<PAGE> 1
[COVER PHOTO APPEARS HERE]
AIM GLOBAL AGGRESSIVE
GROWTH FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1996
<PAGE> 2
AIM GLOBAL AGGRESSIVE GROWTH FUND
For shareholders who seek long-term growth of capital. The Fund invests in a
portfolio of global equity securities of small capitalization companies with
above-average earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Aggressive 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 due to differences in sales charge structure and Fund
expenses.
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 is subject to change and there is no
assurance the Fund will continue to hold any one particular security.
o Past performance cannot guarantee comparable future results.
o International investing presents certain risks not associated with investing
solely in the U.S. These include risks relating to fluctuations in the value
of the U.S. dollar relative to the value of other currencies, the custody
arrangements made for the Fund's foreign holdings, differences in
accounting, political risks, and the lesser degree of public information
required to be provided by non-U.S. companies.
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 Small Company Fund Category represents
an average of the performance of global small company mutual funds tracked
by Lipper.
o The Morgan Stanley Capital International World Index is a group of unmanaged
global securities tracked by Morgan Stanley Capital International.
o An investment cannot be made in any index 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
- ---------------------------
At $3 trillion in assets,
the industry has grown
1,500 times
over the past 50 years.
If we are to sustain
that growth,
we must have
the public's confidence.
- ---------------------------
Dear Shareholder:
"Past performance is no guarantee of future
[PHOTO OF results."
Charles T. Bauer,
Chairman of As a mutual fund investor, you've seen this disclaimer on
the Board of every piece of mail you've ever received about your fund.
the Fund, You've seen it so often that you probably don't even
APPEARS HERE] think about it or question what it means. But you should.
That sentence about past performance is true now more
than ever. These days it bluntly means: "Don't expect the
25% to 35% returns you received last year." Don't automatically expect the 15%
to 20% returns of the past decade, either. History shows that the average
annual return is about 9% to 10%. If you're investing in mutual funds with
expectations of double-digit returns every year, you will be disappointed.
Maybe not today, but sometime in the future.
What is a realistic expectation for 1996? In this uncertain market, it is
easier to discuss what is unrealistic. Last year's performance was an
anomaly--the equivalent of euphoria. To expect a repeat is unrealistic.
I realize I am sounding a warning bell during the mutual fund industry's
best year ever. Investors like you poured $99 billion into stock mutual funds
during the first four months of 1996--the highest inflows on record. At $3
trillion in assets, the industry has grown 1,500 times over the past 50 years.
If we are to sustain that growth, we must have the public's confidence. Our
industry has a long-standing reputation for honesty and integrity. To maintain
that reputation as our assets swell into the trillions, we must make sure that
we don't promise anything we can't produce.
The industry's concern about investors' expectations goes beyond stamping
all our advertising with a standard disclaimer about performance. Mutual fund
leaders recently met for a conference in New York, and foremost on our minds
was educating investors about market volatility.
A whole generation of investors has seen nothing but a bull market, which
started in 1982. Except for the 1987 market crash, they've enjoyed a heady
rise. They may expect the same throughout this decade. I've been in the mutual
fund industry for more than 25 years, and I have seen a 5% to 10% market
correction about every five years. The last major correction was in 1990. If
history is any kind of teacher, we are overdue.
The challenge for investors is not to panic when the market takes a
downturn. We have another saying in the industry: "Focus on time, not timing."
Over time, the stock market has proven to be the only investment that
consistently beats inflation. But investing in it takes a long-term view.
Market timing--trying to play the market and "rescue" your money in a
downturn--has proven to be an inefficient strategy for most investors.
The challenge for the mutual fund industry is to keep your trust during a
bear market. The industry has survived and thrived because of its built-in
integrity: By law, we must operate in the best interests of our shareholders.
The mutual fund industry is among the most regulated in the country. The
Investment Company Act of 1940, which governs our industry, protects
shareholders against self-dealing, conflicts of interest, misappropriation of
funds, and other fraudulent activities.
The industry also polices itself. At AIM we have an exhaustive code of
ethics that governs each of our 1,150 employees.
(continued)
<PAGE> 4
A Message from
the Chairman
On a very basic level, it boils down to this: We are dealing with your
money, and if we lose your trust, we lose our business.
Occasionally within the industry, there may be a rogue fund manager who gets
out of line. Unfortunately, that becomes a poor reflection of the entire
industry. We are vulnerable to even the hint of impropriety. The Washington
Post recently ran a front-page article about a mutual fund company reportedly
under investigation by the U.S. Securities and Exchange Commission for
front-running--inflating stock prices for the benefit of the fund manager. The
SEC quickly denied investigating the company, because, The Wall Street Journal
reported, some SEC officials were concerned that inaccuracies in the article
might jar the stock market. In our business, perception is everything.
That's why the mutual fund industry is set up to avoid even the perception
of self-dealing. Fund managers succeed to the extent that they attract and keep
investors. If they lose your faith, managers ultimately will fail.
Mutual funds are highly liquid investments. Any time you choose, you can
pull out of a fund and receive a redemption price reflective of the market that
day. If you become dissatisfied with a fund manager, it's easy to leave and go
elsewhere. With more than 7,000 funds available, it's a buyers' market.
The next time you read, "Past performance is no guarantee of future
results," think about your own expectations as an investor. We cannot promise
you another year like 1995. But we can promise to manage your money with
honesty and integrity.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
On the following pages is a complete discussion of your Fund's performance and
investment strategy. If you have any questions or comments about this report,
please call our Client Services department 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.
2
<PAGE> 5
Management's
Discussion & Analysis
- -------------------------
AIM Global Aggressive
Growth Fund looked
past the market
turbulence to uncover
companies still
exhibiting accelerating
earnings growth.
- -------------------------
[COVER AIM GLOBAL AGGRESSIVE GROWTH
PHOTO] FUND INVESTS IN TOP WORLD MARKETS
U.S. MARKET RECAP
Uncertainty plagued the performance of U.S. stock markets through most of the
six-month period ended April 30, 1996. With uncertainty came unprecedented
volatility as markets were whipsawed by sweeping point swings.
Early in the reporting period, the principal concern was that conditions
which prompted 1995's remarkable advance in domestic stocks -- robust corporate
earnings, moderate economic growth, and mild inflation -- would not continue.
Indeed, The Wall Street Journal reported that the net income of 692 companies
surveyed fell 18% in the fourth quarter of 1995, and economic growth slowed in
the fourth quarter to a feeble annual rate of 0.5%.
In March, markets were stunned by surprisingly strong reports that indicated
the economy might actually be overheating. Employment levels were up, and
gasoline and commodity prices were sharply higher.
Subsequent reports offered a mixed picture that suggested that the economy
was growing, but at a manageable pace without inflation. Though the markets
remained skittish, stocks resumed their advance toward record levels,
particularly small-company stocks. Market leadership was broadly divided across
selected sectors including cyclical consumer, energy, industrial, and
technology.
================================================================================
TOP 10 WORLD MARKETS
10/31/95-4/30/96
AVERAGE ANNUAL
TOTAL RETURN IN
U.S. DOLLARS
1. Argentina 37.66%
2. Taiwan 32.40
3. Mexico 30.07
4. Indonesia 28.10
5. Malaysia 27.68
6. Spain 24.04
7. Peru 21.12
8. Japan 18.08
9. Italy 16.95
10. Hong Kong 15.97
Source: Morgan Stanley Capital International
================================================================================
FOREIGN MARKETS BACK ON TRACK IN 1996
Following a disappointing performance in 1995, foreign stocks bounced back in
1996. Adjusted for U.S. dollars, 15 foreign equity markets outperformed U.S.
stocks in the first calendar quarter of 1996, according to Morgan Stanley
Capital International.
A number of positive developments in foreign economies distinguished 1996
from 1995. Declining interest rates, strengthening economies, and positive
earnings trends encouraged investors to bid up stocks and currencies in several
key markets. A rising U.S. dollar improved the profitability of European,
Japanese, and Asian exports. Lower interest rates also encouraged investors to
favor stocks over local fixed-income investments.
Asia led world markets in performance during the six months covered by this
report, based on U.S. dollars. Taiwan and Malaysia led the advance in Asian
markets, closely followed by the Philippines and Indonesia. Japan, which has
the largest non-U.S. stock market -- some 40% of the EAFE Index -- rebounded
sharply from 1995 lows amid signs that the specter of deflation has diminished.
Spain and Italy were the top performing European markets in 1996 thanks to
strong earnings projections. Much of Europe remained plagued by slow growth due
to an absence of any meaningful recovery in consumer demand. Nonetheless,
continuing restructuring efforts throughout Europe have bolstered corporate
profits and encouraged a surge in mergers and acquisitions in such sectors as
telecommunications, pharmaceuticals, and insurance.
YOUR FUND'S INVESTMENT STRATEGY
The changing earnings environment set the stage for significant changes in
market leadership during the reporting period. AIM Global Aggressive Growth
Fund looked past the market turbulence to uncover companies still exhibiting
accelerating earnings growth.
3
<PAGE> 6
Management's
Discussion & Analysis
- -------------------------
AIM Global Aggressive
Growth Fund was
invested in
502 holdings spread
across 65 industries
in 29 countries
as of April 30, 1996.
- -------------------------
The Fund performed well during the six-month period ended April 30, 1996,
outpacing both its peer group and the performance of global stocks in general.
Total return for the Fund was 17.91% and 17.55% for Class A and Class B shares,
respectively. The unmanaged Morgan Stanley Capital International World Index of
foreign and U.S. stocks rose 13.37% during the reporting period, and the Lipper
Global Small Company Growth Fund Category was up 15.72%.
Net assets nearly tripled during the reporting period from $304.2 million to
$919.5 million. The Fund was invested in 502 holdings spread across 65
industries in 29 countries. Given the strength of the U.S. dollar during the
reporting period, the Fund also emphasized foreign companies that were
generating revenue in U.S. dollars. For example, a surging dollar benefits
Japan's export businesses. Keep in mind, the Fund's portfolio composition may
change and there is no assurance the Fund will continue to hold any particular
security.
UNITED STATES. Approximately 42% of the Fund was invested in domestic
stocks, primarily in computer software and services companies. Among the larger
positions were Cognos, Inc., Xylan Corp. and Sterling Commerce, Inc. The Fund
doubled its holdings in the retail sector, adding to existing positions in
Global Directmail Corp., Sunglass Hut International, Inc., and Petco Animal
Supplies, Inc., among others, and adding new names including The Gap, Inc.,
PetSmart, and Dayton Hudson Corp. Following technology and retail sectors, the
Fund emphasized health-care companies including Quintiles Transnational Corp.,
Target Therapeutics, Inc., and American Homepatient, Inc. U.S. companies
comprised most of the Fund's holdings in finance and consumer credit companies,
including Olympic Financial Ltd. and PMT Services, Inc.
PACIFIC BASIN AND LATIN AMERICA. Japan and Pacific Rim countries comprised
approximately 20% of the portfolio, with the greatest concentration in Hong
Kong, Malaysia, the Philippines, and Singapore. Within those countries, the
Fund emphasized foreign banks, real estate companies, and asset management
companies. Among the Fund's largest holdings were Indonesia's PT Bank
International Indonesia, Hong Kong's Hang Seng Bank Ltd. and First Pacific Co.
Ltd., and Japan's Shohkoh Fund.
