<PAGE> 1
[COVER IMAGE]
AIM
INTERNATIONAL EQUITY FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30 1999
<PAGE> 2
[COVER IMAGE]
-------------------------------------
HUMAN ACHIEVEMENT BY TSING-FANG CHEN
FOR THIS STUDY IN MODERN ICONOGRAPHY, TSING-FANG
CHEN CREATED A MULTICULTURAL COLLAGE OF SYMBOLS
REPRESENTING THE FINEST ACHIEVEMENTS OF PEOPLE
AROUND THE WORLD. TODAY, THE INTERNATIONAL MARKET-
PLACE HELPS PUT MANY OF THE WORLD'S GREAT IDEAS
INTO ACTION-IDEAS THAT COULD BECOME THE SYMBOLS
OF HUMAN ACHIEVEMENT FOR THE 21ST CENTURY.
-------------------------------------
AIM International Equity Fund is for shareholders who seek long-term growth of
capital. The Fund invests in a diversified portfolio of international equity
securities of companies with strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM International Equity Fund's performance figures are historical and
reflect reinvestment of all distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class
C share performance reflects the applicable contingent deferred sales
charge (CDSC) for the period involved. The CDSC on Class B shares declines
from 5% beginning at the time of purchase to 0% at the beginning of the
seventh year. The CDSC on Class C shares is 1% for the first year after
purchase. The performance of the Fund's Class B and Class C shares will
differ from that of Class A shares due to differences in sales charge
structure and expenses.
o Past performance is no guarantee of comparable future results.
o The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o International investing presents certain risks not associated with
investing solely in the United States. These include risks relating to
fluctuations in the value of the U.S. dollar relative to the values 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 EAFE --Registered Trademark-- (Europe, Australasia, and the Far East)
Index is a group of unmanaged foreign securities tracked by Morgan Stanley
Capital International.
o The unmanaged Lipper International Funds Index represents an average of the
performance of the 30 largest international mutual funds. It is compiled by
Lipper, Inc., an independent mutual funds performance monitor. Results
shown reflect reinvestment of dividends.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUNDS IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENT AGENCY. THERE IS A RISK THAT YOU
COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
AIM INTERNATIONAL EQUITY FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
With only several months remaining in 1999, the question on
[PHOTO OF many of your minds may be, "How will the year 2000 computer
Charles T. issue affect AIM and my investments?" We would like you to
Bauer, feel comfortable.
Chairman of During March and April, AIM participated in an
the Board of industrywide test that gave us a chance to see how our
THE FUND technology systems might be affected by the changeover to
APPEARS HERE] the year 2000 (Y2K). Everything went as well as we had
hoped; in general, the industry sailed through the testing
process with flying colors. The financial industry has been
seen as a leader in planning for year 2000 concerns. Thus,
it was no surprise to most participants that the test was
an overwhelming success.
The general purpose of the process was to test
electronic interfaces among financial industry members in
the United States and to follow transactions through a
typical trading cycle-from order entry to the settlement process. Investment
banks, broker-dealers, custodian banks and mutual fund companies all worked
together to make this possible. Approximately 400 firms were involved in the
testing; AIM was one of 70 asset managers.
TEST RESULTS EXCELLENT
During the testing process, thousands of transactions were submitted and
approximately 260,000 steps were tested. Of those, only a handful experienced
minor glitches-just 0.02% of the total number of transactions. All problems
were worked through quickly before the hypothetical trades were settled. Of
course, AIM will keep testing and planning throughout 1999 as a precaution.
AIM'S INTERNAL EFFORTS CONTINUE
As you know from our previous communications to you, AIM has been addressing
the year 2000 issue for several years. During 1998, we made substantial
progress on our preparations. We are now in the final phases of the project,
continually testing internal applications and our interfaces with outside
parties. On the investment side, our portfolio management staff is evaluating
the Y2K preparedness of the companies in which we invest.
We feel that our preparations for 2000 are very comprehensive, and the
industrywide testing showed that our colleagues in the financial industry are
also working hard to be ready for the new year. We do not think shareholders
need to take any extraordinary measures with their investments to prepare for
2000. However, if you have any lingering concerns, it may reassure you to know
that AIM is finalizing contingency plans that will be ready if there are
unexpected problems. Our plans will give AIM employees guidelines to follow for
a wide variety of situations.
For a more comprehensive discussion of our Y2K efforts and for periodic
updates, please visit our Web site, www.aimfunds.com.
We are pleased to send you this report covering your fund's performance
over the last six months. If you have any questions or comments, please contact
our Client Services department at 800-959-4246, or e-mail your inquiry to us at
[email protected]. You can access information about your account through our
AIM Investor Line at 800-246-5463 or at our Web site.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--. We appreciate your business.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
-------------------------------------
THE FINANCIAL INDUSTRY
HAS BEEN SEEN AS A
LEADER IN PLANNING FOR
YEAR 2000 CONCERNS.
-------------------------------------
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
AIM INTERNATIONAL EQUITY FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
EUROPEAN STOCKS STRUGGLE AS
EMERGING MARKETS SURGE
INTERNATIONAL MARKETS HAVE BEEN VOLATILE SINCE LAST YEAR. HOW DID AIM
INTERNATIONAL EQUITY FUND PERFORM?
In the past six months, international markets saw the reversal of a years-long
trend -Asia, Japan and Latin America outperformed Europe. This shift affected
the performance of AIM International Equity Fund somewhat, but the Fund still
produced solid returns. The Fund produced a total return of 9.13% for Class A
shares, 8.65% for Class B shares, and 8.70% for Class C shares for the six
months ending April 30, 1999. These returns are at net asset value, which means
they do not include sales charges. The Fund underperformed the Lipper
International Funds Index, which produced a 14.05% return, and the overall
index for international markets, the EAFE, with a 15.28% return for the
reporting period.
The Fund's net assets were $2.7 billion at the end of six-month reporting
period.
WHY DID THE FUND UNDERPERFORM ITS BENCHMARKS?
Most of the Fund's investments were in Europe, which did not perform as well as
other international markets in recent months. The strongest performance came
from Japan and the emerging markets, including Asia and Latin America, which
together made up 24% of the Fund's assets. We also had limited exposure in
economically sensitive companies, such as commodities, metals, chemicals and
paper manufacturers. These stocks were in favor at the end of the reporting
period. We usually don't focus our investments in these kinds of companies
because their earnings swings can be quite dramatic and unpredictable. Instead,
we look for large-company stocks with good fundamentals and a strong potential
for future earnings growth.
Over the past three months, we decreased the Fund's holdings in Europe from
78% to 71% of total assets, and increased our investments in Japan, Asia and
Latin America.
WHY DID JAPAN AND EMERGING MARKETS PERFORM BETTER THAN EUROPEAN MARKETS?
Japan, Asia and Latin America suffered major problems last year, including
currency devaluation and recession. Signs of recovery appeared in early 1999,
and many investors expect Japan and the rest of Asia to emerge from recession
this year. Latin American economies have improved and investors are returning,
stabilizing the markets there somewhat.
At the same time, the European economy is slowing, particularly in Germany,
and we're seeing earnings disappointments from some companies.
WILL YOU CONTINUE TO FOCUS THE FUND'S ASSETS IN EUROPE?
