<PAGE> 1
[COVER IMAGE]
AIM
ASIAN GROWTH FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30 1999
<PAGE> 2
[COVER IMAGE]
-------------------------------------
TWO FISH JOHN S. BUNKER
THE POWER AND TURBULENCE DEPICTED IN THIS BOLD
WATERCOLOR VIVIDLY EXPRESS THE FORCES OF CHANGE
SHAPING THE ASIAN REGION. ASIA'S CITIES AND NATIONS
FACE BOTH CHALLENGE AND OPPORTUNITY AS THEY DEVEL-
OP THEIR ROLES IN THE GLOBAL ECONOMY.
-------------------------------------
AIM Asian Growth Fund is for shareholders who seek long-term growth of capital.
The Fund invests in a diversified portfolio of companies located in Asia with
strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Asian Growth 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 For periods ended April 30, 1999, average annual total returns, including
sales charges, are as follows: Class A shares: Since inception (11/3/97),
-5.86%; 1 year, -0.92%. Class B shares: Since inception (11/3/97), -5.46%; 1
year, -0.85%. Class C shares: Since inception (11/3/97), -3.03%; 1 year,
2.83%.
o MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
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.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuation 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.
o The MSCI Asia ex-Japan Index is a group of unmanaged securities from all
developed and emerging markets in Asia, excluding Japan, tracked by Morgan
Stanley Capital International.
AN INVESTMENT IN THE FUND 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 ASIAN GROWTH 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
AIM Advisors, Inc.
-------------------------------------
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 ASIAN GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
ASIA MOVES FROM CRISIS TO RECOVERY
PORTFOLIO COMPOSITION
As of April 30, 1999, based on total net assets
<TABLE>
<CAPTION>
=============================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Allgreen Properties Ltd. (Singapore) 2.99% 1. Land Development 7.12%
2. Videsh Sanchar Nigam Ltd. (India) 2.54 2. Computers (Hardware) 6.53
3. Giordano International Ltd. (Hong Kong) 2.44 3. Banks (Major Regional) 6.00
4. Development Bank of Singapore Ltd. (Singapore) 2.41 4. Banks (Regional) 5.73
5. Cosco Pacific Ltd. (Hong Kong) 2.39 5. Telecommunications (Cellular/Wireless) 5.52
6. Advanced Info Service Public Co. Ltd. (Thailand) 2.37 6. Electronics (Component /Distributors) 4.92
7. China Telecom Ltd. (Hong Kong) 2.04 7. Telephone 3.69
8. Guangdong Kelon Electrical Holdings Co. Ltd. (Hong Kong) 2.03 8. Electrical Equipment 3.56
9. Brambles Industries Ltd. (Australia) 2.03 9. Engineering & Construction 3.24
10. Compal Electronics Inc. (Taiwan) 2.03 10. Broadcasting (Television, Radio & Cable) 3.22
The Fund's portfolio is subject to change and there is no assurance the Fund
will continue to hold any particular security.
=============================================================================================================================
</TABLE>
================================================================================
GEOGRAPHIC ALLOCATION
As of 4/30/99, based on total net assets
South Korea 1.72%
Hong Kong 35.02%
Taiwan 8.81%
Philippines 8.74%
Indonesia 1.72%
Singapore 21.14%
New Zealand 1.43%
Australia 11.59%
India 4.22%
Thailand 6.37%
================================================================================
IT SEEMS THAT NEWS ABOUT ASIAN MARKETS IS GETTING BETTER. HOW DID AIM ASIAN
GROWTH FUND PERFORM DURING THE LAST SIX MONTHS?
After months of turmoil and uncertainty, Asia's markets finally made a comeback.
AIM Asian Growth Fund produced excellent total returns for the six-month period
ended April 30, 1999. Class A shares returned 25.75%; Class B, 25.58%; and Class
C, 25.52%. These returns are at net asset value, without a sales charge. See
inside the front cover for long-term performance figures. The Fund
underperformed the MSCI Asia Pacific ex-Japan Index, which returned 35.71% over
the same period.
Total net assets grew from $11.4 million on October 31, 1998, to $19.3
million on April 30, 1999.
HOW HAVE ASIAN MARKETS CHANGED IN THE LAST FEW MONTHS?
Most Asian countries appear to have survived the worst of the financial crisis
that started in 1997. Currencies have stabilized, interest rates have fallen and
inflation is benign. The markets had a strong rally during the first quarter of
1999, buoyed by this good economic news. The rally was a fairly broad one, as
well. Investors are starting to look beyond the region's blue-chip stocks to
lesser-known stocks in some areas.
Analysts' projections for 1999 earnings indicate that 1998 was the trough of
the earnings cycle in the region. Many companies have made earnest efforts to
focus on shareholder value and to allocate their resources more efficiently.
There is still much work to be done, however, in restructuring corporations and
financial institutions and restoring economic growth to healthy levels.
It seems that some banks and financial companies are struggling while others
are doing very well.
WHAT IS YOUR STRATEGY FOR SELECTING FINANCIAL STOCKS?
