<PAGE> 1
AIM GLOBAL
GROWTH FUND
[AIM LOGO APPEARS HERE] ANNUAL REPORT OCTOBER 31, 1997
<PAGE> 2
-------------------------------------
AIM GLOBAL GROWTH FUND
For shareholders who seek
long-term growth of capital.
The Fund invests in a portfolio
of global equity securities
of companies with
strong earnings momentum.
-------------------------------------
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Growth Fund's performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value. Unless
otherwise indicated, the Fund's performance is computed without a sales
charge.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B share
performance reflects the applicable contingent deferred sales charge (CDSC)
for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The performance of the Fund's Class B shares and Class C shares will
differ from that of Class A shares due to differences in sales charge
structure and Fund expenses.
o Class C shares commenced sales on August 4, 1997.
o The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less that their
original cost.
o Past performance cannot guarantee comparable future results.
o International investing presents certain risks not associated with investing
solely in the U.S. These include risks relating to fluctuations in the value
of the U.S. dollar relative to the value of other currencies, the custody
arrangements made for the Fund's foreign holdings, differences in
accounting, political risks, and the lesser degree of public information
required to be provided by non-U.S. companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Morgan Stanley Capital International World Index is a group of unmanaged
global securities tracked by Morgan Stanley Capital International.
o Standard & Poor's Corporation (S&P) is a credit-rating agency. The unmanaged
Standard & Poor's Composite Index of 500 Stocks (S&P 500) is widely regarded
by investors as representative of the stock market in general.
o The unmanaged Russell 2000 Index is generally representative of the
performance of the stocks of small-capitalization companies.
o The Dow Jones Industrial Average (DJIA) is an unmanaged composite of the
performance of 30 large-company stocks.
o The Europe, Australia, Far East (EAFE) Index is a group of unmanaged
securities. The index is compiled by Morgan Stanley Capital International.
o The NASDAQ (National Association of Securities Dealers Automated Quotation
system) Compositie Index is a group of more than 4,500 unmanaged
over-the-counter securities widely regarded by investors to be
representative of the small- and medium-sized company stock universe.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
MUTUAL FUNDS, ANNUITIES, AND OTHER INVESTMENTS
ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY;
ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY,
ANY BANK OR ANY AFFILIATE; AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
This report may be distributed only to current shareholders
or to persons who have received a current prospectus of the Fund.
<PAGE> 3
The Chairman's Letter
Dear Fellow Shareholder:
The fiscal year ended October 31 experienced no let-up in
[PHOTO OF the volatility in equity markets, and it closed on an
Charles T. unsettling note. In late October, in the wake of a currency
Bauer, crisis in Southeast Asia, the stock market experienced its
Chairman of first 10% correction since 1991. On Monday, October 27, the
THE FUND New York Stock Exchange closed to deal with market
APPEARS HERE] volatility for the first time in its history when the the
Dow Jones Industrial Average fell 554 points, the index's
largest point decline ever. It is important to note that in
percentage terms, this was a drop of 7.18%, far smaller than
the 22.61% decline that occurred October 19, 1987.
Fortunately, this time the market snapped back, and the Dow
regained 337 points the next day. As of this writing,
markets continue to recover.
Many investment managers, including AIM, had cautioned
that a correction was inevitable, that the relentless rise
in benchmarks like the Dow could not continue. In less than
12 months, the Dow had climbed from 6010 on October 14,
1996, to reach its all-time high of 8259 on August 6, 1997.
When markets become overvalued, no one knows what will precipitate a
decline. No one foresaw that a currency devaluation by Thailand beginning during
the summer would lead to worldwide stock market turmoil.
Despite recent activities, the fiscal year ended October 31 brought domestic
equity investors excellent returns: The Dow was up almost 26%; the broader S&P
500, more than 32%; the NASDAQ small-cap index, 30.46%. International
investments, while positive, weren't as robust; the EAFE Index rose 4.63%. On
the following pages, your Fund managers discuss how your Fund performed in this
market context and their outlook for the future.
REALISTIC EXPECTATIONS
The 1100-point decline in the Dow between early August and late October was the
latest in a series of market breaks. Between mid-March and mid-April of this
year, for example, the Dow dropped almost 10%.
Many investors, including professional fund managers, have become accustomed
to buying on these market breaks because the market has bounced back quickly.
From its 1997 low of 6391 on April 11, the Dow took less than four months to
rise almost 2000 points to its all-time high.
However, this time could be different. Many investors have developed two
unrealistic expectations: first, a belief that stocks can rise more than 20% a
year indefinitely; and second, confidence that the market always rebounds
swiftly from a decline.
Neither notion is historically correct. History tells us that over the long
term, average annual total return for stocks is about 10%, not 20%. And those of
us who have been in this business for many years remember the bear market of the
1970s, when the market experienced a series of declines and recovery was very
slow.
Nevertheless, there is reason for optimism, including sound fiscal policy
steadily shrinking the federal deficit, stable interest rates, and a strong
economy unharmed by inflation. Despite recent events in Asia, it is difficult to
be pessimistic about the U.S. economy and, indeed, about most of the developed
economies in the world.
We are pleased to send you this report on your Fund. Please contact our
Client Services department at 800-959-4246 if you have any questions or
comments. Don't forget that automated information about your AIM account is
available 24 hours a day on the AIM Investor Line, 800-246-5463. Or visit our
Web site, at www.aimfunds.com.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
--------------------------------
Despite recent activities,
the fiscal year ended October 31
brought domestic equity investors
excellent returns.
--------------------------------
<PAGE> 4
The Managers' Overview
EUROPEAN GROWTH RETURNS OFFSET "ASIAN FLU"
A roundtable discussion with the Fund management team for AIM Global Growth
Fund about the fiscal year ended October 31, 1997.
- -------------------------------------------------------------------------------
Q: WORLD EQUITY MARKETS HAD A VOLATILE YEAR. HOW DID THE FUND PERFORM DURING
THE REPORTING PERIOD?
A: The Fund posted another period of solid performance. Total return was
17.25% for Class A shares and 16.65% for Class B shares for the fiscal year
ended October 31, 1997 (Class C shares commenced sales on August 4, 1997.)
Comparatively, the Morgan Stanley Capital International (MSCI) World Index
of global stocks gained 16.77% during the reporting period. The Fund's net
assets grew $167 million to $404 million at the end of the reporting
period.
Q: WHAT WERE SOME OF THE MAJOR INFLUENCES ON THE Fund's PORTFOLIO OVER THE
PAST 12 MONTHS?
A: In the United States, the reporting period was "a tale of two markets."
During the first six months of the fiscal year ended April 30, 1997,
large-company stocks were the undisputed market kings as the Standard and
Poor's Composite Index of 500 Stocks (S&P 500) rose 14.75% compared to a
1.61% rise for the Russell 2000 Index, which tracks small-cap stocks.
However, from May 1 until October 31, 1997, small-caps greatly outperformed
large-cap stocks, as evidenced by the Russell 2000's 27.29% return over this
period versus the S&P 500's 15.13% return. Regardless, the S&P 500 rose
32.10% during the reporting period ended October 31, 1997, and the Fund
invests in many of the same large domestic companies such as IBM, Gillette,
and Proctor & Gamble that comprise the S&P 500.
At the end of the reporting period, though, just 33% of the Fund was
in domestic equities, which meant the remaining 67% of the Fund was invested
around the world and exposed to some very volatile markets, especially in
Southeast Asia.
We continue to see more of a global economy every year. Around the
world inflation was relatively tame and interest rates remained low, an
attractive combination during the reporting period which provided an
excellent economic environment for equities. Global market volatility
caused investors to favor large-cap stocks as opposed to small-cap stocks,
which contributed to the Fund's performance.
Q: HOW DID THE GLOBAL MARKETS PERFORM DURING THE REPORTING PERIOD?
A: European markets had an outstanding year. Six of the 10 best-performing
markets in the world during the reporting period were in Europe. Latin
America also posted solid performance during the fiscal year, although its
returns were tempered by global market volatility in the final week of the
reporting period.
Unfortunately, the same cannot be said for the Far East. Japan and the
Asian Tigers had a very difficult time during the reporting period: Thailand
was off 68%, the Philippines off 52%, Japan down 18%, and Hong Kong fell
17%.
Q: WHAT CAUSED THE EXCELLENT MARKET RETURNS IN EUROPE?
A: There were two major factors at work in European markets. The first was
the ongoing economic restructuring, which we have talked about for quite
some time. But during the fiscal year we saw the economic returns caused by
the restructuring gain considerable momentum. Europe remains an area with
fairly cheap valuations, especially when compared to the U.S. More
importantly, earnings growth in Europe also continued to be strong.
The second major stimulus on European markets was the introduction of
real investing for the first time to European households. Individual
investors recently have discovered the benefits of investing in equities.
Their investment represents a large pool of retirement savings. Europeans
are becoming more educated about the advantages of investing in their stock
markets, and we think demand for European equities will continue to grow.
Four of the Fund's top 10 holdings were located in continental Europe
and the United Kingdom: Credito Italiano, an Italian banking company,
Philips Electronics, a Dutch company that specializes in household
furnishings and applicances,
===============================================================================
FUND CELEBRATES THIRD ANNIVERSARY WITH 5 STARS
*****On September 15, 1997, AIM Global Growth Fund celebrated its third
anniversary by receiving a five-star rating for its overall performance from
Morningstar*. The Fund also received five stars for its three-year
performance.
*Morningstar proprietary ratings reflect risk-adjusted performance through
September 30, 1997. 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-bills. The top 10% of the funds in a rating
category receive 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.
--------------------------------------
Around the world inflation was
relatively tame and interest rates
remained low, an attractive
combination for equities.
-------------------------------------
See important fund and index disclosures inside front cover.
