<PAGE> 1
AIM GLOBAL AGGRESSIVE
GROWTH FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1997
<PAGE> 2
-------------------------------------------
AIM GLOBAL AGGRESSIVE GROWTH FUND
For shareholders who seek long-term growth
of capital. The Fund invests in a portfolio
of global equity securities of small
capitalization companies with
above-average earnings momentum.
-------------------------------------------
About Fund performance and portfolio data throughout this report:
o AIM Global Aggressive Growth Fund's performance figures are historical
and reflect reinvestment of all distributions and changes in net asset
value. Unless otherwise indicated, the Fund's performance is computed
without a sales charge.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B share
performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines
from 5% beginning at the time of purchase to 0% at the beginning of
the seventh year. The performance of the Fund's Class B shares will
differ from that of Class A shares due to differences in sales charge
structure and Fund expenses.
o The Fund's investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less
than their original cost.
o The Fund's portfolio composition is subject to change and there is no
assurance the Fund will continue to hold any particular security.
o Past performance cannot guarantee comparable future results.
o International investing presents certain risks not associated with
in-vesting 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 Small- Cap Fund Index
represents an average of the performance of the 30 largest
small-company mutual funds tracked by Lipper.
o The Morgan Stanley Capital International World Index is a group of
un-managed 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.
Mutual funds, annuities, and other investments are not insured by the
FDIC or any other government agency; are not deposits or other
obligations of, or guaranteed by, any bank or any affiliate;
and are subject to investment risks, including possible loss
of principal amount invested.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
<PAGE> 3
The Chairman's Letter
Dear Fellow Shareholder:
We have seen a great deal of change in the markets
[PHOTO OF during the past few months, change that has been
Charles T. unsettling even for experienced market watchers.
Bauer, In many instances the change has occurred suddenly
Chairman of as the markets have fluctuated widely during the past
the Board six months. The popular Dow Jones Industrial Average
of THE FUND, of 30 large companies ranged from just over 7000 to
APPEARS HERE] just below 6400 before strengthening once again and
regaining its lost ground. Both the Russell 2000
Index, judged to be the benchmark for small-cap
stocks, and the Dow recently have set records.
The point we want to emphasize is that such volatility seems to be the norm
rather than the exception in the current market. Although most attention has
been on the large stocks in the S&P 500 index, the broad-based index generally
considered "the market," small- and mid-cap companies have been even more
volatile. Indexes for smaller companies were down as much as 20% before their
recent rebound. Similarly, bonds fluctuated widely as concerns mounted over the
possibility of rising interest rates.
What does all of this mean? In past reports, we suggested that the 20%-30%
returns of 1995 and 1996 were unlikely to continue uninterrupted, and we have
seen that to be true so far in 1997. However, we are still experiencing the
longest bull market in history, now in its seventh year. For hundreds of
thousands of investors, this bull market is the only investment climate they
have ever known. If you have been invested in stocks only since 1990, your
experience has truly been extraordinary: the S&P 500 had an annual return of
30% in 1991, 38% in 1995, and 23% in 1996. And not one down year.
Of course, returns such as those we've enjoyed in this bull market are well
above the averages for stocks. That has led mutual fund managers, financial
consultants, and market experts to voice concern that some investors may not be
prepared for more modest returns that are in line with historical averages.
And, although we've seen nothing but advances in the S&P 500 since 1990, it is
important to remember that the market has averaged a down year one out of every
three years since 1928.
KEEP REALISTIC EXPECTATIONS
What many investors may not realize is that periodic declines are inevitable.
In every market, there is always some segment, and some investment strategies,
that occasionally fall out of favor. Declines similar to what we have seen in
the small-cap and mid-cap sectors during the past six months often are more
severe than warranted; that is, they take good stocks down with the bad. Of
course, that lets us pick stocks just as prices for many attractive companies
are near their lowest for the year.
Not that we expect severe declines ahead. But it is important to maintain
realistic expectations about investment performance. Indeed, indications are
that stock performance may be returning to historic norms closer to 10% return
per year than 20%.
It's also a good idea to reassess your financial goals periodically with your
financial consultant. Managing your investments in changing markets can be
challenging. But your financial consultant knows a few time-tested investment
strategies that can help. Diversification can help you cushion the effects of
volatility.
-------------------------------
In every market,
there is always some segment,
and some investment strategies,
that occasionally fall
out of favor.
-------------------------------
Continued on next page
<PAGE> 4
The Chairman's Letter
--------------------------
It's also a good idea
to reassess
your financial goals
periodically with
your financial consultant.
--------------------------
On the following pages, your Fund's portfolio management team offers a
complete discussion of recent market conditions and how the Fund was affected.
They also discuss the Fund's portfolio strategy: why they believe the portfolio
is well-positioned for growth, and why they are confident that the reasons for
investing in the Fund are as compelling as ever. These discussions will help
you better understand the relative performance of your Fund.
AIM/INVESCO MERGER FINALIZED
We are pleased to announce that the merger of A I M Management Group Inc. and
INVESCO plc was concluded on February 28, 1997. AIM is now part of one of the
world's largest independent investment management groups with approximately
$170 billion in assets under management. The combined company, AMVESCAP plc,
has the financial strength necessary to meet your needs in an increasingly
competitive financial services environment, both in the United States and
worldwide. And, we will not change the portfolio management, investment style,
or name of any of the AIM funds you own. We have begun a new and promising era
for AIM, one we believe will yield exciting opportunities.
We appreciate the trust you have placed in us and we look forward to our
continued close association. If you have any questions or comments about this
report, we invite you to call Client Services at 800-959-4246 during normal
business hours. For automated account information 24 hours a day, call the AIM
Investor Line at 800-246-5463. We also invite you to visit AIM's Internet Web
site at www.aimfunds.com.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
2
<PAGE> 5
The Managers' Overview
GLOBAL DIVERSIFICATION HELPS SMALL-CAP INVESTORS
- --------------------------------------------------------------------------------
A roundtable discussion with the Fund management team for AIM Global Aggressive
Growth Fund for the six-month period ended April 30, 1997.
Q. U.S. MARKETS WERE PARTICULARLY VOLATILE DURING THE REPORTING PERIOD.
HOW DID THAT AFFECT THE PERFORMANCE OF AIM GLOBAL AGGRESSIVE GROWTH
FUND?
A. The U.S. market had a significant influence on the Fund's total return
during the six-month period: -1.52% for Class A shares and -1.73% for
Class B shares. However, the Fund's performance was aided by its
diversification into foreign stocks. By comparison, the average
domestic small-company stock fund declined 8.86% in total return over
the same period, as measured by the Lipper Small-Cap Funds Index.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE DURING THIS PERIOD?
A. Three factors shaped the global market environment for the Fund:
o a capricious U.S. market that favored large-cap stocks over
small-cap stocks,
o the narrowness of the U.S. market, and
o strong performance in several overseas markets, particularly
Europe.
Q. HOW DID THE UNSETTLED U.S. MARKETS AFFECT THE PERFORMANCE OF SMALL-CAP
STOCKS?
A. Dramatic market volatility, uneasiness about earnings trends, and
concerns about the pace of economic growth have driven investors to
the relative safety and liquidity of stocks in large, predictable
companies. As a result, large-company stocks continued to outperform
small-company stocks during the reporting period.
It's a phenomenon often termed a "flight to quality."
Historically, small-cap stocks have offered excellent returns for
investors over the long term, but they do tend to be more volatile
than stocks of large, better-known corporations.
Of the Fund's 591 holdings, approximately 35% was invested in
the U.S. as of 4/30/97. The greatest concentrations were in stocks of
technology and health-care companies. Among the largest U.S. holdings
was leading computer maker Dell Computer Corp.
Q. WHAT IS A NARROW MARKET?
A. In a "narrow market," the performance of a market index is generated
by a comparatively few stocks, most recently, a limited range of
extremely large-company stocks. This unusual environment puts mutual
funds at a disadvantage because most tend to diversify holdings into a
blend that may include large, medium, and small companies to manage
risk and optimize return.
However, the average investor still fared better during the reporting
period in a diversified, professionally managed mutual fund than in
individual securities. Many U.S. stocks are down 50% or more from their
1995 peaks.
Q. WHEN DO YOU ANTICIPATE A TURNAROUND FOR U.S. SMALL-CAP STOCKS?
A. There are encouraging signs that the turnaround may be near. Corporate
earnings remain strong, and for a record 17 quarters in a row,
corporate earnings have outstripped analysts' forecasts. There is no
immediate indication of higher interest rates, and that helps
small-company profits by keeping borrowing costs down. That means the
potential for earnings growth remains strong, just as many small-cap
stocks are selling at bargain prices.
Most major market averages have responded recently by retracing their
1997 declines. For the first time in a while,
================================================================================
LIPPER RANKINGS (CLASS A SHARES)
- --------------------------------------------------------------------------------
As of 4/30/97
RANK VS.
GLOBAL SMALL
PERIOD COMPANY FUNDS TOP %
1 YEAR 5 OF 28 18%
================================================================================
The Fund's Class B shares ranked 71 of 168 funds, or in the top 33% for the
year ended 4/30/97.
Fund percentage rankings are vs. all global small-company funds tracked by
Lipper, excluding all sales charges, and including fees and expenses.
================================================================================
TOP 10 COUNTRIES
================================================================================
As of 4/30/97, based on total net assets
1. United States 35.15%
2. United Kingdom 8.07
3. Hong Kong 7.18
4. Japan 4.15
5. Netherlands 3.89
6. Canada 3.15
7. Malaysia 3.10
8. Philippines 2.99
9. France 2.89
10. Brazil 2.70
Please keep in mind that the Fund's portfolio is subject to change and
there is no assurance the Fund will continue to hold any particular security.
================================================================================
See important Fund & index disclosures inside front cover.
3
<PAGE> 6
The Managers' Overview
stocks of smaller companies participated in the rally. Indeed, the Fund's Class
A and Class B shares gained 10.50% and 10.45% in total return, respectively,
since the reporting period ended, 4/30/97 to 6/4/97. It is too early to declare
that the corner has been turned, but it is possible that the narrow market has
at last begun to broaden.
Q. HOW ABOUT THE ENVIRONMENT OUTSIDE THE U.S.?
A. Just as in the U.S., the environment of subdued inflation and low
interest rates has provided a very fertile soil for European
companies, and therefore European markets, to flourish. The primary
factor appears to be strong earnings growth from major export-oriented
companies in the auto, chemical, and machinery industries.
More than 25% of the Fund's portfolio is invested in Europe, with the
largest concentration in the United Kingdom at 8%. Among the Fund's largest
holdings in the U.K. are computer software makers Misys plc and Sema Group.
We reduced our weightings in selected French and German companies, as
market opportunities there stalled with inflation
concerns and political turmoil. However, recent economic indicators
combined to buoy hopes that the German economy will muster stronger
growth without fueling inflation.
Q. HOW WAS THE FUND INVESTED OUTSIDE EUROPE AND THE U.S.?
A. Hong Kong companies represented 7% of the portfolio, the third-largest
weighting in one country. Hong Kong stocks again claimed many of the
Fund's top 10 holdings, including the Fund's largest holding,
conglomerate First Pacific Co., Ltd, followed by transportation
company Cosco Pacific Ltd.
We have lowered our weighting in Japan to 4%, the fourth-largest country
weighting represented in the Fund. The concerns regarding Japan are
numerous and include: lower growth forecasts, an increase in the
consumption tax from 3% to 5%, and limited improvements in corporate profit
margins (other than the help provided by a weaker yen).
Q. We see the Fund has a stronger emphasis on Latin American companies.
A. We are very positive on Latin America, which claimed five of the 10
top-performing world markets during the reporting period. Markets
there have benefited from revised forecasts which pointed toward
faster economic growth and lower inflation. Brazil, where we are
seeing an economic restructuring similar to that in Europe, led all
markets in the six months ended 4/30/97 with a 38.45% return. Brazil's
telecommunications leader Tele-bras was the Fund's third-largest
holding.
Closer to home, the market in Mexico was up 17.13% during the
reporting period, ninth-best in the world. New to the Fund is banker
Grupo Financiero Banamex and beverage maker Fomento Economico
Mexicano, S.A.
Q. The U.S. dollar has been very strong against other currencies. How has
that affected the performance of the portfolio?
A. The strength of the dollar presents an interesting scenario. It does
hurt foreign investments in the short term, because when foreign
currency values decline against the U.S. dollar, our
non-dollar-denominated foreign assets in the Fund are valued lower.
However, over the long term, a strong dollar helps make exporting
countries more competitive--their goods become comparatively less
expensive than U.S. goods. That helps generate higher profits, and
higher stock prices for the Fund's foreign investments.
In the end, we believe the currency exchange differentials have little
effect on the Fund's long-term performance.
Q. What is your outlook for the Fund?
A. Conditions are favorable for foreign markets in general, Europe in
particular. The most recent Morgan Stanley data indicate that the
European stock market is attractively priced--two times book value for
European indexes versus a little over three times book value on the
U.S.
The world markets in many ways take their lead from the U.S. economy.
Therefore, it is good news for foreign markets that the U.S.
economy continues to grow at a healthy, but manageable pace.
Importantly, there is no evidence of rising inflation, and that
reduces the likelihood of higher interest rates which could erode
corporate profits.
Nonetheless, it is important that investors maintain realistic
expectations about investment performance. We have enjoyed
record-breaking returns from stocks in recent years, but indications
are that stock performance may be returning to historic norms that
bear closer to 10% per year than 20%.