We prefer banks that have the highest quality loan books and whose management is
actively working to protect the banks from bad loan exposure. We have found some
very healthy banks at attractive prices, and we think they could demonstrate
strong growth in the future. Some examples of holdings include Cosco Pacific
Limited, a diversified financial group based in Hong Kong; Bank of the
Philippine Islands; and Development Bank of Singapore.
MOST OF THE PORTFOLIO IS CONCENTRATED IN JUST A FEW COUNTRIES. WHY?
You have to remember that many Asian markets are still developing. There simply
aren't that many stocks to choose from in some of the smaller countries. And
we're picky about the stocks we do select; we're looking for strong companies
with demonstrated earnings growth. That's been hard to find except in a few
places.
-------------------------------------
MOST ASIAN COUNTRIES APPEAR TO HAVE
SURVIVED THE WORST OF THE FINANCIAL
CRISIS THAT STARTED IN 1997.
-------------------------------------
See important Fund and index disclosures inside front cover.
AIM ASIAN GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
So with respect to geography, the Fund was concentrated in the more developed
markets of Hong Kong, Singapore and Australia. We've been very cautious about
less stable markets such as Indonesia and Malaysia. As of April 30, 1999, less
than one-third of the AIM Asian Growth Fund's portfolio was in developing
markets. (See the sidebar at right for a description of developing markets.)
Our largest weighting was in Hong Kong, where we have holdings in a variety
of sectors. One of our top holdings was Giordano International Ltd., a specialty
retailer that sells modern, low-cost casual clothing. The company operates or
franchises more than 600 stores in Asia, the Pacific, and the Middle East. It
plans to open outlet stores in Latin America in the next year.
We also liked Hong Kong-based China Telecom, which offers cellular phone
services to almost 5 million subscribers in several Chinese provinces.
WHAT STOCKS DID YOU LIKE IN SINGAPORE?
Technology stocks have done well in Singapore, which helped the Fund's
performance. Examples include Venture Manufacturing, Natsteel Limited, and JIT
Holdings Ltd.
The banking industry is also attractive. Singapore's government is
encouraging the industry to streamline and improve profitability. A great
example of a bank that's done just that is the Development Bank of Singapore,
one of our largest holdings. The bank has made some very judicious acquisitions
in other markets to solidify its regional strength.
WHAT MAKES AUSTRALIA ATTRACTIVE?
Australia is a bright spot in the Asia/Pacific region. It has experienced good
economic growth, strong consumer spending and good corporate earnings. The
markets have been setting record highs with regularity, which has helped the
Fund. A top Australian holding was Brambles Industries, Ltd., one of the largest
companies listed on the Australian Stock Exchange. The company is an
international materials handler, transporter and equipment services provider.
WHAT IS YOUR OUTLOOK FOR THE REGION?
We are generally optimistic about Asia. Most of the stock markets in Asia have
rebounded significantly from their lows, but it's important to be cautious for a
while, since they could head back down if countries don't experience sustainable
economic recoveries.
For instance, Korea appears to be one of the strongest recovery stories in
the region. It has worked very hard to meet the International Monetary Fund's
requirements for reform. As a result, equity markets are recovering and interest
rates are falling. But we are still watching for follow-through.
On a similar note, we are encouraged somewhat to see that Japan's economy is
showing modest signs of improvement. Nevertheless, it is still not clear whether
Japan has done enough or whether it will adhere to its best intentions for
reform. Though the AIM Asian Growth Fund does not invest in Japan, the country
does play an important role in the highly interconnected world of Asian
economics, so its future success could influence what happens throughout Asia.
HOW DOES THE REMAINDER OF 1999 LOOK FOR THE FUND?
We think company earnings generally will increase in comparison to the extremely
difficult environment we experienced in 1998. We expect to expand the number of
holdings in the portfolio as more companies start to demonstrate earnings
momentum.
UNDERSTANDING DEVELOPING MARKETS
The Asian crisis, and the various global crises that followed on its heels,
introduced many investors to the concept of developing markets. Developing (or
emerging) markets are the financial markets of countries moving from
agriculture-based economies to industrialized ones. The Philippines, Malaysia
and Thailand are examples of developing markets in Asia.
Because these markets are so new, relatively few securities trade in
them--imagine a market with as many companies as Wyoming rather than as many as
the United States. In fact, the total market capitalization of Taiwan, for
instance, is smaller than that of some large American corporations.
Of course, there's lots of room to grow. Investors are attracted to
developing markets, particularly as a diversification tool, because they offer
the potential for higher growth rates than the more mature markets of the United
States, Western Europe and Japan.
However, the flip side of great potential opportunity is great potential
risk. The small size of these markets makes them more vulnerable to the movement
of large amounts of money, as the global crises of 1997 and 1998 clearly
demonstrated. They are also very dependent on the health of more developed
countries, whose prosperity often creates the demand for the goods and services
that developing markets offer.
See important Fund and index disclosures inside front cover.
AIM ASIAN GROWTH FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
TIME FOR A FINANCIAL TUNE-UP?