2
<PAGE> 5
The Managers' Overview
PORTFOLIO COMPOSITION
As of October 31, 1997, based on total net assets
<TABLE>
<CAPTION>
===============================================================================================================================
TOP 10 COUNTRIES TOP 10 INDUSTRIES TOP 10 EQUITY HOLDINGS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. United States 30.25% 1. Banks (Major Regional) 5.23% 1. Rohm Co., Ltd. (Japan) 0.71%
2. Japan 9.96 2. Computer (Software & Services) 3.60 2. Credito Italiano S.p.A. (Italy) 0.69
3. United Kingdom 9.50 3. Services (Commercial Consumer) 3.59 3. Fomento Economico Mexicano, 0.67
S.A. de C.V.-Class B (Mexico)
4. France 7.45 4. Telephone 3.48 4. Panamerican Beverages Inc.- 0.66
Class A (Mexico)
5. Germany 4.48 5. Manufacturing (Diversified) 3.46 5. TDK Corp. (Japan) 0.64
6. Netherlands 4.32 6. Electronics (Component Distributors) 3.40 6. Philips Electronics N.V. (Netherlands) 0.62
7. Italy 3.76 7. Retail (Food Chains) 2.65 7. Sony Corp. (Japan) 0.62
8. Mexico 3.67 8. Oil & Gas (Refining & Marketing) 2.56 8. Honda Motor Co., Ltd. (Japan) 0.61
9. Hong Kong 3.01 9. Financial (Diversified) 2.24 9. Telecom Italia S.p.A. (Italy) 0.60
10. Switzerland 2.59 10. Oil (International Integrated) 2.21 10. Tarmac PLC (UK) 0.60
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>
Telecom Italia, the Italian telephone conglomerate, and Tarmac PLC, a
British engineering and construction company. All saw significant earnings
growth during the reporting period.
Q: WHAT CAUSED THE ECONOMIC TURBULENCE IN THE PACIFIC RIM?
A: Simply put, the emerging markets in countries like Thailand, Malaysia,
Indonesia, and the Philippines grew too quickly for their size. New
construction of office buildings and factories far outstripped demand, and
the debt used to finance the construction burgeoned. When cash flow became a
problem, the markets in the region went into a tailspin. The markets in
these countries are very small, and it doesn't take much to move those
markets either up or down.
Q: HOW DID THE TURMOIL IN THOSE MARKETS AFFECT THE FUND?
A: Fortunately, we had lowered the portfolio's weightings in Asia prior to
October's troubles. Our earnings discipline was very helpful in our exit
from those markets in the Pacific Rim. The earnings in most of the companies
in that region were on a downward trend prior to the October market drop,
and our discipline dictated that it was time to sell those holdings. By the
end of the holding period just over 10% of the Fund's portfolio was invested
in Japan and only 3% was invested in Hong Kong.
Q: WHAT WAS THE ECONOMIC SITUATION IN JAPAN?
A: Unfortunately, the second-largest economy in the world was still in the
grips of a major recession during the reporting period. Japan also was
affected by the "Asian Flu" because a number of Japanese banks had
investments and outstanding loans to their Asian neighbors. However, because
of the size and maturity of the Japanese market, many Japanese companies are
global, rather than regional, players.
In spite of the economic difficulties in Japan, we did identify several
Japanese companies with earnings growth, including four among the Fund's top
10 holdings: Rohm Company, an electronics component distributor which was
the Fund's largest single holding, TDK Corp., which specializes in
electrical equipment, and familiar names Sony Corp. and Honda Motor Co.
Q: YOU MENTIONED THAT YOU HAVE REDUCED THE Fund's EXPOSURE IN THE FAR EAST.
WHERE HAVE YOU PUT THAT MONEY TO WORK?
A: The portfolio's holdings in Latin America increased dramatically so that
6.86% of the Fund was invested there at the end of the reporting period. In
U.S. dollars Brazil was up over 18%, Colombia up 45%, and Mexico up 37%
during the reporting period. The Mexican market and economy continue to
progress quite nicely, and we've been increasing the portfolio's weighting
there in companies such as Coca-Cola FEMSA. We also raised our holdings of
European securities as we reduced holdings in Asia.
Q: WHAT IS YOUR OUTLOOK FOR THE FUND IN THE NEAR TERM?
A: Conditions worldwide remain very good for equities, although it is
unrealistic to expect continued equity returns of 20% or more. Globally, we
are still very positive on Europe, and very hesitant on the Pacific Rim.
Things may continue to worsen in Asia before those markets experience a
recovery, so we do not anticipate our Asian weightings increasing any time
soon. In Europe, though, we believe there will be faster earnings growth
there 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 are
all lower than in the U.S. The economic outlook in Latin America seems
positive as well.
It is important to remember that what happened in October in Asia
should have little bearing on U.S. markets. 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 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 9/15/94 to 10/31/97. It is important to understand the difference
between your Fund and an index. Your Fund's total return is shown with a sales
charge and includes fund expenses and management fees. 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 $10,000
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
CLASS A CLASS B MSCI
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
9/15/94 9,524 10,000 10,000
11/94 9,333 9,790 9,585
2/95 9,404 9,850 9,677
5/95 10,366 10,840 10,593
8/95 11,471 11,990 10,878
11/95 11,967 12,490 11,407
2/96 12,572 13,105 12,033
5/96 13,493 14,051 12,538
8/96 13,192 13,715 12,303
11/96 14,462 15,018 13,602
2/97 14,801 15,343 13,708
5/97 15,577 16,127 14,741
8/97 16,217 16,768 15,112
10/97 16,139 16,676 15,100
============================================================================
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/97 including sales charges
CLASS A SHARES
Inception (9/15/94) 16.55%
3 years 16.42
1 year 11.67
CLASS B SHARES
Inception (9/15/94) 17.09%
3 years 17.00
1 year 11.65
CLASS C SHARES
Inception (8/4/97) -6.69%
================================================================================
Past performance is no guarantee of comparable future results
Your Fund's total return include 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. Source: Towers Data Systems Hypo--
Registered Trademark--.
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 1997
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-29.98%
AGRICULTURAL PRODUCTS-0.41%
DIMON, Inc. 25,000 $ 648,437
- ---------------------------------------------------------------
Universal Corp. 26,000 999,375
- ---------------------------------------------------------------
1,647,812
- ---------------------------------------------------------------
BANKS (MAJOR REGIONAL)-0.13%
NationsBank Corp. 9,000 538,875
- ---------------------------------------------------------------
BANKS (MONEY CENTER)-0.94%
BankAmerica Corp. 17,000 1,215,500
- ---------------------------------------------------------------
Chase Manhattan Corp. 11,500 1,326,812
- ---------------------------------------------------------------
Citicorp 10,000 1,250,625
- ---------------------------------------------------------------
3,792,937
- ---------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.21%
Crompton & Knowles Corp. 34,600 873,650
- ---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-0.49%
Lucent Technologies, Inc. 15,500 1,277,781
- ---------------------------------------------------------------
Tellabs, Inc.(a) 13,000 702,000
- ---------------------------------------------------------------
1,979,781
- ---------------------------------------------------------------
COMPUTERS (HARDWARE)-1.52%
Compaq Computer Corp. 29,000 1,848,750
- ---------------------------------------------------------------
Dell Computer Corp.(a) 21,000 1,682,625
- ---------------------------------------------------------------
Digital Equipment Corp.(a) 30,000 1,501,875
- ---------------------------------------------------------------
International Business Machines Corp. 11,500 1,127,719
- ---------------------------------------------------------------
6,160,969
- ---------------------------------------------------------------
COMPUTERS (NETWORKING)-0.67%
Bay Networks, Inc.(a) 45,000 1,423,125
- ---------------------------------------------------------------
Cisco Systems, Inc.(a) 16,000 1,312,500
- ---------------------------------------------------------------
2,735,625
- ---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.21%
EMC Corp.(a) 15,000 840,000
- ---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-1.15%
BMC Software, Inc.(a) 11,400 688,275
- ---------------------------------------------------------------
Computer Associates International, Inc. 19,000 1,416,687
- ---------------------------------------------------------------
Compuware Corp.(a) 21,000 1,388,625
- ---------------------------------------------------------------
Microsoft Corp.(a) 9,000 1,170,000
- ---------------------------------------------------------------
4,663,587
- ---------------------------------------------------------------
CONSUMER FINANCE-1.12%
FIRSTPLUS Financial Group, Inc.(a) 11,500 632,500
- ---------------------------------------------------------------
Green Tree Financial Corp. 32,000 1,348,000
- ---------------------------------------------------------------
Household International, Inc. 10,000 1,132,500
- ---------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CONSUMER FINANCE-(CONTINUED)
SLM Holding Corp. 10,000 $ 1,403,750
- ---------------------------------------------------------------
4,516,750
- ---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.56%
AmeriSource Health Corp.-Class A(a) 25,000 1,484,375
- ---------------------------------------------------------------
Cardinal Health, Inc. 10,650 790,762
- ---------------------------------------------------------------
2,275,137
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT-0.76%
General Electric Co. 23,000 1,484,937
- ---------------------------------------------------------------
Solectron Corp.(a) 25,400 996,950
- ---------------------------------------------------------------
Symbol Technologies, Inc. 15,000 596,250
- ---------------------------------------------------------------
3,078,137
- ---------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-0.27%
Waters Corp.(a) 25,000 1,100,000
- ---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-0.65%
Intel Corp. 18,000 1,386,000
- ---------------------------------------------------------------
Texas Instruments, Inc. 11,500 1,226,906
- ---------------------------------------------------------------
2,612,906
- ---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTORS)-0.55%
Applied Materials, Inc.(a) 25,700 857,737
- ---------------------------------------------------------------
KLA-Tencor Corp.(a) 15,000 659,062
- ---------------------------------------------------------------
Teradyne, Inc.(a) 18,400 688,850
- ---------------------------------------------------------------
2,205,649
- ---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.27%
American Express Co. 15,000 1,170,000
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp. 31,800 1,204,425
- ---------------------------------------------------------------
Federal National Mortgage Association 27,200 1,317,500
- ---------------------------------------------------------------
MBIA, Inc. 2,400 143,400
- ---------------------------------------------------------------
Morgan Stanley, Dean Witter, Discover
& Co. 25,900 1,269,100
- ---------------------------------------------------------------
SunAmerica, Inc. 450 16,172
- ---------------------------------------------------------------
5,120,597
- ---------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-1.06%
Abbott Laboratories 12,300 754,144
- ---------------------------------------------------------------
Bristol-Myers Squibb Co. 11,500 1,009,125
- ---------------------------------------------------------------
Johnson & Johnson 19,500 1,118,812
- ---------------------------------------------------------------
Warner-Lambert Co. 9,900 1,417,556
- ---------------------------------------------------------------
4,299,637
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC & OTHER)-0.28%
Watson Pharmaceuticals, Inc.(a) 35,800 1,136,650
- ---------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)-0.53%
Merck & Co., Inc. 8,000 $ 714,000
- ---------------------------------------------------------------
Pfizer, Inc. 4,200 297,150
- ---------------------------------------------------------------
Schering-Plough Corp. 20,000 1,121,250
