<PAGE> 1
[COVER PHOTO APPEARS HERE]
AIM GLOBAL GROWTH FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1996
<PAGE> 2
AIM GLOBAL GROWTH FUND
For shareholders who seek long-term growth of capital. The Fund invests in a
portfolio of global equity securities of selected companies with strong
earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Growth Fund's performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value. Unless
otherwise indicated, the Fund's performance is computed without a sales
charge.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B share
performance reflects the applicable contingent deferred sales charge (CDSC)
for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The performance of the Fund's Class B shares will differ from that of
Class A shares due to differences in sales charge structure and Fund
expenses.
o The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o The Fund's portfolio composition is subject to change and there is no
assurance the Fund will continue to hold any one particular security.
o Past performance cannot guarantee comparable future results.
o International investing presents certain risks not associated with
investing solely in the U.S. These include risks relating to fluctuations
in the value of the U.S. dollar relative to the value of other currencies,
the custody arrangements made for the Fund's foreign holdings, differences
in accounting, political risks, and the lesser degree of public information
required to be provided by non-U.S. companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o Lipper Analytical Services, Inc. is an independent mutual fund performance
monitor. The unmanaged Lipper Global Fund Index represents an average of
the performance of the 30 largest global mutual funds.
o The Morgan Stanley Capital International World Index is a group of
unmanaged global securities tracked by Morgan Stanley Capital
International.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
As of March 31, 1996
(the most recent calendar quarter)
Class A Shares
1 Year 24.55%*
Inception (9/15/94) 17.42
*30.76% excluding sales charge
Class B Shares
1 Year 25.26%*
Inception (9/15/94) 18.26
*30.26% excluding sales charge
This report may be distributed only to current shareholders
or to persons who have received a current prospectus of the Fund.
<PAGE> 3
- --------------------------
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
[PHOTO OF future results."
Charles T. Bauer,
Chairman of As a mutual fund investor, you've seen this disclaimer on
the Board of every piece of mail you've ever received about your fund.
the Fund, You've seen it so often that you probably don't even
APPEARS HERE think about it or question what it means. But you should.
That sentence about past performance is true now more
than ever. These days it bluntly means "Don't expect the
25% to 35% returns you received last year." Don't automatically expect the 15%
to 20% returns of the past decade, either. History shows that the average
annual return is about 9% to 10%. If you're investing in mutual funds with
expectations of double-digit returns every year, you will be disappointed.
Maybe not today, but sometime in the future.
What is a realistic expectation for 1996? In this uncertain market, it is
easier to discuss what is unrealistic. Last year's performance was an
anomaly--the equivalent of euphoria. To expect a repeat is unrealistic.
I realize I am sounding a warning bell during the mutual fund industry's
best year ever. Investors like you poured $99 billion into stock mutual funds
during the first four months of 1996--the highest inflows on record. At $3
trillion in assets, the industry has grown 1,500 times over the past 50 years.
If we are to sustain that growth, we must have the public's confidence. Our
industry has a long-standing reputation for honesty and integrity. To maintain
that reputation as our assets swell into the trillions, we must make sure that
we don't promise anything we can't produce.
The industry's concern about investors' expectations goes beyond stamping
all our advertising with a standard disclaimer about performance. Mutual fund
leaders recently met for a conference in New York, and foremost on our minds
was educating investors about market volatility.
A whole generation of investors has seen nothing but a bull market, which
started in 1982. Except for the 1987 market crash, they've enjoyed a heady
rise. They may expect the same throughout this decade. I've been in the mutual
fund industry for more than 25 years, and I have seen a 5% to 10% market
correction about every five years. The last major correction was in 1990. If
history is any kind of teacher, we are overdue.
The challenge for investors is not to panic when the market takes a
downturn. We have another saying in the industry: "Focus on time, not timing."
Over time, the stock market has proven to be the only investment that
consistently beats inflation. But investing in it takes a long-term view.
Market timing--trying to play the market and "rescue" your money in a
downturn--has proven to be an inefficient strategy for most investors.
The challenge for the mutual fund industry is to keep your trust during a
bear market. The industry has survived and thrived because of its built-in
integrity: By law, we must operate in the best interests of our shareholders.
The mutual fund industry is among the most regulated in the country. The
Investment Company Act of 1940, which governs our industry, protects
shareholders against self-dealing, conflicts of interest, misappropriation of
funds, and other fraudulent activities.
The industry also polices itself. At AIM we have an exhaustive code of
ethics that governs each of our 1,150 employees.
(continued)
<PAGE> 4
A Message from
the Chairman
On a very basic level, it boils down to this: We are dealing with your
money, and if we lose your trust, we lose our business.
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 Global
Growth Fund
looked past the
market turbulence
to uncover companies
still exhibiting
accelerating
earnings growth.
- --------------------
[COVER PHOTO AIM GLOBAL GROWTH FUND
APPEARS HERE] INVESTS IN TOP WORLD MARKETS
U.S. MARKET RECAP
Uncertainty plagued the performance of U.S. stock markets through most of the
six-month period ended April 30, 1996. With uncertainty came unprecedented
volatility as markets were whipsawed by sweeping point swings.
Early in the reporting period, the principal concern was that conditions
which prompted 1995's remarkable advance in domestic stocks--robust corporate
earnings, moderate economic growth, and mild inflation--would not continue.
Indeed, The Wall Street Journal reported that the net income of 692 companies
surveyed fell 18% in the fourth quarter of 1995, and economic growth slowed in
the fourth quarter to a feeble annual rate of 0.5%.
In March, markets were stunned by surprisingly strong reports that indicated
the economy might actually be overheating. Employment levels were up, and
gasoline and commodity prices were sharply higher.
Subsequent reports offered a mixed picture that suggested that the economy
was growing, but at a manageable pace without inflation. Though the markets
remained skittish, stocks resumed their advance toward record levels,
particularly small-company stocks. Market leadership was broadly divided across
selected sectors including cyclical consumer, energy, industrial, and
technology.
=======================================================
TOP 10 WORLD MARKETS
10/31/95-4/30/96
=======================================================
AVERAGE ANNUAL
TOTAL RETURN IN
U.S. DOLLARS
1. Argentina 37.66%
2. Taiwan 32.40
3. Mexico 30.07
4. Indonesia 28.10
5. Malaysia 27.68
6. Spain 24.04
7. Peru 21.12
8. Japan 18.08
9. Italy 16.95
10. Hong Kong 15.97
Source: Morgan Stanley Capital International
=======================================================
FOREIGN MARKETS BACK ON TRACK IN 1996
Following a disappointing performance in 1995, foreign stocks bounced back in
1996. Adjusted for U.S. dollars, 15 foreign equity markets outperformed U.S.
stocks in the first calendar quarter of 1996, according to Morgan Stanley
Capital International.
A number of positive developments in foreign economies distinguished 1996
from 1995. Declining interest rates, strengthening economies, and positive
earnings trends encouraged investors to bid up stocks and currencies in several
key markets. A rising U.S. dollar improved the profitability of European,
Japanese, and Asian exports. Lower interest rates also encouraged investors to
favor stocks over local fixed-income investments.
Asia led world markets in performance during the six months covered by this
report, based on U.S. dollars. Taiwan and Malaysia led the advance in Asian
markets, closely followed by the Philippines and Indonesia. Japan, which has
the largest non-U.S. stock market--some 40% of the EAFE Index--rebounded sharply
from 1995 lows amid signs that the specter of deflation has diminished.
Spain and Italy were the top performing European markets in 1996 thanks to
strong earnings projections. Much of Europe remained plagued by slow growth due
to an absence of any meaningful recovery in consumer demand. Nonetheless,
continuing restructuring efforts throughout Europe have bolstered corporate
profits and encouraged a surge in mergers and acquisitions in such sectors as
telecommunications, pharmaceuticals, and insurance.
YOUR FUND'S INVESTMENT STRATEGY
The changing earnings environment set the stage for significant changes in
market leadership during the reporting period. AIM Global Growth Fund looked
past the market turbulence to uncover companies still exhibiting accelerating
earnings growth.
AIM Global Growth Fund performed well during the six-month period ended
April 30, 1996. Total return for the Fund was 12.80% and 12.53% for Class A and
Class B shares, respectively. Net assets more than tripled from $40.9 million
to $140.1 million.
The Fund was invested in 358 holdings spread across 74 industries in 29
countries as of April 30,
3
<PAGE> 6
Management's
Discussion & Analysis
- -------------------------
AIM Global Growth Fund
was invested in
358 holdings
spread across
74 industries in
29 countries as of
April 30, 1996.
- -------------------------
1996. Given the strength of the U.S. dollar during the reporting period, the
Fund also emphasized foreign companies that were generating revenue in U.S.
dollars. For example, a surging dollar benefits Japan's export businesses. Keep
in mind, the Fund's portfolio composition may change and there is no assurance
the Fund will continue to hold any particular security.
UNITED STATES. Approximately 34% of the Fund was invested in domestic
stocks. Emphasis in the technology sector was shifted from semiconductor
producers to computer software and networking companies. The Fund added Xylan
Corp., Synopsys Inc., and Newbridge Networks Corp.
A significant concentration of the Fund's holdings in insurance sectors were
in U.S. companies, including Aetna Life & Casualty and Cigna Corp. Healthcare,
the Fund's largest industry weighting, was dominated by U.S. companies
including Tenet Healthcare Corp., Heartpoint Inc., and American Home Products
Corp.
The Fund added to its holding in the retail sector by increasing existing
positions, such as The Gap, Inc., and by adding new stocks including Dayton
Hudson Corp., Home Depot, Inc., and Pep Boys.
