<PAGE> 1
[COVER PHOTO APPEARS HERE]
AIM INTERNATIONAL EQUITY FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1996
<PAGE> 2
AIM INTERNATIONAL EQUITY FUND
For shareholders who seek long-term growth of capital. The Fund invests in a
diversified portfolio of international equity securities which its investment
advisor believes will have strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM International Equity 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 5.50% 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 International Fund Index
represents an average of the performance of the 30 largest
international mutual funds.
o The Europe, Australia, and Far East Index (EAFE) is a group of
unmanaged foreign 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 cannot guarantee comparable future results."
As a mutual fund investor, you've seen this disclaimer on
every piece of mail you've ever received about your fund.
You've seen it so often that you probably don't even think
about it or question what it means. But you should.
[PHOTO That sentence about past performance is true now more than
Charles T. ever. These days it bluntly means: "Don't expect the 25%
Bauer, to 35% returns you received last year." Don't automatically
Chairman of expect the 15% to 20% returns of the past decade, either.
the Board of History shows that the average annual return is about 9% to
the Fund, 10%. If you're investing in mutual funds with expectations of
APPEARS HERE] 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.
We are vulnerable to even the hint of impropriety. 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 cannot guarantee comparable 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 International
Equity Fund
was invested in
179 holdings spread
across 54 industries
in 29 countries
as of April 30, 1996.
- -----------------------
- -------------
[COVER PHOTO AIM INTERNATIONAL EQUITY FUND
APPEARS HERE] INVESTS IN TOP WORLD MARKETS
- -------------
MARKET RECAP
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. The top-performing
industries in Asia were insurance, real estate, auto manufacturing and
equipment, airlines, and selected retailers.
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
had diminished. Encouraging economic reports, including an improving retail
sector and declining unemployment levels, prompted a number of analysts to
revise upward their growth projections for 1996.
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. Germany faced
daunting labor pressures and political struggles over its climbing budget
deficit. Nonetheless, continuing restructuring efforts throughout Europe have
bolstered corporate profits and encouraged a surge in
===================================================
[PHOTO OF WORLD GLOBE APPEARS HERE]
A GLOBAL VIEW
===================================================
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
===================================================
mergers and acquisitions in such sectors as telecommunications,
pharmaceuticals, and insurance. Energy and air freight industries were the
leading performers, followed by leisure, home furnishings, advertising, and
broadcasting.
Latin American markets began to recover from the negative influence of
Mexico's financial crisis in 1994. Argentina and Chile were the leading
emerging markets in the first quarter of 1996, based on U.S. dollars.
YOUR FUND'S INVESTMENT STRATEGY
AIM International Equity Fund performed well during the six-month period ended
April 30, 1996, tracking the performance of foreign stocks in general. Total
return for the Fund was 13.44% and 12.99% for Class A and Class B
3
<PAGE> 6
Management's
Discussion & Analysis
===============================================================================
LIPPER RANKINGS
AS OF APRIL 30, 1996.
===============================================================================
RANK VS.
INTERNAT'L
FUNDS
TRACKED PERCENTILE
RANK BY LIPPER RANK
---- ---------- ----------
1 year 14 of 281 5%
3 years 8 of 125 6
- -------------------------------------------------------------------------------
The Fund's Class B shares ranked 21 of 281 international funds, which ranked in
the top 7% over the one-year period ended 4/30/96. Total return performance
rankings are vs. all international funds tracked by Lipper, excluding all sales
charges, and including fees and expenses.
===============================================================================
shares, respectively. Foreign company stocks gained 13.21%, as measured by
Morgan Stanley's unmanaged Europe, Australia, and Far East Index (EAFE). The
Fund's favorable market performance contributed to an increase in net assets
from $706.7 million to $1.15 billion.
The Fund invested in some of the better-performing Asian markets including
Hong Kong and Malaysia, and top European markets including France, the
Netherlands, Spain, and Italy. As of April 30, 1996, the Fund's bottom-up
investment strategy had resulted in 179 holdings spread across 54 industries in
29 countries. Given the strength of the U.S. dollar during the reporting
period, the Fund 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 specific securities in any
particular country.
PACIFIC BASIN AND LATIN AMERICA. The Fund's Japanese holdings--which
comprised 21% of the portfolio--emphasized selected electronics companies
including Yamaha Corp. and Sony Corp., and machinery companies Okuma Corp. and
Komatsu Ltd. Among the Fund's largest holdings were Japan's Honda Motor Company
and Toyota Motor Corp. The Fund increased holdings in real estate companies,
including Cheung Kong Holdings Ltd. and Sun Hung Kai Properties Ltd. in Hong
Kong, and added Singapore's DBS Land Ltd. The Fund's foreign bank holdings
emphasized Thailand banks including Krung Thai Bank PLC, Malaysia's Malayan
Banking Berhad, and Indonesia's PT Bank International Indonesia. The Fund added
to positions in Argentina, Brazil, and Chile.
EUROPE. The Fund increased weightings in telecommunications companies,
including Italy's Telecom Italia Mobile S.p.A., United Kingdom retailer Next
PLC was added, and holdings in Dixons Group PLC were increased. Also new to the
Fund were business services vendor Sodexho SA and electronics maker Schneider
SA from France. Among the Fund's largest holdings were in Switzerland
pharmaceutical companies Ciba-Geigy Ltd. and Sandoz Ltd., and French retailer
Pinault-Printemps-Redoute, S.A.
OUTLOOK FOR THE FUTURE
Japan's financial position has been strengthened by the strong U.S. dollar. If
that country can manage to realize analysts' projections for 3% annual economic
growth, it could possibly
==================================== ===================================
TOP 10 EQUITY HOLDINGS TOP 10 COUNTRIES
As of April 30, 1996 As of April 30, 1996
==================================== ===================================
1. Honda Motor Company 1. Japan 21.21%
2. Ciba-Geigy Ltd. 2. United Kingdom 12.57
3. Canon, Inc. 3. France 8.37
4. Autoliv AB 4. Hong Kong 5.38
5. Pinault-Printemps-Redoute, S.A. 5. Netherlands 4.76
6. Toyota Motor Corp. 6. Spain 4.53
7. Sandoz Ltd. 7. Germany 3.75
8. NTT Data Comm. Systems Co. 8. Switzerland 3.42
9. Gas Natural SDG - E.S.A. 9. Singapore 3.09
10. DDI Corp. 10. Sweden 2.69
==================================== ===================================
4
<PAGE> 7
Long-Term
Performance
emerge from recession later in the year. However, Japan is still troubled by a
weak real estate market and a fragile banking system. Many Southeast Asian
economies continue to grow rapidly. Singapore recently reported that its
economy grew at an annual rate of 10.7% in the first quarter of 1996.
Low interest rates and the benefits of restructuring have begun to bear fruit
in the larger European economies such as the United Kingdom. Germany recently
released encouraging economic reports that suggest the jobless rate has slipped
and that manufacturers orders are rising. Analysts have projected strong
earnings growth to continue for France, Italy, Spain, and Portugal.
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.
===============================================================================
Growth of a $10,000 Investment
===============================================================================
As of April 30, 1996
Past performance cannot guarantee comparable future results.
