<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM ASIAN GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
TWO FISH BY JOHN S. BUNKER
THE POWER AND TURBULENCE DEPICTED IN THIS BOLD WATERCOLOR
VIVIDLY EXPRESS THE FORCES OF CHANGE SHAPING THE ASIAN REGION.
ASIA'S CITIES AND NATIONS FACE BOTH CHALLENGE AND OPPORTUNITY
AS THEY DEVELOP THEIR ROLES IN THE GLOBAL ECONOMY.
-------------------------------------
AIM Asian Growth Fund is for shareholders who seek long-term growth of capital.
The fund invests in a diversified portfolio of companies located in Asia with
strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Asian Growth Fund's performance figures are historical, and they reflect
the reinvestment of distributions and changes in net asset value.
o Had fees and expenses not been waived, returns would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales charge structure and class
expenses.
o Investing in emerging markets may involve greater risk and potential reward
than investing in more established markets
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
custodial arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
o The fund participates in the initial public offering (IPO) market, and a
significant portion of its return is attributable to its investment in IPOs,
which have a magnified impact due to the fund's relatively small asset base.
There is no guarantee that as the fund grows, it will continue to experience
substantially similar performance by investing in IPOs.
o Investing in a single-sector or single-region mutual fund may involve
greater risk and potential reward than investing in a more diversified fund.
o Investing in micro-, small and mid-sized companies may involve risks not
associated with more established companies. Also, micro and small companies
may have business risk, significant stock-price fluctuations and
illiquidity.
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.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged MSCI All Country (AC) Asia Pacific Free ex-Japan Index
measures the performance of 12 developed and emerging markets in the region.
A "free" index excludes stocks that non-local investors cannot buy.
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising all
domestic and non-U.S. based common stocks listed on the Nasdaq system. It
includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company stock universe. While
it includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends and they do not include 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 ASIAN GROWTH FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I had
Charles T. the idea of creating a mutual fund company that put people
Bauer, first. Our slogan, "people are the product," means that
Chairman of people--our employees and our investors--are our company.
the Board of Almost a quarter-century later, we've grown to more than
THE FUND seven million investors, $176 billion in assets under
APPEARS HERE] management and 53 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham phenomenal growth. You are the main reason for our success,
APPEARS HERE] and I want you to know how much I appreciate your loyalty and
trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like to
say thank you. I am retiring as chairman of the AIM Funds
effective September 30, and as chairman of AIM effective December 31, 2000. Bob
Graham, whose picture appears under mine, will succeed me as AIM's chairman and
chairman of the AIM Funds. Gary Crum will remain president of A I M Capital
Management, Inc., leading our investment division. I am enormously proud to
leave AIM in such capable hands.
I'm also very proud of our team of employees, now more than 2,300 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent
market activity, how they have managed your fund over the past six months and
their outlook for the coming months. We trust you will find their comments
helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel
privileged to have helped you with your financial goals, and I wish you success
in all your endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM ASIAN GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND'S TECH HOLDINGS BOOST PERFORMANCE
DESPITE MARKET VOLATILITY
AS THE ASIAN RECOVERY CONTINUES, INVESTORS SEE THE UPSIDE OF TECHNOLOGY STOCKS
WITH THE DOWNSIDE OF MARKET VOLATILITY. HOW DID AIM ASIAN GROWTH FUND PERFORM
DURING THE REPORTING PERIOD?
The fund's technology exposure coupled with its nimble bottom-up selection
process produced impressive results for the six-month period ended April 30,
2000. Class A shares returned 31.94%, Class B shares 31.46% and Class C shares
31.61%. These returns are at net asset value or without a sales charge. By
comparison, the fund's benchmark--the MSCI AC Asia Pacific Free ex-Japan
Index--posted a meager 5.65% return for the same period. Total net assets grew
from $42.5 million on October 31, 1999, to $74.2 million on April 30, 2000.
WHAT WERE CONDITIONS LIKE IN ASIAN MARKETS?
Asian stock markets went into a free fall in late 1997 as economies wilted under
a pile of debt and currencies collapsed. Nearly a year later, Asia hit bottom,
but has since rebounded rather quickly. Investors steadily regained their
confidence in Asia during 1999. Asia's obvious recovery, along with an
unquenched thirst for high-tech stocks, sent its stock markets soaring in the
last few months of 1999. With few exceptions, Asian stock markets were strong
across the entire region. Hong Kong had a very strong final quarter, while
Korea, Singapore and Taiwan also ended the year much higher.