- ---------------------------------------------------------------
2,132,400
- ---------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-0.35%
Quorum Health Group, Inc.(a) 41,250 1,000,312
- ---------------------------------------------------------------
Tenet Healthcare Corp.(a) 13,900 424,819
- ---------------------------------------------------------------
1,425,131
- ---------------------------------------------------------------
HEALTH CARE (LONG TERM CARE)-0.26%
HEALTHSOUTH Corp.(a) 41,000 1,048,063
- ---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-1.22%
Baxter International Inc. 21,000 971,250
- ---------------------------------------------------------------
Becton, Dickinson & Co. 30,000 1,381,875
- ---------------------------------------------------------------
Boston Scientific Corp.(a) 22,500 1,023,750
- ---------------------------------------------------------------
Guidant Corp. 4,400 253,000
- ---------------------------------------------------------------
Stryker Corp. 23,000 855,313
- ---------------------------------------------------------------
Sybron International Corp.(a) 10,700 429,337
- ---------------------------------------------------------------
4,914,525
- ---------------------------------------------------------------
HOUSEHOLD FURNITURE & APPLIANCES-0.18%
Maytag Corp. 22,200 740,925
- ---------------------------------------------------------------
HOUSEHOLD PRODUCTS (NON-DURABLES)-0.36%
Dial Corp. 51,000 860,625
- ---------------------------------------------------------------
Procter & Gamble Co. (The) 9,000 612,000
- ---------------------------------------------------------------
1,472,625
- ---------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-0.38%
AFLAC Inc. 10,400 529,100
- ---------------------------------------------------------------
Conseco Inc. 18,000 785,250
- ---------------------------------------------------------------
Torchmark Corp. 6,000 239,250
- ---------------------------------------------------------------
1,553,600
- ---------------------------------------------------------------
INSURANCE (MULTI-LINE)-0.73%
Ace, Ltd. 13,900 1,291,831
- ---------------------------------------------------------------
Allmerica Financial Corp. 4,200 196,875
- ---------------------------------------------------------------
American International Group, Inc. 5,250 535,828
- ---------------------------------------------------------------
Travelers Group, Inc. 13,000 910,000
- ---------------------------------------------------------------
2,934,534
- ---------------------------------------------------------------
INSURANCE (PROPERTY-CASUALTY)-0.32%
Everest Reinsurance Holdings, Inc. 34,000 1,279,250
- ---------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-0.30%
Merrill Lynch & Co., Inc. 17,900 1,210,488
- ---------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
INVESTMENT MANAGEMENT-0.47%
Franklin Resources, Inc. 5,900 $ 530,263
- ---------------------------------------------------------------
T. Rowe Price Associates, Inc. 20,500 1,358,125
- ---------------------------------------------------------------
1,888,388
- ---------------------------------------------------------------
LODGING-HOTELS-0.51%
Doubletree Corp.(a) 8,700 362,137
- ---------------------------------------------------------------
ITT Corp. 22,500 1,680,469
- ---------------------------------------------------------------
2,042,606
- ---------------------------------------------------------------
MACHINERY (DIVERSIFIED)-0.76%
Caterpillar Inc. 16,000 820,000
- ---------------------------------------------------------------
Deere & Co. 21,000 1,105,125
- ---------------------------------------------------------------
Dover Corp. 17,000 1,147,500
- ---------------------------------------------------------------
3,072,625
- ---------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-0.96%
Carlisle Companies, Inc. 7,500 324,375
- ---------------------------------------------------------------
Eaton Corp. 16,000 1,546,000
- ---------------------------------------------------------------
Thermo Electron Corp.(a) 26,000 970,125
- ---------------------------------------------------------------
Tyco International Ltd. 16,000 604,000
- ---------------------------------------------------------------
U.S. Industries, Inc. 16,050 431,344
- ---------------------------------------------------------------
3,875,844
- ---------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-0.21%
U.S. Filter Corp.(a) 21,000 842,625
- ---------------------------------------------------------------
OIL & GAS (DRILLING & EQUIPMENT)-0.70%
Halliburton Co. 23,000 1,371,375
- ---------------------------------------------------------------
Nabors Industries, Inc.(a) 21,000 863,625
- ---------------------------------------------------------------
Schlumberger Ltd. 6,600 577,500
- ---------------------------------------------------------------
2,812,500
- ---------------------------------------------------------------
OIL (INTERNATIONAL INTEGRATED)-0.27%
Exxon Corp. 18,000 1,105,875
- ---------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.24%
Bowater, Inc. 23,000 961,688
- ---------------------------------------------------------------
PERSONAL CARE-0.66%
Avon Products, Inc. 19,400 1,270,700
- ---------------------------------------------------------------
Gillette Co.(The) 15,500 1,380,469
- ---------------------------------------------------------------
2,651,169
- ---------------------------------------------------------------
PHOTOGRAPHY/IMAGING-0.29%
Xerox Corp. 14,900 1,181,756
- ---------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST-0.21%
Starwood Lodging Trust 14,000 837,375
- ---------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-0.68%
CompUSA, Inc.(a) 39,500 1,293,625
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (COMPUTERS & ELECTRONICS)-(CONTINUED)
Tech Data Corp.(a) 33,000 $ 1,468,500
- ---------------------------------------------------------------
2,762,125
- ---------------------------------------------------------------
RETAIL (DEPARTMENT STORES)-0.90%
Fred Meyer, Inc.(a) 37,400 1,068,238
- ---------------------------------------------------------------
Federated Department Stores, Inc.(a) 26,000 1,144,000
- ---------------------------------------------------------------
Proffitt's, Inc.(a) 50,000 1,434,375
- ---------------------------------------------------------------
3,646,613
- ---------------------------------------------------------------
RETAIL (DRUG STORES)-0.55%
CVS Corp. 21,000 1,287,563
- ---------------------------------------------------------------
Rite Aid Corp. 16,000 950,000
- ---------------------------------------------------------------
2,237,563
- ---------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.73%
Kroger Co.(a) 50,000 1,631,250
- ---------------------------------------------------------------
Safeway, Inc.(a) 23,000 1,336,875
- ---------------------------------------------------------------
2,968,125
- ---------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-0.18%
Wal-Mart Stores, Inc. 20,900 734,113
- ---------------------------------------------------------------
RETAIL (SPECIALTY)-0.77%
Bed Bath & Beyond, Inc.(a) 25,000 793,750
- ---------------------------------------------------------------
Office Depot, Inc.(a) 64,000 1,320,000
- ---------------------------------------------------------------
Payless ShoeSource, Inc.(a) 17,700 986,775
- ---------------------------------------------------------------
3,100,525
- ---------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-0.26%
TJX Companies, Inc. (The) 35,000 1,036,875
- ---------------------------------------------------------------
SAVINGS & LOAN COMPANIES-0.58%
Ahmanson (H.F.) & Co. 25,000 1,475,000
- ---------------------------------------------------------------
Washington Mutual, Inc. 12,500 855,469
- ---------------------------------------------------------------
2,330,469
- ---------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-0.85%
HFS, Inc.(a) 21,000 1,480,500
- ---------------------------------------------------------------
Service Corp. International 64,800 1,972,350
- ---------------------------------------------------------------
3,452,850
- ---------------------------------------------------------------
SERVICES (DATA PROCESSING)-0.88%
Equifax, Inc. 36,000 1,118,250
- ---------------------------------------------------------------
First Data Corp. 26,000 755,625
- ---------------------------------------------------------------
Fiserv, Inc.(a) 14,100 630,975
- ---------------------------------------------------------------
National Data Corp. 29,000 1,071,188
- ---------------------------------------------------------------
3,576,038
- ---------------------------------------------------------------
SERVICES (EMPLOYMENT)-0.11%
AccuStaff, Inc.(a) 16,000 457,000
- ---------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)-0.69%
MCI Communications Corp. 45,000 $ 1,597,500
- ---------------------------------------------------------------
WorldCom, Inc.(a) 34,930 1,174,521
- ---------------------------------------------------------------
2,772,021
- ---------------------------------------------------------------
TELEPHONE-0.22%
Bell Atlantic Corp. 10,900 870,638
- ---------------------------------------------------------------
TOBACCO-0.25%
Philip Morris Companies, Inc. 25,000 990,625
- ---------------------------------------------------------------
WASTE MANAGEMENT-0.17%
USA Waste Services, Inc.(a) 19,000 703,000
- ---------------------------------------------------------------
Total Domestic Common Stocks 121,201,271
- ---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-60.34%
ARGENTINA-1.77%
Banco de Galicia y Buenos Aires
S.A. de C.V.-ADR (Banks-Regional) 45,609 1,105,305
- ---------------------------------------------------------------
Banco Rio de La Plata S.A.-ADR
(Banks-Money Center)(a) 75,000 787,500
- ---------------------------------------------------------------
Perez Companc S.A.-Class B (Oil
& Gas-Refining & Marketing) 311,717 1,952,530
- ---------------------------------------------------------------
Telefonica de Argentina S.A.-ADR
(Telephone) 43,300 1,217,812
- ---------------------------------------------------------------
YPF Sociedad Anonima-ADR
(Oil-International Integrated) 65,600 2,099,200
- ---------------------------------------------------------------
7,162,347
- ---------------------------------------------------------------
AUSTRALIA-0.72%
Boral Ltd. (Engineering & Construction) 369,000 970,527
- ---------------------------------------------------------------
Coca-Cola Amatil Ltd.
(Beverages-Non-Alcoholic) 115,510 869,187
- ---------------------------------------------------------------
QBE Insurance Group Ltd.- Bonus Shares
(Insurance-Property-Casualty)(a) 45,281 206,349
- ---------------------------------------------------------------
QBE Insurance Group Ltd.
(Insurance-Property-Casualty) 181,125 847,052
- ---------------------------------------------------------------
2,893,115
- ---------------------------------------------------------------
AUSTRIA-0.66%
OMV A.G. (Oil & Gas-Refining &
Marketing) 9,400 1,336,383
- ---------------------------------------------------------------
VA Technologie A.G. (Engineering
& Construction) 7,400 1,313,075
- ---------------------------------------------------------------
2,649,458
- ---------------------------------------------------------------
BELGIUM-0.86%
Barco Industries
(Manufacturing-Diversified) 5,700 1,099,549
- ---------------------------------------------------------------
COLRUYT S.A. (Retail-Food Chains) 1,100 590,116
- ---------------------------------------------------------------
UCB S.A.
(Manufacturing-Diversified) 520 1,796,790
- ---------------------------------------------------------------
3,486,455
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
BRAZIL-0.88%
Companhia Energetica de Minas
Gerais (Electric Companies) 31,000 $ 1,237,244
- ---------------------------------------------------------------
Telecomunicacoes Brasileiras
S.A.-Telebras-ADR (Telephone) 7,100 720,650
- ---------------------------------------------------------------
Uniao de Bancos Brasileiros
S.A.-GDR (Banks-Regional)(a) 58,800 1,602,300
- ---------------------------------------------------------------
3,560,194
- ---------------------------------------------------------------
CANADA-1.65%
Bank of Montreal (Banks-Money Center) 20,500 885,107
- ---------------------------------------------------------------
Canadian National Railway Co.
