<PAGE> 1
[COVER IMAGE]
AIM
GLOBAL AGGRESSIVE GROWTH FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1999
<PAGE> 2
[COVER IMAGE]
--------------------------------------
LAND BY JENNIFER WATES
IN THIS AGE OF WORLDWIDE EXCHANGE, AN OCEAN'S DISTANCE
BETWEEN CONTINENTS IS NO LONGER THE BARRIER TO TRADE THAT
IT ONCE WAS. TODAY, THE EARTH'S MANY LANDS ARE LINKED THROUGH
A GLOBAL ECONOMY THAT IS SHAPING THE FUTURE OF THE WORLD'S
PEOPLE. THE PAINTING ON THE COVER OF THIS REPORT, RENDERED
IN VIBRANT COLORS AND BOLD BRUSH STROKES, PAYS TRIBUTE TO
OUR WORLD AND ITS RICHES.
-------------------------------------
AIM Global Aggressive Growth Fund is for shareholders who seek long-term growth
of capital. The fund invests in a portfolio of global equity securities of
small-capitalization companies with above-average earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Aggressive Growth Fund's performance figures are historical and
reflect reinvestment of all distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B shares will differ from that of Class
A shares due to differences in sales charge structure and expenses.
o Past performance cannot guarantee comparable future results.
o The fund's average annual total returns, including sales charges, for the
periods ended 4/30/99 are as follows: For Class A shares, one year, -11.33%;
since inception (9/15/94), 12.78%. For Class B shares, one year, -12.07%;
since inception (9/15/94), 13.09%. For Class C shares, one year, -8.37%;
since inception (8/4/97), -1.89%.
o The fund's investment return and principal value will fluctuate, so 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 Dow Jones Industrial Average (the Dow) is a price-weighted average of 30
actively traded primarily industrial stocks.
o The Russell 2000 Stock Index is an unmanaged index generally considered
representative of small-capitalization stocks.
o The Standard & Poor's Midcap 400 Index (S&P 400) is an unmanaged index
comprising common stocks of approximately 400 midcapitalization companies.
o The SMAX Index measures the performance of predominantly German small- and
mid-capitalization company stocks.
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 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 GLOBAL AGGRESSIVE 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
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
-------------------------------------
THE FINANCIAL INDUSTRY
HAS BEEN SEEN AS A
LEADER IN PLANNING FOR
YEAR 2000 CONCERNS.
-------------------------------------
AIM GLOBAL AGGRESSIVE GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
SMALL-, MID-CAP STOCKS REBOUND,
BOOST FUND PERFORMANCE
================================================================================
FUND REBOUNDS STRONGLY
Total return,
excluding sales charges
4/30/98-10/31/98 10/31/98-4/30/99
- --------------------------------------------------------------------------------
CLASS A SHARES -18.99% 14.93%
CLASS B SHARES -19.25 14.63
CLASS C SHARES -19.25 14.63
================================================================================
GLOBALLY, THE PERFORMANCE OF SMALL- AND MID-CAP STOCKS GENERALLY IMPROVED DURING
THE REPORTING PERIOD. HOW DID THIS AFFECT AIM GLOBAL AGGRESSIVE GROWTH FUND?
An upswing in the performance of small- and mid-cap stocks, particularly in the
United States, helped the fund post solid gains for the six-month reporting
period. Excluding sales charges, total returns were 14.93% for Class A shares
and 14.63% for Class B and C shares.
HOW DID THE U.S. STOCK MARKET PERFORM DURING THE REPORTING PERIOD?
In the United States, a milestone was achieved on March 29, 1999, when the
venerable Dow Jones Industrial Average (the Dow) closed above the 10,000 mark
for the first time. However, this record-setting performance masked a very
narrow market. The stocks of a handful of extremely large firms--the so-called
"mega-caps"--along with the equities of fledgling Internet companies, including
several that have yet to realize a profit, outperformed other issues by a wide
margin.
In a world of economic uncertainty, exemplified by the Brazilian currency
crisis in January, U.S. investors favored mega-cap stocks because of their
relative safety and liquidity. Internet stocks were attractive because of the
growth of the Web as a medium of commerce, communication and entertainment.
Toward the end of the reporting period, however, relatively expensive mega-cap
and Internet stocks lost some of their luster. Investors shifted their focus to
mid- and small-cap stocks and to equities that were less expensive than the rest
of the market.
HOW ABOUT EUROPE AND THE REST OF THE WORLD?
After strong performance in 1998, European stocks were basically flat during the
first months of 1999. As the new year opened, once robust economic growth began
to slow in Europe. In this environment, large-cap stocks continued to be the
market leaders. Investors favored the stocks of larger European companies
because of their greater earnings potential, stemming from their ability to
market their products on a global basis and their restructuring efforts.
Additionally, the strength of the dollar relative to the euro, introduced in
11 European countries on January 1, 1999, hurt returns for U.S. investors in
European stocks.
In Asia, signs of economic recovery in South Korea, Singapore and several
other developing countries boosted stocks. And despite Japan's continuing
economic woes, its stock market was among the top performers for the reporting
period. In Latin America, stocks in Mexico soared as the country benefited from
robust economic growth in the United States, its chief trading partner.
WORLDWIDE, HOW DID SMALL- AND MID-CAP STOCKS PERFORM?
When the reporting period opened, small- and mid-cap stocks in the United States
were rebounding strongly following a steep decline that lasted several months.
The recovery continued into 1999, before sustaining a significant setback in
February when investors became concerned that the Federal Reserve Board (the
Fed) might raise interest rates to slow strong economic growth and contain
inflation.
However, when it became evident that inflation was minimal and the Fed would
likely leave interest rates unchanged for the short term, small- and mid-cap
stocks rallied in April. For the reporting period, the Russell 2000 Index, which
measures the performance of U.S. small-cap stocks, posted gains of 15.16%, while
the Standard & Poor's Midcap 400 Index registered returns of 18.86%. Although
these gains were significant, they were well below the 26.62% total return of
the Dow, which reflects the performance of the stocks of 30 of the largest U.S.
companies.
In Europe, small- and mid-cap technology stocks and specialty retail stocks
performed quite well. In Japan, small caps actually outperformed large caps,
largely because of the reluctance of the nation's biggest companies to deal with
their economic problems and implement cost-cutting measures.
ON A GLOBAL BASIS, HOW WAS THE FUND INVESTED?
At the end of the reporting period, the fund held 34% of its total net assets in
U.S. and Canadian stocks and 35% in European equities. The fund had about a 13%
exposure to Asian markets, with Japanese securities making up 6% of the
portfolio. The
-------------------------------------
AN UPSWING IN THE PERFORMANCE OF
SMALL- AND MID-CAP STOCKS, PARTICULARLY
IN THE UNITED STATES, HELPED
THE FUND POST SOLID GAINS FOR
THE SIX-MONTH REPORTING PERIOD.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM GLOBAL AGGRESSIVE GROWTH FUND
<PAGE> 5
PORTFOLIO COMPOSITION
As of 4/30/99, based on total net assets
<TABLE>
<CAPTION>
========================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
- --------------------------------------------------------------------------------------------------------
<S> <C>
1. JDS Fitel Inc. (Canada) 1.91% 1. Computer (Software & Services) 8.27%
2. YPF Sociedad Anonima-ADR (Argentina) 1.62 2. Services (Commercial &
3. Bellsystems 24, Inc. (Japan) 1.61 Consumer) 7.75
4. Fomento Economico Mexicano, 3. Telecommunications
S.A. de C.V. (Mexico) 1.20 (Cellular & Wireless) 3.99
5. Tomra Systems A.S.A. (Norway) 1.16 4. Manufacturing (Specialized) 3.21
6. Tieto Corp OYJ (Finland) 1.06 5. Services (Computer Systems) 3.16
7. Cable & Wireless 6. Telephone 3.10
Communications PLC (United Kingdom) 1.06 7. Communications Equipment 2.93
8. CGI Group, Inc. (Canada) 1.01 8. Electronics (Semiconductors) 2.91
9. Provident Financial PLC 9. Restaurants 2.74
(United Kingdom) 0.97 10. Broadcasting
10. Aderans Co. Ltd. (Japan) 0.96 (Television, Radio & Cable) 2.34
The fund's portfolio is subject to change, and there is no assurance the fund will continue to hold any
particular security.