Following the lead of the technology-laden Nasdaq, Asian high-tech euphoria
continued through the first few months of 2000. As the Nasdaq sold off sharply
late in March, however, the ripple effect was felt worldwide. Market performance
in Asia varied from country to country for the first quarter. The largest market
in the region, Hong Kong, ended the first quarter mostly flat. Singapore, which
had produced dizzying returns in the final months of 1999, sold off on a
combination of profit-taking and interest-rate sensitivity. Taiwan, with its
tech-heavy index, performed well. And India, a country known for world-class
software, was also up thanks to its high-tech exposure. The weakest market
performance was in Southeast Asia. The Philippines, Indonesia and Thailand, with
their old economy stock structures, simply do not get the same attention from
investors as new economy stocks do.
The Nasdaq's increased volatility in April caused some of Asia's more
technology-driven markets such as Hong Kong to sell off. Singapore, on the other
hand, recovered a little ground at the end of April as investors returned to the
country because of its strong regulatory environment and relatively stable
currency.
WHAT COUNTRIES DID THE FUND FAVOR DURING THE REPORTING PERIOD?
We increased our exposure to Taiwan as we continue to favor companies that
benefit from an outsourcing trend; these are companies that produce hardware,
components or chips for their U.S. and European customers such as Apple, Dell
TOP 10 COUNTRIES
[MAP GRAPHIC]
As of 4/30/00, based on total net assets
================================================================================
INDONESIA 1.36%
SINGAPORE 19.96%
THAILAND 1.87%
PHILIPPINES 1.90%
TAIWAN 16.90%
HONG KONG 26.46%
SOUTH KOREA 8.31%
INDIA 4.62%
AUSTRALIA 8.92%
UNITED STATES 2.52%
================================================================================
FUND OUTPERFORMS INDEX
Six-month returns as of 4/30/00,
excluding sales charges
================================================================================
FUND CLASS A SHARES 31.94%
FUND CLASS B SHARES 31.46%
FUND CLASS C SHARES 31.61%
MSCI AC ASIA PACIFIC FREE EX-JAPAN INDEX 5.65%
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (11/03/97) 12.83%
1 year 39.59%*
*47.71%, excluding sales charges
CLASS B SHARES
Inception (11/03/97) 13.55%
1 year 41.29%*
*46.29%, excluding CDSC
CLASS C SHARES
Inception (11/03/97) 14.51%
1 year 45.65%*
*46.65%, excluding CDSC
================================================================================
In addition to the above returns, industry regulations require us to provide
average annual returns as of 3/31/00, the most recent calendar quarter-end,
which were: Class A shares, one year, 85.33%; inception (11/03/97), 18.77%.
Class B shares, one year, 89.42%; inception (11/03/97), 19.69%. Class C shares,
one year, 93.66%; inception (11/03/97), 20.59%. Past performance does not
guarantee comparable future results. MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT
SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER
SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
See important fund and index disclosures inside front cover.
AIM ASIAN GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
or Intel. Technology also played a part in our increased fund holdings in
India, our newest market.
Our most significant weighting reduction was in Australia. Although
Australia's economy is booming, the market is hitting a record high, and it is
the country's ninth year of economic growth. Interest rates have been rising
consistently for more than a year. Believing that Australia may have reached the
top of its economic cycle, we appropriately trimmed our allocation there.
Philippine holdings now represent less than 2% of fund assets. Markets
like the Philippines, Indonesia and Thailand demonstrate a lack of earnings
growth so they continue to be our smallest allocations in the region.
HOW DID COUNTRY ALLOCATION AFFECT FUND PERFORMANCE?
With mixed performance results across Asia, the fund's bottom-up
earnings-momentum stock-picking process provided the right allocations in the
best- and worst-performing countries. Taiwan, our third-highest allocation, was
the best-performing country; our largest, Hong Kong, stayed flat but still did
better than most; and our strict adherence to earnings momentum restricted our
investment in Southeast Asia, where improved economic statistics have not yet
translated into strong earnings at the company level.
WHAT INDUSTRIES DOMINATE FUND HOLDINGS?
