(a) 97,125
- --------------------------------------------------------------------------------------------
2,300 Tellabs, Inc.(a) 78,200
- --------------------------------------------------------------------------------------------
367,325
- --------------------------------------------------------------------------------------------
TOBACCO-0.83%
4,000 Philip Morris Companies, Inc. 338,000
- --------------------------------------------------------------------------------------------
Total Domestic Common Stocks 12,042,545
- --------------------------------------------------------------------------------------------
DOMESTIC CONVERTIBLE PREFERRED STOCK-0.09%
FINANCE (CONSUMER CREDIT)-0.09%
600 SunAmerica Inc.-$3.10 Conv. Pfd. 37,200
- --------------------------------------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-54.85%
ARGENTINA-0.35%
6,300 Buenos Aires Embotelladora S.A.-ADR Class-B (Beverages-Soft Drinks) 144,113
- --------------------------------------------------------------------------------------------
AUSTRALIA-2.48%
43,668 Australia and New Zealand Banking Group Ltd. (Banking) 182,948
- --------------------------------------------------------------------------------------------
8,750 Broken Hill Proprietary Co. Ltd. (Conglomerates) 118,506
- --------------------------------------------------------------------------------------------
10,600 News Corp. Ltd. (The)-Preference Shares-ADR (Publishing) 193,450
- --------------------------------------------------------------------------------------------
32,500 QBE Insurance Group Ltd. (Insurance-Multi-Line Property) 143,586
- --------------------------------------------------------------------------------------------
106,000 QNI Ltd. (Gold & Silver Mining) 203,393
- --------------------------------------------------------------------------------------------
27,200 Western Mining Corp. Holdings Ltd. (Metals-Miscellaneous) 174,455
- --------------------------------------------------------------------------------------------
1,016,338
- --------------------------------------------------------------------------------------------
AUSTRIA-0.78%
1,800 OMV AG (Oil & Gas-Services) 155,431
- --------------------------------------------------------------------------------------------
1,880 Oesterreichische Elektrizitaetswirtschafts AG (Verbundgesellschaft)
(Electric Power) 114,871
- --------------------------------------------------------------------------------------------
250 Wienerberger Baustoffindustrie AG (Building Materials) 50,245
- --------------------------------------------------------------------------------------------
320,547
- --------------------------------------------------------------------------------------------
CANADA-1.02%
14,000 Bombardier Inc.-Class B (Conglomerates) 171,108
- --------------------------------------------------------------------------------------------
6,200 Imasco Ltd. (Tobacco) 111,061
- --------------------------------------------------------------------------------------------
3,800 Northern Telecom Ltd. (Telecommunications) 136,800
- --------------------------------------------------------------------------------------------
418,969
- --------------------------------------------------------------------------------------------
CHILE-0.77%
4,400 Compania de Telefonos de Chile S.A.-ADR (Telephone) 316,800
- --------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DENMARK-0.82%
1,800 Danisco A/S (Food/Processing) $ 82,028
- --------------------------------------------------------------------------------------------
1,000 Novo-Nordisk A/S (Medical-Drugs) 127,196
- --------------------------------------------------------------------------------------------
2,750 Unidanmark A/S (Banking-Money Center) 126,327
- --------------------------------------------------------------------------------------------
335,551
- --------------------------------------------------------------------------------------------
FINLAND-0.59%
230 Nokia Corp.(a) (Telecommunications) 13,158
- --------------------------------------------------------------------------------------------
1,700 Nokia Corp.-ADR(a) (Telecommunications) 94,775
- --------------------------------------------------------------------------------------------
6,800 Repola Ltd. (Paper & Forest Products) 131,594
- --------------------------------------------------------------------------------------------
239,527
- --------------------------------------------------------------------------------------------
FRANCE-6.42%
1,500 Accor S.A. (Hotels/Motels) 178,217
- --------------------------------------------------------------------------------------------
220 Carrefour Supermarche (Retail-Food & Drug) 129,208
- --------------------------------------------------------------------------------------------
970 Castorama Dubois (Building Materials) 157,299
- --------------------------------------------------------------------------------------------
1,000 Christian Dior S.A. (Textiles) 98,158
- --------------------------------------------------------------------------------------------