========================================================================================================
</TABLE>
stocks of companies based in Mexico constituted 7% of the fund's holdings.
Developing markets represented about 16% of the portfolio.
WHAT MADE THE EUROPEAN AND U.S. MARKETS ATTRACTIVE?
Both markets benefited from minimal inflation and low interest rates. Moreover,
many smaller companies in the United States and Europe continued to report
impressive earnings growth. Additionally, small-cap stocks in both markets
tended to be less expensive than their large-cap counterparts.
In Europe, the population was changing its investment habits and becoming
more inclined to put money into equities. A number of new indexes were
introduced to track mid- and small-cap stocks. In Germany, for example, the SMAX
Index made its debut just before the end of the reporting period. Such new
indexes are intended to make small- and mid-cap stocks more familiar to
investors, thereby enhancing their marketability.
In the United States, the economy defied predictions that it was about to
slow and grew at a torrid pace. With nearly full employment and rising wages,
consumer spending was robust. That enhanced the earnings prospects for many
small- and mid-cap companies, which tend to transact most of their business in
the United States.
WHAT WERE THE FUND'S MOST SIGNIFICANT INDUSTRY WEIGHTINGS?
At the close of the reporting period, technology stocks composed about 25% of
the portfolio, while consumer cyclicals made up about 23%. Technology companies
benefited from the Internet boom and a growing demand for personal computers.
Consumer-cyclical firms, especially retailers, got a boost from more efficient
management and growth in sales over the Internet.
CAN YOU TELL US ABOUT SOME OF THE FUND'S MAJOR HOLDINGS?
The fund's top holdings as of April 30, 1999, included JDS Fitel, a Canadian
manufacturer and distributor of fiber-optic components and modules, instruments
and installation equipment used for signal processing; YPF Sociedad Anonima, an
Argentine integrated oil and gas company; and Bellsystems 24, one of Japan's top
telemarketing companies.
Other key stocks in the portfolio included Tomra Systems, a Norwegian maker
and supplier of so-called "reverse vending machines," employed to collect used
beverage containers for recycling or reuse, and Cable & Wireless Communications,
the largest cable and second-largest phone company in the United Kingdom.
Canada-based CGI Group, another top holding, is one of the leading providers of
information technology services in North America.
WHAT IS YOUR OUTLOOK?
The reasons for investing in Europe remain compelling. While economic growth has
slowed in recent months, consumer confidence is high. Moreover, with a
population larger than that of the United States, Europe has a larger potential
customer base. Corporate restructuring and mergers continue unabated, while
inflation and interest rates remain low. All these trends bode well for European
companies, including small- and mid-sized firms.
In the United States, many smaller companies are enjoying greater earnings
growth than their larger counterparts. Additionally, small- and mid-cap stocks
continue to be reasonably priced in comparison to large-cap issues. Economic
growth is strong, and interest rates are low. One ominous development was the
dramatic and unexpected rise in the inflation rate in April. That prompted the
Fed, at its first meeting after the end of the reporting period, to shift to a
bias of raising interest rates. If the Fed actually does tighten monetary
policy, it could have a negative impact on stock performance.
While several Asian and Latin American economies are showing signs of
improvement, the recovery is fragile. And Japan's economic outlook remains
uncertain. We will continue to monitor the situation closely and invest only in
companies with solid, long-term earnings prospects.
See important fund and index disclosures inside front cover.
AIM GLOBAL AGGRESSIVE GROWTH FUND
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-26.31%
BIOTECHNOLOGY-0.25%
IDEXX Laboratories, Inc.(a) 184,500 $ 4,174,313
- ---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO & CABLE)-0.85%
Heftel Broadcasting Corp.(a) 260,000 14,137,500
- ---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-2.57%
Comverse Technology, Inc.(a) 150,000 9,618,750
- ---------------------------------------------------------------
Dycom Industries, Inc.(a) 210,800 9,630,925
- ---------------------------------------------------------------
Harmonic Inc.(a) 250,000 11,406,250
- ---------------------------------------------------------------
Uniphase Corp.(a) 100,000 12,137,500
- ---------------------------------------------------------------
42,793,425
- ---------------------------------------------------------------
COMPUTERS (NETWORKING)-0.46%
International Network Services(a) 200,000 7,600,000
- ---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.01%
Jabil Circuit, Inc.(a) 174,000 8,101,875
- ---------------------------------------------------------------
Network Appliance, Inc.(a) 173,200 8,714,125
- ---------------------------------------------------------------
16,816,000
- ---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-1.98%
Citrix Systems, Inc.(a) 231,600 9,843,000
- ---------------------------------------------------------------
Concord Communications, Inc.(a) 88,400 3,955,900
- ---------------------------------------------------------------
Engineering Animation, Inc.(a) 115,400 1,716,575
- ---------------------------------------------------------------
USWeb Corp.(a) 350,000 7,853,125
- ---------------------------------------------------------------
Veritas Software Corp.(a) 134,250 9,531,750
- ---------------------------------------------------------------
32,900,350
- ---------------------------------------------------------------
CONSUMER (JEWELRY, NOVELTIES & GIFTS)-0.20%
Action Performance Companies, Inc.(a) 100,000 3,387,500
- ---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.25%
Patterson Dental Co.(a) 115,350 4,159,809
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT-0.55%
Sanmina Corp.(a) 136,700 9,073,463
- ---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-2.67%
Dallas Semiconductor Corp. 115,000 4,887,500
- ---------------------------------------------------------------
Micrel, Inc.(a) 97,900 5,763,863
- ---------------------------------------------------------------
Microchip Technology, Inc.(a) 200,000 7,000,000
- ---------------------------------------------------------------
PMC-Sierra, Inc.(a) 100,000 9,587,500
- ---------------------------------------------------------------
SDL, Inc.(a) 65,000 7,101,250
- ---------------------------------------------------------------
Semtech Corp.(a) 100,000 3,262,500
- ---------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 148,500 $ 6,877,406
- ---------------------------------------------------------------
44,480,019
- ---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-0.21%
Novellus Systems, Inc.(a) 72,200 3,411,450
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC & OTHER)-0.51%
Alpharma, Inc.-Class A 100,000 2,950,000
- ---------------------------------------------------------------
Medicis Pharmaceutical
Corp.-Class A(a) 225,000 5,470,313
- ---------------------------------------------------------------
8,420,313
- ---------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-0.35%
Province Healthcare Co.(a) 101,800 2,265,050
- ---------------------------------------------------------------
Universal Health Services,
Inc.-Class B(a) 69,200 3,585,425
- ---------------------------------------------------------------
5,850,475
- ---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-0.35%
Express Scripts, Inc.-Class A(a) 80,000 5,890,000
- ---------------------------------------------------------------
HEALTH CARE (SPECIALIZED SERVICES)-0.58%
Advance Paradigm, Inc.(a) 75,000 3,937,500