As in the United States and Europe, the technology and telecommunication sectors
were favored for most of the reporting period. The fund's concentration in the
technology sector (electronic-component distributors, computer software and
services and hardware manufacturers comprised nearly 30% of the fund's portfolio
at the end of the reporting period) has increased due to market appreciation and
selective buying of new technology issues.
Rising interest rates in the United States, Hong Kong and Taiwan hurt Asian
financial sectors. As Asia's growth is often tied to strong growth in the United
States and Europe, any news of a possible slowdown in U.S. growth is generally
negative. For the first quarter, financial stocks lagged their market indexes as
interest rates ticked up, recovery of doubtful debts (primarily from the Asian
crisis) slowed and e-banking presented a competitive threat. The fund favors
banks which have been actively building their IT and Internet capabilities.
Also, we believe that banks need to diversify their earnings base to focus on
fee income and product cross-selling. We used the financial sector's weakness to
add to our holdings, though we divested a few stocks that had lost their
competitive edge.
WHAT IS YOUR OUTLOOK FOR THE REGION?
Asia's economic environment continues to improve. Interest rates are low
throughout much of the Pacific Rim, and export volume is increasing. North Asian
economies should maintain good growth rates. Also, the same sorts of software,
media and semiconductor companies that perform so well in the United States
exist in Asia. Although technology stocks have felt some collective market
shudders recently, we believe that selective exposure through our bottom-up
stock-picking process will continue to provide exciting opportunities.
PORTFOLIO COMPOSITION
As of 4/30/00, based on total net assets
<TABLE>
<CAPTION>
===================================================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. ASM Pacific Technology Ltd. (Hong Kong) 2.86% 1. Electronics (Component Distributors) 14.62%
2. UTStarcom, Inc. 2.52 2. Computers (Hardware) 8.40
3. Li & Fung Ltd. (Hong Kong) 2.51 3. Computers (Software & Services) 6.86
4. Giordano International Ltd. (Hong Kong) 2.48 4. Banks (Regional) 4.47
5. Samsung Electronics Co., Ltd. (South Korea) 2.44 5. Retail (Specialty--Apparel) 4.46
6. Macronix International Co., Ltd. (Taiwan) 2.42 6. Communications Equipment 4.39
7. Chartered Semiconductor Manufacturing Ltd. ADR (Singapore) 2.22 7. Electronics (Semiconductors) 3.89
8. Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) 2.20 8. Electrical Equipment 3.54
9. Dah Sing Financial Group (Hong Kong) 2.12 9. Telecommunications (Cellular/Wireless) 3.28
10. DBS Group Holdings Ltd. (Singapore) 2.08 10. Telephone 3.24
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
===================================================================================================================================
</TABLE>
[ARTWORK]
See important fund and index disclosures inside front cover.
AIM ASIAN GROWTH FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-95.04%
AUSTRALIA-8.92%
Austar United Communications Ltd.
(Broadcasting-Television, Radio &
Cable)(a) 51,700 $ 197,763
--------------------------------------------------------------
Brambles Industries Ltd. (Air
Freight) 40,500 1,140,026
--------------------------------------------------------------
BRL Hardy Ltd. (Beverages-Alcoholic) 167,000 698,300
--------------------------------------------------------------
Computershare Ltd.
(Computers-Software & Services) 334,800 1,366,121
--------------------------------------------------------------
ERG Ltd. (Electrical Equipment) 321,000 1,527,832
--------------------------------------------------------------
Foster's Brewing Group Ltd.
(Beverages-Alcoholic) 255,000 644,228
--------------------------------------------------------------
TABCORP Holdings Ltd. (Leisure Time
Products) 87,058 466,017
--------------------------------------------------------------
Telstra Corp. Ltd.-Installment
Receipts (Telephone) 226,700 579,880
--------------------------------------------------------------
6,620,167
--------------------------------------------------------------
CHINA-1.32%
AsiaInfo Holdings, Inc.
(Computers-Software & Services)(a) 22,500 978,750
--------------------------------------------------------------
HONG KONG-26.46%
ASM Pacific Technology Ltd.
(Machinery-Diversified) 600,000 2,126,020
--------------------------------------------------------------
China Telecom Ltd.
(Telecommunications-
Cellular/Wireless)(a) 204,000 1,460,099
--------------------------------------------------------------
Dah Sing Financial Group
(Banks-Regional) 401,600 1,572,536
--------------------------------------------------------------
Dao Heng Bank Group Ltd.