900 Docks de France, S.A. (Retail-Food & Drug) 136,930
- --------------------------------------------------------------------------------------------
720 ECCO Travail Temporaire (Business Services) 111,605
- --------------------------------------------------------------------------------------------
1,100 Essilor International-Compagnie Generale d'Optique
(Medical-Instruments/Products) 203,575
- --------------------------------------------------------------------------------------------
23,000 Euro Disneyland SCA(a) (Leisure & Recreation) 77,371
- --------------------------------------------------------------------------------------------
1,300 Legrand (Electronic Components/Miscellaneous) 217,460
- --------------------------------------------------------------------------------------------
960 LVMH Moet Hennessy Louis Vuitton (Beverages-Alcoholic) 191,014
- --------------------------------------------------------------------------------------------
1,420 Pinault-Printemps-Redoute, S.A. (Retail-Stores) 307,806
- --------------------------------------------------------------------------------------------
900 Promodes S.A. (Retail-Stores) 219,198
- --------------------------------------------------------------------------------------------
500 Rexel S.A. (Electronic Components/Miscellaneous) 80,775
- --------------------------------------------------------------------------------------------
1,060 Roussel Uclaf (Medical-Drugs) 173,845
- --------------------------------------------------------------------------------------------
4,200 SGS-Thomson Microelectronics N.V.-New York Shares-ADR(a)
(Semiconductors) 190,050
- --------------------------------------------------------------------------------------------
440 Sidel S.A. (Machinery-Heavy) 152,782
- --------------------------------------------------------------------------------------------
2,625,293
- --------------------------------------------------------------------------------------------
GERMANY-1.67%
250 Altana Industrie-Aktien und Anlagen A.G. (Chemicals) 145,372
- --------------------------------------------------------------------------------------------
375 Gehe A.G. (Medical-Instruments/Products) 184,090
- --------------------------------------------------------------------------------------------
500 Mannesmann A.G. (Machinery-Miscellaneous) 164,571
- --------------------------------------------------------------------------------------------
4,600 Veba A.G. (Electric Power) 188,856
- --------------------------------------------------------------------------------------------
682,889
- --------------------------------------------------------------------------------------------
HONG KONG-2.95%
30,000 Cheung Kong Holdings Ltd. (Real Estate) 169,170
- --------------------------------------------------------------------------------------------
211,000 First Pacific Co. (Conglomerates) 242,856
- --------------------------------------------------------------------------------------------
22,000 HSBC Holdings PLC (Banking) 320,111
- --------------------------------------------------------------------------------------------
40,000 Hutchison Whampoa Ltd. (Conglomerates) 220,386
- --------------------------------------------------------------------------------------------
56,000 New World Infrastructure(a) (Building Materials) 98,504
- --------------------------------------------------------------------------------------------
19,600 Sun Hung Kai Properties Ltd. (Real Estate) 156,537
- --------------------------------------------------------------------------------------------
1,207,564
- --------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
INDONESIA-1.42%
109,500 PT Astra International (Automobile/Trucks-Parts & Tires) $ 219,385
- --------------------------------------------------------------------------------------------
29,000 PT Hanjaya Mandala Sampoerna (Tobacco) 268,164
- --------------------------------------------------------------------------------------------
36,000 PT Semen Gresik (Building Materials) 93,527
- --------------------------------------------------------------------------------------------
581,076
- --------------------------------------------------------------------------------------------
IRELAND-0.14%
1,400 Elan Corp. PLC-ADR(a) (Medical-Drugs) 56,175
- --------------------------------------------------------------------------------------------
ISRAEL-0.33%
3,400 Teva Pharmaceutical Industries Ltd.-ADR (Medical-Drugs) 133,450
- --------------------------------------------------------------------------------------------
ITALY-0.88%
1,200 Fila Holding S.p.A.-ADR (Shoes & Related Apparel) 51,750
- --------------------------------------------------------------------------------------------
81,000 Telecom Italia S.p.A. (Telecommunications) 124,091
- --------------------------------------------------------------------------------------------
110,100 Telecom Italia Mobile S.p.A.(a) (Telecommunications) 185,181
- --------------------------------------------------------------------------------------------
361,022
- --------------------------------------------------------------------------------------------