EUROPE. Approximately 15% of the Fund's holdings were in Europe, with the
largest concentration in the United Kingdom, France, and the Netherlands. The
Fund added a number of United Kingdom technology companies, and increased
existing positions in Logica PLC and Misys PLC. Following technology, the Fund
emphasized the retail sector, including Hermes International in France, Bulgari
S.p.A. in Italy,
<TABLE>
<CAPTION>
============================================================================================
PORTFOLIO HOLDINGS (AS OF APRIL 30, 1996)
============================================================================================
<S> <C>
TOP 10 DOMESTIC HOLDINGS TOP 10 INTERNATIONAL HOLDINGS
1. FORE Systems, Inc. 1. PT Bank Intl. Indonesia
2. Vendor, Inc. 2. Hang Seng Bank Ltd.
3. Segue Software, Inc. 3. Telecomunicacoes Brasileiras S/A-Telebras ADR
4. Engineering Animation, Inc. 4. Panamerican Beverages, Inc.
5. Mcafee Associates, Inc. 5. First Pacific Co.
6. Intel Corp. 6. Overseas Union Bank Ltd.
7. Cardinal Health, Inc. 7. Shohkoh Fund
8. Xylan Corp. 8. DBS Land Ltd.
9. CSG Systems Intl., Inc. 9. Sun Hung Kai Properties Ltd.
10. Apria Healthcare Grp., Inc. 10. Sungei Way Holdings Berhad
============================================================================================
</TABLE>
4
<PAGE> 7
Long-Term
Performance
- --------------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of March 31, 1996
(the most recent calendar quarter)
<TABLE>
<CAPTION>
<S> <C>
CLASS A SHARES
Year 32.12%*
Inception (9/15/94) 23.29
*38.71% excluding sales charge
CLASS B SHARES
1 Year 32.83%*
Inception (9/15/94) 24.27
*37.83% excluding sales charge
- --------------------------------------------------------------------------------
</TABLE>
and Carpetright PLC in the United Kingdom. Some of the Fund's largest European
holdings were Panamerican Beverage, Inc., United Kingdom's Taylor Woodrow PLC,
Swedish Esselete A.B., and Saipem S.p.A. in Italy.
OUTLOOK
Signs are that volatility may persist in U.S. financial markets for some time.
The outlook for corporate earnings is mixed for the second quarter of 1996. The
dampeners will be the rise in interest rates from the middle of the first
quarter, a stronger U.S. dollar, and strong energy prices. Higher interest
rates increase the cost of borrowing and erode profits. A strong dollar impacts
competition in overseas markets. Higher oil prices have a negative ripple
effect in several industries from airlines to travel to transportation.
Inflation has been mild, but rising interest rates are a greater possibility
for 1996. Uncertainty over the economic outlook for the U.S. could initiate an
increase in interest rates worldwide, and that could arrest the fragile
economic expansion underway in Europe and Japan, and the rapid growth of
Southeast Asian economies.
<TABLE>
<CAPTION>
=========================================================================================
GROWTH OF $10,000 INVESTMENT
=========================================================================================
As of April 30, 1996
Past performance cannot guarantee comparable future results.
AIM Global Aggressive AIM Global Aggressive
Growth Fund Class A Shares Growth Fund Class B Shares MSCI World Index
<S> <C> <C> <C>
9/15/94 $9,524 $10,000 $10,000
12/31/94 9,590 10,060 9,680
3/31/95 9,943 10,420 10,145
6/30/95 11,410 11,940 10,592
9/30/95 12,676 13,240 11,197
12/31/95 12,674 13,217 11,743
4/30/96 14,700 15,305 12,525
Sources: Towers Data Systems HYPO(R)
=========================================================================================
</TABLE>
Your Fund's total return includes sales charges, expenses, and management fees.
For Fund performance calculations and descriptions of indexes cited on this
page, please refer to the inside front cover.
5
<PAGE> 8
Financials
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-42.14%
ADVERTISING/BROADCASTING-0.36%
38,200 HA-LO Industries, Inc.(a) $ 1,298,800
- ---------------------------------------------------------------------------------------------
40,000 Jacor Communications, Inc.(a) 870,000
- ---------------------------------------------------------------------------------------------
70,000 Paxson Communications Corp.(a) 1,041,250
- ---------------------------------------------------------------------------------------------
3,210,050
- ---------------------------------------------------------------------------------------------
AUTOMOBILE/TRUCK PARTS & TIRES-0.07%
8,000 Borg-Warner Automotive, Inc. 305,000
- ---------------------------------------------------------------------------------------------
15,750 Mark IV Industries, Inc. 326,812
- ---------------------------------------------------------------------------------------------
631,812
- ---------------------------------------------------------------------------------------------
BANKING-0.24%
45,000 Bank of Boston Corp. 2,176,875
- ---------------------------------------------------------------------------------------------
BIOTECHNOLOGY-0.21%
35,000 Guidant Corp. 1,964,375
- ---------------------------------------------------------------------------------------------
BUSINESS SERVICES-1.44%
25,000 Alternative Resources Corp.(a) 906,250
- ---------------------------------------------------------------------------------------------
8,500 APAC Teleservices, Inc.(a) 658,750
- ---------------------------------------------------------------------------------------------
89,300 Barrett Business Services, Inc.(a) 1,562,750
- ---------------------------------------------------------------------------------------------
33,400 Cambridge Technology Partners, Inc.(a) 2,246,150
- ---------------------------------------------------------------------------------------------
30,300 Career Horizons, Inc.(a) 1,068,075
- ---------------------------------------------------------------------------------------------
37,700 CUC International Inc.(a) 1,239,387
- ---------------------------------------------------------------------------------------------
13,500 Data Processing Resources Corp.(a) 340,875
- ---------------------------------------------------------------------------------------------
5,200 Equifax, Inc. 127,400
- ---------------------------------------------------------------------------------------------
59,700 Equity Corp. International(a) 1,708,912
- ---------------------------------------------------------------------------------------------
23,700 Olsten Corp. 719,887
- ---------------------------------------------------------------------------------------------
22,500 Romac International, Inc.(a) 826,875
- ---------------------------------------------------------------------------------------------
150,000 Walsh International, Inc.(a) 1,856,250
- ---------------------------------------------------------------------------------------------
13,261,561
- ---------------------------------------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.20%
50,000 IMC Global, Inc. 1,843,750
- ---------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-0.51%
17,000 CDW Computer Centers, Inc.(a) 1,315,375
- ---------------------------------------------------------------------------------------------
46,000 Dell Computer Corp.(a) 2,110,250
- ---------------------------------------------------------------------------------------------
23,600 Sun Microsystems, Inc.(a) 1,280,300
- ---------------------------------------------------------------------------------------------
4,705,925
- ---------------------------------------------------------------------------------------------
COMPUTER NETWORKING-2.20%
83,400 ACT Networks, Inc.(a) 2,460,300
- ---------------------------------------------------------------------------------------------
6,600 ADC Telecommunications, Inc.(a) 277,200
- ---------------------------------------------------------------------------------------------
17,900 Allen Group Inc. 443,025
- ---------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Networking-continued
33,200 Ascend Communications, Inc.(a) $ 2,041,800
- ---------------------------------------------------------------------------------------------
25,000 Auspex Systems, Inc.(a) 484,375
- ---------------------------------------------------------------------------------------------
19,050 Cascade Communications Corp.(a) 1,909,762
- ---------------------------------------------------------------------------------------------
12,000 CIDCO, Inc.(a) 429,000
- ---------------------------------------------------------------------------------------------
33,600 Cisco Systems, Inc.(a) 1,743,000
- ---------------------------------------------------------------------------------------------
41,000 FORE Systems, Inc.(a) 3,239,000
- ---------------------------------------------------------------------------------------------
23,800 PairGain Technologies, Inc.(a) 2,272,900
- ---------------------------------------------------------------------------------------------
44,600 Sync Research, Inc.(a) 880,850
- ---------------------------------------------------------------------------------------------
7,400 Tellabs, Inc.(a) 408,850
- ---------------------------------------------------------------------------------------------
49,900 3Com Corp.(a) 2,301,637
- ---------------------------------------------------------------------------------------------
1,975 TransPro, Inc.(a) 14,565
- ---------------------------------------------------------------------------------------------
80,700 Xircom, Inc.(a) 1,301,287
- ---------------------------------------------------------------------------------------------
20,207,551
- ---------------------------------------------------------------------------------------------
COMPUTER PERIPHERALS-1.15%
10,000 Adaptec Inc.(a) 575,000
- ---------------------------------------------------------------------------------------------
42,300 Chips & Technologies, Inc.(a) 473,231
- ---------------------------------------------------------------------------------------------
40,000 Dialogic Corp.(a) 1,860,000
- ---------------------------------------------------------------------------------------------
8,000 Iomega Corp.(a) 438,000
- ---------------------------------------------------------------------------------------------
11,000 Medic Computer Systems, Inc.(a) 1,028,500
- ---------------------------------------------------------------------------------------------
85,000 Mylex Corp.(a) 2,071,875
- ---------------------------------------------------------------------------------------------
13,700 U.S. Robotics Corp.(a) 2,144,050
- ---------------------------------------------------------------------------------------------
51,000 Wind River Systems(a) 1,989,000
- ---------------------------------------------------------------------------------------------
10,579,656
- ---------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-8.23%
41,100 Affiliated Computer Services, Inc.(a) 1,957,387
- ---------------------------------------------------------------------------------------------
64,800 Amisys Managed Care Systems(a) 1,360,800
- ---------------------------------------------------------------------------------------------
60,000 Applied Microsystems Corp.(a) 810,000
- ---------------------------------------------------------------------------------------------
8,800 Bell & Howell Holdings Co.(a) 277,200
- ---------------------------------------------------------------------------------------------
18,000 Cadence Design Systems, Inc.(a) 940,500
- ---------------------------------------------------------------------------------------------
5,100 Checkfree Corp.(a) 98,175
- ---------------------------------------------------------------------------------------------
25,000 Citrix Systems, Inc.(a) 1,950,000
- ---------------------------------------------------------------------------------------------
30,250 Computer Associates International, Inc. 2,219,593
- ---------------------------------------------------------------------------------------------
4,500 Computer Task Group, Inc. 125,437
- ---------------------------------------------------------------------------------------------
45,000 Computervision Corp.(a) 545,625
- ---------------------------------------------------------------------------------------------
85,000 CSG Systems International, Inc.(a) 2,720,000
- ---------------------------------------------------------------------------------------------
26,200 CyCare Systems, Inc.(a) 956,300
- ---------------------------------------------------------------------------------------------
80,000 Cylink Corp.(a) 1,460,000
- ---------------------------------------------------------------------------------------------
79,600 Dendrite International, Inc.(a) 1,890,500
- ---------------------------------------------------------------------------------------------
40,800 Documentum, Inc.(a) 1,876,800
- ---------------------------------------------------------------------------------------------
34,200 DST Systems, Inc.(a) 1,256,850
- ---------------------------------------------------------------------------------------------
7,600 Electronics for Imaging, Inc.(a) 463,600
- ---------------------------------------------------------------------------------------------
126,800 Engineering Animation, Inc.(a) 2,948,100
- ---------------------------------------------------------------------------------------------
32,000 Forte Software, Inc.(a) 1,976,000
- ---------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Software/Services-continued
7,200 Gensym Corp.(a) $ 148,500
- ---------------------------------------------------------------------------------------------
46,900 GT Interactive Software Corp.(a) 920,412
- ---------------------------------------------------------------------------------------------
7,500 HBO & Co. 890,625
- ---------------------------------------------------------------------------------------------
32,450 HCIA, Inc.(a) 1,752,300
- ---------------------------------------------------------------------------------------------
11,800 Health Systems Design Corp.(a) 178,475
- ---------------------------------------------------------------------------------------------
38,500 HPR Inc.(a) 1,655,500
- ---------------------------------------------------------------------------------------------
18,000 Hummingbird Communications Ltd. 751,500
- ---------------------------------------------------------------------------------------------
44,300 Imnet Systems, Inc.(a) 1,461,900
- ---------------------------------------------------------------------------------------------
37,500 Indus Group, Inc.(a) 796,875