(Railroads) 8,800 474,650
- ---------------------------------------------------------------
Canadian Natural Resources Ltd.
(Oil & Gas-Exploration & Production)(a) 48,000 1,396,388
- ---------------------------------------------------------------
Magna International, Inc.-Class A
(Machinery-Diversified) 8,750 576,773
- ---------------------------------------------------------------
Northern Telecom Ltd.
(Communications Equipment) 4,200 376,688
- ---------------------------------------------------------------
Philip Services Corp.
(Waste Management)(a) 54,000 945,000
- ---------------------------------------------------------------
Suncor Energy, Inc.
(Oil-International Integrated) 56,000 2,016,532
- ---------------------------------------------------------------
6,671,138
- ---------------------------------------------------------------
CHILE-0.54%
Cia. de Telecomunicaciones de
Chile S.A.-ADR (Telephone) 30,600 849,150
- ---------------------------------------------------------------
Quinenco S.A.-ADR (Financial
Diversified)(a) 89,600 1,310,400
- ---------------------------------------------------------------
2,159,550
- ---------------------------------------------------------------
DENMARK-0.36%
Novo Nordisk A/S -Class B
(Health Care/Drugs-Generic & Other) 13,500 1,461,106
- ---------------------------------------------------------------
FINLAND-0.52%
Enso Oy-R Shares(Paper & Forest
Products) 96,000 911,149
- ---------------------------------------------------------------
Nokia Oy A.B.-Class A
(Telecommunications-Cellular/Wireless) 13,800 1,205,741
- ---------------------------------------------------------------
2,116,890
- ---------------------------------------------------------------
FRANCE-7.26%
Accor S.A. (Lodging-Hotels) 11,200 2,085,346
- ---------------------------------------------------------------
Alcatel Alsthom
(Manufacturing-Diversified) 17,000 2,051,229
- ---------------------------------------------------------------
AXA-UAP (Insurance-Multi-Line) 11,250 770,381
- ---------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 21,500 950,461
- ---------------------------------------------------------------
Cap Gemini Sogeti S.A.
(Computers- Software & Services) 27,000 2,143,804
- ---------------------------------------------------------------
Carrefour Supermarche S.A.
(Retail-Food Chains) 1,250 652,278
- ---------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FRANCE-(CONTINUED)
Compagnie Francaise d'Etudes et
de Construction Technip (Oil &
Gas-Refining & Marketing 13,000 $ 1,377,021
- ---------------------------------------------------------------
Elf Aquitaine S.A. (Oil &
Gas-Refining & Marketing) 13,500 1,671,044
- ---------------------------------------------------------------
Essilor International
(Manufacturing-Specialized) 2,200 587,353
- ---------------------------------------------------------------
Etablissements Economiques du
Casino Guichard-Perrachon
(Retail-Food Chains) 33,000 1,830,711
- ---------------------------------------------------------------
Lafarge S.A. (Engineering &
Construction) 23,800 1,487,023
- ---------------------------------------------------------------
Legrand S.A. (Housewares) 5,300 986,816
- ---------------------------------------------------------------
Pinault-Printemps-Redoute S.A.
(Retail-General Merchandise) 2,900 1,326,260
- ---------------------------------------------------------------
Promodes (Retail-Food Chains) 4,800 1,562,762
- ---------------------------------------------------------------
Renault S.A. (Automobiles)(a) 40,000 1,112,989
- ---------------------------------------------------------------
Rexel S.A. (Distributors-Food & Health) 2,600 689,637
- ---------------------------------------------------------------
Rhone-Poulenc-Class A
(Chemicals-Diversified) 46,500 2,027,435
- ---------------------------------------------------------------
Schneider S.A. (Housewares) 5,500 293,677
- ---------------------------------------------------------------
Societe BIC S.A. (Office
Equipment & Supplies) 20,000 1,368,179
- ---------------------------------------------------------------
Societe Generale (Banks-Major Regional) 8,000 1,095,653
- ---------------------------------------------------------------
Sodexho S.A.
(Services-Commercial & Consumer) 1,100 548,641
- ---------------------------------------------------------------
Total S.A.-Class B (Oil &
Gas-Refining & Marketing) 13,100 1,453,474
- ---------------------------------------------------------------
Valeo S.A. (Automobile Parts & Equipment) 19,400 1,293,838
- ---------------------------------------------------------------
29,366,012
- ---------------------------------------------------------------
GERMANY-3.76%
Adidas A.G. (Footwear) 7,200 1,042,993
- ---------------------------------------------------------------
Adidas A.G. (Footwear)(b)
(Acquired 04/11/97; Cost $963,943) 9,150 1,325,471
- ---------------------------------------------------------------
Allianz A.G.
(Insurance-Multi-Line) 4,000 891,805
- ---------------------------------------------------------------
Bayerische Vereinsbank A.G.
(Banks-Major Regional) 17,000 987,024
- ---------------------------------------------------------------
Commerzbank A.G. (Banks-Major Regional) 44,000 1,494,470
- ---------------------------------------------------------------
Continental A.G. (Automobile
Parts & Equipment) 29,600 706,337
- ---------------------------------------------------------------
Deutsche Bank A.G. (Banks-Major
Regional) 29,000 1,899,266
- ---------------------------------------------------------------
Dresdner Bank A.G. (Banks-Major
Regional) 36,000 1,473,568
- ---------------------------------------------------------------
Henkel KGaA
(Chemicals-Diversified) 7,500 389,729
- ---------------------------------------------------------------
Mannesmann A.G.
(Machinery-Diversified) 2,150 908,758
- ---------------------------------------------------------------
Merck KGaA (Health
Care/Drugs-Generic & Other) 26,000 964,612
- ---------------------------------------------------------------
SAP A.G. (Computers-Software & Services) 4,600 1,320,696
- ---------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GERMANY-(CONTINUED)
Schering A.G. (Health
Care/Drugs-Generic & Other) 8,000 $ 776,149
- ---------------------------------------------------------------
VEBA A.G. (Manufacturing-Diversified) 18,000 1,004,325
- ---------------------------------------------------------------
15,185,203
- ---------------------------------------------------------------
HONG KONG-2.94%
Asia Satellite
Telecommunications Holdings Ltd.-ADR(a)
(Telecommunication-Cellular/Wireless) 24,500 572,688
- ---------------------------------------------------------------
Asia Satellite
Telecommunications Holding Ltd.
(Telecommunications-Cellular/
Wireless) 232,000 558,132
- ---------------------------------------------------------------
Cheung Kong (Holdings) Ltd.
(Land Development) 86,000 597,879
- ---------------------------------------------------------------
China Telecom (Hong Kong) Ltd.-ADR
(Telecommunications-Cellular &
Wireless)(a) 31,900 1,032,763
- ---------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 1,294,000 1,506,305
- ---------------------------------------------------------------
First Pacific Company Ltd.
(Distributors-Food & Health) 1,323,000 834,201
- ---------------------------------------------------------------
Hong Kong & China Gas Co. Ltd.
(Natural Gas) 1,075,640 2,031,216
- ---------------------------------------------------------------
HSBC Holdings PLC (Banks-Major
Regional) 63,400 1,435,038
- ---------------------------------------------------------------
Hutchison Whampoa Ltd.
(Retail-Food Chains) 338,000 2,338,874
- ---------------------------------------------------------------
New World Infrastructure Ltd.
(Services-Commercial & Consumer)(a) 303,600 600,799
- ---------------------------------------------------------------
Sun Hung Kai Properties Ltd.
(Land Development) 53,600 395,163
- ---------------------------------------------------------------
11,903,058
- ---------------------------------------------------------------
INDONESIA-0.35%
Gulf Indonesia Resources Ltd.
(Oil-International Integrated)(a) 48,000 1,008,000
- ---------------------------------------------------------------
PT Indosat-ADR (Telephone) 9,050 214,372
- ---------------------------------------------------------------
PT Indosat (Telephone) 84,500 190,447
- ---------------------------------------------------------------
1,412,819
- ---------------------------------------------------------------
IRELAND-0.11%
Elan Corp. PLC-ADR (Health
Care/Drugs-Generic & Other)(a) 9,000 448,875
- ---------------------------------------------------------------
ISRAEL-0.17%
Teva Pharmaceutical Industries Ltd.-ADR
(Health Care/Drugs-Generic & Other) 14,500 677,875
- ---------------------------------------------------------------
ITALY-3.38%
Assicurazioni Generali
(Insurance/Multi-Line) 92,200 2,058,571
- ---------------------------------------------------------------
Credito Italiano S.p.A.
(Banks-Major Regional)(a) 1,040,000 2,783,981
- ---------------------------------------------------------------
Ente Nazionale Idrocarburi S.p.A.
(Oil & Gas-Refining & Marketing) 290,000 1,639,108
- ---------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ITALY-(CONTINUED)
Fiat S.p.A. (Automobiles) 566,500 $ 1,797,207
- ---------------------------------------------------------------
Istituto Mobiliare Italiano
S.p.A. (Banks-Major Regional) 138,000 1,249,091
- ---------------------------------------------------------------
Telecom Italia Mobile S.p.A.
(Telecommunications-Cellular/Wireless) 460,000 1,698,169
- ---------------------------------------------------------------
Telecom Italia S.p.A. (Telephone) 388,888 2,432,560
- ---------------------------------------------------------------
13,658,687
- ---------------------------------------------------------------
JAPAN-9.78%
Advantest Corp.
(Electronics-Instrumentation) 20,930 1,730,399
- ---------------------------------------------------------------
Bridgestone Corp. (Automobile
Parts & Equipment) 101,000 2,181,969
- ---------------------------------------------------------------
Canon, Inc. (Office Equipment &
Supplies) 97,000 2,353,469
- ---------------------------------------------------------------
Denso Corp. (Automobile Parts &
Equipment) 48,000 1,036,975
- ---------------------------------------------------------------
Fuji Photo Film Co.(Leisure
Time-Products) 61,000 2,209,888
- ---------------------------------------------------------------
Hitachi Cable, Ltd. (Metal Fabricators) 224,000 1,488,990
- ---------------------------------------------------------------
Honda Motor Co., Ltd. (Automobiles) 73,000 2,456,585
- ---------------------------------------------------------------
Hoya Corp.(Manufacturing-Specialized) 39,000 1,354,549
- ---------------------------------------------------------------
Ibiden Co., Ltd.