================================================================================
TOP 10 EQUITY HOLDINGS
================================================================================
As of 4/30/97, based on total net assets
- --------------------------------------------------------------------------------
1. First Pacific Co. Ltd. 0.75%
2. Cosco Pacific Ltd. 0.74
3. Telcomunicacoes Brasileiras S.A. Telebras-ADR 0.73
4. China Resources Enterprise, Ltd. 0.70
5. Panamerican Beverages, Inc.-Class A 0.68
6. Shanghai Industrial Holdings Ltd. 0.67
7. PT Bank Internasional Indonesia 0.66
8. Perez Companc. S.A.-Class B 0.64
9. Sun Hung Kai Properties Ltd. 0.63
10. Noritsu Koki Co. Ltd. 0.63
================================================================================
See important Fund & index disclosures inside front cover.
4
<PAGE> 7
Long-Term Performance
AIM Global Aggressive Growth Fund vs. Benchmark Index
The chart below compares your Fund to a benchmark index. It is intended to give
you a general idea of how your Fund performed compared to the stock market over
the period since inception, 9/15/94 to 4/30/97. It is important to understand
the difference between your Fund and an index. An index measures the
performance of hypothetical portfolios, in this case the Morgan Stanley Capital
International World Index. Unlike your Fund, an index is not managed; therefore
there are no sales charges, expenses, or fees. You cannot invest in an index.
But if you could buy all the securities that make up a particular index, you
would incur expenses that would affect the return on your investment.
================================================================================
AVERAGE ANNUAL TOTAL RETURN
As of 3/31/97. the most recent calendar quarter. Including sales charges.
CLASS A SHARES
Inception (9/15/94) 17.44%
1 Year 3.90*
*9.08% excluding sales charge.
CLASS B SHARES
Inception (9/15/94) 18.18%
1 Year 3.53*
*8.53% excluding sales charge.
================================================================================
GROWTH OF A $10,000 INVESTMENT
9/15/94-4/30/97
Past performance cannot guarantee comparable future results.
- --------------------------------------------------------------------------------
AIM GLOBAL AGGRESSIVE AIM GLOBAL AGGRESSIVE MSCI WORLD
GROWTH FUND, CLASS A GROWTH FUND, CLASS B INDEX
- --------------------------------------------------------------------------------
(In thousands)
9/15/94 9,524 10,000 10,000
11/94 9,505 9,970 9,585
2/95 9,590 10,050 9,677
5/95 10,676 11,170 10,593
8/95 12,352 12,910 10,878
11/95 12,524 13,070 11,407
2/96 13,505 14,080 12,033
5/96 15,369 15,997 12,538
8/96 14,738 15,315 12,303
11/96 15,503 16,098 13,602
2/97 15,598 16,168 13,708
4/97 14,834 15,065 13,881
===============================================================================
Your Fund's total return includes sales charges, expenses, and management fees.
For Fund performance calculations and descriptions of indexes cited on this
page, please refer to the inside front cover. Results for MSCI World Index are
for the period 8/30/94 to 4/30/97.
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-35.06%
ADVERTISING/BROADCASTING-0.90%
CKS Group, Inc.(a) 100,000 $ 2,112,500
- -------------------------------------------------------------------
Clear Channel Communications, Inc.(a) 124,600 6,043,100
- -------------------------------------------------------------------
Heftel Broadcasting Corp.(a) 133,800 6,690,000
- -------------------------------------------------------------------
Jacor Communications, Inc.(a) 65,500 1,842,188
- -------------------------------------------------------------------
Telemundo Group, Inc.-Class A(a) 100,000 2,625,000
- -------------------------------------------------------------------
19,312,788
- -------------------------------------------------------------------
AEROSPACE/DEFENSE-0.21%
BE Aerospace, Inc.(a) 137,500 3,385,938
- -------------------------------------------------------------------
REMEC, Inc.(a) 50,000 1,150,000
- -------------------------------------------------------------------
4,535,938
- -------------------------------------------------------------------
AUTOMOBILE/TRUCK PARTS & TIRES-0.03%
Borg-Warner Automotive, Inc. 8,000 336,000
- -------------------------------------------------------------------
Mark IV Industries, Inc. 16,538 384,497
- -------------------------------------------------------------------
720,497
- -------------------------------------------------------------------
BANKING-0.42%
Bank of Boston Corp. 45,000 3,273,750
- -------------------------------------------------------------------
Bank United Corp.-Class A(a) 150,000 4,575,000
- -------------------------------------------------------------------
First Savings Bank of Washington
Bancorp, Inc. 50,000 1,050,000
- -------------------------------------------------------------------
8,898,750
- -------------------------------------------------------------------
BEVERAGES (ALCOHOLIC)-0.15%
Cerner Corp.(a) 202,000 3,257,250
- -------------------------------------------------------------------
BIOTECHNOLOGY-0.10%
Biogen, Inc.(a) 63,900 2,044,800
- -------------------------------------------------------------------
BUSINESS SERVICES-0.90%
AccuStaff, Inc.(a) 120,000 2,190,000
- -------------------------------------------------------------------
Caribiner International, Inc.(a) 50,000 2,650,000
- -------------------------------------------------------------------
Claremont Technology Group, Inc.(a) 38,400 518,400
- -------------------------------------------------------------------
CUC International, Inc.(a) 56,550 1,194,618
- -------------------------------------------------------------------
Data Processing Resources Corp.(a) 13,500 248,063
- -------------------------------------------------------------------
Equifax, Inc. 5,200 149,500
- -------------------------------------------------------------------
IntelliQuest Information Group,
Inc.(a) 70,000 1,137,500
- -------------------------------------------------------------------
NOVA Corp.(a) 150,000 2,700,000
- -------------------------------------------------------------------
Pharmaceutical Product Development,
Inc.(a) 100,000 1,675,000
- -------------------------------------------------------------------
RemedyTemp, Inc.-Class A(a) 38,000 579,500
- -------------------------------------------------------------------
Robert Half International, Inc.(a) 65,000 2,551,250
- -------------------------------------------------------------------
Romac International, Inc.(a) 50,000 975,000
- -------------------------------------------------------------------
Superior Consultant Holdings Corp.(a) 32,300 742,900
- -------------------------------------------------------------------
Vincam Group, Inc. (The)(a) 49,500 1,608,750
- -------------------------------------------------------------------
Whittman-Hart, Inc.(a) 21,600 410,400
- -------------------------------------------------------------------
19,330,881
- -------------------------------------------------------------------
COMPUTER MINI/PCS-0.82%
Dell Computer Corp.(a) 100,000 8,368,750
- -------------------------------------------------------------------
Stratus Computer, Inc.(a) 100,000 3,887,500
- -------------------------------------------------------------------
Sun Microsystems, Inc.(a) 183,300 5,281,331
- -------------------------------------------------------------------
17,537,581
- -------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTER NETWORKING-0.31%
ACT Networks, Inc.(a) 83,400 $ 1,125,900
- -------------------------------------------------------------------
Coherent Communications Systems
Corp.(a) 150,000 2,456,250
- -------------------------------------------------------------------
Network Appliance, Inc.(a) 50,000 1,456,250
- -------------------------------------------------------------------
VideoServer, Inc.(a) 100,000 1,687,500
- -------------------------------------------------------------------
6,725,900
- -------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-3.59%
Affiliated Computer Services, Inc.(a) 128,400 3,338,400
- -------------------------------------------------------------------
BDM International Inc.(a) 140,000 3,255,000
- -------------------------------------------------------------------
BISYS Group, Inc. (The)(a) 81,900 2,620,800
- -------------------------------------------------------------------
Computer Data Systems, Inc. 110,400 2,401,200
- -------------------------------------------------------------------
Computer Task Group, Inc. 53,700 2,315,813
- -------------------------------------------------------------------
CSG Systems International, Inc.(a) 85,000 1,508,750
- -------------------------------------------------------------------
Documentum, Inc.(a) 40,000 740,000
- -------------------------------------------------------------------
DST Systems, Inc.(a) 34,200 970,425
- -------------------------------------------------------------------
Electronic Arts, Inc.(a) 77,200 1,862,450
- -------------------------------------------------------------------
Engineering Animation, Inc.(a) 126,800 2,916,400
- -------------------------------------------------------------------
HBO & Co. 36,500 1,952,750
- -------------------------------------------------------------------
HPR, Inc.(a) 150,000 2,118,750
- -------------------------------------------------------------------
Imnet Systems, Inc.(a) 125,000 2,296,875
- -------------------------------------------------------------------
Indus Group, Inc.(a) 137,500 2,079,688
- -------------------------------------------------------------------
Integrated Measurement Systems,
Inc.(a) 100,000 1,325,000
- -------------------------------------------------------------------
JDA Software Group, Inc.(a) 50,000 1,262,500
- -------------------------------------------------------------------
Keane, Inc.(a) 35,600 1,650,950
- -------------------------------------------------------------------
McAfee Associates, Inc.(a) 100,000 5,575,000
- -------------------------------------------------------------------
National Data Corp. 75,000 2,812,500
- -------------------------------------------------------------------
Network General Corp.(a) 50,000 687,500
- -------------------------------------------------------------------
Parametric Technology Co.(a) 30,200 1,366,550
- -------------------------------------------------------------------
Physician Computer Network, Inc.(a) 170,500 905,781
- -------------------------------------------------------------------
Raptor Systems, Inc.(a) 75,000 862,500
- -------------------------------------------------------------------
Renaissance Solutions, Inc.(a) 65,000 1,413,750
- -------------------------------------------------------------------
Rogue Wave Software(a) 41,500 399,437
- -------------------------------------------------------------------
Scopus Technology, Inc.(a) 21,500 575,125
- -------------------------------------------------------------------
Security Dynamics Technologies,
Inc.(a) 125,000 3,156,250
- -------------------------------------------------------------------
Simulation Sciences, Inc.(a) 272,500 2,776,094
- -------------------------------------------------------------------
SPSS, Inc.(a) 65,000 1,722,500
- -------------------------------------------------------------------
Sterling Commerce, Inc.(a) 104,200 2,696,175
- -------------------------------------------------------------------
SunGard Data Systems Inc.(a) 40,100 1,779,437
- -------------------------------------------------------------------
Sykes Enterprises, Inc.(a) 10,200 290,700
- -------------------------------------------------------------------
Synopsys, Inc.(a) 174,043 5,547,621
- -------------------------------------------------------------------
Transition Systems, Inc.(a) 14,700 176,400
- -------------------------------------------------------------------
Vantive Corp.(a) 50,000 993,750
- -------------------------------------------------------------------
Veritas Software Corp.(a) 75,000 2,521,875
- -------------------------------------------------------------------
Viasoft, Inc.(a) 75,000 3,187,500
- -------------------------------------------------------------------
Wind River Systems(a) 114,750 2,639,250
- -------------------------------------------------------------------
76,701,446
- -------------------------------------------------------------------
CONSUMER NON-DURABLES-0.14%
Central Garden and Pet Co.(a) 75,000 1,495,313
- -------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CONSUMER NON-DURABLES-(CONTINUED)
Herbalife International, Inc. 91,700 $ 1,478,662
- -------------------------------------------------------------------
2,973,975
- -------------------------------------------------------------------
COSMETICS & TOILETRIES-0.73%
General Nutrition Companies, Inc.(a) 150,000 3,225,000
- -------------------------------------------------------------------
Helen of Troy Ltd.(a) 250,000 5,812,500
- -------------------------------------------------------------------
NBTY, Inc.(a) 175,000 3,325,000
- -------------------------------------------------------------------
Rexall Sundown, Inc.(a) 160,500 3,189,938
- -------------------------------------------------------------------
15,552,438
- -------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-1.73%
ANADIGICS, Inc.(a) 133,600 3,774,200
- -------------------------------------------------------------------
ASE Test Ltd.(a) 49,100 1,822,838
- -------------------------------------------------------------------
Benchmarq Microelectronics, Inc.(a) 250,000 4,375,000
- -------------------------------------------------------------------
Berg Electronics Corp.(a) 76,400 2,292,000
- -------------------------------------------------------------------
BMC Industries, Inc. 110,000 3,190,000
- -------------------------------------------------------------------
Micron Electronics, Inc.(a) 300,000 6,112,500
- -------------------------------------------------------------------
Sawtek Inc.(a) 150,000 4,443,750
- -------------------------------------------------------------------
Sipex Corp.(a) 150,000 3,600,000
- -------------------------------------------------------------------
Teradyne, Inc.(a) 189,500 6,206,125
- -------------------------------------------------------------------
Thermo Instrument Systems, Inc.(a) 20,000 627,500
- -------------------------------------------------------------------
ThermoQuest Corp.(a) 45,000 585,000
- -------------------------------------------------------------------
37,028,913
- -------------------------------------------------------------------
ENGINEERING & CONSTRUCTION-0.09%
Halter Marine Group, Inc.(a) 100,000 1,962,500
- -------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.07%
Imperial Credit Industries, Inc.(a) 100,000 1,456,250
- -------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-1.46%
AmeriCredit Corp.(a) 132,200 1,900,375
- -------------------------------------------------------------------
Amresco, Inc.(a) 120,000 1,747,500
- -------------------------------------------------------------------
Cityscape Financial Corp.(a) 100,000 1,337,500
- -------------------------------------------------------------------
CMAC Investment Corp. 24,400 927,200
- -------------------------------------------------------------------
Concord EFS, Inc.(a) 199,737 3,944,806
- -------------------------------------------------------------------
Delta Financial Corp.(a) 183,700 2,479,950
- -------------------------------------------------------------------
FIRSTPLUS Financial Group, Inc.(a) 200,100 4,427,212
- -------------------------------------------------------------------