- ---------------------------------------------------------------------------------------------
28,100 Intersolv(a) 305,587
- ---------------------------------------------------------------------------------------------
8,900 Intuit, Inc.(a) 462,800
- ---------------------------------------------------------------------------------------------
7,300 i2 Technologies, Inc.(a) 297,475
- ---------------------------------------------------------------------------------------------
2,900 Logic Works, Inc.(a) 49,300
- ---------------------------------------------------------------------------------------------
61,300 Lumisys, Inc.(a) 1,808,350
- ---------------------------------------------------------------------------------------------
47,900 McAfee Associates, Inc.(a) 2,933,875
- ---------------------------------------------------------------------------------------------
83,100 Meridian Data, Inc.(a) 1,443,862
- ---------------------------------------------------------------------------------------------
50,000 META Group, Inc.(a) 1,487,500
- ---------------------------------------------------------------------------------------------
4,700 MetaTools(a) 131,600
- ---------------------------------------------------------------------------------------------
9,500 Microsoft Corp.(a) 1,077,062
- ---------------------------------------------------------------------------------------------
3,900 National Data Corp. 137,475
- ---------------------------------------------------------------------------------------------
37,900 Network General Corp.(a) 1,672,337
- ---------------------------------------------------------------------------------------------
32,400 Oracle Systems Corp.(a) 1,093,500
- ---------------------------------------------------------------------------------------------
30,200 Parametric Technology Corp.(a) 1,215,550
- ---------------------------------------------------------------------------------------------
25,400 PHAMIS, Inc.(a) 374,650
- ---------------------------------------------------------------------------------------------
30,000 Physician Computer Network, Inc.(a) 337,500
- ---------------------------------------------------------------------------------------------
6,700 Premenos Technology Corp.(a) 150,750
- ---------------------------------------------------------------------------------------------
6,700 PRI Automation, Inc.(a) 189,275
- ---------------------------------------------------------------------------------------------
70,000 Prism Solutions, Inc.(a) 2,283,750
- ---------------------------------------------------------------------------------------------
13,700 RadiSys Corp.(a) 356,200
- ---------------------------------------------------------------------------------------------
3,700 Raptor Systems, Inc.(a) 122,100
- ---------------------------------------------------------------------------------------------
25,000 Rational Software Corp.(a) 1,334,375
- ---------------------------------------------------------------------------------------------
100,000 Segue Software, Inc.(a) 2,950,000
- ---------------------------------------------------------------------------------------------
25,000 Shared Medical Systems Corp. 1,712,500
- ---------------------------------------------------------------------------------------------
32,900 SoftKey International, Inc.(a) 921,200
- ---------------------------------------------------------------------------------------------
26,500 Software 2000(a) 420,687
- ---------------------------------------------------------------------------------------------
69,200 Sterling Commerce, Inc.(a) 2,422,000
- ---------------------------------------------------------------------------------------------
60,000 Structural Dynamics Research Corp.(a) 1,912,500
- ---------------------------------------------------------------------------------------------
75,000 Summit Medical Systems(a) 1,678,125
- ---------------------------------------------------------------------------------------------
40,100 Sungard Data Systems Inc.(a) 1,333,325
- ---------------------------------------------------------------------------------------------
6,300 Sykes Enterprises, Inc.(a) 223,650
- ---------------------------------------------------------------------------------------------
46,300 Synopsys, Inc.(a) 1,909,875
- ---------------------------------------------------------------------------------------------
50,000 Veritas Software Corp.(a) 2,268,750
- ---------------------------------------------------------------------------------------------
3,100 Verity, Inc.(a) 106,562
- ---------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Software/Services-continued
37,500 Viasoft, Inc.(a) $ 1,359,375
- ---------------------------------------------------------------------------------------------
43,700 Xylan Corp.(a) 2,799,531
- ---------------------------------------------------------------------------------------------
75,671,907
- ---------------------------------------------------------------------------------------------
COSMETICS & TOILETRIES-0.16%
8,000 Helen Of Troy, Ltd.(a) 200,000
- ---------------------------------------------------------------------------------------------
50,000 Nature's Sunshine Products, Inc. 1,250,000
- ---------------------------------------------------------------------------------------------
1,450,000
- ---------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-1.02%
76,400 Berg Electronics Corp.(a) 2,034,150
- ---------------------------------------------------------------------------------------------
50,000 BMC Industries, Inc. 1,337,500
- ---------------------------------------------------------------------------------------------
34,600 Cable Design Technologies(a) 1,141,800
- ---------------------------------------------------------------------------------------------
41,400 California Amplifier, Inc.(a) 1,469,700
- ---------------------------------------------------------------------------------------------
45,000 General Scanning, Inc.(a) 776,250
- ---------------------------------------------------------------------------------------------
1,785 Harman International Industries, Inc. 84,341
- ---------------------------------------------------------------------------------------------
28,500 Silicon Storage Technology, Inc.(a) 505,875
- ---------------------------------------------------------------------------------------------
30,800 Telxon Corp. 708,400
- ---------------------------------------------------------------------------------------------
20,000 Thermo Instrument Systems, Inc.(a) 660,000
- ---------------------------------------------------------------------------------------------
40,000 ThermoQuest Corp.(a) 660,000
- ---------------------------------------------------------------------------------------------
9,378,016
- ---------------------------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS-0.28%
8,500 Arrow Electronics, Inc.(a) 426,062
- ---------------------------------------------------------------------------------------------
50,000 Kent Electronics Corp.(a) 2,106,250
- ---------------------------------------------------------------------------------------------
2,532,312
- ---------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.14%
50,000 Imperial Credit Industries, Inc.(a) 1,300,000
- ---------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-1.90%
7,000 ADVANTA Corp.-Class A 391,125
- ---------------------------------------------------------------------------------------------
20,000 Cityscape Financial Corp.(a) 875,000
- ---------------------------------------------------------------------------------------------
12,200 CMAC Investment Corp. 683,200
- ---------------------------------------------------------------------------------------------
56,825 Concord EFS, Inc.(a) 1,903,637
- ---------------------------------------------------------------------------------------------
45,000 Credit Acceptance Corp.(a) 843,750
- ---------------------------------------------------------------------------------------------
38,500 Green Tree Financial Corp. 1,299,375
- ---------------------------------------------------------------------------------------------
16,600 Medaphis Corp.(a) 765,675
- ---------------------------------------------------------------------------------------------
69,275 Money Store, Inc. (The) 1,749,193
- ---------------------------------------------------------------------------------------------
100,300 Olympic Financial Ltd.(a) 2,231,675
- ---------------------------------------------------------------------------------------------
75,000 PMT Services, Inc.(a) 2,165,625
- ---------------------------------------------------------------------------------------------
25,000 Student Loan Marketing Association 1,831,250
- ---------------------------------------------------------------------------------------------
35,000 SunAmerica, Inc. 1,907,500
- ---------------------------------------------------------------------------------------------
78,900 World Acceptance Corp.(a) 779,137
- ---------------------------------------------------------------------------------------------
17,426,142
- ---------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
FOOD/PROCESSING-0.34%
50,700 Performance Food Group Co.(a) $ 1,451,287
- ---------------------------------------------------------------------------------------------
50,000 Richfood Holdings, Inc.(a) 1,631,250
- ---------------------------------------------------------------------------------------------
3,082,537
- ---------------------------------------------------------------------------------------------
GAMING-0.26%
47,600 GTECH Holdings Corp.(a) 1,350,650
- ---------------------------------------------------------------------------------------------
32,800 Trump Hotels & Casino Resorts, Inc.(a) 1,061,900
- ---------------------------------------------------------------------------------------------
2,412,550
- ---------------------------------------------------------------------------------------------
HOME BUILDING-0.09%
42,300 American Homestar Corp.(a) 951,750
- ---------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.20%
30,000 Prime Hospitality Corp.(a) 453,750
- ---------------------------------------------------------------------------------------------
33,100 Sun International Hotels Ltd.(a) 1,415,025
- ---------------------------------------------------------------------------------------------
1,868,775
- ---------------------------------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.52%
40,000 Compdent Corp.(a) 1,770,000
- ---------------------------------------------------------------------------------------------
45,000 First Commonwealth, Inc.(a) 1,226,250
- ---------------------------------------------------------------------------------------------
57,100 United Companies Financial Corp. 1,827,200
- ---------------------------------------------------------------------------------------------
4,823,450
- ---------------------------------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-0.34%
30,900 HCC Insurance Holding, Inc. 1,807,650
- ---------------------------------------------------------------------------------------------
23,100 United Dental Care, Inc. 906,675
- ---------------------------------------------------------------------------------------------
12,000 Vesta Insurance Group, Inc. 385,500
- ---------------------------------------------------------------------------------------------
3,099,825
- ---------------------------------------------------------------------------------------------
LEISURE & RECREATION-1.01%
60,000 Callaway Golf Co. 1,605,000
- ---------------------------------------------------------------------------------------------
45,000 Cannondale Corp.(a) 1,001,250
- ---------------------------------------------------------------------------------------------
30,700 Harley-Davidson, Inc. 1,354,637
- ---------------------------------------------------------------------------------------------
75,000 Imax Corp.(a) 2,493,750
- ---------------------------------------------------------------------------------------------
65,000 Moovies, Inc.(a) 780,000
- ---------------------------------------------------------------------------------------------
9,200 Morrow Snowboards, Inc.(a) 94,300
- ---------------------------------------------------------------------------------------------
35,300 West Marine, Inc.(a) 1,950,325
- ---------------------------------------------------------------------------------------------
9,279,262
- ---------------------------------------------------------------------------------------------
MEDICAL (DRUGS)-0.87%
5,000 Alpharma, Inc.-Class A 122,500
- ---------------------------------------------------------------------------------------------
45,000 Cardinal Health, Inc. 2,823,750
- ---------------------------------------------------------------------------------------------
16,700 Dura Pharmaceuticals, Inc.(a) 893,450
- ---------------------------------------------------------------------------------------------
40,000 Express Scripts, Inc.-Class A(a) 1,980,000
- ---------------------------------------------------------------------------------------------
4,000 Gulf South Medical Supply, Inc.(a) 162,000
- ---------------------------------------------------------------------------------------------
20,250 Mylan Laboratories, Inc. 394,875
- ---------------------------------------------------------------------------------------------
35,300 Watson Pharmaceuticals, Inc.(a) 1,676,750
- ---------------------------------------------------------------------------------------------
8,053,325
- ---------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
MEDICAL (PATIENT SERVICES)-6.58%
25,000 ABR Information Services, Inc.(a) $ 1,562,500
- ---------------------------------------------------------------------------------------------
47,400 American HomePatient, Inc.(a) 2,002,650
- ---------------------------------------------------------------------------------------------
22,100 American Medical Response, Inc.(a) 817,700
- ---------------------------------------------------------------------------------------------
78,019 Apria Healthcare Group, Inc.(a) 2,652,646
- ---------------------------------------------------------------------------------------------
60,100 Arbor Health Care Co.(a) 1,712,850
- ---------------------------------------------------------------------------------------------
61,500 EmCare Holdings Inc.(a) 1,722,000
- ---------------------------------------------------------------------------------------------
50,000 Enterprise Systems, Inc.(a) 1,675,000
- ---------------------------------------------------------------------------------------------