GET HELP FROM YOUR FINANCIAL CONSULTANT
Keeping track of your investment may require more than just glancing at its
total value. If you haven't checked the asset allocation of your portfolio in a
while, you should. It may look different now.
OUT OF BALANCE
Say you invested $50,000 in equity funds and $50,000 in fixed-income funds on
December 31, 1993, and simply reinvested your income and capital-gains
distributions for five years, making no new investments or withdrawals. (For
this example, we're using the S&P 500 Index and Lehman Aggregate Bond Index as
indicators of stock and bond performance.*) During those five years, stocks
produced average annual total return of 24.05%, while bonds grew only 7.27% per
year on average. As a result, you'd have $146,890 xin stock funds and $71,028 in
bond funds for a 67/33 allocation on December 31, 1998. If you wanted to bring
your allocation back into balance, you'd need to shift $37,931 from stock to
fixed-income funds.
TAX CONSEQUENCES
One way to rebalance is to shift your assets among different funds: selling
equity shares and moving the proceeds into your fixed-income funds. But keep in
mind that this step may trigger tax consequences, since the movement of shares
from one fund to another represents the sale of a security.
Alternatively, you can let your asset allocation change gradually by
altering the proportions of your new investments. Simply raise the amount you
invest in fixed-income funds and lower the amount going into equity funds.
TAX-SHELTERED PLANS
Rebalancing within a tax-sheltered plan, such as a 401(k) or IRA, makes even
more sense, since there are no tax consequences for selling and buying new
shares.
PERIODIC CHECK-UPS
The key allocation to watch is your overall stock and fixed-income mix. It's
that mix that will have the biggest influence on your risk and return. However,
rebalancing doesn't mean fiddling constantly with your account or attempting to
time the market by moving money around to chase the hottest sectors. It simply
means revisiting your portfolio periodically to make sure it's still right for
you. Your financial consultant should be able to help you determine if your
current portfolio composition is meeting your short- and long-term financial
goals. That's why we recommend regular visits with your consultant as a way to
keep an eye on your nest egg.
YOU AND YOUR FINANCIAL CONSULTANT
Once a year, you and your financial consultant should meet to look ahead, review
investments and take another look at your goals, according to the Forum for
Investor Advice, a nonprofit association that educates investors about the role
and value of professional financial consultants.
TIME AND MARKETS SHIFT BALANCE
Market performance can affect the allocation of a portfolio. This example
illustrates an initial investment of $50,000 in equity funds and $50,000 in bond
funds. Five years later, the assets have shifted to $146,890 in stock funds and
$71,028 in bond funds, due to the strong performance of the stock market.
================================================================================
[PIE CHART]
12/31/93 Bond Funds 50% Stock Funds 50%
12/31/98 Bond Funds 33% Stock Funds 67%
================================================================================
*The Lehman Aggregate Bond Index is an unmanaged index generally considered
representative of corporate debt securities. The Standard & Poor's Composite
Index of 500 Stocks (S&P 500) is a group of unmanaged securities widely regarded
by investors to be representative of the stock market in general. Results shown
assume the reinvestment of dividends. An investment cannot be made in any index
listed. Unless otherwise indicated, index results include reinvested dividends
and do not reflect sales charges.
================================================================================
AIM ASIAN GROWTH FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
Financial consultants can help you with every kind of financial goal,
whether that's saving up for a house, eliminating debt or saving for a
comfortable retirement. A consultant who knows you well and understands your
needs can make all the difference in your financial future. He or she can
o evaluate your total financial situation and help you formulate a
comprehensive financial plan;
o explain different types of investments, as well as their potential risks and
benefits;
o suggest an investment portfolio that can handle changing market conditions;
and
o help you make clear-headed decisions during market volatility.
GETTING THE MOST FROM YOUR PLANNING SESSION
Your consultant needs a complete picture of your financial status to prepare a
workable plan. Come prepared to talk about your financial situation, your goals
and your feelings about risk. And don't be afraid to ask lots of questions. Good
financial consultants take investor education seriously, so take advantage of
their store of knowledge and materials.
The Forum for Investor Advice suggests that you discuss the following with
your financial consultant:
o changes in the financial markets
o changes in your goals and current situation
o retirement plans
o estate planning
o outlook for the markets
Take along our checklist (right) to get you started on the path to good
planning. And don't forget to stay in touch. Maintaining regular contact with
your financial consultant can keep you moving toward your goals, especially when
your life circumstances or financial needs change.
CONSULTATION CHECKLIST
WHAT TO BRING:
o A list of all your assets, including real estate, life insurance, stocks and
bonds, and mutual funds
o A list of all your expenses, including likely future expenses
o A timetable of your financial goals, including an estimate of when you want
to retire
WHAT TO ASK:
o How can I estimate what my goals will cost?
o How much money do I need to invest, and how often?
o How many different kinds of investments do I need?
o How do I determine my risk tolerance?
o What are the possible risks of the investments you've suggested?
o What effect will these investments have on my taxes? What forms will I need
to file?
o How often do I need to revise my plan?
o How will I know how my investments are doing?
o How can I make changes to my plan?
o What kinds of communication will I get from you?
o Where can I get more information on what we've talked about?
o What do I need to do after this meeting?