Green Tree Financial Corp. 38,500 1,140,563
- -------------------------------------------------------------------
IMC Mortgage Co.(a) 200,000 2,250,000
- -------------------------------------------------------------------
Money Store, Inc. (The) 128,900 2,787,462
- -------------------------------------------------------------------
PMT Services, Inc.(a) 100,000 1,187,500
- -------------------------------------------------------------------
Student Loan Marketing Association 25,000 2,956,250
- -------------------------------------------------------------------
SunAmerica, Inc. 70,000 3,220,000
- -------------------------------------------------------------------
Union Acceptance Corp.(a) 75,000 787,500
- -------------------------------------------------------------------
31,093,818
- -------------------------------------------------------------------
FINANCE (SAVINGS & LOAN)-0.16%
Washington Mutual, Inc. 70,800 3,495,750
- -------------------------------------------------------------------
FUNERAL SERVICES-0.26%
Equity Corp. International(a) 255,000 5,482,500
- -------------------------------------------------------------------
FURNITURE-0.32%
Ethan Allen Interiors, Inc. 80,000 3,540,000
- -------------------------------------------------------------------
Herman Miller, Inc. 100,000 3,237,500
- -------------------------------------------------------------------
6,777,500
- -------------------------------------------------------------------
GAMING-0.18%
GTECH Holdings Corp.(a) 47,600 1,463,700
- -------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GAMING-(CONTINUED)
Primadonna Resorts, Inc.(a) 125,000 $ 2,343,750
- -------------------------------------------------------------------
3,807,450
- -------------------------------------------------------------------
HOME BUILDING-0.10%
Southern Energy Homes, Inc.(a) 202,500 2,100,938
- -------------------------------------------------------------------
HOTELS/MOTELS-0.06%
Prime Hospitality Corp.(a) 30,000 498,750
- -------------------------------------------------------------------
Suburban Lodges of America, Inc.(a) 20,000 322,500
- -------------------------------------------------------------------
Wyndham Hotel Corp.(a) 16,700 461,338
- -------------------------------------------------------------------
1,282,588
- -------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.08%
CRA Managed Care, Inc.(a) 30,300 1,068,075
- -------------------------------------------------------------------
First Commonwealth, Inc.(a) 45,000 551,250
- -------------------------------------------------------------------
1,619,325
- -------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-0.20%
CapMAC Holdings, Inc. 70,000 1,820,000
- -------------------------------------------------------------------
HCC Insurance Holdings, Inc.(a) 77,250 1,940,906
- -------------------------------------------------------------------
Vesta Insurance Group, Inc. 12,000 501,000
- -------------------------------------------------------------------
4,261,906
- -------------------------------------------------------------------
LEISURE & RECREATION-0.64%
Callaway Golf Co. 60,000 1,792,500
- -------------------------------------------------------------------
Cannondale Corp.(a) 75,000 1,462,500
- -------------------------------------------------------------------
Harley-Davidson, Inc. 60,000 2,370,000
- -------------------------------------------------------------------
Regal Cinemas, Inc.(a) 50,000 1,362,500
- -------------------------------------------------------------------
Royal Caribbean Cruises Ltd.(a) 150,000 4,781,250
- -------------------------------------------------------------------
West Marine, Inc.(a) 70,600 1,835,600
- -------------------------------------------------------------------
13,604,350
- -------------------------------------------------------------------
MACHINE TOOLS-0.13%%
Precision Castparts Corp. 50,000 2,675,000
- -------------------------------------------------------------------
MACHINERY (HEAVY)-0.04%
Rental Service Corp. 41,400 765,900
- -------------------------------------------------------------------
MACHINERY (MISCELLANEOUS)-0.27%
Kulicke & Soffa Industries, Inc.(a) 125,000 3,492,188
- -------------------------------------------------------------------
Prime Service, Inc.(a) 100,000 2,237,500
- -------------------------------------------------------------------
5,729,688
- -------------------------------------------------------------------
MEDICAL (DRUGS)-0.76%
Arbor Drugs, Inc. 166,350 3,056,681
- -------------------------------------------------------------------
Cardinal Health, Inc. 55,500 2,955,375
- -------------------------------------------------------------------
Curative Technologies, Inc.(a) 75,000 1,771,875
- -------------------------------------------------------------------
Dura Pharmaceuticals, Inc.(a) 57,900 1,679,100
- -------------------------------------------------------------------
Express Scripts, Inc.-Class A(a) 40,000 1,470,000
- -------------------------------------------------------------------
Forest Laboratories, Inc.(a) 45,300 1,545,863
- -------------------------------------------------------------------
Medicis Pharmaceutical Corp.(a) 150,000 3,675,000
- -------------------------------------------------------------------
16,153,894
- -------------------------------------------------------------------
MEDICAL (PATIENT SERVICES)-3.31%
ABR Information Services, Inc.(a) 70,000 1,408,750
- -------------------------------------------------------------------
American HomePatient, Inc.(a) 100,000 1,925,000
- -------------------------------------------------------------------
American Medserve Corp.(a) 136,300 1,482,263
- -------------------------------------------------------------------
Arbor Health Care Co.(a) 60,100 1,472,450
- -------------------------------------------------------------------
EmCare Holdings, Inc.(a) 61,500 1,729,687
- -------------------------------------------------------------------
Envoy Corp.(a) 100,000 2,087,500
- -------------------------------------------------------------------
FPA Medical Management, Inc.(a) 111,507 1,811,988
- -------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEDICAL (PATIENT SERVICES)-(CONTINUED)
Health Management Associates,
Inc.-Class A(a) 223,800 $ 5,986,650
- -------------------------------------------------------------------
HEALTHSOUTH Corp.(a) 150,000 2,962,500
- -------------------------------------------------------------------
Hologic, Inc.(a) 100,000 2,075,000
- -------------------------------------------------------------------
Humana, Inc.(a) 100,000 2,175,000
- -------------------------------------------------------------------
Integrated Health Services, Inc.(a) 100,000 3,212,500
- -------------------------------------------------------------------
MedPartners, Inc.(a) 38,500 702,625
- -------------------------------------------------------------------
Multicare Companies, Inc.(a) 82,950 1,544,944
- -------------------------------------------------------------------
NCS HealthCare, Inc.-Class A(a) 110,000 2,502,500
- -------------------------------------------------------------------
NovaCare, Inc.(a) 125,000 1,421,875
- -------------------------------------------------------------------
OccuSystems, Inc.(a) 45,000 928,125
- -------------------------------------------------------------------
Orthodontic Centers of America,
Inc.(a) 123,000 1,476,000
- -------------------------------------------------------------------
Oxford Health Plans, Inc.(a) 90,000 5,928,750
- -------------------------------------------------------------------
PacifiCare Health Systems, Inc.-Class
B(a) 25,000 2,006,250
- -------------------------------------------------------------------
Pediatrix Medical Group, Inc.(a) 15,200 501,600
- -------------------------------------------------------------------
PhyCor, Inc.(a) 49,950 1,329,919
- -------------------------------------------------------------------
Renal Care Group, Inc.(a) 90,400 2,712,000
- -------------------------------------------------------------------
Renal Treatment Centers, Inc.(a) 50,000 1,081,250
- -------------------------------------------------------------------
RoTech Medical Corp.(a) 77,200 1,215,900
- -------------------------------------------------------------------
Sunrise Assisted Living, Inc.(a) 63,200 1,524,700
- -------------------------------------------------------------------
Tenet Healthcare Corp.(a) 80,000 2,080,000
- -------------------------------------------------------------------
Total Renal Care Holdings, Inc.(a) 37,600 1,207,900
- -------------------------------------------------------------------
United Healthcare Corp.(a) 100,000 4,862,500
- -------------------------------------------------------------------
Universal Health Services, Inc.-Class
B(a) 89,800 3,401,175
- -------------------------------------------------------------------
Vencor, Inc.(a) 66,000 2,747,250
- -------------------------------------------------------------------
Wellpoint Health Networks, Inc.(a) 75,000 3,168,750
- -------------------------------------------------------------------
70,673,301
- -------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-1.02%
Acuson Corp.(a) 100,000 2,425,000
- -------------------------------------------------------------------
Capstone Pharmacy Services, Inc.(a) 45,000 379,688
- -------------------------------------------------------------------
Dentsply International, Inc. 37,400 1,851,300
- -------------------------------------------------------------------
Gulf South Medical Supply, Inc.(a) 83,100 1,184,175
- -------------------------------------------------------------------
Omnicare, Inc. 173,300 4,224,187
- -------------------------------------------------------------------
Patterson Dental Co.(a) 120,000 4,020,000
- -------------------------------------------------------------------
Physician Sales & Service, Inc.(a) 50,000 725,000
- -------------------------------------------------------------------
Quintiles Transnational Corp.(a) 85,000 4,324,375
- -------------------------------------------------------------------
ResMed, Inc.(a) 40,000 700,000
- -------------------------------------------------------------------
Suburban Ostomy Supply Co., Inc.(a) 92,800 835,200
- -------------------------------------------------------------------
Sybron International Corp.(a) 32,800 1,090,600
- -------------------------------------------------------------------
21,759,525
- -------------------------------------------------------------------
METALS-0.01%
Shaw Group, Inc.(a) 23,300 314,550
- -------------------------------------------------------------------
OFFICE PRODUCTS-0.29%
Daisytek International Corp.(a) 100,000 2,725,000
- -------------------------------------------------------------------
Reynolds & Reynolds Co.-Class A 163,600 3,394,700
- -------------------------------------------------------------------
6,119,700
- -------------------------------------------------------------------
OIL & GAS (DRILLING)-0.20%
Cliffs Drilling Co.(a) 70,000 4,270,000
- -------------------------------------------------------------------
OIL & GAS (SERVICES)-1.07%
Camco International, Inc. 100,000 4,437,500
- -------------------------------------------------------------------
Energy Ventures, Inc.(a) 100,000 6,687,500
- -------------------------------------------------------------------
Global Industries Ltd.(a) 125,000 2,625,000
- -------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
OIL & GAS (SERVICES)-(CONTINUED)
Global Marine, Inc.(a) 150,000 $ 3,018,750
- -------------------------------------------------------------------
Newpark Resources, Inc.(a) 50,000 2,243,750
- -------------------------------------------------------------------
Veritas DGC, Inc.(a) 200,000 3,850,000
- -------------------------------------------------------------------
22,862,500
- -------------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES-1.39%
Cooper Cameron Corp.(a) 50,000 3,562,500
- -------------------------------------------------------------------
Diamond Offshore Drilling, Inc.(a) 77,400 4,982,625
- -------------------------------------------------------------------
ENSCO International, Inc.(a) 75,900 3,605,250
- -------------------------------------------------------------------
Falcon Drilling Co., Inc.(a) 75,000 2,868,750
- -------------------------------------------------------------------
Marine Drilling Companies, Inc.(a) 146,500 2,307,375
- -------------------------------------------------------------------
National-Oilwell, Inc.(a) 150,000 5,831,250
- -------------------------------------------------------------------
Pride Petroleum Services, Inc.(a) 133,800 2,308,050
- -------------------------------------------------------------------
Rowan Companies, Inc.(a) 100,000 1,800,000
- -------------------------------------------------------------------
Varco International, Inc.(a) 107,500 2,472,500
- -------------------------------------------------------------------
29,738,300
- -------------------------------------------------------------------
POLLUTION CONTROL-0.59%
Tetra Technologies, Inc.(a) 100,000 2,325,000
- -------------------------------------------------------------------
US Filter Corp.(a) 120,150 3,649,556
- -------------------------------------------------------------------
USA Waste Services, Inc.(a) 200,000 6,550,000
- -------------------------------------------------------------------
12,524,556
- -------------------------------------------------------------------
RESTAURANTS-0.45%
Apple South, Inc. 50,800 660,400
- -------------------------------------------------------------------
Foodmaker, Inc.(a) 335,000 3,643,125
- -------------------------------------------------------------------
Landry's Seafood Restaurants, Inc.(a) 72,100 1,012,780
- -------------------------------------------------------------------
Outback Steakhouse, Inc.(a) 13,400 262,975
- -------------------------------------------------------------------
Papa John's International, Inc.(a) 22,500 579,375
- -------------------------------------------------------------------
Showbiz Pizza Time, Inc.(a) 96,600 1,859,550
- -------------------------------------------------------------------
Starbucks Corp.(a) 50,000 1,493,750
- -------------------------------------------------------------------
9,511,955
- -------------------------------------------------------------------
RETAIL (FOOD & DRUG)-0.14%
Kroger Co.(a) 36,000 990,000
- -------------------------------------------------------------------
Quality Food Centers, Inc.(a) 50,000 2,006,250
- -------------------------------------------------------------------
2,996,250
- -------------------------------------------------------------------
RETAIL (STORES)-4.51%
Bed Bath & Beyond, Inc.(a) 40,400 1,105,950
- -------------------------------------------------------------------
Blyth Industries, Inc.(a) 150,000 5,925,000
- -------------------------------------------------------------------
CDW Computer Centers, Inc.(a) 78,700 3,777,600
- -------------------------------------------------------------------
CompUSA, Inc.(a) 172,000 3,311,000
- -------------------------------------------------------------------
Dayton Hudson Corp. 75,000 3,375,000
- -------------------------------------------------------------------
Dollar General Corp. 56,562 1,788,773
- -------------------------------------------------------------------
Duty Free International, Inc. 19,900 281,088
- -------------------------------------------------------------------
Eagle Hardware & Garden, Inc.(a) 130,200 2,441,250
