<PAGE> 1
AIM GLOBAL AGGRESSIVE
GROWTH FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1998
<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 and Class C
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 CDSC on Class C shares is 1% for the first year after purchase. The
performance of the Fund's Class B and Class C shares will differ from that of
Class A shares due to differing fees and expenses.
o Because Class C shares have been offered for less than one year (since
8/4/97), all total return figures for Class C shares reflect cumulative total
return that has not been annualized.
o The Fund's average annual total returns, including sales charges, for periods
ended 3/31/98 (the most recent calendar quarter-end) are as follows: For
Class A shares, one year, 16.34%; since inception 9/15/94, 18.74%. For Class
B shares, one year, 16.38%; since inception 9/15/94, 19.19%. For C shares,
cumulative total return since inception 8/4/97, 1.56%.
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 is no guarantee of comparable future results.
o The Fund's investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o International investing presents certain risks not associated with investing
solely in the U.S. These include risks relating to fluctuations in the value
of the U.S. dollar relative to the value of other currencies, the custody
arrangements made for the Fund's foreign holdings, differences in accounting,
political risks, and the lesser degree of public information required to be
provided by non-U.S. companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Morgan Stanley Capital International World Index is a group of unmanaged
global securities tracked by Morgan Stanley Capital International.
o The Dow Jones Industrial Average is a price-weighted average of 30 actively
traded primarily industrial stocks.
o An investment cannot be made in the indexes 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:
Last October, equity markets worldwide had just been shaken
[PHOTO OF by the currency crisis in Southeast Asia. By the April 30,
Charles T. 1998, end of this reporting period, most markets had
Bauer, recovered nicely, with domestic equities reaching new highs
Chairman of and European markets outdoing even the U.S.'s heady pace.
the Board of Only Asian markets remained in the doldrums. Bonds have
THE FUND turned in a solid performance with generous real returns,
APPEARS HERE] though not as spectacular as some had predicted when the
Asian crisis first broke.
However, by the close of this reporting period, many
market participants were uneasy. Some participants fretted
about signs of speculative fever, particularly in U.S. stock
markets, where equity prices continued to rise despite
evidence that earnings growth, especially for larger
companies, had slowed considerably. The growth of European
markets also exceeded everyone's expectations, and some
wondered how long the rise could continue. All were aware that the Asian story
was not yet completed, and no one was certain how serious its ultimate impact
would be.
Of course, bull markets do end, and markets became less ebullient shortly
after this reporting period closed. For investors, the best course is to remain
realistic and ready. A well-diversified portfolio is still one of the most
effective tools for coping with shifts in a market's direction because different
asset classes and different national markets tend to move independently of one
another. Of course, your financial consultant remains your best source of
information about how to allocate your investments based on your particular
goals and situation.
AIM FURTHER DIVERSIFIES ITS OFFERINGS
Shortly after the close of this reporting period, AIM broadened its offerings to
shareholders through the addition of the GT Global group of mutual funds. During
the next few months you will be receiving more details about this transaction
and the products it adds to The AIM Family of Funds--Registered Trademark--.
In addition to making a more varied group of investments available to our
shareholders, this transaction helps strengthen AIM's position as a major
participant in the money-management industry worldwide. Such strength will
enable us to continue expanding both the scope of our fund offerings and our
menu of services for our shareholders.
YOUR FUND MANAGERS COMMENT
On the pages that follow, the managers of your AIM Fund discuss how the Fund
performed during the six months covered by this report and give their near-term
market outlook. We hope you will find their discussion informative.
We are pleased to send you this report on your Fund. If you have any
questions or comments, please contact our Client Services department at
800-959-4246 or visit our Web site at www.aimfunds.com. You can access
information about your account on our Web site and also on our automated AIM
Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 4
The Managers' Overview
EUROPEAN MARKETS CONTINUE TO
DOMINATE GLOBAL EQUITIES
A roundtable discussion with the Fund management team for AIM Global Aggressive
Growth Fund about the six-month reporting period ended April 30, 1998.
- --------------------------------------------------------------------------------
The impressive performance by European stocks was the story among international
equities during the past six months.
Q. HOW DID THE FUND PERFORM DURING THE SIX-MONTH REPORTING PERIOD?
A. The Fund posted another solid period of performance. Total return was 13.37%
for Class A shares, 13.06% for Class B shares, and 13.06% for Class C shares
for the six-month period ended April 30, 1998. Comparatively, the Morgan
Stanley Capital International (MSCI) World Index of global stocks gained
18.86% during the reporting period. It is important to note that the MSCI
World Index tracks the performance of global large-company stocks and not
global small-company stocks in which your Fund invests. There is no true
MSCI benchmark for global small-company equity performance.
Q. WHAT ACCOUNTED FOR THE FUND'S STRONG PERFORMANCE DURING THE PAST SIX MONTHS?
A. The impressive performance by European stocks was the story among
international equities during the past six months. European markets
continued to rise dramatically as markets there comprised all of the 10
top-performing international markets during the six-month period ended April
30, 1998. Spain led the way with an astounding 54.57% return, followed by
Portugal with a 52.89% advance. Furthermore, eight of the Fund's top 10
holdings were European companies. Almost 40% of the Fund's portfolio was
invested in European equities at the end of the reporting period.
In the United States, the stock market was still feeling the effects of
the Asian currency crisis during the first three months of the reporting
period. Markets were slow to recover from a significant drop in October,
just before the reporting period began, as investors were concerned about
the impact of the Asian currency devaluations on corporate profits around
the globe.
However, in the U.S. and most other developed countries, the economic
fundamentals remained sound. While the economy grew at a brisk pace,
inflation and interest rates--two forces that could potentially undermine
corporate profits--continued to be low. In this environment, the Dow Jones
Industrial Average (DJIA) resumed its upward climb in late January and broke
the 9000 point mark in April to set a record.
===========================================================================
MORNINGSTAR RATINGS
CLASS A SHARES
As of 4/30/98
---------------------------------------------------------------------------
AIM GLOBAL FUNDS IN
AGGRESSIVE GROWTH FUND INTERNATIONAL
PERIOD RATING CATEGORY
OVERALL **** N/A
3 YEARS **** 740
===========================================================================
*Morningstar proprietary ratings reflect risk-adjusted performance through
April 30, 1998. The ratings are subject to change every month. Ratings are
calculated from the funds' three-, five-, and 10-year returns (with fee
adjustments) in excess of 90-day Treasury bill returns, and a risk factor
that reflects performance below 90-day T-bill returns. If a fund scores in
the top 10% of its rating category it earns five stars, the next 22.5%
receive four stars, the middle 35% receive three stars, the next 22.5%
receive two stars, and the bottom 10% receive one star.
===========================================================================
Q. IN THIS ENVIRONMENT, HOW DID SMALL-CAP STOCKS FARE?
A. When markets skyrocketed in the second half of the reporting period,
large-cap stocks--particularly the stocks of the very largest companies, the
so-called "mega caps"--led the charge. In the uncertain market environment
created by the Asian currency crisis, investors gravitated to the stocks of
large, well-known companies. Toward the end of the reporting period, though,
the market rally began to broaden to include the stocks of smaller companies
as well. Just over 28% of the Fund was positioned in the United States at
the end of the reporting period.
Q. WHY DID EUROPEAN MARKETS PERFORM SO WELL DURING THE REPORTING PERIOD?
A. The European Economic and Monetary Union, or EMU, is scheduled to begin on
January 1, 1999. In order to qualify for the EMU, European nations must
adopt strict budgetary guidelines and improve their finances. This process
has lowered interest rates and kept inflation--the thief of wealth--at bay.
With 11 countries expected to join the EMU next year, this economic
restructuring has triggered a bull market never before seen in Europe.
Q. WERE THERE ANY OTHER FACTORS DRIVING THE EUROPEAN MARKETS?
A. We believe there were four fundamental, long-term themes that fueled this
incredible rally in Europe: privatization of state-run companies, increased
economic freedoms in Eastern Europe, corporate restructuring, and the growth
of investing in European markets.
Many state-run companies and industries have moved into private hands,
such as Portugal Telecom, a holding in the Fund's portfolio. Additionally,
the economic freedoms in Eastern Europe have created a new market of
consumers and sparked a wave of entrepreneurial efforts in the
See important fund and index disclosures inside front cover.
2
<PAGE> 5
PORTFOLIO COMPOSITION
As of April 30, 1998, based on net assets
<TABLE>
<CAPTION>
===================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 COUNTRIES TOP 10 INDUSTRIES
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Misys PLC (United Kingdom) 0.93% 1. United States 28.44% 1. Services (Commercial & Consumer) 8.26%
2. CMG PLC (Netherlands) 0.89 2. United Kingdom 9.19 2. Computers (Software & Services) 6.57
3. Airtours PLC (United Kingdom) 0.83 3. Mexico 5.64 3. Oil & Gas (Drilling & Equipment) 4.26
4. Cap Gemini N.V. (Netherlands) 0.74 4. Netherlands 5.31 4. Machinery (Diversified) 3.03
5. Porsche A. G. (Germany) 0.73 5. Canada 5.00 5. Telephone 2.95
6. Magyar Tavkozlesi (Hungary) 0.70 6. Brazil 4.79 6. Telecommunications
(Cellular/Wireless) 2.55
7. Grupo Financiero Banamex 7. Germany 3.18 7. Manufacturing (Diversified) 2.34
Accival, S.A. de C.V. (Mexico) 0.70
8. SEMA Group PLC (United Kingdom) 0.70 8. Portugal 3.11 8. Electronics (Semiconductors) 2.18
9. Grupo Televisa S.A.-GDR (Mexico) 0.67 9. France 3.08 9. Services (Computer Systems) 2.15
10. Cimpor-Cimentos de Portugal S.A. 0.67 10. Hong Kong 2.87 10. Electrical Equipment 2.10
(Portugal)
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.
===================================================================================================================================
</TABLE>
former Communist Bloc countries. Once Capitalism is planted it can grow
very quickly, and we have seen this since the fall of the Berlin Wall.
The restructuring by "Corporate Europe" has made companies leaner and
more globally competitive. We have seen immediate results of this
restructuring as European earnings growth continued to be strong during the
reporting period. Finally, thousands of Europeans have discovered the
wonders of investing in equities. As money has flowed into European
markets, the markets themselves have become larger and more liquid than
ever before.
Q. WHAT ABOUT THE REST OF THE WORLD?
A. The Fund finished the reporting period with 14.2% of its net assets in Latin
America, 4.5% in Asia and Australia, and 2% in Japan. These three regions
were decimated by the "Asian Flu" last fall and have been slow to recover.
In the first quarter, many of the Asian markets did bounce off their
bottoms, some as much as 40%, but keep in mind they were coming off very low
levels. What occurred in the last quarter of 1997 was devastating to those
fragile emerging markets, and we believe it's going to take quite some time
for Asia to fully recover from the economic crisis of last autumn.
We are very optimistic on Latin America, although the markets there were
hurt a bit by the Asian situation. Investors were concerned, perhaps overly
so, that what happened in Asia could spread to the emerging markets in Latin
America. The Mexican positions in the portfolio, which made up 5.64% of the
Fund's net assets at the end of the reporting period, hurt the overall
performance of the Fund as the Mexican market was down 6.18% for the first
three months of 1998. However, we remain positive for the long-term growth
prospects of the such Mexican companies as Kimberly-Clark de Mexico, a paper
and forest products company, and Grupo Financiero Banamex, a leading
financial company.