(Electronics-Component Distributors) 144,000 2,393,020
- ---------------------------------------------------------------
Kyocera Corp.
(Electronics-Component Distributors) 13,000 744,246
- ---------------------------------------------------------------
Matsushita Electric Industrial
Co. Ltd. (Electric Equipment) 61,000 1,023,847
- ---------------------------------------------------------------
Minebea Company Ltd.
(Electronics-Component Distributors) 193,000 1,924,387
- ---------------------------------------------------------------
Murata Manufacturing Co., Ltd.
(Electronics-Components Distributors) 46,000 1,865,227
- ---------------------------------------------------------------
Nippon Telegraph & Telephone
Corp. (Telephone) 2,500 2,118,820
- ---------------------------------------------------------------
Nippon Television Network
(Broadcasting-Television, Radio
& Cable) 2,050 729,040
- ---------------------------------------------------------------
NTT Data Communications Systems
Co. (Computers-Software & Services) 470 2,245,534
- ---------------------------------------------------------------
Ricoh Corp. Ltd. (Office
Equipment & Supplies) 124,000 1,597,009
- ---------------------------------------------------------------
Rohm Co. Ltd.
(Electronics-Component Distributors) 29,000 2,867,470
- ---------------------------------------------------------------
SMC Corp.(Machinery-Diversified) 6,800 587,620
- ---------------------------------------------------------------
Sony Corp. (Electronics-Component
Distributors) 30,000 2,490,237
- ---------------------------------------------------------------
TDK Corp. (Electronic Equipment) 31,000 2,570,669
- ---------------------------------------------------------------
Tokyo Electron Ltd. (Electronic
Semiconductors) 31,600 1,575,405
- ---------------------------------------------------------------
39,545,355
- ---------------------------------------------------------------
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEXICO-3.67%
Cifra S.A. de C.V.
(Retail-General Merchandise) 1,009,000 $ 1,744,842
- ---------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages- Non-Alcoholic) 52,400 2,263,025
- ---------------------------------------------------------------
Fomento Economico Mexicano, S.A.
de C.V.-Class B (Beverages-Alcoholic) 384,050 2,702,320
- ---------------------------------------------------------------
Grupo Industrial Maseca S.A. de
CV-Class B (Foods) 807,600 780,150
- ---------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 67,700 2,098,700
- ---------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de C.V.-
Class A (Paper & Forest Products) 483,400 2,118,658
- ---------------------------------------------------------------
Panamerican Beverages, Inc.-Class A
(Beverages-Non-Alcoholic) 86,300 2,675,300
- ---------------------------------------------------------------
TV Azteca, S.A. de C.V.-ADR
(Broadcasting-Television,
Radio & Cable)(a) 24,200 462,825
- ---------------------------------------------------------------
14,845,820
- ---------------------------------------------------------------
NETHERLANDS-4.32%
Akzo Nobel N.V.
(Chemicals-Diversified) 6,500 1,145,326
- ---------------------------------------------------------------
ASM Lithography Holding N.V.
(Machinery- Diversified)(a) 5,700 413,958
- ---------------------------------------------------------------
CMG PLC (Computers-Software &
Services) 61,700 1,452,326
- ---------------------------------------------------------------
Getronics N.V.
(Computers-Software & Services) 41,000 1,353,644
- ---------------------------------------------------------------
Koninklijke Ahold N.V.
(Retail-Food Chains) 30,600 783,322
- ---------------------------------------------------------------
Koninklijke Nutricia Verenigde
Bedrijven N.V. (Foods) 26,000 743,240
- ---------------------------------------------------------------
Koninklijke Pakhoed N.V. (Shipping) 27,500 900,850
- ---------------------------------------------------------------
Oce-Van Der Grinten N.V. (Office
Equipment & Supplies) 7,000 798,609
- ---------------------------------------------------------------
Philips Electronics N.V.
(Household Furniture & Appliances)(a) 32,000 2,505,279
- ---------------------------------------------------------------
Randstad Holdings N.V.
(Services-Commercial & Consumer) 44,500 1,776,333
- ---------------------------------------------------------------
Royal Dutch Petroleum Co.
(Oil-International Integrated) 26,400 1,396,487
- ---------------------------------------------------------------
Stork N.V.
(Manufacturing-Diversified) 24,000 1,038,372
- ---------------------------------------------------------------
Vendex International N.V.
(Retail-General Merchandise) 38,000 2,074,685
- ---------------------------------------------------------------
Verenigde Nederlandse
Uitgeversbedrijven Verenigd
Bezit (Publishing) 15,500 367,242
- ---------------------------------------------------------------
Wolters Kluwer N.V. (Specialty
Printing) 5,700 699,912
- ---------------------------------------------------------------
17,449,585
- ---------------------------------------------------------------
NORWAY-0.32%
Petroleum Geo-Services A.S.A.
(Oil-International Integrated)(a) 18,800 1,296,013
- ---------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
PHILIPPINES-0.26%
Metro Pacific Corp.
(Manufacturing-Diversified)(a) 3,070,970 $ 204,443
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Co. (Telephone) 16,460 406,276
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Co.-ADR (Telephone) 17,800 431,650
- ---------------------------------------------------------------
1,042,369
- ---------------------------------------------------------------
PORTUGAL-0.64%
Electricidade de Portugal,
S.A.-ADR (Electric Companies)(a) 24,200 845,488
- ---------------------------------------------------------------
Portugal Telecom S.A. (Telephone) 42,000 1,723,230
- ---------------------------------------------------------------
2,568,718
- ---------------------------------------------------------------
SINGAPORE-0.47%
City Developments Ltd. (Land
Development) 129,000 540,571
- ---------------------------------------------------------------
DBS Land Ltd. (Land Development) 507,000 862,705
- ---------------------------------------------------------------
Overseas Union Bank Ltd.
(Banks-Major Regional) 150,000 500,000
- ---------------------------------------------------------------
1,903,276
- ---------------------------------------------------------------
SPAIN-1.42%
Banco Bilbao Vizcaya, S.A.
(Banks-Major Regional) 73,500 1,965,457
- ---------------------------------------------------------------
Endesa S.A. (Electric Companies) 73,200 1,378,758
- ---------------------------------------------------------------
Iberdrola S.A. (Electric Companies) 60,000 717,674
- ---------------------------------------------------------------
Telefonica de Espana (Telephone) 62,000 1,692,033
- ---------------------------------------------------------------
5,753,922
- ---------------------------------------------------------------
SWEDEN-1.44%
Electrolux A.B. (Household
Furniture & Appliances)(a) 27,000 2,235,010
- ---------------------------------------------------------------
Hennes & Mauritz A.B.-Class B
(Retail-Specialty-Apparel) 51,500 2,107,471
- ---------------------------------------------------------------
Sparbanken Sverige A.B.-Class A
(Banks-Major Regional) 46,000 1,044,073
- ---------------------------------------------------------------
Telefonaktiebolaget LM
Ericsson-ADR (Communications
Equipment) 10,000 442,500
- ---------------------------------------------------------------
5,829,054
- ---------------------------------------------------------------
SWITZERLAND-2.59%
Adecco S.A. (Services-Commercial
& Consumer) 5,000 1,589,002
- ---------------------------------------------------------------
Ciba Specialty Chemicals A.G.
(Chemicals-Specialty)(a) 11,000 1,080,164
- ---------------------------------------------------------------
Clariant A.G. (Chemicals-Specialty) 1,650 1,269,095
- ---------------------------------------------------------------
Credit Suisse Group (Banks-Major
Regional) 14,500 2,042,582
- ---------------------------------------------------------------
Holderbank Financiere Glarus
A.G.-Class B
(Construction-Cement & Aggregates) 1,050 845,099
- ---------------------------------------------------------------
Nestle S.A. (Foods) 680 958,143
- ---------------------------------------------------------------
Novartis A.G. (Health Care-Diversified) 1,060 1,660,118
- ---------------------------------------------------------------
</TABLE>
10
<PAGE> 13
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWITZERLAND-(CONTINUED)
Zurich Versicherungs-Gesellschaft
(Insurance-Multi-Line) 2,500 $ 1,031,958
- ---------------------------------------------------------------
10,476,161
- ---------------------------------------------------------------
UNITED KINGDOM-9.50%
Airtours PLC (Services-Commercial &
Consumer) 71,900 1,423,437
- ---------------------------------------------------------------
Barclays PLC (Banks-Major Regional) 18,500 463,403
- ---------------------------------------------------------------
Blue Circle Industries PLC
(Construction-Cement & Aggregates) 55,000 322,967
- ---------------------------------------------------------------
Bodycote International PLC
(Chemicals-Specialty) 71,000 1,230,512
- ---------------------------------------------------------------
British Aerospace PLC
(Aerospace/Defense) 64,000 1,698,688
- ---------------------------------------------------------------
British Petroleum Co. PLC (Oil &
Gas-Refining & Marketing) 62,000 911,220
- ---------------------------------------------------------------
Compass Group PLC (Services
Commercial & Consumer) 59,200 631,196
- ---------------------------------------------------------------
Dixons Group PLC
(Retail-Specialty) 200,000 2,338,784
- ---------------------------------------------------------------
EMAP PLC (Publishing) 51,000 732,011
- ---------------------------------------------------------------
General Electric Co. PLC
(Manufacturing-Diversified) 316,500 2,021,812
- ---------------------------------------------------------------
GKN PLC (Manufacturing-Diversified) 39,000 874,829
- ---------------------------------------------------------------
Granada Group PLC (Leisure Time-
Products) 61,400 846,774
- ---------------------------------------------------------------
Hays PLC (Services Commercial &
Consumer) 178,000 2,090,477
- ---------------------------------------------------------------
Kingfisher PLC
(Retail-Department Stores) 140,000 2,015,313
- ---------------------------------------------------------------
Ladbroke Group PLC (Leisure
Time-Products) 382,000 1,711,204
- ---------------------------------------------------------------
Lloyds TSB Group PLC
(Banks-Major Regional) 96,000 1,199,927
- ---------------------------------------------------------------
Misys PLC (Services-Commercial &
Consumer) 45,000 1,134,369
- ---------------------------------------------------------------
Next PLC (Retail-General Merchandise) 77,000 917,226
- ---------------------------------------------------------------
Nycomed Amersham PLC (Health
Care/Drugs-Generic & Other) 37,000 1,423,109
- ---------------------------------------------------------------
Pearson PLC (Specialty Printing) 70,000 916,051
- ---------------------------------------------------------------
Provident Financial PLC
(Consumer Finance) 137,400 1,590,608
- ---------------------------------------------------------------
Railtrack Group PLC (Shipping) 100,000 1,598,896
- ---------------------------------------------------------------
Rentokil Initial PLC
(Services-Commercial & Consumer) 240,000 966,384
- ---------------------------------------------------------------
Royal & Sun Alliance Insurance
Group PLC (Insurance-Multi-Line) 50,000 479,417
- ---------------------------------------------------------------
Siebe PLC (Electronics-Component
Distributors) 75,000 1,440,768
- ---------------------------------------------------------------
SmithKline Beecham PLC-ADR
(Health Care/Drugs-Major
Pharmaceuticals) 13,000 619,125
- ---------------------------------------------------------------
Smiths Industries PLC
(Machinery- Diversified) 30,000 435,376
- ---------------------------------------------------------------
Tarmac PLC (Engineering &
Construction) 1,244,000 2,421,060
- ---------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Unilever PLC (Foods) 224,000 $ 1,668,623
- ---------------------------------------------------------------
Vodafone Group PLC
(Telecommunications-Cellular/Wireless) 150,000 817,903
- ---------------------------------------------------------------
WPP Group PLC
(Services-Advertising/Marketing) 316,000 1,444,711
- ---------------------------------------------------------------
38,386,180
- ---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests 243,909,235
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
DOMESTIC CONVERTIBLE PREFERRED
STOCKS-0.27%
FINANCIAL (DIVERSIFIED)-0.27%
MGIC Investment Corp.-$3.12
Conv. Pfd. 7,000 714,000
- ---------------------------------------------------------------
SunAmerica, Inc.-Series E, $3.10
Conv. Pfd. 3,300 384,450
- ---------------------------------------------------------------
Total Domestic Convertible
Preferred Stocks 1,098,450
- ---------------------------------------------------------------
NON-U.S. DOLLAR DENOMINATED
NON-CONVERTIBLE PREFERRED STOCKS-1.03%
BRAZIL-0.69%
Petroleo Brasileiro S.A.-Petrobras
(Oil & Gas-Exploration & Production) 5,416 1,007,009
- ---------------------------------------------------------------
Telecomunicacoes de Sao Paulo
S.A.-TELESP (Telephone) 6,900 1,802,531
- ---------------------------------------------------------------
2,809,540
- ---------------------------------------------------------------
GERMANY-0.34%
SAP A.G. (Computers-Software & Services) 4,600 1,371,440
- ---------------------------------------------------------------
Total Non-U.S. Dollar Denominated
Non-Convertible Preferred Stocks 4,180,980
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT(c)
<S> <C> <C>
U.S. DOLLAR DENOMINATED FOREIGN
BONDS & NOTES-0.46%
GERMANY-0.39%
Volkswagen International Finance
N.V., (Automobiles) Conv. Gtd.