Yes, the long-term outlook is favorable. We also see positive short-term
trends:
o The new European Central Bank dropped interest rates in April to stimulate
the economy and boost confidence in Europe.
o The euro's decline means European exporters are more competitive.
o European companies are more focused on shareholder value. For example, the
Italian government forced a shareholder vote in the hostile takeover
attempt of Telecom Italia, the country's largest telecommunications
company.
Corporate restructuring and privatization will continue to drive the
European economy over the long term. Companies become more efficient when they
move from government control to private ownership because they're forced to
trim costs to become leaner and more competitive.
While recent earnings have declined, European companies have long-term
growth expectations superior to those in the United States. And European stocks
are selling at a cheaper price than U.S. stocks.
WHAT EUROPEAN STOCKS DID YOU LIKE?
Telecommunications companies have performed especially well. Our top holding is
the Finland-based Nokia, the world's largest wireless phone company. Nokia
posted a 96% increase in earnings in its most recent quarter.
PORTFOLIO COMPOSITION
As of April 30, 1999, based on total net assets
============================================================================
TOP 10 EQUITY HOLDINGS TOP 10 COUNTRIES
- ----------------------------------------------------------------------------
1. Nokia Oyj A.B.(Finland) 2.28% 1. United Kingdom 15.69%
2. Mannesmann A.G. (Germany ) 1.58 2. France 14.59
3. DaimlerChrysler A.G. (Germany) 1.50 3. Japan 12.02
4. Telefonica de Espana (Spain) 1.45 4. Canada 5.39
5. Dixons Group PLC (United Kingdom) 1.37 5. Netherlands 5.39
6. Northern Telecom Ltd.-ADR (Canada) 1.37 6. Italy 4.52
7. Hays PLC (United Kingdom) 1.33 7. Mexico 4.37
8. Zurich Allied A.G.(Switzerland) 1.32 8. Germany 4.18
9. Koninklijke Ahold N.V. (Netherlands) 1.30 9. Switzerland 4.12
10. Banque Nationale de Paris (France) 1.27 10. Hong Kong 3.79
Please keep in mind the Fund's portfolio is subject to change and there is no
assurance the Fund will continue to hold any particular security.
============================================================================
See important Fund and index disclosures inside front cover.
AIM INTERNATIONAL EQUITY FUND
2
<PAGE> 5
SEMI ANNUAL REPORT / MANAGER'S OVERVIEW
Our second-largest holding was Mannesmann, a German engineering and
telecommunications conglomerate. The company doubled its earnings in its most
recent fiscal year. Mannesmann is Germany's largest cellular phone company.
Our third largest holding, DaimlerChrysler, benefited from a weak euro that
spurred car sales in Europe. Strong sales in North America also boosted
earnings.
IS THE ASIAN ECONOMIC CRISIS OVER?
It appears to be, although some Asian countries have yet to recover. Asia has
made great strides - currencies are more stable, interest rates are declining
and inflation is benign. Banking-system reform is occurring but not yet
complete. Many companies in Asia continue to produce strong earnings,
especially in the banking and consumer sectors. The strongest economies appear
to be Australia, Korea and Singapore. We maintained our investments in Asia
(outside Japan) at about 3.52% for most of the six-month reporting period.
IS THE OUTLOOK FOR JAPAN IMPROVING?
The Japanese stock market boomed over the six-month period. Investors pumped
$13.4 billion into the Tokyo stock exchange in March, a record high. However,
we remain cautious about a Japanese recovery. Japan's economy continues to
shrink, consumer spending is down, and the government has yet to implement
meaningful economic reform.
Japanese holdings made up 12.02% of the Fund, and include beer maker Kirin
Brewery, telecommunications giant NTT and computer hardware maker NEC.
HAS LATIN AMERICA RECOVERED?
Latin American markets have turned around, especially over the past three
months. Brazil appointed a new central bank president, who has raised interest
rates to keep inflation in check. Markets calmed considerably as the country
established a clearer monetary policy. Even with this positive news, we feel it
is too early to expect a sustained recovery in Brazil. In the short-term, we'll
continue to focus on Mexico. The recent recovery in oil prices has boosted the
Mexican economy, and Mexico continues to benefit from the strength of its
largest trading partner, the United States.
WHAT'S YOUR OUTLOOK?
Further interest-rate cuts could occur across Europe, a move that would benefit
large-company stocks in which the Fund invests. Over the long run, we expect
the earnings picture to improve as privatization, deregulation and
restructuring take hold.
We look for continued improvement in Latin America and Asia, with the
exception of Japan. While we have increased our Japanese holdings somewhat, we
believe it's too early to say the economic crisis there has ended.
=================================================
TOP 10 INDUSTRIES
- -------------------------------------------------
1. Banks (Major Regional) 9.73%
2. Telephone 7.32
3. Retail (Food Chains) 4.65
4. Services (Commercial & Consumer) 4.62
5. Telecommunications (Cellular/Wireless) 4.46
6. Communications Equipment 4.18
7. Insurance (Multi-line) 3.86
8. Manufacturing (Diversified) 3.35
9. Computers (Software & Services) 3.13
10. Banks (Regional) 2.84
=================================================
===================================================
RESULTS OF A $10,000 INVESTMENT
AIM INTERNATIONAL EQUITY FUND VS. BENCHMARK INDEXES
4/7/92 to 4/30/99.
- ---------------------------------------------------
[BAR CHART]
in thousands
AIM Int. Equity Fund A $21,766
Lipper Int. Fund Index $21,634
MSCI EAFE $23,000
===================================================
Past performance is no guarantee of comparable
future results.
===================================================
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/99
CLASS A SHARES
Inception (4/7/92) 12.52%
5 years 9.23
1 year -6.68*
*-1.26% excluding sales charges
CLASS B SHARES
Inception (9/15/94) 9.24%
1 year -6.89*
*-2.05% excluding sales charges
CLASS C SHARES
Inception (8/4/97) 3.20%
1 year -2.96*
*-1.99% excluding sales charges
================================================================================
Your Fund's total return includes sales charges, expenses, and management fees.
The performance of the Fund's Class B and Class C shares will differ from Class
A shares due to differing fees and expenses. For Fund data performance
calculations and descriptions of indexes cited on this page, please refer to
the inside front cover.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF
AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
See important Fund and index disclosures inside front cover.
AIM INTERNATIONAL EQUITY FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-95.79%
ARGENTINA-1.63%
Telefonica de Argentina S.A.-ADR
(Telephone) 336,500 $ 12,576,687
- ---------------------------------------------------------------
YPF Sociedad Anonima-ADR
(Oil-International Integrated) 761,500 31,983,000
- ---------------------------------------------------------------
44,559,687
- ---------------------------------------------------------------
AUSTRALIA-1.24%
AMP Ltd. (Insurance-Life/Health) 1,352,000 15,791,208
- ---------------------------------------------------------------
Brambles Industries Ltd. (Air
Freight) 383,000 11,254,458
- ---------------------------------------------------------------
Cable & Wireless Optus, Ltd.
(Telephone)(a) 3,103,700 6,983,170
- ---------------------------------------------------------------
34,028,836
- ---------------------------------------------------------------
BELGIUM-1.66%
Delhaize-Le Lion, S.A.
(Retail-Food & Drug)(a) 345,600 30,233,897
- ---------------------------------------------------------------
UCB S.A.