Q. IN WHICH INDUSTRIES WAS THE FUND POSITIONED?
A. The Fund's largest industry position was commercial and consumer services
with just over 8% of net assets. During the period of increasing prosperity,
consumers have been less interested in purchasing large items such as
washing machines and instead have been spending their money on travel and
entertainment, two sectors in which this industry is focused. Commercial and
consumer services owned by the Fund included the United Kingdom's Misys PLC,
the Fund's largest holding at 0.93%, Airtours PLC, and SEMA Group PLC.
To no one's surprise during this age of technology, the computer software
and services sector commanded 6.57% of the Fund's portfolio. The Fund was
attracted to such technology companies as Advanced Fibre Communications and
Engineering Animation, Inc., both of the United States, as well as the
Netherlands' CMG PLC, the Fund's second-largest holding at 0.89%.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND IN THE NEAR TERM?
A. We are still very positive on the United States and Europe, and very
cautious on the Pacific Rim. Conditions worldwide remain very good for
equities and small-cap stocks may be more reasonably priced than large-cap
issues, which may be attractive to investors around the globe. Things may
continue to worsen in Asia before those markets experience a recovery, so we
do not anticipate our Asian weightings to increase any time soon. In Europe,
though, we believe there will continue to be faster earnings growth with
better valuations than in the United States, because Europe's cash-to-price
earnings, price-to-book, price-to-dividend, and P/E ratios all are lower
than in the U.S. The economic outlook in Latin America seems positive as
well, although the markets there struggled during the six-month reporting
period.
The economic indicators in the U.S. remain positive, and that is good for
markets around the world because they often take their lead from the U.S. As
long as we continue to see the combination of low inflation and low interest
rates around the globe, the short-term outlook for global equities will
remain promising.
See important fund and index disclosures inside front cover.
3
<PAGE> 6
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 4/30/98. It is important to understand
the difference between your Fund and an index. An index measures the performance
of a hypothetical portfolio, 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.
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
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
4/30/95 10,305 10,790 10,749
4/30/96 14,700 15,305 12,759
4/30/97 14,834 15,365 14,079
4/30/98 18,724 18,989 18,462
================================================================================
Past performance cannot guarantee comparable future results.
================================================================================
AVERAGE ANNUAL TOTAL RETURN
As of 4/30/98. Including sales charges.
CLASS A SHARES
Inception (9/15/94) 18.91%
1 Year 20.26
CLASS B SHARES
Inception (9/15/94) 19.37%
1 Year 20.54
CLASS C SHARES
Inception (8/4/97) 3.51%*
*Total return provided is cumulative total return that has not been
annualized.
================================================================================
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. The performance of Class C shares
will differ from that of Class A and Class B shares due to differing fees and
expenses. Results for MSCI World Index are for the period 8/30/94 to 4/30/98.
Source: Towers Data Systems HYPO--Registered Trademark--.
4
<PAGE> 7
For Consideration
THE ROTH IRA: THE POWER TO KEEP MORE
Contribute After-Tax Dollars Now...So You Can Get Federally Tax-Free Savings
Later
A new and potentially more powerful type of IRA--the Roth IRA--became available
on January 1, 1998. What makes it more powerful? The Roth IRA gives you the
opportunity to keep more of what you earn.
Are you eligible to open a Roth IRA? The answer is yes if you or your spouse
has earned income for the tax year for which you want to make the contribution,
and your adjusted gross income is below $110,000 if you are a single tax filer,
$160,000 if you file jointly.
TWO KEY ROTH IRA BENEFITS:
TAX-FREE AND PENALTY-FREE WITHDRAWALS
o Of earnings after five years. Earnings on your Roth IRA are federally
tax-free if your Roth IRA account has been open for five years and you are at
least 59 1/2 years old, or in the case of death or disability. You may also use
up to $10,000 of your earnings to buy a first home (after five years).
o Of contributions at any time. For instance, if you make annual contributions
of $2,000 for the next three years, you may take out up to $6,000 and use that
money for any purpose.
HOW YOU MIGHT PUT BOTH BENEFITS TO WORK FOR YOU
Here's an example of how you may take full advantage of a Roth IRA. You are 39
1/2 years old. You contribute $2,000 after-tax annually in your Roth IRA every
year for 20 years, earning an average annual return of 10%. After 20 years,
your account has grown to $126,005. Now at age 59 1/2 you can begin taking
withdrawals and pay no federal income tax or penalty on any of your $126,005. Or
you can keep your money invested and take it out whenever you need it.
THE ROTH IRA: TO CONVERT OR NOT TO CONVERT
Can you convert your Traditional IRA to a Roth IRA? The answer is yes if you
meet these requirements:
You must pay taxes on the amount you convert. If you convert in 1998, you
can spread your tax payments over the next four years. This four-year allowance
will not be available after December 31, 1998.
You cannot convert to a Roth IRA if you are married and file your return
separately, or if your annual gross income is over $100,000.
- -----------------------------------------------------------------------------
SOME ROTH IRA CONVERSION GUIDELINES
If you can check most of these boxes, converting your Traditional IRA to a
Roth IRA may make sense for you.
o You have assets outside your retirement savings with which you can easily
afford to pay the taxes due when you convert.
o You have 10 years or more before you retire. The longer you invest tax-free,
the more you benefit.
o Your tax rate will probably be higher in retirement than it is now. If so,
you'll pay less taxes now to convert than you would pay at retirement if you
withdrew from a traditional IRA.
o You plan to convert in 1998. On January 1, 1999, the ability to spread tax
payments over four years disappears.
o You want to keep making contributions after age 70 1/2 and may wish to
pass your IRA assets on to your heirs after your death.
- -----------------------------------------------------------------------------
ROTH IRA CALCULATOR & ANALYZER
The Roth IRA Analyzer & Calculator at AIM's Internet Web
site--www.aimfunds.com--can help you determine your IRA eligibility status and
whether it makes sense for you to convert an existing IRA into a Roth IRA.
MAKE YOUR IRA CONVERSION DECISION A TRULY INFORMED ONE
Talk to your financial consultant, who knows your specific needs and goals. You
may also wish to talk with a tax adviser.
This discussion does not constitute tax advice. Your tax adviser can provide
guidance concerning your particular situation.
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-28.05%
AEROSPACE/DEFENSE-0.24%
BE Aerospace, Inc.(a) 100,000 $ 3,118,750
- ---------------------------------------------------------------
Precision Castparts Corp. 50,000 3,106,250
- ---------------------------------------------------------------
6,225,000
- ---------------------------------------------------------------
BANKS (REGIONAL)-0.35%
Bank United Corp.-Class A 150,000 7,762,500
- ---------------------------------------------------------------
First Savings Bank of Washington
Bancorp, Inc. 50,000 1,328,124
- ---------------------------------------------------------------
9,090,624
- ---------------------------------------------------------------
BIOTECHNOLOGY-0.29%
Curative Health Services, Inc.(a) 75,000 2,325,000
- ---------------------------------------------------------------
IDEXX Laboratories, Inc.(a) 235,600 5,212,650
- ---------------------------------------------------------------
7,537,650
- ---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO & CABLE)-0.59%
Heftel Broadcasting Corp.(a) 260,000 11,407,500
- ---------------------------------------------------------------
Jacor Communications, Inc.(a) 65,500 3,725,313
- ---------------------------------------------------------------
15,132,813
- ---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-0.80%
Brightpoint, Inc.(a) 437,500 8,531,250
- ---------------------------------------------------------------
Corsair Communications, Inc.(a) 100,000 1,850,000
- ---------------------------------------------------------------
REMEC, Inc.(a) 175,000 4,353,124
- ---------------------------------------------------------------
Tellabs, Inc.(a) 84,800 6,010,200
- ---------------------------------------------------------------
20,744,574
- ---------------------------------------------------------------
COMPUTERS (HARDWARE)-0.54%
Dell Computer Corp.(a) 100,000 8,075,000
- ---------------------------------------------------------------
IDX Systems Corp.(a) 132,700 5,780,744
- ---------------------------------------------------------------
13,855,744
- ---------------------------------------------------------------
COMPUTERS (NETWORKING)-0.25%
International Network Services(a) 100,000 3,362,500
- ---------------------------------------------------------------
Premiere Technologies, Inc.(a) 100,000 3,187,500
- ---------------------------------------------------------------
6,550,000
- ---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.14%
Network Appliance, Inc.(a) 100,000 3,606,250
- ---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-2.25%
Advanced Fibre Communications,
Inc.(a) 150,000 6,356,250
- ---------------------------------------------------------------
Computer Management Sciences,
Inc.(a) 100,000 2,575,000
- ---------------------------------------------------------------
Concord EFS, Inc.(a) 199,737 6,291,715
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-(CONTINUED)
Electronic Arts, Inc.(a) 77,200 $ 3,570,500
- ---------------------------------------------------------------
Engineering Animation, Inc.(a) 182,700 8,609,738
- ---------------------------------------------------------------
HBO & Co 42,400 2,536,050
- ---------------------------------------------------------------
JDA Software Group, Inc.(a) 50,000 2,528,125
- ---------------------------------------------------------------
NOVA Corp.(a) 150,000 5,100,000
- ---------------------------------------------------------------
Security Dynamics Technologies,
Inc.(a) 100,000 2,412,500
- ---------------------------------------------------------------
Sterling Commerce, Inc.(a) 104,200 4,435,013
- ---------------------------------------------------------------
USWeb Corp.(a) 100,000 2,281,250
- ---------------------------------------------------------------
Veritas Software Corp.(a) 112,500 6,159,375
- ---------------------------------------------------------------
Whittman-Hart, Inc.(a) 21,600 947,700
- ---------------------------------------------------------------
Wind River Systems(a) 129,350 4,478,744
- ---------------------------------------------------------------
58,281,960
- ---------------------------------------------------------------
CONSUMER (JEWELRY, NOVELTIES & GIFTS)-0.45%
Action Performance Companies,
Inc.(a) 100,000 3,462,500
- ---------------------------------------------------------------
Blyth Industries, Inc.(a) 222,800 8,173,975
- ---------------------------------------------------------------
11,636,475
- ---------------------------------------------------------------
CONSUMER FINANCE-0.55%
FIRSTPLUS Financial Group,
Inc.(a) 150,100 7,279,850
- ---------------------------------------------------------------
IMC Mortgage Co.(a) 200,000 3,187,500
- ---------------------------------------------------------------
SLM Holding Corp. 87,500 3,735,156
- ---------------------------------------------------------------
14,202,506
- ---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.25%
Owens & Minor, Inc. Holding Co. 168,800 3,006,750
- ---------------------------------------------------------------
Patterson Dental Co.(a) 115,350 3,395,616
- ---------------------------------------------------------------
6,402,366
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.24%
Berg Electronics Corp.(a) 152,800 3,638,550
- ---------------------------------------------------------------
Sanmina Corp.(a) 111,000 9,990,000
- ---------------------------------------------------------------
Sawtek Inc.(a) 150,000 4,556,250
- ---------------------------------------------------------------
SCI Systems, Inc.(a) 150,000 6,178,125
- ---------------------------------------------------------------
Solectron Corp.(a) 51,000 2,259,938
- ---------------------------------------------------------------
Uniphase Corp.(a) 100,000 5,425,000
- ---------------------------------------------------------------
32,047,863
- ---------------------------------------------------------------
ELECTRONICS
(INSTRUMENTATION)-0.16%
Perkin-Elmer Corp. 50,000 3,418,750
- ---------------------------------------------------------------
ThermoQuest Corp.(a) 45,000 804,375
- ---------------------------------------------------------------
4,223,125
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (SEMICONDUCTORS)-1.86%
Altera Corp.(a) 75,000 $ 3,037,500
- ---------------------------------------------------------------
Burr-Brown Corp.(a) 173,100 5,268,731
- ---------------------------------------------------------------
Lattice Semiconductor Corp.(a) 50,000 2,281,250
- ---------------------------------------------------------------
Linear Technology Corp. 82,500 6,641,250
- ---------------------------------------------------------------
Micrel, Inc.(a) 183,800 7,214,150
- ---------------------------------------------------------------
PMC-Sierra, Inc.(a) 100,000 4,550,000
- ---------------------------------------------------------------
Semtech Corp.(a) 100,000 2,387,500
- ---------------------------------------------------------------
Sipex Corp.(a) 300,000 5,962,500
- ---------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 187,500 10,816,406