Lipper
AIM International Equity Fund Europe, Australia, and International
Class A Shares Far East Index Fund Index
----------------------------- ---------------------- -------------
4/92 $9,454 $10,000 $10,000
4/93 11,044 12,267 11,158
4/94 13,993 14,346 13,809
4/95 14,146 15,190 13,647
4/96 17,484 16,973 16,011
- -------------------------------------------------------------------------------
Sources: Lipper Analytical Services and Towers Data Systems HYPO(R)
===============================================================================
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.
- ------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of March 31, 1996
(the most recent calendar quarter)
CLASS A SHARES
1 YEAR 16.69%*
INCEPTION
(4/7/92) 14.16
*23.48% EXCLUDING SALES CHARGE
CLASS B SHARES
1 YEAR 17.51%*
INCEPTION
(9/15/94) 6.99
*22.51% EXCLUDING SALES CHARGE
- ------------------------------------------
5
<PAGE> 8
Investor
Awareness
- -------------------------
Your financial consult-
ant can assist you
in developing
an asset allocation
strategy and selecting
the appropriate
investments to help you
meet your long-term
investment goals.
- -------------------------
ASSET ALLOCATION HELPS YOU MANAGE YOUR
INVESTMENTS IN CHANGING MARKETS
Every mutual fund investor would like to invest in a market that only goes up--a
tide that floats all ships. The truth is, markets also decline. But market
changes do not affect all investments the same way--some investments may benefit
from a market trend when others do not.
And market changes are not the only factors an investor must manage. There
are a number of important considerations with every investment including
investment risk, and investment risk takes many forms:
o MARKET RISK. The prices of some investments will fluctuate according
to changes in the market.
o INTEREST RATE RISK. The value of some investments, such as
fixed-income securities, will rise and fall as interest rates change.
o REINVESTMENT RISK. When interest rates fall, investors face the
possibility that investment income cannot be reinvested at higher
rates previously available.
o INFLATION RISK. Inflation can cause the value of some investments to
erode as the cost of living increases.
o CURRENCY RATE RISK. Investments valued in U.S. dollars will rise and
fall according to the dollar's value against other world currencies.
To manage these changing conditions, investors have learned to diversify
their assets across a wide variety of investments. For most investors, mutual
funds offer convenient and affordable methods to diversify their assets. For
as little as $500, an investor has access to a portfolio of hundreds of
professionally selected securities.
When you invest in more than one fund, you increase the level of
diversification. You also gain another important benefit. Since mutual funds
are managed according to specific investment objectives, such as growth or
income, you can invest in mutual funds with different investment objectives to
create a personalized investment plan which suits your unique financial
objectives. This investment strategy is called asset allocation.
Mutual fund investors tend to seek growth, or current income, or some
combination of both. Generally, investors who choose to assume more investment
risk get the potential for a higher return. With asset allocation, you can
fine-tune your investment plan to be more conservative, or more aggressive,
depending on your personal financial goals and risk tolerance.
Your financial consultant can assist you in developing an asset allocation
strategy and selecting the appropriate investments to help you meet your
long-term investment goals.
6
<PAGE> 9
THE AIM FAMILY OF FUNDS(R)
AIM offers a wide variety of funds suitable for many asset allocation
strategies:
<TABLE>
<CAPTION>
<S> <C> <C>
RELATIVELY
AGGRESSIVE OBJECTIVE FUND
- ------------------------------------------------------------------------------------------------------------------------------
Aggressive Growth AIM Global Aggressive Growth Fund
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Capital Development Fund
- ------------------------------------------------------------------------------------------------------------------------------
Growth AIM Growth Fund
AIM International Equity Fund
AIM Global Growth Fund
AIM Blue Chip Fund
AIM Weingarten Fund
AIM Value Fund
- ------------------------------------------------------------------------------------------------------------------------------
Growth and Income AIM Charter Fund
AIM Balanced 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 Conn.
AIM Tax-Free Intermediate Shares
- ------------------------------------------------------------------------------------------------------------------------------
Current Income and High Degree of Safety AIM Intermediate Government Fund**
- ------------------------------------------------------------------------------------------------------------------------------
High Degree of Safety and Current Income AIM Limited Maturity Treasury Shares
- ------------------------------------------------------------------------------------------------------------------------------
Stability, Liquidity and Current Income AIM Money Market Fund
- ------------------------------------------------------------------------------------------------------------------------------
Stability, Liquidity and Current Tax-Free Income AIM Tax-Exempt Cash Fund
- ------------------------------------------------------------------------------------------------------------------------------
RELATIVELY
CONSERVATIVE *AIM Aggressive Growth Fund closed to new investors on July 18, 1995. **On September 25, 1995, AIM
Government Securities Fund was renamed AIM Intermediate Government Fund.
For more complete information about any of AIM's Funds, including sales charges and expenses, ask
your financial consultant for a free prospectus(es). Please read the prospectus(es) carefully before
you invest or send money.
An investment in an AIM Fund is not insured or guaranteed by the U.S. government, is not an
obligation of or insured by any bank or FDIC and is subject to risks disclosed in the Funds'
prospectus.