- -------------------------------------------------------------------
Footstar, Inc.(a) 100,000 2,075,000
- -------------------------------------------------------------------
Gadzooks, Inc.(a) 50,000 1,393,750
- -------------------------------------------------------------------
Gap, Inc. 58,400 1,861,500
- -------------------------------------------------------------------
Global DirectMail Corp.(a) 21,800 384,225
- -------------------------------------------------------------------
Hollywood Entertainment Corp.(a) 200,000 4,275,000
- -------------------------------------------------------------------
Inacom Corp.(a) 50,000 1,106,250
- -------------------------------------------------------------------
Insight Enterprises, Inc.(a) 100,000 2,375,000
- -------------------------------------------------------------------
Jones Apparel Group, Inc.(a) 100,000 4,175,000
- -------------------------------------------------------------------
Just for Feet, Inc.(a) 225,000 3,571,875
- -------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (STORES)-(CONTINUED)
Loehmann's Holdings, Inc.(a) 159,500 $ 1,096,562
- -------------------------------------------------------------------
Marks Bros. Jewelers, Inc.(a) 152,400 1,695,450
- -------------------------------------------------------------------
Men's Wearhouse, Inc. (The)(a) 87,400 2,174,075
- -------------------------------------------------------------------
Michaels Stores, Inc.(a) 100,000 1,925,000
- -------------------------------------------------------------------
Micro Warehouse, Inc.(a) 97,100 1,674,975
- -------------------------------------------------------------------
MicroAge, Inc.(a) 250,000 3,156,250
- -------------------------------------------------------------------
MSC Industrial Direct Co., Inc.-Class
A(a) 40,000 1,230,000
- -------------------------------------------------------------------
O'Reilly Automotive, Inc.(a) 150,000 5,250,000
- -------------------------------------------------------------------
Petco Animal Supplies, Inc.(a) 67,000 1,432,125
- -------------------------------------------------------------------
PETsMART, Inc.(a) 92,200 1,550,113
- -------------------------------------------------------------------
Pier 1 Imports, Inc. 265,000 5,233,750
- -------------------------------------------------------------------
Ross Stores, Inc. 80,000 2,250,000
- -------------------------------------------------------------------
Sports Authority, Inc. (The)(a) 110,400 1,959,600
- -------------------------------------------------------------------
Staples, Inc.(a) 235,800 4,244,400
- -------------------------------------------------------------------
Tech Data Corp.(a) 85,700 2,099,650
- -------------------------------------------------------------------
Tiffany & Co. 82,500 3,269,062
- -------------------------------------------------------------------
TJX Companies, Inc. 64,600 3,052,350
- -------------------------------------------------------------------
Toys "R" Us, Inc.(a) 100,000 2,850,000
- -------------------------------------------------------------------
Viking Office Products, Inc.(a) 106,100 1,445,613
- -------------------------------------------------------------------
Wet Seal, Inc.-Class A(a) 55,000 1,361,250
- -------------------------------------------------------------------
Williams-Sonoma, Inc.(a) 75,000 2,325,000
- -------------------------------------------------------------------
Zale Corp.(a) 100,000 1,850,000
- -------------------------------------------------------------------
96,348,486
- -------------------------------------------------------------------
SCHOOLS-0.10%
Children's Comprehensive Services,
Inc.(a) 186,200 2,187,850
- -------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.34%
Datum, Inc.(a) 66,700 1,550,775
- -------------------------------------------------------------------
Dynatech Corp.(a) 50,000 1,737,500
- -------------------------------------------------------------------
Perkin-Elmer Corp. 55,500 4,030,688
- -------------------------------------------------------------------
7,318,963
- -------------------------------------------------------------------
SECURITY & SAFETY SERVICES-0.03%
Rural/Metro Corp.(a) 25,000 718,750
- -------------------------------------------------------------------
SEMICONDUCTORS-3.83%
Actel Corp.(a) 50,000 893,750
- -------------------------------------------------------------------
Advanced Micro Devices, Inc.(a) 100,000 4,250,000
- -------------------------------------------------------------------
Altera Corp.(a) 152,800 7,573,150
- -------------------------------------------------------------------
Burr-Brown Corp.(a) 50,000 1,475,000
- -------------------------------------------------------------------
Computer Products, Inc.(a) 200,000 3,425,000
- -------------------------------------------------------------------
Cymer, Inc.(a) 100,000 4,112,500
- -------------------------------------------------------------------
Dallas Semiconductor Corp.(a) 100,000 3,650,000
- -------------------------------------------------------------------
DuPont Photomasks, Inc.(a) 100,000 4,787,500
- -------------------------------------------------------------------
GaSonics International Corp.(a) 105,600 897,600
- -------------------------------------------------------------------
HADCO Corp.(a) 76,700 3,278,925
- -------------------------------------------------------------------
Integrated Device Technology, Inc.(a) 200,000 2,350,000
- -------------------------------------------------------------------
Kemet Corp.(a) 100,000 1,950,000
- -------------------------------------------------------------------
Lattice Semiconductor Corp.(a) 112,900 6,308,288
- -------------------------------------------------------------------
Linear Technology Corp.(a) 126,000 6,331,500
- -------------------------------------------------------------------
MEMC Electronic Materials, Inc.(a) 94,300 2,581,462
- -------------------------------------------------------------------
Micron Technology, Inc. 61,300 2,160,825
- -------------------------------------------------------------------
National Semiconductor Corp.(a) 157,700 3,942,500
- -------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SEMICONDUCTORS-(CONTINUED)
Photronics, Inc.(a) 125,000 $ 4,328,125
- -------------------------------------------------------------------
Sanmina Corp.(a) 111,000 5,550,000
- -------------------------------------------------------------------
Sierra Semiconductor Corp.(a) 175,000 2,953,125
- -------------------------------------------------------------------
Silicon Valley Group, Inc.(a) 175,000 3,598,438
- -------------------------------------------------------------------
Solectron Corp.(a) 25,500 1,463,062
- -------------------------------------------------------------------
Triquint Semiconductor, Inc.(a) 92,200 2,742,950
- -------------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 37,500 1,181,250
- -------------------------------------------------------------------
81,784,950
- -------------------------------------------------------------------
SHOES & RELATED APPAREL-0.40%
Converse, Inc.(a) 100,000 1,500,000
- -------------------------------------------------------------------
Genesco Inc.(a) 150,000 1,743,750
- -------------------------------------------------------------------
Nine West Group, Inc.(a) 14,200 562,675
- -------------------------------------------------------------------
Pacific Sunwear of California(a) 100,000 3,125,000
- -------------------------------------------------------------------
Wolverine World Wide, Inc. 39,950 1,607,988
- -------------------------------------------------------------------
8,539,413
- -------------------------------------------------------------------
STEEL-0.04%
Maverick Tube Corp.(a) 38,600 844,375
- -------------------------------------------------------------------
TELECOMMUNICATIONS-1.46%
ACC Corp. 13,500 214,313
- -------------------------------------------------------------------
ADC Telecommunications, Inc.(a) 130,000 3,396,250
- -------------------------------------------------------------------
Advanced Fibre Communications,
Inc.(a) 100,000 3,987,500
- -------------------------------------------------------------------
Andrew Corp.(a) 95,325 2,359,294
- -------------------------------------------------------------------
Billing Information Concepts(a) 79,600 1,900,450
- -------------------------------------------------------------------
Brightpoint, Inc.(a) 218,750 4,785,156
- -------------------------------------------------------------------
CellStar Corp.(a) 150,000 3,600,000
- -------------------------------------------------------------------
P-COM, Inc.(a) 50,000 1,431,250
- -------------------------------------------------------------------
PairGain Technologies, Inc.(a) 52,800 1,372,800
- -------------------------------------------------------------------
Premiere Technologies, Inc.(a) 100,000 2,387,500
- -------------------------------------------------------------------
Proxim, Inc.(a) 70,000 1,408,750
- -------------------------------------------------------------------
Tellabs, Inc.(a) 89,800 3,580,775
- -------------------------------------------------------------------
U.S. Long Distance Corp.(a) 64,200 778,425
- -------------------------------------------------------------------
31,202,463
- -------------------------------------------------------------------
TEXTILES-0.78%
Liz Claiborne, Inc. 69,000 3,122,250
- -------------------------------------------------------------------
Mohawk Industries, Inc.(a) 75,000 1,678,125
- -------------------------------------------------------------------
Nautica Enterprises, Inc.(a) 125,000 2,765,625
- -------------------------------------------------------------------
Quicksilver, Inc.(a) 50,000 1,087,500
- -------------------------------------------------------------------
St. John Knits, Inc. 50,000 1,918,750
- -------------------------------------------------------------------
Tommy Hilfiger Corp.(a) 103,800 4,126,050
- -------------------------------------------------------------------
WestPoint Stevens, Inc.(a) 50,000 1,956,250
- -------------------------------------------------------------------
16,654,550
- -------------------------------------------------------------------
TRANSPORTATION-0.12%
Hub Group, Inc.(a) 100,000 2,650,000
- -------------------------------------------------------------------
TRUCKING-0.13%
Swift Transportation Co., Inc.(a) 50,000 1,425,000
- -------------------------------------------------------------------
USFreightways Corp. 50,000 1,350,000
- -------------------------------------------------------------------
2,775,000
- -------------------------------------------------------------------
Total Domestic Common Stocks 748,685,951
- -------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY INTERESTS-62.41%
ARGENTINA-1.83%
Banco de Galicia y Buenos Aires S.A. de
C.V.-ADR (Banking)(a) 500,439 $ 12,174,743
- ----------------------------------------------------------------------
Perez Companc S.A.-Class B
(Oil & Gas-Services) 1,679,000 13,618,052
- ----------------------------------------------------------------------
YPF Sociedad Anonima-ADR
(Oil & Gas-Services) 479,600 13,248,950
- ----------------------------------------------------------------------
39,041,745
- ----------------------------------------------------------------------
AUSTRALIA-0.55%
QBE Insurance Group Ltd.
(Insurance-Multi-Line Property) 2,055,929 11,752,289
- ----------------------------------------------------------------------
AUSTRIA-0.39%
VA Technologie A.G.
(Engineering & Construction) 53,200 8,267,016
- ----------------------------------------------------------------------
BELGIUM-0.71%
Barco Industries (Electronic
Components/Miscellaneous) 41,000 6,984,336
- ----------------------------------------------------------------------
COLRUYT S.A. (Retail-Food & Drug) 8,800 3,643,077
- ----------------------------------------------------------------------
UCB S.A. (Medical-Drugs) 1,650 4,527,692
- ----------------------------------------------------------------------
15,155,105
- ----------------------------------------------------------------------
BRAZIL-2.70%
Banco Bradesco S.A. (Banking) 1,316,000 10,889,328
- ----------------------------------------------------------------------
CESP-Companhia Energetica de Sao Paulo
(Electric Power)(a) 65,000 3,453,221
- ----------------------------------------------------------------------
Cia. Riograndense de Telecomunicacoes
(Telecommunications)(a) 40,000 5,263,752
- ----------------------------------------------------------------------
Companhia Brasileira de Distribuicao
Grupo Pao de Acucar (Retail-Food &
Drug) 326,500 6,450,179
- ----------------------------------------------------------------------
Companhia Paranaense de Energia-Copel
(Electric Power)(a) 240,000 3,734,838
- ----------------------------------------------------------------------
Eletricidade de Sao Paulo S.A.
(Electric Power)(a) 24,000 4,818,054
- ----------------------------------------------------------------------
Multicanal Participacoes S.A.-ADR
(Cable Television)(a) 415,000 6,017,500
- ----------------------------------------------------------------------
Saneamiento Basico de Sao Paulo
(Water Supply)(a) 7,000 1,382,228
- ----------------------------------------------------------------------
Telecomunicacoes Brasileiras
S.A.-Telebras-ADR (Telecommunications) 136,700 15,686,325
- ----------------------------------------------------------------------
57,695,425
- ----------------------------------------------------------------------
CANADA-3.15%
Biovail Corporation International
(Medical-Drugs)(a) 110,000 2,750,000
- ----------------------------------------------------------------------
Canadian Natural Resources Ltd.
(Oil & Gas-Exploration & Production)(a) 345,000 8,223,694
- ----------------------------------------------------------------------
CanWest Global Communications Corp.
(Electronic Components/Miscellaneous) 355,998 4,778,069
- ----------------------------------------------------------------------
Cognos, Inc. (Computer
Software/Services)(a) 300,000 7,612,500
- ----------------------------------------------------------------------
Ensign Resource Service Group, Inc.
(Oil & Gas-Drilling) 100,000 1,753,758
- ----------------------------------------------------------------------
Extendicare, Inc.-Class A
(Insurance-Life & Health)(a) 350,000 4,346,815
- ----------------------------------------------------------------------
Four Seasons Hotels, Inc. (Hotels/Motels) 85,000 1,886,185
- ----------------------------------------------------------------------
Gulf Canada Resources, Ltd. (Oil & Gas-
Exploration & Production)(a) 250,000 2,031,250
- ----------------------------------------------------------------------
Imax Corp. (Leisure & Recreation)(a) 75,000 2,681,250
- ----------------------------------------------------------------------
JDS Fitel Inc. (Telecommunications)(a) 95,000 2,023,085
- ----------------------------------------------------------------------
MDS Inc.-Class B
(Medical Instruments/Products) 218,000 4,260,129
- ----------------------------------------------------------------------
Newbridge Networks Corp. (Computer
Networking)(a) 67,600 2,146,300
- ----------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Newcourt Credit Group, Inc.
(Finance-Consumer Credit) 120,000 $ 2,216,178
- ----------------------------------------------------------------------
Northern Telecom Ltd.
(Telecommunications) 50,000 3,631,250
- ----------------------------------------------------------------------
Philip Environmental, Inc.