- ---------------------------------------------------------------
48,159,287
- ---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-0.58%
Credence Systems Corp.(a) 75,000 2,067,188
- ---------------------------------------------------------------
Photronics, Inc.(a) 250,000 9,218,750
- ---------------------------------------------------------------
Teradyne, Inc.(a) 100,000 3,650,000
- ---------------------------------------------------------------
14,935,938
- ---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-0.34%
Amresco, Inc.(a) 100,000 3,625,000
- ---------------------------------------------------------------
SunAmerica, Inc. 105,000 5,243,438
- ---------------------------------------------------------------
8,868,438
- ---------------------------------------------------------------
FOOTWEAR-0.07%
Wolverine World Wide, Inc. 59,925 1,730,334
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC & OTHER)-0.25%
Medicis Pharmaceutical Corp.(a) 150,000 6,412,500
- ---------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-0.72%
Health Management Associates,
Inc.-Class A(a) 335,700 10,574,550
- ---------------------------------------------------------------
Province Healthcare Co.(a) 101,800 2,812,225
- ---------------------------------------------------------------
Universal Health Services,
Inc.-Class B(a) 89,800 5,169,112
- ---------------------------------------------------------------
18,555,887
- ---------------------------------------------------------------
HEALTH CARE (LONG TERM CARE)-0.28%
HEALTHSOUTH Corp.(a) 150,000 4,528,125
- ---------------------------------------------------------------
Sunrise Assisted Living, Inc.(a) 63,200 2,832,150
- ---------------------------------------------------------------
7,360,275
- ---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-0.36%
Concentra Managed Care, Inc.(a) 199,915 6,222,354
- ---------------------------------------------------------------
Express Scripts, Inc.-Class A(a) 40,000 3,200,000
- ---------------------------------------------------------------
9,422,354
- ---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-0.35%
Henry Schein, Inc.(a) 120,000 4,680,000
- ---------------------------------------------------------------
PSS World Medical, Inc.(a) 50,000 1,121,875
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-(CONTINUED)
ResMed, Inc.(a) 40,000 $ 1,582,500
- ---------------------------------------------------------------
Sybron International Corp.(a) 65,600 1,738,400
- ---------------------------------------------------------------
9,122,775
- ---------------------------------------------------------------
HEALTH CARE (SPECIALIZED SERVICES)-1.20%
American HomePatient, Inc.(a) 32,400 597,375
- ---------------------------------------------------------------
NCS HealthCare, Inc.-Class A(a) 110,000 3,231,250
- ---------------------------------------------------------------
Omnicare, Inc. 173,300 5,935,525
- ---------------------------------------------------------------
Orthodontic Centers of America,
Inc.(a) 123,000 2,629,125
- ---------------------------------------------------------------
Quintiles Transnational Corp.(a) 140,000 6,930,000
- ---------------------------------------------------------------
Superior Consultant Holdings
Corp.(a) 160,900 6,204,706
- ---------------------------------------------------------------
Total Renal Care Holdings, Inc.(a) 62,666 2,075,811
- ---------------------------------------------------------------
Transition Systems, Inc.(a) 14,700 330,750
- ---------------------------------------------------------------
Veterinary Centers of America,
Inc.(a) 164,800 3,079,700
- ---------------------------------------------------------------
31,014,242
- ---------------------------------------------------------------
HOUSEHOLD FURNISHINGS & APPLIANCES-0.21%
Ethan Allen Interiors, Inc. 106,700 5,435,031
- ---------------------------------------------------------------
HOUSEWARES-0.76%
Central Garden and Pet Co.(a) 75,000 2,568,750
- ---------------------------------------------------------------
Helen of Troy Ltd.(a) 600,000 12,300,000
- ---------------------------------------------------------------
Windmere-Durable Holdings Inc. 200,000 4,900,000
- ---------------------------------------------------------------
19,768,750
- ---------------------------------------------------------------
INSURANCE (PROPERTY-CASUALTY)-0.06%
CMAC Investment Corp. 24,400 1,575,325
- ---------------------------------------------------------------
LODGING (HOTELS)-0.02%
Prime Hospitality Corp.(a) 30,000 620,625
- ---------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-0.31%
Halter Marine Group, Inc.(a) 231,550 4,196,844
- ---------------------------------------------------------------
US Filter Corp.(a) 120,150 3,919,894
- ---------------------------------------------------------------
8,116,738
- ---------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES-0.30%
Daisytek International Corp.(a) 100,000 2,425,000
- ---------------------------------------------------------------
Herman Miller, Inc. 175,000 5,282,812
- ---------------------------------------------------------------
7,707,812
- ---------------------------------------------------------------
OIL & GAS (DRILLING & EQUIPMENT)-3.48%
Camco International, Inc. 100,000 6,787,500
- ---------------------------------------------------------------
Cliffs Drilling Co.(a) 75,000 3,698,437
- ---------------------------------------------------------------
Cooper Cameron Corp.(a) 100,000 6,643,750
- ---------------------------------------------------------------
EVI, Inc.(a) 150,000 7,987,500
- ---------------------------------------------------------------
Global Industries Ltd.(a) 250,000 5,671,875
- ---------------------------------------------------------------
Input/Output, Inc.(a) 250,000 6,218,750
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
OIL & GAS (DRILLING & EQUIPMENT)-(CONTINUED)
Marine Drilling Companies, Inc.(a) 140,000 $ 3,403,750
- ---------------------------------------------------------------
National-Oilwell, Inc.(a) 300,000 11,381,250
- ---------------------------------------------------------------
Newpark Resources, Inc.(a) 400,000 9,625,000
- ---------------------------------------------------------------
Pride International, Inc.(a) 178,800 4,347,075
- ---------------------------------------------------------------
R&B Falcon Corp.(a) 100,000 3,206,250
- ---------------------------------------------------------------
Tuboscope Vetco International
Corp.(a) 150,000 3,553,125
- ---------------------------------------------------------------
Varco International, Inc.(a) 215,000 6,611,250
- ---------------------------------------------------------------
Veritas DGC, Inc.(a) 200,000 10,837,500
- ---------------------------------------------------------------
89,973,012
- ---------------------------------------------------------------
PERSONAL CARE-0.40%
Rexall Sundown, Inc.(a) 321,000 10,251,938
- ---------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST-0.02%
Patriot American Hospitality, Inc. 19,952 503,788
- ---------------------------------------------------------------
RESTAURANTS-0.53%
Foodmaker, Inc.(a) 200,000 3,800,000
- ---------------------------------------------------------------
Landry's Seafood Restaurants, Inc.(a) 100,000 2,850,000
- ---------------------------------------------------------------
Papa John's International, Inc.(a) 22,500 939,375
- ---------------------------------------------------------------
Showbiz Pizza Time, Inc.(a) 96,600 3,731,175
- ---------------------------------------------------------------
Starbucks Corp.(a) 50,000 2,406,250
- ---------------------------------------------------------------
13,726,800
- ---------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-0.75%
CDW Computer Centers, Inc.(a) 160,800 7,798,800
- ---------------------------------------------------------------
CompUSA, Inc.(a) 172,000 3,192,750
- ---------------------------------------------------------------
Tech Data Corp.(a) 166,600 8,309,175
- ---------------------------------------------------------------
19,300,725
- ---------------------------------------------------------------
RETAIL (SPECIALTY)-1.60%
Genesco Inc.(a) 200,000 3,387,500
- ---------------------------------------------------------------
Hollywood Entertainment Corp.(a) 200,000 2,512,500
- ---------------------------------------------------------------
Inacom Corp.(a) 166,600 5,966,363
- ---------------------------------------------------------------
Michaels Stores, Inc.(a) 100,000 3,025,000
- ---------------------------------------------------------------
O'Reilly Automotive, Inc.(a) 200,000 5,500,000
- ---------------------------------------------------------------
Pier 1 Imports, Inc. 222,500 5,868,438
- ---------------------------------------------------------------
Staples, Inc.(a) 315,600 7,791,375
- ---------------------------------------------------------------
Tiffany & Co 2,700 122,850
- ---------------------------------------------------------------
Williams-Sonoma, Inc.(a) 75,000 4,120,312
- ---------------------------------------------------------------
Zale Corp.(a) 100,000 3,012,500
- ---------------------------------------------------------------
41,306,838
- ---------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-0.90%
Gap, Inc. 87,600 4,505,925
- ---------------------------------------------------------------
Men's Wearhouse, Inc.(a) 87,400 3,681,725
- ---------------------------------------------------------------
Pacific Sunwear of California(a) 200,000 8,825,000
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (SPECIALTY-APPAREL)-(CONTINUED)
TJX Companies, Inc. 140,500 $ 6,217,125
- ---------------------------------------------------------------
23,229,775
- ---------------------------------------------------------------
SAVINGS & LOAN COMPANIES-0.12%
Dime Bancorp, Inc. 100,000 3,068,750
- ---------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-0.97%
ABR Information Services, Inc.(a) 75,000 2,170,312
- ---------------------------------------------------------------
Caribiner International, Inc.(a) 49,700 994,000
- ---------------------------------------------------------------
Cerner Corp.(a) 200,000 5,962,500
- ---------------------------------------------------------------
Children's Comprehensive
Services, Inc.(a) 186,200 3,491,250
- ---------------------------------------------------------------
Equity Corp. International(a) 255,000 6,327,188
- ---------------------------------------------------------------
MSC Industrial Direct Co.,
Inc.-Class A(a) 40,000 2,035,000
- ---------------------------------------------------------------
Strayer Education, Inc. 112,500 4,134,375
- ---------------------------------------------------------------
25,114,625
- ---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.66%
Analysts International Corp. 121,500 3,523,500
- ---------------------------------------------------------------
Computer Task Group, Inc. 100,000 3,887,500
- ---------------------------------------------------------------
Insight Enterprises, Inc.(a) 150,000 5,981,250
- ---------------------------------------------------------------
SunGard Data Systems Inc.(a) 100,000 3,562,500
- ---------------------------------------------------------------
16,954,750
- ---------------------------------------------------------------
SERVICES (DATA PROCESSING)-0.85%
Affiliated Computer Services,
Inc.(a) 128,400 4,510,050
- ---------------------------------------------------------------
Billing Information Concepts Corp.(a) 159,200 4,457,600
- ---------------------------------------------------------------
CSG Systems International, Inc.(a) 85,000 3,867,500
- ---------------------------------------------------------------
Envoy Corp.(a) 100,000 4,212,500
- ---------------------------------------------------------------
National Data Corp. 75,000 3,060,938
- ---------------------------------------------------------------
PMT Services, Inc.(a) 100,000 1,950,000
- ---------------------------------------------------------------
22,058,588
- ---------------------------------------------------------------
SERVICES (EMPLOYMENT)-0.41%
Robert Half International, Inc.(a) 111,000 6,007,875
- ---------------------------------------------------------------
Romac International, Inc.(a) 100,000 2,650,000
- ---------------------------------------------------------------
Vincam Group, Inc. (The)(a) 74,250 2,014,031
- ---------------------------------------------------------------
10,671,906
- ---------------------------------------------------------------
TEXTILES (APPAREL)-0.83%
Jones Apparel Group, Inc.(a) 100,000 5,981,250
- ---------------------------------------------------------------
Liz Claiborne, Inc. 50,000 2,459,375
- ---------------------------------------------------------------
Nautica Enterprises, Inc.(a) 100,000 2,487,500
- ---------------------------------------------------------------
Quicksilver, Inc.(a) 96,800 1,821,050
- ---------------------------------------------------------------
St. John Knits, Inc. 75,000 3,346,875
- ---------------------------------------------------------------
Tommy Hilfiger Corp.(a) 87,900 5,361,900
- ---------------------------------------------------------------
21,457,950
- ---------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TEXTILES (HOME FURNISHINGS)-0.26%
Mohawk Industries, Inc.(a) 112,500 $ 3,473,437
- ---------------------------------------------------------------
WestPoint Stevens, Inc.(a) 100,000 3,350,000
- ---------------------------------------------------------------
6,823,437
- ---------------------------------------------------------------
TRUCKERS-0.07%
Swift Transportation Co., Inc.(a) 75,000 1,715,625
- ---------------------------------------------------------------
TRUCKS & PARTS-0.40%
Wabash National Corp. 338,700 10,457,363
- ---------------------------------------------------------------
WASTE MANAGEMENT-0.03%
Thermo Instrument Systems Inc.(a) 25,000 737,500
- ---------------------------------------------------------------
Total Domestic Common Stocks
(Cost $436,154,056) 725,696,631
- ---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-64.44%
ARGENTINA-2.24%
Banco de Galicia y Buenos Aires S.A.