</TABLE>
7
<PAGE> 10
Financials
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
FOREIGN STOCKS & OTHER EQUITY INTERESTS-92.83%
ARGENTINA-1.59%
205,700 Banco de Galicia Y Buenos Aires S.A. de C.V.-ADR (Banking) $ 4,833,950
- ---------------------------------------------------------------------------------------------
567,000 Perez Companc S.A.-Class B (Oil & Gas-Services)(a) 3,527,093
- ---------------------------------------------------------------------------------------------
101,000 Telefonica de Argentina S.A.-ADR (Telephone) 2,954,250
- ---------------------------------------------------------------------------------------------
318,300 YPF Sociedad Anonima-ADR (Oil & Gas-Services) 6,962,813
- ---------------------------------------------------------------------------------------------
18,278,106
- ---------------------------------------------------------------------------------------------
AUSTRALIA-2.46%
340,900 News Corp. Ltd. (The)-ADR (Publishing) 6,945,838
- ---------------------------------------------------------------------------------------------
1,232,221 QBE Insurance Group, Ltd. (Insurance-Broker) 6,466,014
- ---------------------------------------------------------------------------------------------
2,694,400 QNI Ltd. (Metals-Miscellaneous) 6,667,211
- ---------------------------------------------------------------------------------------------
1,123,100 Western Mining Corp. Holding Ltd. (Metals-Miscellaneous) 8,187,249
- ---------------------------------------------------------------------------------------------
28,266,312
- ---------------------------------------------------------------------------------------------
AUSTRIA-0.63%
29,650 Oesterreichisch Elektrizitatswirtschafts AG
(Verbundgesellschaft)-Class A
(Electric Services) 2,096,020
- ---------------------------------------------------------------------------------------------
52,000 OMV AG (Oil & Gas-Exploration & Production) 5,168,602
- ---------------------------------------------------------------------------------------------
7,264,622
- ---------------------------------------------------------------------------------------------
BELGIUM-0.85%
14,600 Colruyt S.A. (Retail-Food & Drug) 4,549,746
- ---------------------------------------------------------------------------------------------
3,100 UCB S.A. (Medical-Drugs) 5,219,187
- ---------------------------------------------------------------------------------------------
9,768,933
- ---------------------------------------------------------------------------------------------
BRAZIL-0.70%
147,900 Telecomunicacoes Brasileiras S/A-Telebras-ADR
(Telecommunications) 8,005,088
- ---------------------------------------------------------------------------------------------
CANADA-1.95%
536,000 Bombardier, Inc.-Class B (Transportation-Miscellaneous) 7,539,038
- ---------------------------------------------------------------------------------------------
94,000 Newbridge Networks Corp.(a) (Computer Networking) 6,051,250
- ---------------------------------------------------------------------------------------------
99,000 Northern Telecom Ltd. (Telecommunications) 5,098,500
- ---------------------------------------------------------------------------------------------
285,450 TELUS Corp. (Telecommunications) 3,752,887
- ---------------------------------------------------------------------------------------------
22,441,675
- ---------------------------------------------------------------------------------------------
CHILE-0.49%
62,100 Compania de Telefonos de Chile S.A.-ADR (Telephone) 5,666,625
- ---------------------------------------------------------------------------------------------
DENMARK-1.05%
79,300 Danisco A/S (Food/Processing) 3,869,604
- ---------------------------------------------------------------------------------------------
41,200 Novo Nordisk A/S-Class B (Medical-Drugs) 5,354,185
- ---------------------------------------------------------------------------------------------
23,000 Sophus Berendsen A/S-Class B (Retail-Stores) 2,821,416
- ---------------------------------------------------------------------------------------------
12,045,205
- ---------------------------------------------------------------------------------------------
FRANCE-8.37%
9,500 Carrefour Supermarche (Retail-Stores) 7,423,512
- ---------------------------------------------------------------------------------------------
42,500 Castorama Dubois (Retail-Stores) 8,134,011
- ---------------------------------------------------------------------------------------------
22,400 Cetelem (Finance-Consumer Credit) 4,807,276
- ---------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
France-continued
58,000 Christian Dior S.A. (Consumer Non-Durables) $ 7,733,333
- ---------------------------------------------------------------------------------------------
59,000 Compagnie Francaise d'Etudes et de Construction Technip
(Engineering & Construction) 5,308,002
- ---------------------------------------------------------------------------------------------
24,000 Ecco S.A. (Business Services) 5,392,163
- ---------------------------------------------------------------------------------------------
24,940 Essilor International-Compagnie Generale d'Optique
(Medical Instruments/Products) 6,312,824
- ---------------------------------------------------------------------------------------------
9,700 LVMH Moet Hennessy Louis Vuitton (Beverages-Alcoholic) 2,481,548
- ---------------------------------------------------------------------------------------------
34,800 Pinault-Printemps-Redoute, S.A. (Retail-Food & Drug) 10,566,270
- ---------------------------------------------------------------------------------------------
23,200 Rexel S.A. (Transportation-Miscellaneous) 5,562,612
- ---------------------------------------------------------------------------------------------
24,000 Roussel-Uclaf (Medical-Drugs) 5,656,894
- ---------------------------------------------------------------------------------------------
112,000 Schneider S.A. (Electronic Components/Miscellaneous) 5,219,081
- ---------------------------------------------------------------------------------------------
130,000 SGS-Thomson Microelectronics N.V. New York Shares-ADR(a)
(Electronic Components/Miscellaneous) 6,110,000
- ---------------------------------------------------------------------------------------------
20,000 Sodexho S.A. (Business Services) 7,930,334
- ---------------------------------------------------------------------------------------------
111,000 Total S.A.-Class B (Oil & Gas-Exploration & Production) 7,533,179
- ---------------------------------------------------------------------------------------------
96,171,039
- ---------------------------------------------------------------------------------------------
GERMANY-3.75%
76,600 Adidas A.G.(a) (Shoes & Related Apparel) 5,829,185
- ---------------------------------------------------------------------------------------------
285,000 Continental A.G. (Automobile/Truck Parts & Tires) 4,924,064
- ---------------------------------------------------------------------------------------------
6,300 Gehe A.G. (Medical-Drugs) 3,637,860
- ---------------------------------------------------------------------------------------------
14,300 Hoechst A.G. (Chemicals) 4,816,173
- ---------------------------------------------------------------------------------------------
42,000 SAP A.G.-Preferred (Computer Software/Services) 5,577,503
- ---------------------------------------------------------------------------------------------
50,500 SGL Carbon A.G. (Metals-Miscellaneous) 4,766,641
- ---------------------------------------------------------------------------------------------
10,800 Siemens A.G. (Electric Services) 5,913,933
- ---------------------------------------------------------------------------------------------
155,000 Veba A.G. (Electric Services) 7,704,945
- ---------------------------------------------------------------------------------------------
43,170,304
- ---------------------------------------------------------------------------------------------
HONG KONG-5.38%
948,000 Cheung Kong Holdings Ltd. (Real Estate) 6,770,991
- ---------------------------------------------------------------------------------------------
8,028,000 Cosco Pacific Ltd. (Transportation-Miscellaneous) 5,656,079
- ---------------------------------------------------------------------------------------------
5,211,908 First Pacific Co. Ltd. (Conglomerates) 6,939,778
- ---------------------------------------------------------------------------------------------
679,100 Hang Seng Bank Ltd. (Banking) 6,891,520
- ---------------------------------------------------------------------------------------------
4,428,000 Hong Kong & China Gas Company Ltd. (Electric Power) 7,269,808