(Banks-Regional) 264,500 1,222,462
--------------------------------------------------------------
Esprit Holdings Ltd.
(Retail-Specialty Apparel) 1,380,000 1,470,498
--------------------------------------------------------------
Giordano International Ltd.
(Retail-Specialty- Apparel) 1,123,500 1,839,037
--------------------------------------------------------------
HKR International Ltd. (Land
Development) 1,372,600 537,466
--------------------------------------------------------------
Hutchison Whampoa Ltd. (Retail-Food
Chains) 96,000 1,392,698
--------------------------------------------------------------
Johnson Electric Holdings Ltd.
(Electrical Equipment) 137,000 1,099,278
--------------------------------------------------------------
Legend Holdings Ltd.
(Computers-Hardware) 1,238,000 1,430,442
--------------------------------------------------------------
Li & Fung Ltd. (Distributors-Food &
Health) 482,000 1,862,605
--------------------------------------------------------------
Shangri-La Asia Ltd.
(Lodging-Hotels) 1,266,000 1,414,035
--------------------------------------------------------------
SINA.com (Computers-Software &
Services)(a) 32,000 628,000
--------------------------------------------------------------
Sunevision Holdings Ltd.
(Computers-Software & Services)(a) 200,000 260,617
--------------------------------------------------------------
Television Broadcasts Ltd.
(Broadcasting-Television, Radio &
Cable) 84,000 574,257
--------------------------------------------------------------
Wing Hang Bank Ltd. (Banks-Major
Regional) 306,500 751,573
--------------------------------------------------------------
19,641,623
--------------------------------------------------------------
INDIA-4.62%
ITC Ltd. (Tobacco) 20,000 261,168
--------------------------------------------------------------
ITC Ltd.-GDR (Tobacco) 19,600 333,200
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
INDIA-(CONTINUED)
Satyam Computer Services Ltd.
(Computers-Software & Services) 14,000 $ 1,000,687
--------------------------------------------------------------
Satyam Infoway Ltd.-ADR
(Computers-Software & Services)(a) 22,200 860,250
--------------------------------------------------------------
Videsh Sanchar Nigam Ltd.-GDR
(Telecommunications-Cellular/Wireless) 51,600 975,240
--------------------------------------------------------------
3,430,545
--------------------------------------------------------------
INDONESIA-1.36%
Gulf Indonesia Resources Ltd.
(Oil-International Integrated)(a) 42,700 298,900
--------------------------------------------------------------
PT Indofood Sukses Makmur Tbk
(Foods)(a) 1,036,000 708,152
--------------------------------------------------------------
1,007,052
--------------------------------------------------------------
NEW ZEALAND-0.90%
Sky Network Television Ltd.
(Broadcasting-Television, Radio,
Cable)(a) 283,000 563,558
--------------------------------------------------------------
Sky Network Television Ltd.-ADR
(Broadcasting-Television, Radio &
Cable)(a) 5,400 104,625
--------------------------------------------------------------
668,183
--------------------------------------------------------------
PHILIPPINES-1.90%
Bank of the Philippine Islands
(Banks-Major Regional) 337,110 755,303
--------------------------------------------------------------
SM Prime Holdings, Inc. (Land
Development) 5,024,900 657,247
--------------------------------------------------------------
1,412,550
--------------------------------------------------------------
SINGAPORE-19.96%
Allgreen Properties Ltd.
(Homebuilding)(a) 690,000 468,975
--------------------------------------------------------------
Chartered Semiconductor
Manufacturing Ltd.-ADR
(Electronics-Semiconductors)(a) 18,900 1,651,387
--------------------------------------------------------------
Datacraft Asia Ltd. (Communications
Equipment) 184,600 1,384,500
--------------------------------------------------------------
DBS Group Holdings Ltd. (Banks-Money
Center) 112,127 1,543,906
--------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction) 351,000 814,414
--------------------------------------------------------------
Keppel Land Ltd. (Land Development) 945,000 1,129,548
--------------------------------------------------------------
NatSteel Broadway Ltd.
(Electronics-Component
Distributors) 486,000 820,109
--------------------------------------------------------------
NatSteel Electronics Ltd.
(Computers-Hardware) 147,500 846,956
--------------------------------------------------------------
NatSteel Ltd. (Iron & Steel) 561,000 1,373,985
--------------------------------------------------------------
OMNI Industries Ltd.
