<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 1999
AIM
GLOBAL GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
-------------------------------------
IRISES BY VINCENT VAN GOGH
VAN GOGH'S PAINTING OF INDIGO IRISES IS ONE OF HIS MASTERPIECES,
PARTLY BECAUSE THE FLOWER HAS SUCH UNIVERSAL APPEAL. NAMED FOR
THE GREEK GODDESS OF THE RAINBOW, IRISES GROW ALL OVER THE
GLOBE. LIKE THE APPRECIATION OF BEAUTIFUL ART AND FLOWERS,
INVESTING HAS CAUGHT THE IMAGINATION AND INTEREST OF PEOPLE
THROUGHOUT THE WORLD.
-------------------------------------
AIM Global Growth Fund is for shareholders who seek long-term growth of capital.
The Fund invests globally in a portfolio of equity securities of companies with
strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Growth Fund 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 and Class C shares will differ from
that of Class A shares due to differences in sales charge structure and
expenses.
o Past performance is no guarantee of comparable future results.
o The Fund's investment return and principal value will fluctuate, so 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 MSCI World Index is a group of unmanaged global securities tracked by
Morgan Stanley Capital International.
o The Dow Jones Industrial Average (the Dow) is an unmanaged composite of the
performance of 30 large-company stocks.
o The unmanaged Lipper Global Funds Index represents an average of the
performance of global funds tracked by Lipper Inc., an independent
mutual-fund performance monitor. Results shown reflect reinvestment of
dividends.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE 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 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, A I M Advisors, Inc.
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 GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
MARKET RALLY PROPELS FUND PERFORMANCE
HOW HAS AIM GLOBAL GROWTH FUND PERFORMED OVER THE PAST SIX MONTHS?
The Fund had a total return of 18.20% for Class A shares, 17.86% for Class B
shares and 17.91% for Class C shares in a market that favored large-company
stocks. These figures are at net asset value and do not include sales charges.
The Fund's performance beat the 17.80% return of the Lipper Global Funds Index.
The Fund and other funds in the Lipper Global Funds Index underperformed the
MSCI World Index, which gained 19.57%. Net assets in the Fund grew from $513
million to $731 million over the six months ending April 30, 1999.
WHAT WERE MARKET CONDITIONS LIKE DURING THE REPORTING PERIOD?
In late 1998, the Federal Reserve Board lowered interest rates and spurred a
U.S. market rally. That rally continued into 1999, with large-company stocks
dominating. The Dow crossed the 10,000 threshold during the reporting period,
but this reflected the strength of major American corporations. The rest of the
U.S. market did not perform as well. The U.S. economy remains the strongest in
the world, with low inflation, high employment and low interest rates.
The European economy is slowing, particularly in Germany, and we're seeing
earnings disappointments from some companies.
Conditions are definitely improving in emerging markets. Asia and Latin
America suffered major problems last year, including currency devaluation and
recession. Signs of recovery appeared in early 1999, and many investors expect
Japan and the rest of Asia to emerge from recession this year. Latin American
economies have improved, and investors are returning.
WHAT CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE?
The Fund invests in companies that are major global leaders in a market where
size matters. These big companies have large research and development budgets to
develop new products, economies of scale to reduce costs and access to global
markets to sell products. The market currently favors large companies because
they're producing profits at a time when earnings growth is scarce.
WHAT STOCKS DID YOU LIKE?
Most of our top holdings are U.S. stocks. We don't pick companies according to
country; we select stocks one at a time based on company earnings and prospects
for future growth.
Stocks we favor include America Online, the No. 1 online Internet service
provider. With about 17 million subscribers worldwide, AOL recently announced
quarterly earnings that beat Wall Street estimates.
Another top holding is the Finland-based Nokia, the world's largest
wireless- phone company. Nokia posted a 96% increase in earnings in its most
recent quarter, and we believe the company is poised for future growth as the
European telecommunications industry continues to experience deregulation.
WILL YOU CONTINUE TO INVEST IN EUROPE?
Yes, the long-term outlook is favorable. We also see positive recent reforms:
o The new European Central Bank cut interest rates in April to stimulate the
economy and boost confidence in Europe.
o The decline of the euro means European exporters are much more competitive.
o European companies are more focused on shareholder value.
While recent earnings have declined, long-term growth expectations for
European companies are superior to those in the United States. And European
stocks are selling at a cheaper price than U.S. stocks. European stocks made up
35.75% of the portfolio as of April 30, 1999.
IS THE ASIAN ECONOMIC CRISIS OVER?
It appears to be, although some Asian countries have yet to recover. Asia has
made great strides--currencies are more stable, interest rates are declining and
inflation is benign. Banking-system reform is occurring but not yet complete.
Many companies in Asia continue to produce strong earnings, especially in the
banking and consumer sectors. The
================================================================================
GROWTH OF NET ASSETS
- --------------------------------------------------------------------------------
(BAR CHART)
10/31/98 $513 million
4/30/99 $731 million
================================================================================
AIM GLOBAL GROWTH FUND
VS. BENCHMARK INDEXES
Six-month total returns, excluding sales charges
As of 4/30/99
================================================================================
(BAR CHART)
CLASS A SHARES 18.20%
CLASS B SHARES 17.86%
CLASS C SHARES 17.91%
LIPPER GLOBAL FUNDS INDEX 17.80%
MSCI WORLD INDEX 19.57%
================================================================================
See important Fund and index disclosures inside front cover.
AIM GLOBAL GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 4/30/99, based on total net assets
<TABLE>
<CAPTION>
==================================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1. America Online, Inc. (U.S.) 1.25% 1. Computers 6.08% 1. United States 40.24%
(Software & Services)
2. Nokia Oyj A.B.-Class A (Finland) 1.05 2. Telephone 5.01 2. United Kingdom 8.94
3. Fiserv, Inc. (U.S.) 1.04 3. Communications Equipment 4.54 3. France 8.28
4. Cisco Systems, Inc. (U.S.) 1.03 4. Banks (Major Regional) 4.43 4. Japan 7.49
5. Northern Telecom Ltd. 1.02 5. Broadcasting 3.67 5. Canada 4.07
--ADR (Canada) (Television, Radio & Cable)
6. Abbott Laboratories (U.S.) 1.00 6. Telecommunications 3.15 6. Mexico 3.35
(Cellular/Wireless)
7. Medtronic, Inc. (U.S.) 0.99 7. Retail (General Merchandise) 3.11 7. Netherlands 2.80
8. Freddie Mac (U.S.) 0.99 8. Insurance (Multi-Line) 3.04 8. Germany 2.62
9. American Home 0.98 9. Retail (Food Chain) 2.96 9. Italy 2.45
Products Corp. (U.S.)
10. EMC Corp. (U.S.) 0.98 10. Financial (Diversified) 2.91 10. Switzerland 2.10
The Fund's portfolio is subject to change, and there is no assurance that the Fund will continue to hold any
particular security.
==================================================================================================================
</TABLE>
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/99, including sales charges
CLASS A SHARES
Inception (9/15/94) 17.49%
3 years 14.86
1 year 4.65*
CLASS B SHARES
Inception (9/15/94) 17.87%
3 years 15.33
1 year 4.19**
CLASS C SHARES
Inception (8/4/97) 12.13%
1 year 8.30***
*9.86% excluding sales charges
**9.19% excluding sales charges
***9.30% excluding sales charges
================================================================================
Past performance is no guarantee of comparable future results.
================================================================================
strongest economies appear to be in Australia, Korea and Singapore.