[Photo of couple talking to Financial Consultant]
AIM ASIAN GROWTH FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY INTERESTS-100.76%
AUSTRALIA-11.59%
AMP Ltd. (Insurance-Life/Health) 22,200 $ 259,293
- --------------------------------------------------------------
Brambles Industries Ltd. (Air Freight) 13,300 390,821
- --------------------------------------------------------------
BRL Hardy Ltd. (Beverages-Alcoholic) 78,300 349,751
- --------------------------------------------------------------
ERG Ltd. (Electrical Equipment)(a) 212,000 363,354
- --------------------------------------------------------------
James Hardie Industries Ltd.
(Building Materials) 144,380 348,734
- --------------------------------------------------------------
TABCORP Holdings Ltd. (Leisure Time
Products) 43,458 353,440
- --------------------------------------------------------------
Village Roadshow Ltd., 6.50% Pfd.
(Entertainment)(b) (Acquired
04/23/98; Cost $200,000) 4,000 168,000
- --------------------------------------------------------------
2,233,393
- --------------------------------------------------------------
HONG KONG-35.02%
Anhui Conch Cement Co. Ltd. (Building
Materials)(a) 508,000 58,988
- --------------------------------------------------------------
Cathay Pacific Airways (Airlines)(a) 122,000 195,968
- --------------------------------------------------------------
China Telecom Ltd.
(Telecommunications-Cellular/
Wireless)(a) 172,000 392,788
- --------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 680,000 460,601
- --------------------------------------------------------------
Dah Sing Financial Group
(Banks-Regional)(a) 116,800 368,449
- --------------------------------------------------------------
Dao Heng Bank Group Ltd.
(Banks-Regional)(a) 86,000 349,515
- --------------------------------------------------------------
Esprit Asia Holdings Ltd.
(Retail-Stores) 620,000 363,965
- --------------------------------------------------------------
Giordano International Ltd.
(Retail-Specialty-Apparel) 1,012,000 470,045
- --------------------------------------------------------------
Guangdong Kelon Electrical Holdings
Co. Ltd. (Household Furniture &
Appliances) 436,000 390,956
- --------------------------------------------------------------
Hengan International Group Co. Ltd.
(Consumer-Jewelry, Novelties, &
Gifts)(a) 916,000 307,273
- --------------------------------------------------------------
HKR International Ltd. (Land
Development) 516,600 383,247
- --------------------------------------------------------------
Hutchison Whampoa Ltd. (Retail-Food
Chains) 37,000 331,774
- --------------------------------------------------------------
Johnson Electric Holdings Ltd.
(Electrical Equipment) 108,000 322,575
- --------------------------------------------------------------
Kerry Properties Ltd. (Land
Development)(a) 292,000 325,878
- --------------------------------------------------------------
Li & Fung Ltd.(Distributors-Food &
Health) 145,000 355,449
- --------------------------------------------------------------
Ng Fung Hong Ltd. (Foods) 386,000 373,512
- --------------------------------------------------------------
Shenzhen Expressway Co. Ltd.
(Services-Commercial & Consumer) 1,530,000 313,866
- --------------------------------------------------------------
Television Broadcasts Ltd.
(Broadcasting-Television, Radio &
Cable) 85,000 345,450
- --------------------------------------------------------------
Wing Hang Bank Ltd. (Banks-Major
Regional) 109,500 334,826
- --------------------------------------------------------------
Zhehuang Expressway Co. Ltd.
(Services-Commercial & Consumer) 1,838,000 303,537
- --------------------------------------------------------------
6,748,662
- --------------------------------------------------------------
INDIA-4.22%
ITC Ltd. (Tobacco) 11,500 323,725
- --------------------------------------------------------------
Videsh Sanchar Nigam Ltd.
(Telecommunications-Cellular/Wireless) 40,800 $ 489,600
- --------------------------------------------------------------
813,325
- --------------------------------------------------------------
INDONESIA-1.72%
Gulf Indonesia Resources Ltd.
(Oil-International Integrated)(a) 32,200 332,062
- --------------------------------------------------------------
NEW ZEALAND-1.43%
Sky Network Television Ltd.
(Broadcasting-Television, Radio &
Cable)(a) 112,400 185,718
- --------------------------------------------------------------
Sky Network Television Ltd.-ADR
(Broadcasting-Television, Radio &
Cable)(a) 5,400 89,100
- --------------------------------------------------------------
274,818
- --------------------------------------------------------------
PHILIPPINES-8.74%
Bank of the Philippine Islands
(Banks-Major Regional) 113,110 356,955
- --------------------------------------------------------------
Equitable Banking Corp.