- ---------------------------------------------------------------
NCS HealthCare, Inc.-Class A(a) 110,000 1,430,000
- ---------------------------------------------------------------
Orthodontic Centers of America,
Inc.(a) 123,000 1,522,125
- ---------------------------------------------------------------
Superior Consultant Holdings
Corp.(a) 100,000 2,700,000
- ---------------------------------------------------------------
9,589,625
- ---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-1.59%
Henry Schein, Inc.(a) 200,000 5,237,500
- ---------------------------------------------------------------
ResMed, Inc.(a) 80,000 2,115,000
- ---------------------------------------------------------------
Sybron International Corp.(a) 344,300 9,532,806
- ---------------------------------------------------------------
VISX, Inc.(a) 75,000 9,656,250
- ---------------------------------------------------------------
26,541,556
- ---------------------------------------------------------------
INVESTMENT MANAGEMENT-0.69%
Knight/Trimark Group, Inc.-Class A(a) 75,000 11,489,063
- ---------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES-0.50%
Daisytek International Corp.(a) 500,000 8,375,000
- ---------------------------------------------------------------
PUBLISHING-0.19%
IDG Books Worldwide, Inc.-Class A(a) 150,000 3,243,750
- ---------------------------------------------------------------
RESTAURANTS-0.84%
CEC Entertainment Inc.(a) 300,000 11,250,000
- ---------------------------------------------------------------
Papa John's International, Inc.(a) 68,200 2,740,787
- ---------------------------------------------------------------
13,990,787
- ---------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (COMPUTERS & ELECTRONICS)-0.92%
CDW Computer Centers, Inc.(a) 171,500 $ 15,349,250
- ---------------------------------------------------------------
RETAIL (HOME SHOPPING)-0.29%
DM Management Company(a) 200,000 4,750,000
- ---------------------------------------------------------------
RETAIL (SPECIALTY)-1.57%
Claire's Stores, Inc. 150,000 4,968,750
- ---------------------------------------------------------------
O'Reilly Automotive, Inc.(a) 217,300 9,941,475
- ---------------------------------------------------------------
Rent-A-Center, Inc.(a) 250,000 7,750,000
- ---------------------------------------------------------------
Tuesday Morning Corp.(a) 181,900 3,547,050
- ---------------------------------------------------------------
26,207,275
- ---------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-2.25%
Abercrombie & Fitch Co.-Class A(a) 50,000 4,756,250
- ---------------------------------------------------------------
American Eagle Outfitters, Inc.(a) 65,000 4,858,750
- ---------------------------------------------------------------
AnnTaylor Stores Corp.(a) 128,900 6,122,750
- ---------------------------------------------------------------
Men's Wearhouse, Inc. (The)(a) 310,000 8,486,250
- ---------------------------------------------------------------
Pacific Sunwear of California(a) 276,500 10,256,421
- ---------------------------------------------------------------
Wet Seal, Inc.-Class A(a) 75,000 3,056,250
- ---------------------------------------------------------------
37,536,671
- ---------------------------------------------------------------
SERVICES (ADVERTISING/MARKETING)-0.40%
Acxiom Corp.(a) 225,000 5,681,250
- ---------------------------------------------------------------
Professional Detailing, Inc.(a) 33,700 968,875
- ---------------------------------------------------------------
6,650,125
- ---------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-0.40%
Strayer Education, Inc. 190,400 6,592,600
- ---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.74%
Insight Enterprises, Inc.(a) 337,500 9,112,500
- ---------------------------------------------------------------
SunGard Data Systems Inc.(a) 100,000 3,193,750
- ---------------------------------------------------------------
12,306,250
- ---------------------------------------------------------------
SERVICES (DATA PROCESSING)-2.01%
Affiliated Computer Services, Inc.(a) 128,400 4,911,300
- ---------------------------------------------------------------
Concord EFS, Inc.(a) 299,605 9,999,316
- ---------------------------------------------------------------
CSG Systems International, Inc.(a) 333,600 12,885,300
- ---------------------------------------------------------------
NOVA Corp.(a) 221,500 5,759,000
- ---------------------------------------------------------------
33,554,916
- ---------------------------------------------------------------
TEXTILES (APPAREL)-0.91%
Quicksilver, Inc.(a) 342,100 9,087,031
- ---------------------------------------------------------------
Tommy Hilfiger Corp.(a) 87,900 6,142,013
- ---------------------------------------------------------------
15,229,044
- ---------------------------------------------------------------
TEXTILES (HOME FURNISHINGS)-0.22%
Mohawk Industries, Inc.(a) 112,500 $ 3,628,125
- ---------------------------------------------------------------
Total Domestic Common Stocks
(Cost $260,037,589) 438,128,654
- ---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-66.94%
ARGENTINA-2.27%
Telefonica de Argentina S.A.-ADR
(Telephone) 288,500 10,782,688
- ---------------------------------------------------------------
YPF Sociedad Anonima-ADR
(Oil-International Integrated) 642,300 26,976,600
- ---------------------------------------------------------------
37,759,288
- ---------------------------------------------------------------
AUSTRALIA-1.04%
Brambles Industries Ltd. (Air
Freight) 235,000 6,905,477
- ---------------------------------------------------------------
ERG Ltd. (Electrical Equipment)(a) 2,193,000 3,758,654
- ---------------------------------------------------------------
TABCORP Holdings Ltd. (Leisure
Time Products) 828,000 6,734,047
- ---------------------------------------------------------------
17,398,178
- ---------------------------------------------------------------
BELGIUM-1.11%
Mobistar S.A.
(Telecommunications-Cellular/
Wireless)(a) 62,500 3,513,029
- ---------------------------------------------------------------
Real Software Pfd.
(Computers-Software & Services) 51,600 7,245,439
- ---------------------------------------------------------------
UCB S.A.
(Manufacturing-Diversified) 165,000 7,670,553
- ---------------------------------------------------------------
18,429,021
- ---------------------------------------------------------------
BRAZIL-1.14%
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar-Pfd. (Retail-Food
Chains) 277,419 4,837,494
- ---------------------------------------------------------------
Embratel Participacoes S.A.-ADR
(Telephone)(a) 128,500 2,088,125
- ---------------------------------------------------------------
Petroleo Brasileiro S.A.-Pfd.
(Oil & Gas- Exploration &
Production) 46,200 7,509,934
- ---------------------------------------------------------------
Tele Centro Sul Participacoes
S.A. (Telephone) 25,700 1,365,313
- ---------------------------------------------------------------
Telecomunicacoes Brasileiras
S.A.-ADR (Telephone)(a) 128,500 10,039
- ---------------------------------------------------------------
Telesp Participacoes S.A.-ADR
(Telephone) 128,500 3,212,500
- ---------------------------------------------------------------
19,023,405
- ---------------------------------------------------------------
CANADA-7.70%
ATI Technologies, Inc.
(Computers-Hardware)(a) 850,200 12,741,337
- ---------------------------------------------------------------
BCE Emergis Inc.
(Services-Computer Systems)(a) 290,000 9,149,520
- ---------------------------------------------------------------
Biovail Corp. International
(Health Care-Drugs-Generic &
Other)(a) 114,300 4,007,644
- ---------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Celestica Inc.
(Electronics-Semiconductors)(a) 104,000 $ 4,069,000
- ---------------------------------------------------------------
CGI Group, Inc.