We increased our Asian holdings (outside Japan) from 1.73% to 4.08% over the
six-month reporting period.
IS THE OUTLOOK FOR JAPAN IMPROVING?
The Japanese stock market boomed over the six-month reporting period. Investors
pumped $13.4 billion into the Tokyo stock exchange in March, a record high. But
we remain cautious about a Japanese recovery. Japan's economy continues to
shrink, consumer spending is down, unemployment is rising and the government has
yet to implement meaningful economic reform.
Some of our Japanese holdings include beer maker Kirin Brewery,
telecommunications giant NTT and computer hardware maker NEC.
HAS LATIN AMERICA FULLY RECOVERED?
Latin American markets have turned around, especially over the past three
months. Brazil appointed a new central- bank president, who has raised interest
rates to keep inflation in check. Markets calmed considerably as the country
established a clearer monetary policy. Even with this positive news, we feel it
is too early to expect a sustained recovery in Brazil. At least in the short
term, we'll continue to focus on Mexico. The recent recovery in oil prices has
boosted the Mexican economy, and Mexico continues to benefit from the strength
of its largest trading partner, the United States.
WHAT'S YOUR OUTLOOK?
Further interest-rate cuts could occur across Europe, a move that would benefit
stocks. Over the long run, we expect the earnings picture to improve as
privatization, deregulation and restructuring take hold.
We look for continued improvement in Latin America and Asia, with the
exception of Japan. While we have increased our Japanese holdings, we believe
it's too early to say the economic crisis there has ended.
Strong economic growth continues to buoy the U.S. stock market. The main
question is interest rates. Inflation rose unexpectedly in April, prompting the
Fed to shift to a bias of raising interest rates at its May meeting. If the Fed
actually does tighten monetary policy, it could have a negative effect on stock
performance.
See important Fund and index disclosures inside front cover.
AIM GLOBAL GROWTH FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
WHY STAYING FULLY INVESTED
HAS BEEN THE WISEST COURSE
When the stock market turns volatile, many investors feel the impulse to pull
their money out of mutual funds. The question then becomes when to get back in.
Trying to guess the answer could be very costly.
No one, not even expert market watchers, can consistently predict what the
market will do next. That's why AIM funds stay fully invested even in a down
market, and we encourage investors to do the same.
For long-term investing, the stock market historically has offered the
highest returns. For example, the Standard & Poor's Composite Index of 500
Stocks (S&P 500) has reported an annualized total return of 13.66% for the 50
years ending March 31, 1999. Those were five decades of wars, recessions and
political upheaval.
If you pull your money out whenever markets decline, you could miss some of
the market's best days. In August 1998, investors withdrew $11 billion from U.S.
mutual funds. Chances are, many of those investors did not put their money back
into the market in time for the October rally. In fact, October 1998 turned out
to be the strongest month for the Dow Jones Industrial Average in 11 years.
For international investors, here's another way to look at market timing: If
you had invested a hypothetical $10,000 in the Europe, Australasia, and Far East
Index tracked by Morgan Stanley Capital International on March 31, 1979, your
money would have grown to $117,775 by March 31, 1999. That's an average annual
total return of 13.12%. But suppose that during that 20-year period, there were
times when you decided to get out of the market. If you missed the market's two
best months, your return would have fallen to 11.57%, and your investment would
be worth $89,351. If you had missed the market's five best months, your return
would have dropped to 9.74% and your investment would be worth $64,144.
The more you try to time the market, the greater your chances of missing its
biggest single-day gains. Keep focused on your financial goals and remember that
time, not timing, is key to successful investing. Now may be a good time to
visit your financial advisor to talk about your portfolio. Remember:
o think long-term
o diversify your investments
o avoid market timing
o maintain realistic expectations
================================================================================
PENALTY FOR MISSING THE MARKET
MSCI EAFE INDEX
Average annual total returns, 20 years ended 3/31/99
- --------------------------------------------------------------------------------
(LINE CHART)
FULLY INVESTED 240 MONTHS 13.12%
MISS THE 2 BEST MONTHS 11.57%
MISS THE 5 BEST MONTHS 9.74%
MISS THE 7 BEST MONTHS 8.61%
MISS THE 9 BEST MONTHS 7.52%
MISS THE 14 BEST MONTHS 5.07%
================================================================================
AIM GLOBAL GROWTH FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-38.24%
BANKS (MONEY CENTER)-0.59%
Chase Manhattan Corp. (The) 52,500 $ 4,344,376
- --------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.11%
AT&T Corp.-Liberty Media Group(a) 60,000 3,832,500
- --------------------------------------------------------------
Clear Channel Communications,
Inc.(a) 57,000 3,961,500
- --------------------------------------------------------------
Comcast Corp.-Class A 55,000 3,612,812
- --------------------------------------------------------------
Infinity Broadcasting Corp.-Class
A(a) 145,000 4,014,687
- --------------------------------------------------------------
15,421,499
- --------------------------------------------------------------
CHEMICALS (DIVERSIFIED)-0.44%
Monsanto Co. 72,000 3,258,000
- --------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-2.20%
Comverse Technology, Inc.(a) 72,000 4,617,000
- --------------------------------------------------------------
General Instrument Corp.(a) 100,000 3,650,000
- --------------------------------------------------------------
Lucent Technologies, Inc. 64,000 3,848,000
- --------------------------------------------------------------
Motorola, Inc. 50,000 4,006,250
- --------------------------------------------------------------
16,121,250
- --------------------------------------------------------------
COMPUTERS (HARDWARE)-1.08%
Dell Computer Corp.(a) 93,500 3,851,031
- --------------------------------------------------------------
Sun Microsystems, Inc.(a) 67,000 4,007,437
- --------------------------------------------------------------
7,858,468
- --------------------------------------------------------------
COMPUTERS (NETWORKING)-1.65%
Ascend Communications, Inc.(a) 46,800 4,522,050
- --------------------------------------------------------------
Cisco Systems, Inc.(a) 66,000 7,528,125
- --------------------------------------------------------------
12,050,175
- --------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.98%
EMC Corp.(a) 65,700 7,157,194
- --------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-4.21%
America Online, Inc.(a) 64,000 9,136,000
- --------------------------------------------------------------
Microsoft Corp.(a) 84,000 6,830,250
- --------------------------------------------------------------
Oracle Corp.(a) 135,000 3,653,437
- --------------------------------------------------------------
Unisys Corp.(a) 115,500 3,631,031
- --------------------------------------------------------------
Veritas Software Corp.(a) 45,500 3,230,500
- --------------------------------------------------------------
Yahoo! Inc.(a) 24,500 4,279,844
- --------------------------------------------------------------
30,761,062
- --------------------------------------------------------------
CONSUMER FINANCE-1.20%
Capital One Financial Corp. 26,000 4,515,875
- --------------------------------------------------------------
Providian Financial Corp. 33,000 4,259,062
- --------------------------------------------------------------
8,774,937
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRICAL EQUIPMENT-0.56%
Sanmina Corp.(a) 62,000 $ 4,115,250
- --------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-2.04%
Intel Corp. 116,000 7,097,750
- --------------------------------------------------------------
Texas Instruments, Inc. 35,000 3,574,375
- --------------------------------------------------------------
Xilinx, Inc.(a) 92,000 4,197,500
- --------------------------------------------------------------
14,869,625