PACIFIC BASIN AND LATIN AMERICA. The Fund's Japanese holdings-which
comprised 14% of the portfolio- emphasized selected electronics companies
including Yamaha Corp. and Sony Corp., and machinery companies Okuma Corp. and
Komatsu Ltd. Japanese auto maker Honda Motor Company and telecommunications
concern DDI Corp. were among the Fund's largest holdings. Hong Kong's Hang Seng
Bank Ltd. topped the Fund's top 10 holdings, closely followed by Sun Hung Kai
Properties Ltd. The Fund increased weightings in Singapore, and reduced
holdings in Malaysia. The Fund added to positions in Argentina, Brazil, and
Chile.
EUROPE. Approximately 25% of the Fund's holdings were in Europe, with the
largest concentration in healthcare and retail sectors. Among the Fund's
largest holdings in healthcare were Switzerland pharmaceutical companies
Ciba-Geigy Ltd. and Sandoz A.G. United Kingdom retailers Next PLC and Dixons
Group PLC were added. Also new to the Fund were oil and gas producer Total S.A.
and engineering firm Societe Technip from France. The Fund increased weightings
in telecommunications companies, including Italy's Telecom Italia S.p.A.
OUTLOOK
Signs are that volatility may persist in U.S. financial markets for some time.
The outlook for corporate earnings is mixed for the second quarter of 1996. The
dampeners will be the rise in interest rates from the middle of the first
quarter, a stronger U.S. dollar, and strong energy prices. Higher interest
rates increase the cost of borrowing and erode profits. A strong dollar impacts
competition in overseas markets. Higher oil prices have a negative ripple
effect in several industries from airlines to travel to transportation.
Inflation has been mild, but rising interest rates are a greater possibility
for 1996. Uncertainty over the economic outlook for the U.S. could initiate an
increase in interest rates worldwide, and that could arrest the fragile
economic expansion underway in Europe and Japan, and the rapid growth of
Southeast Asian economies.
<TABLE>
<CAPTION>
====================================================================================
PORTFOLIO HOLDINGS (AS OF APRIL 30, 1996)
====================================================================================
<S> <C>
TOP 10 DOMESTIC TOP 10 INTERNATIONAL
1. Aetna Life & Casualty Co. 1. Hang Seng Bank Ltd.
2. Tenet Healthcare Corp. 2. DDI Corp.
3. Home Depot, Inc. 3. Panamerican Beverages Inc.
4. Xylan Corp. 4. Canon, Inc.
5. Heartport, Inc. 5. First Pacific Co.
6. American Home Products Corp. 6. Honda Motor Company
7. Philip Morris Companies, Inc. 7. Ciba-Geigy Ltd.
8. ADC Telecommunications, Inc. 8. Western Mining Corp. Holdings Ltd.
9. Premiere Technologies, Inc. 9. Empresa Nacional de Electricidad, SA
10. Outdoor Systems, Inc. 10. Sun Hung Kai Properties Ltd.
====================================================================================
</TABLE>
4
<PAGE> 7
Financials
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-33.54%
ADVERTISING/BROADCASTING-0.35%
2,100 Belo (A.H.) Corp. $ 78,225
- ---------------------------------------------------------------------------------------------
17,800 Outdoor Systems, Inc.(a) 409,400
- ---------------------------------------------------------------------------------------------
487,625
- ---------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-0.29%
1,400 Boeing Co. (The) 114,975
- ---------------------------------------------------------------------------------------------
4,700 General Dynamics Corp. 296,687
- ---------------------------------------------------------------------------------------------
411,662
- ---------------------------------------------------------------------------------------------
AIRLINES-0.19%
9,000 Southwest Airlines Co. 267,750
- ---------------------------------------------------------------------------------------------
APPLIANCES-0.04%
2,000 Newell Co. 57,000
- ---------------------------------------------------------------------------------------------
AUTOMOBILE (MANUFACTURERS)-0.42%
3,600 Chrysler Corp. 225,900
- ---------------------------------------------------------------------------------------------
10,000 Ford Motor Co. 358,750
- ---------------------------------------------------------------------------------------------
584,650
- ---------------------------------------------------------------------------------------------
BANKING-0.54%
1,000 NationsBank Bank 79,750
- ---------------------------------------------------------------------------------------------
2,500 Norwest Bank 90,312
- ---------------------------------------------------------------------------------------------
9,000 PNC Bank Corp. 272,250
- ---------------------------------------------------------------------------------------------
1,300 Wells Fargo & Co. 315,412
- ---------------------------------------------------------------------------------------------
757,724
- ---------------------------------------------------------------------------------------------
BEVERAGES (SOFT DRINKS)-0.08%
1,800 PepsiCo Inc. 114,300
- ---------------------------------------------------------------------------------------------
BIOTECHNOLOGY-0.51%
7,000 AMGEN, Inc.(a) 402,500
- ---------------------------------------------------------------------------------------------
5,600 Guidant Corp. 314,300
- ---------------------------------------------------------------------------------------------
716,800
- ---------------------------------------------------------------------------------------------
BUILDING MATERIALS-0.17%
3,000 Georgia-Pacific Corp. 233,250
- ---------------------------------------------------------------------------------------------
BUSINESS SERVICES-0.87%
12,000 CUC International Inc.(a) 394,500
- ---------------------------------------------------------------------------------------------
1,100 Diebold, Inc. 42,350
- ---------------------------------------------------------------------------------------------
3,000 Dun & Bradstreet Corp. 182,625
- ---------------------------------------------------------------------------------------------
1,700 Equifax, Inc. 41,650
- ---------------------------------------------------------------------------------------------
1,200 Healthcare COMPARE Corp.(a) 56,550
- ---------------------------------------------------------------------------------------------
3,000 Olsten Corp. 91,125
- ---------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Business Services-continued
4,800 ServiceMaster L.P. $ 152,400
- ---------------------------------------------------------------------------------------------
21,300 Walsh International, Inc.(a) 263,587
- ---------------------------------------------------------------------------------------------
1,224,787
- ---------------------------------------------------------------------------------------------
CHEMICALS-0.28%
2,900 Great Lakes Chemical Corp. 197,925
- ---------------------------------------------------------------------------------------------
3,300 Hercules Inc. 199,650
- ---------------------------------------------------------------------------------------------
397,575
- ---------------------------------------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.03%
1,400 Cabot Corp. 37,450
- ---------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-1.32%
8,200 COMPAQ Computer Corp.(a) 382,325
- ---------------------------------------------------------------------------------------------
8,000 Dell Computer Corp. 367,000
- ---------------------------------------------------------------------------------------------
3,200 Digital Equipment Corp.(a) 191,200
- ---------------------------------------------------------------------------------------------
6,500 Gateway 2000 Inc.(a) 226,687
- ---------------------------------------------------------------------------------------------
3,400 Hewlett-Packard Co. 359,975
- ---------------------------------------------------------------------------------------------
1,100 Stratus Computer, Inc.(a) 30,937
- ---------------------------------------------------------------------------------------------
5,500 Sun Microsystems, Inc.(a) 298,375
- ---------------------------------------------------------------------------------------------
1,856,499
- ---------------------------------------------------------------------------------------------
COMPUTER NETWORKING-0.46%
4,000 Cabletron Systems, Inc.(a) 301,500
- ---------------------------------------------------------------------------------------------
4,000 Cisco Systems, Inc.(a) 207,500
- ---------------------------------------------------------------------------------------------
2,800 3Com Corp.(a) 129,150
- ---------------------------------------------------------------------------------------------
638,150
- ---------------------------------------------------------------------------------------------
COMPUTER PERIPHERALS-0.78%
2,500 Adaptec Inc.(a) 143,750
- ---------------------------------------------------------------------------------------------
14,300 Cognex Corp.(a) 382,525
- ---------------------------------------------------------------------------------------------
6,000 EMC Corp.(a) 123,000
- ---------------------------------------------------------------------------------------------
8,500 Storage Technology Corp.(a) 261,375
- ---------------------------------------------------------------------------------------------
1,200 U.S. Robotics Corp.(a) 187,800
- ---------------------------------------------------------------------------------------------
1,098,450
- ---------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-2.47%
1,600 BMC Software, Inc.(a) 97,400
- ---------------------------------------------------------------------------------------------
3,000 Cadence Design Systems, Inc.(a) 156,750
- ---------------------------------------------------------------------------------------------
2,200 Computer Associates International, Inc. 161,425
- ---------------------------------------------------------------------------------------------
29,700 Computervision Corp.(a) 360,113
- ---------------------------------------------------------------------------------------------
5,000 First Data Corp. 380,000
- ---------------------------------------------------------------------------------------------
11,500 Fiserv, Inc.(a) 350,750
- ---------------------------------------------------------------------------------------------
1,400 Microsoft Corp.(a) 158,725
- ---------------------------------------------------------------------------------------------
600 National Data Corp. 21,150
- ---------------------------------------------------------------------------------------------
6,000 Oracle Systems Corp.(a) 202,500
- ---------------------------------------------------------------------------------------------
11,300 Raptor Systems, Inc.(a) 372,900
- ---------------------------------------------------------------------------------------------
9,300 Synopsys, Inc.(a) 383,625
- ---------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Software/Services-continued
5,000 Wallace Computer Services, Inc. $ 295,625
- ---------------------------------------------------------------------------------------------
8,000 Xylan Corp. 512,500
- ---------------------------------------------------------------------------------------------
3,453,463
- ---------------------------------------------------------------------------------------------
CONGLOMERATES-0.61%
4,500 Dial Corp. (The) 126,563
- ---------------------------------------------------------------------------------------------
4,000 Loews Corp. 305,000
- ---------------------------------------------------------------------------------------------
1,800 Textron Inc. 154,350
- ---------------------------------------------------------------------------------------------
12,700 U.S. Industries, Inc. 266,700
- ---------------------------------------------------------------------------------------------
852,613
- ---------------------------------------------------------------------------------------------
CONTAINERS-0.42%
10,000 First Brands Corp. 265,000
- ---------------------------------------------------------------------------------------------
9,000 Sealed Air Corp.(a) 318,375
- ---------------------------------------------------------------------------------------------
583,375
- ---------------------------------------------------------------------------------------------
COSMETICS & TOILETRIES-0.57%
3,000 Colgate-Palmolive Co. 229,875
- ---------------------------------------------------------------------------------------------
6,600 Gillette Co. (The) 356,400
- ---------------------------------------------------------------------------------------------
2,500 Procter & Gamble Co. 211,250