JAPAN-11.16%
4,000 Advantest Corp. (Semiconductors) 226,795
- --------------------------------------------------------------------------------------------
5,695 Alpine Electronics (Electronic Components/Miscellaneous) 79,061
- --------------------------------------------------------------------------------------------
1,300 Autobacs Seven (Automobile/Trucks-Parts & Tires) 122,636
- --------------------------------------------------------------------------------------------
6,000 Bridgestone Corp. (Automobile/Trucks-Parts & Tires) 83,288
- --------------------------------------------------------------------------------------------
8,000 Canon, Inc. (Office Automation) 136,859
- --------------------------------------------------------------------------------------------
7,000 Exedy Corp. (Automobile/Trucks-Parts & Tires) 108,803
- --------------------------------------------------------------------------------------------
4,000 Fanuc Ltd. (Electronic Components/Miscellaneous) 173,224
- --------------------------------------------------------------------------------------------
20,000 Fujitsu Ltd. (Computer MINI/PCS) 238,526
- --------------------------------------------------------------------------------------------
22,000 Hitachi Ltd. (Electronic Components/Miscellaneous) 225,817
- --------------------------------------------------------------------------------------------
7,000 Hoya Corp. (Electronic Components/Miscellaneous) 205,289
- --------------------------------------------------------------------------------------------
12,000 Kajima Corp. (Engineering & Construction) 110,739
- --------------------------------------------------------------------------------------------
3,000 Kyocera Corp. (Electronic Components/Miscellaneous) 245,760
- --------------------------------------------------------------------------------------------
7,000 Mitsumi Electric Co. Ltd. (Electronic Components/Miscellaneous) 169,021
- --------------------------------------------------------------------------------------------
17,000 NEC Corp. (Semiconductors) 224,351
- --------------------------------------------------------------------------------------------
18,000 Nikon Corp. (Consumer Non-Durables) 256,904
- --------------------------------------------------------------------------------------------
770 Nippon Television Network (Advertising/Broadcasting) 183,665
- --------------------------------------------------------------------------------------------
80 NTT Data Communication Systems Corp. (Computer Software & Services) 200,205
- --------------------------------------------------------------------------------------------
8,000 Omron Corp. (Electronic Components/Miscellaneous) 187,692
- --------------------------------------------------------------------------------------------
24,000 Ricoh Co., Ltd. (Office Automation) 258,077
- --------------------------------------------------------------------------------------------
4,000 Rohm Co., Ltd. (Semiconductors) 242,827
- --------------------------------------------------------------------------------------------
3,300 SMC (Machinery-Miscellaneous) 231,947
- --------------------------------------------------------------------------------------------
6,000 Tokyo Electron Ltd. (Electronic Components/Miscellaneous) 260,423
- --------------------------------------------------------------------------------------------
28,000 Toshiba Corp. (Conglomerates) 202,825
- --------------------------------------------------------------------------------------------
12,000 Yamaha Corp. (Electronic Components/Miscellaneous) 191,212
- --------------------------------------------------------------------------------------------
4,565,946
- --------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MALAYSIA-2.20%
48,000 Bandar Raya Developments Berhad (Real Estate) $ 71,782
- --------------------------------------------------------------------------------------------
11,000 Edaran Otomobil Nasional Berhad (Automobile Manufacturers) 86,797
- --------------------------------------------------------------------------------------------
72,000 Land & General Berhad (Paper & Forest Products) 167,178
- --------------------------------------------------------------------------------------------
38,000 Malayan Banking Berhad (Banking) 306,572
- --------------------------------------------------------------------------------------------
43,000 United Engineers (Building Materials) 267,375
- --------------------------------------------------------------------------------------------
899,704
- --------------------------------------------------------------------------------------------
MEXICO-0.61%
19,000 Kimberly-Clark de Mexico, S.A. (Paper & Forest Products) 248,000
- --------------------------------------------------------------------------------------------
NETHERLANDS-2.89%
11,300 Elsevier N.V. (Publishing) 146,095
- --------------------------------------------------------------------------------------------
1,210 Heineken N.V. (Beverages-Alcoholic) 214,729