- --------------------------------------------------------------
ENTERTAINMENT-0.61%
Time Warner Inc. 64,000 4,480,000
- --------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.96%
Fannie Mae 100,000 7,093,750
- --------------------------------------------------------------
Freddie Mac 115,000 7,216,250
- --------------------------------------------------------------
14,310,000
- --------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-2.56%
Abbott Laboratories 150,500 7,289,844
- --------------------------------------------------------------
American Home Products Corp. 117,500 7,167,500
- --------------------------------------------------------------
Warner-Lambert Co. 62,000 4,212,125
- --------------------------------------------------------------
18,669,469
- --------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-1.73%
Lilly (Eli) & Co. 90,000 6,626,250
- --------------------------------------------------------------
Pfizer Inc. 52,000 5,983,250
- --------------------------------------------------------------
12,609,500
- --------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.95%
Guidant Corp. 130,000 6,979,375
- --------------------------------------------------------------
Medtronic, Inc. 101,000 7,265,710
- --------------------------------------------------------------
14,245,085
- --------------------------------------------------------------
INSURANCE (MULTI-LINE)-0.95%
American International Group, Inc. 59,000 6,928,812
- --------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-0.49%
Morgan Stanley, Dean Witter,
Discover & Co. 36,000 3,570,750
- --------------------------------------------------------------
LODGING-HOTELS-0.44%
Carnival Corp. 78,000 3,217,500
- --------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-0.53%
Tyco International Ltd. 48,000 3,900,000
- --------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-1.36%
Home Depot, Inc. (The) 110,000 6,593,125
- --------------------------------------------------------------
Lowe's Companies, Inc. 63,500 3,349,625
- --------------------------------------------------------------
9,942,750
- --------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (COMPUTERS & ELECTRONICS)-0.50%
Best Buy Co., Inc.(a) 77,000 $ 3,676,750
- --------------------------------------------------------------
RETAIL (DRUG STORES)-0.46%
CVS Corp. 70,000 3,333,750
- --------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.47%
Kroger Co.(a) 62,500 3,394,531
- --------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-1.96%
Costco Companies, Inc.(a) 46,500 3,763,594
- --------------------------------------------------------------
Dayton Hudson Corp. 51,000 3,432,938
- --------------------------------------------------------------
Wal-Mart Stores, Inc. 155,000 7,130,000
- --------------------------------------------------------------
14,326,532
- --------------------------------------------------------------
RETAIL (SPECIALTY)-1.36%
Office Depot, Inc.(a) 152,250 3,349,500
- --------------------------------------------------------------
Staples, Inc.(a) 220,000 6,600,000
- --------------------------------------------------------------
9,949,500
- --------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-1.01%
Gap, Inc. (The) 50,500 3,361,406
- --------------------------------------------------------------
Intimate Brands, Inc. 80,000 4,000,000
- --------------------------------------------------------------
7,361,406
- --------------------------------------------------------------
SERVICES (ADVERTISING/MARKETING)-0.43%
Outdoor Systems, Inc.(a) 125,000 3,148,438
- --------------------------------------------------------------
SERVICES (DATA PROCESSING)-1.54%
Ceridian Corp.(a) 100,000 3,662,500
- --------------------------------------------------------------
Fiserv, Inc.(a) 130,000 7,613,125
- --------------------------------------------------------------
11,275,625
- --------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.87%
MCI WorldCom, Inc.(a) 77,000 6,328,438
- --------------------------------------------------------------
Total Domestic Common Stocks,
(Cost $221,908,837) 279,400,672
- --------------------------------------------------------------
FOREIGN COMMON STOCKS & OTHER
EQUITY INTERESTS-57.35%
ARGENTINA-1.06%
Telefonica de Argentina S.A.-ADR
(Telephone) 66,580 2,488,428
- --------------------------------------------------------------
YPF Sociedad Anonima-ADR
(Oil-International Integrated) 125,600 5,275,200
- --------------------------------------------------------------
7,763,628
- --------------------------------------------------------------
AUSTRALIA-1.35%
AMP Ltd. (Insurance-Life/Health) 201,840 2,357,468
- --------------------------------------------------------------
Brambles Industries Ltd. (Air
Freight) 102,000 2,997,271
- --------------------------------------------------------------
Cable & Wireless Optus, Ltd.
(Telephone)(a) 701,800 1,579,015
- --------------------------------------------------------------
TABCORP Holdings Ltd. (Leisure
Time Products) 361,000 2,935,980
- --------------------------------------------------------------
9,869,734
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
BELGIUM-0.80%
Delhaize-Le Lion, S.A.
(Retail-Food & Drug)(a) 34,800 $ 3,044,385
- --------------------------------------------------------------
UCB S.A.
(Manufacturing-Diversified) 60,300 2,803,238
- --------------------------------------------------------------
5,847,623
- --------------------------------------------------------------
BRAZIL-0.47%
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar-Pfd. (Retail-Food Chains) 4,350 75,853
- --------------------------------------------------------------
Embratel Participacoes S.A.-ADR
(Telephone)(a) 37,000 601,250
- --------------------------------------------------------------
Petroleo Brasileiro
S.A.-Petrobras-Pfd.
(Oil & Gas-Exploration &
Production) 6,286 1,021,725
- --------------------------------------------------------------
Tele Centro Sul Participacoes S.A.
(Telephone) 7,400 393,125
- --------------------------------------------------------------
Telebras-ADR (Telephone)(a) 5,100 465,056
- --------------------------------------------------------------
Telecomunicacoes Brasileiras
S.A.-ADR (Telephone) 37,000 2,891
- --------------------------------------------------------------
Telesp Participacoes S.A.-ADR
(Telephone) 37,000 925,000
- --------------------------------------------------------------
3,484,900
- --------------------------------------------------------------
CANADA-4.07%
ATI Technologies, Inc.
(Computers-Hardware)(a) 104,600 1,567,565
- --------------------------------------------------------------
BCE Inc. (Telephone) 76,630 3,495,127
- --------------------------------------------------------------
Bombardier Inc.
(Aerospace/Defense) 111,360 1,726,156
- --------------------------------------------------------------
CGI Group, Inc. (Services-Computer
Systems)(a) 83,500 2,061,728
- --------------------------------------------------------------
Imasco Ltd.
(Manufacturing-Diversified) 179,700 3,956,358
- --------------------------------------------------------------
JDS Fitel Inc.
(Manufacturing-Specialized)(a) 46,400 2,800,549
- --------------------------------------------------------------
Loblaw Co. Ltd. (Retail-Specialty) 43,000 1,085,322
- --------------------------------------------------------------
Northern Telecom Ltd.-ADR
(Communications Equipment) 109,046 7,435,574
- --------------------------------------------------------------
Shaw Communications Inc.
(Broadcasting-Television, Radio
& Cable) 54,000 2,222,222
- --------------------------------------------------------------
Toronto-Dominion Bank
(Banks-Regional) 63,220 3,375,636
- --------------------------------------------------------------
29,726,237
- --------------------------------------------------------------
CROATIA-0.04%
Pliva DD GDR (Health
Care-Drugs-Major Pharmaceutical)
(Acquired 05/13/98; Cost
$336,980)(b) 20,300 321,755
- --------------------------------------------------------------
FINLAND-1.52%
Nokia Oyj A.B.-Class A
(Communications Equipment) 99,200 7,645,872
- --------------------------------------------------------------
Sonera Group Oyi
(Telecommunications-Cellular/Wireless) 174,410 3,464,330
- --------------------------------------------------------------
11,110,202
- --------------------------------------------------------------
FRANCE-8.28%
Accor S.A. (Lodging-Hotels) 13,000 3,426,920
- --------------------------------------------------------------
Altran Technologies, S.A.