- ---------------------------------------------------------------------------------------------
797,525
- ---------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-0.40%
10,500 Amphenol Corp.(a) 276,937
- ---------------------------------------------------------------------------------------------
900 Anixter International Inc.(a) 15,750
- ---------------------------------------------------------------------------------------------
9,400 Photon Dynamics, Inc. 94,000
- ---------------------------------------------------------------------------------------------
5,200 Thermo Instrument Systems, Inc.(a) 171,600
- ---------------------------------------------------------------------------------------------
558,287
- ---------------------------------------------------------------------------------------------
ELECTRONIC/DEFENSE-0.04%
1,600 Sundstrand Corp. 58,800
- ---------------------------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS-0.21%
5,500 Avnet, Inc. 290,125
- ---------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.76%
6,000 Bear Stearns Companies Inc. 150,750
- ---------------------------------------------------------------------------------------------
2,400 Finova Group, Inc. 133,200
- ---------------------------------------------------------------------------------------------
5,000 Franklin Resources, Inc. 286,250
- ---------------------------------------------------------------------------------------------
3,000 Morgan Stanley Group Inc. 150,750
- ---------------------------------------------------------------------------------------------
4,500 PaineWebber Group Inc. 93,938
- ---------------------------------------------------------------------------------------------
4,400 Price (T. Rowe) Associates 245,300
- ---------------------------------------------------------------------------------------------
1,060,188
- ---------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-1.32%
3,100 Beneficial Corp. 171,275
- ---------------------------------------------------------------------------------------------
5,000 Countrywide Credit Industries, Inc. 108,125
- ---------------------------------------------------------------------------------------------
2,800 Federal Home Loan Mortgage Corp. 233,450
- ---------------------------------------------------------------------------------------------
4,400 First USA, Inc. 247,500
- ---------------------------------------------------------------------------------------------
3,500 Firstar Corp. 162,750
- ---------------------------------------------------------------------------------------------
3,700 Household International, Inc. 255,762
- ---------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Finance (Consumer Credit)-continued
4,500 Student Loan Marketing Association $ 329,625
- ---------------------------------------------------------------------------------------------
3,600 SunAmerica, Inc. 196,200
- ---------------------------------------------------------------------------------------------
5,000 United Companies Financial Corp. 160,000
- ---------------------------------------------------------------------------------------------
1,864,687
- ---------------------------------------------------------------------------------------------
FINANCE (SAVINGS & LOAN)-0.20%
10,000 Washington Mutual Inc. 277,500
- ---------------------------------------------------------------------------------------------
FOOD PROCESSING-0.22%
6,000 ConAgra, Inc. 231,750
- ---------------------------------------------------------------------------------------------
2,000 Dole Food Co., Inc. 80,000
- ---------------------------------------------------------------------------------------------
311,750
- ---------------------------------------------------------------------------------------------
FURNITURE-0.12%
5,800 Herman Miller, Inc. 177,625
- ---------------------------------------------------------------------------------------------
GAMING-0.20%
8,000 Harrah's Entertainment, Inc.(a) 276,000
- ---------------------------------------------------------------------------------------------
HOME BUILDING-0.08%
4,100 Centex Corp. 110,700
- ---------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.22%
23,000 Host Marriott Corp.(a) 307,625
- ---------------------------------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.21%
8,000 Conseco, Inc. 292,000
- ---------------------------------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-1.71%
3,000 ACE, Ltd. 132,000
- ---------------------------------------------------------------------------------------------
9,000 Aetna Life & Casualty Co. 641,250
- ---------------------------------------------------------------------------------------------
3,000 CIGNA Corp. 340,125
- ---------------------------------------------------------------------------------------------
12,000 Horace Mann Educators Corp. 394,500
- ---------------------------------------------------------------------------------------------
6,100 MGIC Investment Corp. 330,925
- ---------------------------------------------------------------------------------------------
8,500 TIG Holdings, Inc. 258,187
- ---------------------------------------------------------------------------------------------
5,000 Travelers Group, Inc. 307,500
- ---------------------------------------------------------------------------------------------
2,404,487
- ---------------------------------------------------------------------------------------------
LEISURE & RECREATION-0.16%
2,900 Brunswick Corp. 63,800
- ---------------------------------------------------------------------------------------------
3,500 Coleman Company, Inc. (The)(a) 160,562
- ---------------------------------------------------------------------------------------------
224,362
- ---------------------------------------------------------------------------------------------
MACHINERY (HEAVY)-0.52%
5,000 Dover Corp. 257,500
- ---------------------------------------------------------------------------------------------
5,000 Foster Wheeler Corp. 231,250
- ---------------------------------------------------------------------------------------------
6,000 Harnischfeger Industries, Inc. 243,000
- ---------------------------------------------------------------------------------------------
731,750
- ---------------------------------------------------------------------------------------------
MACHINERY (MISCELLANEOUS)-0.02%
1,000 American Standard Companies(a) 28,250
- ---------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
MEDICAL (DRUGS)-2.14%
6,000 Abbott Laboratories $ 243,750
- ---------------------------------------------------------------------------------------------
4,300 American Home Products Corp. 453,650
- ---------------------------------------------------------------------------------------------
2,000 Amerisource Health Corp.(a) 72,000
- ---------------------------------------------------------------------------------------------
4,500 Cardinal Health, Inc. 282,375
- ---------------------------------------------------------------------------------------------
11,400 ICN Pharmaceuticals, Inc. 256,500
- ---------------------------------------------------------------------------------------------
9,500 Ivax Corp. 276,687
- ---------------------------------------------------------------------------------------------
500 Johnson & Johnson 46,250
- ---------------------------------------------------------------------------------------------
2,400 Merck & Co., Inc. 145,200
- ---------------------------------------------------------------------------------------------
2,500 Pfizer Inc. 172,187
- ---------------------------------------------------------------------------------------------
8,000 Pharmacia & Upjohn, Inc. 306,000
- ---------------------------------------------------------------------------------------------
3,500 Rhone-Poulenc Rorer Inc. 217,000
- ---------------------------------------------------------------------------------------------
4,500 Schering-Plough Corp. 258,187
- ---------------------------------------------------------------------------------------------
5,600 Watson Pharmaceuticals, Inc.(a) 266,000
- ---------------------------------------------------------------------------------------------
2,995,786
- ---------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-1.54%
4,100 Baxter International Inc. 181,425
- ---------------------------------------------------------------------------------------------
4,000 Becton, Dickinson & Co. 322,500
- ---------------------------------------------------------------------------------------------
14,000 Biomet, Inc.(a) 206,500
- ---------------------------------------------------------------------------------------------
13,000 Heartport, Inc.(a) 464,750
- ---------------------------------------------------------------------------------------------
5,000 Medtronic, Inc. 265,625
- ---------------------------------------------------------------------------------------------
4,900 Nellcor Puritan Bennett, Inc.(a) 240,100
- ---------------------------------------------------------------------------------------------
4,450 St. Jude Medical, Inc. 162,425
- ---------------------------------------------------------------------------------------------
8,500 U.S. Surgical Corp. 314,500
- ---------------------------------------------------------------------------------------------
2,157,825
- ---------------------------------------------------------------------------------------------
MEDICAL (PATIENT SERVICES)-2.07%
11,000 Caremark International, Inc. 303,875
- ---------------------------------------------------------------------------------------------
8,800 Community Health Systems, Inc.(a) 381,700
- ---------------------------------------------------------------------------------------------
2,800 Foundation Health Corp.(a) 109,550
- ---------------------------------------------------------------------------------------------
5,000 HEALTHSOUTH Corp.(a) 185,625
- ---------------------------------------------------------------------------------------------
10,000 Living Centers of America, Inc.(a) 370,000
- ---------------------------------------------------------------------------------------------
10,000 MedPartners/Mullikin, Inc.(a) 288,750
- ---------------------------------------------------------------------------------------------
3,900 Sybron International Corp.(a) 98,475
- ---------------------------------------------------------------------------------------------
29,000 Tenet Healthcare Corp.(a) 594,500
- ---------------------------------------------------------------------------------------------
4,500 United Healthcare Corp. 263,250
- ---------------------------------------------------------------------------------------------
9,000 Vencor, Inc.(a) 303,750
- ---------------------------------------------------------------------------------------------
2,899,475
- ---------------------------------------------------------------------------------------------
NATURAL GAS PIPELINE-0.20%
5,500 Williams Companies, Inc. 281,187
- ---------------------------------------------------------------------------------------------
OFFICE AUTOMATION-0.26%
2,500 Xerox Corp. 366,250
- ---------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
OFFICE PRODUCTS-0.40%
6,500 Alco Standard Corp. $ 376,187
- ---------------------------------------------------------------------------------------------
4,000 Reynolds & Reynolds Co.-Class A 185,000
- ---------------------------------------------------------------------------------------------
561,187
- ---------------------------------------------------------------------------------------------
OIL & GAS (DRILLING)-0.26%
15,000 Reading & Bates Corp.(a) 367,500
- ---------------------------------------------------------------------------------------------
OIL & GAS (SERVICES)-0.50%
3,400 Louisiana Land & Exploration Co. 184,025
- ---------------------------------------------------------------------------------------------
30,300 NorAm Energy Corp. 333,300
- ---------------------------------------------------------------------------------------------
3,500 Sonat Offshore Drilling Inc. 192,063
- ---------------------------------------------------------------------------------------------
709,388
- ---------------------------------------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES-1.13%
12,000 Baker Hughes Inc. 381,000
- ---------------------------------------------------------------------------------------------
8,000 Coastal Corp. 317,000
- ---------------------------------------------------------------------------------------------
2,500 Cooper Cameron Corp.(a) 112,812
- ---------------------------------------------------------------------------------------------