- --------------------------------------------------------------------------------------------
5,100 Koninklijke Ahold N.V. (Retail-Food & Drug) 193,291
- --------------------------------------------------------------------------------------------
1,400 Philips Electronics N.V.-New York Shares-ADR (Electronic
Components/Miscellaneous) 54,075
- --------------------------------------------------------------------------------------------
1,550 Utigevuer Bezit N.V. (Publishing) 217,302
- --------------------------------------------------------------------------------------------
5,700 Vendex International N.V. (Retail-Stores) 164,374
- --------------------------------------------------------------------------------------------
2,100 Wolters Kluwer N.V. (Publishing) 191,127
- --------------------------------------------------------------------------------------------
1,180,993
- --------------------------------------------------------------------------------------------
NEW ZEALAND-0.28%
27,800 Telecom Corp. of New Zealand Ltd. (Telecommunications) 115,428
- --------------------------------------------------------------------------------------------
NORWAY-1.25%
3,800 Nera A.S.-ADR(a) (Telecommunications) 134,900
- --------------------------------------------------------------------------------------------
4,000 Norsk Hydro A.S. (Oil & Gas-Integrated) 159,306
- --------------------------------------------------------------------------------------------
750 Orkla A.S. (Metals-Miscellaneous) 38,783
- --------------------------------------------------------------------------------------------
35,000 UNI Storebrand AS(a) (Insurance-Multi-Line Property) 176,489
- --------------------------------------------------------------------------------------------
509,478
- --------------------------------------------------------------------------------------------
PHILIPPINES-0.22%
629,000 Metro Pacific Corp. (Conglomerates) 90,686
- --------------------------------------------------------------------------------------------
PORTUGAL-0.39%
8,500 Portugal Telecom S.A.(a) (Computer Networking) 160,961
- --------------------------------------------------------------------------------------------
SINGAPORE-0.16%
7,400 United OverSeas Bank Ltd. (Banking) 64,935
- --------------------------------------------------------------------------------------------
SPAIN-1.25%
120 Acerinox, S.A. (Steel) 12,634
- --------------------------------------------------------------------------------------------
1,850 Corporacion Mapfre Compania Internacional de Reaseguros, S.A.
(Insurance-Multi-Line) 94,732
- --------------------------------------------------------------------------------------------
3,300 Empresa Nacional de Electricidad, S.A. (Electric Power) 164,115
- --------------------------------------------------------------------------------------------
1,010 Gas Natural SDG-E S.A. (Gas Distribution) 138,523
- --------------------------------------------------------------------------------------------
3,000 Tabacalera S.A. (Tobacco) 100,774
- --------------------------------------------------------------------------------------------
510,778
- --------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 17
FINANCIALS
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWEDEN-3.15%
1,550 Astra AB (Medical-Drugs) $ 56,953
- --------------------------------------------------------------------------------------------
3,350 Astra AB-B Shares (Medical-Drugs) 121,073
- --------------------------------------------------------------------------------------------
2,600 Autoliv AB (Automobile/Trucks-Parts & Tires) 149,173
- --------------------------------------------------------------------------------------------
15,550 Pharmacia AB (Medical-Drugs) 540,923
- --------------------------------------------------------------------------------------------
7,800 Sandvik AB (Machine Tools) 146,824
- --------------------------------------------------------------------------------------------
7,000 Skandia Group Insurance Company Ltd. (Insurance-Multi-Line
Property) 177,619
- --------------------------------------------------------------------------------------------
4,400 Telefonaktiebolaget L. M. Ericsson-ADR (Telecommunications) 93,981
- --------------------------------------------------------------------------------------------
1,286,546
- --------------------------------------------------------------------------------------------
SWITZERLAND-2.25%
175 BBC Brown Boveri Ltd. (Engineering & Construction) 203,008
- --------------------------------------------------------------------------------------------
220 Ciba-Geigy Ltd. (Medical-Drugs) 190,487
- --------------------------------------------------------------------------------------------
50 Roche Holding Ltd. (Conglomerates) 363,340
- --------------------------------------------------------------------------------------------
200 Sandoz Ltd. (Medical-Drugs) 165,067
- --------------------------------------------------------------------------------------------
921,902
- --------------------------------------------------------------------------------------------