(Services-Commercial & Consumer) 13,340 3,171,235
- --------------------------------------------------------------
AXA S.A. (Insurance-Multi-Line) 41,580 5,368,411
- --------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FRANCE-(CONTINUED)
Banque Nationale de Paris
(Banks-Major Regional) 47,560 $ 3,942,075
- --------------------------------------------------------------
Cap Gemini Sogeti S.A.
(Computer-Software & Services) 23,520 3,595,803
- --------------------------------------------------------------
Carrefour Supermarche S.A.
(Retail-Food Chains) 6,900 5,467,646
- --------------------------------------------------------------
Compagnie Generale des Eaux
(Manufacturing-Diversified) 8,700 2,032,348
- --------------------------------------------------------------
Danone (Foods) 13,280 3,549,839
- --------------------------------------------------------------
Elf Aquitaine S.A. (Oil &
Gas-Refining & Marketing) 20,300 3,152,851
- --------------------------------------------------------------
Pinault-Printemps-Redoute S.A.
(Retail-General Merchandise) 25,320 4,200,040
- --------------------------------------------------------------
Promodes (Retail-Food Chains) 5,570 3,530,990
- --------------------------------------------------------------
Rexal S.A. (Distributors-Food &
Health) 8,920 739,817
- --------------------------------------------------------------
Rhone-Poulenc-Class A
(Chemicals-Diversified) 96,980 4,610,890
- --------------------------------------------------------------
Societe Generale (Banks-Major
Regional) 16,040 2,870,832
- --------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio
& Cable) 17,170 3,356,078
- --------------------------------------------------------------
Suez Lyonnaise des Eaux
(Manufacturing-Diversified) 20,590 3,502,453
- --------------------------------------------------------------
Total S.A.-Class B (Oil &
Gas-Refining & Marketing) 28,800 3,943,552
- --------------------------------------------------------------
60,461,780
- --------------------------------------------------------------
GERMANY-2.62%
Allianz A.G.
(Insurance-Multi-Line) 6,060 1,930,412
- --------------------------------------------------------------
DaimlerChrysler A.G. (Automobiles) 22,280 2,199,807
- --------------------------------------------------------------
DaimlerChrysler A.G.-ADR
(Automobiles) 46,025 4,519,080
- --------------------------------------------------------------
EM.TV & Merchandising A.G.
(Broadcasting-Television, Radio,
& Cable)(a) 2,000 1,891,224
- --------------------------------------------------------------
Mannesmann A.G.
(Machinery-Diversified) 52,360 6,892,991
- --------------------------------------------------------------
Porsche A.G. (Automobiles) 700 1,730,629
- --------------------------------------------------------------
19,164,143
- --------------------------------------------------------------
HONG KONG-2.03%
China Telecom Ltd.
(Telecommunications-Cellular/Wireless)(a) 1,496,000 3,416,340
- --------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 5,219,000 3,535,109
- --------------------------------------------------------------
Dao Heng Bank Group Ltd.
(Banks-Regional)(a) 828,000 3,365,094
- --------------------------------------------------------------
Hutchison Whampoa Ltd.
(Retail-Food Chains) 392,000 3,515,015
- --------------------------------------------------------------
Ng Fung Hong Ltd. (Foods) 1,041,700 1,007,999
- --------------------------------------------------------------
14,839,557
- --------------------------------------------------------------
INDONESIA-0.26%
Gulf Indonesia Resources Ltd.
(Oil-International
Integrated)(a) 182,800 1,885,125
- --------------------------------------------------------------
IRELAND-1.20%
Allied Irish Banks PLC
(Banks-Regional) 290,600 4,681,084
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
IRELAND-(CONTINUED)
Bank of Ireland (Banks-Major
Regional) 90,242 $ 1,804,380
- --------------------------------------------------------------
CRH PLC (Construction-Cement &
Aggregates) 116,000 2,276,491
- --------------------------------------------------------------
8,761,955
- --------------------------------------------------------------
ITALY-2.45%
Assicurazioni Generali
(Insurance-Multi-Line) 90,550 3,525,462
- --------------------------------------------------------------
Banca Commerciale Italiana
(Banks-Major Regional) 277,000 2,279,855
- --------------------------------------------------------------
Banca Popolare di Brescia
(Banks-Regional)(a) 48,000 1,650,754
- --------------------------------------------------------------
Credito Italiano S.p.A.
(Banks-Major Regional) 606,100 3,073,800
- --------------------------------------------------------------
Olivetti S.p.A.
(Telecommunications-(Cellular/
Wireless)(a) 508,840 1,774,129
- --------------------------------------------------------------
San Paolo-IMI S.p.A. (Banks-Major
Regional) 173,170 2,598,071
- --------------------------------------------------------------
Telecom Italia S.p.A. (Telephone) 278,388 2,961,898
- --------------------------------------------------------------
17,863,969
- --------------------------------------------------------------
JAPAN-7.49%
Advantest Corp.
(Electronics-Instrumentation) 50,000 3,822,483
- --------------------------------------------------------------
Alpa Electric Co., Ltd.
(Electronics-Component
Distributors)(a) 207,000 3,509,943
- --------------------------------------------------------------
Hirose Electric Co. Ltd.
(Electronics-Component
Distributors) 22,100 2,054,093
- --------------------------------------------------------------
Hoya
Corp.(Manufacturing-Specialized) 57,000 2,983,044
- --------------------------------------------------------------
Kirin Brewery Co., Ltd.
(Beverages-Alcoholic)(a) 311,000 3,515,596
- --------------------------------------------------------------
Matsushita Communication
Industrial Co., Ltd. (Telephone) 63,000 4,520,913
- --------------------------------------------------------------
Murata Manufacturing Co., Ltd.
(Electronics-Component
Distributors) 80,000 4,575,256
- --------------------------------------------------------------
NEC Corp. (Computers-Hardware) 358,000 4,274,716
- --------------------------------------------------------------
Nippon Telegraph & Telephone Corp.
(Telephone) 432 4,702,533
- --------------------------------------------------------------
NTT Data Corp. (Computers-Software
& Services) 518 4,098,891
- --------------------------------------------------------------
NTT Mobile Communications Network,
Inc.
(Telecommunications-Cellular/Wireless) 87 5,099,435
- --------------------------------------------------------------
Okuma Corp. (Machine Tools) 582,000 2,924,011
- --------------------------------------------------------------
Omron Corp. (Electronics-Component
Distributors) 13,000 179,066
- --------------------------------------------------------------
Takeda Chemical Industries (Health
Care-Drugs-Generic & Other) 94,000 4,085,074
- --------------------------------------------------------------
Tokyo Electron Ltd.
(Electronics-Semiconductors) 77,000 4,384,342
- --------------------------------------------------------------
54,729,396
- --------------------------------------------------------------
MEXICO-3.35%
Cifra S.A. de C.V. (Retail-General
Merchandise)(a) 1,689,000 3,162,305
- --------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages-Non-Alcoholic) 148,000 3,061,750
- --------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEXICO-(CONTINUED)
Formento Economico Mexicano, S.A.
de C.V. (Beverages-Alcoholic) 111,590 $ 4,059,086
- --------------------------------------------------------------
Grupo Financiero Banamex Accival,
S.A. de C.V.