(Services-Computer Systems)(a) 683,000 16,864,198
- ---------------------------------------------------------------
Cinar Films Inc.-Class B
(Entertainment)(a) 126,000 2,630,250
- ---------------------------------------------------------------
C-MAC Industries Inc.
(Electronics- Component
Distributors)(a) 238,000 4,480,864
- ---------------------------------------------------------------
Dorel Industries Inc. (Household
Furniture & Appliances)(a) 151,400 3,219,067
- ---------------------------------------------------------------
Four Seasons Hotels, Inc.
(Lodging-Hotels) 145,000 6,053,750
- ---------------------------------------------------------------
Intertape Polymer Group Inc.
(Chemicals-Specialty) 100,000 2,932,099
- ---------------------------------------------------------------
JDS Fitel Inc.
(Manufacturing-Specialized)(a) 526,000 31,747,598
- ---------------------------------------------------------------
MetroNet Communications
Corp.-Class B (Telephone)(a) 22,500 1,248,750
- ---------------------------------------------------------------
Onex Corp. (Investment
Management) 55,000 1,925,754
- ---------------------------------------------------------------
Open Text Corp.
(Computers-Software &
Services)(a) 52,000 2,073,500
- ---------------------------------------------------------------
Research in Motion Ltd.
(Communications Equipment) 500,000 6,052,812
- ---------------------------------------------------------------
Saputo Group Inc. (Foods) 97,200 2,423,333
- ---------------------------------------------------------------
Sears Canada, Inc.
(Retail-Department Stores) 250,000 5,401,235
- ---------------------------------------------------------------
Shaw Communications Inc.
(Broadcasting- Television,
Radio & Cable) 122,000 5,020,576
- ---------------------------------------------------------------
TLC Laser Center Inc. (The)
(Health Care- Specialized
Services)(a) 168,250 6,243,021
- ---------------------------------------------------------------
128,284,308
- ---------------------------------------------------------------
CHILE-0.35%
Cia. de Telecomunicaciones de
Chile S.A.-ADR (Telephone) 176,800 4,674,150
- ---------------------------------------------------------------
Madeco S.A. (Metal Fabricators) 129,000 1,193,250
- ---------------------------------------------------------------
5,867,400
- ---------------------------------------------------------------
CROATIA-0.47%
Pliva DD GDR (Health
Care-Drugs-Major
Pharmaceutical) (Acquired
05/13/98-05/19/98; Cost
$8,230,060)(b) 494,700 7,840,995
- ---------------------------------------------------------------
FINLAND-1.89%
JOT Automation Group Oyj
(Manufacturing- Specialized)(a) 74,900 2,469,031
- ---------------------------------------------------------------
Sonera Group OYJ
(Telecommunications-
Cellular/Wireless) 572,000 11,361,716
- ---------------------------------------------------------------
Tieto Corp. (Computers-Software &
Services) 444,000 17,685,379
- ---------------------------------------------------------------
31,516,126
- ---------------------------------------------------------------
FRANCE-2.73%
Altran Technologies, S.A.
(Services- Commercial &
Consumer) 53,800 $ 12,789,538
- ---------------------------------------------------------------
Business Objects S.A.-ADR
(Computers-Software &
Services)(a) 100,000 2,343,750
- ---------------------------------------------------------------
Galeries Lafayette
(Retail-Department Stores) 7,000 8,061,477
- ---------------------------------------------------------------
Havas Advertising S.A.
(Services-Advertising/
Marketing) 44,000 8,925,734
- ---------------------------------------------------------------
M6 Metropole Television
(Broadcasting- Television,
Radio & Cable)(a) 12,000 2,268,202
- ---------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio
& Cable) 56,500 11,043,589
- ---------------------------------------------------------------
45,432,290
- ---------------------------------------------------------------
GERMANY-3.21%
Consors Discount Broker A.G.
(Brokerage/ Investment)(a) 51,500 4,897,109
- ---------------------------------------------------------------
EM.TV & Merchandising A.G.
(Broadcasting- Television,
Radio, & Cable)(a) 6,800 6,430,163
- ---------------------------------------------------------------
Fresenius A.G.-Pfd.
(Machinery-Diversified) 9,300 1,621,276
- ---------------------------------------------------------------
Marschollek, Lautenschlaeger &
Partner A.G.
(Insurance-Life/Health) 10,000 5,599,715
- ---------------------------------------------------------------
Porsche A.G. (Automobiles) 3,870 9,567,905
- ---------------------------------------------------------------
SER Systeme A.G.
(Computers-Software & Services) 14,500 5,346,671
- ---------------------------------------------------------------
Sixt A.G. (Financial-Diversified) 82,500 5,970,828
- ---------------------------------------------------------------
Teldafax (Telecommunications-Long
Distance)(a) 251,000 10,209,971
- ---------------------------------------------------------------
Teles AG (Electrical
Equipment)(a) 18,000 3,894,866
- ---------------------------------------------------------------
53,538,504
- ---------------------------------------------------------------
GREECE-0.55%
Panafon Hellenic Telecom S.A.-GDR
(Telecommunications-
Cellular/Wireless)(a) 170,600 4,520,900
- ---------------------------------------------------------------
Titan Cement Co. S.A.
(Construction-Cement &
Aggregates) 60,000 4,634,257
- ---------------------------------------------------------------
9,155,157
- ---------------------------------------------------------------
HONG KONG-2.72%
China Telecom Ltd.
(Telecommunications-
Cellular/Wireless)(a) 3,428,000 7,828,352
- ---------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 12,224,000 8,279,973
- ---------------------------------------------------------------
Dao Heng Bank Group Ltd.
(Banks-Regional)(a) 2,364,000 9,607,586
- ---------------------------------------------------------------
Hutchison Whampoa Ltd.
(Retail-Food Chains) 1,615,000 14,481,502
- ---------------------------------------------------------------
Ng Fung Hong Ltd. (Foods) 5,220,000 5,051,124
- ---------------------------------------------------------------
45,248,537
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HUNGARY-0.54%
Magyar Tavkozlesi-ADR
(Telecommunications-Long
Distance) 320,000 $ 9,000,000
- ---------------------------------------------------------------
INDONESIA-0.56%
Gulf Indonesia Resources Ltd.
(Oil-International
Integrated)(a) 907,300 9,356,531
- ---------------------------------------------------------------
IRELAND-0.69%
CRH PLC (Construction-Cement &
Aggregates) 490,000 9,616,211
- ---------------------------------------------------------------
Esat Telecom Group PLC-ADR
(Telecommunications-Long
Distance)(a) 40,000 1,955,000
- ---------------------------------------------------------------
11,571,211
- ---------------------------------------------------------------
ISRAEL-0.29%
Orbotech, Ltd.
(Computers-Software &
Services)(a) 100,000 4,800,000
- ---------------------------------------------------------------
ITALY-1.84%
Autogrill S.p.A. (Restaurants) 1,205,000 11,050,879
- ---------------------------------------------------------------
Banca Popolare di Brescia
(Banks-Regional)(a) 314,000 10,798,681
- ---------------------------------------------------------------
Gruppo Editoriale L'Espresso
(Publishing) 600,000 8,779,931
- ---------------------------------------------------------------
30,629,491
- ---------------------------------------------------------------
JAPAN-5.53%
Aderans Co. Ltd. (Personal Care) 394,000 15,934,855
- ---------------------------------------------------------------
Bellsystem 24, Inc.