- ---------------------------------------------------------------------------------------------
532,000 HSBC Holdings PLC (Banking) 7,943,378
- ---------------------------------------------------------------------------------------------
686,000 Hutchison Whampoa Ltd. (Conglomerates) 4,256,738
- ---------------------------------------------------------------------------------------------
2,554,000 New World Infrastructure(a) (Building Materials) 5,678,857
- ---------------------------------------------------------------------------------------------
6,000,000 Shanghai Petrochemical Co., Ltd. (Chemicals) 1,783,983
- ---------------------------------------------------------------------------------------------
723,100 Sun Hung Kai Properties Ltd. (Real Estate) 6,894,011
- ---------------------------------------------------------------------------------------------
979,000 Varitronix International (Electronic
Components/Miscellaneous) 1,797,143
- ---------------------------------------------------------------------------------------------
61,882,286
- ---------------------------------------------------------------------------------------------
INDIA-0.14%
95,000 Reliance Industries Ltd.(a) (Chemicals) 1,567,500
- ---------------------------------------------------------------------------------------------
INDONESIA-0.76%
1,770,000 PT Bank International Indonesia (Banking) 8,703,985
- ---------------------------------------------------------------------------------------------
IRELAND-0.46%
79,400 Elan Corp. PLC-ADR(a) (Medical-Drugs) 5,250,325
- ---------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
ISRAEL-0.50%
127,000 Teva Pharmaceutical Industries Ltd.-ADR (Medical-Drugs) $ 5,699,125
- ---------------------------------------------------------------------------------------------
ITALY-1.94%
670,000 Ente Nazionale Idrocarburi S.p.A.(a) (Oil & Gas-Exploration &
Production) 2,890,608
- ---------------------------------------------------------------------------------------------
533,450 Istituto Mobiliare Italiano S.p.A. (Banking) 4,229,009
- ---------------------------------------------------------------------------------------------
2,283,000 Telecom Italia Mobile S.p.A.(a) (Telecommunications) 5,007,399
- ---------------------------------------------------------------------------------------------
5,000,000 Telecom Italia S.p.A. (Telecommunications) 10,166,453
- ---------------------------------------------------------------------------------------------
22,293,469
- ---------------------------------------------------------------------------------------------
JAPAN-21.21%
55,770 Advantest Corp. (Electronic Components/Miscellaneous) 2,767,041
- ---------------------------------------------------------------------------------------------
367,700 Bank of Tokyo-Mitsubishi (Banking-Money Center) 8,506,611
- ---------------------------------------------------------------------------------------------
496,000 Bridgestone Corp. (Automobile/Truck Parts & Tires) 9,198,795
- ---------------------------------------------------------------------------------------------
567,000 Canon, Inc. (Office Products) 11,274,413
- ---------------------------------------------------------------------------------------------
83,600 Daiichi Corp. (Electronic Components/Miscellaneous) 2,117,872
- ---------------------------------------------------------------------------------------------
1,208 DDI Corp. (Telecommunications) 10,381,836
- ---------------------------------------------------------------------------------------------
536,000 Honda Motor Co. (Automobile-Manufacturers) 12,246,451
- ---------------------------------------------------------------------------------------------
153,000 Hoya Corp. (Electronic Components/Miscellaneous) 5,411,787
- ---------------------------------------------------------------------------------------------
304,000 Isetan (Retail-Stores) 4,504,565
- ---------------------------------------------------------------------------------------------
124,000 Jusco Co. (Retail-Stores) 3,840,734
- ---------------------------------------------------------------------------------------------
820,000 Kajima Corp. (Engineering & Construction) 9,250,036
- ---------------------------------------------------------------------------------------------
583,000 Komatsu Ltd. (Machinery-Heavy) 5,629,081
- ---------------------------------------------------------------------------------------------
26,400 Nemic-Lambda K.K. (Electronic Components/Miscellaneous) 1,183,653
- ---------------------------------------------------------------------------------------------
46,000 Nichiei Co., Ltd. (Business Services) 3,078,247
- ---------------------------------------------------------------------------------------------
346,000 Nikon Corp. (Conglomerates) 4,663,831
- ---------------------------------------------------------------------------------------------
2,664,000 Nippon Steel Co. (Steel) 9,626,614
- ---------------------------------------------------------------------------------------------
26,530 Nippon Television Network (Advertising/Broadcasting) 8,344,123
- ---------------------------------------------------------------------------------------------
437,000 Nippon Zeon Co., Ltd. (Chemicals) 2,790,650
- ---------------------------------------------------------------------------------------------
3,107,000 NKK Corp.(a) (Steel) 9,742,326
- ---------------------------------------------------------------------------------------------
345,000 Nomura Securities Co., Ltd. (Finance-Asset Management) 7,519,717
- ---------------------------------------------------------------------------------------------
1,015,000 NSK Ltd. (Metals-Miscellaneous) 8,199,178
- ---------------------------------------------------------------------------------------------
2,980 NTT Data Communications Systems Co. (Computer
Software/Services) 10,426,653
- ---------------------------------------------------------------------------------------------
871,000 Okuma Corp.(a) (Machine Tools) 9,575,546
- ---------------------------------------------------------------------------------------------
256,000 Omron Corp. (Electronic Components/Miscellaneous) 5,775,632
- ---------------------------------------------------------------------------------------------
5,800 Plenus Co., Ltd. (Restaurants) 242,856
- ---------------------------------------------------------------------------------------------
664,000 Ricoh Co., Ltd. (Office Products) 7,807,657
- ---------------------------------------------------------------------------------------------
142,000 Rohm Co., Ltd. (Electronic Components/Miscellaneous) 9,040,868
- ---------------------------------------------------------------------------------------------
430,000 Shizuoka Bank (Banking) 5,837,197
- ---------------------------------------------------------------------------------------------
100,000 SMC (Machinery-Miscellaneous) 7,791,214
- ---------------------------------------------------------------------------------------------
147,000 Sony Corp. (Electronic Components/Miscellaneous) 9,555,949
- ---------------------------------------------------------------------------------------------
100,000 TDK Corp. (Electronic Components/Miscellaneous) 5,726,304
- ---------------------------------------------------------------------------------------------
71,000 Tokyo Electron Ltd. (Electronic Components/Miscellaneous) 2,640,314
- ---------------------------------------------------------------------------------------------
459,000 Toyota Motor Corp. (Automobile-Manufactures) 10,487,166
- ---------------------------------------------------------------------------------------------
566,000 Yamaha Corp. (Electronic Components/Miscellaneous) 10,172,363
- ---------------------------------------------------------------------------------------------
449,000 Yamatake-Honeywell (Airlines) 8,498,829
- ---------------------------------------------------------------------------------------------
243,856,109
- ---------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
MALAYSIA-2.25%
592,000 Commerce Asset Holdings Berhad (Finance-Asset Management) $ 4,036,418
- ---------------------------------------------------------------------------------------------
618,000 Edaran Otomobil Nasional Berhad (Retail-Stores) 5,279,509
- ---------------------------------------------------------------------------------------------
385,000 Genting Berhad (Leisure & Recreation) 3,458,870
- ---------------------------------------------------------------------------------------------
679,000 Malayan Banking Berhad (Banking) 6,617,615
- ---------------------------------------------------------------------------------------------
1,437,000 Technology Resources Industries Berhad(a) (Conglomerates) 4,898,929