10,000 Dresser Industries, Inc. 318,750
- ---------------------------------------------------------------------------------------------
3,000 Halliburton Co. 172,125
- ---------------------------------------------------------------------------------------------
3,200 Schlumberger Ltd. 282,400
- ---------------------------------------------------------------------------------------------
1,584,087
- ---------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.61%
5,500 International Paper Co. 219,312
- ---------------------------------------------------------------------------------------------
5,000 Kimberly-Clark Corp. 363,125
- ---------------------------------------------------------------------------------------------
5,000 Union Camp Corp. 271,875
- ---------------------------------------------------------------------------------------------
854,312
- ---------------------------------------------------------------------------------------------
PUBLISHING-0.54%
9,600 New York Times Co. 312,000
- ---------------------------------------------------------------------------------------------
3,200 Times Mirror Co. (The) 136,400
- ---------------------------------------------------------------------------------------------
4,400 Tribune Co. 306,900
- ---------------------------------------------------------------------------------------------
755,300
- ---------------------------------------------------------------------------------------------
RESTAURANTS-0.20%
19,000 Darden Restaurants, Inc. 261,250
- ---------------------------------------------------------------------------------------------
300 Outback Steakhouse, Inc.(a) 12,038
- ---------------------------------------------------------------------------------------------
273,288
- ---------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUGS)-0.75%
6,500 Albertson's, Inc. 250,250
- ---------------------------------------------------------------------------------------------
12,000 General Nutrition Co.(a) 234,000
- ---------------------------------------------------------------------------------------------
3,800 Hannaford Bros. Co. 106,400
- ---------------------------------------------------------------------------------------------
10,000 Rite Aid Corp. 296,250
- ---------------------------------------------------------------------------------------------
4,600 Safeway Inc.(a) 155,250
- ---------------------------------------------------------------------------------------------
1,042,150
- ---------------------------------------------------------------------------------------------
RETAIL (STORES)-2.29%
10,000 Circuit City Stores, Inc. 317,500
- ---------------------------------------------------------------------------------------------
4,500 Consolidated Stores Corp.(a) 162,000
- ---------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Retail (Stores)-continued
4,000 Dayton-Hudson Corp. $ 382,000
- ---------------------------------------------------------------------------------------------
6,000 Gap, Inc. (The) 180,750
- ---------------------------------------------------------------------------------------------
12,000 Home Depot, Inc. 568,500
- ---------------------------------------------------------------------------------------------
1,700 Mercantile Stores Co., Inc. 106,037
- ---------------------------------------------------------------------------------------------
7,000 Micro Warehouse, Inc.(a) 301,000
- ---------------------------------------------------------------------------------------------
13,800 Office Depot, Inc.(a) 308,775
- ---------------------------------------------------------------------------------------------
10,000 Pep Boys-Manny, Moe & Jack 333,750
- ---------------------------------------------------------------------------------------------
8,000 Price/Costco Inc.(a) 152,000
- ---------------------------------------------------------------------------------------------
1,575 Staples, Inc.(a) 29,925
- ---------------------------------------------------------------------------------------------
2,500 Viking Office Products Inc.(a) 148,437
- ---------------------------------------------------------------------------------------------
9,000 Waban Inc.(a) 220,500
- ---------------------------------------------------------------------------------------------
3,211,174
- ---------------------------------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.24%
5,000 Millipore Corp. 209,375
- ---------------------------------------------------------------------------------------------
2,100 Varian Associates, Inc. 119,962
- ---------------------------------------------------------------------------------------------
329,337
- ---------------------------------------------------------------------------------------------
SEMICONDUCTORS-0.76%
9,000 Atmel Corp.(a) 360,000
- ---------------------------------------------------------------------------------------------
5,500 Intel Corp. 372,625
- ---------------------------------------------------------------------------------------------
11,500 KLA Instruments Corp.(a) 332,063
- ---------------------------------------------------------------------------------------------
1,064,688
- ---------------------------------------------------------------------------------------------
SHOES & RELATED APPAREL-0.04%
1,200 Nine West Group, Inc.(a) 51,450
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-1.80%
3,000 A T & T Corp. 183,750
- ---------------------------------------------------------------------------------------------
10,500 ADC Telecommunications, Inc.(a) 441,000
- ---------------------------------------------------------------------------------------------
4,500 Andrew Corp.(a) 216,000
- ---------------------------------------------------------------------------------------------
8,100 Glenayre Technologies, Inc.(a) 376,650
- ---------------------------------------------------------------------------------------------
9,000 Lucent Technologies Inc.(a) 316,125
- ---------------------------------------------------------------------------------------------
12,000 MCI Communications Corp. 353,250
- ---------------------------------------------------------------------------------------------
11,400 Premiere Technologies, Inc.(a) 430,350
- ---------------------------------------------------------------------------------------------
3,000 Tellabs, Inc.(a) 165,750
- ---------------------------------------------------------------------------------------------
1,500 360 Communications Co.(a) 35,250
- ---------------------------------------------------------------------------------------------
2,518,125
- ---------------------------------------------------------------------------------------------
TELEPHONE-0.25%
7,200 Cincinnati Bell, Inc. 354,600
- ---------------------------------------------------------------------------------------------
TEXTILES-0.22%
8,500 Liz Claiborne, Inc. 309,188
- ---------------------------------------------------------------------------------------------
TOBACCO-0.55%
5,000 Philip Morris Companies, Inc. 450,625
- ---------------------------------------------------------------------------------------------
10,000 UST, Inc. 320,000
- ---------------------------------------------------------------------------------------------
770,625
- ---------------------------------------------------------------------------------------------
Total Domestic Common Stocks 47,001,706
- ---------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY INTERESTS-59.45%
ARGENTINA-1.34%
21,000 Banco de Galicia y Buenos Aires S.A. de C.V. (Banking) $ 493,500
- ---------------------------------------------------------------------------------------------
66,000 Perez Companc S.A.-Class B (Oil & Gas-Services) 410,561
- ---------------------------------------------------------------------------------------------
12,000 Telefoncia de Argentina S.A.-Sponsored ADR (Telephone) 351,000
- ---------------------------------------------------------------------------------------------
28,600 YPF Sociedad Anonima-ADR (Oil & Gas-Exploration & Production) 625,625
- ---------------------------------------------------------------------------------------------
1,880,686
- ---------------------------------------------------------------------------------------------
AUSTRALIA-1.72%
29,800 News Corp. Ltd.(The)-ADR (Publishing) 607,175
- ---------------------------------------------------------------------------------------------
90,900 QBE Insurance Group Ltd. (Insurance-Broker) 476,993
- ---------------------------------------------------------------------------------------------
156,700 QNI Ltd. (Metals-Miscellaneous) 387,749
- ---------------------------------------------------------------------------------------------
128,200 Western Mining Corp. Holdings Ltd. (Metals-Miscellaneous) 934,561
- ---------------------------------------------------------------------------------------------
2,406,478
- ---------------------------------------------------------------------------------------------
AUSTRIA-0.24%
2,800 Oesterreichische Elektrizitaetswirtschafts AG
(Verbundgesellschaft)-Class A (Electric Services) 55,140
- ---------------------------------------------------------------------------------------------
780 OMV AG (Oil & Gas-Exploration & Production) 278,309
- ---------------------------------------------------------------------------------------------
333,449
- ---------------------------------------------------------------------------------------------
BELGIUM-0.87%
1,100 Colruyt S.A. (Retail-Food & Drugs) 342,790
- ---------------------------------------------------------------------------------------------
520 UCB S.A. (Medical-Drugs) 875,476
- ---------------------------------------------------------------------------------------------
1,218,266
- ---------------------------------------------------------------------------------------------
BRAZIL-0.51%
13,300 Telecomunicacoes Brasileiras S.A. Telebras-ADR
(Telecommunications) 719,862
- ---------------------------------------------------------------------------------------------
CANADA-1.17%
14,000 Bombardier Inc.-Class B (Transportation-Miscellaneous) 196,915
- ---------------------------------------------------------------------------------------------
5,800 Newbridge Networks Corp.(a) (Computer Networking) 373,375
- ---------------------------------------------------------------------------------------------
12,000 Northern Telecom Ltd. (Telecommunications) 618,000
- ---------------------------------------------------------------------------------------------
34,650 TELUS Corp. (Telecommunications) 455,553
- ---------------------------------------------------------------------------------------------
1,643,843
- ---------------------------------------------------------------------------------------------
CHILE-0.47%
7,200 Compania de Telefonos de Chile S.A.-ADR (Telephone) 657,000
- ---------------------------------------------------------------------------------------------
DENMARK-0.63%
5,100 Danisco A/S (Food Processing) 248,865
- ---------------------------------------------------------------------------------------------
2,450 Novo-Nordisk A/S-Class B (Medical-Drugs) 318,393
- ---------------------------------------------------------------------------------------------
2,600 Sophus Berendsen A/S-Class B (Retail-Stores) 318,943
- ---------------------------------------------------------------------------------------------
886,201
- ---------------------------------------------------------------------------------------------
FRANCE-5.48%
470 Carrefour Supermarche (Retail-Stores) 367,269
- ---------------------------------------------------------------------------------------------
3,200 Castorama Dubois (Retail-Stores) 612,443
- ---------------------------------------------------------------------------------------------
2,100 Cetelem (Finance-Consumer Credit) 450,682
- ---------------------------------------------------------------------------------------------
5,300 Christian Dior S.A. (Consumer Non-Durables) 706,667
- ---------------------------------------------------------------------------------------------
2,700 ECCO S.A. (Business Services) 606,618
- ---------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
France-continued
1,100 Essilor International-Compagnie Generale d'Optique
(Medical Instruments/Products) $ 278,433
- ---------------------------------------------------------------------------------------------
960 LVMH Moet Hennessy Louis Vuitton (Beverages-Alcoholic) 245,597
- ---------------------------------------------------------------------------------------------
2,900 Pinault-Printemps-Redoute, S.A. (Retail-Food & Drugs) 880,522
- ---------------------------------------------------------------------------------------------