Notes, 3.00%, 01/24/02 $ 1,330,000 1,566,075
- ---------------------------------------------------------------
HONG KONG-0.07%
New World Infrastructure Ltd.
(Services-Commercial &
Consumer), Conv. Bonds 5.00%,
07/15/01 100,000 94,500
- ---------------------------------------------------------------
New World Infrastructure Ltd.
(Services-Commercial & Consumer),
Conv. Bonds 5.00%, 07/15/01(b)
(Acquired 4/10/97-4/11/97; Cost
$234,938) 200,000 189,000
- ---------------------------------------------------------------
283,500
- ---------------------------------------------------------------
Total U.S. Dollar
Denominated Foreign Bonds & Notes 1,849,575
- ---------------------------------------------------------------
</TABLE>
11
<PAGE> 14
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT(c) VALUE
<S> <C> <C>
NON-U.S. DOLLAR DENOMINATED
FOREIGN BONDS & NOTES-0.74%
FRANCE-0.18%
AXA-UAP (Insurance-Multi-Line),
Conv. Sr. Deb., 4.50%,
01/01/99 FRF $ 2,835,000 $ 750,741
- ---------------------------------------------------------------
ITALY-0.38%
Pirelli S.p.A., (Electrical
Equipment), Conv. Bonds,
4.375%, 12/31/98 ITL 1,591,686,200 1,527,756
- ---------------------------------------------------------------
JAPAN-0.18%
Ricoh Co., Ltd. (Office
Equipment & Supplies), Conv.
Bonds, 0.35%, 03/31/03 JPY 65,000,000 715,621
- ---------------------------------------------------------------
Total Non-U.S. Dollar
Denominated Foreign Bonds
& Notes 2,994,118
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT(c) VALUE
<S> <C> <C>
U.S. TREASURY BILLS-2.95%(d)
5.093%, 01/02/1998 $ 12,000,000(e)$ 11,904,240
- ---------------------------------------------------------------
REPURCHASE AGREEMENT-0.10%(f)
Sanua Securities (USA) L.P.,
5.73%, 11/03/97(g) 398,411 398,411
- ---------------------------------------------------------------
TOTAL INVESTMENTS-95.87% 387,536,280
- ---------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-4.13% 16,704,462
- ---------------------------------------------------------------
NET ASSETS-100.00% $404,240,742
===============================================================
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
Conv. -- Convertible
Deb. -- Debentures
FRF -- French Franc
GDR -- Global Depository Receipt
Gtd. -- Guaranteed
ITL -- Italian Lire
JPY -- Japanese Yen
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 the securities at 10/31/97 was $1,514,471 which
represented 0.37% of the Fund's net assets.
(c) Principal in U. S. Dollars unless otherwise indicated.
(d) U.S. Treasury Bills are traded on a discount basis. In such cases the
interest rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
(e) A portion of the principal balance was pledged as collateral to cover margin
requirements for open futures contracts. See Note 7.
(f) 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 investment in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or it affiliates.
(g) Joint repurchase agreement entered into 10/31/97 with a maturing value of
$200,095,500. Collateralized by $201,314,000 U.S. Government obligations, 0%
to 8.875% due 11/03/97 to 08/15/27 with an aggregate market value at
10/31/97 of $204,000,545.
See Notes to Financial Statements.
12
<PAGE> 15
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$327,440,754) $ 387,536,280
- --------------------------------------------------------
Foreign currencies, at market value
(cost $7,633,284) 7,667,754
- --------------------------------------------------------
Receivables for:
Investments sold 12,950,025
- --------------------------------------------------------
Capital stock sold 4,700,631
- --------------------------------------------------------
Dividends and interest 668,936
- --------------------------------------------------------
Variation margin 271,700
- --------------------------------------------------------
Investment for deferred compensation
plan 11,215
- --------------------------------------------------------
Other assets 23,824
- --------------------------------------------------------
Total assets 413,830,365
- --------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 6,828,079
- --------------------------------------------------------
Capital stock reacquired 1,962,826
- --------------------------------------------------------
Deferred compensation 11,215
- --------------------------------------------------------
Accrued advisory fees 308,513
- --------------------------------------------------------
Accrued administrative services fees 9,966
- --------------------------------------------------------
Accrued distribution fees 281,782
- --------------------------------------------------------
Accrued transfer agent fees 70,776
- --------------------------------------------------------
Accrued operating expenses 116,466
- --------------------------------------------------------
Total liabilities 9,589,623
- --------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING $ 404,240,742
========================================================
NET ASSETS:
Class A $ 178,916,560
========================================================
Class B $ 224,224,631
========================================================
Class C $ 1,099,551
========================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- --------------------------------------------------------
Outstanding 10,747,564
========================================================
Class B:
Authorized 200,000,000
- --------------------------------------------------------
Outstanding 13,684,612
========================================================
Class C:
Authorized 200,000,000
- --------------------------------------------------------
Outstanding 67,094
========================================================
Class A:
Net asset value and redemption price
per share $ 16.65
========================================================
Offering price per share:
(Net asset value $16.65
divided by 95.25%) $ 17.48
========================================================
Class B:
Net asset value and offering price per
share $ 16.39
========================================================
Class C:
Net asset value and offering price per
share $ 16.39
========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $505,201 foreign
withholding tax) $ 4,455,134
- --------------------------------------------------------
Interest 506,016
- --------------------------------------------------------
Total investment income 4,961,150
- --------------------------------------------------------
EXPENSES:
Advisory fees 2,895,282
- --------------------------------------------------------
Administrative services fees 87,673
- --------------------------------------------------------
Custodian fees 284,017
- --------------------------------------------------------
Directors' fees 10,557
- --------------------------------------------------------
Distribution fees -- Class A 778,588
- --------------------------------------------------------
Distribution fees -- Class B 1,847,507
- --------------------------------------------------------
Distribution fees -- Class C 1,532
- --------------------------------------------------------
Transfer agent fees -- Class A 334,050
- --------------------------------------------------------
Transfer agent fees -- Class B 480,075
- --------------------------------------------------------
Transfer agent fees -- Class C 343
- --------------------------------------------------------
Other 263,588
- --------------------------------------------------------
Total expenses 6,983,212
- --------------------------------------------------------
Less: Expenses paid indirectly (8,327)
- --------------------------------------------------------
Net expenses 6,974,885
- --------------------------------------------------------
Net investment income (loss) (2,013,735)
- --------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCIES
AND FUTURES CONTRACTS:
Net realized gain (loss) on sales of:
Investment securities 12,314,226
- --------------------------------------------------------
Foreign currencies (418,972)
- --------------------------------------------------------
11,895,254
- --------------------------------------------------------
Net unrealized appreciation of:
Investment securities 37,009,027
- --------------------------------------------------------
Foreign currencies 12,676
- --------------------------------------------------------
Futures contracts 51,000
- --------------------------------------------------------
37,072,703
- --------------------------------------------------------
Net gain on investment securities, foreign
currencies and futures contracts 48,967,957
- --------------------------------------------------------
Net increase in net assets resulting from
operations $46,954,222
========================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE> 16
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (2,013,735) $ (548,400)
- -------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities
and foreign currencies 11,895,254 (604,088)
- -------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities,
foreign currencies and futures contracts 37,072,703 20,032,132
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 46,954,222 18,879,644
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A - (516,173)
- -------------------------------------------------------------------------------------------
Class B - (413,018)
- -------------------------------------------------------------------------------------------
Share transactions-net:
Class A 41,376,928 81,693,730
- -------------------------------------------------------------------------------------------
Class B 77,933,131 96,263,897
- -------------------------------------------------------------------------------------------
Class C 1,157,289 -
- -------------------------------------------------------------------------------------------
Net increase in net assets 167,421,570 195,908,080
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 236,819,172 40,911,092
- -------------------------------------------------------------------------------------------
End of period $404,240,742 $ 236,819,172
===========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $334,919,809 $ 214,452,461
- -------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (14,582) 7,538
- -------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of
investment securities, foreign currencies and futures
contracts 9,241,432 (662,207)
- -------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and futures contracts 60,094,083 23,021,380
- -------------------------------------------------------------------------------------------
$404,240,742 $ 236,819,172
===========================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1997
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Growth Fund (the "Fund") is an investment portfolio of AIM
International Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company consisting of four operating
series portfolios: AIM Global Growth Fund, AIM Global Aggressive 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.