- ---------------------------------------------------------------------------------------------
405,000 YTL Corp. Berhad, expiring 1997-Warrants (Engineering &
Construction) 1,648,718
- ---------------------------------------------------------------------------------------------
25,940,059
- ---------------------------------------------------------------------------------------------
MEXICO-1.33%
6,076,000 Grupo Industrial Maseca S.A. de CV-Class B (Food/Processing) 5,936,980
- ---------------------------------------------------------------------------------------------
32,000 Kimberly-Clark de Mexico S.A. de C.V. (Paper & Forest
Products) 585,734
- ---------------------------------------------------------------------------------------------
199,100 Panamerican Beverages, Inc. (Beverages-Soft Drinks) 8,735,513
- ---------------------------------------------------------------------------------------------
15,258,227
- ---------------------------------------------------------------------------------------------
NETHERLANDS-4.76%
49,500 Akzo Nobel (Conglomerates) 5,748,760
- ---------------------------------------------------------------------------------------------
383,000 Elsevier N.V. (Publishing) 5,766,793
- ---------------------------------------------------------------------------------------------
27,050 Heineken N.V. (Beverages-Alcoholic) 5,661,004
- ---------------------------------------------------------------------------------------------
142,000 Koninklijke Ahold N.V. (Retail-Food & Drug) 7,002,626
- ---------------------------------------------------------------------------------------------
53,100 Nutricia Verenigde Bedrijven N.V. (Food/Processing) 5,674,123
- ---------------------------------------------------------------------------------------------
60,000 Oce-Van Der Grinten N.V.-V (Office Automation) 5,515,028
- ---------------------------------------------------------------------------------------------
52,000 Royal Dutch Petroleum Co. (Oil & Gas-Services) 7,407,762
- ---------------------------------------------------------------------------------------------
332,000 Ver Ned Uitgevuer Bezit N.V. (Publishing) 5,580,158
- ---------------------------------------------------------------------------------------------
58,000 Wolters Kluwer N.V. (Publishing) 6,339,889
- ---------------------------------------------------------------------------------------------
54,696,143
- ---------------------------------------------------------------------------------------------
NORWAY-0.65%
86,000 Norsk Hydro A.S. (Chemicals) 3,927,180
- ---------------------------------------------------------------------------------------------
750,000 UNI Storebrand A.S.(a) (Insurance-Life & Health) 3,573,277
- ---------------------------------------------------------------------------------------------
7,500,457
- ---------------------------------------------------------------------------------------------
PHILIPPINES-2.21%
7,807,000 C & P Homes, Inc.(a) (Homebuilding) 6,712,170
- ---------------------------------------------------------------------------------------------
8,495,000 Filinvest Land Inc.(a) (Real Estate) 4,382,212
- ---------------------------------------------------------------------------------------------
28,997,000 Metro Pacific Corp. (Conglomerates) 6,869,752
- ---------------------------------------------------------------------------------------------
211,600 Metropolitan Banks & Trust Co. (Banking) 5,700,344
- ---------------------------------------------------------------------------------------------
12,144,000 Southeast Asia Cement Holdings, Inc.(a) (Building Materials) 1,786,565
- ---------------------------------------------------------------------------------------------
25,451,043
- ---------------------------------------------------------------------------------------------
PORTUGAL-0.42%
220,000 Portugal Telecom S.A.(a) (Telecommunications) 4,785,414
- ---------------------------------------------------------------------------------------------
SINGAPORE-3.09%
528,000 Cerebos Pacific Ltd. (Food/Processing) 4,769,953
- ---------------------------------------------------------------------------------------------
828,000 City Developments Ltd. (Real Estate) 7,244,558
- ---------------------------------------------------------------------------------------------
2,059,000 DBS Land Ltd. (Real Estate) 8,348,485
- ---------------------------------------------------------------------------------------------
1,269,000 Far East Levingston Shipbuilding Ltd.
(Transportation-Miscellaneous) 7,402,048
- ---------------------------------------------------------------------------------------------
996,000 Overseas Union Bank Ltd. (Banking) 7,722,578
- ---------------------------------------------------------------------------------------------
35,487,622
- ---------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
SOUTH AFRICA-0.38%
421,700 Sasol Ltd. (Oil & Gas-Exploration & Production) $ 4,392,708
- ---------------------------------------------------------------------------------------------
SPAIN-4.53%
228,000 Centros Comerciales Pryca, S.A. (Retail-Food & Drug) 5,260,849
- ---------------------------------------------------------------------------------------------
95,000 Corporacion Mapfre Compania Internacional De Reaseguros S.A.
(Insurance-Broker) 4,779,874
- ---------------------------------------------------------------------------------------------
139,000 Empresa Nacional de Electricidad, S.A. (Telephone) 8,731,211
- ---------------------------------------------------------------------------------------------
57,200 Gas Natural SDG-E.S.A. (Natural Gas Pipeline) 10,396,730
- ---------------------------------------------------------------------------------------------
745,000 Iberdrola S.A. (Electric Power) 7,291,863
- ---------------------------------------------------------------------------------------------
200,000 Repsol S.A. (Oil & Gas-Services) 7,334,906
- ---------------------------------------------------------------------------------------------
182,000 Tabacalera S.A. (Tobacco) 8,298,742
- ---------------------------------------------------------------------------------------------
52,094,175
- ---------------------------------------------------------------------------------------------
SWEDEN-2.69%
129,000 Astra AB-Class A (Medical-Drugs) 5,697,107
- ---------------------------------------------------------------------------------------------
200,000 Autoliv AB (Automobile/Trucks Parts & Tires) 10,911,879
- ---------------------------------------------------------------------------------------------
89,000 Securitas A.B. (Security & Safety Services) 5,118,261
- ---------------------------------------------------------------------------------------------
160,000 Skandia Forsakrings AB (Insurance-Multi-Line Property) 3,656,954
- ---------------------------------------------------------------------------------------------
269,280 Telefonakiebolaget L.M. Ericsson-ADR (Telecommunications) 5,486,580
- ---------------------------------------------------------------------------------------------
30,870,781
- ---------------------------------------------------------------------------------------------
SWITZERLAND-3.42%
25,000 ADIA SA (Business Services) 5,476,804
- ---------------------------------------------------------------------------------------------
10,000 Ciba-Geigy Ltd. (Chemicals) 11,605,992
- ---------------------------------------------------------------------------------------------
280 Roche Holdings A.G. (Medical-Drugs) 2,202,159
- ---------------------------------------------------------------------------------------------
9,600 Sandoz A.G. (Chemicals) 10,484,536
- ---------------------------------------------------------------------------------------------
4,250 Schindler Holding A.G. (Engineering & Construction) 4,655,284
- ---------------------------------------------------------------------------------------------
5,000 Swissair A.G.(a) (Airlines) 4,941,205
- ---------------------------------------------------------------------------------------------
39,365,980
- ---------------------------------------------------------------------------------------------
THAILAND-2.30%
526,100 Bank of Ayudhya Ltd. (Banking) 3,105,187
- ---------------------------------------------------------------------------------------------
1,502,920 Krung Thai Bank PLC (Banking) 7,382,284
- ---------------------------------------------------------------------------------------------
276,500 Siam Commercial Bank Public Co. Ltd. (Banking) 4,074,472
- ---------------------------------------------------------------------------------------------
357,600 Thai Farmers Bank PLC (Banking) 4,107,984
- ---------------------------------------------------------------------------------------------
887,000 Total Access Communication Public Co. Ltd.