THAILAND-0.44%
2,300 Bank of Ayudhya Public Company Ltd. (Banking) 13,253
- --------------------------------------------------------------------------------------------
10,200 Land & House Company Ltd. PLC (Real Estate) 164,562
- --------------------------------------------------------------------------------------------
177,815
- --------------------------------------------------------------------------------------------
UNITED KINGDOM-7.98%
24,300 Argos PLC (Retail-Stores) 196,320
- --------------------------------------------------------------------------------------------
61,000 ASDA Group PLC (Retail-Food & Drug) 98,853
- --------------------------------------------------------------------------------------------
9,300 BOC Group PLC (Chemicals-Specialty) 127,773
- --------------------------------------------------------------------------------------------
14,000 British Petroleum Co. PLC (Oil & Gas-Services) 103,035
- --------------------------------------------------------------------------------------------
117,200 Burton Group PLC (Retail-Stores) 186,686
- --------------------------------------------------------------------------------------------
26,200 Compass Group PLC (Restaurants) 178,118
- --------------------------------------------------------------------------------------------
30,000 Cookson Group PLC (Consumer Non-Durables) 138,972
- --------------------------------------------------------------------------------------------
500 Danka Business Systems Inc.-ADR (Office Automation) 16,750
- --------------------------------------------------------------------------------------------
39,000 Dixons Group PLC (Retail-Stores) 236,158
- --------------------------------------------------------------------------------------------
9,600 Farnell Electronics PLC (Electronic Components/Miscellaneous) 100,933
- --------------------------------------------------------------------------------------------
13,600 Granada Group PLC (Leisure & Recreation) 145,246
- --------------------------------------------------------------------------------------------
67,200 Medeva PLC (Medical-Drugs) 289,518
- --------------------------------------------------------------------------------------------
10,700 Provident Financial PLC (Finance-Consumer Credit) 130,092
- --------------------------------------------------------------------------------------------
29,000 Rentokil Group PLC (Business Services) 144,427
- --------------------------------------------------------------------------------------------
10,900 Smith (David S.) Holdings PLC (Paper & Forest Products) 99,263
- --------------------------------------------------------------------------------------------
33,500 Standard Chartered PLC (Finance-Asset Management) 275,680
- --------------------------------------------------------------------------------------------
30,700 Storehouse PLC (Retail-Stores) 145,613
- --------------------------------------------------------------------------------------------
6,300 Thorn EMI PLC (Leisure & Recreation) 146,718
- --------------------------------------------------------------------------------------------
71,100 Vickers PLC (Machinery-Miscellaneous) 282,155
- --------------------------------------------------------------------------------------------
92,000 WPP Group PLC (Advertising/Broadcasting) 224,000
- --------------------------------------------------------------------------------------------
3,266,310
- --------------------------------------------------------------------------------------------
Total Foreign Stocks & Other Equity Interests 22,438,796
- --------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 18
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
CONVERTIBLE BONDS-0.99%
$100,000 Danka Business Systems Inc., Conv. Yankee Bonds, 6.75%, 04/01/02
(Office Automation) $ 132,000
- --------------------------------------------------------------------------------------------
230,000 MBL Intl Finance Bermuda, Conv. Yankee Bonds, 3.00%, 11/30/02
(Banking) 239,775
- --------------------------------------------------------------------------------------------
50,000 Office Depot Inc., Conv. Notes, 4.00%, 11/01/08(b) (Retail-Stores) 32,750
- --------------------------------------------------------------------------------------------
Total Convertible Bonds 404,525
- --------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT-9.43%(c)
3,859,173 Daiwa Securities America Inc., 5.90%, 11/01/95(d) 3,859,173
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-94.80% 38,782,239
- --------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-5.20% 2,128,853
- --------------------------------------------------------------------------------------------
NET ASSETS-100.00% $40,911,092
============================================================================================
</TABLE>
Abbreviations:
ADR-American Depository Receipt
Conv.-Convertible
Pfd-Preferred
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Zero coupon bond. The interest rate shown represents the rate of original
issue discount.