(Services-Commercial &
Consumer) 68,000 26,818,504
- ---------------------------------------------------------------
Circle K Japan Co. Ltd.
(Retail-Food Chains) 244,200 11,041,909
- ---------------------------------------------------------------
Hokuto Corp. (Agricultural Products) 240,750 7,458,865
- ---------------------------------------------------------------
Shohkoh Fund & Co.
(Financial-Diversified) 20,600 12,074,524
- ---------------------------------------------------------------
Softbank Corp.
(Computers-Software & Services)(a) 68,000 9,047,687
- ---------------------------------------------------------------
Yahoo Japan Corp.
(Computers-Software & Services)(a) 2,800 9,706,510
- ---------------------------------------------------------------
92,082,854
- ---------------------------------------------------------------
MEXICO-6.80%
Cifra S.A. de C.V.
(Retail-General Merchandise)(a) 4,000,000 7,489,177
- ---------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages- Non-Alcoholic) 566,300 11,715,331
- ---------------------------------------------------------------
Controladora Comercial Mexicana
S.A. de C.V. (Retail-Department
Stores) 2,839,000 2,925,030
- ---------------------------------------------------------------
Corporacion Interamericana de
Entretenimiento S.A.
(Entertainment)(a) 1,652,860 5,786,799
- ---------------------------------------------------------------
Formento Economico Mexicano, S.A.
de C.V. (Beverages-Alcoholic) 549,080 19,972,785
- ---------------------------------------------------------------
Grupo Financiero Banamex Accival,
S.A. de CV
(Banacci)(Financial-Diversified)(a) 4,442,000 11,321,331
- ---------------------------------------------------------------
Grupo Modelo S.A. de C.V.-Series
C (Beverages-Alcoholic) 3,161,000 $ 8,330,124
- ---------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 323,000 13,243,000
- ---------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.-Class A (Paper & Forest
Products) 2,014,000 7,846,753
- ---------------------------------------------------------------
Organizacion Soriana S.A. de C.V.
(Retail-Department Stores) 1,222,000 5,501,645
- ---------------------------------------------------------------
Telefonos de Mexico S.A.-ADR
(Telephone) 142,000 10,756,500
- ---------------------------------------------------------------
Tubos de Acero de Mexico S.A.
(Oil & Gas-Drilling &
Equipment) 541,800 5,993,663
- ---------------------------------------------------------------
Vitro SA (Containers-Metal &
Glass) 391,400 2,446,250
- ---------------------------------------------------------------
113,328,388
- ---------------------------------------------------------------
NETHERLANDS-3.02%
Aalberts Industries N.V.
(Manufacturing-Diversified) 115,000 2,733,823
- ---------------------------------------------------------------
Cap Gemini N.V.
(Services-Computer Systems) 236,000 12,280,281
- ---------------------------------------------------------------
Getronics N.V.
(Computers-Software & Services) 300,000 12,314,090
- ---------------------------------------------------------------
Nutreco Holding N.V.
(Agricultural Products) 235,000 9,521,893
- ---------------------------------------------------------------
Ordina Beheer N.V.
(Services-Commercial &
Consumer)(a) 560,000 13,430,864
- ---------------------------------------------------------------
50,280,951
- ---------------------------------------------------------------
NORWAY-1.81%
Merkantildata A.S.A.
(Services-Commercial &
Consumer) 1,080,000 10,785,481
- ---------------------------------------------------------------
Tomra Systems A.S.A.
(Manufacturing-Specialized) 486,000 19,289,418
- ---------------------------------------------------------------
30,074,899
- ---------------------------------------------------------------
PHILIPPINES-1.16%
International Container Terminal
Services, Inc. (Air Freight)(a) 6,112,500 610,848
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Co. (Telephone) 194,920 6,305,105
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Co.-ADR (Telephone) 159,400 5,140,650
- ---------------------------------------------------------------
SM Prime Holdings Inc. (Land
Development) 32,000,000 7,237,344
- ---------------------------------------------------------------
19,293,947
- ---------------------------------------------------------------
PORTUGAL-1.64%
Banco Comercial Portugues, S.A.
(Banks-Major Regional) 300,000 8,459,796
- ---------------------------------------------------------------
Jeronimo Martins & Filho, S.A.
(Retail- General Merchandise) 185,500 6,105,089
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
PORTUGAL-(CONTINUED)
Telecel-Comunicacaoes Pessoais, S.A.
(Telecommunications-
Cellular/Wireless) 95,400 $ 12,750,551
- ---------------------------------------------------------------
27,315,436
- ---------------------------------------------------------------
SINGAPORE-1.36%
Development Bank of Singapore
Ltd. (Banks-Major Regional) 551,000 5,846,843
- ---------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction)(a) 1,939,000 5,532,488
- ---------------------------------------------------------------
NatSteel Ltd.
(Computers-Hardware) 3,000,000 4,527,501
- ---------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing-Newspapers) 459,000 6,764,723
- ---------------------------------------------------------------
22,671,555
- ---------------------------------------------------------------
SOUTH AFRICA-0.73%
Dimension Data Holdings Ltd.
(Computers- Software &
Services)(a) 1,519,563 6,755,001
- ---------------------------------------------------------------
Persetel Holdings Ltd.
(Computers-Software & Services) 760,000 5,395,563
- ---------------------------------------------------------------
12,150,564
- ---------------------------------------------------------------
SOUTH KOREA-0.47%
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 301,900 7,773,925
- ---------------------------------------------------------------
SPAIN-1.87%
Corp. Financiera Reunida, S.A.
(Investment Management)(a) 1,287,000 15,134,350
- ---------------------------------------------------------------
Mapfre Vida
(Insurance-Life/Health) 108,000 3,383,284
- ---------------------------------------------------------------
TelePizza, S.A. (Restaurants)(a) 2,000,000 12,678,600
- ---------------------------------------------------------------
31,196,234
- ---------------------------------------------------------------
SWEDEN-1.87%
Assa Abloy A.B.-Class B (Metal
Fabricators) 230,000 10,032,002
- ---------------------------------------------------------------
Europolitan Holdings A.B.
(Telecommunications-Cellular &
Wireless) 103,800 8,821,216
- ---------------------------------------------------------------
Scandic Hotels A.B.
(Lodging-Hotels) 154,500 4,578,049
- ---------------------------------------------------------------
WM-Data A.B. (Computers-Software
& Services) 208,150 7,648,038
- ---------------------------------------------------------------
31,079,305
- ---------------------------------------------------------------
SWITZERLAND-1.35%
Julius Baer Holding A.G.
(Banks-Major Regional)(a) 4,500 14,644,098
- ---------------------------------------------------------------
Kudelski S.A.
(Electronics-Component
Distributors)(a) 820 3,197,876
- ---------------------------------------------------------------
Mikron Holding A.G.
(Machinery-Diversified) 17,000 4,061,414
- ---------------------------------------------------------------
Phonak Holding A.G.
(Consumer-Jewelry, Novelties &
Gifts) 510 $ 618,405
- ---------------------------------------------------------------
22,521,793
- ---------------------------------------------------------------
TAIWAN-0.85%
Compal Electronics Inc.
(Computers-Hardware)(a) 1,620,000 5,598,165
- ---------------------------------------------------------------
Inventec Co., Ltd.
(Computers-Hardware)(a) 2,593,000 8,524,388
- ---------------------------------------------------------------
14,122,553
- ---------------------------------------------------------------
THAILAND-0.36%
Advanced Info Service Public Co.