de C.V.-ADR (Banks-Regional) 392,985 9,628,133
- ---------------------------------------------------------------
Banco Rio de La Plata S.A.-ADR
(Banks-Major Regional)(a) 710,900 9,774,875
- ---------------------------------------------------------------
Perez Companc S.A.-Class B (Oil &
Gas-Refining & Marketing) 1,439,469 8,652,463
- ---------------------------------------------------------------
Telefonica de Argentina S.A.-ADR
(Telephone) 339,800 13,103,538
- ---------------------------------------------------------------
YPF S.A.-ADR (Oil-International
Integrated) 479,600 16,726,050
- ---------------------------------------------------------------
57,885,059
- ---------------------------------------------------------------
AUSTRALIA-0.17%
Telstra Corp. Ltd. (Telephone) 1,863,520 4,375,731
- ---------------------------------------------------------------
BELGIUM-0.93%
Barco N.V.
(Manufacturing-Diversified) 41,000 10,860,046
- ---------------------------------------------------------------
Colruyt N.V. (Retail-Food Chains) 8,800 5,351,641
- ---------------------------------------------------------------
UCB S.A.
(Manufacturing-Diversified) 1,650 7,889,210
- ---------------------------------------------------------------
24,100,897
- ---------------------------------------------------------------
BRAZIL-4.79%
Cia. Riograndense de
Telecomunicacoes-Pfd. (Telephone)
(Acquired 08/06/97; Cost $181,844)(b) 1,425 188,111
- ---------------------------------------------------------------
Cia. Riograndense de
Telecomunicacoes-Pfd. (Telephone) 65,000 8,582,171
- ---------------------------------------------------------------
Companhia Brasileira de Distribuicao
Grupo Pao de
Acucar (Retail-Food Chains) 120,519 3,208,818
- ---------------------------------------------------------------
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar-Pfd. (Retail-Food Chains) 326,500 8,793,075
- ---------------------------------------------------------------
Companhia de Saneamento Basico do
Estado de Sao Paulo (Water
Utilities) 39,041 8,875,698
- ---------------------------------------------------------------
Companhia Energetica de Minas
Gerais (Electric Companies) 315,700 15,320,553
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
BRAZIL-(CONTINUED)
Companhia Paranaense de
Energia-Copel (Electric
Companies) 1,027,000 $ 14,634,750
- ---------------------------------------------------------------
Companhia Paranaense de
Energia-Copel-ADR (Electric
Companies) 240,000 3,357,671
- ---------------------------------------------------------------
Electropaulo
Metropolitana-Eletricidade de
Sao Paulo S.A. (Electric Companies) 13,600 1,601,819
- ---------------------------------------------------------------
Empresa Bandeirante de Energia
S.A.- EBE (Electric Companies)(a) 13,600 463,778
- ---------------------------------------------------------------
Petroleo Brasileiro
S.A.-Petrobras-Pfd. (Oil &
Gas-Exploration & Production) 46,200 11,715,123
- ---------------------------------------------------------------
Telecomunicacoes Brasileiras S.A.
(Telecommunications-
Cellular/Wireless) 155,500 15,432,388
- ---------------------------------------------------------------
Telecomunicacoes de Sao Paulo
S.A.-TELESP-Pfd. (Telephone) 50,200 17,074,979
- ---------------------------------------------------------------
Telecomunicacoes do Rio de
Janeiro S.A. (Telecommunications-
Cellular/Wireless) 92,398 14,542,596
- ---------------------------------------------------------------
123,791,530
- ---------------------------------------------------------------
CANADA-5.00%
ATI Technologies, Inc.
(Computers-Hardware)(a) 1,127,200 12,613,351
- ---------------------------------------------------------------
ATS Automation Tooling Systems, Inc.
(Manufacturing-Diversified)(a) 360,000 5,765,640
- ---------------------------------------------------------------
Biovail Corp. International
(Health Care-Drugs-Generic &
Other)(a) 65,700 2,685,488
- ---------------------------------------------------------------
Canadian Fracmaster Ltd. (Oil &
Gas-Exploration & Production) 131,600 1,707,298
- ---------------------------------------------------------------
CanWest Global Communications
Corp. (Broadcasting-Television,
Radio & Cable) 355,998 6,672,551
- ---------------------------------------------------------------
CGI Group, Inc.
(Services-Computer Systems)(a) 320,900 8,842,508
- ---------------------------------------------------------------
CHUM Ltd.
(Broadcasting-Television, Radio
& Cable) 52,800 2,030,982
- ---------------------------------------------------------------
C-MAC Industries Inc.
(Electronics-Component
Distributors)(a) 200,000 3,636,745
- ---------------------------------------------------------------
Discreet Logic, Inc.
(Communications Equipment)(a) 175,000 3,128,125
- ---------------------------------------------------------------
Enerflex Systems Ltd.
(Manufacturing-Specialized) 96,000 2,887,016
- ---------------------------------------------------------------
Ensign Resource Service Group, Inc.
(Oil & Gas-Drilling & Equipment) 200,000 4,350,106
- ---------------------------------------------------------------
Geac Computer Corp. Ltd.
(Services-Computer Systems)(a) 273,000 10,758,856
- ---------------------------------------------------------------
Gulf Canada Resources Ltd.
(Oil-International Integrated)(a) 250,000 1,328,125
- ---------------------------------------------------------------
Imax Corp. (Communications
Equipment)(a) 150,000 4,087,500
- ---------------------------------------------------------------
IPSCO, Inc. (Iron & Steel) 90,000 2,728,608
- ---------------------------------------------------------------
JDS Fitel Inc.
(Manufacturing-Specialized)(a) 600,000 11,203,972
- ---------------------------------------------------------------
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Linamar Corp.
(Machinery-Diversified) 105,000 $ 6,902,822
- ---------------------------------------------------------------
Mitel Corp. (Communications
Equipment)(a) 670,000 9,512,187
- ---------------------------------------------------------------
Newcourt Credit Group, Inc.
(Savings & Loan Companies) 120,000 5,891,527
- ---------------------------------------------------------------
Precision Drilling Corp. (Oil &
Gas-Drilling & Equipment)(a) 250,000 5,968,750
- ---------------------------------------------------------------
Royal Group Technologies Ltd.
(Manufacturing-Specialized)(a) 105,000 3,242,123
- ---------------------------------------------------------------
Sears Canada, Inc.
(Retail-Department Stores) 300,000 5,612,477
- ---------------------------------------------------------------
Shaw Industries Ltd.(Oil &
Gas-Exploration & Production) 14,200 531,314
- ---------------------------------------------------------------
Suncor Energy, Inc.
(Oil-International Integrated) 210,000 7,240,620
- ---------------------------------------------------------------
129,328,691
- ---------------------------------------------------------------
CHILE-1.03%
Cia. de Telecomunicaciones de
Chile S.A.-ADR (Telephone) 287,300 7,200,456
- ---------------------------------------------------------------
Distribucion y Servicio D&S
S.A.-ADR (Retail-Food Chains)(a) 650,000 11,456,250
- ---------------------------------------------------------------
Madeco S.A. (Metal Fabricators) 129,000 2,064,000
- ---------------------------------------------------------------
Quinenco S.A.-ADR
(Financial-Diversified)(a) 580,900 5,990,531
- ---------------------------------------------------------------
26,711,237
- ---------------------------------------------------------------
FINLAND-1.01%
Hartwall OY A.B.
(Beverages-Alcoholic) 400,000 12,425,214
- ---------------------------------------------------------------
TT Tieto OY-Class B
(Computers-Software & Services) 74,000 13,601,566
- ---------------------------------------------------------------
26,026,780
- ---------------------------------------------------------------
FRANCE-3.08%
Altran Technologies, S.A.
(Services-Commercial & Consumer) 53,800 8,583,297
- ---------------------------------------------------------------
Christian Dalloz
(Manufacturing-Diversified) 11,400 1,327,566
- ---------------------------------------------------------------
Coflexip S.A.-ADR
(Manufacturing-Specialized) 15,900 1,132,875
- ---------------------------------------------------------------
Coflexip S.A.
(Manufacturing-Specialized) 90,000 12,771,585
- ---------------------------------------------------------------
Compagnie Generale de Geophysique
S.A. (Services-Commercial &
Consumer)(a) 64,400 9,363,766
- ---------------------------------------------------------------
Dassault Systemes S.A.-ADR
(Computers-Software & Services) 200,000 7,725,000
- ---------------------------------------------------------------
Equipements et Composants pour
l'Industrie Automobile (Auto
Parts & Equipment) 13,500 4,249,210
- ---------------------------------------------------------------
Galeries Lafayette
(Retail-Department Stores) 7,000 6,148,727
- ---------------------------------------------------------------
Infogrames Entertainment S.A.