(c) 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 percent 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.
(d) Joint repurchase agreement entered into 10/31/95 with a maturing value of
$401,494,641. Collateralized by $353,853,000 U.S. Treasury obligations,
8.375% due 08/15/08.
See Notes to Financial Statements.
16
<PAGE> 19
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $35,799,747) $ 38,782,239
- ----------------------------------------------------------------------------------------
Foreign currencies, at market value (cost $1,590,097) 1,593,973
- ----------------------------------------------------------------------------------------
Receivables for:
Investments sold 576,917
- ----------------------------------------------------------------------------------------
Capital stock sold 1,083,535
- ----------------------------------------------------------------------------------------
Dividends and interest 33,849
- ----------------------------------------------------------------------------------------
Reimbursement from advisor 5,145
- ----------------------------------------------------------------------------------------
Investment for deferred compensation plan 2,753
- ----------------------------------------------------------------------------------------
Other assets 8,579
- ----------------------------------------------------------------------------------------
Total assets 42,086,990
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 1,065,207
- ----------------------------------------------------------------------------------------
Capital stock repurchased 15,817
- ----------------------------------------------------------------------------------------
Deferred compensation 2,753
- ----------------------------------------------------------------------------------------
Accrued advisory fees 27,138
- ----------------------------------------------------------------------------------------
Accrued administrative services fees 3,078
- ----------------------------------------------------------------------------------------
Accrued distribution fees 21,652
- ----------------------------------------------------------------------------------------
Accrued transfer agent fees 9,140
- ----------------------------------------------------------------------------------------
Accrued operating expenses 31,113
- ----------------------------------------------------------------------------------------
Total liabilities 1,175,898
- ----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 40,911,092
========================================================================================
NET ASSETS:
Class A $ 23,753,784
========================================================================================
Class B $ 17,157,308
========================================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- ----------------------------------------------------------------------------------------
Outstanding 1,927,871
========================================================================================
Class B:
Authorized 200,000,000
- ----------------------------------------------------------------------------------------
Outstanding 1,399,707
========================================================================================
Class A:
Net asset value and redemption price per share $12.32
========================================================================================
Offering price per share:
(Net asset value of $12.32 divided by 95.25%) $12.93
========================================================================================
Class B:
Net asset value and offering price per share $12.26
========================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
FINANCIALS
STATEMENT OF OPERATIONS
For the year ended October 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $25,016 foreign withholding tax) $ 204,632
- -----------------------------------------------------------------------------------------
Interest 109,444
- -----------------------------------------------------------------------------------------
Total investment income 314,076
- -----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 144,881
- -----------------------------------------------------------------------------------------
Administrative services fees 21,984
- -----------------------------------------------------------------------------------------
Directors' fees 5,509
- -----------------------------------------------------------------------------------------
Distribution fees -- Class A 50,259
- -----------------------------------------------------------------------------------------
Distribution fees -- Class B 69,931
- -----------------------------------------------------------------------------------------
Custodian fees 100,589
- -----------------------------------------------------------------------------------------
Transfer agent fees -- Class A 28,022
- -----------------------------------------------------------------------------------------
Transfer agent fees -- Class B 27,909
- -----------------------------------------------------------------------------------------
Filing fees 39,901
- -----------------------------------------------------------------------------------------
Other 46,768
- -----------------------------------------------------------------------------------------
Total expenses 535,753
- -----------------------------------------------------------------------------------------
Less expenses assumed by advisor (137,908)
- -----------------------------------------------------------------------------------------
Net expenses 397,845
- -----------------------------------------------------------------------------------------
Net investment income (loss) (83,769)
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain on sales of:
Investment securities 921,548
- -----------------------------------------------------------------------------------------
Foreign currencies 23,847
- -----------------------------------------------------------------------------------------
945,395
- -----------------------------------------------------------------------------------------
Net unrealized appreciation of:
Investment securities 2,862,030
- -----------------------------------------------------------------------------------------
Foreign currencies 4,418
- -----------------------------------------------------------------------------------------
2,866,448
- -----------------------------------------------------------------------------------------
Net gain on investment securities and foreign currencies 3,811,843
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 3,728,074
=========================================================================================
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 21
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 (loss) $ (83,769) $ (173)
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities and foreign currencies 945,395 (14,581)
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and foreign currencies 2,866,448 122,800
- ----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,728,074 108,046
- ----------------------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 18,511,217 2,020,630
- ----------------------------------------------------------------------------------------------------------------
Class B 14,304,173 1,241,068
- ----------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income -- Class A (2,116) --
- ----------------------------------------------------------------------------------------------------------------
Net increase in net assets 36,541,348 3,369,744
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 4,369,744 1,000,000
- ----------------------------------------------------------------------------------------------------------------
End of period $ 40,911,092 $ 4,369,744
================================================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 37,047,643 $ 4,261,698
- ----------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) -- (173)
- ----------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of investment securities and
foreign currencies 874,201 (14,581)
- ----------------------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and foreign currencies 2,989,248 122,800
- ----------------------------------------------------------------------------------------------------------------
$ 40,911,092 $ 4,369,744
================================================================================================================
</TABLE>
See Notes to Financial Statements.