(Banks-Foreign)(a) 129,000 300,237
- --------------------------------------------------------------
International Container Terminal
Services, Inc. (Air Freight)(a) 1,935,000 193,373
- --------------------------------------------------------------
Manila Electric Co. (Electric Power) 78,300 298,580
- --------------------------------------------------------------
Philippine Long Distance Telephone
Co. (Telephone) 7,840 253,602
- --------------------------------------------------------------
SM Prime Holdings Inc. (Land
Development) 1,244,900 281,555
- --------------------------------------------------------------
1,684,302
- --------------------------------------------------------------
SINGAPORE-21.14%
Allgreen Properties Ltd.
(Homebuilding)(a) 950,000 576,844
- --------------------------------------------------------------
Datacraft Asia Ltd. (Communications
Equipment) 119,700 375,858
- --------------------------------------------------------------
Development Bank of Singapore Ltd.
(Banks-Major Regional) 43,800 464,776
- --------------------------------------------------------------
JIT Holdings Ltd.
(Computers-Peripherals)(a) 315,000 343,542
- --------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction)(a) 117,000 333,832
- --------------------------------------------------------------
Keppel Land Ltd. (Land Development) 229,000 382,049
- --------------------------------------------------------------
Keppel Telecommunications &
Transportation Ltd.
(Telecommunications-Cellular/Wireless)(a) 171,000 180,446
- --------------------------------------------------------------
Natsteel Electronics Ltd.
(Computers-Hardware) 57,500 193,215
- --------------------------------------------------------------
NatSteel Ltd. (Iron & Steel) 220,000 332,017
- --------------------------------------------------------------
OMNI Industries Ltd.
(Electronics-Component
Distributors)(a) 602,000 319,401
- --------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing-Newspapers) 19,000 280,021
- --------------------------------------------------------------
Venture Manufacturing Ltd.
(Electronics-Component
Distributors) 53,000 290,574
- --------------------------------------------------------------
4,072,575
- --------------------------------------------------------------
SOUTH KOREA-1.72%
Pohang Iron & Steel Co. Ltd. ADR
(Iron & Steel) 12,900 332,175
- --------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TAIWAN-8.81%
ASE Test Ltd.-ADR
(Electronics-Semiconductors)(a) 16,000 $ 336,000
- --------------------------------------------------------------
Compal Electronics Inc.
(Computers-Hardware)(a) 113,000 390,489
- --------------------------------------------------------------
CTCI Corp. (Engineering &
Construction)(a) 230,000 291,193
- --------------------------------------------------------------
Hon Hai Precision Industry
(Electronics-Component
Distributors)(a) 62,000 337,492
- --------------------------------------------------------------
Inventec Co., Ltd.
(Computers-Hardware)(a) 104,000 341,896
- --------------------------------------------------------------
1,697,070
- --------------------------------------------------------------
THAILAND-6.37%
Advanced Info Service Public Co. Ltd.
(Telephone)(a) 43,000 457,027
- --------------------------------------------------------------
PTT Exploration and Production Public
Co. Ltd. (Oil & Gas-Exploration &
Production) 41,700 384,715
- --------------------------------------------------------------
Siam Commercial Bank, 5.25% Pfd. &
Wts. (expiring 05/10/02)
(Banks-Regional)(a)(b) (Acquired
04/29/99; Cost $386,022) 550,000 $ 385,757
- --------------------------------------------------------------
1,227,499
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$15,713,905) 19,415,881
- --------------------------------------------------------------
PRINCIPAL
AMOUNT
REPURCHASE AGREEMENT-4.91%(C)
West LB Securities Americas, Inc.,
4.88%, 05/03/99(d) (Cost $945,750) $ 945,750 945,750
- --------------------------------------------------------------
TOTAL INVESTMENTS-105.67% 20,361,631
- --------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS-(5.67%) (1,091,780)
- --------------------------------------------------------------
NET ASSETS-100.00% $19,269,851
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Pfd. - Preferred
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 aggregate market
value of these securities at 04/30/99 was $553,757 which represented 2.87%
of the Fund's net assets.
(c) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value 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.