Class C shares commenced sales on August 4, 1997. Matters affecting each
portfolio or class are voted on exclusively by the shareholders of such
portfolio or class. The assets, liabilities and operations of each portfolio are
accounted for separately. Information presented in these financial statements
pertains only to the Fund. The Fund's investment objective is to provide
long-term growth of capital. The Fund seeks to achieve its objectives by
investing in a portfolio of global equity securities of selected companies which
are considered by AIM to have strong earnings momentum.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. Security Valuations--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.
14
<PAGE> 17
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 an independent pricing
service may be determined without exclusive reliance on quoted prices, and
may reflect appropriate factors such as yield, type of issue, coupon rate and
maturity date. Securities for which market quotations are either not readily
available or are questionable are valued at fair value as determined in good
faith by or under the supervision of the Company's officers in a manner
specifically authorized by the Board of Directors. Investments with
maturities of 60 days or less are valued on the basis of amortized cost which
approximates market value. Generally, trading in foreign securities is
substantially completed each day at various times prior to the close of the
New York Stock Exchange. The values of such securities used in computing the
net asset value of the Fund's shares are determined as of such times. Foreign
currency exchange rates are also generally determined prior to the close of
the New York Stock Exchange. Occasionally, events affecting the values of
such securities and such exchange rates may occur between the times at which
they are determined and the close of the New York Stock Exchange which will
not be reflected in the computation of the Fund's net asset value. If events
materially affecting the value of such securities occur during such period,
then these securities will be valued at their fair value as determined in
good faith by or under the supervision of the Board of Directors.
B. Foreign Currency Translations--Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions.
C. Foreign Currency Contracts--A 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 forward currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
D. Securities Transactions, Investment Income and Distribu-
tions--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. On October 31, 1997,
undistributed net investment income was increased by $1,991,615 and
undistributed net realized gains was decreased by $1,991,615 in order to
comply with the requirements of the American Institute of Certified Public
Accountants Statement of Position 93-2. Net assets of the Fund were
unaffected by the reclassifications discussed above.
E. Federal Income Taxes--The Fund intends to comply with the requirements of the
Internal Revenue Code necessary to qualify as a regulated investment company
and, as such, will not be subject to federal income taxes on otherwise
taxable income (including net realized capital gains) which is distributed to
shareholders. Therefore, no provision for federal income taxes is recorded in
the financial statements.
F. Stock Index Futures Contracts--The Fund may purchase or sell stock index
futures contracts as a hedge against changes in market conditions. Initial
margin deposits required upon entering into futures contracts are satisfied
by the segregation of specific securities as collateral for the account of
the broker (the Fund's agent in acquiring the futures position). During the
period the futures contracts are open, changes in the value of the contracts
are recognized as unrealized gains or losses by "marking to market" on a
daily basis to reflect the market value of the contracts at the end of each
day's trading. Variation margin payments are made or received depending upon
whether unrealized gains or losses are incurred. When the contracts are
closed, the Fund recognizes a realized gain or loss equal to the difference
between the proceeds from, or cost of, the closing transaction and the Fund's
basis in the contract. Risks include the possibility of an illiquid market
and that a change in the value of contracts may not correlate with changes in
the value of the securities being hedged.
G. Expenses - 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 between 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 0.85% of
the first $1 billion of the Fund's average daily net assets, plus 0.80% of the
Fund's average daily net assets in excess of $1 billion.
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 year ended October 31, 1997, AIM was
reimbursed $87,673 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency
services to the Fund. During the year ended October 31, 1997, AFS was paid
$479,472 for such services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor of 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 (the "Class A Plan"), the Fund's Class B shares (the "Class B Plan"),
and the Fund's Class C shares (the "Class C Plan") (collectively, the "Plans").
The Fund, pursuant to the Plan, pays AIM Distribu-
15
<PAGE> 18
tors compensation at the annual rate of 0.50% of the average daily net assets of
Class A shares and 1.00% of the average daily net assets of Class C shares. The
Plan is designed to compensate AIM Distributors for certain promotional and
other sales related costs, and to implement a dealer incentive program which
provides for periodic payments to selected dealers who furnish continuing
personal shareholder services to their customers who purchase and own Class A or
Class C shares of the Fund. The Fund, pursuant to the Class B Plan, pays AIM
Distributors at an annual rate of 1.00% of the average daily net assets
attributable to the Class B shares. Of this amount, the Fund pays a service fee
of 0.25% of the average daily net assets of the Class B shares to selected
dealers and financial institutions who furnish continuing personal shareholder
services to their customers who purchase and own Class B shares of the Fund. Any
amounts not paid as a service fee under such Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges, that may be paid by the respective
classes. AIM Distributors may, from time to time, assign, transfer or pledge to
one or more designees, its rights to all or a designated portion of (a)
compensation received by AIM Distributors from the Fund pursuant to the Class B
Plan (but not AIM Distributors' duties and obligations pursuant to the Class B
Plan) and (b) any contingent deferred sales charges received by AIM Distributors
related to the Class B shares. During the year ended October 31, 1997 for the
Class A shares and Class B shares and the period August 4, 1997 (date sales
commenced) through October 31, 1997, the respective classes paid AIM
Distributors $778,588, $1,847,507 and $1,532, as compensation under the Plans.
AIM Distributors received commissions of $286,414 from the sales of the Class
A shares of the Fund during the year ended October 31, 1997. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the year ended October 31,
1997, AIM Distributors received commissions of $25,870 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 year ended October 31, 1997, the Fund incurred legal fees of $4,793
for services rendered by the law firm of Kramer, Levin, Naftalis & Frankel as
counsel to the Company's directors. A member of that firm is a director of the
Company.
NOTE 3-INDIRECT EXPENSES
AIM has directed certain portfolio trades to brokers who paid a portion of the
Fund's expenses related to pricing services used by the Fund which reduced the
Fund's expenses by $1,382 during the year ended October 31, 1997. The Fund also
received reductions in transfer agency fees from AFS (an affiliate of AIM) and
reductions in custodian fees of $4,390 and $2,555, respectively, under expense
offset arrangements. The effect of the above arrangements resulted in a
reduction of the Fund's total expenses of $8,327 during the year ended October
31, 1997.
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.
Prior to an amendment of the line of credit on July 15, 1997, the Fund was
limited to borrowing up to the lessor of (i) $325,000,000 or (ii) the limit set
by its prospectus for borrowings. During the year ended October 31, 1997, the
Fund did not borrow under the line of credit agreement. The funds which are
party to the line of credit are charged a commitment fee of 0.05% 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.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the year ended October 31, 1997 was
$410,474,400 and $315,085,765, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of October 31, 1997 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 72,845,545
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (13,799,402)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 59,046,143
- ---------------------------------------------------------
</TABLE>
Cost of investments for tax purposes is $328,490,137.
NOTE 7-FUTURES CONTRACTS
On October 31, 1997, $506,000 principal amount of U.S. Treasury obligations were
pledged as collateral to cover margin requirements for open futures contracts.
Open futures contracts were as follows:
<TABLE>
<CAPTION>
NO. OF MONTH/ UNREALIZED
CONTRACT CONTRACTS COMMITMENT APPRECIATION
-------- --------- ---------- ------------
<S> <C> <C> <C>
S&P 500 Index 26 Dec. '97 $ 51,000
</TABLE>
16
<PAGE> 19
NOTE 8-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the years ended October
31, 1997 and 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
-------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 6,399,974 $103,567,757 7,117,057 $ 94,636,553
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
Class B 6,303,261 98,414,198 7,683,810 101,786,913
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
Class C* 67,094 1,157,289 - -
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
Issued as reinvestment of distributions:
Class A - - 36,930 453,130
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
Class B - - 31,124 379,711
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
Reacquired:
Class A (3,750,438) (62,190,829) (983,830) (13,395,953)
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
Class B (1,291,769) (20,481,067) (441,521) (5,902,727)
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
Class C* - - - -
- ------------------------------------------------------------ ---------- ------------ ----------- ------------
7,728,122 $120,467,348 13,443,570 $177,957,627
============================================================ ========== ============ =========== ============
</TABLE>
* Class C shares commenced sales on August 4, 1997.
NOTE 9-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A capital stock
and a share of Class B capital stock outstanding during each of the years in the
three-year period ended October 31, 1997 and the period September 15, 1994 (date
operations commenced) through October 31, 1994 and for a share of Class C
capital stock outstanding during the period August 4, 1997 (date sales
commenced) through October 31, 1997.
<TABLE>
<CAPTION>
1997 1996 1995 1994
-------- --------- -------- --------
<S> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 14.20 $ 12.32 $ 10.23 $ 10.00
- ------------------------------------------------------------ -------- --------- -------- --------
Income from investment operations:
Net investment income (loss) (0.04) (0.01) (0.02) -
- ------------------------------------------------------------ -------- --------- -------- --------
Net gains on securities (both realized and unrealized) 2.49 2.11 2.11 0.23
- ------------------------------------------------------------ -------- --------- -------- --------
Total from investment operations 2.45 2.10 2.09 0.23
- ------------------------------------------------------------ -------- --------- -------- --------
Less distributions:
Dividends from net investment income - - (0.004) -
- ------------------------------------------------------------ -------- --------- -------- --------
Distributions from net realized gains - (0.22) - -
- ------------------------------------------------------------ -------- --------- -------- --------
Total distributions - (0.22) (0.004) -
- ------------------------------------------------------------ -------- --------- -------- --------
Net asset value, end of period $ 16.65 $ 14.20 $ 12.32 $ 10.23
============================================================ ======== ========= ======== ========
Total return(a) 17.25% 17.26% 20.48% 2.30%
============================================================ ======== ========= ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $178,917 $ 114,971 $ 23,754 $ 3,093
============================================================ ======== ========= ======== ========
Ratio of expenses to average net assets(b) 1.76%(c)(d) 1.93% 2.12% 1.95%(e)
============================================================ ======== ========= ======== ========
Ratio of net investment income (loss) to average net
assets(f) (0.30)%(c) (0.13)% (0.28)% 0.10%(e)
============================================================ ======== ========= ======== ========
Portfolio turnover rate 96% 82% 79% 6%
============================================================ ======== ========= ======== ========
Average brokerage commission rate paid(g) $ 0.0239 $ 0.0234 N/A N/A
============================================================ ======== ========= ======== ========
</TABLE>
(a) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(b) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.94%, 2.98% and 5.67% (annualized) for the periods 1996-1994, respectively.