19
<PAGE> 22
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Growth 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 Growth Fund, AIM Global Aggressive Growth Fund,
AIM Global Income Fund and AIM International Equity Fund. The Fund currently
offers two different classes of shares: the Class A shares and the 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-Except as provided in the next sentence, a security
listed or traded on an exchange is valued at the last sales price on the
exchange where the security is principally traded or, lacking any sales, at
the mean between the closing bid and asked prices on the day of valuation.
Exchange listed convertible bonds are valued at the mean between the closing
bid and asked prices obtained from a broker-dealer. If a mean is not
available, as is the case in some foreign markets, the closing bid will be
used absent a last sales price. Securities traded in the over-the-counter
market (but not including securities reported on the NASDAQ National Market
System) are valued at the mean between the closing bid and asked prices on
valuation date. Securities reported on the NASDAQ National Market System are
valued at the last sales price on the valuation date or absent a last sales
price, at the mean of the closing bid and asked prices. 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 Company's
officers in a manner specifically authorized by the Board of Directors.
Investments with maturities of 60 days or less are valued on the basis of
amortized cost which approximates market value. Generally, trading in foreign
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 the 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 the Fund's net asset value.
If events materially affecting the value of such securities occur during such
period, then these securities will be valued at their fair value as
determined in good faith by or under the supervision of the Board of
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 forward 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 forward 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 forward 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.
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,
20
<PAGE> 23
FINANCIALS
1995, undistributed net investment income (loss) was increased by $86,058,
paid-in capital reduced by $29,445 and undistributed net realized gains
reduced by $56,613 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.
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 0.85% of
the first $1 billion of the Fund's average daily net assets, plus 0.80% of the
Fund's average daily net assets in excess of $1 billion. During the year ended
October 31, 1995, AIM waived fees of $19,558 and assumed expenses of $72,900 and
$45,450 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 $21,984 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency
services to the Fund. During the year ended October 31, 1995, AFS was paid
$33,579 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, pays 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. Of the total compensation payable, a service fee of 0.25% is paid to
selected dealers and 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, pays 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 pays 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 $50,259 and $69,931, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $82,337 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 $25,155 in
contingent deferred sales charges imposed on redemptions of
21
<PAGE> 24
FINANCIALS
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES-(continued)
Fund 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
$3,693 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 $300,000 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 line of
credit agreement. The Fund is charged an administrative fee, payable quarterly,
at the annual rate of $300.
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
$39,648,940 and $12,056,101, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of October 31, 1995 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $3,669,171
- -----------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (686,918)
- -----------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $2,982,253
===================================================================================
</TABLE>
Cost of investments for tax purposes is $35,799,986.