2,600 Rexel S.A. (Transportation-Miscellaneous) 623,396
- ---------------------------------------------------------------------------------------------
2,100 Roussel Uclaf (Medical-Drugs) 494,978
- ---------------------------------------------------------------------------------------------
13,000 Schneider S.A. (Electronic Components/Miscellaneous) 605,786
- ---------------------------------------------------------------------------------------------
4,200 SGS-Thomson Microelecronics N.V.-New York Shares-ADR(a)
(Electronic Components/Miscellaneous) 197,400
- ---------------------------------------------------------------------------------------------
1,100 Sodexho S.A. (Business Services) 436,168
- ---------------------------------------------------------------------------------------------
6,600 Societe Technip (Engineering & Construction) 593,776
- ---------------------------------------------------------------------------------------------
8,500 Total S.A.-Class B (Oil & Gas-Exploration & Production) 576,865
- ---------------------------------------------------------------------------------------------
7,676,600
- ---------------------------------------------------------------------------------------------
GERMANY-2.79%
4,500 Adidas A.G.(a) (Shoes & Related Apparel) 342,446
- ---------------------------------------------------------------------------------------------
29,600 Continental A.G. (Automobile/Trucks Parts & Tires) 511,412
- ---------------------------------------------------------------------------------------------
700 Gehe A.G. (Medical-Drugs) 404,208
- ---------------------------------------------------------------------------------------------
1,100 Hoechst A.G. (Chemicals) 370,475
- ---------------------------------------------------------------------------------------------
5,000 SAP A.G. (Computer Software/Services) 663,988
- ---------------------------------------------------------------------------------------------
6,000 SGL Carbon A.G. (Metals-Miscellaneous) 566,334
- ---------------------------------------------------------------------------------------------
1,100 Siemens A.G. (Electric Services) 602,345
- ---------------------------------------------------------------------------------------------
9,200 Veba A.G. (Electric Services) 457,326
- ---------------------------------------------------------------------------------------------
3,918,534
- ---------------------------------------------------------------------------------------------
HONG KONG-4.63%
123,000 Cheung Kong Holdings Ltd. (Real Estate) 878,515
- ---------------------------------------------------------------------------------------------
642,000 Cosco Pacific Ltd. (Transportation-Miscellaneous) 452,317
- ---------------------------------------------------------------------------------------------
731,000 First Pacific Co. (Conglomerates) 973,344
- ---------------------------------------------------------------------------------------------
105,500 Hang Seng Bank Ltd. (Banking) 1,070,616
- ---------------------------------------------------------------------------------------------
432,000 Hong Kong & China Gas (Electric Power) 709,250
- ---------------------------------------------------------------------------------------------
40,400 HSBC Holdings PLC (Banking) 603,219
- ---------------------------------------------------------------------------------------------
76,000 Hutchison Whampoa Ltd. (Conglomerates) 471,592
- ---------------------------------------------------------------------------------------------
188,000 New World Infrastructure(a) (Building Materials) 418,021
- ---------------------------------------------------------------------------------------------
95,600 Sun Hung Kai Properties Ltd. (Real Estate) 911,448
- ---------------------------------------------------------------------------------------------
6,488,322
- ---------------------------------------------------------------------------------------------
INDONESIA-0.06%
24,000 PT Semen Gresik (Building Materials) 83,051
- ---------------------------------------------------------------------------------------------
IRELAND-0.22%
4,600 Elan Corp. PLC-ADR(a) (Medical-Drugs) 304,175
- ---------------------------------------------------------------------------------------------
ISRAEL-0.51%
14,000 ECI Telecommunications Ltd. (Computer Networking) 365,750
- ---------------------------------------------------------------------------------------------
7,800 Teva Pharmaceutical Industries Ltd.-ADR (Medical-Drugs) 350,025
- ---------------------------------------------------------------------------------------------
715,775
- ---------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
ITALY-1.40%
75,000 Ente Nazionale Idrocarburi S.p.A. (Oil & Gas-Exploration &
Production) $ 323,576
- ---------------------------------------------------------------------------------------------
1,200 Fila Holding S.p.A.-ADR (Retail-Stores) 81,900
- ---------------------------------------------------------------------------------------------
48,700 Istituto Mobiliare Italiano S.p.A. (Banking) 386,077
- ---------------------------------------------------------------------------------------------
410,000 Telecom Italia Mobile S.p.A.(a) (Telecommunications) 833,649
- ---------------------------------------------------------------------------------------------
153,200 Telecom Italia S.p.A. (Telecommunications) 336,020
- ---------------------------------------------------------------------------------------------
1,961,222
- ---------------------------------------------------------------------------------------------
JAPAN-14.24%
6,270 Advantest Corp. (Electronic Components/Miscellaneous) 311,087
- ---------------------------------------------------------------------------------------------
47,000 Bridgestone Corp. (Automobile/Truck Parts & Tires) 871,660
- ---------------------------------------------------------------------------------------------
49,000 Canon, Inc. (Office Products) 974,332
- ---------------------------------------------------------------------------------------------
9,700 Daiichi Corp. (Electronic Components/Miscellaneous) 245,734
- ---------------------------------------------------------------------------------------------
115 DDI Corp. (Telecommunications) 988,337
- ---------------------------------------------------------------------------------------------
42,000 Honda Motor Co. (Automobile Manufacturers) 959,610
- ---------------------------------------------------------------------------------------------
15,000 Hoya Corp. (Electronic Components/Miscellaneous) 530,567
- ---------------------------------------------------------------------------------------------
30,000 Isetan (Retail-Stores) 444,529
- ---------------------------------------------------------------------------------------------
14,000 Jusco Co. (Retail-Stores) 433,631
- ---------------------------------------------------------------------------------------------
66,000 Kajima Corp. (Engineering & Construction) 744,515
- ---------------------------------------------------------------------------------------------
34,000 Komatsu Ltd. (Machinery-Heavy) 328,283
- ---------------------------------------------------------------------------------------------
33,300 Mitsubishi Bank (Banking) 770,384
- ---------------------------------------------------------------------------------------------
37,000 Nikon Corp. (Conglomerates) 498,733
- ---------------------------------------------------------------------------------------------
232,000 Nippon Steel Company (Steel) 838,354
- ---------------------------------------------------------------------------------------------
2,050 Nippon Television Network (Advertising/Broadcasting) 644,759
- ---------------------------------------------------------------------------------------------
50,000 Nippon Zeon Co., Ltd. (Chemicals) 319,296
- ---------------------------------------------------------------------------------------------
273,000 NKK Corp.(a) (Steel) 856,020
- ---------------------------------------------------------------------------------------------
32,000 Nomura Securities Co., Ltd. (Finance-Asset Management) 697,481
- ---------------------------------------------------------------------------------------------
92,000 NSK Ltd. (Metals-Miscellaneous) 743,177
- ---------------------------------------------------------------------------------------------
200 NTT Data Communication Systems Co. (Computer Software/Services) 699,775
- ---------------------------------------------------------------------------------------------
78,000 Okuma Corp.(a) (Machine Tools) 857,512
- ---------------------------------------------------------------------------------------------
15,000 Omron Corp. (Electronic Components/Miscellaneous) 338,416
- ---------------------------------------------------------------------------------------------
45,000 Ricoh Co., Ltd. (Office Automation) 529,133
- ---------------------------------------------------------------------------------------------
6,000 Rohm Co., Ltd. (Electronic Components/Miscellaneous) 382,009
- ---------------------------------------------------------------------------------------------
40,000 Shizuoka Bank (Banking) 542,995
- ---------------------------------------------------------------------------------------------
6,800 SMC (Machinery-Miscellaneous) 529,803
- ---------------------------------------------------------------------------------------------
10,800 Sony Corp. (Electronic Components/Miscellaneous) 702,070
- ---------------------------------------------------------------------------------------------
6,000 TDK Corp. (Electronic Components/Miscellaneous) 343,578
- ---------------------------------------------------------------------------------------------
8,000 Tokyo Electron Ltd. (Electronic Components/Miscellaneous) 297,500
- ---------------------------------------------------------------------------------------------
39,000 Toyota Motor Corp. (Automobile-Manufacturers) 891,066
- ---------------------------------------------------------------------------------------------
48,000 Yamaha Corp. (Electronic Components/Miscellaneous) 862,674
- ---------------------------------------------------------------------------------------------
41,000 Yamatake-Honeywell (Airlines) 776,062
- ---------------------------------------------------------------------------------------------
19,953,082
- ---------------------------------------------------------------------------------------------
MALAYSIA-1.73%
69,000 Commerce Asset Holdings (Finance-Asset Management) 470,461
- ---------------------------------------------------------------------------------------------
70,000 Edaran Otomoil Nasional Berhad (Automobile-Manufacturers) 598,003
- ---------------------------------------------------------------------------------------------
35,000 Genting Berhad (Leisure & Recreation) 314,443
- ---------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 17
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Malaysia-continued
52,000 Malayan Banking Berhad (Banking) $ 506,798
- ---------------------------------------------------------------------------------------------
156,000 Technology Resources Industries Berhad(a) (Conglomerates) 531,825
- ---------------------------------------------------------------------------------------------
2,421,530
- ---------------------------------------------------------------------------------------------
MEXICO-1.18%
658,000 Grupo Industrial Maseca S.A. de CV-Class B (Food/Processing) 642,945
- ---------------------------------------------------------------------------------------------
2,000 Kimberly-Clark de Mexico, S.A. (Paper & Forest Products) 36,609
- ---------------------------------------------------------------------------------------------
22,400 Panamerican Beverages, Inc. (Beverages-Soft Drinks) 982,800
- ---------------------------------------------------------------------------------------------
1,662,354
- ---------------------------------------------------------------------------------------------
NETHERLANDS-3.20%
5,900 Akzo Nobel (Conglomerates) 685,206
- ---------------------------------------------------------------------------------------------
23,000 Elsevier N.V. (Publishing) 346,309
- ---------------------------------------------------------------------------------------------
2,400 Heineken N.V. (Beverages-Alcoholic) 502,270
- ---------------------------------------------------------------------------------------------
10,200 Koninklijke Ahold N.V. (Retail-Food & Drugs) 503,006
- ---------------------------------------------------------------------------------------------
3,600 Madge Networks N.V.(a) (Computer Networking) 106,200