Ltd. (Telephone)(a) 569,000 6,047,640
- ---------------------------------------------------------------
UNITED KINGDOM-9.02%
Airtours PLC (Services-Commercial
& Consumer) 1,310,550 9,065,048
- ---------------------------------------------------------------
AMEC PLC (Construction-Cement &
Aggregates) 678,000 2,933,797
- ---------------------------------------------------------------
Avis Europe PLC
(Services-Commercial &
Consumer) 1,484,550 6,280,564
- ---------------------------------------------------------------
Cable & Wireless Communications
PLC
(Telecommunications-
Cellular/Wireless)(a) 1,550,000 17,677,710
- ---------------------------------------------------------------
Cattles PLC (Consumer Finance) 510,000 6,255,443
- ---------------------------------------------------------------
Compass Group PLC
(Services-Commercial & Consumer) 670,000 6,865,344
- ---------------------------------------------------------------
ECsoft Group PLC-ADR
(Computers-Software &
Services)(a) 129,000 2,241,375
- ---------------------------------------------------------------
Eidos PLC (Computer
Software/Services)(a) 125,000 4,703,125
- ---------------------------------------------------------------
F.I. Group PLC (Services-Computer
Systems) 380,000 2,078,311
- ---------------------------------------------------------------
Filtronic PLC
(Electronics-Component
Distributors)(a) 305,000 4,209,545
- ---------------------------------------------------------------
FirstBus PLC (Shipping) 1,350,000 8,230,402
- ---------------------------------------------------------------
Logica PLC (Computer
Software/Services) 775,000 7,479,990
- ---------------------------------------------------------------
Mayflower Corp. PLC (The) (Auto
Parts & Equipment) 2,240,000 7,530,822
- ---------------------------------------------------------------
Misys PLC (Services-Commercial &
Consumer) 1,525,500 14,318,619
- ---------------------------------------------------------------
Parity PLC (Services-Commercial &
Consumer) 415,000 4,606,226
- ---------------------------------------------------------------
PizzaExpress PLC (Restaurants) 537,000 7,903,937
- ---------------------------------------------------------------
Provident Financial PLC (Consumer
Finance) 964,912 16,095,875
- ---------------------------------------------------------------
Select Appointments Holdings PLC
(Services-Commercial &
Consumer) 622,000 7,924,350
- ---------------------------------------------------------------
Seton Scholl Healthcare PLC(a)
Health Care (Medical Products
and Supplies) 301,600 3,735,685
- ---------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Stagecoach Holdings PLC (Shipping) 2,980,000 $ 10,054,635
- ---------------------------------------------------------------
150,190,803
- ---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$779,093,032) 1,114,981,289
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
FOREIGN CONVERTIBLE NOTES-0.50%
UNITED KINGDOM-0.50%
Airtours PLC (Services-Commercial
& Consumer), Conv. Sub. Notes,
5.75%, 01/05/04 (Acquired
12/09/98-12/14/98; Cost
$3,732,557)(b) $ 2,234,000 $ 3,984,418
- ---------------------------------------------------------------
Shanghai Industrial Investment
Trust Co.
(Manufacturing-Diversified),
Conv. Gtd. Bonds, 1.00%,
02/24/03 (Acquired
03/05/98-03/09/98; Cost
$5,218,750)(b) $ 5,000,000 $ 4,387,500
- ---------------------------------------------------------------
Total Foreign Convertible
Bonds (Cost $8,951,307) 8,371,918
- ---------------------------------------------------------------
TOTAL INVESTMENTS-93.75% 1,561,481,861
- ---------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-6.25% 104,085,406
- ---------------------------------------------------------------
NET ASSETS-100.00% $1,665,567,267
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GDR - Global Depositary Receipt
Gtd. - Guaranteed
Pfd. - Preferred
Notes to Schedule of Investments
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of 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 $16,212,913,
which represented 0.97% of the Fund's net assets.
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$1,048,081,928) $ 1,561,481,861
- ------------------------------------------------------------
Cash 579,853
- ------------------------------------------------------------
Foreign currencies, at value (cost
$17,632,734) 17,737,305
- ------------------------------------------------------------
Receivables for:
Investments sold 117,848,863
- ------------------------------------------------------------
Capital stock sold 773,968
- ------------------------------------------------------------
Dividends and interest 2,248,934
- ------------------------------------------------------------
Investment for deferred compensation plan 30,767
- ------------------------------------------------------------
Other assets 58,146
- ------------------------------------------------------------
Total assets 1,700,759,697
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 24,679,395
- ------------------------------------------------------------
Capital stock reacquired 7,080,271
- ------------------------------------------------------------
Deferred compensation 30,767
- ------------------------------------------------------------
Accrued advisory fees 1,214,687
- ------------------------------------------------------------
Accrued administrative services fees 10,851
- ------------------------------------------------------------
Accrued directors' fees 1,800
- ------------------------------------------------------------
Accrued distribution fees 1,328,738
- ------------------------------------------------------------
Accrued transfer agent fees 630,267
- ------------------------------------------------------------
Accrued operating expenses 215,654
- ------------------------------------------------------------
Total liabilities 35,192,430
- ------------------------------------------------------------
Net assets applicable to shares outstanding $ 1,665,567,267
- ------------------------------------------------------------
NET ASSETS:
Class A $ 793,702,515
============================================================
Class B $ 858,444,732
============================================================
Class C $ 13,420,020
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 43,505,951
============================================================
Class B:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 48,252,563
============================================================
Class C:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 754,376
============================================================
Class A:
Net asset value and redemption price per
share $ 18.24
- ------------------------------------------------------------
Offering price per share:
(Net asset value $18.24
divided by 95.25%) $ 19.15
============================================================
Class B:
Net asset value and offering price per
share $ 17.79
============================================================
Class C:
Net asset value and offering price per
share $ 17.79
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $533,061 foreign withholding
tax) $ 4,460,407
- -------------------------------------------------------------
Interest 2,916,128
- -------------------------------------------------------------
Total investment income 7,376,535
- -------------------------------------------------------------
EXPENSES:
Advisory fees 8,027,007
- -------------------------------------------------------------
Administrative services fees 56,187
- -------------------------------------------------------------
Custodian fees 520,970
- -------------------------------------------------------------
Directors' fees 8,617
- -------------------------------------------------------------
Distribution fees-Class A 2,215,308
- -------------------------------------------------------------
Distribution fees-Class B 4,652,169
- -------------------------------------------------------------
Distribution fees-Class C 69,053
- -------------------------------------------------------------
Transfer agent fees-Class A 1,436,410
- -------------------------------------------------------------
Transfer agent fees-Class B 1,866,996
- -------------------------------------------------------------
Transfer agent fees-Class C 34,556
- -------------------------------------------------------------
Other 334,141
- -------------------------------------------------------------
Total expenses 19,221,414
- -------------------------------------------------------------
Less: Expenses paid indirectly (21,696)
- -------------------------------------------------------------
Net expenses 19,199,718
- -------------------------------------------------------------
Net investment income (loss) (11,823,183)
- -------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities 68,410,218
- -------------------------------------------------------------
Foreign currencies (2,075,742)
- -------------------------------------------------------------
66,334,476
- -------------------------------------------------------------
Net unrealized appreciation of:
Investment securities 203,005,586
- -------------------------------------------------------------
Foreign currencies 41,952
- -------------------------------------------------------------
203,047,538
- -------------------------------------------------------------
Net gain from investment securities and
foreign currencies 269,382,014
- -------------------------------------------------------------
Net increase in net assets resulting from
operations $ 257,558,831
=============================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1999 and year ended October 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (11,823,183) $ (19,250,738)
- ----------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 66,334,476 8,287,562
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment
securities and foreign currencies 203,047,538 (163,765,028)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 257,558,831 (174,728,204)
- ----------------------------------------------------------------------------------------------
Share transactions-net:
Class A (271,189,933) (230,924,075)
- ----------------------------------------------------------------------------------------------
Class B (217,190,869) (195,608,768)
- ----------------------------------------------------------------------------------------------
Class C (1,676,552) 10,146,858
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (232,498,523) (591,114,189)
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,898,065,790 2,489,179,979
- ----------------------------------------------------------------------------------------------
End of period $1,665,567,267 $1,898,065,790
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $1,194,234,856 $1,684,292,210
- ----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (22,421,260) (10,598,077)
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (19,621,352) (85,955,828)
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 513,375,023 310,327,485
- ----------------------------------------------------------------------------------------------
$1,665,567,267 $1,898,065,790
==============================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
April 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Aggressive Growth Fund (the "Fund") is a series portfolio of AIM
International Funds, Inc. (the "Company").