50,000 Envoy Corp.(a) 1,443,750
- ---------------------------------------------------------------------------------------------
100,000 FPA Medical Management, Inc.(a) 1,662,500
- ---------------------------------------------------------------------------------------------
24,900 Genesis Health Ventures, Inc.(a) 737,662
- ---------------------------------------------------------------------------------------------
12,000 Healthsource, Inc.(a) 409,500
- ---------------------------------------------------------------------------------------------
30,000 HEALTHSOUTH Corp.(a) 1,113,750
- ---------------------------------------------------------------------------------------------
50,000 Hologic, Inc.(a) 1,475,000
- ---------------------------------------------------------------------------------------------
60,600 Home Health Corp. of America(a) 787,800
- ---------------------------------------------------------------------------------------------
70,000 Housecall Medical Resources, Inc.(a) 1,522,500
- ---------------------------------------------------------------------------------------------
25,900 Lincare Holdings, Inc.(a) 1,005,243
- ---------------------------------------------------------------------------------------------
27,000 Living Centers of America, Inc.(a) 999,000
- ---------------------------------------------------------------------------------------------
150,000 Matria Healthcare, Inc.(a) 1,143,750
- ---------------------------------------------------------------------------------------------
38,500 MedPartners/Mullikin, Inc.(a) 1,111,687
- ---------------------------------------------------------------------------------------------
22,900 Multicare Co., Inc.(a) 649,787
- ---------------------------------------------------------------------------------------------
15,000 Myriad Genetics, Inc.(a) 494,062
- ---------------------------------------------------------------------------------------------
60,000 NCS HealthCare, Inc.(a) 2,010,000
- ---------------------------------------------------------------------------------------------
45,000 OccuSystems, Inc.(a) 1,305,000
- ---------------------------------------------------------------------------------------------
30,600 Omnicare, Inc. 1,836,000
- ---------------------------------------------------------------------------------------------
61,500 Orthodontic Centers of America, Inc.(a) 2,429,250
- ---------------------------------------------------------------------------------------------
20,000 Oxford Health Plans, Inc.(a) 1,010,000
- ---------------------------------------------------------------------------------------------
2,600 PacifiCare Health Systems, Inc. -- Class A(a) 210,600
- ---------------------------------------------------------------------------------------------
28,100 PacifiCare Health Systems, Inc. -- Class B(a) 2,356,887
- ---------------------------------------------------------------------------------------------
42,100 Pediatric Services of America, Inc.(a) 1,063,025
- ---------------------------------------------------------------------------------------------
15,200 Pediatrix Medical Group, Inc.(a) 725,800
- ---------------------------------------------------------------------------------------------
33,300 PhyCor, Inc.(a) 1,640,025
- ---------------------------------------------------------------------------------------------
35,500 Physician Reliance Network, Inc.(a) 1,535,375
- ---------------------------------------------------------------------------------------------
75,000 Physicians Resource Group, Inc.(a) 2,259,375
- ---------------------------------------------------------------------------------------------
60,400 Renal Care Group, Inc.(a) 2,083,800
- ---------------------------------------------------------------------------------------------
38,600 Rotech Medical Corp.(a) 1,601,900
- ---------------------------------------------------------------------------------------------
40,700 Sierra Health Services, Inc.(a) 1,343,100
- ---------------------------------------------------------------------------------------------
12,100 Sterling Healthcare Group(a) 208,725
- ---------------------------------------------------------------------------------------------
18,500 Summit Care Corp.(a) 397,750
- ---------------------------------------------------------------------------------------------
32,800 Sybron Corp.(a) 828,200
- ---------------------------------------------------------------------------------------------
80,000 Tenet Healthcare Corp.(a) 1,640,000
- ---------------------------------------------------------------------------------------------
32,300 Total Renal Care Holdings, Inc.(a) 1,235,475
- ---------------------------------------------------------------------------------------------
500 Universal Health Services, Inc. 27,750
- ---------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Medical (Patient Services)-(continued)
94,800 Vencor, Inc.(a) $ 3,199,500
- ---------------------------------------------------------------------------------------------
50,000 Veterinary Centers of America, Inc.(a) 1,525,000
- ---------------------------------------------------------------------------------------------
79,100 Vitalcom, Inc.(a) 1,324,925
- ---------------------------------------------------------------------------------------------
60,498,799
- ---------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-2.07%
25,000 Advanced Technology Laboratories, Inc.(a) 812,500
- ---------------------------------------------------------------------------------------------
37,650 CONMED Corp.(a) 1,120,087
- ---------------------------------------------------------------------------------------------
37,400 Dentsply International, Inc. 1,561,450
- ---------------------------------------------------------------------------------------------
12,200 Endosonics Corporation(a) 211,975
- ---------------------------------------------------------------------------------------------
9,200 Heartport, Inc.(a) 328,900
- ---------------------------------------------------------------------------------------------
29,300 Idexx Laboratories, Inc.(a) 1,303,850
- ---------------------------------------------------------------------------------------------
75,000 InControl, Inc.(a) 1,143,750
- ---------------------------------------------------------------------------------------------
70,100 IRIDEX Corporation(a) 1,051,500
- ---------------------------------------------------------------------------------------------
22,500 Medtronic, Inc. 1,195,312
- ---------------------------------------------------------------------------------------------
20,000 Nellcor Puritan Bennett, Inc.(a) 980,000
- ---------------------------------------------------------------------------------------------
35,500 Patterson Dental Co.(a) 1,073,875
- ---------------------------------------------------------------------------------------------
25,000 Physician Sales & Service, Inc.(a) 675,000
- ---------------------------------------------------------------------------------------------
35,000 Quintiles Transnational Corp.(a) 2,563,750
- ---------------------------------------------------------------------------------------------
40,000 ResMed, Inc.(a) 500,000
- ---------------------------------------------------------------------------------------------
44,800 Sofamor Danek Group, Inc.(a) 1,467,200
- ---------------------------------------------------------------------------------------------
30,000 Spine-Tech, Inc.(a) 870,000
- ---------------------------------------------------------------------------------------------
40,000 Target Therapeutics, Inc.(a) 2,170,000
- ---------------------------------------------------------------------------------------------
19,029,149
- ---------------------------------------------------------------------------------------------
METALS-0.13%
37,100 Oregon Metallurgical Corp.(a) 1,182,562
- ---------------------------------------------------------------------------------------------
OFFICE AUTOMATION-0.12%
29,000 Corporate Express, Inc.(a) 1,083,875
- ---------------------------------------------------------------------------------------------
OFFICE PRODUCTS-0.33%
38,900 BT Office Products International, Inc.(a) 675,887
- ---------------------------------------------------------------------------------------------
44,700 Daisytek International Corp.(a) 1,821,525
- ---------------------------------------------------------------------------------------------
11,500 Reynolds & Reynolds Co.- Class A 531,875
- ---------------------------------------------------------------------------------------------
3,029,287
- ---------------------------------------------------------------------------------------------
OIL & GAS (EXPLORATION & PRODUCTION)-0.03%
9,300 Belco Oil & Gas Corp.(a) 268,537
- ---------------------------------------------------------------------------------------------
OIL & GAS (SERVICES)-0.27%
35,000 Chesapeake Energy Corp.(a) 2,476,250
- ---------------------------------------------------------------------------------------------
POLLUTION CONTROL-0.51%
50,000 GTS Duratek, Inc.(a) 865,625
- ---------------------------------------------------------------------------------------------
37,200 Sanifill, Inc.(a) 1,613,550
- ---------------------------------------------------------------------------------------------
39,500 U.S. Filter Corp.(a) 1,214,625
- ---------------------------------------------------------------------------------------------
39,600 U.S.A. Waste Services, Inc.(a) 1,029,600
- ---------------------------------------------------------------------------------------------
4,723,400
- ---------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
RESTAURANTS-0.81%
50,800 Apple South, Inc. $ 1,320,800
- ---------------------------------------------------------------------------------------------
26,700 Daka International, Inc.(a) 811,012
- ---------------------------------------------------------------------------------------------
72,100 Landry's Seafood Restaurants, Inc.(a) 1,694,350
- ---------------------------------------------------------------------------------------------
26,300 Lone Star Steakhouse & Saloon(a) 1,088,162
- ---------------------------------------------------------------------------------------------
35,000 Longhorn Steaks, Inc.(a) 949,375
- ---------------------------------------------------------------------------------------------
25,000 Outback Steakhouse, Inc.(a) 1,003,125
- ---------------------------------------------------------------------------------------------
32,300 Sonic Corp.(a) 613,700
- ---------------------------------------------------------------------------------------------
7,480,524
- ---------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUG)-0.13%
5,200 Eckerd Corp. (The)(a) 248,300
- ---------------------------------------------------------------------------------------------
11,200 General Nutrition Co., Inc.(a) 218,400
- ---------------------------------------------------------------------------------------------
18,000 Kroger Co.(a) 740,250
- ---------------------------------------------------------------------------------------------
1,206,950
- ---------------------------------------------------------------------------------------------
RETAIL (STORES)-4.82%
15,800 AutoZone, Inc.(a) 576,700
- ---------------------------------------------------------------------------------------------
24,700 Barnett, Inc.(a) 580,450
- ---------------------------------------------------------------------------------------------
20,200 Bed Bath & Beyond, Inc.(a) 1,193,062
- ---------------------------------------------------------------------------------------------
20,700 Blyth Industries, Inc.(a) 822,825
- ---------------------------------------------------------------------------------------------
10,200 Boise Cascade Office Products Corp.(a) 798,150
- ---------------------------------------------------------------------------------------------
66,600 Creative Computers, Inc.(a) 541,125
- ---------------------------------------------------------------------------------------------
25,000 Dayton-Hudson Corp. 2,387,500
- ---------------------------------------------------------------------------------------------
13,250 Dollar General Corp. 349,468
- ---------------------------------------------------------------------------------------------
19,900 Duty Free International, Inc. 266,162
- ---------------------------------------------------------------------------------------------
25,200 Eastbay, Inc.(a) 378,000
- ---------------------------------------------------------------------------------------------
4,700 Gadzooks, Inc.(a) 237,350
- ---------------------------------------------------------------------------------------------
58,400 Gap, Inc. (The) 1,759,300
- ---------------------------------------------------------------------------------------------
40,000 Garden Ridge Corp.(a) 2,220,000
- ---------------------------------------------------------------------------------------------
50,200 Global DirectMail Corp.(a) 1,970,350
- ---------------------------------------------------------------------------------------------
53,900 Gymboree Corp.(a) 1,394,662
- ---------------------------------------------------------------------------------------------
51,300 Heilig-Meyers Co. 1,058,062
- ---------------------------------------------------------------------------------------------
40,000 Just for Feet, Inc.(a) 1,915,000
- ---------------------------------------------------------------------------------------------
19,500 Men's Wearhouse, Inc. (The)(a) 721,500
- ---------------------------------------------------------------------------------------------
35,400 Meyer (Fred), Inc.(a) 1,017,750
- ---------------------------------------------------------------------------------------------
35,000 Micro Warehouse, Inc.(a) 1,505,000
- ---------------------------------------------------------------------------------------------
36,500 Mossimo, Inc.(a) 1,387,000
- ---------------------------------------------------------------------------------------------
41,200 MSC Industrial Direct Co., Inc.(a) 1,498,650
- ---------------------------------------------------------------------------------------------
23,000 Nordstrom, Inc. 1,170,125
- ---------------------------------------------------------------------------------------------
46,600 O'Reilly Automotive, Inc.(a) 1,829,050
- ---------------------------------------------------------------------------------------------
31,700 Oakley, Inc.(a) 1,458,200
- ---------------------------------------------------------------------------------------------