(Computers-Software & Services)(a) 82,000 4,104,774
- ---------------------------------------------------------------
ISIS (Oil-International Integrated)(a) 19,400 2,333,422
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FRANCE-(CONTINUED)
Labinal S.A. (Aerospace/Defense) 8,300 $ 3,035,003
- ---------------------------------------------------------------
LDC S.A. (Foods) 7,500 1,540,925
- ---------------------------------------------------------------
Le Carbone-Lorraine (Housewares) 9,100 3,731,742
- ---------------------------------------------------------------
Moulinex (Household Furnishings &
Appliances)(a) 250,000 7,432,208
- ---------------------------------------------------------------
Vallourec S.A.
(Manufacturing-Diversified) 73,000 6,169,356
- ---------------------------------------------------------------
79,649,456
- ---------------------------------------------------------------
GERMANY-3.18%
Boewe Systec A.G. (Office
Equipment & Supplies) 75,000 3,511,510
- ---------------------------------------------------------------
Continental A.G. (Auto Parts &
Equipment) 185,000 5,258,904
- ---------------------------------------------------------------
Fresenius A.G.-Pfd. (Health
Care-Medical Products & Supplies) 26,000 6,238,783
- ---------------------------------------------------------------
GEA A.G. (Machinery-Diversified) 15,600 6,312,692
- ---------------------------------------------------------------
Hugo Boss A.G.-Pfd.
(Textiles-Apparel) 1,750 3,218,884
- ---------------------------------------------------------------
Krones A.G.
(Machinery-Diversified) 10,500 3,628,560
- ---------------------------------------------------------------
KSB A.G. (Machinery-Diversified) 16,000 5,350,872
- ---------------------------------------------------------------
MobilCom A.G.
(Telecommunications-
Cellular/Wireless) 7,000 5,189,231
- ---------------------------------------------------------------
Pfeiffer Vacuum Technology
A.G.-ADR (Machinery-Diversified)(a) 60,000 4,252,500
- ---------------------------------------------------------------
Porsche A.G. (Automobiles) 7,500 18,769,857
- ---------------------------------------------------------------
SCHMALBACH LUBECA A.G.
Containers-Metal & Glass) 20,000 4,925,032
- ---------------------------------------------------------------
Schwarz Pharma A.G. (Health
Care-Drugs-Generic & Other) 85,000 6,860,264
- ---------------------------------------------------------------
Sixt A.G. (Financial-Diversified) 21,000 2,668,748
- ---------------------------------------------------------------
SKW Trostberg A.G.
(Chemicals-Diversified) 77,600 2,679,516
- ---------------------------------------------------------------
Vossloh A.G.
(Manufacturing-Specialized) 50,200 3,273,730
- ---------------------------------------------------------------
82,139,083
- ---------------------------------------------------------------
GREECE-0.20%
Titan Cement Co. S.A.
(Construction-Cement & Aggregates) 60,000 5,132,935
- ---------------------------------------------------------------
HONG KONG-2.66%
China Resources Enterprise Ltd.
(Manufacturing-Diversified) 5,414,000 9,295,920
- ---------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 9,100,000 6,167,699
- ---------------------------------------------------------------
Hong Kong & China Gas Co. Ltd.
(Natural Gas) 7,396,224 10,073,607
- ---------------------------------------------------------------
Hutchison Whampoa Ltd.
(Retail-Food Chains) 2,255,000 13,944,552
- ---------------------------------------------------------------
Johnson Electric Holdings Ltd.
(Electrical Equipment) 4,968,000 16,835,785
- ---------------------------------------------------------------
New World Infrastructure Ltd.
(Services-Commercial &
Consumer)(a) 1,540,000 3,310,225
- ---------------------------------------------------------------
</TABLE>
10
<PAGE> 13
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HONG KONG-(CONTINUED)
Ng Fung Hong Ltd. (Foods) 5,220,000 $ 4,717,273
- ---------------------------------------------------------------
Shanghai Industrial Holdings Ltd.
(Manufacturing-Diversified) 1,282,000 4,394,152
- ---------------------------------------------------------------
68,739,213
- ---------------------------------------------------------------
HUNGARY-0.91%
Gedeon Richter (Health Care-Drugs-
Major Pharmaceuticals) (Acquired
05/03/96; Cost $1,937,500)(a)(b) 50,000 5,325,000
- ---------------------------------------------------------------
Magyar Tavkozlesi-ADR
(Telecommunications-Long
Distance)(a) 618,000 18,231,000
- ---------------------------------------------------------------
23,556,000
- ---------------------------------------------------------------
INDONESIA-0.25%
Gulf Indonesia Resources Ltd.
(Oil-International Integrated)(a) 415,000 6,380,625
- ---------------------------------------------------------------
IRELAND-0.75%
CBT Group PLC-ADR
(Computers-Software & Services)(a) 15,200 773,300
- ---------------------------------------------------------------
Elan Corp. PLC-ADR (Health
Care-Drugs-Generic & Other)(a) 100,000 6,212,500
- ---------------------------------------------------------------
Saville Systems Ireland PLC-ADR
(Services-Data Processing)(a) 250,000 12,468,750
- ---------------------------------------------------------------
19,454,550
- ---------------------------------------------------------------
ISRAEL-0.72%
Blue Square-Israel Ltd.-ADR
(Retail-Food Chains) 550,000 8,800,000
- ---------------------------------------------------------------
ESC Medical Systems Ltd. (Health
Care-Medical Products &
Supplies)(a) 300,000 9,750,000
- ---------------------------------------------------------------
18,550,000
- ---------------------------------------------------------------
ITALY-1.12%
Autogrill S.p.A. (Restaurants)(a) 1,205,000 8,337,415
- ---------------------------------------------------------------
Ericsson S.p.A. (Communications
Equipment) 100,000 6,363,564
- ---------------------------------------------------------------
Gewiss S.p.A. (Electrical
Equipment) 225,000 5,473,368
- ---------------------------------------------------------------
Gruppo Editoriale L'Espresso
(Publishing) 600,000 4,889,491
- ---------------------------------------------------------------
Merloni Elettrodomestici S.p.A.
(Household Furnishings &
Appliances) 500,000 4,029,413
- ---------------------------------------------------------------
29,093,251
- ---------------------------------------------------------------
JAPAN-1.92%
Aderans Co. Ltd. (Personal Care) 394,000 9,315,054
- ---------------------------------------------------------------
Bellsystem 24, Inc.
(Services-Commercial & Consumer) 48,000 6,656,696
- ---------------------------------------------------------------
Capcom Co., Ltd.
(Computers-Software & Services) 201,000 2,617,448
- ---------------------------------------------------------------
Circle K Japan Co. Ltd.
(Retail-Food Chains) 244,200 10,052,799
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-(CONTINUED)
Hokuto Corp. (Agricultural
Products) 185,250 $ 5,037,390
- ---------------------------------------------------------------
Noritsu Koki Co. Ltd.
(Photography/Imaging) 315,600 9,416,270
- ---------------------------------------------------------------
Shohkoh Fund & Co.
(Financial-Diversified) 20,600 6,550,797
- ---------------------------------------------------------------
49,646,454
- ---------------------------------------------------------------
MEXICO-5.64%
Cifra S.A. de C.V.-Series C
(Retail-General Merchandise) 6,454,900 10,980,592
- ---------------------------------------------------------------
Cifra S.A. de C.V.-Series V
(Retail-General Merchandise) 751,676 1,312,345
- ---------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages-Non-Alcoholic) 701,900 11,932,300
- ---------------------------------------------------------------
Corporacion Interamericana de
Entretenimiento S.A.
(Entertainment)(a) 1,652,860 6,425,679
- ---------------------------------------------------------------
Fomento Economico Mexicano, S.A.
de C.V.-Class B
(Beverages-Alcoholic) 1,271,400 9,406,128
- ---------------------------------------------------------------
Grupo Financiero Banamex Accival,
S.A. de C.V.
(Financial-Diversified)(a) 5,850,000 18,228,486
- ---------------------------------------------------------------
Grupo Industrial Maseca S.A. de
C.V.-Class B (Foods) 4,930,200 3,554,553
- ---------------------------------------------------------------
Grupo Modelo S.A. de C.V.-Series
C (Beverages-Alcoholic) 1,056,000 9,977,169
- ---------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 424,700 17,412,700
- ---------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.-Class A (Paper & Forest
Products) 2,460,500 12,072,784
- ---------------------------------------------------------------
Organizacion Soriana S.A. de C.V.
(Retail-Department Stores) 3,846,000 14,543,983
- ---------------------------------------------------------------
Panamerican Beverages, Inc.-Class
A (Beverages-Non-Alcoholic) 320,700 12,787,913
- ---------------------------------------------------------------
Tubos de Acero de Mexico S.A.
(Oil & Gas-Drilling &
Equipment)(a) 541,800 9,955,575
- ---------------------------------------------------------------
TV Azteca, S.A. de C.V.-ADR
(Broadcasting-Television, Radio
& Cable) 156,100 2,907,363
- ---------------------------------------------------------------
Vitro SA (Containers-Metal & Glass) 391,400 4,378,788
- ---------------------------------------------------------------
145,876,358
- ---------------------------------------------------------------
NETHERLANDS-5.31%
Aalberts Industries N.V.
(Manufacturing-Diversified) 115,000 3,324,588
- ---------------------------------------------------------------
Beter Bed Holding N.V. (Household
Furnishings & Appliances) 115,000 3,859,710
- ---------------------------------------------------------------
Cap Gemini N.V.
(Services-Computer Systems) 290,000 19,093,114
- ---------------------------------------------------------------
CMG PLC (Computers-Software &
Services) 517,200 23,144,834
- ---------------------------------------------------------------
Draka Holding N.V. (Metal
Fabricators) 60,000 2,598,881
- ---------------------------------------------------------------
Fugro N.V. (Services-Commercial &
Consumer) 180,000 7,128,360
- ---------------------------------------------------------------
Gamma Holding N.V.
(Textiles-Apparel) 53,000 3,240,186
- ---------------------------------------------------------------
</TABLE>
11
<PAGE> 14
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NETHERLANDS-(CONTINUED)
Getronics N.V.
(Computers-Software & Services) 300,000 $ 13,276,570
- ---------------------------------------------------------------
IHC Caland N.V.
(Manufacturing-Specialized) 114,000 6,636,503
- ---------------------------------------------------------------
Internatio-Muller N.V.
(Manufacturing-Diversified) 288,000 9,979,704
- ---------------------------------------------------------------
Koninklijke Ahrend Groep N.V.
(Household Furnishings &
Appliances) 210,000 7,276,867
- ---------------------------------------------------------------
Koninklijke Van Ommeren N.V.
(Shipping) 122,000 5,254,195
- ---------------------------------------------------------------
Nutreco Holding N.V.
(Agricultural Products) 235,000 8,387,456
- ---------------------------------------------------------------
Ordina Beheer N.V.
(Services-Commercial & Consumer)(a) 560,000 13,139,944
- ---------------------------------------------------------------
Randstad Holdings N.V.
(Services-Commercial & Consumer) 152,000 7,464,185
- ---------------------------------------------------------------
Toolex International N.V.