(Financial-Diversified)(b) 1,353,600 3,449,922
- --------------------------------------------------------------
Grupo Modelo S.A. de C.V.-Series C
(Beverages-Alcoholic) 445,440 1,173,860
- --------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 105,200 4,313,200
- --------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.-Class A (Paper & Forest
Products) 518,000 2,018,182
- --------------------------------------------------------------
Telefonos de Mexico S.A.-ADR
(Telephone) 42,500 3,219,375
- --------------------------------------------------------------
24,457,680
- --------------------------------------------------------------
NETHERLANDS-2.80%
Equant N.V.
(Computers-Peripherals)(a) 17,000 1,542,880
- --------------------------------------------------------------
Getronics N.V. (Computers-Software
& Services) 47,560 1,952,194
- --------------------------------------------------------------
Koninklijke Ahold N.V.
(Retail-Food Chains) 152,200 5,652,363
- --------------------------------------------------------------
Koninklijke Numico N.V. (Foods) 37,580 1,413,503
- --------------------------------------------------------------
Philips Electronics N.V.
(Household Furniture &
Appliances) 23,000 1,980,503
- --------------------------------------------------------------
Verenigde Nederlandse
Uitgeversbedrijven Verenigd
Bezit (Publishing) 101,830 4,120,639
- --------------------------------------------------------------
Wolters Kluwer N.V.
(Specialty-Printing) 86,460 3,763,592
- --------------------------------------------------------------
20,425,674
- --------------------------------------------------------------
NEW ZEALAND-0.43%
Auckland International Airport
Ltd. (Airlines) 1,800,000 3,125,358
- --------------------------------------------------------------
NORWAY-0.15%
Merkantildata A.S.A.
(Services-Commercial & Consumer) 106,720 1,065,765
- --------------------------------------------------------------
PHILIPPINES-0.31%
Philippine Long Distance Telephone
Co. (Telephone) 49,020 1,585,657
- --------------------------------------------------------------
Philippine Long Distance Telephone
Co.-ADR (Telephone) 20,650 665,963
- --------------------------------------------------------------
2,251,620
- --------------------------------------------------------------
PORTUGAL-0.88%
Banco Comercial Portugues, S.A.
(Banks-Major Regional) 116,580 3,287,477
- --------------------------------------------------------------
Jeronimo Martins & Filho, S.A.
(Retail-General Merchandise) 31,320 1,030,789
- --------------------------------------------------------------
Telecel-Comunicacaoes Pessoais,
S.A.
(Telecommunications-Cellular/Wireless) 15,600 2,084,996
- --------------------------------------------------------------
6,403,262
- --------------------------------------------------------------
SINGAPORE-1.46%
Allgreen Properties Ltd.
(Homebuilding)(a) 1,020,000 619,348
- --------------------------------------------------------------
Development Bank of Singapore Ltd.
(Banks-Major Regional) 241,000 2,557,331
- --------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction)(a) 782,600 2,232,968
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SINGAPORE-(CONTINUED)
NatSteel Ltd. (Computers-Hardware) 1,553,000 $ 2,343,736
- --------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing-Newspapers) 200,000 2,947,592
- --------------------------------------------------------------
10,700,975
- --------------------------------------------------------------
SPAIN-1.71%
Banco Popular Espanol S.A.
(Banks-Major Regional)(a) 26,000 1,840,510
- --------------------------------------------------------------
Corp. Financiera Reunida, S.A.
(Investment Management)(a) 119,480 1,405,013
- --------------------------------------------------------------
Endesa S.A. (Electric Companies) 83,550 1,857,301
- --------------------------------------------------------------
Telefonica de Espana (Telephone) 100,460 4,707,354
- --------------------------------------------------------------
Telefonica S.A. (Telephone), Bonus
Rights (expiring 05/20/99) 100,460 93,404
- --------------------------------------------------------------
Union Electrica Fenosa, S.A.
(Electric Companies) 197,000 2,620,487
- --------------------------------------------------------------
12,524,069
- --------------------------------------------------------------
SWEDEN-1.50%
Electrolux A.B. (Household
Furniture & Appliances) 170,000 3,445,538
- --------------------------------------------------------------
Hennes & Mauritz A.B.-Class B
(Retail-Specialty-Apparel) 52,660 4,537,611
- --------------------------------------------------------------
Svenska Handelsbanken-Class A
(Banks-Major Regional) 30,650 1,147,967
- --------------------------------------------------------------
WM-Data A.B. (Computers-Software &
Services) 48,720 1,790,115
- --------------------------------------------------------------
10,921,231
- --------------------------------------------------------------
SWITZERLAND-2.10%
ABB A.G. (Engineering &
Construction) 2,000 2,916,694
- --------------------------------------------------------------
Adecco S.A. (Services-Commercial &
Consumer) 6,600 3,326,604
- --------------------------------------------------------------
Julius Baer Holding A.G.
(Banks-Major Regional)(a) 545 1,773,563
- --------------------------------------------------------------
UBS A.G. (Banks-Major Regional) 8,398 2,851,336
- --------------------------------------------------------------
Zurich Allied A.G.
(Insurance-Multi-Line)(a) 6,960 4,484,289
- --------------------------------------------------------------
15,352,486
- --------------------------------------------------------------
TAIWAN-0.32%
Inventec Co., Ltd.
(Computers-Hardware)(a) 714,000 2,347,248
- --------------------------------------------------------------
UNITED KINGDOM-8.70%
Airtours PLC (Services-Commercial
& Consumer) 250,200 1,730,628
- --------------------------------------------------------------
Barclays PLC (Banks-Major
Regional) 73,500 2,333,902
- --------------------------------------------------------------
British Energy PLC (Electric
Companies) 290,000 2,465,421
- --------------------------------------------------------------
British Sky Broadcasting Group PLC
(Broadcasting-Television, Radio
& Cable) 440,000 3,885,734
- --------------------------------------------------------------
British Telecommunications PLC
(Communications Equipment) 116,000 1,948,079
- --------------------------------------------------------------
Cable & Wireless PLC
(Telecommunications-Cellular/Wireless) 262,200 3,762,232
- --------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Compass Group PLC
(Services-Commercial & Consumer) 288,800 $ 2,959,271
- --------------------------------------------------------------
Dixons Group PLC
(Retail-Specialty) 226,300 4,830,627
- --------------------------------------------------------------
General Electric Co. PLC
(Manufacturing-Diversified) 367,100 3,888,555
- --------------------------------------------------------------
Granada Group PLC (Leisure
Time-Products) 268,000 5,725,072
- --------------------------------------------------------------
Hays PLC (Services-Commercial &
Consumer) 461,300 5,127,546
- --------------------------------------------------------------
Logica PLC (Computer
Software/Services) 232,000 2,239,171
- --------------------------------------------------------------
Misys PLC (Services-Commercial &
Consumer) 348,000 3,266,391
- --------------------------------------------------------------
Orange PLC (Telephone)(a) 310,300 4,222,797
- --------------------------------------------------------------
Provident Financial PLC (Consumer
Finance) 202,478 3,377,572
- --------------------------------------------------------------
Railtrack Group PLC (Shipping) 141,289 2,947,788
- --------------------------------------------------------------
Stagecoach Holdings PLC (Shipping) 214,600 724,069
- --------------------------------------------------------------
Unilever PLC (Foods) 165,900 1,470,436
- --------------------------------------------------------------
Vodafone Group PLC
(Telecommunications-Cellular/Wireless) 185,300 3,412,942
- --------------------------------------------------------------
WPP Group PLC
(Services-Advertising/
Marketing) 366,600 3,237,523
- --------------------------------------------------------------
63,555,756
- --------------------------------------------------------------
Total Foreign Common Stocks &
Other Equity Interests (Cost
$343,597,281) 418,961,128
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
NON-U.S. DOLLAR DENOMINATED
CONVERTIBLE BONDS &
NOTES-0.24%(C)
UNITED KINGDOM-0.24%
Airtours PLC (Services-Commercial
& Consumer)
Conv. Sub. Notes, 5.75%,
01/05/04 GBP 113,000 $ 201,540
- --------------------------------------------------------------
Conv. Sub. Notes, 5.75%,
01/05/04
(Acquired 12/09/98; Cost
$1,452,475)(b) 878,000 1,565,944
- --------------------------------------------------------------
Total Non-U.S. Dollar
Denominated Convertible
Bonds & Notes, (Cost
$1,642,654) 1,767,484
- --------------------------------------------------------------
REPURCHASE AGREEMENT-2.00%(D)
West LB Securities Americas, Inc.,
4.88%, 05/03/99(e) (Cost
$14,626,170) $14,626,170 14,626,170
- --------------------------------------------------------------
TOTAL INVESTMENTS-97.83% 714,755,454
- --------------------------------------------------------------
OTHER ASSETS LESS OF
LIABILITIES-2.17% 15,851,343
- --------------------------------------------------------------
NET ASSETS-100.00% $730,606,797
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GBP - British Pounds Sterling
GDR - Global Depositary Receipt
Pfd. - Preferred
Sub. - Subordinated
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 $1,887,699 which represented 0.26%
of the Fund's net assets.