- ---------------------------------------------------------------------------------------------
6,000 Nutricia Verenigde Bedrijven N.V. (Food/Processing) 641,144
- ---------------------------------------------------------------------------------------------
7,000 Oce-Van Der Grinten N.V. (Office Automation) 643,420
- ---------------------------------------------------------------------------------------------
3,400 Royal Dutch Petroleum Co. (Oil & Gas-Services) 484,354
- ---------------------------------------------------------------------------------------------
15,500 Ver Ned Uitgevuer Bezit N.V. (Publishing) 260,519
- ---------------------------------------------------------------------------------------------
2,850 Wolters Kluwer N.V. (Publishing) 311,529
- ---------------------------------------------------------------------------------------------
4,483,957
- ---------------------------------------------------------------------------------------------
NORWAY-0.38%
8,000 Norsk Hydro A.S. (Chemicals) 365,319
- ---------------------------------------------------------------------------------------------
35,000 UNI Storebrand A.S.(a) (Insurance-Life & Health) 166,753
- ---------------------------------------------------------------------------------------------
532,072
- ---------------------------------------------------------------------------------------------
PHILIPPINES-1.20%
636,000 C&P Homes, Inc.(a) (Homebuilding) 546,809
- ---------------------------------------------------------------------------------------------
687,800 Filinvest Land Inc.(a) (Real Estate) 354,807
- ---------------------------------------------------------------------------------------------
1,981,000 Metro Pacific Corp.(a) (Conglomerates) 469,324
- ---------------------------------------------------------------------------------------------
11,500 Metropolitan Banks & Trusts Co. (Banking) 309,801
- ---------------------------------------------------------------------------------------------
1,680,741
- ---------------------------------------------------------------------------------------------
PORTUGAL-0.26%
17,000 Portugal Telecom S.A.(a) (Telecommunications) 369,782
- ---------------------------------------------------------------------------------------------
SINGAPORE-2.00%
65,000 City Developments Ltd. (Real Estate) 568,715
- ---------------------------------------------------------------------------------------------
182,000 DBS Land Ltd. (Real Estate) 737,943
- ---------------------------------------------------------------------------------------------
124,000 Far East Levingston Shipbuilding Ltd.
(Transportation-Miscellaneous) 723,289
- ---------------------------------------------------------------------------------------------
98,000 Overseas Union Bank Ltd. (Banking) 759,852
- ---------------------------------------------------------------------------------------------
2,789,799
- ---------------------------------------------------------------------------------------------
SOUTH AFRICA-0.37%
49,550 Sasol Ltd. (Oil & Gas-Exploration & Production) 516,146
- ---------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 18
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
SPAIN-3.02%
24,000 Centros Comerciales Pryca, S.A. (Retail-Food & Drugs) $ 553,774
- ---------------------------------------------------------------------------------------------
9,900 Corporacion Mapfre Compania Internacional de Reaseguros S.A.
(Insurance-Broker) 498,113
- ---------------------------------------------------------------------------------------------
14,600 Empresa Nacional de Electricidad, S.A. (Telephone) 917,091
- ---------------------------------------------------------------------------------------------
2,100 Gas Natural SDG-E.S.A. (Natural Gas Pipeline) 381,698
- ---------------------------------------------------------------------------------------------
77,000 Iberdrola S.A. (Electric Power) 753,656
- ---------------------------------------------------------------------------------------------
7,000 Repsol S.A. (Oil & Gas-Services) 256,722
- ---------------------------------------------------------------------------------------------
19,000 Tabacalera S.A. (Tobacco) 866,352
- ---------------------------------------------------------------------------------------------
4,227,406
- ---------------------------------------------------------------------------------------------
SWEDEN-1.11%
7,550 Astra AB (Medical-Drugs) 335,662
- ---------------------------------------------------------------------------------------------
2,500 Astra AB-B Shares (Medical-Drugs) 110,409
- ---------------------------------------------------------------------------------------------
5,900 Autoliv AB (Automobile/Truck Parts & Tires) 321,900
- ---------------------------------------------------------------------------------------------
6,100 Securitas AB (Security & Safety Services) 350,802
- ---------------------------------------------------------------------------------------------
11,250 Skandia Forsakrings AB (Insurance-Multi-Line Property) 257,130
- ---------------------------------------------------------------------------------------------
9,000 Telefonaktiebolaget L.M. Ericsson-ADR (Telecommunications) 183,375
- ---------------------------------------------------------------------------------------------
1,559,278
- ---------------------------------------------------------------------------------------------
SWITZERLAND-2.37%
750 ADIA SA (Business Services) 164,304
- ---------------------------------------------------------------------------------------------
820 Ciba-Geigy Ltd. (Chemicals) 951,692
- ---------------------------------------------------------------------------------------------
25 Roche Holdings A.G. (Medical-Drugs) 196,621
- ---------------------------------------------------------------------------------------------
800 Sandoz A.G. (Chemicals) 873,711
- ---------------------------------------------------------------------------------------------
500 Schindler Holding A.G. (Engineering & Construction) 547,680
- ---------------------------------------------------------------------------------------------
600 Swissair A.G. (Airline)(a) 592,945
- ---------------------------------------------------------------------------------------------
3,326,953
- ---------------------------------------------------------------------------------------------
THAILAND-0.78%
50,000 Bank of Ayudhya Ltd. (Banking) 295,114
- ---------------------------------------------------------------------------------------------
21,900 Siam Commercial Bank PLC (Banking) 322,716
- ---------------------------------------------------------------------------------------------
41,300 Thai Farmers Bank PLC (Banking) 474,440
- ---------------------------------------------------------------------------------------------
1,092,270
- ---------------------------------------------------------------------------------------------
UNITED KINGDOM-5.57%
24,300 Argos PLC (Retail-Stores) 237,220
- ---------------------------------------------------------------------------------------------
24,200 B.A.T. Industries PLC (Tobacco) 183,057
- ---------------------------------------------------------------------------------------------
30,050 Bank of Ireland (Banking) 217,131
- ---------------------------------------------------------------------------------------------
24,000 Bass PLC (Beverages-Alcoholic) 283,065
- ---------------------------------------------------------------------------------------------
18,600 BOC Group PLC (Chemical-Specialty) 258,714
- ---------------------------------------------------------------------------------------------
31,000 British Petroleum Co. PLC (Oil & Gas-Exploration & Production) 279,761
- ---------------------------------------------------------------------------------------------
117,200 Burton Group PLC (Retail-Stores) 276,107
- ---------------------------------------------------------------------------------------------
26,200 Compass Group PLC (Food Processing) 215,737
- ---------------------------------------------------------------------------------------------
53,300 Cookson Group PLC (Conglomerates) 249,932
- ---------------------------------------------------------------------------------------------
500 Danka Business Systems PLC-ADR (Office Automation) 24,000
- ---------------------------------------------------------------------------------------------
76,000 Dixons Group PLC (Retail-Stores) 564,022
- ---------------------------------------------------------------------------------------------
39,000 GKN PLC (Automobile/Truck Parts & Tires) 576,810
- ---------------------------------------------------------------------------------------------
50,700 Granada Group PLC (Leisure & Recreation) 628,503
- ---------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 19
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
United Kingdom-continued
67,200 Medeva PLC (Medical-Drugs) $ 259,474
- ---------------------------------------------------------------------------------------------
77,000 Next PLC (Retail-Stores) 614,331
- ---------------------------------------------------------------------------------------------
18,000 Orange PLC-ADR (Telecommunications) 324,000
- ---------------------------------------------------------------------------------------------
23,000 Premier Farnell PLC (Electronic Components/Miscellaneous) 254,825
- ---------------------------------------------------------------------------------------------
19,700 Provident Financial PLC (Finance-Consumer Credit) 284,692
- ---------------------------------------------------------------------------------------------
29,000 Rentokil Group PLC (Business Services) 167,635
- ---------------------------------------------------------------------------------------------
34,000 Siebe PLC (Electronic Components/Miscellaneous) 439,651
- ---------------------------------------------------------------------------------------------
30,000 Smiths Industries PLC (Electronic/Defense) 319,283
- ---------------------------------------------------------------------------------------------
41,500 Standard Chartered PLC (Banking) 388,574
- ---------------------------------------------------------------------------------------------
5,200 Thorn EMI PLC (Leisure & Recreation) 144,227
- ---------------------------------------------------------------------------------------------
200,000 WPP Group PLC (Advertising/Broadcasting) 612,675
- ---------------------------------------------------------------------------------------------
7,803,426
- ---------------------------------------------------------------------------------------------
Total Foreign Stocks & Other Equity Interests 83,312,260
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT CONVERTIBLE BONDS-0.55%
<S> <C> <C>
$ 100,000 Danka Business Systems PLC, Conv. Yankee Bonds, 6.75%, 04/01/02
(Office Automation) (Acquired 10/26/95; Cost $128,000)(b) 174,625
- ---------------------------------------------------------------------------------------------
120,000 Healthsource, Inc., Conv. Deb., 5.00%, 03/01/03
(Medical-Patient Services) (Acquired 03/18/96-03/20/96; Cost
$124,246)(b) 117,600
- ---------------------------------------------------------------------------------------------
230,000 MBL Intl Finance Bermuda, Conv. Yankee Bonds, 3.00%, 11/30/02
(Banking) 267,375
- ---------------------------------------------------------------------------------------------
82,000 Metro Pacific Corp., Conv. Yankee Bonds, 2.50%, 04/11/03
(Consumer Non-Durables) (Acquired 04/15/96; Cost $83,845)(b) 85,587
- ---------------------------------------------------------------------------------------------
100,000 Thermo Electron Corp., Conv. Sub. Notes, 4.25%, 01/01/03
(Machinery-Miscellaneous) (Acquired 03/18/96; Cost $123,120)(b) 122,250
- ---------------------------------------------------------------------------------------------
Total Convertible Bonds 767,437
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT-4.13%(C)
5,784,206 Daiwa Securities America Inc., 5.34%, 05/01/96(d) 5,784,206
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-97.67% 136,865,609
- ---------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-2.33% 3,269,433
- ---------------------------------------------------------------------------------------------
NET ASSETS-100.00% $140,135,042
=============================================================================================
</TABLE>
ABBREVIATIONS:
ADR-American Depository Receipt
Conv.-Convertible
Sub.-Subordinated
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Restricted securities. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 04/30/96 was $500,062 which
represented 0.36% of the Fund's net assets.