(Machinery-Diversified)(a) 185,000 3,635,711
- ---------------------------------------------------------------
137,440,808
- ---------------------------------------------------------------
NORWAY-1.91%
ASK A.S.A.
(Computers-Peripherals)(a) 605,000 6,166,391
- ---------------------------------------------------------------
Ekornes A.S.A. (Household
Furnishings & Appliances) 300,000 3,017,481
- ---------------------------------------------------------------
Farstad Shipping A.S.A.
(Shipping) 406,000 2,069,053
- ---------------------------------------------------------------
Merkantildata A.S.A.
(Services-Commercial & Consumer) 750,000 9,454,775
- ---------------------------------------------------------------
Seateam Technology A.S.A. (Oil &
Gas-Exploration & Production)(a) 150,000 3,620,978
- ---------------------------------------------------------------
Tandberg A.S.A. (Communications
Equipment)(a) 161,500 3,681,998
- ---------------------------------------------------------------
Tandberg Television A.S.A.
(Communications Equipment)(a) 440,000 5,812,339
- ---------------------------------------------------------------
Tomra Systems A.S.A.
(Manufacturing-Specialized) 486,000 15,642,623
- ---------------------------------------------------------------
49,465,638
- ---------------------------------------------------------------
PERU-0.50%
Telefonica del Peru S.A.-ADR
(Telecommunications-Long
Distance) 486,500 10,763,812
- ---------------------------------------------------------------
Telefonica del Peru S.A.-Class B
(Telecommunications-Long
Distance) 1,026,000 2,258,616
- ---------------------------------------------------------------
13,022,428
- ---------------------------------------------------------------
PHILIPPINES-0.65%
International Container Terminal
Services, Inc. (Air Freight)(a) 12,225,000 1,613,761
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Co. (Telephone) 194,920 5,218,904
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Co.-ADR (Telephone) 159,400 4,303,800
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
PHILIPPINES-(CONTINUED)
SM Prime Holdings Inc. (Land
Development) 32,000,000 $ 5,738,481
- ---------------------------------------------------------------
16,874,946
- ---------------------------------------------------------------
PORTUGAL-3.11%
Banco Comercial Portugues, S.A.
(Banks-Major Regional) 450,000 15,778,871
- ---------------------------------------------------------------
Cimpor-Cimentos de Portugal S.A.
(Construction-Cement & Aggregates) 467,000 17,273,820
- ---------------------------------------------------------------
Electricidade de Portugal,
S.A.-ADR (Electric Companies)(a) 158,500 8,242,000
- ---------------------------------------------------------------
Jeronimo Martins & Filho, S.A.
(Retail-General Merchandise) 134,000 6,265,768
- ---------------------------------------------------------------
Portugal Telecom S.A. (Telephone) 265,000 14,242,741
- ---------------------------------------------------------------
Telecel-Comunicacaoes Pessoais,
S.A. (Telecommunications-
Cellular/Wireless)(a) 95,400 17,117,225
- ---------------------------------------------------------------
Telecel-Comunicacaoes Pessoais,
S.A.-ADR (Telecommunications-
Cellular/Wireless)(a) 7,800 1,407,900
- ---------------------------------------------------------------
80,328,325
- ---------------------------------------------------------------
RUSSIA-0.25%
Vimpel-Communications
(Telecommunications-
Cellular/Wirless)(a) 120,000 6,480,000
- ---------------------------------------------------------------
SINGAPORE-0.26%
Creative Technology Ltd.
(Computers-Peripherals)(a) 100,000 2,050,000
- ---------------------------------------------------------------
Overseas Union Bank Ltd.
(Banks-Major Regional) 1,236,000 4,684,776
- ---------------------------------------------------------------
6,734,776
- ---------------------------------------------------------------
SOUTH AFRICA-0.90%
Dimension Data Holdings Ltd.
(Computers-Software & Services)(a) 1,509,000 10,479,996
- ---------------------------------------------------------------
Persetel Holdings Ltd.
(Computers-Software & Services) 760,000 8,270,677
- ---------------------------------------------------------------
Protea Furnishers Ltd. (Household
Furnishings & Appliances) 4,700,000 4,649,782
- ---------------------------------------------------------------
23,400,455
- ---------------------------------------------------------------
SPAIN-2.06%
Corp. Financiera Reunida, S.A.
(Investment Management)(a) 1,475,000 16,657,912
- ---------------------------------------------------------------
Mapfre Vida (Insurance-Life &
Health) 108,000 5,389,363
- ---------------------------------------------------------------
Tele Pizza, S.A. (Restaurants)(a) 100,000 14,379,514
- ---------------------------------------------------------------
Viscofan Industria Navarra De
Envolturas Celulosicas S.A.
(Paper & Forest Products) 413,000 16,812,869
- ---------------------------------------------------------------
53,239,658
- ---------------------------------------------------------------
</TABLE>
12
<PAGE> 15
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWEDEN-2.16%
Assa Abloy A.B.-Class B (Metal
Fabricators) 230,000 $ 8,021,183
- ---------------------------------------------------------------
B.T. Industries A.B.
(Machinery-Diversified) 47,000 940,971
- ---------------------------------------------------------------
Enator A.B. (Computer-Software &
Service) 55,200 1,582,847
- ---------------------------------------------------------------
Europolitan Holdings A.B.
(Telecommunications-Cellular &
Wireless) 94,400 5,852,751
- ---------------------------------------------------------------
Hoganas A.B. (Metals Mining) 200,000 8,008,267
- ---------------------------------------------------------------
Munters A.B. (Services-Facilities
& Environmental)(a) 185,000 2,090,868
- ---------------------------------------------------------------
OM Grupppen A.B. (Investment
Banking/ Brokerage) 460,000 9,179,799
- ---------------------------------------------------------------
Scandic Hotels A.B. (Lodging-Hotels) 104,500 3,981,852
- ---------------------------------------------------------------
WM-Data A.B. (Computers-Software
& Services) 535,000 16,101,137
- ---------------------------------------------------------------
55,759,675
- ---------------------------------------------------------------
SWITZERLAND-2.22%
Disetronic Holding A.G. (Health
Care-Medical Products & Supplies) 2,200 6,201,106
- ---------------------------------------------------------------
Georg Fischer A.G. (Auto Parts &
Equipment) 9,000 3,478,377
- ---------------------------------------------------------------
Kuoni Reisen A.G.
(Services-Commercial & Consumer) 1,600 8,582,661
- ---------------------------------------------------------------
Mikron Holding A.G.
(Machinery-Diversified)(a) 17,000 4,248,018
- ---------------------------------------------------------------
Rieter Holdings Ltd.
(Machinery-Diversified) 24,500 14,709,469
- ---------------------------------------------------------------
Schindler Holding A.G.
(Machinery-Diversified) 8,400 13,573,666
- ---------------------------------------------------------------
Sika Finanz A.G. (Engineering &
Construction) 16,500 6,596,921
- ---------------------------------------------------------------
57,390,218
- ---------------------------------------------------------------
TAIWAN-0.32%
Taiwan Semiconductor Manufacturing Co.-
ADR (Electronics-Semiconductors)(a) 333,000 8,179,313
- ---------------------------------------------------------------
UNITED KINGDOM-9.19%
Airtours PLC (Services-Commercial
& Consumer) 2,445,000 21,417,512
- ---------------------------------------------------------------
Avis Europe PLC
(Services-Commercial & Consumer) 1,484,550 5,735,522
- ---------------------------------------------------------------
Cable & Wireless Communications
PLC (Broadcasting-Television,
Radio & Cable)(a) 2,000,000 14,534,025
- ---------------------------------------------------------------
Capita Group PLC
(Services-Commercial & Consumer) 1,115,000 9,417,429
- ---------------------------------------------------------------
Cattles PLC (Consumer Finance) 510,000 5,450,510
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Cobham PLC (Aerospace/Defense) 400,000 $ 7,241,925
- ---------------------------------------------------------------
Compass Group PLC
(Services-Commercial & Consumer) 335,000 5,798,976
- ---------------------------------------------------------------
FirstBus PLC (Shipping) 1,350,000 8,785,324
- ---------------------------------------------------------------
Games Workshop Group PLC (Leisure
Time-Products) 165,000 2,221,498
- ---------------------------------------------------------------
Goode Durrant PLC
(Manufacturing-Diversified) 214,000 2,122,436
- ---------------------------------------------------------------
Independent Insurance Group PLC
(Insurance-Property-Casualty) 260,700 7,009,034
- ---------------------------------------------------------------
Jarvis Hotels PLC (Lodging-Hotels) 150,000 398,891
- ---------------------------------------------------------------
Jarvis PLC (Engineering &
Construction) 900,000 9,987,334
- ---------------------------------------------------------------
J.D. Wetherspoon PLC (Leisure
Time-Products) 525,000 2,840,532
- ---------------------------------------------------------------
JJB Sports PLC (Retail-General
Merchandise) 192,050 1,622,078
- ---------------------------------------------------------------
Kwik-Fit Holdings PLC
(Services-Commercial &
Consumer) 1,400,500 12,180,149
- ---------------------------------------------------------------
Mayflower Corp. PLC (The) (Auto
Parts & Equipment) 890,000 3,602,231
- ---------------------------------------------------------------
Micro Focus Group PLC-ADR
(Computer-Software & Services)(a) 80,000 3,640,000
- ---------------------------------------------------------------
Millennium & Copthorne Hotels PLC
(Lodging-Hotels) 350,000 3,406,883
- ---------------------------------------------------------------
Misys PLC (Services-Commercial &
Consumer) 500,000 24,042,188
- ---------------------------------------------------------------
Northern Leisure PLC (Leisure
Time-Products) 300,000 2,734,538
- ---------------------------------------------------------------
Parity PLC (Services-Commercial &
Consumer) 350,000 4,542,510
- ---------------------------------------------------------------
PizzaExpress PLC (Restaurants) 387,000 5,056,699
- ---------------------------------------------------------------
Provident Financial PLC (Consumer
Finance) 964,912 16,122,020
- ---------------------------------------------------------------
Sage Group PLC (The)
(Computers-Software & Services) 300,000 6,296,963
- ---------------------------------------------------------------
Select Appointments Holdings PLC
(Services-Commercial & Consumer) 300,000 4,179,578
- ---------------------------------------------------------------
SEMA Group PLC
(Services-Commercial & Consumer) 500,000 18,205,163
- ---------------------------------------------------------------
Senior Engineering Group PLC
(Metal Fabricators) 1,100,000 4,065,848
- ---------------------------------------------------------------
Serco Group PLC
(Services-Commercial & Consumer) 185,000 3,660,350
- ---------------------------------------------------------------
Stagecoach Holdings PLC
(Shipping) 790,000 15,894,938
- ---------------------------------------------------------------
TBI PLC (Land Development) 1,590,000 2,672,571
- ---------------------------------------------------------------
</TABLE>
13
<PAGE> 16
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Weir Group PLC (The)
(Machinery-Diversified) 600,000 $ 2,759,625
- ---------------------------------------------------------------
237,645,280
- ---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests
(Cost $1,166,875,568) 1,666,399,370
- ---------------------------------------------------------------
DOMESTIC PREFERRED STOCK-0.32%
LODGING (HOTELS)-0.32%
Royal Caribbean Cruises Ltd.-
$3.63 Conv. Pfd. (Cost $5,011,060) 76,000 8,350,500
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
DOMESTIC CONVERTIBLE CORPORATE NOTES-0.07%
BROADCASTING (TELEVISION, RADIO & CABLE)-0.07%
Jacor Communications Inc., Conv.