57,000 Petco Animal Supplies, Inc.(a) 1,638,750
- ---------------------------------------------------------------------------------------------
46,100 PetSmart, Inc.(a) 2,045,687
- ---------------------------------------------------------------------------------------------
30,000 Ross Stores, Inc. 1,035,000
- ---------------------------------------------------------------------------------------------
36,900 Sports Authority, Inc. (The)(a) 1,097,775
- ---------------------------------------------------------------------------------------------
80,400 Staples, Inc.(a) 1,527,600
- ---------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Retail (Stores)-(continued)
60,000 Sunglass Hut International Inc.(a) $ 1,755,000
- ---------------------------------------------------------------------------------------------
18,600 Talbots, Inc. 534,750
- ---------------------------------------------------------------------------------------------
67,100 Tech Data Corp.(a) 1,308,450
- ---------------------------------------------------------------------------------------------
18,200 Thompson PBE, Inc.(a) 184,275
- ---------------------------------------------------------------------------------------------
7,800 Tiffany & Co. 508,950
- ---------------------------------------------------------------------------------------------
30,000 TJX Companies, Inc. 885,000
- ---------------------------------------------------------------------------------------------
25,000 Tractor Supply Co.(a) 575,000
- ---------------------------------------------------------------------------------------------
50,000 U.S. Office Products Co.(a) 1,800,000
- ---------------------------------------------------------------------------------------------
6,600 Viking Office Products, Inc.(a) 391,875
- ---------------------------------------------------------------------------------------------
44,323,553
- ---------------------------------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.15%
40,000 Input/Output, Inc.(a) 1,390,000
- ---------------------------------------------------------------------------------------------
SEMICONDUCTORS-1.18%
35,000 Elantec Semiconductor, Inc.(a) 463,750
- ---------------------------------------------------------------------------------------------
43,000 Intel Corp. 2,913,250
- ---------------------------------------------------------------------------------------------
36,400 International Rectifier Corp.(a) 819,000
- ---------------------------------------------------------------------------------------------
27,600 MEMC Electronic Materials, Inc.(a) 1,376,550
- ---------------------------------------------------------------------------------------------
61,000 Sanmina Corp.(a) 2,165,500
- ---------------------------------------------------------------------------------------------
21,000 SDL, Inc.(a) 855,750
- ---------------------------------------------------------------------------------------------
16,300 Solectron Corp.(a) 725,350
- ---------------------------------------------------------------------------------------------
50,000 Vitesse Semiconductor Corp.(a) 1,493,750
- ---------------------------------------------------------------------------------------------
10,812,900
- ---------------------------------------------------------------------------------------------
SHOES & RELATED APPAREL-0.21%
31,500 Nine West Group, Inc.(a) 1,350,562
- ---------------------------------------------------------------------------------------------
19,500 Wolverine World Wide, Inc. 602,062
- ---------------------------------------------------------------------------------------------
1,952,624
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-1.98%
15,900 ACC Corp. 532,650
- ---------------------------------------------------------------------------------------------
38,550 Andrew Corp.(a) 1,850,400
- ---------------------------------------------------------------------------------------------
37,000 Brightpoint, Inc.(a) 869,500
- ---------------------------------------------------------------------------------------------
112,400 Brite Voice Systems, Inc.(a) 2,163,700
- ---------------------------------------------------------------------------------------------
46,000 Frontier Corp. 1,454,750
- ---------------------------------------------------------------------------------------------
54,400 LCI International, Inc.(a) 1,414,400
- ---------------------------------------------------------------------------------------------
37,800 Octel Communications Corp.(a) 1,691,550
- ---------------------------------------------------------------------------------------------
35,000 Periphonics Corp.(a) 787,500
- ---------------------------------------------------------------------------------------------
48,900 Premiere Technologies, Inc.(a) 1,845,975
- ---------------------------------------------------------------------------------------------
18,600 Premisys Communications, Inc.(a) 813,750
- ---------------------------------------------------------------------------------------------
51,200 Proxim, Inc.(a) 1,427,200
- ---------------------------------------------------------------------------------------------
20,000 Teltrend, Inc.(a) 987,500
- ---------------------------------------------------------------------------------------------
19,900 TESSCO Technologies, Inc.(a) 597,000
- ---------------------------------------------------------------------------------------------
69,600 U.S. Long Distance Corp.(a) 1,792,200
- ---------------------------------------------------------------------------------------------
18,228,075
- ---------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 17
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
TEXTILES-0.47%
55,000 Liz Claiborne, Inc. $ 2,000,625
- ---------------------------------------------------------------------------------------------
15,000 Nautica Enterprises, Inc.(a) 697,500
- ---------------------------------------------------------------------------------------------
35,700 Tommy Hilfiger Corp.(a) 1,624,350
- ---------------------------------------------------------------------------------------------
4,322,475
- ---------------------------------------------------------------------------------------------
TRANSPORTATION-0.43%
100,000 Hub Group, Inc.(a) 2,325,000
- ---------------------------------------------------------------------------------------------
50,000 JB Hunt Transport Services, Inc. 1,018,750
- ---------------------------------------------------------------------------------------------
19,700 Rural/Metro Corp.(a) 583,612
- ---------------------------------------------------------------------------------------------
3,927,362
- ---------------------------------------------------------------------------------------------
TRUCKING-0.18%
50,000 American Freightways Corp.(a) 756,250
- ---------------------------------------------------------------------------------------------
40,100 TNT Freightways Corp.(a) 907,366
- ---------------------------------------------------------------------------------------------
1,663,616
- ---------------------------------------------------------------------------------------------
Total Domestic Common Stocks 387,511,344
- ---------------------------------------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-49.84%
ARGENTINA-1.71%
144,900 Banco de Galicia y Buenos Aires S.A. de C.V.-ADR (Banking) 3,405,150
- ---------------------------------------------------------------------------------------------
666,000 Perez Companc S.A.-Class B (Oil & Gas-Services)(a) 4,142,934
- ---------------------------------------------------------------------------------------------
141,000 Telefonica de Argentina S.A.-ADR (Telephone) 4,124,250
- ---------------------------------------------------------------------------------------------
187,400 YPF Sociedad Anonima-ADR (Oil & Gas-Services) 4,099,375
- ---------------------------------------------------------------------------------------------
15,771,709
- ---------------------------------------------------------------------------------------------
AUSTRALIA-0.35%
609,143 QBE Insurance Group, Ltd. (Insurance-Broker) 3,196,445
- ---------------------------------------------------------------------------------------------
AUSTRIA-0.30%
34,000 Flughafen Wien A.G. (Transportation-Miscellaneous)(a) 2,384,579
- ---------------------------------------------------------------------------------------------
5,750 Oesterreichisch Elektrizitatswirtschafts-A.G.
(Verbundgesellschaft)-Class A
(Electric Services) 406,479
- ---------------------------------------------------------------------------------------------
2,791,058
- ---------------------------------------------------------------------------------------------
BELGIUM-0.37%
21,400 Barco Industries (Electronic Components/Miscellaneous) 3,405,781
- ---------------------------------------------------------------------------------------------
BRAZIL-0.88%
127,000 Companhia Brasileira de Distribuicao Grupo Pao de Acucar
(Retail-Food & Drug) 1,926,569
- ---------------------------------------------------------------------------------------------
113,100 Telecomunicacoes Brasileiras S/A-Telebras-ADR
(Telecommunications) 6,121,537
- ---------------------------------------------------------------------------------------------
8,048,106
- ---------------------------------------------------------------------------------------------
CANADA-2.16%
75,000 Agrium, Inc. (Chemicals) 965,625
- ---------------------------------------------------------------------------------------------
45,000 Biovail Corp. International (Medical-Drugs)(a) 1,271,250
- ---------------------------------------------------------------------------------------------
94,976 CanWest Global Communications Corp. (Electronic
Components/Miscellaneous)(a) 2,703,136
- ---------------------------------------------------------------------------------------------
61,000 Cognos, Inc. (Computer Software/Services)(a) 4,132,750
- ---------------------------------------------------------------------------------------------
218,500 Extendicare, Inc.-Class A (Insurance-Life & Health)(a) 2,776,386
- ---------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 18
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Canada-(continued)
51,000 Intertape Polymer Group, Inc. (Containers) $ 2,172,603
- ---------------------------------------------------------------------------------------------
65,700 Leitch Technology Corp. (Electronic
Components/Miscellaneous)(a) 1,749,265
- ---------------------------------------------------------------------------------------------
33,800 Newbridge Networks Corp. (Computer Networking)(a) 2,175,875
- ---------------------------------------------------------------------------------------------
92,800 PC DOCS Group International, Inc. (Computer
Software/Services)(a) 1,919,800
- ---------------------------------------------------------------------------------------------
19,866,690
- ---------------------------------------------------------------------------------------------
CHILE-0.52%
52,300 Compania Telefonos de Chile S.A.-ADR (Telephone) 4,772,375
- ---------------------------------------------------------------------------------------------
DENMARK-0.63%
4,200 Falck A/S (Security & Safety Services) 725,855
- ---------------------------------------------------------------------------------------------
35,000 Kobenhavns Lufthavne (Transportation) 3,261,606
- ---------------------------------------------------------------------------------------------
24,000 Radiometer A/S-Class B (Medical Instruments/Products) 1,801,423
- ---------------------------------------------------------------------------------------------
5,788,884
- ---------------------------------------------------------------------------------------------
FINLAND-0.53%
52,500 Cultor Oy (Food/Processing) 2,310,624
- ---------------------------------------------------------------------------------------------
74,000 Tietotehdas Oy-Class B (Computer Software/Services) 2,599,388
- ---------------------------------------------------------------------------------------------
4,910,012
- ---------------------------------------------------------------------------------------------
FRANCE-4.24%
11,000 Altran Technologies, S.A. (Telecommunications) 2,971,649
- ---------------------------------------------------------------------------------------------
20,000 BIS S.A. (Business Services)(a) 2,221,577
- ---------------------------------------------------------------------------------------------
22,000 Bollore Technologies S.A. (Electronic
Components/Miscellaneous) 2,405,418
- ---------------------------------------------------------------------------------------------
3,800 Christian Dalloz (Textiles)(a) 1,105,989
- ---------------------------------------------------------------------------------------------
7,000 Compagnie Fives-Lille (Machinery-Miscellaneous) 739,622
- ---------------------------------------------------------------------------------------------
35,000 Group Axime (Banking)(a) 4,314,465
- ---------------------------------------------------------------------------------------------
8,000 Groupe Partouche S.A. (Hotels/Motels) 690,469
- ---------------------------------------------------------------------------------------------
13,000 Hermes International (Retail-Stores) 3,444,025
- ---------------------------------------------------------------------------------------------
28,200 M6 Metropole Television (Advertising/Broadcasting) 2,826,821
- ---------------------------------------------------------------------------------------------
3,000 Mecatherm (Machinery-Miscellaneous) 719,883
- ---------------------------------------------------------------------------------------------
14,000 NRJ S.A. (Advertising/Broadcasting) 1,755,587
- ---------------------------------------------------------------------------------------------
5,300 Penauille Polyservices (Security & Safety Services) 665,641
- ---------------------------------------------------------------------------------------------
5,300 Salomon S.A. (Leisure & Recreation) 3,692,307
- ---------------------------------------------------------------------------------------------
80,000 Scor S.A. (Insurance-Multi-Line Property) 2,915,142
- ---------------------------------------------------------------------------------------------
7,300 Skis Rossignol S.A. (Leisure & Recreation) 2,521,625
- ---------------------------------------------------------------------------------------------
14,100 Societe Industrielle de Transports Automobiles S.A.