The Company is a Maryland corporation registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
series management investment company
consisting of six separate portfolios. The Fund currently offers three different
classes of shares: Class A shares, Class B shares and Class C shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C shares
are sold with a contingent deferred sales charge. Matters affecting each
portfolio or class are voted on exclusively by the shareholders of such
portfolio or class. The assets, liabilities and operations of each portfolio are
accounted for separately. Information presented in these financial statements
pertains only to the Fund. The Fund's investment objective is to provide
above-average long-term growth of capital appreciation.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at the last sales price on the exchange where
the security is principally traded or, lacking any sales, at the closing bid
price on the day of valuation. Securities traded in the over-the-counter
market (but not including securities reported on the NASDAQ National Market
System) are valued at the mean between the closing bid and asked prices
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, 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
11
<PAGE> 14
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 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. The Fund has a capital loss
carryforward of $85,299,787 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized,
through the year 2006.
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 0.90% of
the first $1 billion of the Fund's average daily net assets, plus 0.85% of the
Fund's average daily net assets in excess of $1 billion.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to reimburse AIM for administrative costs incurred in providing
accounting services to the Fund. During the six months ended April 30, 1999, AIM
was reimbursed $56,187 for such services.
The Fund, pursuant to a transfer agency and services agreement, has agreed
to pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing
transfer agency services to the Fund. During the six months ended April 30,
1999, AFS was paid $1,796,442 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Company has adopted
distribution plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class A shares and Class C shares (the "Class A and C Plan"), and the
Fund's Class B shares (the "Class B Plan")(collectively, the "Plans"). The Fund,
pursuant to the Class A and C Plan, pays AIM Distributors compensation at an
annual rate of 0.50% of the average daily net assets of the Class A shares and
1.00% of the average daily net assets of Class C shares. The Fund, pursuant to
the Class B Plan, pays AIM Distributors compensation at an annual rate of 1.00%
of the average daily net assets of the Class B shares. Of these amounts, the
Fund may pay a service fee of 0.25% of the average daily net assets of the Class
A, Class B or C shares to selected dealers and financial institutions who
furnish continuing personal shareholder services to their customers who purchase
and own the appropriate class of shares of the Fund. Any amounts not paid as a
service fee under the Plans would constitute an asset-based sales charge. The
Plans also impose a cap on the total sales charges, including asset-based sales
charges that may be paid by the respective classes. During the six months ended
April 30, 1999, the Class A, Class B and Class C shares paid AIM Distributors
12
<PAGE> 15
$2,215,308, $4,652,169 and $69,053, respectively, as compensation under the
Plans.
AIM Distributors received commissions of $156,569 from the 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 $72,897 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 paid legal fees of
$2,799 for services rendered by 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 $11,983 and $9,713, respectively, under expense offset arrangements. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $21,696 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
$485,616,331 and $804,066,323, respectively.
The amount of unrealized appreciation (depreciation) of investment
securities as of April 30, 1999, on a tax basis, is as follows.
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $539,037,314
- ------------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (36,823,768)
- ------------------------------------------------------------
Net unrealized appreciation of investment
securities $502,213,546
============================================================
</TABLE>
Cost of investments for tax purposes is $1,059,268,315.
NOTE 7-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1999 and year ended October 31, 1998 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1999 OCTOBER 31, 1998
--------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 32,842,834 $ 563,765,422 98,887,924 $ 1,735,509,689
- -----------------------------------------------------------------------------------
Class B 1,882,734 31,749,222 8,273,209 143,682,325
- -----------------------------------------------------------------------------------
Class C 606,142 10,251,281 839,541 14,593,832
- -----------------------------------------------------------------------------------
Reacquired:
Class A (48,411,702) (834,955,355) (111,697,312) (1,966,433,764)
- -----------------------------------------------------------------------------------
Class B (14,668,131) (248,940,091) (20,304,373) (339,291,093)
- -----------------------------------------------------------------------------------
Class C (701,186) (11,927,833) (265,144) (4,446,974)
- -----------------------------------------------------------------------------------
(28,449,309) $(490,057,354) (24,266,155) $ (416,385,985)
===================================================================================
</TABLE>
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A and Class B
capital stock outstanding during the six months ended April 30, 1999, 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, 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 $ 15.87 $ 17.28 $ 15.76 $ 13.09 $ 10.22 $ 10.00
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.09)(a) (0.10)(a) (0.15)(a) (0.09)(a) (0.09)(a) --
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Net gains (losses) on securities (both
realized and unrealized) 2.46 (1.31) 1.67 2.81 2.96 0.22
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Total from investment operations 2.37 (1.41) 1.52 2.72 2.87 0.22
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Less distributions:
Distributions from net realized gains -- -- -- (0.05) -- --
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Net asset value, end of period $ 18.24 $ 15.87 $ 17.28 $ 15.76 $ 13.09 $ 10.22
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Total return(b) 14.93% (8.16)% 9.65% 20.83% 28.08% 2.20%
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 793,703 $ 937,587 $1,242,505 $919,319 $186,029 $ 18,410
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Ratio of expenses to average net assets 1.84%(c) 1.75% 1.75% 1.83% 2.11% 2.02%(d)(e)
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Ratio of net investment income (loss) to
average net assets (1.03)%(c) (0.55)% (0.88)% (0.62)% (0.68)% 0.27%(e)(f)
- ----------------------------------------- ---------- ---------- ---------- -------- -------- --------
Portfolio turnover rate 29% 50% 57% 44% 64% 2%
========================================= ========== ========== ========== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $893,466,600.
(d) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
4.03% (annualized).
(e) Annualized.
(f) After fee waivers and/or expense reimbursements. Ratio of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements was (1.74)% (annualized).