Sr. LYON, 5.50%, 06/12/11
(Cost $1,151,023)(c) $ 2,350,000 $ 1,825,786
- ---------------------------------------------------------------
FOREIGN CONVERTIBLE CORPORATE BONDS-0.41%
HONG KONG-0.21%
New World Infrastructure Ltd.
(Services-Commercial & Consumer),
Conv. Bonds, 5.00%, 07/15/01
(Acquired 04/10/97-04/11/97;
Cost $2,172,563)(b) 1,850,000 1,859,250
- ---------------------------------------------------------------
New World Infrastructure Ltd.
(Services-Commercial & Consumer),
Conv. Bonds, 5.00%, 07/15/01 3,670,000 3,688,350
- ---------------------------------------------------------------
5,547,600
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
UNITED KINGDOM-0.20%
Shanghai Industrial Investment
Trust Co.
(Manufacturing-Diversified),
Gtd. Bonds, 1.00%, 02/24/03
(Acquired 03/05/98 - 03/09/98;
Cost $5,218,750)(b) $ 5,000,000 $ 5,150,000
- ---------------------------------------------------------------
Total Foreign Convertible
Corporate Bonds
(Cost $11,511,862) 10,697,600
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS(d)-5.07%
Dean Witter Reynolds, Inc.,
5.55%, 05/01/98(e) 75,103 75,103
- ---------------------------------------------------------------
Lehman Brothers Inc., 5.30%,
05/01/98(f) 131,000,000 131,000,000
- ---------------------------------------------------------------
Total Repurchase
Agreements (Cost
$131,075,103) 131,075,103
- ---------------------------------------------------------------
TOTAL INVESTMENTS-98.36% 2,544,044,990
- ---------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-1.64% 42,442,288
- ---------------------------------------------------------------
NET ASSETS-100.00% $2,586,487,278
===============================================================
</TABLE>
INVESTMENT ABBREVIATIONS:
ADR-American Depositary Receipt
Conv.-Convertible
GDR-Global Depositary Receipt
Gtd.-Guaranteed
LYON-Liquid Yield Option Notes
Pfd.-Preferred
Sr.-Senior
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 04/30/98 was $12,522,361,
which represented 0.48% of the Fund's net assets.
(c) Zero coupon bond. The interest rate shown represents the rate of the
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 04/30/98 with a maturing value of
$300,046,250. Collateralized by $307,111,000 U.S. Government obligations, 0%
to 9.40% due 06/10/98 to 09/26/19 with an aggregate market value at 04/30/98
of $306,000,308.
(f) Joint repurchase agreement entered into 04/30/98 with a maturing value of
$450,066,250. Collateralized by $522,302,000 U.S. Government obligations, 0%
to 7.45% due 08/14/98 to 10/08/27 with an aggregate market value at 04/30/98
of $459,005,491.
See Notes to Financial Statements.
14
<PAGE> 17
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$1,751,778,672) $2,544,044,990
- ------------------------------------------------------------
Foreign currencies, at value (cost
$25,662,470) 25,716,991
- ------------------------------------------------------------
Receivables for:
Investments sold 37,050,813
- ------------------------------------------------------------
Capital stock sold 6,101,985
- ------------------------------------------------------------
Dividends and interest 4,872,472
- ------------------------------------------------------------
Investment for deferred compensation plan 20,947
- ------------------------------------------------------------
Other assets 144,513
- ------------------------------------------------------------
Total assets 2,617,952,711
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 20,353,045
- ------------------------------------------------------------
Capital stock reacquired 6,866,970
- ------------------------------------------------------------
Deferred compensation 20,947
- ------------------------------------------------------------
Accrued advisory fees 1,828,737
- ------------------------------------------------------------
Accrued administrative services fees 9,130
- ------------------------------------------------------------
Accrued directors' fees 1,800
- ------------------------------------------------------------
Accrued distribution fees 1,576,413
- ------------------------------------------------------------
Accrued transfer agent fees 497,193
- ------------------------------------------------------------
Accrued operating expenses 311,198
- ------------------------------------------------------------
Total liabilities 31,465,433
- ------------------------------------------------------------
Net assets applicable to shares outstanding $2,586,487,278
============================================================
NET ASSETS:
Class A $1,273,872,409
============================================================
Class B $1,300,351,635
============================================================
Class C $ 12,263,234
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 65,015,296
============================================================
Class B:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 67,671,488
============================================================
Class C:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 638,065
============================================================
Class A:
Net asset value and redemption price per
share $ 19.59
============================================================
Offering price per share:
(Net asset value $19.59
divided by 95.25%) $ 20.57
============================================================
Class B:
Net asset value and offering price per
share $ 19.22
============================================================
Class C:
Net asset value and offering price per
share $ 19.22
============================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $792,651 foreign withholding
tax) $ 8,980,990
- -------------------------------------------------------------
Interest 3,820,728
- -------------------------------------------------------------
Total investment income 12,801,718
- -------------------------------------------------------------
EXPENSES:
Advisory fees 10,412,203
- -------------------------------------------------------------
Administrative services fees 53,818
- -------------------------------------------------------------
Custodian fees 845,370
- -------------------------------------------------------------
Directors' fees 11,039
- -------------------------------------------------------------
Distribution fees-Class A 2,952,247
- -------------------------------------------------------------
Distribution fees-Class B 6,013,254
- -------------------------------------------------------------
Distribution fees-Class C 40,203
- -------------------------------------------------------------
Transfer agent fees-Class A 1,463,040
- -------------------------------------------------------------
Transfer agent fees-Class B 1,806,023
- -------------------------------------------------------------
Transfer agent fees-Class C 14,070
- -------------------------------------------------------------
Other 463,456
- -------------------------------------------------------------
Total expenses 24,074,723
- -------------------------------------------------------------
Less: Expenses paid indirectly (47,955)
- -------------------------------------------------------------
Net expenses 24,026,768
- -------------------------------------------------------------
Net investment income (loss) (11,225,050)
- -------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities (4,106,307)
- -------------------------------------------------------------
Foreign currencies (440,203)
- -------------------------------------------------------------
(4,546,510)
- -------------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities 318,450,491
- -------------------------------------------------------------
Foreign currencies (591,659)
- -------------------------------------------------------------
317,858,832
- -------------------------------------------------------------
Net gain from investment securities and
foreign
currencies 313,312,322
- -------------------------------------------------------------
Net increase in net assets resulting from
operations $302,087,272
=============================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1998 and the year ended October 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1998 1997
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (11,225,050) $ (26,427,661)
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies (4,546,510) (61,191,114)
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
foreign currencies 317,858,832 272,401,591
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 302,087,272 184,782,816
- ----------------------------------------------------------------------------------------------
Share transactions-net:
Class A (121,304,637) 221,978,537
- ----------------------------------------------------------------------------------------------
Class B (89,724,214) 350,877,196
- ----------------------------------------------------------------------------------------------
Class C 6,248,878 5,007,454
- ----------------------------------------------------------------------------------------------
Net increase in net assets 97,307,299 762,646,003
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 2,489,179,979 1,726,533,976
- ----------------------------------------------------------------------------------------------
End of period $2,586,487,278 $2,489,179,979
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $1,911,758,320 $2,116,538,293
- ----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (11,261,208) (36,158)
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (105,961,179) (101,414,669)
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 791,951,345 474,092,513
- ----------------------------------------------------------------------------------------------
$2,586,487,278 $2,489,179,979
==============================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
April 30, 1998
(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 series management investment company consisting of six
separate portfolios: AIM Global Aggressive Growth Fund, AIM Asian Growth Fund,
AIM European Development Fund, AIM Global Growth Fund, AIM Global Income Fund
and AIM International Equity Fund. The Fund currently offers three different
classes of shares: Class A shares, Class B shares and Class C shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C 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 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. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements.
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 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
16
<PAGE> 19
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 foreign 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 foreign 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 foreign 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 $91,801,587 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized,
through the year 2005.
F. Expenses -- Distribution and transfer agency expenses directly attributable
to a class of shares are charged to that class' operations. All other
expenses which are attributable to more than one class are allocated among
the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.90% 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, 1998, AIM
was reimbursed $53,818 for such services.
The Fund, pursuant to a transfer agency and services agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing
transfer agency services to the Fund. During the six months ended April 30,
1998, AFS was paid $1,906,971 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C 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 and Class C shares (the "Class A and C Plan"), and the
Fund's Class B shares (the "Class B Plan")(collectively, the "Plans"). The Fund,
pursuant to the Class A and C Plan, pays AIM Distributors compensation at an
annual rate of 0.50% of the average daily net assets of the Class A shares and
1.00% of the average daily net assets of Class C shares. The Fund, pursuant to
the Class B Plan, pays AIM Distributors compensation at an annual rate of 1.00%
of the average daily net assets attributable to the Class B shares. Of these
amounts, the Fund may pay a service fee of 0.25% of the average daily net assets
of the Class A, Class B or C shares to selected dealers and financial
institutions who furnish continuing personal shareholder services to their
customers who purchase and own the appropriate class of shares of the Fund. Any
amounts not paid as a service fee under the 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, 1998, the
Class A, Class B and Class C shares paid AIM Distributors $2,952,247, $6,013,254
and $40,203, respectively, as compensation under the Plans.
AIM Distributors received commissions of $386,898 from the sales of the Class
A shares of the Fund during the six months ended April 30, 1998. 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,
17
<PAGE> 20
1998, AIM Distributors received commissions of $80,740 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, 1998, the Fund paid legal fees of $3,061
for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to the
Company's directors. A member of that firm is a director of the Company.
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 1998, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) and reductions in custodian
fees of $13,477 and $34,478, respectively, under expense offset arrangements.
The effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $47,955 during the six months ended April 30, 1998.
NOTE 4-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 5-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) $500,000,000 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, 1998, 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 0.05% 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.
Pursuant to an amendment to the line of credit agreement effective May 1,
1998, the Fund may borrow up to the lesser of (i) $1,000,000,000 or (ii) the
limits set by the prospectus for borrowings.
NOTE 6-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, 1998 was
$515,387,133 and $742,764,570, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of April 30, 1998, on a tax basis, is as follows.
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $831,540,514
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (48,182,684)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $783,357,830
=========================================================
Cost of investments for tax purposes is $1,760,687,160.
</TABLE>
NOTE 7-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1998 and the year ended October 31, 1997 were as follows:
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1998 1997
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sold:
Class A 42,347,990 $ 753,014,649 41,562,019 $ 712,389,030
- --------------------------------------------------------------------------------
Class B 5,147,124 89,358,765 31,043,322 516,329,374
- --------------------------------------------------------------------------------
Class C* 425,115 7,331,119 281,009 5,113,170
- --------------------------------------------------------------------------------
Reacquired:
Class A (49,216,901) (874,319,286) (28,025,133) (490,410,493)
- --------------------------------------------------------------------------------
Class B (10,544,760) (179,082,979) (9,784,297) (165,452,178)
- --------------------------------------------------------------------------------
Class C* (62,073) (1,082,241) (5,986) (105,716)
- --------------------------------------------------------------------------------
(11,903,505) $(204,779,973) 35,070,934 $ 577,863,187
================================================================================
</TABLE>
* Class C commenced sales on August 4, 1997.