(d) 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
$16,659,655) $20,361,631
- -----------------------------------------------------------
Foreign currencies, at value (cost $83,874) 83,405
- -----------------------------------------------------------
Receivables for:
Capital stock sold 567,063
- -----------------------------------------------------------
Dividends and interest 57,644
- -----------------------------------------------------------
Investment for deferred compensation plan 3,729
- -----------------------------------------------------------
Other assets 25,804
- -----------------------------------------------------------
Total assets 21,099,276
- -----------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 1,131,273
- -----------------------------------------------------------
Capital stock reacquired 671,810
- -----------------------------------------------------------
Deferred compensation 3,729
- -----------------------------------------------------------
Accrued administrative services fees 7,317
- -----------------------------------------------------------
Accrued directors' fees 2,339
- -----------------------------------------------------------
Accrued distribution fees 8,241
- -----------------------------------------------------------
Accrued transfer agent fees 1,451
- -----------------------------------------------------------
Accrued operating expenses 3,265
- -----------------------------------------------------------
Total liabilities 1,829,425
- -----------------------------------------------------------
Net assets applicable to shares outstanding $19,269,851
- -----------------------------------------------------------
NET ASSETS:
Class A $12,406,627
===========================================================
Class B $ 5,181,015
===========================================================
Class C $ 1,682,209
===========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- -----------------------------------------------------------
Outstanding 1,289,155
===========================================================
Class B:
Authorized 200,000,000
- -----------------------------------------------------------
Outstanding 541,572
===========================================================
Class C:
Authorized 200,000,000
- -----------------------------------------------------------
Outstanding 176,303
===========================================================
Class A:
Net asset value and redemption price per
share $ 9.62
- -----------------------------------------------------------
Offering price per share:
(Net asset value of $9.62 / 94.50%) $ 10.18
===========================================================
Class B:
Net asset value and offering price per share $ 9.57
===========================================================
Class C:
Net asset value and offering price per share $ 9.54
===========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $3,512 foreign withholding
tax) $ 103,542
- -----------------------------------------------------------
Interest 17,790
- -----------------------------------------------------------
Total investment income 121,332
- -----------------------------------------------------------
EXPENSES:
Advisory fees 64,699
- -----------------------------------------------------------
Administrative services fees 42,724
- -----------------------------------------------------------
Custodian fees 22,181
- -----------------------------------------------------------
Directors' fees 4,004
- -----------------------------------------------------------
Distribution fees-Class A 15,987
- -----------------------------------------------------------
Distribution fees-Class B 17,326
- -----------------------------------------------------------
Distribution fees-Class C 5,103
- -----------------------------------------------------------
Transfer agent fees-Class A 26,101
- -----------------------------------------------------------
Transfer agent fees-Class B 10,102
- -----------------------------------------------------------
Transfer agent fees-Class C 3,001
- -----------------------------------------------------------
Registration and filing fees 28,699
- -----------------------------------------------------------
Other 25,282
- -----------------------------------------------------------
Total expenses 265,209
- -----------------------------------------------------------
Less: Fees waived and reimbursed by advisor (112,117)
- -----------------------------------------------------------
Expenses paid indirectly (335)
- -----------------------------------------------------------
Net expenses 152,757
- -----------------------------------------------------------
Net investment income (loss) (31,425)
- -----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT
SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities 183,764
- -----------------------------------------------------------
Foreign currencies (14,719)
- -----------------------------------------------------------
169,045
- -----------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities 3,413,744
- -----------------------------------------------------------
Foreign currencies (5,909)
- -----------------------------------------------------------
3,407,835
- -----------------------------------------------------------
Net gain from investment securities and
foreign currencies 3,576,880
- -----------------------------------------------------------
Net increase in net assets resulting from
operations $3,545,455
===========================================================
</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 period November 3, 1997 (date
operations commenced)
through October 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (31,425) $ 30,244
- -----------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies 169,045 (1,687,076)
- -----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
foreign currencies 3,407,835 288,673
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 3,545,455 (1,368,159)
- -----------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (43,024) --
- -----------------------------------------------------------------------------------------
Class B (3,910) --
- -----------------------------------------------------------------------------------------
Class C (898) --
- -----------------------------------------------------------------------------------------
Share transactions-net:
Class A 2,391,140 8,755,042
- -----------------------------------------------------------------------------------------
Class B 1,255,688 3,340,169
- -----------------------------------------------------------------------------------------
Class C 693,280 705,068
- -----------------------------------------------------------------------------------------
Net increase in net assets 7,837,731 11,432,120
- -----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 11,432,120 --
- -----------------------------------------------------------------------------------------
End of period $19,269,851 $11,432,120
=========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $17,121,926 $12,781,818
- -----------------------------------------------------------------------------------------
Undistributed net investment income (loss) (34,222) 45,035
- -----------------------------------------------------------------------------------------
Undistributed net realized (loss) from investment
securities and foreign currencies (1,514,361) (1,683,406)
- -----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 3,696,508 288,673
- -----------------------------------------------------------------------------------------
$19,269,851 $11,432,120
=========================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
April 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Asian Growth Fund (the "Fund") is a series portfolio of AIM International
Funds, Inc. (the "Company"). The Company is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of six separate
portfolios. The Fund commenced operations on November 3, 1997. The Fund
currently offers three different classes of shares: Class A shares, Class B
shares and Class C shares. Class A shares are sold with a front-end sales
charge. Class B shares and Class C shares are sold with a contingent deferred
sales charge. Matters affecting each portfolio or class are voted on exclusively
by the shareholders of such portfolio or class. The assets, liabilities and
operations of each portfolio are accounted for separately. Information presented
in these financial statements pertains only to the Fund. The Fund's investment
objective is to provide 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 securities.
Securities reported on the NASDAQ National Market System are valued at the
last sales price on the valuation date or
9
<PAGE> 12
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. 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.
C. Foreign Currency Contracts--A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
D. Securities Transactions, Investment Income and Distributions--Securities
transactions are accounted for on a trade date basis. Realized gains or
losses are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on an accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date and are paid annually.