(Manufacturing-Diversified) 328,600 15,276,023
- ---------------------------------------------------------------
45,509,920
- ---------------------------------------------------------------
BRAZIL-0.53%
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar-Pfd. (Retail-Food
Chains) 12,900 224,944
- ---------------------------------------------------------------
Embratel Participacoes S.A.-ADR
(Telephone)(a) 159,200 2,587,000
- ---------------------------------------------------------------
Petroleo Brasileiro
S.A.-Petrobras-Pfd. (Oil &
Gas-Exploration & Production) 32,071 5,213,292
- ---------------------------------------------------------------
Tele Centro Sul Participacoes
S.A. (Telephone) 31,841 1,691,504
- ---------------------------------------------------------------
Telebras-ADR Pfd. (Telephone)(a) 9,000 820,687
- ---------------------------------------------------------------
Telecomunicacoes Brasileiras
S.A.-ADR (Telephone)(a) 159,200 12,438
- ---------------------------------------------------------------
Telesp Participacoes S.A.-ADR
(Telephone) 159,200 3,980,000
- ---------------------------------------------------------------
14,529,865
- ---------------------------------------------------------------
CANADA-5.39%
ATI Technologies, Inc.
(Computers-Hardware)(a) 951,200 14,254,952
- ---------------------------------------------------------------
BCE Inc. (Telephone) 674,800 30,777,915
- ---------------------------------------------------------------
Bombardier Inc.
(Aerospace/Defense) 514,100 7,968,903
- ---------------------------------------------------------------
CGI Group, Inc.
(Services-Computer Systems)(a) 365,700 9,029,630
- ---------------------------------------------------------------
Imasco Ltd.
(Manufacturing-Diversified) 351,100 7,729,979
- ---------------------------------------------------------------
JDS Fitel Inc.
(Manufacturing-Specialized)(a) 192,900 11,642,798
- ---------------------------------------------------------------
Loblaw Co. Ltd.
(Retail-Specialty) 275,000 6,941,015
- ---------------------------------------------------------------
Northern Telecom Ltd.-ADR
(Communications Equipment) 552,357 37,663,843
- ---------------------------------------------------------------
Shaw Communications Inc.
(Broadcasting-Television, Radio
& Cable) 205,000 8,436,214
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Toronto-Dominion Bank
(Banks-Regional) 255,100 $ 13,621,080
- ---------------------------------------------------------------
148,066,329
- ---------------------------------------------------------------
CROATIA-0.06%
Pliva DD GDR (Health
Care-Drugs-Major
Pharmaceutical) (Acquired
05/13/98; Cost $1,719,760)(b) 103,600 1,642,060
- ---------------------------------------------------------------
FINLAND-2.85%
Nokia Oyj A.B.-Class A
(Communications Equipment) 812,342 62,611,522
- ---------------------------------------------------------------
Sonera Group Oyj
(Telecommunications-Cellular/
Wireless) 782,900 15,550,852
- ---------------------------------------------------------------
78,162,374
- ---------------------------------------------------------------
FRANCE-14.59%
Accor S.A. (Lodging-Hotels) 96,500 25,438,290
- ---------------------------------------------------------------
Altran Technologies, S.A.
(Services-Commercial &
Consumer) 43,500 10,340,983
- ---------------------------------------------------------------
AXA S.A. (Insurance-Multi-Line) 228,614 29,516,447
- ---------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 421,900 34,969,750
- ---------------------------------------------------------------
Cap Gemini Sogeti S.A.
(Computer-Software & Services) 156,300 23,895,579
- ---------------------------------------------------------------
Carrefour Supermarche S.A.
(Retail-Food Chains) 43,100 34,152,979
- ---------------------------------------------------------------
Compagnie Generale des Eaux
(Manufacturing-Diversified) 55,000 12,848,176
- ---------------------------------------------------------------
Danone (Foods) 68,047 18,189,450
- ---------------------------------------------------------------
Elf Aquitaine S.A. (Oil &
Gas-Refining & Marketing) 217,800 33,827,139
- ---------------------------------------------------------------
Pinault-Printemps-Redoute S.A.
(Retail-General Merchandise) 181,150 30,048,863
- ---------------------------------------------------------------
Promodes (Retail-Food Chains) 43,600 27,639,348
- ---------------------------------------------------------------
Rexal S.A. (Distributors-Food &
Health) 81,000 6,718,073
- ---------------------------------------------------------------
Rhone-Poulenc-Class A
(Chemicals-Diversified) 549,600 26,130,595
- ---------------------------------------------------------------
Societe Generale (Banks-Major
Regional) 114,300 20,457,365
- ---------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio
& Cable) 74,200 14,503,262
- ---------------------------------------------------------------
Suez Lyonnaise des Eaux
(Manufacturing-Diversified) 132,500 22,538,853
- ---------------------------------------------------------------
Total S.A.-Class B (Oil &
Gas-Refining & Marketing) 214,400 29,357,552
- ---------------------------------------------------------------
400,572,704
- ---------------------------------------------------------------
GERMANY-4.18%
Allianz A.G.
(Insurance-Multi-Line) 44,600 14,207,322
- ---------------------------------------------------------------
DaimlerChrysler A.G.
(Automobiles) 417,399 41,211,722
- ---------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GERMANY-(CONTINUED)
EM.TV & Merchandising A.G.
(Broadcasting-Television,
Radio, & Cable)(a) 7,500 $ 7,092,092
- ---------------------------------------------------------------
Mannesmann A.G.
(Machinery-Diversified) 330,200 43,469,552
- ---------------------------------------------------------------
Porsche A.G. (Automobiles) 3,500 8,653,145
- ---------------------------------------------------------------
114,633,833
- ---------------------------------------------------------------
HONG KONG-3.71%
China Telecom Ltd.
(Telecommunications-Cellular/
Wireless)(a) 10,504,000 23,987,459
- ---------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 39,966,000 27,071,122
- ---------------------------------------------------------------
Dao Heng Bank Group Ltd.
(Banks-Regional)(a) 3,880,000 15,768,797
- ---------------------------------------------------------------
Hutchison Whampoa Ltd.
(Retail-Food Chains) 3,347,000 30,012,128
- ---------------------------------------------------------------
Ng Fung Hong Ltd. (Foods) 5,284,200 5,113,247
- ---------------------------------------------------------------
101,952,753
- ---------------------------------------------------------------
INDONESIA-0.66%
Gulf Indonesia Resources Ltd.
(Oil-International
Integrated)(a) 1,752,900 18,076,781
- ---------------------------------------------------------------
IRELAND-2.35%
Allied Irish Banks PLC
(Banks-Regional) 1,655,900 26,670,509
- ---------------------------------------------------------------
Bank of Ireland (Banks-Major
Regional) 1,172,200 23,438,019
- ---------------------------------------------------------------
CRH PLC (Construction-Cement &
Aggregates) 740,000 14,522,441
- ---------------------------------------------------------------
64,630,969
- ---------------------------------------------------------------
ITALY-4.52%
Assicurazioni Generali
(Insurance- Multi-Line) 668,000 26,007,824
- ---------------------------------------------------------------
Banca Commerciale Italiana
(Banks-Major Regional) 1,238,100 10,190,212
- ---------------------------------------------------------------
Banca Popolare di Brescia
(Banks-Regional)(a) 447,000 15,372,644
- ---------------------------------------------------------------
Credito Italiano S.p.A.
(Banks-Major Regional) 5,184,700 26,293,895
- ---------------------------------------------------------------
Olivetti S.p.A.