(Telecommunications) 7,805,600
- ---------------------------------------------------------------------------------------------
26,475,527
- ---------------------------------------------------------------------------------------------
UNITED KINGDOM-12.57%
700,000 Argos PLC (Retail-Stores) 6,833,509
- ---------------------------------------------------------------------------------------------
500,000 Bank of Ireland (Banking) 3,612,826
- ---------------------------------------------------------------------------------------------
650,000 Bass PLC (Beverages-Alcoholic) 7,666,341
- ---------------------------------------------------------------------------------------------
1,065,000 B.A.T. Industries PLC (Tobacco) 8,056,036
- ---------------------------------------------------------------------------------------------
330,000 BOC Group PLC (Chemicals-Specialty) 4,590,095
- ---------------------------------------------------------------------------------------------
840,000 British Petroleum Co. PLC (Oil & Gas-Exploration &
Production) 7,580,611
- ---------------------------------------------------------------------------------------------
3,140,000 Burton Group PLC (Retail-Stores) 7,397,411
- ---------------------------------------------------------------------------------------------
970,000 Compass Group PLC (Food/Processing) 7,987,205
- ---------------------------------------------------------------------------------------------
1,150,000 Cookson Group PLC (Conglomerates) 5,392,518
- ---------------------------------------------------------------------------------------------
980,000 Dixons Group PLC (Retail-Stores) 7,272,919
- ---------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
United Kingdom-continued
530,000 GKN PLC (Automobile/Truck Parts & Tires) $ 7,838,702
- ---------------------------------------------------------------------------------------------
590,000 Granada Group PLC (Leisure & Recreation) 7,313,939
- ---------------------------------------------------------------------------------------------
1,490,000 Medeva PLC (Medical-Drugs) 5,753,199
- ---------------------------------------------------------------------------------------------
1,010,000 Next PLC (Retail-Stores) 8,058,106
- ---------------------------------------------------------------------------------------------
285,800 Orange PLC-ADR(a) (Telecommunications) 5,144,400
- ---------------------------------------------------------------------------------------------
360,000 Premier Farnell PLC (Electronic Components/Miscellaneous) 3,988,559
- ---------------------------------------------------------------------------------------------
402,181 Provident Financial PLC (Finance-Consumer Credit) 5,812,038
- ---------------------------------------------------------------------------------------------
975,000 Rentokil Group PLC (Business Services) 5,636,008
- ---------------------------------------------------------------------------------------------
370,000 Siebe PLC (Electronic Components/Miscellaneous) 4,784,435
- ---------------------------------------------------------------------------------------------
256,000 Smiths Industries PLC (Electronics/Defense) 2,724,552
- ---------------------------------------------------------------------------------------------
645,000 Standard Chartered PLC (Banking) 6,039,289
- ---------------------------------------------------------------------------------------------
259,100 Thorn EMI PLC (Leisure & Recreation) 7,186,388
- ---------------------------------------------------------------------------------------------
2,575,000 WPP Group (Advertising/Broadcasting) 7,888,191
- ---------------------------------------------------------------------------------------------
144,557,277
- ---------------------------------------------------------------------------------------------
Total Foreign Stocks & Other Equity Interests 1,067,206,121
- ---------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT CONVERTIBLE BONDS-0.59%
$ 4,780,000 MBL International Finance Bermuda, Conv. Yankee Bonds, 3.00%,
11/30/02 5,556,750
- ---------------------------------------------------------------------------------------------
1,212,000 Metro Pacific Corp., Yankee Bonds, 2.50%, 04/11/03 (Consumer
Non-Durables)
(Acquired 04/15/96; cost $1,239,270)(b) 1,265,025
- ---------------------------------------------------------------------------------------------
Total Convertible Bonds 6,821,775
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT-1.56%(c)
17,897,656 Daiwa Securities America Inc., 5.34%, 05/01/96(d) 17,897,656
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-94.98% 1,091,925,552
- ---------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-5.02% 57,757,330
- ---------------------------------------------------------------------------------------------
NET ASSETS-100.00% $1,149,682,882
=============================================================================================
</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 $1,265,025.
(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.
13
<PAGE> 16
Financials
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $904,887,736) $1,091,925,552
- -----------------------------------------------------------------------------------------
Foreign currencies, at market value (cost $51,987,707) 51,942,915
- -----------------------------------------------------------------------------------------
Receivables for:
Investments sold 27,457,385
- -----------------------------------------------------------------------------------------
Capital stock sold 10,018,831
- -----------------------------------------------------------------------------------------
Dividends and interest 4,250,080
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 13,236
- -----------------------------------------------------------------------------------------
Other assets 115,720
- -----------------------------------------------------------------------------------------
Total assets 1,185,723,719
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 33,033,726
- -----------------------------------------------------------------------------------------
Capital stock reacquired 984,502
- -----------------------------------------------------------------------------------------
Deferred compensation 13,236
- -----------------------------------------------------------------------------------------
Accrued advisory fees 831,068
- -----------------------------------------------------------------------------------------
Accrued administrative services fees 7,007
- -----------------------------------------------------------------------------------------
Accrued directors' fees 3,195
- -----------------------------------------------------------------------------------------
Accrued distribution fees 534,713
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 309,392
- -----------------------------------------------------------------------------------------
Accrued operating expenses 323,998
- -----------------------------------------------------------------------------------------
Total liabilities 36,040,837
- -----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $1,149,682,882
=========================================================================================
NET ASSETS:
Class A $ 935,340,868
=========================================================================================
Class B $ 214,342,014
=========================================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- -----------------------------------------------------------------------------------------
Outstanding 62,119,975
=========================================================================================
Class B:
Authorized 200,000,000
- -----------------------------------------------------------------------------------------
Outstanding 14,400,207
=========================================================================================
Class A:
Net asset value and redemption price per share $ 15.06
=========================================================================================
Offering price per share:
(Net asset value of $15.06 divided by 94.50%) $ 15.94
=========================================================================================
Class B:
Net asset value and offering price per share $ 14.88
=========================================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE> 17
Financials
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $970,287 foreign withholding tax) $ 6,153,698
- -----------------------------------------------------------------------------------------
Interest 1,510,342
- -----------------------------------------------------------------------------------------
Total investment income 7,664,040
- -----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 4,180,652
- -----------------------------------------------------------------------------------------
Administrative services fees 45,886
- -----------------------------------------------------------------------------------------
Directors' fees 5,415
- -----------------------------------------------------------------------------------------
Distribution fees-Class A 1,146,857
- -----------------------------------------------------------------------------------------
Distribution fees-Class B 577,833
- -----------------------------------------------------------------------------------------
Custodian fees 351,078
- -----------------------------------------------------------------------------------------
Transfer agent fees-Class A 899,827
- -----------------------------------------------------------------------------------------
Transfer agent fees-Class B 168,171
- -----------------------------------------------------------------------------------------
Other 266,312
- -----------------------------------------------------------------------------------------
Total expenses 7,642,031
- -----------------------------------------------------------------------------------------
Less advisory fees waived (96,061)
- -----------------------------------------------------------------------------------------
Net expenses 7,545,970
- -----------------------------------------------------------------------------------------
Net investment income 118,070
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) on sales of:
Investment securities 24,418,177
- -----------------------------------------------------------------------------------------
Foreign currencies (191,807)
- -----------------------------------------------------------------------------------------
24,226,370
- -----------------------------------------------------------------------------------------
Unrealized appreciation of:
Investment securities 90,903,191
- -----------------------------------------------------------------------------------------
Foreign currencies 259,983
- -----------------------------------------------------------------------------------------
91,163,174
- -----------------------------------------------------------------------------------------
Net gain on investment securities and foreign currencies 115,389,544
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $115,507,614
=========================================================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
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 $ 118,070 $ 468,936
- ----------------------------------------------------------------------------------------------
Net realized gain on sales of investment securities and
foreign currencies 24,226,370 19,301,818
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
foreign currencies 91,163,174 8,812,756
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 115,507,614 28,583,510
- ----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income:
Class A (295,950) (2,166,421)
- ----------------------------------------------------------------------------------------------
Class B -- (19,050)
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized capital gains:
Class A (18,468,237) (23,092,160)
- ----------------------------------------------------------------------------------------------
Class B (1,875,142) (287,957)
- ----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 199,654,186 (54,671,896)
- ----------------------------------------------------------------------------------------------
Class B 148,432,942 45,389,211
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 442,955,413 (6,264,763)
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 706,727,469 712,992,232
- ----------------------------------------------------------------------------------------------
End of period $1,149,682,882 $ 706,727,469
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 938,973,414 $ 590,886,286
- ----------------------------------------------------------------------------------------------
Undistributed net investment income 59,291 237,171
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain on sales of investment
securities and foreign currencies 23,387,985 19,504,994
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 187,262,192 96,099,018
- ----------------------------------------------------------------------------------------------
$1,149,682,882 $ 706,727,469
==============================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
Financials
NOTES TO FINANCIAL STATEMENTS
April 30, 1996
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM International Equity Fund (the "Fund") is a series 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 International Equity Fund, AIM Global Aggressive Growth
Fund, AIM Global Growth Fund and AIM Global Income 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 long-term growth of capital. The
Fund seeks to achieve its objective by investing in a diversified portfolio of
international equity securities, the issuers of which are considered by AIM to
have strong earnings momentum.