(Pollution Control)(a) 375,000 5,906,250
- ----------------------------------------------------------------------
Precision Drilling Corp. (Oil &
Gas-Drilling)(a) 125,000 4,343,750
- ----------------------------------------------------------------------
Sears Canada, Inc. (Retail-Stores) 166,500 1,757,963
- ----------------------------------------------------------------------
Suncor, Inc.
(Oil & Gas-Exploration & Production) 105,000 4,810,308
- ----------------------------------------------------------------------
67,158,734
- ----------------------------------------------------------------------
CHILE-0.44%
Cia. de Telecomunicaciones de Chile
S.A.-ADR (Telephone) 287,300 9,301,338
- ----------------------------------------------------------------------
DENMARK-0.73%
Bang & Olufsen Holding A/S-Class B
(Electronic Components/Miscellaneous)(a) 90,000 5,189,130
- ----------------------------------------------------------------------
Coloplast A/S-Class B
(Medical Instruments/Products) 25,000 1,813,161
- ----------------------------------------------------------------------
Falck A/S (Security & Safety Services) 20,000 5,082,920
- ----------------------------------------------------------------------
Kobenhavns Lufthavne A/S (Transportation) 35,000 3,542,112
- ----------------------------------------------------------------------
15,627,323
- ----------------------------------------------------------------------
FINLAND-1.35%
Cultor Oy (Food/Processing)(a) 30,000 1,661,411
- ----------------------------------------------------------------------
Hartwall OY A.B. (Beverages-Alcoholic)(a) 80,000 3,615,107
- ----------------------------------------------------------------------
Huhtamaki Group (Conglomerates)(a) 100,000 4,365,049
- ----------------------------------------------------------------------
KCI Konecranes (Machinery-Heavy)(a) 76,750 2,951,696
- ----------------------------------------------------------------------
Orion-yhtyma OY (Medical-Drugs)(a) 120,000 4,499,654
- ----------------------------------------------------------------------
Raision Tehtaat Oy (Food/Processing)(a) 44,500 3,688,082
- ----------------------------------------------------------------------
Tamro OY A.B. (Medical-Drugs)(a) 400,000 2,461,349
- ----------------------------------------------------------------------
TT Tieto OY-Class B
(Computer Software/Services)(a) 74,000 5,620,721
- ----------------------------------------------------------------------
28,863,069
- ----------------------------------------------------------------------
FRANCE-2.89%
Altran Technologies, S.A.
(Telecommunications) 15,000 5,217,168
- ----------------------------------------------------------------------
BERTRAND FAURE
(Automobile/Truck Parts & Tires) 110,000 5,267,712
- ----------------------------------------------------------------------
Christian Dalloz (Textiles)(a) 3,800 1,445,387
- ----------------------------------------------------------------------
CIPE (Security & Safety Services) 16,000 2,247,923
- ----------------------------------------------------------------------
Coflexip S.A. (Oil & Gas-Specialty)(a) 35,000 1,901,568
- ----------------------------------------------------------------------
Compagnie Generale de Geophysique S.A.
(Oil & Gas-Drilling)(a) 26,000 2,200,634
- ----------------------------------------------------------------------
Dassault Electronique
(Electronic/Defense) 30,000 3,274,223
- ----------------------------------------------------------------------
Dassault Systemes S.A.-ADR
(Computer Software/Services)(a) 100,000 6,162,500
- ----------------------------------------------------------------------
Galeries Lafayette (Retail-Stores)(a) 5,600 2,245,181
- ----------------------------------------------------------------------
Grand Optical Photoservice
(Retail-Stores) 26,400 3,930,712
- ----------------------------------------------------------------------
Labinal S.A. (Aerospace/Defense) 8,300 2,118,907
- ----------------------------------------------------------------------
LDC S.A. (Food/Processing) 7,500 1,323,567
- ----------------------------------------------------------------------
Le Carbone-Lorraine
(Electronic Components/Miscellaneous) 9,100 2,159,428
- ----------------------------------------------------------------------
Mecatherm S.A.
(Machinery-Miscellaneous)(a) 3,000 818,298
- ----------------------------------------------------------------------
Penauille Polyservices
(Security & Safety Services)(a) 5,300 1,363,934
- ----------------------------------------------------------------------
Scor S.A.(Insurance-Multi-line Property) 130,000 5,078,386
- ----------------------------------------------------------------------
Sidel, S.A. (Machinery-Miscellaneous) 70,000 5,027,671
- ----------------------------------------------------------------------
Sommer Allibert
(Automobile/Truck Parts & Tires) 70,000 2,518,633
- ----------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FRANCE-(CONTINUED)
Strafor Facom S.A. (Office Products) 40,000 $ 3,022,359
- ----------------------------------------------------------------------
Vallourec S.A. (Metals) 73,000 4,277,564
- ----------------------------------------------------------------------
61,601,755
- ----------------------------------------------------------------------
GERMANY-1.71%
Continental A.G.
(Automobile/Truck Parts & Tires) 185,000 4,070,043
- ----------------------------------------------------------------------
Fresenius A.G.-Preferred
(Medical Instruments/Products) 26,000 5,847,673
- ----------------------------------------------------------------------
Fresenius A.G.-Rts., expiring 05/13/97
(Medical Instruments/Products) 26,000 115,936
- ----------------------------------------------------------------------
Hugo Boss A.G.-Preferred (Textiles) 1,750 2,233,226
- ----------------------------------------------------------------------
IWKA A.G. (Machine Tools) 8,100 2,135,148
- ----------------------------------------------------------------------
Plettac A.G. (Machinery-Miscellaneous) 10,000 2,205,797
- ----------------------------------------------------------------------
Porsche A.G.
(Automobile/Truck Parts & Tires) 6,300 8,185,125
- ----------------------------------------------------------------------
Puma A.G. (Shoes & Related Apparel)(a) 35,000 1,182,296
- ----------------------------------------------------------------------
Puma A.G. Rudolph Dassler Sport (Shoes &
Related Apparel) (Acquired 06/10/96;
cost $2,280,576)(a)(b) 70,000 2,364,592
- ----------------------------------------------------------------------
SCHMALBACH LUBECA A.G. (Containers)(a) 20,000 4,388,498
- ----------------------------------------------------------------------
SGL Carbon A.G. (Metals-Miscellaneous) 27,500 3,834,883
- ----------------------------------------------------------------------
36,563,217
- ----------------------------------------------------------------------
GREECE-0.11%
Titan Cement Co. S.A. (Building
Materials) 30,000 2,404,580
- ----------------------------------------------------------------------
HONG KONG-7.07%
Asia Satellite Telecommunications
Holdings Ltd. (Telecommunications) 1,530,000 3,881,043
- ----------------------------------------------------------------------
Asia Satellite Telecommunications
Holdings Ltd.-ADR (Telecommunications) 177,300 4,565,475
- ----------------------------------------------------------------------
China Resources Enterprise Ltd. (Real
Estate) 5,414,000 14,956,380
- ----------------------------------------------------------------------
Cosco Pacific Ltd. (Transportation) 11,318,000 15,852,359
- ----------------------------------------------------------------------
Dao Heng Bank Group Ltd. (Banking) 2,479,200 11,777,520
- ----------------------------------------------------------------------
Esprit Asia Holdings Ltd. (Retail-Stores) 10,520,000 4,821,016
- ----------------------------------------------------------------------
First Pacific Company Ltd.
(Conglomerates) 13,326,033 15,912,451
- ----------------------------------------------------------------------
Hang Seng Bank Ltd. (Banking) 888,400 10,006,183
- ----------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd.
(Electric Power) 4,443,840 7,055,991
- ----------------------------------------------------------------------
Hutchison Whampoa Ltd. (Conglomerates)(a) 1,800,000 13,360,873
- ----------------------------------------------------------------------
Johnson Electric Holdings Ltd.
(Electronic Components/Miscellaneous) 4,140,000 11,223,133
- ----------------------------------------------------------------------
New World Infrastructure Ltd.
(Building Materials)(a) 3,446,400 9,743,260
- ----------------------------------------------------------------------
Shanghai Industrial Holdings Ltd.
(Conglomerates)(a) 2,532,000 14,250,978
- ----------------------------------------------------------------------
Sun Hung Kai Properties Ltd. (Real
Estate) 1,250,000 13,554,508
- ----------------------------------------------------------------------
150,961,170
- ----------------------------------------------------------------------
HUNGARY-0.18%
Richter Gedeon Rt.-GDR (Medical-Drugs) 50,000 3,775,000
- ----------------------------------------------------------------------
INDONESIA-1.19%
PT Bank Dagang Nasional (Banking) 1,083,500 1,081,271
- ----------------------------------------------------------------------
PT Bank Internasional Indonesia
(Banking) 19,605,682 14,119,318
- ----------------------------------------------------------------------
PT Indosat (Telecommunications) 808,000 2,227,819
- ----------------------------------------------------------------------
PT Indosat-ADR (Telecommunications) 87,500 2,406,250
- ----------------------------------------------------------------------
PT Ramayana Lestari Sentosa
(Retail-Stores)(a) 2,324,000 5,642,634
- ----------------------------------------------------------------------
25,477,292
- ----------------------------------------------------------------------
IRELAND-0.69%
CBT Group PLC-ADR
(Computer Software/Services)(a) 7,600 369,550
- ----------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
IRELAND-(CONTINUED)
Elan Corp. PLC-ADR (Medical-Drugs)(a) 200,000 $ 6,800,000
- ----------------------------------------------------------------------
Greencore Group PLC (Food/Processing) 462,000 2,357,851
- ----------------------------------------------------------------------
Saville Systems Ireland PLC-ADR(a) 125,000 5,140,625
- ----------------------------------------------------------------------
14,668,026
- ----------------------------------------------------------------------
ISRAEL-1.57%
Blue Square-Israel Ltd.-ADR
(Retail-Stores)(a) 550,000 10,243,750
- ----------------------------------------------------------------------
ESC Medical Systems Ltd.
(Medical Instruments/Products)(a) 300,000 8,062,500
- ----------------------------------------------------------------------
Tecnomatix Technologies Ltd.
(Computer Software/Services)(a) 27,500 704,688
- ----------------------------------------------------------------------
Teledata Communication Ltd.
(Telecommunications)(a) 150,000 3,300,000
- ----------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd.-ADR
(Medical-Drugs) 198,500 10,073,875
- ----------------------------------------------------------------------
Tower Semiconductor Ltd.
(Semiconductors)(a) 100,000 1,250,000
- ----------------------------------------------------------------------
33,634,813
- ----------------------------------------------------------------------
ITALY-0.41%
Azienda Mediterranea Gas e Acqua S.p.A.
(Gas Distribution)(a) 2,500,000 1,981,398
- ----------------------------------------------------------------------
Bulgari S.p.A. (Retail-Stores)(a) 263,000 4,754,560
- ----------------------------------------------------------------------
Gewiss S.p.A. (Electronic
Components/Miscellaneous)(a) 150,000 2,014,981
- ----------------------------------------------------------------------
8,750,939
- ----------------------------------------------------------------------
JAPAN-4.15%
Aderans Co. Ltd. (Retail-Stores) 394,000 8,877,299
- ----------------------------------------------------------------------
Bellsystem 24, Inc. (Telephone) 48,000 5,899,082
- ----------------------------------------------------------------------
Capcom Co., Ltd. (Computer
Software/Services) 201,000 3,531,177
- ----------------------------------------------------------------------
Circle K Japan Co. Ltd.
(Retail-Food & Drug)(a) 222,000 10,196,242
- ----------------------------------------------------------------------
FCC Co. Ltd.
(Automobile/Truck Parts & Tires) 143,110 3,923,447
- ----------------------------------------------------------------------
Fujitsu Denso Ltd. (Electric Power) 340,000 10,285,579
- ----------------------------------------------------------------------
Hokuto Corp. (Advertising/Broadcasting) 185,250 6,421,397
- ----------------------------------------------------------------------
Laox (Electronic
Components/Miscellaneous) 460,000 5,472,092
- ----------------------------------------------------------------------
Nippon Thompson Co. (Machine Tools) 710,000 4,782,369
- ----------------------------------------------------------------------
Noritsu Koki Co. Ltd.
(Electronic Components/Miscellaneous) 315,600 13,450,947
- ----------------------------------------------------------------------
77 Bank (Banking) 770,000 6,308,741
- ----------------------------------------------------------------------
Shohkoh Fund & Co.
(Finance-Consumer Credit) 20,600 4,836,176
- ----------------------------------------------------------------------
Yamato Kogyo Co. (Building Materials) 537,000 4,653,563
- ----------------------------------------------------------------------
88,638,111
- ----------------------------------------------------------------------
MALAYSIA-3.10%
Arab Malaysian Finance Berhad
(Finance-Asset Management) 1,310,000 2,869,603
- ----------------------------------------------------------------------
Commerce Asset Holding Berhad
(Finance-Asset Management) 574,000 3,429,186
- ----------------------------------------------------------------------
Gamuda Berhad (Engineering &
Construction) 2,286,699 8,242,244
- ----------------------------------------------------------------------
Gamuda Berhad-Wts., expiring 12/28/01
(Engineering & Construction) 66 81
- ----------------------------------------------------------------------
Malayan Banking Berhad (Banking) 1,112,000 11,072,168
- ----------------------------------------------------------------------
Sungei Way Holdings Berhad
(Building Materials) 4,991,800 11,431,755
- ----------------------------------------------------------------------
Sunway City Berhad Group (Real Estate) 4,000,000 8,682,492
- ----------------------------------------------------------------------
Tan Chong Motor Holdings Berhad
(Automobile-Manufacturers) 5,040,000 9,354,150
- ----------------------------------------------------------------------
UMW Holdings Berhad
(Finance-Asset Management) 2,125,000 11,171,738
- ----------------------------------------------------------------------
66,253,417
- ----------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEXICO-2.59%
Coca-Cola Femsa S.A.-ADR
(Beverages-Non-Alcoholic) 170,400 $ 5,942,700
- ----------------------------------------------------------------------
Fomento Economico Mexicano, S.A. de C.V.