E. Federal Income Taxes--The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements. The Fund has a capital loss
carryforward of $1,630,826 (which may be carried forward to offset future
taxable gains, if any) which expires, if not previously utilized, in the
year 2006.
F. Expenses--Distribution and transfer agency expenses directly attributable to
a class of shares are charged to that class' operations. All other expenses
which are attributable to more than one class are allocated among the
classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.95% 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. Under the terms of a
sub-advisory agreement between AIM and INVESCO Global Asset Management Limited
("IGAM"), AIM pays IGAM a fee at an annual rate of 0.20% of the first $500
million of the Fund's average daily net assets and 0.175% of the Fund's average
daily net assets over $500 million. During the six months ended April 30, 1999,
AIM waived advisory fees of $64,699 and reimbursed expenses of $47,418.
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 $42,724 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 six months ended April 30,
1999, AFS was paid $24,146 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 Class C Plan, pays AIM Distributors compensation at
the annual rate of 0.35% 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 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
10
<PAGE> 13
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 $15,987, $17,326 and $5,103, respectively, as compensation
under the Plans.
AIM Distributors received commissions of $10,167 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 $528 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
$1,316 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) and reductions in custodian
fees of $140 and $195, respectively, under an expense offset arrangement. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $335 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) 10% of total assets. 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
$12,596,578 and $7,116,869, 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 $3,915,818
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (328,584)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $3,587,234
=========================================================
</TABLE>
Costs of investments for tax purposes is $16,774,397.
NOTE 7-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1999 and the period November 3, 1997 (date operations commenced)
through 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 2,312,689 $18,870,518 2,150,231 $17,226,640
- ---------------------------------------------------------------------------------
Class B 448,689 3,711,080 516,509 4,177,886
- ---------------------------------------------------------------------------------
Class C 469,198 3,710,231 268,694 2,084,897
- ---------------------------------------------------------------------------------
Issued as
reinvestment
of dividends:
Class A 5,228 39,837 -- --
- ---------------------------------------------------------------------------------
Class B 494 3,756 -- --
- ---------------------------------------------------------------------------------
Class C 118 897 -- --
- ---------------------------------------------------------------------------------
Reacquired:
Class A (2,032,690) (16,519,214) (1,146,303) (8,471,598)
- ---------------------------------------------------------------------------------
Class B (304,625) (2,459,148) (119,495) (837,717)
- ---------------------------------------------------------------------------------
Class C (383,062) (3,017,849) (178,645) (1,379,829)
- ---------------------------------------------------------------------------------
516,039 $ 4,340,108 1,490,991 $12,800,279
=================================================================================
</TABLE>
11
<PAGE> 14
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A, Class B and
Class C capital stock outstanding during the six months ended April 30, 1999 and
the period November 3, 1997 (date operations commenced) through October 31,
1998.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
------------------------- ------------------------- -------------------------
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1999 1998 1999 1998 1999 1998
--------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.69 $ 10.00 $ 7.63 $ 10.00 $ 7.61 $ 10.00
- ------------------------------------------ ------- ------- ------ ------- ------ -------
Income from investment operations:
Net investment income (loss) (0.01)(a) 0.05 (0.04)(a) (0.01) (0.03)(a) (0.01)
- ------------------------------------------ ------- ------- ------ ------- ------ -------
Net gains (losses) on securities (both
realized and unrealized) 1.98 (2.36) 1.99 (2.36) 1.97 (2.38)
- ------------------------------------------ ------- ------- ------ ------- ------ -------
Total from investment operations 1.97 (2.31) 1.95 (2.37) 1.94 (2.39)
- ------------------------------------------ ------- ------- ------ ------- ------ -------
Less distributions:
Dividends from net investment income (0.04) -- (0.01) -- (0.01) --
- ------------------------------------------ ------- ------- ------ ------- ------ -------
Net asset value, end of period $ 9.62 $ 7.69 $ 9.57 $ 7.63 $ 9.54 $ 7.61
========================================== ======= ======= ====== ======= ====== =======
Total return(b) 25.75% (23.10)% 25.58% (23.70)% 25.52% (23.90)%
========================================== ======= ======= ====== ======= ====== =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $12,407 $ 7,716 $5,181 $ 3,030 $1,682 $ 686
========================================== ======= ======= ====== ======= ====== =======
Ratio of expenses to average net assets(c) 2.01%(d) 1.92%(e) 2.72%(d) 2.80%(e) 2.72%(d) 2.80%(e)
========================================== ======= ======= ====== ======= ====== =======
Ratio of net investment income (loss) to
average net assets(f) (0.23)%(d) 0.70%(e) (0.94)%(d) (0.18)%(e) (0.94)%(d) (0.18)%(e)
========================================== ======= ======= ====== ======= ====== =======
Portfolio turnover rate 55% 79% 55% 79% 55% 79%
========================================== ======= ======= ====== ======= ====== =======
</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
3.65% (annualized) and 4.88% (annualized) for Class A for 1999-1998, 4.37%
(annualized) and 5.75% (annualized) for Class B for 1999-1998; and 4.36%
(annualized) and 5.75% (annualized) for Class C for 1999-1998.