(Transportation-Miscellaneous) 3,056,023
- ---------------------------------------------------------------------------------------------
40,000 Strafor Facom S.A. (Office Products) 2,902,757
- ---------------------------------------------------------------------------------------------
38,949,000
- ---------------------------------------------------------------------------------------------
GERMANY-0.75%
26,000 Fresenius A.G.-Perferred (Medical Instruments/Products) 4,025,083
- ---------------------------------------------------------------------------------------------
1,750 Hugo Boss A.G.-Perferred (Textiles) 1,748,971
- ---------------------------------------------------------------------------------------------
2,100 Porsche A.G. (Automobile/Truck Parts & Tires)(a) 1,148,148
- ---------------------------------------------------------------------------------------------
6,922,202
- ---------------------------------------------------------------------------------------------
GREECE-0.22%
57,250 Hellenic Bottling Co., S.A. (Beverages-Soft Drinks) 2,055,634
- ---------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 19
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
HONG KONG-5.47%
2,466,000 ASM Pacific Technology (Electronic Components/Miscellaneous) $ 2,422,803
- ---------------------------------------------------------------------------------------------
3,883,000 CDL Hotels International Ltd. (Hotels/Motels) 2,208,674
- ---------------------------------------------------------------------------------------------
3,760,000 China Hong Kong Photo Products Holdings, Ltd. (Chemicals) 1,859,220
- ---------------------------------------------------------------------------------------------
7,264,000 Cosco Pacific Ltd. (Transportation-Miscellaneous) 5,117,807
- ---------------------------------------------------------------------------------------------
4,620,000 Esprit Asia Holdings Ltd. (Retail-Stores) 1,776,808
- ---------------------------------------------------------------------------------------------
4,228,033 First Pacific Co. Ltd. (Conglomerates) 5,629,725
- ---------------------------------------------------------------------------------------------
2,116,000 Goldlion Holdings Ltd. (Retail-Stores) 1,778,036
- ---------------------------------------------------------------------------------------------
613,400 Hang Seng Bank Ltd. (Banking) 6,224,794
- ---------------------------------------------------------------------------------------------
2,532,000 Hong Kong and China Gas Company Ltd. (Electric Power) 4,156,990
- ---------------------------------------------------------------------------------------------
563,000 Hutchison Whampoa Ltd. (Conglomerates) 3,493,503
- ---------------------------------------------------------------------------------------------
4,090,000 Manhattan Card Company Ltd. (Finance-Asset Management) 2,432,163
- ---------------------------------------------------------------------------------------------
2,644,000 National Mutual Asia Ltd. (Insurance-Multi-Line Property) 2,238,795
- ---------------------------------------------------------------------------------------------
1,785,000 New World Infrastructure (Building Materials)(a) 3,968,974
- ---------------------------------------------------------------------------------------------
558,000 Sun Hung Kai Properties Ltd. (Real Estate) 5,319,953
- ---------------------------------------------------------------------------------------------
911,000 Varitronix International (Electronic
Components/Miscellaneous) 1,672,315
- ---------------------------------------------------------------------------------------------
50,300,560
- ---------------------------------------------------------------------------------------------
INDIA-0.01%
3,500 Reliance Industries Ltd. (Chemicals)(a) 57,750
- ---------------------------------------------------------------------------------------------
INDONESIA-0.68%
1,273,000 PT Bank International Indonesia (Banking) 6,259,985
- ---------------------------------------------------------------------------------------------
IRELAND-0.11%
212,000 Greencore Group PLC (Food/Processing) 1,019,897
- ---------------------------------------------------------------------------------------------
ISRAEL-0.43%
45,000 Koor Industries Ltd.-ADR (Telecommunications)(a) 843,750
- ---------------------------------------------------------------------------------------------
28,000 Supersol Ltd. (Retail-Food & Drug)(a) 624,568
- ---------------------------------------------------------------------------------------------
106,000 Tadiran Ltd. (Telecommunications) 2,438,000
- ---------------------------------------------------------------------------------------------
1,900 Tower Semiconductor Ltd.-ADR (Semiconductors)(a) 30,400
- ---------------------------------------------------------------------------------------------
3,936,718
- ---------------------------------------------------------------------------------------------
ITALY-1.26%
100,000 Brembo S.p.A. (Automobile/Truck Parts & Tires)(a) 1,234,507
- ---------------------------------------------------------------------------------------------
263,000 Bulgari S.p.A. (Retail-Stores) 3,283,290
- ---------------------------------------------------------------------------------------------
138,000 Marzotto & Figli S.p.A. (Textiles) 980,665
- ---------------------------------------------------------------------------------------------
41,000 Saes Getters S.p.A. (Chemicals) 813,700
- ---------------------------------------------------------------------------------------------
81,000 Safilo S.p.A. (Consumer Non-Durables) 1,641,261
- ---------------------------------------------------------------------------------------------
1,000,000 Saipem S.p.A. (Oil & Gas-Integrated) 3,645,966
- ---------------------------------------------------------------------------------------------
11,599,389
- ---------------------------------------------------------------------------------------------
JAPAN-3.17%
166,000 Aderans Co. Ltd. (Retail-Stores) 3,967,305
- ---------------------------------------------------------------------------------------------
67,100 FCC Co., Ltd. (Automobile/Truck Parts & Tires) 2,501,696
- ---------------------------------------------------------------------------------------------
399,000 Nippon Thompson (Machine Tools) 3,966,923
- ---------------------------------------------------------------------------------------------
225,000 Nomura Securities Co., Ltd. (Finance-Asset Management) 4,904,163
- ---------------------------------------------------------------------------------------------
400,000 77 Bank (Banking) 4,129,821
- ---------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE> 20
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Japan-(continued)
20,600 Shohkoh Fund (Finance-Consumer Credit) $ 5,376,224
- ---------------------------------------------------------------------------------------------
377,000 Yamato Kogyo Co., Ltd. (Building Materials) 4,324,841
- ---------------------------------------------------------------------------------------------
29,170,973
- ---------------------------------------------------------------------------------------------
MALAYSIA-3.39%
455,000 Arab Malaysian Finance Berhad (Finance-Asset Management) 2,098,624
- ---------------------------------------------------------------------------------------------
431,000 Commerce Asset Holding Berhad (Finance-Asset Management) 2,938,675
- ---------------------------------------------------------------------------------------------
745,000 Gamuda Berhad (Engineering & Construction) 4,721,052
- ---------------------------------------------------------------------------------------------
208,000 Genting Berhad (Leisure & Recreation) 1,868,688
- ---------------------------------------------------------------------------------------------
409,000 Malayan Banking Berhad (Banking) 3,986,162
- ---------------------------------------------------------------------------------------------
653,000 Nylex Berhad (Chemicals) 2,671,399
- ---------------------------------------------------------------------------------------------
1,149,000 Sungei Way Holdings Berhad (Building Materials) 5,299,602
- ---------------------------------------------------------------------------------------------
1,790,000 Tan Chong Motor Holdings Berhad (Automobile-Manufacturers) 2,886,054
- ---------------------------------------------------------------------------------------------
1,371,000 Technology Resources Industries Berhad (Conglomerates)(a) 4,673,926
- ---------------------------------------------------------------------------------------------
31,144,182
- ---------------------------------------------------------------------------------------------
MEXICO-1.21%
5,269,000 Grupo Industrial Maseca S.A. de CV-Class B (Food/Processing) 5,148,444
- ---------------------------------------------------------------------------------------------
19,000 Kimberly-Clark de Mexico S.A. de C.V. (Paper & Forest
Products) 347,779
- ---------------------------------------------------------------------------------------------
129,200 Panamerican Beverages, Inc. (Beverages-Soft Drinks) 5,668,650
- ---------------------------------------------------------------------------------------------
11,164,873
- ---------------------------------------------------------------------------------------------
NETHERLANDS-2.91%
23,000 Aalberts Industries N.V. (Metals-Miscellaneous) 1,845,637
- ---------------------------------------------------------------------------------------------
51,600 Ahrend Groep N.V. (Appliances) 2,249,501
- ---------------------------------------------------------------------------------------------
225,000 CMG PLC (Computer Software/Services) 1,864,604
- ---------------------------------------------------------------------------------------------
51,000 Getronics N.V. (Computer Software/Services) 3,541,873
- ---------------------------------------------------------------------------------------------
68,500 IHC Caland N.V. (Trucking) 2,690,428
- ---------------------------------------------------------------------------------------------
36,000 International-Muller N.V. (Conglomerates) 3,126,232
- ---------------------------------------------------------------------------------------------
85,500 Koninklijke Ahold N.V. (Retail-Food & Drug) 3,193,463
- ---------------------------------------------------------------------------------------------
30,206 Madge Networks N.V. (Computer Networking)(a) 891,077
- ---------------------------------------------------------------------------------------------
33,700 Oce-Van Der Grinten N.V.-V (Office Automation) 3,097,607
- ---------------------------------------------------------------------------------------------
39,200 Ordina Beheer N.V. (Computer Software/Services) 1,281,120
- ---------------------------------------------------------------------------------------------
46,400 Randstad Holdings N.V. (Business Services) 2,973,282
- ---------------------------------------------------------------------------------------------
26,754,824
- ---------------------------------------------------------------------------------------------
NORWAY-0.83%
53,000 Nera A.S.-ADR (Telecommunications)(a) 1,947,750
- ---------------------------------------------------------------------------------------------
59,500 Smedvig A.S. (Oil & Gas Services) 1,462,684
- ---------------------------------------------------------------------------------------------
57,000 Tandberg A.S. (Telecommunications)(a) 837,265
- ---------------------------------------------------------------------------------------------
360,000 Tomra Systems A.S. (Machinery-Miscellaneous) 3,342,669
- ---------------------------------------------------------------------------------------------
7,590,368
- ---------------------------------------------------------------------------------------------
PANAMA-0.42%
69,000 Banco Latinoamericano de Exportaciones, S.A. (Banking) 3,820,875
- ---------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE> 21
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
PERU-0.44%
24,140 Cementos Lima S.A.-Comun (Building Materials)(a) $ 284,119
- ---------------------------------------------------------------------------------------------
74,474 Cementos Lima S.A.-Trabajo (Building Materials)(a) 91,423
- ---------------------------------------------------------------------------------------------
1,656,000 CPT Telefonica del Peru S.A.-Class B (Telephones)(a) 3,702,510
- ---------------------------------------------------------------------------------------------
4,078,052
- ---------------------------------------------------------------------------------------------
PHILIPPINES-3.15%
1,650,000 Bankard, Inc. (Finance-Asset Management)(a) 914,214
- ---------------------------------------------------------------------------------------------
4,021,000 C & P Homes, Inc. (Home Building)(a) 3,457,107
- ---------------------------------------------------------------------------------------------
4,340,700 Filinvest Land Inc. (Real Estate)(a) 2,239,184
- ---------------------------------------------------------------------------------------------
1,747,000 Ionics Circuit Inc. (Electronic Components/Miscellaneous)(a) 3,104,145
- ---------------------------------------------------------------------------------------------
4,260,000 Marsman & Company, Inc. (Medical-Drugs) 2,441,727
- ---------------------------------------------------------------------------------------------
13,801,000 Metro Pacific Corp. (Conglomerates) 3,269,629
- ---------------------------------------------------------------------------------------------
172,500 Metropolitan Bank & Trust Co. (Banking) 4,647,019
- ---------------------------------------------------------------------------------------------
10,186,100 Republic Glass Holdings Corp. (Automobile/Truck Parts &
Tires) 4,086,895
- ---------------------------------------------------------------------------------------------
18,762,000 Southeast Asia Cement Holdings, Inc. (Building Materials)(a) 2,760,171
- ---------------------------------------------------------------------------------------------
6,971,000 SM Prime Holdings (Real Estate)(a) 2,024,440
- ---------------------------------------------------------------------------------------------
28,944,531
- ---------------------------------------------------------------------------------------------
PORTUGAL-0.49%
119,000 Cimpor Cimentos de Portugal S.A. (Building Materials)(a) 2,237,224
- ---------------------------------------------------------------------------------------------
28,000 Estabelecimentos Jeronimo Martins & Filho (Retail-Stores) 2,250,924
- ---------------------------------------------------------------------------------------------
4,488,148
- ---------------------------------------------------------------------------------------------
SINGAPORE-2.20%
182,000 Cerebos Pacific Ltd. (Food/Processing) 1,644,188
- ---------------------------------------------------------------------------------------------
413,000 City Developments Ltd. (Real Estate) 3,613,529
- ---------------------------------------------------------------------------------------------
1,315,000 DBS Land Ltd. (Real Estate) 5,331,839
- ---------------------------------------------------------------------------------------------
726,000 Far East Levingston Shipbuilding Ltd.