(Beverages-Alcoholic)(a) 1,804,900 8,472,003
- ----------------------------------------------------------------------
Grupo Financiero Banamex Accival, S.A. de
C.V. (Banacci) (Banking)(a) 4,350,000 9,316,932
- ----------------------------------------------------------------------
Grupo Industrial Maseca S.A. de
C.V.-Class B (Food/Processing) 5,844,600 5,722,140
- ----------------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Advertising/Broadcasting)(a) 310,800 7,187,250
- ----------------------------------------------------------------------
Panamerican Beverages, Inc.-Class A
(Beverages-Soft Drinks) 502,000 14,558,000
- ----------------------------------------------------------------------
Tubos de Acero de Mexico S.A. (Steel)(a) 250,000 4,093,750
- ----------------------------------------------------------------------
55,292,775
- ----------------------------------------------------------------------
NETHERLANDS-3.74%
Aalberts Industries N.V. (Metals) 115,000 2,638,454
- ----------------------------------------------------------------------
Ahrend Groep N.V. (Furniture) 105,000 6,359,390
- ----------------------------------------------------------------------
Baan Co. N.V.-ADR
(Computer Software/Services)(a) 75,000 4,031,250
- ----------------------------------------------------------------------
Beter Bed Holding N.V. (Furniture)(a) 115,000 2,012,780
- ----------------------------------------------------------------------
Cap Gemini N.V.
(Computer Software/Services)(a) 160,000 5,223,015
- ----------------------------------------------------------------------
CMG PLC (Computer Software/Services) 340,000 6,352,204
- ----------------------------------------------------------------------
Content Beheer N.V. (Business Services) 70,000 2,529,385
- ----------------------------------------------------------------------
De Boer Winkelbedrijven N.V.
(Retail-Food & Drug) 25,000 1,924,755
- ----------------------------------------------------------------------
Getronics N.V. (Computer
Software/Services) 300,000 9,084,843
- ----------------------------------------------------------------------
IHC Caland N.V. (Trucking) 114,000 5,628,907
- ----------------------------------------------------------------------
Internatio-Muller N.V. (Conglomerates) 288,000 8,351,897
- ----------------------------------------------------------------------
Koninklijke Van Ommeren N.V.
(Transportation)(a) 122,000 4,752,759
- ----------------------------------------------------------------------
NORIT N.V. (Cosmetics & Toiletries) 200,000 3,449,161
- ----------------------------------------------------------------------
Oce-Van Der Grinten N.V.
(Office Automation) 67,000 8,105,477
- ----------------------------------------------------------------------
Ordina Beheer N.V. (Computer
Software/Services)(a) 80,000 5,358,518
- ----------------------------------------------------------------------
Randstad Holdings N.V. (Business
Services) 46,400 4,167,736
- ----------------------------------------------------------------------
79,970,531
- ----------------------------------------------------------------------
NORWAY-1.23%
Ekornes A.S.A. (Furniture) 300,000 2,211,706
- ----------------------------------------------------------------------
Merkantildata A.S.A.
(Computer Software/Services) 50,000 912,768
- ----------------------------------------------------------------------
Saevik Supply A.S.A. (Oil &
Gas-Services)(a) 160,000 1,864,854
- ----------------------------------------------------------------------
Smedvig A.S.A.-Class A (Oil &
Gas-Services) 160,000 3,819,581
- ----------------------------------------------------------------------
Smedvig A.S.A.-Class B (Oil &
Gas-Services) 140,000 3,292,984
- ----------------------------------------------------------------------
Tandberg A.S.A. (Telecommunications)(a) 110,000 1,228,023
- ----------------------------------------------------------------------
Tandberg Television A.S.A.
(Telecommunications)(a) 440,000 3,521,878
- ----------------------------------------------------------------------
Tomra Systems A.S.A.
(Machinery-Miscellaneous) 486,000 9,418,076
- ----------------------------------------------------------------------
26,269,870
- ----------------------------------------------------------------------
PERU-0.66%
Telefonica del Peru S.A.-Class B
(Telecommunications) 1,026,000 2,471,640
- ----------------------------------------------------------------------
Telefonica del Peru S.A.-ADR
(Telecommunications)(a) 486,500 11,676,000
- ----------------------------------------------------------------------
14,147,640
- ----------------------------------------------------------------------
PHILIPPINES-2.88%
C & P Homes, Inc. (Home Building) 14,800,000 5,612,438
- ----------------------------------------------------------------------
DMCI Holdings Inc.
(Engineering & Construction)(a) 11,700,000 5,989,761
- ----------------------------------------------------------------------
Equitable Banking Corp. (Banking)(a) 150,000 585,893
- ----------------------------------------------------------------------
Filinvest Land Inc. (Real Estate)(a) 27,213,175 6,398,244
- ----------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
PHILIPPINES-(CONTINUED)
International Container Terminal
Services, Inc. (Containers)(a) 8,150,000 $ 4,790,482
- ----------------------------------------------------------------------
Ionics Circuit Inc.
(Electronic
Components/Miscellaneous)(a) 4,832,000 2,931,816
- ----------------------------------------------------------------------
Marsman & Co., Inc.-Class B
(Medical-Drugs)(a) 6,330,000 1,440,273
- ----------------------------------------------------------------------
Metro Pacific Corp. (Conglomerates) 27,254,000 6,304,490
- ----------------------------------------------------------------------
Metropolitan Bank & Trust Co. (Banking) 424,072 8,684,068
- ----------------------------------------------------------------------
Philippine Long Distance Telephone Co.
(Telecommunications) 97,460 5,562,279
- ----------------------------------------------------------------------
Philippine Long Distance Telephone
Co.-ADR (Telecommunications) 79,700 4,443,275
- ----------------------------------------------------------------------
SM Prime Holdings Inc. (Real Estate)(a) 32,000,000 8,373,151
- ----------------------------------------------------------------------
Southeast Asia Cement Holdings, Inc.
(Building Materials)(a) 8,771,000 405,788
- ----------------------------------------------------------------------
61,521,958
- ----------------------------------------------------------------------
PORTUGAL-1.36%
Cimpor-Cimentos de Portugal S.A.
(Building Materials)(a) 250,000 5,378,200
- ----------------------------------------------------------------------
Jeronimo Martins & Filho, S.A.
(Retail-Stores)(a) 56,000 3,350,014
- ----------------------------------------------------------------------
Portugal Telecom S.A.
(Telecommunications)(a) 265,000 9,763,158
- ----------------------------------------------------------------------
Semapa (Building Materials)(a) 110,000 2,353,753
- ----------------------------------------------------------------------
Telecel-Comunicacaoes Pessoais, S.A.
(Telecommunications)(a) 60,000 5,166,523
- ----------------------------------------------------------------------
Telecel-Comunicacaoes Pessoais, S.A.-ADR
(Telecommunications)(a) 34,900 3,010,125
- ----------------------------------------------------------------------
29,021,773
- ----------------------------------------------------------------------
SINGAPORE-1.51%
City Developments Ltd. (Real Estate) 789,000 6,377,409
- ----------------------------------------------------------------------
DBS Land Ltd. (Real Estate) 3,030,000 9,796,477
- ----------------------------------------------------------------------
Overseas Union Bank Ltd. (Banking) 1,030,000 6,759,931
- ----------------------------------------------------------------------
Wing Tai Holdings Ltd. (Real Estate) 3,600,000 9,301,554
- ----------------------------------------------------------------------
32,235,371
- ----------------------------------------------------------------------
SOUTH AFRICA-0.42%
Dimension Data Holdings Ltd.
(Computer Peripherals)(a) 1,008,000 3,400,427
- ----------------------------------------------------------------------
Sasol Ltd.
(Oil & Gas-Exploration & Production) 438,850 5,625,649
- ----------------------------------------------------------------------
9,026,076
- ----------------------------------------------------------------------
SPAIN-0.83%
Azkoyen S.A. (Machinery-Miscellaneous) 17,000 2,546,425
- ----------------------------------------------------------------------
Mapfre Vida (Insurance-Life & Health)(a) 54,000 3,475,531
- ----------------------------------------------------------------------
Prosegur, CIA de Seguridad S.A.
(Business Services) 400,000 4,336,377
- ----------------------------------------------------------------------
Tele Pizza, S.A. (Restaurants)(a) 100,000 4,582,607
- ----------------------------------------------------------------------
Vidrala S.A. (Containers) 40,000 2,886,358
- ----------------------------------------------------------------------
17,827,298
- ----------------------------------------------------------------------
SWEDEN-1.77%
AB Lindex (Retail-Stores)(a) 130,000 2,792,331
- ----------------------------------------------------------------------
Allgon A.B.-Class B (Electronic
Components/Miscellaneous) 270,000 7,399,901
- ----------------------------------------------------------------------
Assa Abloy A.B.-Class B
(Machinery-Miscellaneous)(a) 230,000 4,500,491
- ----------------------------------------------------------------------
Esselte A.B.-Class B (Office Products)(a) 200,000 4,563,591
- ----------------------------------------------------------------------
Scandic Hotels A.B. (Hotels/Motels)(a) 230,000 3,840,810
- ----------------------------------------------------------------------
Securitas A.B.-Class B
(Security & Safety Services) 126,300 3,042,908
- ----------------------------------------------------------------------
Spectra-Physics A.B. (Electronic
Components/Miscellaneous) 120,000 2,080,385
- ----------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWEDEN-(CONTINUED)
Telefonaktiebolaget LM Ericsson-ADR
(Telecommunications) 152,160 $ 5,116,380
- ----------------------------------------------------------------------
WM-Data A.B.-Class B
(Computer Software/Services)(a) 60,000 4,359,631
- ----------------------------------------------------------------------
37,696,428
- ----------------------------------------------------------------------
SWITZERLAND-2.07%
Ares-Serono Group-Class B (Medical-Drugs) 2,000 2,683,671
- ----------------------------------------------------------------------
Disetronic Holding A.G.
(Medical-Drugs)(a) 2,000 4,389,119
- ----------------------------------------------------------------------
Gurit-Heberlein A.G. (Textiles)(a) 900 2,304,796
- ----------------------------------------------------------------------
Kuoni Reisen A.G. (Leisure &
Recreation)(a) 1,600 4,602,130
- ----------------------------------------------------------------------
Logitech International S.A.
(Computer Peripherals) 30,000 5,494,878
- ----------------------------------------------------------------------
Logitech International S.A.-ADR
(Computer Peripherals)(a) 100,000 1,837,500
- ----------------------------------------------------------------------
Mikron Holding A.G. (Machinery-Heavy)(a) 17,000 2,537,141
- ----------------------------------------------------------------------
Rieter Holdings Ltd.
(Machinery-Miscellaneous)(a) 18,500 5,873,414
- ----------------------------------------------------------------------
Saurer A.G. (Machinery-Miscellaneous)(a) 9,500 4,975,239
- ----------------------------------------------------------------------
Stratec Holding A.G.
(Medical Instruments/Products)(a) 2,600 3,950,885
- ----------------------------------------------------------------------
TAG Heuer International S.A.
(Consumer Non-Durables)(a) 40,000 5,616,987
- ----------------------------------------------------------------------
44,265,760
- ----------------------------------------------------------------------
THAILAND-0.36%
Bank of Ayudhya Public Co., Ltd.
(Banking) 87,475 224,359
- ----------------------------------------------------------------------
Hana Microelectronics Public Co., Ltd.
(Electronic Components/Miscellaneous) 452,400 2,441,895
- ----------------------------------------------------------------------
Krung Thai Bank Public Co. Ltd. (Banking) 1,687,670 2,115,846
- ----------------------------------------------------------------------
Siam Commercial Bank PLC (Banking) 377,100 2,208,682
- ----------------------------------------------------------------------
Thai Theparos Food Product Public Co.