(c) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(d) Joint repurchase agreement entered into 04/30/96 with a maturing value of
$767,124,680. Collateralized by $737,151,000 U.S. Treasury obligations, 0%
to 11.25% due 05/15/96 to 02/15/21.
See Notes to Financial Statements.
17
<PAGE> 20
Financials
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $122,640,929) $136,865,609
- ----------------------------------------------------------------------------------------
Foreign currencies, at market value (cost $3,678,705) 3,662,328
- ----------------------------------------------------------------------------------------
Receivables for:
Investments sold 1,974,341
- ----------------------------------------------------------------------------------------
Capital stock sold 2,388,020
- ----------------------------------------------------------------------------------------
Dividends and interest 263,550
- ----------------------------------------------------------------------------------------
Reimbursement from advisor 2,110
- ----------------------------------------------------------------------------------------
Investment for deferred compensation plan 3,741
- ----------------------------------------------------------------------------------------
Other assets 104,597
- ----------------------------------------------------------------------------------------
Total assets 145,264,296
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 4,768,149
- ----------------------------------------------------------------------------------------
Capital stock reacquired 133,098
- ----------------------------------------------------------------------------------------
Deferred compensation 3,741
- ----------------------------------------------------------------------------------------
Accrued advisory fees 89,669
- ----------------------------------------------------------------------------------------
Accrued administrative services fees 5,019
- ----------------------------------------------------------------------------------------
Accrued distribution fees 86,587
- ----------------------------------------------------------------------------------------
Accrued transfer agent fees 33,230
- ----------------------------------------------------------------------------------------
Accrued operating expenses 9,761
- ----------------------------------------------------------------------------------------
Total liabilities 5,129,254
- ----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $140,135,042
========================================================================================
NET ASSETS:
Class A $ 73,894,462
========================================================================================
Class B $ 66,240,580
========================================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- ----------------------------------------------------------------------------------------
Outstanding 5,409,176
========================================================================================
Class B:
Authorized 200,000,000
- ----------------------------------------------------------------------------------------
Outstanding 4,886,292
========================================================================================
Class A:
Net asset value and redemption price per share $ 13.66
========================================================================================
Offering price per share:
(Net asset value of $13.66 divided by 95.25%) $ 14.34
========================================================================================
Class B:
Net asset value and offering price per share $ 13.56
========================================================================================
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 21
Financials
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $50,663 foreign withholding tax) $ 546,995
- -----------------------------------------------------------------------------------------
Interest 252,378
- -----------------------------------------------------------------------------------------
Total investment income 799,373
- -----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 348,314
- -----------------------------------------------------------------------------------------
Administrative services fees 33,255
- -----------------------------------------------------------------------------------------
Directors' fees 3,337
- -----------------------------------------------------------------------------------------
Distribution fees -- Class A 111,891
- -----------------------------------------------------------------------------------------
Distribution fees -- Class B 186,254
- -----------------------------------------------------------------------------------------
Custodian fees 95,077
- -----------------------------------------------------------------------------------------
Transfer agent fees -- Class A 58,623
- -----------------------------------------------------------------------------------------
Transfer agent fees -- Class B 66,347
- -----------------------------------------------------------------------------------------
Other 43,309
- -----------------------------------------------------------------------------------------
Total expenses 946,407
- -----------------------------------------------------------------------------------------
Less expenses assumed by advisor (11,719)
- -----------------------------------------------------------------------------------------
Net expenses 934,688
- -----------------------------------------------------------------------------------------
Net investment income (loss) (135,315)
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES, FOREIGN
CURRENCIES AND FUTURES CONTRACTS:
Net realized gain (loss) on sales of:
Investment securities 386,971
- -----------------------------------------------------------------------------------------
Foreign currencies (13,231)
- -----------------------------------------------------------------------------------------
Futures contracts (262,996)
- -----------------------------------------------------------------------------------------
110,744
- -----------------------------------------------------------------------------------------
Net unrealized appreciation of:
Investment securities 11,242,188
- -----------------------------------------------------------------------------------------
Foreign currencies 19,570
- -----------------------------------------------------------------------------------------
11,261,758
- -----------------------------------------------------------------------------------------
Net gain on investment securities, foreign currencies and futures contracts 11,372,502
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $11,237,187
=========================================================================================
</TABLE>
See Notes to Financial Statements.
19
<PAGE> 22
Financials
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1996 and the year ended October 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1996 1995
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (135,315) $ (83,769)
- --------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment
securities, foreign currencies and futures contracts 110,744 945,395
- --------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
foreign currencies 11,261,758 2,866,448
- --------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 11,237,187 3,728,074
- --------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (2,116)
- --------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (516,238) --
- --------------------------------------------------------------------------------------------
Class B (412,845) --
- --------------------------------------------------------------------------------------------
Share transactions-net:
Class A 44,515,027 18,511,217
- --------------------------------------------------------------------------------------------
Class B 44,400,819 14,304,173
- --------------------------------------------------------------------------------------------
Net increase in net assets 99,223,950 36,541,348
- --------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 40,911,092 4,369,744
- --------------------------------------------------------------------------------------------
End of period $140,135,042 $ 40,911,092
============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $125,963,489 $ 37,047,643
- --------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (135,390) --
- --------------------------------------------------------------------------------------------
Undistributed net realized gain on sales of investment
securities, foreign currencies and futures contracts 55,937 874,201
- --------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 14,251,006 2,989,248
- --------------------------------------------------------------------------------------------
$140,135,042 $ 40,911,092
============================================================================================
</TABLE>
See Notes to Financial Statements.
20
<PAGE> 23
Financials
NOTES TO FINANCIAL STATEMENTS
April 30, 1996
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Growth Fund (the "Fund") is an investment portfolio of AIM
International Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company consisting of four separate
series portfolios: AIM Global Growth Fund, AIM Global Aggressive Growth Fund,
AIM Global Income Fund and AIM International Equity Fund. The Fund currently
offers two different classes of shares: 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 objectives by investing in a portfolio of global
equity securities of selected companies 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
21
<PAGE> 24
Financials
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES (continued)
contracts are unable to meet the terms of their contracts or if the value of
the foreign currency changes unfavorably.
D. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses are computed on the basis of specific identification of the securities
sold. Interest income is recorded as earned from settlement date and is
recorded on an accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
E. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
F. Stock Index Futures Contracts -- The Fund may purchase or sell stock index
stock index futures contracts as a hedge against changes in market
conditions. Initial margin deposits required upon entering into futures
contracts are satisfied by the segregation of specific securities as
collateral for the account of the broker (the Fund's agent in acquiring the
futures position). During the period the futures contracts are open, changes
in the value of the contracts are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contracts at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are
incurred. When the contracts are closed, the Fund recognizes a realized gain
or loss equal to the difference between the proceeds from, or cost of, the
closing transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and that a change in the value of contracts
may not correlate with changes in the value of the securities being hedged.
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 0.85% of
the first $1 billion of the Fund's average daily net assets, plus 0.80% of the
Fund's average daily net assets in excess of $1 billion. During the six months
ended April 30, 1996, AIM assumed expenses of $6,438 and $5,281 for the Class A
shares and Class B shares, respectively. Under the terms of the master
investment advisory agreement, AIM will, if necessary, reduce its fee or make
payments to the Fund to the extent necessary to satisfy any expense limitations
imposed by the securities laws or regulations thereunder of any state in which
the Fund's shares are qualified for sale.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to reimburse AIM for administrative costs incurred in providing
accounting services to the Fund. During the six months ended April 30, 1996, AIM
was reimbursed $33,255 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency
services to the Fund. During the six months ended April 30, 1996, AFS was paid
$68,969 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A shares and the Class B shares of the Fund. The Company has adopted
distribution Plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class A shares (the "Class A Plan") and with respect to the Fund's Class
B shares (the "Class B Plan") (collectively the "Plans"). The Fund, pursuant to
the Class A Plan, pays AIM Distributors an annual rate of 0.50% of the average
daily net assets attributable to the Class A shares. The Class A Plan is
designed to compensate AIM Distributors for certain promotional and other sales
related costs. Of the total compensation payable, a service fee of 0.25% is paid
to selected dealers and financial institutions who furnish continuing personal
shareholder services to their customers who purchase and own Class A shares of
the Fund. The Fund, pursuant to the Class B Plan, pays AIM Distributors at an
annual rate of 1.00% of the average daily net assets attributable to the Class B
shares. Of this amount, the Fund pays a service fee of 0.25% of the average
daily net assets of the Class B shares to selected dealers and financial
institutions who furnish continuing personal shareholder services to their
customers who purchase and own
22
<PAGE> 25
Financials
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
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
$111,891 and $186,254, respectively, as compensation under the Plans.