(Telecommunications-Cellular/
Wireless)(a) 2,282,000 7,956,455
- ---------------------------------------------------------------
San Paolo-IMI S.p.A. (Banks-Major
Regional) 1,130,431 16,959,868
- ---------------------------------------------------------------
Telecom Italia S.p.A. (Telephone) 2,008,500 21,369,352
- ---------------------------------------------------------------
124,150,250
- ---------------------------------------------------------------
JAPAN-12.02%
Advantest Corp.
(Electronics-Instrumentation) 331,900 25,373,640
- ---------------------------------------------------------------
Alps Electric Co., Ltd.
(Electronics-Component
Distributors)(a) 1,197,000 20,296,630
- ---------------------------------------------------------------
Hirose Electric Co. Ltd.
(Electronics-Component
Distributors) 137,800 12,807,871
- ---------------------------------------------------------------
Hoya Corp.
(Manufacturing-Specialized) 350,000 18,316,935
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-(CONTINUED)
Kirin Brewery Co., Ltd.
(Beverages-Alcoholic)(a) 1,805,000 $ 20,404,019
- ---------------------------------------------------------------
Matsushita Communication
Industrial Co., Ltd.
(Telephone) 363,000 26,049,068
- ---------------------------------------------------------------
Murata Manufacturing Co., Ltd.
(Electronics- Component
Distributors) 528,000 30,196,692
- ---------------------------------------------------------------
NEC Corp. (Computers-Hardware) 208,800 24,931,865
- ---------------------------------------------------------------
Nippon Telegraph & Telephone
Corp. (Telephone) 2,228 24,252,878
- ---------------------------------------------------------------
NTT Data Corp.
(Computers-Software & Services) 3,047 24,110,655
- ---------------------------------------------------------------
NTT Mobile Communications
Network, Inc.
(Telecommunications-Cellular/
Wireless) 504 29,541,553
- ---------------------------------------------------------------
Okuma Corp. (Machine Tools) 3,350,000 16,830,647
- ---------------------------------------------------------------
Takeda Chemical Industries
(Health Care-Drugs-Generic &
Other) 642,000 27,900,188
- ---------------------------------------------------------------
Tokyo Electron Ltd.
(Electronics-Semiconductors) 510,000 29,039,146
- ---------------------------------------------------------------
330,051,787
- ---------------------------------------------------------------
MEXICO-4.37%
Cifra S.A. de C.V.
(Retail-General Merchandise)(a) 6,841,000 12,808,366
- ---------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages- Non-Alcoholic) 502,900 10,403,744
- ---------------------------------------------------------------
Formento Economico Mexicano, S.A.
de C.V. (Beverages-Alcoholic) 753,170 27,396,559
- ---------------------------------------------------------------
Grupo Financiero Banamex Accival,
S.A. de CV (Banacci)
(Financial-Diversified)(a) 6,229,600 15,877,390
- ---------------------------------------------------------------
Grupo Modelo S.A. de C.V.-Series
C (Beverages-Alcoholic) 4,538,900 11,961,279
- ---------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 536,200 21,984,200
- ---------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.-Class A (Paper & Forest
Products) 1,979,000 7,710,390
- ---------------------------------------------------------------
Telefonos de Mexico S.A.-ADR
(Telephone) 156,000 11,817,000
- ---------------------------------------------------------------
119,958,928
- ---------------------------------------------------------------
NETHERLANDS-5.39%
Equant N.V.
(Computers-Peripherals)(a) 184,000 16,699,407
- ---------------------------------------------------------------
Getronics N.V.
(Computers-Software & Services) 442,000 18,142,760
- ---------------------------------------------------------------
Koninklijke Ahold N.V.
(Retail-Food Chains) 957,514 35,559,899
- ---------------------------------------------------------------
Koninklijke Numico N.V. (Foods) 293,600 11,043,230
- ---------------------------------------------------------------
Philips Electronics N.V.
(Household Furniture &
Appliances) 175,000 15,069,044
- ---------------------------------------------------------------
Verenigde Nederlandse
Uitgeversbedrijven Verenigd
Bezit (Publishing) 654,600 26,488,955
- ---------------------------------------------------------------
Wolters Kluwer N.V.
(Specialty-Printing) 571,520 24,878,186
- ---------------------------------------------------------------
147,881,481
- ---------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NORWAY-0.18%
Merkantildata A.S.A.
(Services-Commercial &
Consumer) 508,800 $ 5,081,160
- ---------------------------------------------------------------
PHILIPPINES-0.63%
Philippine Long Distance
Telephone Co. (Telephone) 294,660 9,531,408
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Co.-ADR (Telephone) 243,000 7,836,750
- ---------------------------------------------------------------
17,368,158
- ---------------------------------------------------------------
PORTUGAL-1.38%
Banco Comercial Portugues, S.A.
(Banks-Major Regional) 763,200 21,521,721
- ---------------------------------------------------------------
Jeronimo Martins & Filho, S.A.
(Retail-General Merchandise) 260,800 8,583,328
- ---------------------------------------------------------------
Telecel-Comunicacaoes Pessoais, S.A.
(Telecommunications-Cellular/
Wireless) 58,400 7,805,369
- ---------------------------------------------------------------
37,910,418
- ---------------------------------------------------------------
SINGAPORE-1.27%
Development Bank of Singapore
Ltd. (Banks-Major Regional) 1,198,000 12,712,374
- ---------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction)(a) 3,901,900 11,133,170
- ---------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing-Newspapers) 749,000 11,038,731
- ---------------------------------------------------------------
34,884,275
- ---------------------------------------------------------------
SOUTH KOREA-0.51%
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 548,300 14,118,725
- ---------------------------------------------------------------
SPAIN-3.35%
Banco Popular Espanol S.A.
(Banks-Major Regional)(a) 197,000 13,945,403
- ---------------------------------------------------------------
Corp. Financiera Reunida, S.A.
(Investment Management)(a) 556,500 6,544,107
- ---------------------------------------------------------------
Endesa S.A. (Electric Companies) 630,600 14,018,119
- ---------------------------------------------------------------
Telefonica de Espana (Telephone) 851,609 39,904,688
- ---------------------------------------------------------------
Telefonica S.A. (Telephone), Bonus
Rights (expiring 05/20/99)(a) 851,609 791,795
- ---------------------------------------------------------------
Union Electrica Fenosa, S.A.
(Electric Companies) 1,257,000 16,720,569
- ---------------------------------------------------------------
91,924,681
- ---------------------------------------------------------------
SWEDEN-3.20%
Electrolux A.B. (Household
Furniture & Appliances) 1,266,000 25,659,121
- ---------------------------------------------------------------
Hennes & Mauritz A.B.-Class B
(Retail-Specialty-Apparel) 366,692 31,597,142
- ---------------------------------------------------------------
Svenska Handelsbanken-Class A
(Banks-Major Regional) 560,850 21,006,116
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWEDEN-(CONTINUED)
WM-Data A.B. (Computers-Software
& Services) 263,450 $ 9,679,922
- ---------------------------------------------------------------
87,942,301
- ---------------------------------------------------------------
SWITZERLAND-4.12%
ABB A.G. (Engineering &
Construction) 17,800 25,958,576
- ---------------------------------------------------------------
Adecco S.A. (Services-Commercial
& Consumer) 29,191 14,713,167
- ---------------------------------------------------------------
Julius Baer Holding A.G.