(Electronics-Component
Distributors) 697,000 1,364,024
--------------------------------------------------------------
Singapore Airlines Ltd. (Airlines) 80,000 829,671
--------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing-Newspapers) 69,000 1,350,325
--------------------------------------------------------------
St Assembly Test Services Ltd.-ADR
(Electronics-Semiconductors)(a) 29,700 1,238,119
--------------------------------------------------------------
14,815,919
--------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SOUTH KOREA-8.31%
Hyundai Motor Co. Ltd. (Automobiles) 47,000 $ 442,577
--------------------------------------------------------------
Korea Telecom Corp.-ADR (Telephone) 27,704 955,788
--------------------------------------------------------------
L.G. Chemical Ltd.
(Chemicals-Diversified) 48,800 1,121,334
--------------------------------------------------------------
LG Electronics, Inc.
(Computers-Peripherals) 31,000 826,853
--------------------------------------------------------------
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 48,100 1,010,100
--------------------------------------------------------------
Samsung Electronics N.V.
(Electronics-Component
Distributors) 6,700 1,811,219
--------------------------------------------------------------
6,167,871
--------------------------------------------------------------
TAIWAN-16.90%
Advantech Co., Ltd.
(Computers-Hardware)(a) 134,000 1,086,190
--------------------------------------------------------------
Ambit Microsystems Corp.
(Electronics-Component
Distributors) 130,000 1,202,484
--------------------------------------------------------------
Compal Electronics, Inc.
(Computers-Hardware) 483,015 1,239,310
--------------------------------------------------------------
Far Eastern Textile Ltd.
(Chemicals-Diversified) 581,010 892,547
--------------------------------------------------------------
Hon Hai Precision Industry Co., Ltd.
(Electronics-Component
Distributors)(a) 157,000 1,513,810
--------------------------------------------------------------
Macronix International Co., Ltd.
(Electronics-Component
Distributors)(a) 594,000 1,795,882
--------------------------------------------------------------
Ritek Inc. (Consumer-Jewelry,
Novelties & Gifts)(a) 87,000 830,332
--------------------------------------------------------------
Taiwan Semiconductor Manufacturing
Co. Ltd. (Computers-Hardware)(a) 254,000 1,635,496
--------------------------------------------------------------
United Microelectronics Corp. Ltd.
(Electronics-Component
Distributors) 387,000 1,309,184
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TAIWAN-(CONTINUED)
Via Technologies Inc.
(Electronics-Component
Distributors)(a) 62,000 $ 1,033,502
--------------------------------------------------------------
12,538,737
--------------------------------------------------------------
THAILAND-1.87%
Advanced Info Service Public Co.
Ltd. (Telephone)(a) 74,000 867,043
--------------------------------------------------------------
Siam Commercial Bank Public Co.
Ltd.-$1.365 Conv. Pfd.
(Banks-Regional)(a) 650,000 520,820
--------------------------------------------------------------
1,387,863
--------------------------------------------------------------
UNITED STATES-2.52%
UTStarcom, Inc. (Communications
Equipment)(a) 39,400 1,871,500
--------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$55,226,825) 70,540,760
--------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
MONEY MARKET FUNDS-5.71%
STIC Liquid Assets Portfolio(b) 2,119,611 2,119,611
--------------------------------------------------------------
STIC Prime Portfolio(b) 2,119,611 2,119,611
--------------------------------------------------------------
Total Money Market Funds (Cost
$4,239,222) 4,239,222
--------------------------------------------------------------
TOTAL INVESTMENTS-100.75% 74,779,982
(Cost $59,466,047)
--------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.75%) (557,411)
--------------------------------------------------------------
NET ASSETS-100.00% $74,222,571
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GDR - Global Depositary Receipt
Ltd. - Limited
Pfd. - Preferred
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $59,466,047) $74,779,982
------------------------------------------------------------
Foreign currencies, at market value (cost
$605,556) 602,211
------------------------------------------------------------
Receivables for:
Amount due from advisor 25,000
------------------------------------------------------------
Capital stock sold 605,987
------------------------------------------------------------
Dividends 179,801
------------------------------------------------------------
Investment for deferred compensation plan 10,821
------------------------------------------------------------
Other assets 34,613
------------------------------------------------------------
Total assets 76,238,415
------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 1,107,520
------------------------------------------------------------
Capital stock reacquired 730,464
------------------------------------------------------------
Deferred compensation plan 10,821
------------------------------------------------------------
Accrued advisory fees 59,539
------------------------------------------------------------
Accrued administrative services fees 4,099
------------------------------------------------------------
Accrued distribution fees 41,998
------------------------------------------------------------
Accrued transfer agent fees 22,547
------------------------------------------------------------
Accrued directors' fees 758
------------------------------------------------------------
Accrued operating expenses 38,098
------------------------------------------------------------
Total liabilities 2,015,844
------------------------------------------------------------
Net assets applicable to shares outstanding $74,222,571
============================================================