AIM Distributors received commissions of $192,253 from the sales of the Class
A shares of the Fund during the six months ended April 30, 1996. Such
commissions are not an expense of the Fund. They are deducted from, and are not
included in, the proceeds from sales of Class A shares. During the six months
ended April 30, 1996, AIM Distributors received commissions of $147 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
$1,682 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 $300,000 under a committed line of credit with Chemical Bank
of New York. Interest on borrowings under the line of credit is payable on
maturity or prepayment date. During the six months ended April 30, 1996, the
Fund did not borrow under the line of credit agreement. The Fund is charged an
administrative fee, payable quarterly, at the annual rate of $300.
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
$119,433,594 and $34,904,700, 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 $15,161,089
- ----------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (983,923)
- ----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $14,177,166
========================================================================================
</TABLE>
Cost of investments for tax purposes is $122,688,443.
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 3,652,912 $46,748,815 1,836,306 $20,814,602
- ----------------------------------------------------------------------------------------------------
Class B 3,623,989 46,183,826 1,403,515 15,741,389
- ----------------------------------------------------------------------------------------------------
Issued as reinvestment of distributions:
Class A 36,930 453,130 171 1,642
- ----------------------------------------------------------------------------------------------------
Class B 31,124 379,711 -- --
- ----------------------------------------------------------------------------------------------------
Reacquired:
Class A (208,537) (2,686,918) (210,976) (2,305,027)
- ----------------------------------------------------------------------------------------------------
Class B (168,528) (2,162,718) (128,718) (1,437,216)
- ----------------------------------------------------------------------------------------------------
6,967,890 $88,915,846 2,900,298 $32,815,390
====================================================================================================
</TABLE>
23
<PAGE> 26
Financials
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share and a
Class B share outstanding during the six months ended April 30, 1996, the year
ended October 31, 1995 and the period September 15, 1994 (date operations
commenced) through October 31, 1994.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, -------------------------
1996 1995 1994
--------- -------- --------
<S> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 12.32 $ 10.23 $ 10.00
- -------------------------------------------------------- --------- -------- --------
Income from investment operations:
Net investment income (loss) (0.01)(b) (0.02) -
- -------------------------------------------------------- --------- -------- --------
Net gains on securities (both realized and unrealized) 1.57 2.11 0.23
- -------------------------------------------------------- --------- -------- --------
Total from investment operations 1.56 2.09 0.23
- -------------------------------------------------------- --------- -------- --------
Less distributions:
Dividends from net investment income - (0.004) -
- -------------------------------------------------------- --------- -------- --------
Distribution from net realized capital gains (0.22) - -
- -------------------------------------------------------- --------- -------- --------
Total distributions (0.22) (0.004) -
- -------------------------------------------------------- --------- -------- --------
Net asset value, end of period $ 13.66 $ 12.32 $ 10.23
- -------------------------------------------------------- ========= ======== ========
Total return(a) 12.80% 20.48% 2.30%
- -------------------------------------------------------- ========= ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 73,894 $ 23,754 $ 3,093
- -------------------------------------------------------- ========= ======== ========
Ratio of expenses to average net assets 2.03%(c)(d) 2.12%(d) 1.95%(d)
- -------------------------------------------------------- ========= ======== ========
Ratio of net investment income (loss) to average net
assets (0.09)%(c)(e) (0.28)(e) 0.10%(e)
- -------------------------------------------------------- ========= ======== ========
Portfolio turnover rate 48% 79% 6%
- -------------------------------------------------------- ========= ======== ========
</TABLE>
(a) Does not deduct 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 $45,127,340.
(d) After fee waivers and expense reimbursements. Ratios of expenses to average
net assets before fee waivers and expense reimbursements are 2.06%
(annualized), 2.98% and 5.67% (annualized), respectively for 1996, 1995 and
1994.
(e) After fee waivers and expense reimbursements. Ratios of net investment
income (loss) to average net assets before fee waivers and expense
reimbursements are (0.11)% (annualized), (1.14)% and (3.63)% (annualized),
respectively for 1996, 1995 and 1994.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, -------------------------
1996 1995 1994
--------- -------- --------
<S> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 12.26 $ 10.22 $ 10.00
- -------------------------------------------------------- --------- -------- --------
Income from investment operations:
Net investment income (loss) (0.04)(b) (0.04) -
- -------------------------------------------------------- --------- -------- --------
Net gains on securities (both realized and unrealized) 1.56 2.08 0.22
- -------------------------------------------------------- --------- -------- --------
Total from investment operations 1.52 2.04 0.22
- -------------------------------------------------------- --------- -------- --------
Less distributions:
Distributions from net realized capital gains (0.22) - -
- -------------------------------------------------------- --------- -------- --------
Total distributions (0.22) - -
- -------------------------------------------------------- --------- -------- --------
Net asset value, end of period $ 13.56 $ 12.26 $ 10.22
- -------------------------------------------------------- ========= ======== ========
Total return(a) 12.53% 19.96% 2.20%
- -------------------------------------------------------- --------- -------- --------
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 66,241 $ 17,157 $ 1,277
- -------------------------------------------------------- ========= ======== ========
Ratio of expenses to average net assets 2.57%(c)(d) 2.64%(d) 2.51%(d)
- -------------------------------------------------------- ========= ======== ========
Ratio of net investment income (loss) to average net
assets (0.62)%(c)(e) (0.79)%(e) (0.47)%(e)
- -------------------------------------------------------- ========= ======== ========
Portfolio turnover rate 48% 79% 6%
- -------------------------------------------------------- ========= ======== ========
</TABLE>
(a) Does not deduct 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 $37,559,496.
(d) After fee waivers and expense reimbursements. Ratios of expenses to average
net assets before fee waivers and expense reimbursements are 2.60%
(annualized), 3.38% and 6.20% (annualized), respectively for 1996, 1995 and
1994.
(e) After fee waivers and expense reimbursements. Ratios of net investment
income (loss) to average net assets before fee waivers and expense
reimbursements are (0.65)% (annualized), (1.54)% and (4.16)% (annualized),
respectively for 1996, 1995 and 1994.
24
<PAGE> 27
Directors &
Officers
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
CHARLES T. BAUER CHARLES T. BAUER 11 Greenway Plaza
Chairman and Chief Executive Officer Chairman Suite 1919
A I M Management Group Inc. Houston, TX 77046
ROBERT H. GRAHAM
BRUCE L. CROCKETT President INVESTMENT ADVISOR
Director, President, and Chief
Executive Officer JOHN J. ARTHUR A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 1919
OWEN DALY II GARY T. CRUM Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
SCOTT G. LUCAS
CARL FRISCHLING Senior Vice President A I M Fund Services, Inc.
Partner P.O. Box 4739
Kramer, Levin, Naftalis, Nessen, CAROL F. RELIHAN Houston, TX 77210-4739
Kamin & Frankel Senior Vice President and Secretary <PAGE>
ROBERT H. GRAHAM DANA R. SUTTON CUSTODIAN
President and Chief Operating Officer Vice President and Assistant Treasurer
A I M Management Group Inc. State Street Bank & Trust Company
ROBERT G. ALLEY 225 Franklin Street
JOHN F. KROEGER Vice President Boston, MA 02110
Formerly, Consultant
Wendell & Stockel Associates, Inc. MELVILLE B. COX COUNSEL TO THE FUND
Vice President
LEWIS F. PENNOCK Ballard Spahr
Attorney JONATHAN C. SCHOOLAR Andrews & Ingersoll
Vice President 1735 Market Street
IAN W. ROBINSON Philadelphia, PA 19103
Consultant; Formerly Executive P. MICHELLE GRACE
Vice President and Assistant Secretary COUNSEL TO THE DIRECTORS
Chief Financial Officer
Bell Atlantic Management Services, Inc. DAVID L. KITE Kramer, Levin, Naftalis,
Assistant Secretary Nessen, Kamin & Frankel
LOUIS S. SKLAR 919 Third Avenue
Executive Vice President NANCY L. MARTIN New York, NY 10022
Hines Interests Assistant Secretary
Limited Partnership DISTRIBUTOR
OFELIA M. MAYO
Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
KATHLEEN J. PFLUEGER Suite 1919
Assistant Secretary Houston, TX 77046
SAMUEL D. SIRKO
Assistant Secretary
STEPHEN I. WINER
Assistant Secretary
MARY J. BENSON
Assistant Treasurer
</TABLE>
<PAGE> 28
<TABLE>
<S> <C>
[PHOTO OF 11 GREENWAY PLAZA] THE AIM FAMILY OF FUNDS(R)
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Blue Chip Fund
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH
AIM Global Utilities Fund*
HIGH CURRENT INCOME
AIM High Yield Fund
CURRENT INCOME
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of CT
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE
OF SAFETY
AIM Intermediate Government Fund**
HIGH DEGREE OF SAFETY AND
CURRENT INCOME
AIM Limited Maturity Treasury Shares
STABILITY, LIQUIDITY, AND
CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND
CURRENT TAX-FREE INCOME
AIM Management Group has provided leadership AIM Tax-Exempt Cash Fund
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
[AIM LOGO APPEARS HERE] U.S. POSTAGE
PAID
A I M Distributors, Inc. HOUSTON, TX
11 Greenway Plaza, Suite 1919 Permit No. 1919
Houston, TX 77046 --------------------
</TABLE>