(Banks-Major Regional)(a) 2,650 8,623,746
- ---------------------------------------------------------------
UBS A.G. (Banks-Major Regional) 81,183 27,562,951
- ---------------------------------------------------------------
Zurich Allied A.G.
(Insurance-Multi-Line)(a) 56,106 36,148,783
- ---------------------------------------------------------------
113,007,223
- ---------------------------------------------------------------
TAIWAN-0.42%
Inventec Co., Ltd.
(Computers-Hardware)(a) 3,474,000 11,420,642
- ---------------------------------------------------------------
THAILAND-0.24%
Siam Commercial Bank, 5.25% Pfd.
(Banks-Regional)(a) 9,404,000 6,595,738
- ---------------------------------------------------------------
UNITED KINGDOM-15.34%
Airtours PLC (Services-Commercial
& Consumer) 1,294,600 8,954,722
- ---------------------------------------------------------------
Barclays PLC (Banks-Major
Regional) 929,000 29,499,247
- ---------------------------------------------------------------
British Energy PLC (Electric
Companies) 2,544,000 21,627,691
- ---------------------------------------------------------------
British Sky Broadcasting Group
PLC (Broadcasting-Television,
Radio & Cable) 1,660,000 14,659,815
- ---------------------------------------------------------------
British Telecommunications PLC
(Communications Equipment) 862,000 14,476,242
- ---------------------------------------------------------------
Cable & Wireless Communications PLC
(Telecommunications-Cellular/
Wireless) 1,196,550 17,168,951
- ---------------------------------------------------------------
Compass Group PLC
(Services-Commercial & Consumer) 1,996,500 20,457,700
- ---------------------------------------------------------------
Dixons Group PLC
(Retail-Specialty) 1,767,300 37,725,001
- ---------------------------------------------------------------
General Electric Co. PLC
(Manufacturing-Diversified) 3,164,000 33,515,084
- ---------------------------------------------------------------
Granada Group PLC (Leisure
Time-Products) 1,210,000 25,848,272
- ---------------------------------------------------------------
Hays PLC (Services-Commercial &
Consumer) 3,280,700 36,466,378
- ---------------------------------------------------------------
Logica PLC (Computer
Software/Services) 1,033,500 9,974,929
- ---------------------------------------------------------------
Misys PLC (Services-Commercial &
Consumer) 2,264,500 21,255,007
- ---------------------------------------------------------------
Orange PLC
(Telecommunications)(a) 1,972,300 26,840,549
- ---------------------------------------------------------------
Provident Financial PLC (Consumer
Finance) 963,933 16,079,542
- ---------------------------------------------------------------
Railtrack Group PLC (Shipping) 926,948 19,339,419
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Seton Scholl Healthcare PLC
(Health Care-Diversified)(a) 392,050 $ 4,856,018
- ---------------------------------------------------------------
Stagecoach Holdings PLC
(Shipping) 1,696,000 5,722,369
- ---------------------------------------------------------------
Unilever PLC (Foods) 1,397,000 12,382,150
- ---------------------------------------------------------------
Vodafone Group PLC
(Telecommunications-Cellular/
Wireless) 1,103,300 20,321,098
- ---------------------------------------------------------------
WPP Group PLC
(Services-Advertising/
Marketing) 2,729,500 24,104,799
- ---------------------------------------------------------------
421,274,983
- ---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests, (Cost
$2,071,053,802) 2,629,936,861
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
FOREIGN CONVERTIBLE BONDS &
NOTES-0.43%(C)
HONG KONG-0.08%
Cosco Treasury Co. Ltd., Conv.
Gtd. Bonds, 1.00%, 03/13/03 $ 2,754,000 2,283,851
- ---------------------------------------------------------------
UNITED KINGDOM-0.35%
Airtours PLC (Services-Commercial
& Consumer)
Conv. Sub. Notes, 5.75%,
01/05/04 GBP 5,298,000 9,449,170
- ---------------------------------------------------------------
Total Foreign Convertible
Bonds & Notes (Cost
$10,737,186) 11,733,021
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENT-1.36%(D)
West LB Securities Americas,
Inc., 4.88%, 05/03/99(e) (Cost
$37,361,663) $37,361,663 $ 37,361,663
- ---------------------------------------------------------------
TOTAL INVESTMENTS-97.58% 2,679,031,545
- ---------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-2.42% 66,551,698
- ---------------------------------------------------------------
NET ASSETS-100.00% $2,745,583,243
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GBP - British Pounds Sterling
GDR - Global Depositary Receipt
Gtd. - Guaranteed
Pfd. - Preferred
Sub. - Subordinated
Wts. - Warrants
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with provisions of Rule 144A under the Securities Act of 1933, as
amended. The valuation of this security has been determined in accordance
with procedures established by the Board of Directors. The market value at
04/30/99 represented 0.06% of the Fund's net assets.
(c) Foreign denominated security. Par value and coupon are denominated in
currency indicated.
(d) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value is at least 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts, with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(e) Joint repurchase agreement entered into 04/30/99 with a maturing value of
$250,101,667. Collateralized by $249,045,000 U.S. Government obligations,
4.00% to 8.75% due 08/31/00 to 11/15/08 with an aggregate market value at
04/30/99 of $255,023,179.