(Transportation-Miscellaneous) 4,234,741
- ---------------------------------------------------------------------------------------------
700,000 Overseas Union Bank Ltd. (Banking) 5,427,514
- ---------------------------------------------------------------------------------------------
20,251,811
- ---------------------------------------------------------------------------------------------
SPAIN-0.60%
27,000 Mapfre Vida (Insurance-Life & Health) 1,500,707
- ---------------------------------------------------------------------------------------------
80,000 Prosegur, CIA de Seguridad S.A. (Business Services)(a) 2,918,238
- ---------------------------------------------------------------------------------------------
20,000 Vidrala S.A. (Containers) 1,078,616
- ---------------------------------------------------------------------------------------------
5,497,561
- ---------------------------------------------------------------------------------------------
SWEDEN-1.33%
115,500 Assa Abloy A.B. (Machinery-Miscellaneous) 1,311,416
- ---------------------------------------------------------------------------------------------
200,000 Esselte A.B.-B Shares (Office Products) 4,010,852
- ---------------------------------------------------------------------------------------------
42,100 Securitas A.B. (Security & Safety Services) 2,421,110
- ---------------------------------------------------------------------------------------------
73,760 Telefonaktiebolaget L.M. Ericsson-ADR (Telecommunications) 1,502,860
- ---------------------------------------------------------------------------------------------
60,000 WM-Data A.B.-Class B (Computer Software/Services) 3,016,987
- ---------------------------------------------------------------------------------------------
12,263,225
- ---------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 22
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
SWITZERLAND-0.80%
1,500 Danzas Holding A.G. (Transportation-Miscellaneous) $ 1,721,568
- ---------------------------------------------------------------------------------------------
5,200 Fotolabo S.A. (Leisure & Recreation) 2,387,242
- ---------------------------------------------------------------------------------------------
1,600 Reiseburo Kuoni A.G. (Leisure & Recreation) 3,221,649
- ---------------------------------------------------------------------------------------------
7,330,459
- ---------------------------------------------------------------------------------------------
THAILAND-1.97%
71,200 Advanced Info Service PLC (Telecommunications) 1,190,215
- ---------------------------------------------------------------------------------------------
55,000 Alphatec Electronic Public Co. Ltd. (Electronic
Components/Miscellaneous) 601,319
- ---------------------------------------------------------------------------------------------
383,000 Bank of Ayudhya Ltd. (Banking) 2,260,571
- ---------------------------------------------------------------------------------------------
365,300 Hana Microelectronics Public Co., Ltd. (Electronic
Components/Miscellaneous) 2,011,396
- ---------------------------------------------------------------------------------------------
277,060 KR Precision Public Co. (Publishing) 1,503,583
- ---------------------------------------------------------------------------------------------
438,670 Krung Thai Bank PLC (Banking) 2,154,729
- ---------------------------------------------------------------------------------------------
140,400 Siam Commercial Bank Public Co. Ltd. (Banking) 2,068,917
- ---------------------------------------------------------------------------------------------
215,500 Thai Theparos Food Product Public Co. Ltd.
(Food/Processing)(a) 1,084,137
- ---------------------------------------------------------------------------------------------
594,000 Total Access Communication Public Co. Ltd.
(Telecommunications) 5,227,200
- ---------------------------------------------------------------------------------------------
18,102,067
- ---------------------------------------------------------------------------------------------
UNITED KINGDOM-6.31%
1,300,000 Astec BSR PLC (Electronic Components/Miscellaneous) 2,710,371
- ---------------------------------------------------------------------------------------------
250,000 Capital Radio PLC (Advertising/Broadcasting) 2,581,664
- ---------------------------------------------------------------------------------------------
302,000 Carpetright PLC (Retail-Stores) 2,627,668
- ---------------------------------------------------------------------------------------------
345,000 Charles Baynes PLC (Machinery-Heavy) 721,887
- ---------------------------------------------------------------------------------------------
42,500 Danka Business Systems PLC-ADR (Office Automation) 2,040,000
- ---------------------------------------------------------------------------------------------
404,000 Dewhirst Group PLC (Textiles) 1,149,420
- ---------------------------------------------------------------------------------------------
220,000 D.F.S. Furniture Co. PLC (Retail-Stores) 1,682,372
- ---------------------------------------------------------------------------------------------
405,000 Dorling Kindersley Holdings PLC (Publishing) 3,639,695
- ---------------------------------------------------------------------------------------------
150,000 Eurotherm PLC (Electronic Components/Miscellaneous) 1,381,905
- ---------------------------------------------------------------------------------------------
165,000 Games Workshop Group PLC (Leisure & Recreation) 1,030,784
- ---------------------------------------------------------------------------------------------
150,000 JBA Holdings PLC (Computer Software/Services) 1,147,072
- ---------------------------------------------------------------------------------------------
450,000 Laura Ashley Holdings PLC (Retail-Stores) 1,429,324
- ---------------------------------------------------------------------------------------------
300,000 Logica PLC (Computer Software/Services) 2,583,170
- ---------------------------------------------------------------------------------------------
180,000 London Forfaiting Co. PLC (Finance-Asset Management) 751,919
- ---------------------------------------------------------------------------------------------
1,022,000 London International Group PLC (Cosmetics & Toiletries) 2,169,230
- ---------------------------------------------------------------------------------------------
325,000 Medeva PLC (Medical-Drugs) 1,254,892
- ---------------------------------------------------------------------------------------------
299,000 Misys PLC (Computer Software/Services) 3,711,056
- ---------------------------------------------------------------------------------------------
108,000 Oxford Instruments PLC (Electronic Components/Miscellaneous) 784,434
- ---------------------------------------------------------------------------------------------
471,000 P & P PLC (Computer Peripherals) 1,159,242
- ---------------------------------------------------------------------------------------------
200,000 PizzaExpress PLC (Restaurants) 1,050,730
- ---------------------------------------------------------------------------------------------
515,000 Powerscreen International PLC (Machinery-Heavy) 3,527,397
- ---------------------------------------------------------------------------------------------
35,000 Psion PLC (Computer Software/Services) 608,535
- ---------------------------------------------------------------------------------------------
300,000 Sage Group PLC (The) (Computer Software/Services) 2,072,858
- ---------------------------------------------------------------------------------------------
200,000 Scholl PLC (Cosmetics & Toiletries) 739,123
- ---------------------------------------------------------------------------------------------
325,000 SEMA Group PLC (Computer Software/Services) 3,277,886
- ---------------------------------------------------------------------------------------------
130,000 Spirax Sarco Engineering PLC (Machinery-Miscellaneous) 1,426,614
- ---------------------------------------------------------------------------------------------
154,500 St. Ives Group PLC (Containers) 1,104,734
- ---------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 23
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
United Kingdom-(continued)
390,000 Stagecoach Holdings PLC (Transportation-Miscellaneous) $ 2,662,426
- ---------------------------------------------------------------------------------------------
1,450,000 Taylor Woodrow PLC (Engineering & Construction) 3,797,982
- ---------------------------------------------------------------------------------------------
268,000 Unitech PLC (Electronic Components/Miscellaneous) 2,783,682
- ---------------------------------------------------------------------------------------------
100,000 Virtuality Group PLC (Computer Software/Services)(a) 444,076
- ---------------------------------------------------------------------------------------------
58,052,148
- ---------------------------------------------------------------------------------------------
Total Foreign Stocks & Other Equity Interests 458,306,292
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
CONVERTIBLE CORPORATE BOND-0.07%
$ 578,000 Metro Pacific Corp., Conv. Yankee Bonds, 2.50%, 04/11/03
(Consumer Non-Durables) (Acquired 04/15/96; Cost
$591,005)(b) 603,287
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT-4.92%(c)
45,285,628 Daiwa Securities America, Inc., 5.34%, 05/01/96(d) 45,285,628
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-96.97% 891,706,551
- ---------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-3.03% 27,841,880
- ---------------------------------------------------------------------------------------------
NET ASSETS-100.00% $ 919,548,431
=============================================================================================
</TABLE>
ABBREVIATIONS:
ADR - American Depository Receipt
Conv. - Convertible
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of this security has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of this security at April 30, 1996 was $603,287,
which represented 0.07% of net assets.
(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% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(d) Joint repurchase agreement entered into 04/30/96 with a maturing value of
$767,124,680. Collateralized by $737,151,000 U.S. Treasury obligations, 0%
to 11.25% due 05/15/96 to 02/15/21.
See Notes to Financial Statements.
21
<PAGE> 24
Financials
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $748,231,014) $891,706,551
- -----------------------------------------------------------------------------------------
Foreign currencies, at market value (cost $19,290,513) 19,277,779
- -----------------------------------------------------------------------------------------
Receivables for:
Investments sold 3,921,024
- -----------------------------------------------------------------------------------------
Capital stock sold 31,377,451
- -----------------------------------------------------------------------------------------
Dividends and interest 1,090,623
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 4,237
- -----------------------------------------------------------------------------------------
Other assets 121,179
- -----------------------------------------------------------------------------------------
Total assets 947,498,844
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 25,890,904
- -----------------------------------------------------------------------------------------
Capital stock reacquired 691,974
- -----------------------------------------------------------------------------------------
Deferred compensation 4,237
- -----------------------------------------------------------------------------------------
Accrued advisory fees 581,404
- -----------------------------------------------------------------------------------------
Accrued administrative services fees 6,536
- -----------------------------------------------------------------------------------------
Accrued directors' fees 2,481
- -----------------------------------------------------------------------------------------
Accrued distribution fees 551,786
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 142,066
- -----------------------------------------------------------------------------------------
Accrued operating expenses 79,025
- -----------------------------------------------------------------------------------------
Total liabilities 27,950,413
- -----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $919,548,431
=========================================================================================
NET ASSETS:
Class A $524,622,114
=========================================================================================
Class B $394,926,317
- -----------------------------------------------------------------------------------------
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
CLASS A:
Authorized 200,000,000
- -----------------------------------------------------------------------------------------
Outstanding 34,112,384
=========================================================================================
CLASS B:
Authorized 200,000,000
- -----------------------------------------------------------------------------------------
Outstanding 25,898,622
=========================================================================================
CLASS A:
Net asset value and redemption price per share $ 15.38
- -----------------------------------------------------------------------------------------
Offering price per share:
(Net asset value of $15.38 divided by 95.25%) $ 16.15
=========================================================================================
CLASS B:
Net asset value and offering price per share $ 15.25
=========================================================================================
</TABLE>
See Notes to Financial Statements.
22
<PAGE> 25
Financials
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $260,800 foreign withholding tax) $ 2,067,941
- -----------------------------------------------------------------------------------------
Interest 1,048,233
- -----------------------------------------------------------------------------------------
Total investment income 3,116,174
- -----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 2,289,178
- -----------------------------------------------------------------------------------------
Administrative services fees 38,745
- -----------------------------------------------------------------------------------------
Directors' fees 3,955
- -----------------------------------------------------------------------------------------
Distribution fees-Class A 752,984
- -----------------------------------------------------------------------------------------
Distribution fees-Class B 1,052,297
- -----------------------------------------------------------------------------------------
Custodian fees 287,147
- -----------------------------------------------------------------------------------------
Transfer agent fees-Class A 391,666
- -----------------------------------------------------------------------------------------
Transfer agent fees-Class B 340,568
- -----------------------------------------------------------------------------------------
Other 119,000
- -----------------------------------------------------------------------------------------
Total expenses 5,275,540
- -----------------------------------------------------------------------------------------
Net investment income (loss) (2,159,366)
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) on sales of:
Investment securities (5,748,345)
- -----------------------------------------------------------------------------------------
Foreign currencies (163,200)
- -----------------------------------------------------------------------------------------
(5,911,545)
- -----------------------------------------------------------------------------------------
Unrealized appreciation of:
Investment securities 113,258,781
- -----------------------------------------------------------------------------------------
Foreign currencies 81,701
- -----------------------------------------------------------------------------------------
113,340,482
- -----------------------------------------------------------------------------------------
Net gain on investment securities and foreign currencies 107,428,937
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $105,269,571
=========================================================================================
</TABLE>
See Notes to Financial Statements.