(c) Ratios are based on average net assets of $155,717,515.
(d) Ratio includes expenses paid indirectly. Excluding expenses paid indirectly,
the ratio of expenses to average net assets would have been the same.
(e) Annualized.
(f) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.14)%, (1.14)% and (3.63)% (annualized) for the
periods 1996-1994, respectively.
(g) 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.
17
<PAGE> 20
<TABLE>
<CAPTION>
1997 1996 1995 1994
--------- -------- -------- --------
<S> <C> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 14.05 $ 12.26 $ 10.22 $ 10.00
- ------------------------------------------------------------ --------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.11) (0.05) (0.04) -
- ------------------------------------------------------------ --------- -------- -------- --------
Net gains on securities (both realized and unrealized) 2.45 2.06 2.08 0.22
- ------------------------------------------------------------ --------- -------- -------- --------
Total from investment operations 2.34 2.01 2.04 0.22
- ------------------------------------------------------------ --------- -------- -------- --------
Less distributions:
Distributions from net realized gains - (0.22) - -
- ------------------------------------------------------------ --------- -------- -------- --------
Total distributions - (0.22) - -
- ------------------------------------------------------------ --------- -------- -------- --------
Net asset value, end of period $ 16.39 $ 14.05 $ 12.26 $ 10.22
=========================================================== ========= ======== ======== ========
Total return(a) 16.65% 16.60% 19.96% 2.20%
=========================================================== ========= ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 224,225 $121,848 $ 17,157 $ 1,277
=========================================================== ========= ======== ======== ========
Ratio of expenses to average net assets(b) 2.29%(c)(d) 2.48% 2.64% 2.51%(e)
=========================================================== ========= ======== ======== ========
Ratio of net investment income (loss) to average net
assets(f) (0.83)%(c) (0.69)% (0.79)% (0.47)%(e)
=========================================================== ========= ======== ======== ========
Portfolio turnover rate 96% 82% 79% 6%
=========================================================== ========= ======== ======== ========
Average brokerage commission rate paid(g) $ 0.0239 $ 0.0234 N/A N/A
=========================================================== ========= ======== ======== ========
</TABLE>
(a) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(b) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
2.49%, 3.38% and 6.20% (annualized) for the periods 1996-1994, respectively.
(c) Ratios are based on average net assets of $184,750,715.
(d) Ratio includes indirectly paid expenses. Excluding indirectly paid expenses,
the ratio of expenses to average net assets would have been the same.
(e) Annualized.
(f) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.69)%, (1.54)% and (4.16)% (annualized) for the
periods 1996-1994, respectively.
(g) 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>
1997
CLASS C: -------
<S> <C>
Net asset value, beginning of period $ 17.39
- ------------------------------------------------------------ -------
Income from investment operations:
Net investment income (loss) (0.03)
- ------------------------------------------------------------ -------
Net gains (losses) on securities (both realized and
unrealized) (0.97)
- ------------------------------------------------------------ -------
Total from investment operations (1.00)
- ------------------------------------------------------------ -------
Net asset value, end of period $ 16.39
============================================================ =======
Total return(a) (5.75)%
============================================================ =======
Ratios/supplement data:
Net assets, end of period (000s omitted) $ 1,100
============================================================ =======
Ratio of expenses to average net assets(b) 2.29%(c)
============================================================ =======
Ratio of net investment income (loss) to average net
assets(b) (0.83)%
============================================================ =======
Portfolio turnover rate 96%
============================================================ =======
Average brokerage commission rate paid(d) $0.0239
============================================================ =======
</TABLE>
(a) Does not deduct sales charges and periods for less than one year,
total returns are not annualized.
(b) Ratios are annualized and based on average net assets of $628,292.
(c) Ratio includes expenses paid indirectly. Excluding expenses paid
indirectly, the ratio of expenses to average net assets would have
been the same.
(d) 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.
18
<PAGE> 21
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders of
AIM International Funds, Inc.:
We have audited the accompanying statement of assets and
liabilities of AIM Global Growth Fund (a portfolio of AIM
International Funds, Inc.), including the schedule of
investments, as of October 31, 1997, and the related
statement of operations for the year then ended, the
statement of changes in net assets for the two-year
period then ended and the financial highlights for the
three-year period then ended and the period September 15,
1994 (date operations commenced) through October 31,
1994. These financial statements and financial highlights
are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these
financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of
securities owned as of October 31, 1997, by
correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of AIM Global
Growth Fund as of October 31, 1997, the results of its
operations for the year then ended, and changes in its
net assets for the two-year period then ended and the
financial highlights for the three-year period then ended
and the period September 15, 1994 (date operations
commenced) through October 31, 1994, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Houston, Texas
December 5, 1997
19
<PAGE> 22
SUPPLEMENTAL PROXY INFORMATION -- SHAREHOLDER MEETING
- --------------------------------------------------------------------------------
The Annual Meeting of Shareholders of the Company was held on February 7, 1997.
The meeting was held for the following purposes:
(1) To elect directors as follows: Charles T. Bauer, Bruce L. Crockett, Owen
Daly II, Carl Frischling, Robert H. Graham, John F. Kroeger, Lewis F.
Pennock, Ian W. Robinson, and Louis S. Sklar.
(2) To approve a new Investment Advisory Agreement between the Company and AIM.
(3) To approve the elimination of the fundamental investment policy prohibiting
or restricting investments in other investment companies and/or the
amendment of certain related fundamental investment policies.
(4) Ratification of KPMG Peat Marwick LLP as independent accountants for the
Company's fiscal year ending October 31, 1997.
The following votes were cast with respect to each item:
<TABLE>
<CAPTION>
Votes Withhold/
Director/Matter Votes For Against Abstentions
--------------- --------- ------- -----------
<S> <C> <C> <C> <C>
(1) Charles T. Bauer............................................ 130,433,380 N/A 3,798,959
Bruce L. Crockett........................................... 130,563,964 N/A 3,668,375
Owen Daly II................................................ 130,421,284 N/A 3,811,055
Carl Frischling............................................. 130,515,713 N/A 3,716,626
Robert H. Graham............................................ 130,587,498 N/A 3,644,841
John F. Kroeger............................................. 130,446,846 N/A 3,785,493
Lewis F. Pennock............................................ 130,506,142 N/A 3,726,197
Ian W. Robinson............................................. 130,446,093 N/A 3,786,246
Louis S. Sklar.............................................. 130,573,480 N/A 3,658,859
(2) Approval of new Investment Advisory Agreement............... 10,535,120 124,963 463,813
(3) Elimination of Fundamental Investment Policy................ 7,611,924 323,037 504,221
(4) KPMG Peat Marwick LLP....................................... 128,509,801 995,829 4,726,709
</TABLE>
20
<PAGE> 23
Directors & Officers
<TABLE>
<S> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
Houston, TX 77046
Bruce L. Crockett Robert H. Graham
Director President INVESTMENT ADVISOR
ACE Limited;
Formerly Director, President, and John J. Arthur A I M Advisors, Inc.
Chief Executive Officer Senior Vice President and Treasurer 11 Greenway Plaza
COMSAT Corporation Suite 100
Carol F. Relihan Houston, TX 77046
Owen Daly II Senior Vice President
Director and Secretary TRANSFER AGENT
Cortland Trust Inc.
Gary T. Crum A I M Fund Services, Inc.
Jack Fields Senior Vice President P.O. Box 4739
Formerly Member of the Houston, TX 77210-4739
U.S. House of Representatives Dana R. Sutton
Vice President and Assistant Treasurer CUSTODIAN
Carl Frischling
Partner Robert G. Alley State Street Bank & Trust Company
Kramer, Levin, Naftalis & Frankel Vice President 225 Franklin Street
Boston, MA 02110
Robert H. Graham Melville B. Cox
President and Chief Executive Officer Vice President COUNSEL TO THE FUND
A I M Management Group Inc.
Jonathan C. Schoolar Ballard Spahr
John F. Kroeger Vice President Andrews & Ingersoll
Formerly Consultant 1735 Market Street
Wendell & Stockel Associates, Inc. P. Michelle Grace Philadelphia, PA 19103
Assistant Secretary
Lewis F. Pennock COUNSEL TO THE DIRECTORS
Attorney Nancy L. Martin
Assistant Secretary Kramer, Levin, Naftalis & Frankel
Ian W. Robinson 919 Third Avenue
Consultant; Formerly Executive Ofelia M. Mayo New York, NY 10022
Vice President and Assistant Secretary
Chief Financial Officer DISTRIBUTOR
Bell Atlantic Management Kathleen J. Pflueger
Services, Inc. Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Louis S. Sklar Samuel D. Sirko Suite 100
Executive Vice President Assistant Secretary Houston, TX 77046
Hines Interests
Limited Partnership Stephen I. Winer AUDITORS
Assistant Secretary
KPMG Peat Marwick LLP
Mary J. Benson 700 Louisiana
Assistant Treasurer Houston, TX 77002
</TABLE>
<PAGE> 24
<TABLE>
<S> <C>
THE AIM FAMILY OF FUNDS--Registered Trademark--
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH OF CAPITAL
AIM Advisor International Value Fund
[PHOTO OF AIM Blue Chip Fund
11 GREENWAY PLAZA AIM Global Growth Fund
APPEARS HERE] AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME 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
HIGH CURRENT INCOME OR CURRENT INCOME
AIM High Yield Fund
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE OF SAFETY
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Shares
AIM Money Market Fund
AIM Tax-Exempt Cash Fund
A I M Management Group Inc. has provided leadership in the *AIM Aggressive Growth Fund was closed to new investors on
mutual fund industry since 1976 and managed approximately June 5, 1997. For more complete information about any AIM
$82 billion in assets for more than 3.6 million shareholders, Fund(s), including sales charges and expenses, ask your
including individual investors, corporate clients, and financial financial consultant or securities dealer for a free
institutions, as of September 30, 1997. The AIM Family of prospectus(es). Please read the prospectus(es) carefully
Funds--Registered Trademark-- is distributed nationwide, and before you invest or send money.
AIM today ranks among the nation's top 15 mutual fund
companies in assets under management, according to Lipper INVEST WITH DISCIPLINE-SM-
Analytical Services, Inc.
[AIM LOGO APPEARS HERE] -----------------
BULK RATE
A I M Distributors, Inc. U.S. POSTAGE
11 Greenway Plaza, Suite 100 PAID
Houston, TX 77046 HOUSTON, TX
Permit No. 1919
-----------------
</TABLE>