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$2,119,152,651) $2,679,031,545
- ------------------------------------------------------------
Foreign currencies, at value (cost
$26,873,429) 26,952,453
- ------------------------------------------------------------
Receivables for:
Investments sold 97,848,892
- ------------------------------------------------------------
Capital stock sold 4,919,790
- ------------------------------------------------------------
Dividends and interest 7,214,617
- ------------------------------------------------------------
Investment for deferred compensation plan 42,048
- ------------------------------------------------------------
Other assets 124,026
- ------------------------------------------------------------
Total assets 2,816,133,371
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 54,854,622
- ------------------------------------------------------------
Capital stock reacquired 10,981,649
- ------------------------------------------------------------
Foreign Exchange Contracts 14,914
- ------------------------------------------------------------
Deferred compensation 42,048
- ------------------------------------------------------------
Accrued advisory fees 1,986,435
- ------------------------------------------------------------
Accrued administrative services fees 11,158
- ------------------------------------------------------------
Accrued custodian fees 378,246
- ------------------------------------------------------------
Accrued directors' fees 936
- ------------------------------------------------------------
Accrued distribution fees 1,755,182
- ------------------------------------------------------------
Accrued transfer agent fees 379,195
- ------------------------------------------------------------
Accrued operating expenses 145,743
- ------------------------------------------------------------
Total liabilities 70,550,128
- ------------------------------------------------------------
Net assets applicable to shares outstanding $2,745,583,243
- ------------------------------------------------------------
NET ASSETS:
Class A $1,856,663,029
============================================================
Class B $ 800,920,595
============================================================
Class C $ 87,999,619
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 98,453,044
============================================================
Class B:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 43,543,411
============================================================
Class C:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 4,780,929
============================================================
Class A:
Net asset value and redemption price per
share $ 18.86
- ------------------------------------------------------------
Offering price per share:
(Net asset value of $18.86
divided by 94.50%) $ 19.96
============================================================
Class B:
Net asset value and offering price per
share $ 18.39
============================================================
Class C:
Net asset value and offering price per
share $ 18.41
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $1,557,786 foreign
withholding tax) $ 10,430,279
- -----------------------------------------------------------
Interest 3,832,374
- -----------------------------------------------------------
Total investment income 14,262,653
- -----------------------------------------------------------
EXPENSES:
Advisory fees 12,207,399
- -----------------------------------------------------------
Administrative services fees 65,141
- -----------------------------------------------------------
Custodian fees 1,141,756
- -----------------------------------------------------------
Directors' fees 8,799
- -----------------------------------------------------------
Distribution fees-Class A 2,704,127
- -----------------------------------------------------------
Distribution fees-Class B 3,910,217
- -----------------------------------------------------------
Distribution fees-Class C 364,307
- -----------------------------------------------------------
Transfer agent fees-Class A 1,697,237
- -----------------------------------------------------------
Transfer agent fees-Class B 1,066,889
- -----------------------------------------------------------
Transfer agent fees-Class C 117,506
- -----------------------------------------------------------
Other 427,054
- -----------------------------------------------------------
Total expenses 23,710,432
- -----------------------------------------------------------
Less: Fees waived by advisor (540,441)
- -----------------------------------------------------------
Expenses paid indirectly (17,493)
- -----------------------------------------------------------
Net expenses 23,152,498
- -----------------------------------------------------------
Net investment income (loss) (8,889,845)
- -----------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENT SECURITIES AND
FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities 103,861,777
- -----------------------------------------------------------
Foreign currencies (1,011,959)
- -----------------------------------------------------------
102,849,818
- -----------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities 144,534,527
- -----------------------------------------------------------
Foreign currencies (763,040)
- -----------------------------------------------------------
143,771,487
- -----------------------------------------------------------
Net gain from investment securities and
foreign currencies 246,621,305
- -----------------------------------------------------------
Net increase in net assets resulting from
operations $237,731,460
===========================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1999 and the year ended October 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (8,889,845) $ 796,378
- -----------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 102,849,818 132,726,915
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
foreign currencies 143,771,487 28,100,960
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 237,731,460 161,624,253
- -----------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (10,410,630) (5,803,939)
- -----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (20,381,374) --
- -----------------------------------------------------------------------------------------------
Class B (9,045,542) --
- -----------------------------------------------------------------------------------------------
Class C (756,877) --
- -----------------------------------------------------------------------------------------------
Share transactions-net:
Class A (3,864,447) 22,585,920
- -----------------------------------------------------------------------------------------------
Class B 97,254 35,370,772
- -----------------------------------------------------------------------------------------------
Class C 24,012,346 45,396,283
- -----------------------------------------------------------------------------------------------
Net increase in net assets 217,382,190 259,173,289
- -----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 2,528,201,053 2,269,027,764
- -----------------------------------------------------------------------------------------------
End of period $2,745,583,243 $2,528,201,053
===============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $2,021,543,745 $2,001,298,592
- -----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (19,616,304) (315,829)
- -----------------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 184,027,529 111,361,504
- -----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 559,628,273 415,856,786
- -----------------------------------------------------------------------------------------------
$2,745,583,243 $2,528,201,053
===============================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
April 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM International Equity Fund (the "Fund") is a series portfolio of AIM
International Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end series management investment company consisting of six
separate portfolios. 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 and Class C shares are sold with a
contingent deferred sales charge. Matters affecting each portfolio or class are
voted on exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is to provide long-term growth of capital.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.
A. Security Valuations-A security listed or traded on an exchange (except
convertible bonds) is valued at the last sales price on the exchange where
the security is principally traded or, lacking any sales on a particular
day, at the closing bid price on that day. 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 last bid and
asked prices based upon quotes furnished by market makers for such
9
<PAGE> 12
securities. 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 closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors,
such as yield, type of issue, coupon rate and maturity date. Securities for
which market quotations are either not readily available or are questionable
are valued at fair value as determined in good faith by or under the
supervision of the Company's officers in a manner specifically authorized by
the Board of Directors. Investments with maturities of 60 days or less are
valued on the basis of amortized cost which approximates market value.
Generally, trading in foreign securities is substantially completed each day
at various times prior to the close of the New York Stock Exchange. The
values of such securities used in computing the net asset value of the
Fund's shares are determined as of such times. Foreign currency exchange
rates are also generally determined prior to the close of the New York Stock
Exchange. Occasionally, events affecting the values of such securities and
such exchange rates may occur between the times at which they are determined
and the close of the New York Stock Exchange which would not be reflected in
the computation of the Fund's net asset value. If events materially
affecting the value of such securities occur during such period, then these
securities will be valued at their fair value as determined in good faith by
or under the supervision of the Board of Directors.
B. Bond Premiums--It is the policy of the Fund not to amortize market premiums
on bonds for financial reporting purposes.
C. Foreign Currency Translations--Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S.
dollar amounts at the 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. The
Fund does not separately account for that portion of the results of
operations resulting from changes in foreign exchange rates on investments
and the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gain or loss from investments.
D. Foreign Currency Contracts--A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
E. Securities Transactions, Investment Income and Distributions--Securities
transactions are accounted for on a trade date basis. Realized gains or
losses are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on an accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date and are paid annually.
F. 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.
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 among
the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.95% of
the first $1 billion of the Fund's average daily net assets, plus 0.90% of the
Fund's average daily net assets in excess of $1 billion. AIM is currently
contractually waiving a portion of its advisory fees paid by the Fund to AIM to
the extent necessary to reduce the fees paid by the Fund at net asset levels
higher than those currently incorporated in the present advisory fee schedule.
Under the contractual waiver, AIM will receive a fee calculated at the annual
rate of 0.95% of the first $500 million of the Fund's average daily net assets,
plus 0.90% of the Fund's average daily net assets in excess of $500 million to
and including $1 billion, plus 0.85% of the Fund's average daily net assets in
excess of $1 billion. The waiver of fees is contractual and may not be
terminated without approval of the Board of Directors of the Company. During the
six months ended April 30, 1999, AIM waived fees of $540,441.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to reimburse AIM for certain administrative costs incurred in
providing accounting services to the Fund. During the six months ended April 30,
1999, AIM was reimbursed $65,141 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing
transfer agency services to the Fund. During the year ended October 31, 1998,
AFS was paid $1,219,606 for such services.
The Company has entered into master distribution agreements 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 and Class C shares (the "Class A and Class C Plan"), and the Fund's
Class B shares (the "Class B Plan") (collectively, the "Plans"). The Fund,
pursuant to the Class A and C Plan, pays AIM Distributors compensation at the
annual rate of 0.30% of the average daily net assets of Class A shares and 1.00%
of the average daily net assets of Class C shares. The Fund, pursuant to the
Class B Plan, pays AIM Distributors compensation at an annual rate of 1.00% of
the average daily net assets of the Class B shares. Of these amounts, the Fund
may pay a service fee of 0.25% of the average
10
<PAGE> 13
daily net assets of the Class A, Class B or C shares to selected dealers and
financial institutions who furnish continuing personal shareholder services to
their customers who purchase and own the appropriate class of shares of the
Fund. Any amounts not paid as a service fee under the Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges that may be paid by the respective
classes. During the six months ended April 30, 1999, the Class A and Class B and
Class C shares paid AIM Distributors $2,704,127, $3,910,217 and $364,307,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $244,642 from sales of the Class A
shares of the Fund during the six months ended April 30, 1999. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended April 30,
1999, AIM Distributors received commissions of $94,261 in contingent deferred
sales charges imposed on redemptions of Fund shares. Certain officers and
directors of the Company are officers and directors of AIM, AFS and AIM
Distributors.