23
<PAGE> 26
Financials
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1996 and the year ended October 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1996 1995
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (2,159,366) $ (1,185,880)
- ---------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities
and foreign currencies (5,911,545) 2,414,201
- ---------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
foreign currencies 113,340,482 29,786,715
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 105,269,571 31,015,036
- ---------------------------------------------------------------------------------------------
Distributions to shareholders from net realized capital gains:
Class A (766,563) --
- ---------------------------------------------------------------------------------------------
Class B (520,244) --
- ---------------------------------------------------------------------------------------------
Share transactions-net:
Class A 277,687,581 146,731,096
- ---------------------------------------------------------------------------------------------
Class B 233,650,144 101,870,873
- ---------------------------------------------------------------------------------------------
Net increase in net assets 615,320,489 279,617,005
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 304,227,942 24,610,937
- ---------------------------------------------------------------------------------------------
End of period $919,548,431 $304,227,942
=============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $784,076,186 $272,738,461
- ---------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (2,159,366) --
- ---------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of
investment securities and
foreign currencies (5,965,591) 1,232,761
- ---------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 143,597,202 30,256,720
- ---------------------------------------------------------------------------------------------
$919,548,431 $304,227,942
=============================================================================================
</TABLE>
See Notes to Financial Statements.
24
<PAGE> 27
Financials
NOTES TO FINANCIAL STATEMENTS
April 30, 1996
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Aggressive 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 Aggressive Growth Fund, AIM Global Growth Fund,
AIM Global Income Fund and AIM International Equity Fund. The Fund currently
offers two different classes of shares: Class A shares and Class B shares. Class
A shares are sold with a front-end sales charge. Class B shares are sold with a
contingent deferred sales charge. Matters affecting each portfolio or class are
voted on exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is to provide above-average long-term growth of
capital appreciation. The Fund seeks to achieve its objective by investing in a
portfolio of global equity securities including securities of selected companies
with relatively small market capitalization.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
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 either not readily available or are questionable 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
25
<PAGE> 28
Financials
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
E. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
F. Expenses -- Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to both
classes, e.g. advisory fees, are allocated between them.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master advisory agreement, the
Fund pays an advisory fee to AIM at the annual rate of 0.90% of the first $1
billion of the Fund's average daily net assets, plus 0.85% of the Fund's average
daily net assets in excess of $1 billion. 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 six months ended April 30, 1996, AIM
was reimbursed $38,745 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 six months ended April 30, 1996, AFS was paid
$382,885 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
distribution 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, the Fund pays a service fee of
0.25% 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, will pay AIM
Distributors 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 six months ended April 30, 1996, the
Class A shares and the Class B shares paid AIM Distributors $752,984 and
$1,052,297, respectively, as compensation under the Plans.
AIM Distributors received commissions of $1,230,344 from the sales of the
Class A shares of the Fund during the six months ended April 30, 1996. 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 six months
ended April 30, 1996, AIM Distributors received commissions of $20,048 in
contingent deferred sales charges imposed on redemptions
26
<PAGE> 29
Financials
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
of Fund shares. Certain officers and directors of the Company are officers and
directors of AIM, AFS and AIM Distributors.
During the six months ended April 30, 1996, the Fund incurred legal fees of
$1,863 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 may borrow $1,900,000 under a 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 six months ended April 30, 1996, 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 $1,900.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended April 30, 1996, on a
tax basis, was $597,791,430 and $135,550,066, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of April 30, 1996, on a tax basis, is as follows.
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $153,036,955
- -----------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (9,569,640)
- -----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $143,467,315
=========================================================================================
</TABLE>
Cost of investments for tax purposes is $748,239,236.
NOTE 6-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1996 and the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1996 OCTOBER 31, 1995
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Sold:
Class A 21,496,400 $299,673,398 13,970,703 $165,030,476
- -----------------------------------------------------------------------------------------------
Class B 17,318,694 240,506,982 8,888,670 106,907,530
- -----------------------------------------------------------------------------------------------
Issued as reinvestment of
dividends:
Class A 56,545 727,167 -- --
- -----------------------------------------------------------------------------------------------
Class B 38,442 491,287 -- --
- -----------------------------------------------------------------------------------------------
Reacquired:
Class A (1,649,423) (22,712,984) (1,563,927) (18,299,380)
- -----------------------------------------------------------------------------------------------
Class B (537,881) (7,348,125) (416,562) (5,036,657)
- -----------------------------------------------------------------------------------------------
36,722,777 $511,337,725 20,878,884 $248,601,969
===============================================================================================
</TABLE>
27
<PAGE> 30
Financials
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share and Class
B share outstanding during the six months ended April 30, 1996, the year ended
October 31, 1995 and the period September 15, 1994 (date operations commenced)
through October 31, 1994.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, ------------------------
1996 1995 1994
--------- -------- --------
<S> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 13.09 $ 10.22 $ 10.00
- -------------------------------------------------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.04)(a) (0.09)(a) --
- -------------------------------------------------- -------- -------- --------
Net gains on securities (both realized and
unrealized) 2.38 2.96 0.22
- -------------------------------------------------- -------- -------- --------
Total from investment operations 2.34 2.87 0.22
- -------------------------------------------------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions from net realized capital gains (0.05) -- --
- -------------------------------------------------- -------- -------- --------
Net asset value, end of period $ 15.38 $ 13.09 $ 10.22
================================================== ======== ======== ========
Total return(b) 17.91% 28.08% 2.20%
================================================== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $524,622 $186,029 $ 18,410
================================================== ======== ======== ========
Ratio of expenses to average net assets 1.83%(c) 2.11% 2.02%(d)
================================================== ======== ======== ========
Ratio of net investment income (loss) to average
net assets (0.61)%(c) (0.68)% 0.27%(e)
================================================== ======== ======= ========
Portfolio turnover rate 32% 64% 2%
================================================== ======== ======= ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(c) Ratios are annualized and based on average net assets of $302,021,047.
(d) After fee waivers and expense reimbursements. Ratio of expenses to average
net assets before fee waivers and expense reimbursements is 4.03%
(annualized) for 1994.
(e) After fee waivers and expense reimbursements. Ratio of net investment income
(loss) to average net assets before fee waivers and expense reimbursements
is (1.74)% (annualized) for 1994.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, ------------------------
1996 1995 1994
--------- -------- ----------
<S> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 13.02 $ 10.21 $ 10.00
- -------------------------------------------------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.07)(a) (0.14)(a) --
- -------------------------------------------------- -------- -------- --------
Net gains on securities (both realized and
unrealized) 2.35 2.95 0.21
- -------------------------------------------------- -------- -------- --------
Total from investment operations 2.28 2.81 0.21
- -------------------------------------------------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions from net realized capital gains (0.05) -- --
- -------------------------------------------------- -------- -------- --------
Net asset value, end of period $ 15.25 $ 13.02 $ 10.21
================================================== ======== ======== ========
Total return(b) 17.55% 27.52% 2.10%
================================================== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $394,926 $118,199 $ 6,201
================================================== ======== ======== ========
Ratio of expenses to average net assets 2.39%(c) 2.62% 2.54%(d)
================================================== ======== ======== ========
Ratio of net investment income (loss) to average
net assets (1.17)%(c) (1.19)% (0.25)%(e)
================================================== ======== ======== ========
Portfolio turnover rate 32% 64% 2%
================================================== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(c) Ratios are annualized and based on average net assets of $211,037,642.
(d) After fee waivers and expense reimbursements. Ratio of expenses to average
net assets before fee waivers and expense reimbursements is 4.43%,
annualized, for 1994.
(e) After fee waivers and expense reimbursements. Ratio of net investment income
(loss) to average net assets before fee waivers and expense reimbursements
is (2.14)% (annualized) for 1994.
28
<PAGE> 31
Directors &
Officers
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
CHARLES T. BAUER CHARLES T. BAUER 11 Greenway Plaza
Chairman and Chief Executive Officer Chairman Suite 1919
A I M Management Group Inc. Houston, TX 77046
ROBERT H. GRAHAM
BRUCE L. CROCKETT President INVESTMENT ADVISOR
Director, President, and Chief
Executive Officer JOHN J. ARTHUR A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 1919
OWEN DALY II GARY T. CRUM Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
SCOTT G. LUCAS
CARL FRISCHLING Senior Vice President A I M Fund Services, Inc.
Partner P.O. Box 4739
Kramer, Levin, Naftalis, Nessen, CAROL F. RELIHAN Houston, TX 77210-4739
Kamin & Frankel Senior Vice President and Secretary
CUSTODIAN
ROBERT H. GRAHAM DANA R. SUTTON
President and Chief Operating Officer Vice President and Assistant Treasurer State Street Bank & Trust Company
A I M Management Group Inc. 225 Franklin Street
ROBERT G. ALLEY Boston, MA 02110
JOHN F. KROEGER Vice President
Formerly, Consultant COUNSEL TO THE FUND
Wendell & Stockel Associates, Inc. MELVILLE B. COX
Vice President Ballard Spahr
LEWIS F. PENNOCK Andrews & Ingersoll
Attorney JONATHAN C. SCHOOLAR 1735 Market Street
Vice President Philadelphia, PA 19103
IAN W. ROBINSON
Consultant; Formerly Executive P. MICHELLE GRACE COUNSEL TO THE DIRECTORS
Vice President and Assistant Secretary
Chief Financial Officer Kramer, Levin, Naftalis,
Bell Atlantic Management DAVID L. KITE Nessen, Kamin & Frankel
Services, Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
LOUIS S. SKLAR NANCY L. MARTIN
Executive Vice President Assistant Secretary DISTRIBUTOR
Hines Interests
Limited Partnership OFELIA M. MAYO A I M Distributors, Inc.
Assistant Secretary 11 Greenway Plaza
Suite 1919
KATHLEEN J. PFLUEGER Houston, TX 77046
Assistant Secretary
SAMUEL D. SIRKO
Assistant Secretary
STEPHEN I. WINER
Assistant Secretary
MARY J. BENSON
Assistant Treasurer
</TABLE>
<PAGE> 32
<TABLE>
<S> <C>
[PHOTO OF 11 GREENWAY PLAZA] THE AIM FAMILY OF FUNDS(R)
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Blue Chip Fund
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 Management Group has provided AIM Tax-Exempt Cash Fund
leadership in the mutual fund industry
since 1976 and currently manages *AIM Aggressive Growth Fund was closed
approximately $54 billion in assets to new investors on July 18, 1995.
for more than 2.3 million **On September 25, 1995, AIM Government
shareholders, including individual Securities Fund became AIM Intermediate
investors, corporate clients, and Government Fund. For more complete
financial institutions. The AIM Family information about any AIM Fund(s),
of Funds(R) is distributed including sales charges and
nationwide, and AIM today ranks among expenses, ask your financial consultant
the nation's top 15 mutual fund or securities dealer for a free
companies in assets under prospectus(es). Please read the
management, according to Lipper prospectus(es) carefully before you
Analytical Services, Inc. invest or send money.
[AIM LOGO APPEARS HERE] ---------------
BULK RATE
A I M Distributors, Inc. U.S. POSTAGE
11 Greenway Plaza, Suite 1919 PAID
Houston, TX 77046 HOUSTON, TX
Permit No. 1919
---------------
</TABLE>