Ltd. (Food/Processing)(a) 215,500 676,467
- ----------------------------------------------------------------------
7,667,249
- ----------------------------------------------------------------------
UNITED KINGDOM-8.07%
Aegis Group PLC
(Advertising/Broadcasting) 6,000,000 5,980,550
- ----------------------------------------------------------------------
Airtours PLC (Leisure & Recreation) 815,000 12,112,723
- ----------------------------------------------------------------------
Alexon Group PLC (Retail-Stores)(a) 555,000 1,781,036
- ----------------------------------------------------------------------
Astec (BSR) PLC (Electronic
Components/Miscellaneous) 1,300,000 3,170,989
- ----------------------------------------------------------------------
Avis Europe PLC (Transportation)
(Acquired 03/26/97; cost
$2,977,263)(a)(b) 1,484,550 3,248,205
- ----------------------------------------------------------------------
Blacks Leisure Group PLC (Retail-Stores) 200,000 1,552,674
- ----------------------------------------------------------------------
British-Borneo Petroleum Syndicate PLC
(Oil & Gas-Exploration & Production) 360,000 7,410,049
- ----------------------------------------------------------------------
Capita Group PLC
(Computer Software/Services) 570,000 2,203,322
- ----------------------------------------------------------------------
Capital Radio PLC
(Advertising/Broadcasting) 250,000 2,196,110
- ----------------------------------------------------------------------
Caradon PLC (Building Materials) 1,000,000 4,027,552
- ----------------------------------------------------------------------
Carpetright PLC (Retail-Stores) 142,000 1,088,590
- ----------------------------------------------------------------------
Compass Group PLC (Restaurants) 335,000 3,676,801
- ----------------------------------------------------------------------
Danka Business Systems PLC-ADR
(Office Automation) 114,700 3,505,519
- ----------------------------------------------------------------------
Dewhirst Group PLC (Textiles) 404,000 1,289,918
- ----------------------------------------------------------------------
D.F.S. Furniture Co. PLC (Retail-Stores) 660,000 5,947,488
- ----------------------------------------------------------------------
Dr. Solomon's Group PLC-ADR
(Computer Software/Services)(a) 109,600 2,534,500
- ----------------------------------------------------------------------
FKI PLC (Conglomerates) 1,125,000 3,318,476
- ----------------------------------------------------------------------
Games Workshop Group PLC
(Leisure & Recreation) 165,000 1,743,598
- ----------------------------------------------------------------------
Go-Ahead Group PLC (The) (Transportation) 230,000 1,763,209
- ----------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Goode Durrant PLC (Business Services) 214,000 $ 1,607,601
- ----------------------------------------------------------------------
Graseby PLC (Medical
Instruments/Products) 425,000 985,008
- ----------------------------------------------------------------------
Harvey Nichols PLC (Retail-Stores)(a) 330,000 1,658,023
- ----------------------------------------------------------------------
Holliday Chemical Holdings PLC
(Chemicals) 675,000 1,651,945
- ----------------------------------------------------------------------
J.D. Wetherspoon PLC (Restaurants) 105,000 1,991,086
- ----------------------------------------------------------------------
Jarvis Hotels PLC (Hotels/Motels)(a) 675,000 1,695,705
- ----------------------------------------------------------------------
JBA Holdings PLC
(Computer Software/Services) 150,000 1,993,517
- ----------------------------------------------------------------------
JJB Sports PLC (Retail-Stores) 215,000 1,573,298
- ----------------------------------------------------------------------
Logica PLC (Computer Software/Services) 300,000 4,190,032
- ----------------------------------------------------------------------
London Forfaiting Co. PLC
(Finance-Asset Management) 340,000 2,220,746
- ----------------------------------------------------------------------
London International Group PLC
(Cosmetics & Toiletries)(a) 2,000,000 5,850,890
- ----------------------------------------------------------------------
Manchester United PLC (Leisure &
Recreation) 500,000 5,324,148
- ----------------------------------------------------------------------
Mayflower Corp. PLC (The)
(Automobile/Trucks Parts & Tires) 890,000 2,149,271
- ----------------------------------------------------------------------
Medeva PLC (Medical-Drugs) 325,000 1,580,227
- ----------------------------------------------------------------------
Millennium & Copthorne Hotels PLC
(Hotels/Motels) 350,000 2,138,574
- ----------------------------------------------------------------------
Misys PLC (Computer Software/Services) 500,000 10,028,363
- ----------------------------------------------------------------------
P&P PLC (Computer Mini/PCs) 471,000 1,687,050
- ----------------------------------------------------------------------
Parity PLC (Computer Software/Services) 350,000 2,779,578
- ----------------------------------------------------------------------
PizzaExpress PLC (Restaurants) 387,000 4,334,149
- ----------------------------------------------------------------------
Powerscreen International PLC
(Machinery-Heavy) 515,000 5,070,705
- ----------------------------------------------------------------------
Provident Financial PLC
(Finance-Consumer Credit) 1,000,000 9,254,456
- ----------------------------------------------------------------------
Sage Group PLC (The)
(Computer Software/Services) 300,000 3,119,125
- ----------------------------------------------------------------------
Scholl PLC (Cosmetics & Toiletries) 200,000 975,688
- ----------------------------------------------------------------------
SEMA Group PLC (Computer
Software/Services) 500,000 9,704,214
- ----------------------------------------------------------------------
SIG PLC (Building Materials) 420,000 2,232,739
- ----------------------------------------------------------------------
Spirax-Sarco Engineering PLC
(Machinery-Miscellaneous) 130,000 1,493,840
- ----------------------------------------------------------------------
St. Ives PLC (Containers) 201,000 1,723,323
- ----------------------------------------------------------------------
Stagecoach Holdings PLC (Transportation) 790,000 7,611,912
- ----------------------------------------------------------------------
Stanley Leisure PLC (Gaming) 425,000 1,901,135
- ----------------------------------------------------------------------
Taylor Woodrow PLC (Engineering &
Construction) 1,450,000 4,512,155
- ----------------------------------------------------------------------
TBI PLC (Real Estate) 500,000 652,350
- ----------------------------------------------------------------------
172,242,162
- ----------------------------------------------------------------------
Total Foreign Stocks & Other Equity
Interests 1,332,775,255
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
DOMESTIC CONVERTIBLE CORPORATE BONDS-0.09%
ADVERTISING/BROADCASTING-0.05%
Jacor Communications Inc.,
Conv. Sr. LYON 5.50%; 06/12/11 $2,350,000 1,086,875
- ------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-0.02%
Cityscape Financial Corp.,
Conv. Sub. Deb., 6.00%; 05/01/06
(Acquired 08/06/96; cost
$718,588)(b) 520,000 344,911
- ------------------------------------------------------------------
MEDICAL (PATIENT SERVICES)-0.02%
Multicare Companies Inc.,
Conv. Sub. Deb., 7.00%; 03/15/03
(Acquired 01/13/97; cost
$480,000)(b) 400,000 458,000
- ------------------------------------------------------------------
Total Domestic Convertible
Corporate Bonds 1,889,786
- ------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
FOREIGN CONVERTIBLE CORPORATE BONDS-0.36%
HONG KONG-0.11%
New World Infrastructure Ltd.
(Banking), Conv. Bonds,
5.00%, 07/15/01
(Acquired 04/10/97-04/11/97; cost
$2,172,563)(b) $1,850,000 $ 2,104,375
- ------------------------------------------------------------------
New World Infrastructure Ltd.
(Banking), Conv. Bonds,
5.00%, 07/15/01 250,000 284,375
- ------------------------------------------------------------------
2,388,750
- ------------------------------------------------------------------
NETHERLANDS-0.14%
Baan Co., N.V. (Computer
Software/Services), Conv. Sub.
Notes, 4.50%, 12/15/01
(Acquired 01/13/97-01/24/97; cost
$2,585,688)(b) 2,245,000 3,048,283
- ------------------------------------------------------------------
- ------------------------------------------------------------------
PHILIPPINES-0.11%
Metropolitan Bank & Trust
International Finance Ltd.
(Banking),
Conv. Deb., 2.75%, 09/10/00 $1,815,000 $ 2,323,200
- ------------------------------------------------------------------
Total Foreign Convertible
Corporate Bonds 7,760,233
- ------------------------------------------------------------------
REPURCHASE AGREEMENT(d)-0.38%
HSBC Securities, Inc.,
5.05%, 05/01/97(e) 8,219,390 8,219,390
- ------------------------------------------------------------------
TOTAL INVESTMENTS-98.30% 2,099,330,615
- ------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-1.70% 36,300,665
- ------------------------------------------------------------------
NET ASSETS-100.00% $2,135,631,280
==================================================================
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
Conv. -- Convertible
Deb. -- Debentures
GDR -- Global Depository Receipt
LYON -- Liquid Yield Option Notes
Rts. -- Rights
Sr. -- Senior
Sub. -- Subordinated
Wts. -- Warrants
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 04/30/97 were $11,568,366,
which represented 0.54% of the Fund's net assets.
(c) Zero coupon bond. The interest rate shown represents the rate of original
issue discount.
(d) 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, private accounts and certain
non-registered investment companies managed by the investment advisor or its
affiliates.
(e) Joint repurchase agreement entered into 04/30/97 with a maturing value of
$100,014,028. Collateralized by $96,950,000 U.S. Government obligations,
7.50% to 7.875% due 10/31/99 to 12/31/99 with an aggregate market value at
04/30/97 of $102,002,050.
See Notes to Financial Statements.
14
<PAGE> 17
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$1,871,399,840) $2,099,330,615
- ------------------------------------------------------------
Foreign currencies, at market value (cost
$27,777,977) 27,678,737
- ------------------------------------------------------------
Receivables for:
Investments sold 26,417,685
- ------------------------------------------------------------
Capital stock sold 7,157,174
- ------------------------------------------------------------
Dividends and interest 3,055,831
- ------------------------------------------------------------
Investment for deferred compensation plan 10,249
- ------------------------------------------------------------
Other assets 277,050
- ------------------------------------------------------------
Total assets 2,163,927,341
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 19,547,514
- ------------------------------------------------------------
Capital stock reacquired 4,748,214
- ------------------------------------------------------------
Deferred compensation 10,249
- ------------------------------------------------------------
Accrued advisory fees 1,513,497
- ------------------------------------------------------------
Accrued administrative services fees 8,967
- ------------------------------------------------------------
Accrued directors' fees 4,061
- ------------------------------------------------------------
Accrued distribution fees 1,549,165
- ------------------------------------------------------------
Accrued transfer agent fees 458,679
- ------------------------------------------------------------
Accrued operating expenses 455,715
- ------------------------------------------------------------
Total liabilities 28,296,061
- ------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $2,135,631,280
============================================================
NET ASSETS:
Class A $1,098,005,480
============================================================
Class B $1,037,625,800
============================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
CLASS A:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 70,728,784
============================================================
CLASS B:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 67,771,687
============================================================
CLASS A:
Net asset value and redemption price per
share $ 15.52
============================================================
Offering price per share:
(Net asset value $15.52 divided by 95.25%)$ 16.29
============================================================
CLASS B:
Net asset value and offering price per
share $ 15.31
============================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $833,354 foreign withholding
tax) $ 7,676,217
- -------------------------------------------------------------
Interest 903,931
- -------------------------------------------------------------
Total investment income 8,580,148
- -------------------------------------------------------------
EXPENSES:
Advisory fees 8,808,576
- -------------------------------------------------------------
Administrative services fees 54,405
- -------------------------------------------------------------
Directors' fees 6,626
- -------------------------------------------------------------
Distribution fees-Class A 2,631,007
- -------------------------------------------------------------
Distribution fees-Class B 4,809,316
- -------------------------------------------------------------
Custodian fees 680,546
- -------------------------------------------------------------
Transfer agent fees-Class A 1,237,431
- -------------------------------------------------------------
Transfer agent fees-Class B 1,365,858
- -------------------------------------------------------------
Other 526,876
- -------------------------------------------------------------
Total expenses 20,120,641
- -------------------------------------------------------------
Less: Expenses paid indirectly (16,745)
- -------------------------------------------------------------
Net expenses 20,103,896
- -------------------------------------------------------------
Net investment income (loss) (11,523,748)
- -------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) on sales of:
Investment securities (64,423,236)
- -------------------------------------------------------------
Foreign currencies (618,506)
- -------------------------------------------------------------
(65,041,742)
- -------------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities 26,301,048
- -------------------------------------------------------------
Foreign currencies (188,075)
- -------------------------------------------------------------
26,112,973
- -------------------------------------------------------------
Net gain (loss) on investment securities
and foreign
currencies (38,928,769)
- -------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(50,452,517)
==============================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1997 and the year ended October 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1997 1996
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (11,523,748) $ (8,221,031)
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities
and foreign currencies (65,041,742) (32,408,407)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
foreign currencies 26,112,973 171,434,202
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations (50,452,517) 130,804,764
- -----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized capital gains:
Class A -- (766,625)
- -----------------------------------------------------------------------------------------------
Class B -- (520,242)
- -----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 202,334,036 657,118,189
- -----------------------------------------------------------------------------------------------
Class B 257,215,785 635,669,948
- -----------------------------------------------------------------------------------------------
Net increase in net assets 409,097,304 1,422,306,034
- -----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,726,533,976 304,227,942
- -----------------------------------------------------------------------------------------------
End of period $2,135,631,280 $1,726,533,976
===============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $2,016,588,400 $1,557,038,579
- -----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (11,537,802) (14,054)
- -----------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of
investment securities and
foreign currencies (97,223,213) (32,181,471)
- -----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 227,803,895 201,690,922
- -----------------------------------------------------------------------------------------------
$2,135,631,280 $1,726,533,976
===============================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Aggressive Growth Fund (the "Fund") is a series portfolio of AIM
International Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company consisting of four separate
series portfolios: AIM Global Aggressive Growth Fund, AIM Global Growth Fund,
AIM Global Income Fund and AIM International Equity Fund. The Fund currently
offers two different classes of shares: Class A shares and Class B shares. Class
A shares are sold with a front-end sales charge. Class B shares are sold with a
contingent deferred sales charge. Matters affecting each portfolio or class are
voted on exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is to provide above-average long-term growth of
capital appreciation. The Fund seeks to achieve its objective by investing in a
portfolio of global equity securities including securities of selected companies
with relatively small market capitalization.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) 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. 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
16
<PAGE> 19
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. Debt obligations (including convertible bonds)
are valued on the basis of prices provided by an independent pricing service.
Prices provided by the pricing service may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as yield,
type of issue, coupon rate and maturity date. 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 would 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 currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a forward currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
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. The Fund has a capital loss
carryforward of $32,147,412 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized,
through the year 2004.
F. Expenses -- Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to both
classes, e.g. advisory fees, are allocated between them.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master advisory agreement, the
Fund pays an advisory fee to AIM at the annual rate of 0.90% of the first $1
billion of the Fund's average daily net assets, plus 0.85% of the Fund's average
daily net assets in excess of $1 billion.
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, 1997, AIM
was reimbursed $54,405 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, 1997, AFS was paid
$1,554,464 for such services.