During the six months ended April 30, 1999, the Fund incurred legal fees of
$3,232 for services rendered by the law firm of Kramer, Levin, Naftalis &
Frankel LLP as counsel to the Company's directors. A member of that firm is a
director of the Company.
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) of $17,493, under an expense
offset arrangement. The effect of the above arrangement resulted in a reduction
of the Fund's total expenses of $17,493 during the six months ended April 30,
1999.
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) $1,000,000,000 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. During the six
months ended April 30, 1999, 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 six months ended April 30, 1999 was
$1,343,029,998 and $1,218,736,851, respectively.
The amount of unrealized appreciation (depreciation) of investment
securities, on a tax basis, as of April 30, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $590,711,316
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (44,267,157)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $546,444,159
=========================================================
</TABLE>
Cost of investments for tax purposes is $2,132,587,386.
NOTE 7-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1999 and the year ended October 31, 1998 were as follows:
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 110,451,322 $ 2,020,271,026 255,642,183 $ 4,635,171,469
- -----------------------------------------------------------------------------------------
Class B 9,761,677 173,881,363 12,193,983 217,550,365
- -----------------------------------------------------------------------------------------
Class C 6,283,547 112,295,600 25,679,581 472,331,833
- -----------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Class A 1,596,986 28,282,635 332,423 5,441,633
- -----------------------------------------------------------------------------------------
Class B 482,232 8,356,983 -- --
- -----------------------------------------------------------------------------------------
Class C 39,786 689,883 -- --
- -----------------------------------------------------------------------------------------
Reacquired:
Class A (111,635,770) (2,052,418,108) (252,737,021) (4,618,027,182)
- -----------------------------------------------------------------------------------------
Class B (10,190,477) (182,141,092) (10,435,828) (182,179,593)
- -----------------------------------------------------------------------------------------
Class C (4,960,131) (88,973,137) (23,050,474) (426,935,550)
- -----------------------------------------------------------------------------------------
1,829,172 $ 20,245,153 7,624,847 $ 103,352,975
=========================================================================================
</TABLE>
11
<PAGE> 14
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A capital stock
outstanding during the six months ended April 30, 1999 and each of the years in
the five-year period ended October 31, 1998, for a share of Class B capital
stock outstanding during the six months ended April 30, 1999 and each of the
years in the four-year period ended October 31, 1998 and the period September
15, 1994 (date sales commenced) through October 31, 1994, and for a share of
Class C capital stock outstanding during the six months ended April 30, 1999 and
the year ended October 31, 1998 and the period August 4, 1997 (date sales
commenced) through October 31, 1997.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------------
OCTOBER 31,
APRIL 30, --------------------------------------------------------------
1999 1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.59 $ 16.64 $ 15.37 $ 13.65 $ 13.50 $ 12.18
- -------------------------------------------------- ---------- ---------- ---------- ---------- -------- --------
Income from investment operations:
Net investment income (loss) (0.04) 0.05(a) 0.04(a) 0.04(a) 0.01 0.02
- -------------------------------------------------- ---------- ---------- ---------- ---------- -------- --------
Net gains on securities (both realized and
unrealized) 1.63 0.96 1.68 2.07 0.62 1.31
- -------------------------------------------------- ---------- ---------- ---------- ---------- -------- --------
Total from investment operations 1.59 1.01 1.72 2.11 0.63 1.33
- -------------------------------------------------- ---------- ---------- ---------- ---------- -------- --------
Less distributions:
Dividends from net investment income (0.11) (0.06) (0.02) (0.01) (0.04) (0.01)
- -------------------------------------------------- ---------- ---------- ---------- ---------- -------- --------
Distributions from net realized gains (0.21) -- (0.43) (0.38) (0.44) --
- -------------------------------------------------- ---------- ---------- ---------- ---------- -------- --------
Total distributions (0.32) (0.06) (0.45) (0.39) (0.48) (0.01)
- -------------------------------------------------- ---------- ---------- ---------- ---------- -------- --------
Net asset value, end of period $ 18.86 $ 17.59 $ 16.64 $ 15.37 $ 13.65 $ 13.50
================================================== ========== ========== ========== ========== ======== ========
Total return(b) 9.13% 6.11% 11.43% 15.79% 5.24% 10.94%
================================================== ========== ========== ========== ========== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,856,663 $1,724,635 $1,577,390 $1,108,395 $654,764 $708,159
================================================== ========== ========== ========== ========== ======== ========
Ratio of expenses to average net assets(c) 1.49%(d) 1.45% 1.47% 1.58% 1.67% 1.64%
================================================== ========== ========== ========== ========== ======== ========
Ratio of net investment income (loss) to average
net assets(e) (0.41)%(d) 0.28% 0.24% 0.25% 0.10% 0.22%
================================================== ========== ========== ========== ========== ======== ========
Portfolio turnover rate 49% 78% 50% 66% 68% 67%
================================================== ========== ========== ========== ========== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.53% (annualized), 1.49%, 1.51%, 1.60% and 1.68% for 1999-1995.
(d) Ratios are annualized and based on average net assets of $1,817,691,396.
(e) 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 (0.46)% (annualized), 0.24%, 0.20%, 0.22% and 0.09% for
1999-1995.