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 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.
17
<PAGE> 20
Financials
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES (continued)
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. Organizational Costs -- Organizational costs of $23,098 were borne by the
Fund. Such costs are amortized to operations over sixty months. Prior to full
amortization of the organizational costs, the proceeds of any redemption of
the shares related to the Fund's initial formation (10,000 Class A shares)
will be reduced by a pro rata share of such unamortized organizational
expenses. The pro rata share of organizational expenses will be calculated by
dividing the number of initial shares redeemed by the remaining number of
initial shares outstanding at the time of the redemption and multiplying the
result by the unamortized organizational expenses.
G. Expenses -- Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to both
classes, e.g. advisory fees, are allocated between them.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.95% of
the first $1 billion of the Fund's average daily net assets, plus 0.90% of the
Fund's average daily net assets in excess of $1 billion. AIM is currently
voluntarily waiving a portion of its advisory fees paid by the Fund to AIM to
the extent necessary to reduce the fees paid by the Fund at net asset levels
higher than those currently incorporated in the present advisory fee schedule.
AIM will receive a fee calculated at the annual rate of 0.95% of the first $500
million of the Fund's average daily net assets, plus 0.90% of the Fund's average
daily net assets in excess of $500 million to and including $1 billion, plus
0.85% of the Fund's average daily net assets in excess of $1 billion. The waiver
of fees is voluntary and the Board of Directors of the Company would be advised
of any decision by AIM to discontinue the waiver. During the six months ended
April 30, 1996, AIM waived fees of $96,061. Under the terms of the 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 certain administrative costs incurred in providing
accounting services to the Fund. During the six months ended April 30, 1996, AIM
was reimbursed $45,886 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing
transfer agency services to the Fund. During the six months ended April 30,
1996, the Fund paid AFS $532,945 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 at an annual rate of 0.30% 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 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, pays 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 may pay a service fee of 0.25% of the average
daily net assets of the Class B shares to selected dealers and financial
institutions who furnish continuing personal shareholder services to their
customers who purchase and own Class B shares of the Fund. Any amounts not paid
as a service fee under such Plans would constitute an asset-based sales charge.
The Plans also impose a cap on the total sales charges, including asset-based
sales charges, that may be paid by the respective classes. AIM Distributors may,
from time to time, assign, transfer or pledge to one or more designees, its
rights to all or a designated portion of (a) compensation received by AIM
Distributors from the Fund pursuant to the Class B Plan (but not AIM
Distributors duties and obligations pursuant to the Class B Plan) and (b) any
contingent deferred sales charges received by AIM Distributors related to the
Class B shares. During the six months ended April 30, 1996, the Class A shares
and the Class B shares paid AIM Distributors $1,146,857 and $577,833,
respectively, as compensation under the Plans.
18
<PAGE> 21
Financials
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
AIM Distributors received commissions of $782,904 from 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 $20,519 in contingent deferred
sales charges imposed on redemptions 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
$2,764 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 $10,800,000 under a committed line of credit with a
financial institution syndicate with Chemical Bank of New York as the
administrative agent. 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 a
commitment fee, payable quarterly, at the rate of 1/10 of 1% per annum on the
unused balance of the Fund's commitment.
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 was
$646,507,972 and $321,781,686, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of April 30, 1996 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $193,729,904
- ------------------------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (6,692,088)
- ------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $187,037,816
==================================================================================================================
Investments have the same cost for tax and financial statement purposes.
</TABLE>
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 19,603,583 $ 277,153,025 19,941,452 $ 256,345,253
- -------------------------------------------------------------------------------------------------------------------------------
Class B 10,871,894 152,849,244 3,764,258 49,112,660
- -------------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 1,305,826 17,576,422 1,330,022 15,787,364
- -------------------------------------------------------------------------------------------------------------------------------
Class B 130,599 1,742,057 24,816 294,807
- -------------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (6,742,309) (95,075,261) (25,762,596) (326,804,513)
- -------------------------------------------------------------------------------------------------------------------------------
Class B (438,907) (6,158,359) (310,613) (4,018,256)
- -------------------------------------------------------------------------------------------------------------------------------
24,730,686 $ 348,087,128 (1,012,661) $ (9,282,685)
===============================================================================================================================
</TABLE>
19
<PAGE> 22
Financials
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share
outstanding during the six months ended April 30, 1996, each of the years in the
three-year period ended October 31, 1995 and the period November 5, 1991 (date
operations commenced) through October 31, 1992 and for a 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 sales commenced) through
October 31, 1994.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, ---------------------------------------------------------------
1996 1995 1994 1993 1992
---------- ------------ ------------ -------- --------
<S> <C> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 13.65 $ 13.50 $ 12.18 $ 8.88 $ 8.61(a)
- -------------------------------------------- ---------- ------------ ------------ -------- --------
Income from investment operations:
Net investment income 0.01(b) 0.01 0.02 0.02 0.03
- -------------------------------------------- ---------- ------------ ------------ -------- --------
Net gains on securities (both realized and
unrealized) 1.79 0.62 1.31 3.29 0.26
- -------------------------------------------- ---------- ------------ ------------ -------- --------
Total from investment operations 1.80 0.63 1.33 3.31 0.29
- -------------------------------------------- ---------- ------------ ------------ -------- --------
Less distributions:
Dividends from net investment income (0.01) (0.04) (0.01) (0.01) (0.02)
- -------------------------------------------- ---------- ------------ ------------ -------- --------
Distributions from capital gains (0.38) (0.44) -- -- --
- -------------------------------------------- ---------- ------------ ------------ -------- --------
Total distributions (0.39) (0.48) (0.01) (0.01) (0.02)
- -------------------------------------------- ---------- ------------ ------------ -------- --------
Net asset value, end of period $ 15.06 $ 13.65 $ 13.50 $ 12.18 $ 8.88
============================================ ========== ============ ============ ======== ========
Total return(c) 13.44% 5.24% 10.94% 37.36% 3.36%
============================================ ========== ============ ============ ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $935,341 $654,764 $708,159 $372,282 $122,663
============================================ ========== ============ ============ ======== ========
Ratio of expenses to average net assets 1.61%(d)(e) 1.67%(e) 1.64% 1.78% 1.80%(e)
============================================ ========== ============ ============ ======== ========
Ratio of net investment income to average
net assets 0.12%(d)(f) 0.10%(f) 0.22% 0.28% 0.30%(f)
============================================ ========== ============ ============ ======== ========
Portfolio turnover rate 39% 68% 67% 62% 41%
============================================ ========== ============ ============ ======== ========
</TABLE>
(a) Net asset value at the beginning of the period has been restated to reflect
a 1.1619 for 1 stock split, effected in the form of a dividend, on May 21,
1992.