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
<S> <C> <C> <C> <C>
------------------------ ----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- -------- ----------
Sold:
Class A 1,836,306 $20,814,602 211,509 $2,109,618
- -------------------------------------- --------- ----------- -------- ----------
Class B 1,403,515 15,741,389 131,203 1,303,950
- -------------------------------------- --------- ----------- -------- ----------
Issued as reinvestment of
distributions:
Class A 171 1,642 - -
- -------------------------------------- --------- ----------- -------- ----------
Reacquired:
Class A (210,976) (2,305,027) (9,139) (88,988)
- -------------------------------------- --------- ----------- -------- ----------
Class B (128,718) (1,437,216) (6,293) (62,882)
- -------------------------------------- --------- ----------- -------- ----------
2,900,298 $32,815,390 327,280 $3,261,698
====================================== ========= =========== ======== ==========
</TABLE>
22
<PAGE> 25
FINANCIALS
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share and a
Class B share outstanding during the year ended October 31, 1995 and the period
September 15, 1994 (date 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 $ 10.23 $ 10.00 $ 10.22 $ 10.00
- --------------------------------------------- -------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.02) - (0.04) -
- --------------------------------------------- -------- ------- ------- -------
Net gains on securities (both realized and
unrealized) 2.11 0.23 2.08 0.22
- --------------------------------------------- -------- ------- ------- -------
Total from investment operations 2.09 0.23 2.04 0.22
- --------------------------------------------- -------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.004) - - -
- --------------------------------------------- -------- ------- ------- -------
Total distributions (0.004) - - -
- --------------------------------------------- -------- ------- ------- -------
Net asset value, end of period $ 12.32 $ 10.23 $ 12.26 $ 10.22
- --------------------------------------------- -------- ------- ------- -------
Total return(a) 20.48% 2.30% 19.96% 2.20%
- --------------------------------------------- -------- ------- ------- -------
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 23,754 $ 3,093 $17,157 $ 1,277
============================================= ======== ======= ======= =======
Ratio of expenses to average net assets 2.12%(b) 1.95%(c) 2.64%(d) 2.51%(c)
============================================= ======== ======= ======= =======
Ratio of net investment income (loss) to
average net assets (0.28)%(b) 0.10%(c) (0.79)%(d) (0.47)%(c)
============================================= ======== ======= ======= =======
Portfolio turnover rate 79% 6% 79% 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 $10,051,749. Ratios of expenses
and net investment income (loss) to average net assets before fee waivers
and expense reimbursements are 2.98% and (1.14)%, respectively.
(c) Annualized.
(d) Ratios are based on average net assets of $6,993,129. Ratios of expenses and
net investment income (loss) to average net assets before fee waivers and
expense reimbursements are 3.38% and (1.54)%, respectively.
23
<PAGE> 26
AUDITORS' REPORT
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 Growth 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 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 disclosures 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 Growth Fund as of October 31, 1995, the results of its operations for the
year then ended, and changes in its net assets and the financial highlights for
the year then ended and 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
24
<PAGE> 27
<TABLE>
<CAPTION>
DIRECTORS & OFFICERS
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 ADVISER
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 Andrews & Ingersoll
Associates, Inc. Jonathan C. Schoolar 1735 Market Street
Vice President Philadelphia, PA 19103
Lewis F. Pennock
Attorney P. Michelle Grace COUNSEL TO THE DIRECTORS
Assistant Secretary
Ian W. Robinson Kramer, Levin, Naftalis, Nessen,
Consultant, Former Executive David L. Kite Kamin & Frankel
Vice President and Chief Assistant Secretary 919 Third Avenue
Financial Officer New York, NY 10022
Bell Atlantic Management Nancy L. Martin
Services, Inc. Assistant Secretary DISTRIBUTOR
Louis S. Sklar Ofelia M. Mayo A I M Distributors, Inc.
Executive Vice President Assistant Secretary 11 Greenway Plaza
Hines Interests Suite 1919
Limited Partnership Kathleen J. Pflueger Houston, TX 77046
Assistant Secretary
AUDITORS
Samuel D. Sirko
Assistant Secretary KPMG Peat Marwick LLP
700 Louisiana
Stephen I. Winer NationsBank Bldg.
Assistant Secretary Houston, TX 77002
Mary J. Benson
Assistant Treasurer
</TABLE>
<PAGE> 28
<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 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.
---------------
BULK RATE
U.S. POSTAGE
[AIM LOGO APPEARS HERE] PAID
HOUSTON, TX
Permit No. 1919
---------------
A I M Distributors, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
</TABLE>