(c)Foreign denominated security. Par value and coupon are denominated in
currency indicated.
(d)Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value is at least 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(e)Joint repurchase agreement entered into 04/30/99 with a maturing value of
$250,101,667. Collateralized by $249,045,000 U.S. Government obligations,
4.00% to 8.75% due 08/31/00 to 11/15/08 with an aggregate market value at
04/30/99 of $255,023,179.
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$581,774,942) $714,755,454
- -------------------------------------------------------
Foreign currencies, at value (cost
$5,129,747) 5,154,627
- -------------------------------------------------------
Receivables for:
Investments sold 16,843,700
- -------------------------------------------------------
Capital stock sold 1,670,385
- -------------------------------------------------------
Dividends and interest 1,026,116
- -------------------------------------------------------
Investment for deferred compensation plan 18,749
- -------------------------------------------------------
Other assets 50,165
- -------------------------------------------------------
Total assets 739,519,196
=======================================================
LIABILITIES:
Payables for:
Investments purchased 5,882,738
- -------------------------------------------------------
Capital stock reacquired 1,617,920
- -------------------------------------------------------
Deferred compensation 18,749
- -------------------------------------------------------
Accrued advisory fees 512,346
- -------------------------------------------------------
Accrued administrative services fees 8,134
- -------------------------------------------------------
Accrued directors' fees 5,600
- -------------------------------------------------------
Accrued distribution fees 538,057
- -------------------------------------------------------
Accrued transfer agent fees 144,680
- -------------------------------------------------------
Accrued operating expenses 184,175
- -------------------------------------------------------
Total liabilities 8,912,399
- -------------------------------------------------------
Net assets applicable to shares
outstanding $730,606,797
=======================================================
NET ASSETS:
Class A $339,528,208
=======================================================
Class B $369,498,327
=======================================================
Class C $ 21,580,262
=======================================================
CAPITAL STOCK, $0.001 PAR VALUE PER
SHARE:
Class A:
Authorized 200,000,000
- -------------------------------------------------------
Outstanding 16,474,741
=======================================================
Class B:
Authorized 200,000,000
- -------------------------------------------------------
Outstanding 18,391,095
=======================================================
Class C:
Authorized 200,000,000
- -------------------------------------------------------
Outstanding 1,073,688
=======================================================
Class A:
Net asset value and redemption price
per share $ 20.61
- -------------------------------------------------------
Offering price per share:
(Net asset value $20.61 / 95.25%) $ 21.64
=======================================================
Class B:
Net asset value and offering price per
share $ 20.09
=======================================================
Class C:
Net asset value and offering price per
share $ 20.10
=======================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $231,741 foreign
withholding tax) $ 2,055,138
- --------------------------------------------------------
Interest 956,993
- --------------------------------------------------------
Total investment income 3,012,131
- --------------------------------------------------------
EXPENSES:
Advisory fees 2,638,830
- --------------------------------------------------------
Administrative services fees 47,945
- --------------------------------------------------------
Custodian fees 188,807
- --------------------------------------------------------
Directors' fees 8,247
- --------------------------------------------------------
Distribution fees -- Class A 695,874
- --------------------------------------------------------
Distribution fees -- Class B 1,633,641
- --------------------------------------------------------
Distribution fees -- Class C 79,117
- --------------------------------------------------------
Transfer agent fees -- Class A 317,271
- --------------------------------------------------------
Transfer agent fees -- Class B 463,485
- --------------------------------------------------------
Transfer agent fees -- Class C 26,793
- --------------------------------------------------------
Other 116,938
- --------------------------------------------------------
Total expenses 6,216,948
- --------------------------------------------------------
Less:
Expenses paid indirectly (6,444)
- --------------------------------------------------------
Net expenses 6,210,504
- --------------------------------------------------------
Net investment income (loss) (3,198,373)
========================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN
CURRENCIES AND FUTURES CONTRACTS:
Net realized gain (loss) from:
Investment securities 47,037,157
- --------------------------------------------------------
Foreign currencies (136,705)
- --------------------------------------------------------
Futures contracts 2,042,833
- --------------------------------------------------------
48,943,285
- --------------------------------------------------------
Net unrealized appreciation (depreciation)
of:
Investment securities 52,974,718
- --------------------------------------------------------
Foreign currencies (29,687)
- --------------------------------------------------------
Futures contracts (797,175)
- --------------------------------------------------------
52,147,856
- --------------------------------------------------------
Net gain from investment securities,
foreign currencies and futures
contracts 101,091,141
- --------------------------------------------------------
Net increase in net assets resulting from
operations $ 97,892,768
========================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 AND THE YEAR ENDED OCTOBER 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
------------ -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (3,198,373) $ (2,809,816)
- -------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and futures contracts 48,943,285 18,919,692
- -------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities,
foreign currencies and futures contracts 52,147,856 20,734,353
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 97,892,768 36,844,229
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (6,185,146) (4,566,706)
- -------------------------------------------------------------------------------------------
Class B (7,892,336) (5,964,749)
- -------------------------------------------------------------------------------------------
Class C (358,282) (47,034)
- -------------------------------------------------------------------------------------------
Share transactions-net:
Class A 82,661,988 27,194,800
- -------------------------------------------------------------------------------------------
Class B 43,388,019 44,408,521
- -------------------------------------------------------------------------------------------
Class C 7,827,618 11,162,365
- -------------------------------------------------------------------------------------------
Net increase in net assets 217,334,629 109,031,426
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 513,272,168 404,240,742
- -------------------------------------------------------------------------------------------
End of period $730,606,797 $ 513,272,168
===========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $550,343,771 $ 416,466,146
- -------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (4,437,320) (1,238,947)
- -------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures and option
contracts 51,724,054 17,216,533
- -------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, futures and option contracts 132,976,292 80,828,436
- -------------------------------------------------------------------------------------------
$730,606,797 $ 513,272,168
===========================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999
(UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Growth Fund (the "Fund") is an investment portfolio of AIM
International Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end series management investment company consisting of six
separate portfolios. 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, at the closing bid
price on the day of valuation. Securities traded in the over-the-counter
market (but
11
<PAGE> 14
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 an independent
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as yield, type of issue,
coupon rate and maturity date. Securities for which market quotations are
either not readily available or are questionable are valued at fair value as
determined in good faith by or under the supervision of the Company's
officers in a manner specifically authorized by the Board of Directors.