The Fund received reductions in transfer agency fees of $15,802 from dividends
received on balances in cash management bank accounts. In addition, the Fund
incurred expenses of $943 for pricing services which are paid through directed
brokerage commissions. The effect of the above arrangements resulted in a
reduction in the Fund's total expenses of $16,745 during the six months ended
April 30, 1997.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A shares and the Class B shares of the Fund. The Company has adopted
distribution plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class A shares (the "Class A Plan") and with respect to the Fund's Class
B shares (the "Class B Plan") (collectively, the "Plans"). The Fund, pursuant to
the Class A Plan, pays AIM Distributors an annual rate of 0.50% of the average
daily net assets attributable to the Class A shares. The Class A Plan is
designed to compensate AIM Distributors for certain promotional and other sales
related costs. Of the total compensation payable, the Fund pays a service fee of
0.25% to selected dealers and financial institutions who furnish continuing
personal shareholder services to their customers who purchase and own Class A
shares of the Fund. The Fund, pursuant to the Class B Plan, will pay AIM
Distributors an annual rate of 1.00% of the average daily net assets
attributable to the Class B
17
<PAGE> 20
shares. Of this amount, the Fund pays a service fee of 0.25% of the average
daily net assets of the Class B shares to selected dealers and financial
institutions who furnish continuing personal shareholder services to their
customers who purchase and own Class B shares of the Fund. Any amounts not paid
as a service fee under such Plans would constitute an asset-based sales charge.
The Plans also impose a cap on the total sales charges, including asset-based
sales charges, that may be paid by the respective classes. AIM Distributors may,
from time to time, assign, transfer or pledge to one or more designees, its
rights to all or a designated portion of (a) compensation received by AIM
Distributors from the Fund pursuant to the Class B Plan (but not AIM
Distributors' duties and obligations pursuant to the Class B Plan) and (b) any
contingent deferred sales charges received by AIM Distributors related to the
Class B shares. During the six months ended April 30, 1997, the Class A shares
and the Class B shares paid AIM Distributors $2,631,007 and $4,809,316,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $1,429,678 from the sales of the
Class A shares of the Fund during the six months ended April 30, 1997. 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, 1997, AIM Distributors received commissions of $82,914 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, 1997, the Fund incurred legal fees of
$8,781 for services rendered by the law firm of Kramer, Levin, Naftalis &
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 is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $325,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. Interest on
borrowings under the line of credit is payable on maturity or prepayment date.
During the six months ended April 30, 1997, the Fund did not borrow under the
line of credit agreement. The funds which are party to the line of credit are
charged a commitment fee of 0.08% on the unused balance of the committed line.
The commitment fee is allocated among the funds based on their respective
average net assets for the period.
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, 1997, on a
tax basis, was $981,957,969 and $527,989,778, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of April 30, 1997, on a tax basis, is as follows.
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 346,645,643
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (118,714,868)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 227,930,775
=========================================================
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
NOTE 6-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1997 and the year ended October 31, 1996 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1997 OCTOBER 31, 1996
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Sold:
Class A 21,617,741 $ 351,813,876 50,205,954 $ 748,519,743
- --------------------- ---------- -------------- ---------- --------------
Class B 20,324,555 326,605,732 45,280,451 673,914,740
- --------------------- ---------- -------------- ---------- --------------
Issued as
reinvestment of
dividends:
Class A -- -- 56,549 727,221
- --------------------- ---------- -------------- ---------- --------------
Class B -- -- 38,442 491,285
- --------------------- ---------- -------------- ---------- --------------
Reacquired:
Class A (9,236,278) (149,479,840) (6,124,044) (92,128,775)
- --------------------- ---------- -------------- ---------- --------------
Class B (4,362,967) (69,389,947) (2,588,161) (38,736,077)
- --------------------- ---------- -------------- ---------- --------------
28,343,051 $ 459,549,821 86,869,191 $1,292,788,137
===================== ========== ============== ========== ==============
</TABLE>
18
<PAGE> 21
NOTE 9-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a Class A share and Class B share
outstanding during the six months ended April 30, 1997, each of the years in the
two-year period ended October 31, 1996 and the period September 15, 1994 (date
operations commenced) through October 31, 1994.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, ------------------------------------------
1997 1996 1995 1994
---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 15.76 $ 13.09 $ 10.22 $ 10.00
- ------------------------------------------------------------ ---------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.07) (0.09)(a) (0.09)(a) --
- ------------------------------------------------------------ ---------- -------- -------- --------
Net gains (losses) on securities (both realized and
unrealized) (0.17) 2.81 2.96 0.22
- ------------------------------------------------------------ ---------- -------- -------- --------
Total from investment operations (0.24) 2.72 2.87 0.22
- ------------------------------------------------------------ ---------- -------- -------- --------
Less distributions:
Distributions from capital gains -- (0.05) -- --
- ------------------------------------------------------------ ---------- -------- -------- --------
Net asset value, end of period $ 15.52 $ 15.76 $ 13.09 $ 10.22
============================================================ ========== ======== ======== ========
Total return(b) (1.52)% 20.83% 28.08% 2.20%
============================================================ ========== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,098,005 $919,319 $186,029 $ 18,410
============================================================ ========== ======== ======== ========
Ratio of expenses to average net assets 1.74%(c)(d) 1.83% 2.11% 2.02%(e)(f)
============================================================ ========== ======== ======== ========
Ratio of net investment income (loss) to average net assets (0.89)%(c) (0.62)% (0.68)% 0.27%(f)(g)
============================================================ ========== ======== ======== ========
Portfolio turnover rate 27% 44% 64% 2%
============================================================ ========== ======== ======== ========
Average brokerage commission rate paid(h) $ 0.0285 $ 0.0155 N/A N/A
============================================================ ========== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(c) Ratios are annualized and based on average net assets of $1,061,124,353.
(d) Ratio includes indirectly paid expenses. Excluding indirectly paid expenses,
the ratio of expenses to average net assets would have been the same.
(e) After fee waivers and expense reimbursements. Ratio of expenses to average
net assets prior to fee waivers and expense reimbursements is 4.03%
(annualized) for 1994.
(f) Annualized.
(g) After fee waivers and expense reimbursements. Ratio of net investment income
(loss) to average net assets prior to fee waivers and expense reimbursements
is (1.74)% (annualized) for 1994.
(h) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, ------------------------------------------
1997 1996 1995 1994
---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 15.58 $ 13.02 $ 10.21 $ 10.00
- ------------------------------------------------------------ ---------- -------- -------- -------
Income from investment operations:
Net investment income (loss) (0.10) (0.17)(a) (0.14)(a) --
- ------------------------------------------------------------ ---------- -------- -------- -------
Net gains (losses) on securities (both realized and
unrealized) (0.17) 2.78 2.95 0.21
- ------------------------------------------------------------ ---------- -------- -------- -------
Total from investment operations (0.27) 2.61 2.81 0.21
- ------------------------------------------------------------ ---------- -------- -------- -------
Less distributions:
Distributions from capital gains -- (0.05) -- --
- ------------------------------------------------------------ ---------- -------- -------- -------
Net asset value, end of period $ 15.31 $ 15.58 $ 13.02 $ 10.21
============================================================ ========== ======== ======== ========
Total return(b) (1.73)% 20.09% 27.52% 2.10%
============================================================ ========== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,037,626 $807,215 $118,199 $ 6,201
============================================================ ========== ======== ======== ========
Ratio of expenses to average net assets 2.28%(c)(d) 2.37% 2.62% 2.54%(e)(f)
============================================================ ========== ======== ======== ========
Ratio of net investment income (loss) to average net assets (1.42)%(c) (1.16)% (1.19)% (0.25)%(f)(g)
============================================================ ========== ======== ======== ========
Portfolio turnover rate 27% 44% 64% 2%
============================================================ ========== ======== ======== ========
Average brokerage commission rate paid(h) $ 0.0285 $ 0.0155 N/A N/A
============================================================ ========== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(c) Ratios are annualized and based on average net assets of $969,834,513.
(d) Ratio includes indirectly paid expenses. Excluding indirectly paid expenses,
the ratio of expenses to average assets would have been 2.27% (annualized)
for 1997.
(e) After fee waivers and expense reimbursements. Ratio of expenses to average
net assets prior to fee waivers and expense reimbursements is 4.43%
(annualized) for 1994.
(f) Annualized.
(g) After fee waivers and expense reimbursements. Ratio of net investment income
(loss) to average net assets prior to fee waivers and expense reimbursements
is (2.14)% (annualized) for 1994.
(h) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
19
<PAGE> 22
SUPPLEMENTAL PROXY INFORMATION -- SHAREHOLDER MEETING
- --------------------------------------------------------------------------------
An annual meeting of shareholders of the Company was held on February 7, 1997.
The meeting was held for the following purposes:
(1) To elect directors as follows: Charles T. Bauer, Bruce L. Crockett, Owen
Daly II, Carl Frischling, Robert H. Graham, John F. Kroeger, Lewis F.
Pennock, Ian W. Robinson and Louis S. Sklar.
(2) To approve a new Investment Advisory Agreement between the Company and AIM.
(3) To approve the elimination of the fundamental investment policy prohibiting
or restricting investments in other companies and/or the amendment of
certain related fundamental investment policies.
(4) Ratification of KPMG Peat Marwick LLP as independent accountants for the
Company's fiscal year ended October 31, 1997.
The following votes were cast with respect to each item:
<TABLE>
<CAPTION>
Votes
Director/Matter Votes For Against Abstentions
--------------- --------- --------- -----------
<S> <C> <C> <C> <C>
(1) Charles T. Bauer............................................ 130,433,380 0 3,798,959
Bruce L. Crockett........................................... 130,563,964 0 3,668,375
Owen Daly II................................................ 130,421,284 0 3,811,055
Carl Frischling............................................. 130,515,713 0 3,716,626
Robert H. Graham............................................ 130,587,498 0 3,644,841
John F. Kroeger............................................. 130,446,846 0 3,785,493
Lewis F. Pennock............................................ 130,506,142 0 3,726,197
Ian W. Robinson............................................. 130,446,093 0 3,786,246
Louis S. Sklar.............................................. 130,573,480 0 3,658,859
(2) Approval of the new Investment Advisory Agreement........... 59,560,291 868,768 2,843,639
(3) Elimination of Policy prohibiting investments in other
investment companies........................................ 44,936,713 2,141,368 2,956,734
(4) KPMG Peat Marwick LLP....................................... 128,509,801 995,829 4,726,709
</TABLE>
20
<PAGE> 23
Directors & Officers
<TABLE>
<S> <C>
Board of Directors OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Formerly 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 100
Owen Daly II Carol F. Relihan Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. and Secretary TRANSFER AGENT
Carl Frischling Gary T. Crum A I M Fund Services, Inc.
Partner Senior Vice President P.O. Box 4739
Kramer, Levin, Naftalis & Frankel Houston, TX 77210-4739
Scott G. Lucas
Jack Fields Senior Vice President CUSTODIAN
Formerly Member of the
U.S. House of Representatives Dana R. Sutton State Street Bank & Trust
Vice President and Assistant Treasurer 225 Franklin Street
Robert H. Graham Boston, MA 02110
President and Chief Executive Officer Robert G. Alley
A I M Management Group Inc. Vice President COUNSEL TO THE FUND
John F. Kroeger Melville B. Cox Ballard Spahr
Formerly Consultant Vice President Andrews & Ingersoll
Wendell & Stockel Associates, Inc. 1735 Market Street
Jonathan C. Schoolar Philadelphia, PA 19103
Lewis F. Pennock Vice President
Attorney COUNSEL TO THE DIRECTORS
P. Michelle Grace
Ian W. Robinson Assistant Secretary Kramer, Levin, Naftalis & Frankel
Consultant; Formerly Executive 919 Third Avenue
Vice President and David L. Kite New York, NY 10022
Chief Financial Officer Assistant Secretary
Bell Atlantic Management DISTRIBUTOR
Services, Inc. Nancy L. Martin
Assistant Secretary A I M Distributors, Inc.
Louis S. Sklar 11 Greenway Plaza
Executive Vice President Ofelia M. Mayo Suite 100
Hines Interests Assistant Secretary Houston, TX 77046
Limited Partnership
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
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THE AIM FAMILY OF FUNDS--Registered Trademark--
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
[PHOTO OF AIM Blue Chip Fund
11 GREENWAY PLAZA AIM Global Growth Fund
APPEARS HERE] AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH
AIM Global Utilities Fund
HIGH CURRENT INCOME
AIM High Yield Fund
CURRENT INCOME
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of CT
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE OF SAFETY
AIM Intermediate Government Fund
HIGH DEGREE OF SAFETY AND CURRENT INCOME
AIM Limited Maturity Treasury Shares
STABILITY, LIQUIDITY, AND CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND CURRENT TAX-FREE INCOME
AIM Tax-Exempt Cash Fund
A I M Management Group Inc. has provided leadership in the *AIM Aggressive Growth Fund was closed to new investors on
mutual fund industry since 1976 and managed approximately June 5, 1997. For more complete information about any AIM
$73 billion in assets for more than 3.5 million shareholders, Fund(s), including sales charges and expenses, ask your
including individual investors, corporate clients, and financial financial consultant or securities dealer for a free
institutions as of May 23, 1997. The AIM Family of prospectus(es). Please read the prospectus(es) carefully
Funds--Registered Trademark-- is distributed nationwide, and before you invest or send money.
AIM today ranks among the nation's top 15 mutual fund
companies in assets under management, according to Lipper
Analytical Services, Inc.
[AIM LOGO APPEARS HERE] -----------------
BULK RATE
A I M Distributors, Inc. U.S. POSTAGE
11 Greenway Plaza, Suite 100 PAID
Houston, TX 77046 HOUSTON, TX
Permit No. 1919
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