<TABLE>
<CAPTION>
CLASS B CLASS C
--------------------------------------------------------------------------- ---------
OCTOBER 31,
APRIL 30, ------------------------------------------------------------ APRIL 30,
1999 1998 1997 1996 1995 1994 1999
---------- ---------- ---------- ---------- -------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.13 $ 16.27 $ 15.13 $ 13.54 $ 13.49 $ 13.42 $ 17.14
- -------------------------------------- ---------- ---------- ---------- ---------- -------- ------- --------
Income from investment operations:
Net investment income (loss) (0.11) (0.09)(a) (0.09)(a) (0.07)(a) (0.09) (0.01) (0.11)(a)
- -------------------------------------- ---------- ---------- ---------- ---------- -------- ------- --------
Net gains (losses) on securities
(both realized and unrealized) 1.58 0.95 1.66 2.04 0.61 0.08 1.59
- -------------------------------------- ---------- ---------- ---------- ---------- -------- ------- --------
Total from investment
operations 1.47 0.86 1.57 1.97 0.52 0.07 1.48
- -------------------------------------- ---------- ---------- ---------- ---------- -------- ------- --------
Less distributions:
Dividends from net investment income -- -- -- -- (0.03) -- --
- -------------------------------------- ---------- ---------- ---------- ---------- -------- ------- --------
Distributions from net realized
gains (0.21) -- (0.43) (0.38) (0.44) -- (0.21)
- -------------------------------------- ---------- ---------- ---------- ---------- -------- ------- --------
Total distributions (0.21) -- (0.43) (0.38) (0.47) -- (0.21)
- -------------------------------------- ---------- ---------- ---------- ---------- -------- ------- --------
Net asset value, end of period $ 18.39 $ 17.13 $ 16.27 $ 15.13 $ 13.54 $ 13.49 $ 18.41
====================================== ========== ========== ========== ========== ======== ======= ========
Total return(b) 8.65% 5.29% 10.61% 14.88% 4.35% 0.52% 8.70%
====================================== ========== ========== ========== ========== ======== ======= ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $ 800,921 $ 744,987 $ 678,809 $ 368,355 $ 51,964 $ 4,833 $ 88,000
====================================== ========== ========== ========== ========== ======== ======= ========
Ratio of expenses to average net
assets(c) 2.28%(d) 2.22% 2.25% 2.35% 2.55% 2.53%(e) 2.28%(d)
====================================== ========== ========== ========== ========== ======== ======= ========
Ratio of net investment income (loss)
to average net assets(f) (1.21)%(d) (0.49)% (0.53)% (0.53)% (0.78)% (0.67)%(e) (1.21)%(d)
====================================== ========== ========== ========== ========== ======== ======= ========
Portfolio turnover rate 49% 78% 50% 66% 68% 67% 49%
====================================== ========== ========== ========== ========== ======== ======= ========
<CAPTION>
CLASS C
--------------------
OCTOBER 31,
--------------------
1998 1997
-------- --------
<S> <C> <C>
Net asset value, beginning of period $ 16.27 $ 17.64
- -------------------------------------- -------- --------
Income from investment operations:
Net investment income (loss) (0.09)(a) (0.02)(a)
- -------------------------------------- --------
Net gains (losses) on securities
(both realized and unrealized) 0.96 (1.35)
- -------------------------------------- -------- --------
Total from investment
operations 0.87 (1.37)
- -------------------------------------- -------- --------
Less distributions:
Dividends from net investment income -- --
- -------------------------------------- -------- --------
Distributions from net realized
gains -- --
- -------------------------------------- -------- --------
Total distributions -- --
- -------------------------------------- -------- --------
Net asset value, end of period $ 17.14 $ 16.27
====================================== ======== ========
Total return(b) 5.35% (7.77)%
====================================== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $ 58,579 $ 12,829
====================================== ======== ========
Ratio of expenses to average net
assets(c) 2.22% 2.27%(e)
====================================== ======== ========
Ratio of net investment income (loss)
to average net assets(f) (0.49)% (0.55)%(e)
====================================== ======== ========
Portfolio turnover rate 78% 50%
====================================== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
2.32% (annualized), 2.26%, 2.28%, 2.37% and 2.56% for 1999-1995 for Class B
and 2.32% (annualized), 2.26% and 2.30% (annualized) for 1999-1997 for Class
C.
(d) Ratios are annualized and based on average net assets of $788,524,468 and
$73,465,201 for Class B and Class C, respectively.
(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 (1.25)% (annualized), (0.53)%, (0.57)%, (0.55)% and
(0.79)%, for 1999-1995 for Class B and (1.25)% (annualized), (0.53)% and
(0.57)% (annualized) for 1999-1997 for Class C.
12
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Robert G. Alley Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Edgar M. Larsen Boston MA 02110
Chief Executive Officer Vice President
Texana Global, Inc.; COUNSEL TO THE FUND
Formerly Member Mary J. Benson
of the U.S. House of Representatives Assistant Vice President and Ballard Spahr
Assistant Treasurer Andrews & Ingersoll, LLP
Carl Frischling 1735 Market Street
Partner Sheri Morris Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and
Assistant Treasurer COUNSEL TO THE DIRECTORS
Robert H. Graham
President and Chief Executive Officer Renee A. Friedli Kramer, Levin, Naftalis & Frankel LLP
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis P. Michelle Grace
Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary DISTRIBUTOR
Commissioner, New York City Dept. for the
Aging; and member of the Board of Directors, Jeffrey H. Kupor A I M Distributors, Inc.
Metropolitan Transportation Authority of Assistant Secretary 11 Greenway Plaza
New York State Suite 100
Nancy L. Martin Houston, TX 77046
Lewis F. Pennock Assistant Secretary
Attorney
Ofelia M. Mayo
Louis S. Sklar Assistant Secretary
Executive Vice President
Hines Interests Lisa A. Moss
Limited Partnership Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has
AIM Aggressive Growth Fund(1) AIM Money Market Fund provided leadership in the
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund mutual-fund industry since 1976 and
AIM Capital Development Fund managed approximately $112 billion
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS in assets for more than 6.3 million
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund shareholders, including individual
AIM Large Cap Growth Fund AIM Asian Growth Fund investors, corporate clients and
AIM Mid Cap Equity Fund(2), (A) AIM Developing Markets Fund(2) financial institutions, as of March
AIM Select Growth Fund(3) AIM Europe Growth Fund(2) 31, 1999.
AIM Small Cap Growth Fund(2), (B) AIM European Development Fund The AIM Family of
AIM Small Cap Opportunities Fund AIM International Equity Fund Funds --Registered Trademark--
AIM Value Fund AIM Japan Growth Fund(2) if distributed nationwide, and
AIM Weingarten Fund AIM Latin American Growth Fund(2) AIM today is the 10th-largest
AIM New Pacific Growth Fund(2) mutual-fund complex in the United
GROWTH & INCOME FUNDS States in assets under management,
AIM Advisor Flex Fund GLOBAL GROWTH FUNDS according to Strategic Insight, an
AIM Advisor Large Cap Value Fund AIM Global Aggressive Growth Fund independent mutual-fund monitor.
AIM Advisor Real Estate Fund AIM Global Growth Fund
AIM Balanced Fund
AIM Basic Value Fund(2), (C) GLOBAL GROWTH & INCOME FUNDS
AIM Charter Fund AIM Global Growth & Income Fund(2)
AIM Global Utilities Fund
INCOME FUNDS
AIM Floating Rate Fund(2) GLOBAL INCOME FUNDS
AIM High Yield Fund AIM Emerging Markets Debt Fund(2), (D)
AIM High Yield Fund II AIM Global Government Income Fund(2)
AIM Income Fund AIM Global Income Fund
AIM Intermediate Government Fund AIM Strategic Income Fund(2)
AIM Limited Maturity Treasury Fund
THEME FUNDS
TAX-FREE INCOME FUNDS AIM Global Consumer Products and Services Fund(2)
AIM High Income Municipal Fund AIM Global Financial Services Fund(2)
AIM Municipal Bond Fund AIM Global Health Care Fund(2)
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Infrastructure Fund(2)
AIM Tax-Free Intermediate Fund AIM Global Resources Fund(2)
AIM Global Telecommunications and Technology Fund(2)(E)
AIM Global Trends Fund(2), (F)
</TABLE>
(1) AIM Aggressive Growth Fund reopened to new investors November 16, 1998. (2)
Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former GT
Global Funds. (3) On May 1, 1998, AIM Growth Fund was renamed AIM Select Growth
Fund. (A) On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap
Equity Fund. (B) On September 8, 1998, AIM Small Cap Equity Fund was renamed
AIM Small Cap Growth Fund. (C) On September 8, 1998, AIM America Value Fund was
renamed AIM Basic Value Fund. (D) On September 8, 1998, AIM Global High Income
Fund was renamed AIM Emerging Markets Debt Fund. (E) On June 1, 1999, AIM
Global Telecommunications Fund was renamed AIM Global Telecommunications and
Technology Fund. (F) On September 8, 1998, AIM New Dimension Fund was renamed
AIM Global Trends Fund. For more complete information about any AIM Fund(s),
including sales charges and expenses, ask your nancial consultant or securities
dealer for a free prospectus(es). Please read the prospectus(es) carefully
before you invest or send money.
[AIM LOGO APPEARS HERE]
INVEST WITH DISCIPLINE
--Registered Trademark--