(d) Ratios are annualized and based on average net assets of $9,210,785,
$3,493,851 and $1,029,087 for Class A, 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 (1.87)% (annualized) and (2.27)% (annualized) for Class
A for 1999-1998, (2.59)% (annualized) and (3.15)% (annualized) for Class B
for 1999-1998, (2.58)% (annualized) and (3.15)% (annualized) for Class C
for 1999-1998.
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 SUB-ADVISOR
Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer INVESCO Global Asset Management Limited
Cedar House
Edward K. Dunn Jr. Robert G. Alley 41 Cedar Avenue
Chairman, Mercantile Mortgage Corp.; Vice President Hamilton, HM12 Bermuda
Formerly Vice Chairman and President,
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox TRANSFER AGENT
President, Mercantile Bankshares Vice President
A I M Fund Services, Inc.
Jack Fields Edgar M. Larsen P.O. Box 4739
Chief Executive Officer Vice President Houston, TX 77210-4739
Texana Global, Inc.;
Formerly Member Mary J. Benson CUSTODIAN
of the U.S. House of Representatives Assistant Vice President and
Assistant Treasurer State Street Bank and Trust Company
Carl Frischling 225 Franklin Street
Partner Sheri Morris Boston MA 02110
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and
Assistant Treasurer COUNSEL TO THE FUND
Robert H. Graham
President and Chief Executive Officer Renee A. Friedli Ballard Spahr
A I M Management Group Inc. Assistant Secretary Andrews & Ingersoll, LLP
1735 Market Street
Prema Mathai-Davis P. Michelle Grace Philadelphia, PA 19103
Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary
Commissioner, New York City Dept. for the COUNSEL TO THE DIRECTORS
Aging; and member of the Board of Directors, Jeffrey H. Kupor
Metropolitan Transportation Authority of Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP
New York State 919 Third Avenue
Nancy L. Martin New York, NY 10022
Lewis F. Pennock Assistant Secretary
Attorney DISTRIBUTOR
Ofelia M. Mayo
Louis S. Sklar Assistant Secretary A I M Distributors, Inc.
Executive Vice President 11 Greenway Plaza
Hines Interests Lisa A. Moss Suite 100
Limited Partnership Assistant Secretary Houston, TX 77046
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 INTERNATIONAL GROWTH FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Advisor International Value Fund leadership in the mutual-fund industry
AIM Blue Chip Fund AIM Asian Growth Fund since 1976 and managed approximately $112
AIM Capital Development Fund AIM Developing Markets Fund(2) billion in assets for more than 6.3 million
AIM Constellation Fund AIM Europe Growth Fund(2) shareholders, including individual investors,
AIM Dent Demographic Trends Fund AIM European Development Fund corporate clients and financial institutions,
AIM Large Cap Growth Fund AIM International Equity Fund as of March 31, 1999.
AIM Mid Cap Equity Fund(2), (A) AIM Japan Growth Fund(2) The AIM Family of Funds--Registered Trademark--
AIM Select Growth Fund(3) AIM Latin American Growth Fund(2) is distributed nationwide, and AIM today is the
AIM Small Cap Growth Fund(2), (B) AIM New Pacific Growth Fund(2) 10th-largest mutual-fund complex in the U.S. in
AIM Small Cap Opportunities Fund assets under management, according to Strategic
AIM Value Fund GLOBAL GROWTH FUNDS Insight, an independent mutual-fund monitor.
AIM Weingarten Fund AIM Global Aggressive Growth Fund
GROWTH & INCOME FUNDS AIM Global Growth Fund
AIM Advisor Flex Fund
AIM Advisor Large Cap Value Fund GLOBAL GROWTH & INCOME FUNDS
AIM Advisor Real Estate Fund AIM Global Growth & Income Fund(2)
AIM Balanced Fund AIM Global Utilities Fund
AIM Basic Value Fund(2), (C)
AIM Charter Fund GLOBAL INCOME FUNDS
AIM Emerging Markets Debt Fund(2), (D)
INCOME FUNDS AIM Global Government Income Fund(2)
AIM Floating Rate Fund(2) AIM Global Income Fund
AIM High Yield Fund AIM Strategic Income Fund(2)
AIM High Yield Fund II
AIM Income Fund THEME FUNDS
AIM Intermediate Government Fund AIM Global Consumer Products and Services Fund(2)
AIM Limited Maturity Treasury Fund AIM Global Financial Services Fund(2)
AIM Global Health Care Fund(2)
TAX-FREE INCOME FUNDS AIM Global Infrastructure Fund(2)
AIM High Income Municipal Fund AIM Global Resources Fund(2)
AIM Municipal Bond Fund AIM Global Telecommunications and Technology Fund(2), (E)
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Trends Fund(2), (F)
AIM Tax-Free Intermediate Fund
MONEY MARKET FUNDS
AIM Money Market Fund
AIM Tax-Exempt Cash Fund
</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 financial consultant or securities dealer
for a free prospectus(es). Please read the prospectus(es) carefully before you
invest or send money.
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