18
<PAGE> 21
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A and Class B
capital stock outstanding during the six months ended April 30, 1998, each of
the years in the three-year period ended October 31, 1997 and the period
September 15, 1994 (date sales commenced) through October 31, 1994, and for a
share of Class C capital stock outstanding during the six months ended April 30,
1998 and the period August 4, 1997 (date sales commenced) through October 31,
1997.
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
OCTOBER 31,
APRIL 30, ---------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.28 $ 15.76 $ 13.09 $ 10.22 $ 10.00
- ---------------------------------------------------------- ---------- ---------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.06) (0.15)(a) (0.09)(a) (0.09)(a) --
- ---------------------------------------------------------- ---------- ---------- -------- -------- --------
Net gains on securities (both realized and unrealized) 2.37 1.67 2.81 2.96 0.22
- ---------------------------------------------------------- ---------- ---------- -------- -------- --------
Total from investment operations 2.31 1.52 2.72 2.87 0.22
- ---------------------------------------------------------- ---------- ---------- -------- -------- --------
Less distributions:
Distributions from net realized gains -- -- (0.05) -- --
- ---------------------------------------------------------- ---------- ---------- -------- -------- --------
Net asset value, end of period $ 19.59 $ 17.28 $ 15.76 $ 13.09 $ 10.22
========================================================== ========== ========== ======== ======== ========
Total return(b) 13.37% 9.65% 20.83% 28.08% 2.20%
========================================================== ========== ========== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,273,872 $1,242,505 $919,319 $186,029 $ 18,410
========================================================== ========== ========== ======== ======== ========
Ratio of expenses to average net assets 1.73%(c)(d) 1.75% 1.83% 2.11% 2.02%(e)(f)
========================================================== ========== ========== ======== ======== ========
Ratio of net investment income (loss) to average net
assets (0.66)%(c) (0.88)% (0.62)% (0.68)% 0.27%(f)(g)
========================================================== ========== ========== ======== ======== ========
Portfolio turnover rate 22% 57% 44% 64% 2%
========================================================== ========== ========== ======== ======== ========
Average brokerage commission rate paid(h) $ 0.0140 $ 0.0131 $ 0.0155 N/A N/A
========================================================== ========== ========== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and are not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $1,190,685,312.
(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/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
4.03% (annualized).
(f) Annualized.
(g) After fee waivers and/or expense reimbursements. Ratio of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements was (1.74)% (annualized).
(h) The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased and sold, which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------------------------------ ------------------------
OCTOBER 31,
APRIL 30, ------------------------------------------- APRIL 30, OCTOBER 31,
1998 1997 1996 1995 1994 1998 1997
---------- ---------- -------- -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 17.00 $ 15.58 $ 13.02 $ 10.21 $ 10.00 $ 17.00 $ 18.39
- ---------------------------------- ---------- ---------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.11) (0.24)(a) (0.17)(a) (0.14)(a) -- (0.11) (0.04)(a)
- ---------------------------------- ---------- ---------- -------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) 2.33 1.66 2.78 2.95 0.21 2.33 (1.35)
- ---------------------------------- ---------- ---------- -------- -------- -------- -------- --------
Total from investment
operations 2.22 1.42 2.61 2.81 0.21 2.22 (1.39)
- ---------------------------------- ---------- ---------- -------- -------- -------- -------- --------
Less distributions:
Distributions from net realized
gains -- -- (0.05) -- -- -- --
- ---------------------------------- ---------- ---------- -------- -------- -------- -------- --------
Net asset value, end of period $ 19.22 $ 17.00 $ 15.58 $ 13.02 $ 10.21 $ 19.22 $ 17.00
================================== ========== ========== ======== ======== ======== ======== ========
Total return(b) 13.06% 9.11% 20.09% 27.52% 2.10% 13.06% (7.56)%
================================== ========== ========== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $1,300,352 $1,241,999 $807,215 $118,199 $ 6,201 $ 12,263 $ 4,676
================================== ========== ========== ======== ======== ======== ======== ========
Ratio of expenses to average net
assets 2.29%(c)(d) 2.30% 2.37% 2.62% 2.54%(e)(f) 2.28%(c)(d) 2.36%(f)
================================== ========== ========== ======== ======== ======== ======== ========
Ratio of net investment income
(loss) to average net assets (1.22)%(c) (1.44)% (1.16)% (1.19)% (0.25)%(f)(g) (1.21)%(c) (1.50)%(f)
================================== ========== ========== ======== ======== ======== ======== ========
Portfolio turnover rate 22% 57% 44% 64% 2% 22% 57%
================================== ========== ========== ======== ======== ======== ======== ========
Average brokerage commission rate
paid(h) $ 0.0140 $ 0.0131 $ 0.0155 N/A N/A $ 0.0140 $ 0.0131
================================== ========== ========== ======== ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and are not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $1,212,617,651 and
$8,107,026 for Class B and Class C, respectively.
(d) Ratios include indirectly paid expenses. Excluding indirectly paid expenses,
the ratios of expenses to average assets would have been 2.28% (annualized)
for Class B and the same for Class C.
(e) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
4.43% (annualized).
(f) Annualized.
(g) After fee waivers and/or expense reimbursements. Ratio of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements was (2.14)% (annualized).
(h) The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased and sold, which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
19
<PAGE> 22
Directors & Officers
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
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
Director
ACE Limited; John J. Arthur A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Treasurer 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Carol F. Relihan Houston, TX 77046
Senior Vice President and Secretary
Owen Daly II TRANSFER AGENT
Director Gary T. Crum
Cortland Trust Inc. Senior Vice President A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Dana R. Sutton Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President and Assistant Treasurer
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Robert G. Alley
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Melville B. Cox Boston MA 02110
Chief Executive Officer Vice President
Texana Global, Inc.; COUNSEL TO THE FUND
Formerly Member Jonathan C. Schoolar
of the U.S. House of Representatives Vice President Ballard Spahr
Andrews & Ingersoll, LLP
Carl Frischling Renee A. Bamford 1735 Market Street
Partner Assistant Secretary Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel
P. Michelle Grace COUNSEL TO THE DIRECTORS
Robert H. Graham Assistant Secretary
President and Chief Executive Officer Kramer, Levin, Naftalis & Frankel
A I M Management Group Inc. Jeffrey H. Kupor 919 Third Avenue
Assistant Secretary New York, NY 10022
John F. Kroeger
Formerly Consultant Nancy L. Martin DISTRIBUTOR
Wendell & Stockel Associates, Inc. Assistant Secretary
A I M Distributors, Inc.
Lewis F. Pennock Ofelia M. Mayo 11 Greenway Plaza
Attorney Assistant Secretary Suite 100
Houston, TX 77046
Ian W. Robinson Lisa A. Moss
Consultant; Formerly Executive Assistant Secretary
Vice President and
Chief Financial Officer Kathleen J. Pflueger
Bell Atlantic Management Assistant Secretary
Services, Inc.
Samuel D. Sirko
Louis S. Sklar Assistant Secretary
Executive Vice President
Hines Interests Stephen I. Winer
Limited Partnership Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
20
<PAGE> 23
How AIM Makes Investing
Easy For You
o LOW INITIAL INVESTMENT. You can get your investment program started for as
little as $500. Subsequent investments can be made for only $50.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. Distributions may
be received in cash or reinvested in the Fund free of charge. Over time, the
power of compounding can significantly increase the value of your assets.
o AUTOMATIC INVESTMENT PLAN. You may build your investment by regularly
purchasing additional shares. Pre-authorized checks for $50 or more can be
drafted monthly from your personal checking account.
o EASY ACCESS TO YOUR MONEY. Your shares may be redeemed at net asset value
any day the New York Stock Exchange is open. The price of shares sold may be
more or less than their original cost, depending on market conditions.
o SYSTEMATIC WITHDRAWAL PLAN. You may elect to receive checks of at least $50
monthly or quarterly through a systematic withdrawal plan.
o EXCHANGE PRIVILEGE. As your goals change, you may exchange all or part of
your assets for those of other funds within the same share class of The AIM
Family of Funds--Registered Trademark--. The exchange privilege may be
modified or discontinued for any of the AIM Funds.
o RETIREMENT PLANS. You may purchase shares of the Fund for your Individual
Retirement Account (IRA) or any other type of retirement plan, and earn
tax-deferred dollars for your retirement.
o TOLL-FREE ACCESS. Current shareholders can call our AIM Investor Line at
800-246-5463 for 24-hour-a-day account information. Or, of course, you may
contact your financial consultant for assistance.
o www.aimfunds.com. As a current shareholder, you can check account balances
24 hours a day over the Internet. State-of-the-art encryption lets you send
us questions that include confidential information without the fear of
eavesdropping, tampering or forgery.
-------------------
Current shareholders
can call our
AIM Investor Line at
800-246-5463
for 24-hour-a-day
account information.
-------------------
<PAGE> 24
<TABLE>
<S> <C>
THE AIM FAMILY OF FUNDS--Registered Trademark--
FOR AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Asian Growth Fund
AIM Capital Development Fund
AIM Constellation Fund
AIM European Development Fund
AIM Global Aggressive Growth Fund
[PHOTO OF FOR GROWTH OF CAPITAL
11 GREENWAY PLAZA AIM Advisor International Value Fund
APPEARS HERE] AIM Blue Chip Fund
AIM Global Growth Fund
AIM International Equity Fund
AIM Select Growth Fund**
AIM Value Fund
AIM Weingarten Fund
FOR GROWTH AND INCOME OR INCOME WITH CAPITAL GROWTH
AIM Advisor Flex Fund
AIM Advisor Large Cap Value Fund
AIM Advisor MultiFlex Fund
AIM Advisor Real Estate Fund
AIM Balanced Fund
AIM Charter Fund
AIM Global Utilities Fund
FOR HIGH CURRENT INCOME OR CURRENT INCOME
AIM High Yield Fund
AIM Global Income Fund
AIM Income Fund
FOR CURRENT TAX-FREE INCOME
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
FOR CURRENT INCOME AND HIGH DEGREE OF SAFETY
A I M Management Group Inc. has provided leadership in the AIM Intermediate Government Fund
mutual fund industry since 1976 and managed approximately AIM Limited Maturity Treasury Fund
$89 billion in assets for more than 4.4 million shareholders, AIM Money Market Fund
including individual investors, corporate clients, and financial AIM Tax-Exempt Cash Fund
institutions as of March 31, 1998. The AIM Family of
Funds--Registered Trademark-- is distributed nationwide, and *AIM Aggressive Growth Fund was closed to new investors on
AIM today ranks among the nation's top 15 mutual fund June 5, 1997. **On May 1, 1998, AIM Growth Fund was
companies in assets under management, according to Lipper renamed AIM Select Growth Fund. For more complete
Analytical Services, Inc. information about any AIM Fund(s), including sales charges
and expenses, ask your financial consultant or securities
dealer for a free prospectus(es). Please read the
prospectus(es) carefully before you invest or send money.
INVEST WITH DISCIPLINE-SM-
</TABLE>