(b) Calculated using average shares outstanding.
(c) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(d) Ratios are annualized and based on average net assets of $770,907,286.
(e) After fee waivers and expense reimbursements. Ratios of expenses to average
net assets before fee waivers and expense reimbursements are 1.63%
(annualized), 1.68% and 1.89% (annualized), respectively for 1996, 1995 and
1992.
(f) After fee waivers and expense reimbursements. Ratios of net investment
income to average net assets before fee waivers and expense reimbursements
are 0.10% (annualized), 0.09% and 0.22% (annualized), respectively for
1996, 1995 and 1992.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, -----------------------
1996 1995 1994
---------- -------- --------
<S> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 13.54 $ 13.49 $ 13.42
- ------------------------------------------------------------------------------------ ---------- -------- --------
Income from investment operations:
Net investment income (loss) (0.04)(b) (0.09) (0.01)
- ------------------------------------------------------------------------------------ ---------- -------- --------
Net gains on securities (both realized and unrealized) 1.76 0.61 0.08
- ------------------------------------------------------------------------------------ ---------- -------- --------
Total from investment operations 1.72 0.52 0.07
- ------------------------------------------------------------------------------------ ---------- -------- --------
Less distributions:
Dividends from net investment income -- (0.03) --
- ------------------------------------------------------------------------------------ ---------- -------- --------
Distributions from capital gains (0.38) (0.44) --
- ------------------------------------------------------------------------------------ ---------- -------- --------
Total distributions (0.38) (0.47) --
- ------------------------------------------------------------------------------------ ---------- -------- --------
Net asset value, end of period $ 14.88 $ 13.54 $ 13.49
==================================================================================== ========== ======== ========
Total return(a) 12.99% 4.35% 0.52%
==================================================================================== ========== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $214,342 $ 51,964 $ 4,833
==================================================================================== ========== ======== ========
Ratio of expenses to average net assets 2.32%(c)(d) 2.55%(d) 2.53%(f)
==================================================================================== ========== ======== ========
Ratio of net investment income (loss) to average net assets (0.59)%(c)(e) (0.78)%(e) (0.67)%(f)
==================================================================================== ========== ======== ========
Portfolio turnover rate 39% 68% 67%
==================================================================================== ========== ======== ========
</TABLE>
(a) Does not deduct contingent deferred sales charges and for periods less than
one year, total returns are not annualized.
(b) Calculated using average shares outstanding.
(c) Ratios are annualized and based on average net assets of $116,524,386.
(d) After fee waivers and expense reimbursements. Ratios of expenses to average
net assets before fee waivers are 2.35% (annualized) and 2.56%,
respectively for 1996 and 1995.
(e) After fee waivers and expense reimbursements. Ratios of net investment
income (loss) to average net assets before fee waivers are (0.62%)
(annualized) and (0.79)%, respectively for 1996 and 1995.
(f) Annualized.
20
<PAGE> 23
Directors &
Officers
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
11 Greenway Plaza
Charles T. Bauer Charles T. Bauer Suite 1919
Chairman and Chief Executive Officer Chairman Houston, TX 77046
A I M Management Group Inc.
Robert H. Graham INVESTMENT ADVISOR
Bruce L. Crockett President A I M Advisors, Inc.
Director, President, and Chief 11 Greenway Plaza
Executive Officer John J. Arthur Suite 1919
COMSAT Corporation Senior Vice President and Treasurer Houston, TX 77046
Owen Daly II Gary T. Crum TRANSFER AGENT
Director Senior Vice President A I M Fund Services, Inc.
Cortland Trust Inc. P.O. Box 4739
Scott G. Lucas Houston, TX 77210-4739
Carl Frischling Senior Vice President
Partner CUSTODIAN
Kramer, Levin, Naftalis, Nessen, Carol F. Relihan State Street Bank & Trust Company
Kamin & Frankel Senior Vice President and Secretary 225 Franklin Street
Boston, MA 02110
Robert H. Graham Dana R. Sutton
President and Chief Operating Officer Vice President and Assistant Treasurer COUNSEL TO THE FUND
A I M Management Group Inc. Ballard Spahr
Robert G. Alley Andrews & Ingersoll
John F. Kroeger Vice President 1735 Market Street
Formerly, Consultant Philadelphia, PA 19103
Wendell & Stockel Associates, Inc. Melville B. Cox
Vice President COUNSEL TO THE DIRECTORS
Lewis F. Pennock Kramer, Levin, Naftalis,
Attorney Jonathan C. Schoolar Nessen, Kamin & Frankel
Vice President 919 Third Avenue
Ian W. Robinson New York, NY 10022
Consultant; Formerly Executive P. Michelle Grace
Vice President and Assistant Secretary DISTRIBUTOR
Chief Financial Officer A I M Distributors, Inc.
Bell Atlantic Management David L. Kite 11 Greenway Plaza
Services, Inc. Assistant Secretary Suite 1919
Houston, TX 77046
Louis S. Sklar Nancy L. Martin
Executive Vice President Assistant Secretary
Hines Interests
Limited Partnership Ofelia M. Mayo
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
<PAGE> 24
<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 Tax-Exempt Cash Fund
AIM Management Group has provided leadership
in the mutual fund industry since 1976 and
currently manages approximately $54 billion *AIM Aggressive Growth Fund was closed to new
in assets for more than 2.3 million investors on July 18, 1995. **On September 25,
shareholders, including individual investors, 1995, AIM Government Securities Fund became AIM
corporate clients, and financial institutions. Intermediate Government Fund. For more complete
The AIM Family of Funds(R) is distributed information about any AIM Fund(s), including
nationwide, and AIM today ranks among the sales charges and expenses, ask your financial
nation's top 15 mutual fund companies in consultant or securities dealer for a free prospectus(es).
assets under management, according to Please read the prospectus(es) carefully before you
Lipper Analytical Services, Inc. invest or send money.
---------------
BULK RATE
U.S. POSTAGE
[AIM LOGO APPEARS HERE] PAID
HOUSTON, TX
A I M Distributors, Inc. Permit No. 1919
11 Greenway Plaza, Suite 1919 ---------------
Houston, TX 77046
</TABLE>