Investments with maturities of 60 days or less are valued on the basis of
amortized cost which approximates market value. Generally, trading in foreign
securities is substantially completed each day at various times prior to the
close of the New York Stock Exchange. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times. Foreign currency exchange rates are also generally determined prior to
the close of the New York Stock Exchange. Occasionally, events affecting the
values of such securities and such exchange rates may occur between the times
at which they are determined and the close of the New York Stock Exchange
which 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.
G. Stock Index Futures Contracts-The Fund may purchase or sell stock index
futures contracts as a hedge against changes in market conditions. Initial
margin deposits required upon entering into futures contracts are satisfied
by the segregation of specific securities as collateral for the account of
the broker (the Fund's agent in acquiring the futures position). During the
period the futures contracts are open, changes in the value of the contracts
are recognized as unrealized gains or losses by "marking to market" on a
daily basis to reflect the market value of the contracts at the end of each
day's trading. Variation margin payments are made or received depending upon
whether unrealized gains or losses are incurred. When the contracts are
closed, the Fund recognizes a realized gain or loss equal to the difference
between the proceeds from, or cost of, the closing transaction and the Fund's
basis in the contract. Risks include the possibility of an illiquid market
and that a change in the value of contracts may not correlate with changes in
the value of the securities being hedged.
H. Covered Call Options-The Fund may write call options, but only on a covered
basis; that is, the Fund will own the underlying security. Options written by
the Fund normally will have expiration dates between three and nine months
from the date written. The exercise price of a call option may be below,
equal to, or above the current market value of the underlying security at the
time the option is written. When the Fund writes a covered call option, an
amount equal to the premium received by the Fund is recorded as an asset and
an equivalent liability. The amount of the liability is subsequently
"marked-to-market" to reflect the current market value of the option written.
The current market value of a written option is the mean between the last bid
and asked prices on that day. If a written call option expires on the
stipulated expiration date, or if the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or a loss if the closing purchase
transaction exceeds the premium received when the option was written) without
regard to any unrealized gain or loss on the underlying security, and the
liability related to such option is extinguished. If a written option is
exercised, the Fund realizes a gain or a loss from the
12
<PAGE> 15
sale of the underlying security and the proceeds of the sale are increased by
the premium originally received.
A call option gives the purchaser of such option the right to buy, and the
writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the
call option at any time during the option period. During the option period,
in return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for capital appreciation above the exercise price
should the market price of the underlying security increase, but has
retained the risk of loss should the price of the underlying security
decline. During the option period, the Fund may be required at any time to
deliver the underlying security against payment of the exercise price. This
obligation is terminated upon the expiration of the option period or at such
earlier time at which the Fund effects a closing purchase transaction by
purchasing (at a price which may be higher than that received when the call
option was written) a call option identical to the one originally written.
I. Put options-The Fund may purchase put options. By purchasing a put option,
the Fund obtains the right (but not the obligation) to sell the option's
underlying instrument at a fixed strike price. In return for this right, a
Fund pays an option premium. The option's underlying instrument may be a
security, or a futures contract. Put options may be used by a Fund to hedge
securities it owns by locking in a minimum price at which the Fund can sell.
If security prices fall, the put option could be exercised to offset all or a
portion of the Fund's resulting losses. At the same time, because the maximum
the Fund has at risk is the cost of the option, purchasing put options does
not eliminate the potential for the Fund to profit from an increase in the
value of the securities hedged.
J. 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 0.85% of
the first $1 billion of the Fund's average daily net assets, plus 0.80% of the
Fund's average daily net assets in excess of $1 billion.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to reimburse AIM for administrative costs incurred in providing
accounting services to the Fund. During the six months ended April 30, 1999, AIM
was reimbursed $47,945 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency
services to the Fund. During the six months ended April 30, 1999, AFS was paid
$461,304 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
$695,874, $1,633,641 and $79,117, respectively, as compensation under the Plans.
AIM Distributors received commissions of $86,055 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 $16,760 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
$1,163 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 $4,189 and $2,255, respectively, under expense offset arrangements. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $6,444 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.
13
<PAGE> 16
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
$421,210,440 and $360,767,920, 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 $143,790,260
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (12,487,541)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $131,302,719
=========================================================
</TABLE>
Cost of investments for tax purposes is $583,452,735.
NOTE 7-CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1999 and the year ended October 31, 1998 were as follows:
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 10,061,660 $ 196,723,664 14,601,141 $264,657,310
- ------------------------------------------------------------------------------
Class B 4,342,290 83,747,906 4,603,864 82,487,081
- ------------------------------------------------------------------------------
Class C* 529,211 10,296,707 731,595 13,444,846
- ------------------------------------------------------------------------------
Issued as reinvestment of
distributions:
Class A 314,742 5,777,394 265,883 4,315,756
- ------------------------------------------------------------------------------
Class B 411,122 7,371,557 348,564 5,562,820
- ------------------------------------------------------------------------------
Class C* 18,825 338,398 2,787 44,837
- ------------------------------------------------------------------------------
Reacquired:
Class A (6,134,007) (119,839,070) (13,382,242) (241,778,266)
- ------------------------------------------------------------------------------
Class B (2,485,859) (47,731,444) (2,513,498) (43,641,380)
- ------------------------------------------------------------------------------
Class C* (145,774) (2,807,487) (130,050) (2,327,318)
- ------------------------------------------------------------------------------
6,912,210 $ 133,877,625 4,528,044 $ 82,765,686
==============================================================================
</TABLE>
* Class C shares commenced sales on August 4, 1997.
14
<PAGE> 17
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 April 30, 1999, each of the
years in the four-year period ended October 31, 1998 and the period September
15, 1994 (date operations commenced) through October 31, 1994 and for a share of
Class C capital stock outstanding during the six months 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 $ 17.91 $ 16.65 $ 14.20 $ 12.32 $ 10.23 $10.00
- ------------------------------------------------------------ -------- -------- -------- -------- ------- ------
Income from investment operations:
Net investment income (loss) (0.05) (0.05) (0.04) (0.01) (0.02) -
- ------------------------------------------------------------ -------- -------- -------- -------- ------- ------
Net gains on securities (both realized and unrealized) 3.25 1.74 2.49 2.11 2.11 0.23
- ------------------------------------------------------------ -------- -------- -------- -------- ------- ------
Total from investment operations 3.20 1.69 2.45 2.10 2.09 0.23
- ------------------------------------------------------------ -------- -------- -------- -------- ------- ------
Less distributions:
Dividends from net investment income - - - - (0.004) -
- ------------------------------------------------------------ -------- -------- -------- -------- ------- ------
Distributions from net realized gains (0.50) (0.43) - (0.22) - -
- ------------------------------------------------------------ -------- -------- -------- -------- ------- ------
Total distributions (0.50) (0.43) - (0.22) (0.004) -
- ------------------------------------------------------------ -------- -------- -------- -------- ------- ------
Net asset value, end of period $ 20.61 $ 17.91 $ 16.65 $ 14.20 $ 12.32 $10.23
============================================================ ======== ======== ======== ======== ======= ======
Total return(a) 18.20% 10.43% 17.25% 17.26% 20.48% 2.30%
============================================================ ======== ======== ======== ======== ======= ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $339,528 $219,050 $178,917 $114,971 $23,754 $3,093
============================================================ ======== ======== ======== ======== ======= ======
Ratio of expenses to average net assets(b) 1.69%(c) 1.70% 1.76% 1.93% 2.12% 1.95%(d)
============================================================ ======== ======== ======== ======== ======= ======
Ratio of net investment income (loss) to average net
assets(e) (0.72)%(c) (0.27)% (0.30)% (0.13)% (0.28)% 0.10%(d)
============================================================ ======== ======== ======== ======== ======= ======
Portfolio turnover rate 62% 97% 96% 82% 79% 6%
============================================================ ======== ======== ======== ======== ======= ======
</TABLE>
(a) Does not deduct sales charges and is not annualized for periods less than
one year.