14
<PAGE> 17
NOTE 8 -- FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------------------
OCTOBER 31,
APRIL 30, ----------------------------------------------------------
1999 1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 15.52 $ 17.00 $ 15.58 $ 13.02 $ 10.21 $ 10.00
- ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Income from investment
operations:
Net investment income
(loss) (0.13)(a) (0.19)(a) (0.24)(a) (0.17)(a) (0.14)(a) --
- ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Net gains (losses) on
securities (both
realized and unrealized) 2.40 (1.29) 1.66 2.78 2.95 0.21
- ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total from
investment
operations 2.27 (1.48) 1.42 2.61 2.81 0.21
- ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
realized gains -- -- -- (0.05) -- --
- ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of
period $ 17.79 $ 15.52 $ 17.00 $ 15.58 $ 13.02 $ 10.21
============================ ========== ========== ========== ========== ========== ==========
Total return(b) 14.63% (8.71)% 9.11% 20.09% 27.52% 2.10%
============================ ========== ========== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period
(000s omitted) $ 858,445 $ 947,293 $1,241,999 $ 807,215 $ 118,199 $ 6,201
============================ ========== ========== ========== ========== ========== ==========
Ratio of expenses to average
net assets 2.34%(c) 2.32% 2.30% 2.37% 2.62% 2.54%(d)(e)
============================ ========== ========== ========== ========== ========== ==========
Ratio of net investment
income (loss) to average
net assets (1.53)%(c) (1.11)% (1.44)% (1.16)% (1.19)% (0.25)%(e)(f)
============================ ========== ========== ========== ========== ========== ==========
Portfolio turnover rate 29% 50% 57% 44% 64% 2%
============================ ========== ========== ========== ========== ========== ==========
<CAPTION>
CLASS C
----------------------------------------
OCTOBER 31,
APRIL 30, -------------------------
1999 1998 1997
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning
of period $ 15.52 $ 17.00 $ 18.39
- ---------------------------- ---------- ---------- ----------
Income from investment
operations:
Net investment income
(loss) (0.13)(a) (0.19)(a) (0.04)(a)
- ---------------------------- ---------- ---------- ----------
Net gains (losses) on
securities (both
realized and unrealized) 2.40 (1.29) (1.35)
- ---------------------------- ---------- ---------- ----------
Total from
investment
operations 2.27 (1.48) (1.39)
- ---------------------------- ---------- ---------- ----------
Less distributions:
Distributions from net
realized gains -- -- --
- ---------------------------- ---------- ---------- ----------
Net asset value, end of
period $ 17.79 $ 15.52 $ 17.00
============================ ========== ========== ==========
Total return(b) 14.63% (8.71)% (7.56)%
============================ ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period
(000s omitted) $ 13,420 $ 13,186 $ 4,676
============================ ========== ========== ==========
Ratio of expenses to average
net assets 2.34%(c) 2.34% 2.36%(e)
============================ ========== ========== ==========
Ratio of net investment
income (loss) to average
net assets (1.53)%(c) (1.13)% (1.50)%(e)
============================ ========== ========== ==========
Portfolio turnover rate 29% 50% 57%
============================ ========== ========== ==========
</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) Ratios are annualized and based on average net assets of $938,144,603 and
$13,924,988 for Class B and Class C, respectively.
(d) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
4.43% (annualized).
(e) Annualized.
(f) After fee waivers and/or expense reimbursements. Ratio of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements was (2.14)% (annualized).
15
<PAGE> 18
<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>
16
<PAGE> 19
HOW AIM MAKES INVESTING
EASY FOR YOU
o LOW INITIAL INVESTMENT. You can get your investment program started for as
little as $500. Subsequent investments can be made for only $50.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. Distributions may
be received in cash or reinvested in the fund free of charge. Over time, the
power of compounding can significantly increase the value of your assets.
o AUTOMATIC INVESTMENT PLAN. You may build your investment by regularly
purchasing additional shares. Pre-authorized checks for $50 or more can be
drafted monthly from your personal checking account.
o EASY ACCESS TO YOUR MONEY. Your shares may be redeemed at net asset value
any day the New York Stock Exchange is open. The price of shares sold may be
more or less than their original cost, depending on market conditions.
o SYSTEMATIC WITHDRAWAL PLAN. You may elect to receive checks of at least $50
monthly or quarterly through a systematic withdrawal plan.
o EXCHANGE PRIVILEGE. As your goals change, you may exchange all or part of
your assets for those of other funds within the same share class of The AIM
Family of Funds--Registration Mark. The exchange privilege may be modified
or discontinued for any of the AIM funds. Certain restrictions apply.
o RETIREMENT PLANS. You may purchase shares of an AIM fund for your Individual
Retirement Account (IRA), Roth IRA, or any other type of retirement plan,
and earn tax-deferred dollars for your retirement.
o TOLL-FREE ACCESS. Current shareholders can call our AIM Investor Line at
800-246-5463 for 24-hour-a-day account information. Or, of course, you may
contact your financial consultant for assistance.
o www.aimfunds.com. As a current shareholder, you can check account balances
24 hours a day over the Internet. State-of-the-art encryption lets you send
us questions that include confidential information without the fear of
eavesdropping, tampering or forgery.
-------------------------------------
CURRENT SHAREHOLDERS
CAN CALL OUR
AIM INVESTOR LINE AT
800-246-5463
FOR 24-HOUR-A-DAY
ACCOUNT INFORMATION.
-------------------------------------
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS INTERNATIONAL GROWTH FUNDS
AIM Aggressive Growth Fund(1) AIM Advisor International Value Fund A I M Management Group Inc. has provided
AIM Blue Chip Fund AIM Asian Growth Fund leadership in the mutual-fund industry
AIM Capital Development Fund AIM Developing Markets Fund(2) since 1976 and managed approximately
AIM Constellation Fund AIM Europe Growth Fund(2) $112 billion in assets for more than 6.3
AIM Dent Demographic Trends Fund AIM European Development Fund million shareholders, including individual
AIM Large Cap Growth Fund AIM International Equity Fund investors, corporate clients and financial
AIM Mid Cap Equity Fund(2),(a) AIM Japan Growth Fund(2) institutions as of March 31, 1999.
AIM Select Growth Fund(3) AIM Latin American Growth Fund(2) The AIM Family of Funds--Registered
AIM Small Cap Growth Fund(2),(b) AIM New Pacific Growth Fund(2) Trademark-- is distributed nationwide, and
AIM Small Cap Opportunities Fund AIM today is the 10th-largest mutual-fund
AIM Value Fund GLOBAL GROWTH FUNDS complex in the United States in assets
AIM Weingarten Fund AIM Global Aggressive Growth Fund under management, according to Strategic
AIM Global Growth Fund Insight, an independent mutual-fund
GROWTH & INCOME FUNDS monitor.
AIM Advisor Flex Fund GLOBAL GROWTH & INCOME FUNDS
AIM Advisor Large Cap Value Fund AIM Global Growth & Income Fund(2)
AIM Advisor Real Estate Fund AIM Global Utilities Fund
AIM Balanced Fund
AIM Basic Value Fund(2),(c) GLOBAL INCOME FUNDS
AIM Charter Fund AIM Emerging Markets Debt Fund(2),(d)
AIM Global Government Income Fund(2)
INCOME FUNDS AIM Global Income Fund
AIM Floating Rate Fund(2) AIM Strategic Income Fund(2)
AIM High Yield Fund
AIM High Yield Fund II THEME FUNDS
AIM Income Fund AIM Global Consumer Products and Services Fund(2)
AIM Intermediate Government Fund AIM Global Financial Services Fund(2)
AIM Limited Maturity Treasury Fund AIM Global Health Care Fund(2)
AIM Global Infrastructure Fund(2)
TAX-FREE INCOME FUNDS AIM Global Resources Fund(2)
AIM High Income Municipal Fund AIM Global Telecommunications and Technology Fund(2),(e)
AIM Municipal Bond Fund AIM Global Trends Fund(2),(f)
AIM Tax-Exempt Bond Fund of Connecticut
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.
[AIM LOGO APPEARS HERE]
Invest with DISCIPLINE--Registered Trademark--