(b) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.94%, 2.98% and 5.67% (annualized) for 1996-1994.
(c) Ratios are annualized and based on average net assets of $280,656,230.
(d) Annualized.
(e) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.14)%, (1.14)% and (3.63)% (annualized) for 1996-1994.
<TABLE>
<CAPTION>
CLASS B CLASS C
---------------------------------------------------------------- -----------------------------
OCTOBER 31, OCTOBER 31,
APRIL 30, --------------------------------------------------- APRIL 30, ----------------
1999 1998 1997 1996 1995 1994 1999 1998 1997
--------- -------- -------- -------- ------- ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 17.52 $ 16.39 $ 14.05 $ 12.26 $ 10.22 $10.00 $ 17.52 $ 16.39 $17.39
- ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------
Income from investment
operations:
Net investment income
(loss) (0.12)(a) (0.15)(a) (0.11) (0.05) (0.04) - (0.12)(a) (0.15)(a) (0.03)
- ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------
Net gains (losses) on
securities (both realized
and unrealized) 3.19 1.71 2.45 2.06 2.08 0.22 3.20 1.71 (0.97)
- ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------
Total from investment
operations 3.07 1.56 2.34 2.01 2.04 0.22 3.08 1.56 (1.00)
- ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------
Less distributions:
Distributions from net
realized gains (0.50) (0.43) - (0.22) - - (0.50) (0.43) -
- ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------
Total distributions (0.50) (0.43) - (0.22) - - (0.50) (0.43) -
- ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------
Net asset value, end of
period $ 20.09 $ 17.52 $ 16.39 $ 14.05 $ 12.26 $10.22 $ 20.10 $ 17.52 $16.39
============================= ======== ======== ======== ======== ======= ====== ======= ======= ======
Total return(b) 17.86% 9.78% 16.65% 16.60% 19.96% 2.20% 17.91% 9.78% (5.75)%
============================= ======== ======== ======== ======== ======= ====== ======= ======= ======
Ratios/supplemental data:
Net assets, end of period
(000s omitted) $369,498 $282,456 $224,225 $121,848 $17,157 $1,277 $21,580 $11,765 $1,100
============================= ======== ======== ======== ======== ======= ====== ======= ======= ======
Ratio of expenses to average
net assets 2.25%(c) 2.26% 2.29% 2.48%(d) 2.64%(d) 2.51%(d)(e) 2.25%(c) 2.26% 2.29%(e)
============================= ======== ======== ======== ======== ======= ====== ======= ======= ======
Ratio of net investment
income (loss) to average
net assets (1.28)%(c) (0.83)% (0.83)% (0.69)%(f) (0.79)%(f) (0.47)%(e)(f) (1.28)%(c) (0.83)% (0.83)%(e)
============================= ======== ======== ======== ======== ======= ====== ======= ======= ======
Portfolio turnover rate 62% 97% 96% 82% 79% 6% 62% 97% 96%
============================= ======== ======== ======== ======== ======= ====== ======= ======= ======
</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 $329,435,979 and
$15,954,505 for Class B and Class C, respectively.
(d) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
2.49%, 3.38% and 6.20% (annualized) for 1996-1994.
(e) Annualized.
(f) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.69)%, (1.54)% and (4.16)% (annualized) for
1996-1994.
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--Registered Trademark--. 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 MONEY MARKET FUNDS A I M Management Group Inc. has
AIM Aggressive Growth Fund(1) AIM Money Market Fund provided leadership in the
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund mutual-fund industry since 1976
AIM Capital Development Fund and managed approximately $112
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS billion in assets for more than
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund 6.3 million shareholders,
AIM Large Cap Growth Fund AIM Asian Growth Fund including individual investors,
AIM Mid Cap Equity Fund(2), (A) AIM Developing Markets Fund(2) corporate clients and financial
AIM Select Growth Fund(3) AIM Europe Growth Fund(2) institutions as of March 31,
AIM Small Cap Growth Fund(2), (B) AIM European Development Fund 1999.
AIM Small Cap Opportunities Fund AIM International Equity Fund The AIM Family of
AIM Value Fund AIM Japan Growth Fund(2) Funds--Registered Trademark--
AIM Weingarten Fund AIM Latin American Growth Fund(2) is distributed nationwide, and
AIM New Pacific Growth Fund(2) AIM today is the 10th-largest
GROWTH & INCOME FUNDS mutual-fund complex in the
AIM Advisor Flex Fund GLOBAL GROWTH FUNDS United States in assets under
AIM Advisor Large Cap Value Fund AIM Global Aggressive Growth Fund management, according to
AIM Advisor Real Estate Fund AIM Global Growth Fund Strategic Insight, an
AIM Balanced Fund independent mutual-fund
AIM Basic Value Fund(2), (C) GLOBAL GROWTH & INCOME FUNDS monitor.
AIM Charter Fund AIM Global Growth & Income Fund(2)
AIM Global Utilities Fund
INCOME FUNDS
AIM Floating Rate Fund(2) GLOBAL INCOME FUNDS
AIM High Yield Fund AIM Emerging Markets Debt Fund(2), (D)
AIM High Yield Fund II AIM Global Government Income Fund(2)
AIM Income Fund AIM Global Income Fund
AIM Intermediate Government Fund AIM Strategic Income Fund(2)
AIM Limited Maturity Treasury Fund
THEME FUNDS
TAX-FREE INCOME FUNDS AIM Global Consumer Products and Services Fund(2)
AIM High Income Municipal Fund AIM Global Financial Services Fund(2)
AIM Municipal Bond Fund AIM Global Health Care Fund(2)
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Infrastructure Fund(2)
AIM Tax-Free Intermediate Fund AIM Global Resources Fund(2)
AIM Global Telecommunications and Technology Fund(2), (E)
AIM Global Trends Fund(2), (F)
</TABLE>
(1)AIM Aggressive Growth Fund reopened to new investors November 16, 1998.
(2)Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former GT
Global Funds. (3)On May 1, 1998, AIM Growth Fund was renamed AIM Select Growth
Fund. (A)On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap
Equity Fund. (B)On September 8, 1998, AIM Small Cap Equity Fund was renamed AIM
Small Cap Growth Fund. (C)On September 8, 1998, AIM America Value Fund was
renamed AIM Basic Value Fund. (D)On September 8, 1998, AIM Global High Income
Fund was renamed AIM Emerging Markets Debt Fund. (E)On June 1, 1999, AIM Global
Telecommunications Fund was renamed AIM Global Telecommunications and Technology
Fund. (F)On September 8, 1998, AIM New Dimension Fund was renamed AIM Global
Trends Fund. For more complete information about any AIM Fund(s), including
sales charges and expenses, ask your 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--