NET ASSETS:
Class A $43,183,039
============================================================
Class B $23,241,899
============================================================
Class C $ 7,797,633
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
------------------------------------------------------------
Outstanding 3,038,956
============================================================
Class B:
Authorized 200,000,000
------------------------------------------------------------
Outstanding 1,659,972
============================================================
Class C:
Authorized 200,000,000
------------------------------------------------------------
Outstanding 557,518
============================================================
Class A:
Net asset value and redemption price per
share $ 14.21
------------------------------------------------------------
Offering price per share:
(Net asset value of $14.21 divided by
94.50%) $ 15.04
============================================================
Class B:
Net asset value and offering price per share $ 14.00
============================================================
Class C:
Net asset value and offering price per share $ 13.99
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$53,912) $ 486,988
------------------------------------------------------------
Interest 2,596
------------------------------------------------------------
Total investment income 489,584
------------------------------------------------------------
EXPENSES:
Advisory fees 298,856
------------------------------------------------------------
Administrative services fees 24,863
------------------------------------------------------------
Custodian fees 62,841
------------------------------------------------------------
Distribution fees -- Class A 66,058
------------------------------------------------------------
Distribution fees -- Class B 93,911
------------------------------------------------------------
Distribution fees -- Class C 32,382
------------------------------------------------------------
Transfer agent fees -- Class A 55,411
------------------------------------------------------------
Transfer agent fees -- Class B 34,127
------------------------------------------------------------
Transfer agent fees -- Class C 11,768
------------------------------------------------------------
Directors' fees 3,463
------------------------------------------------------------
Other 52,962
------------------------------------------------------------
Total expenses 736,642
------------------------------------------------------------
Less: Expenses paid indirectly (411)
------------------------------------------------------------
Expenses reimbursed by advisor (25,000)
------------------------------------------------------------
Net expenses 711,231
------------------------------------------------------------
Net investment income (loss) (221,647)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN CURRENCIES
Net realized gain (loss) from:
Investment securities 6,909,183
------------------------------------------------------------
Foreign currencies (33,840)
------------------------------------------------------------
6,875,343
------------------------------------------------------------
Change in net unrealized appreciation of:
Investment securities 8,130,038
------------------------------------------------------------
Foreign currencies 857
------------------------------------------------------------
8,130,895
------------------------------------------------------------
Net gain on investment securities and foreign
currencies 15,006,238
------------------------------------------------------------
Net increase in net assets resulting from
operations $14,784,591
============================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the year ended October 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 2000
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (221,647) $ (202,477)
----------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 6,875,343 926,182
----------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 8,130,895 6,896,839
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 14,784,591 7,620,544
----------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (43,024)
----------------------------------------------------------------------------------------
Class B -- (3,910)
----------------------------------------------------------------------------------------
Class C -- (898)
----------------------------------------------------------------------------------------
Share transactions-net:
Class A 8,585,093 12,107,278
----------------------------------------------------------------------------------------
Class B 7,070,446 7,604,535
----------------------------------------------------------------------------------------
Class C 1,285,342 3,780,454
----------------------------------------------------------------------------------------
Net increase in net assets 31,725,472 31,064,979
----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 42,497,099 11,432,120
----------------------------------------------------------------------------------------
End of period $74,222,571 $42,497,099
========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $53,007,795 $36,066,914
----------------------------------------------------------------------------------------
Undistributed net investment income (loss) (229,536) (7,889)
----------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies 6,127,905 (747,438)
----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 15,316,407 7,185,512
----------------------------------------------------------------------------------------
$74,222,571 $42,497,099
========================================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Asian Growth Fund (the "Fund") is a series portfolio of AIM International
Funds, Inc. (the "Company"). The Company is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of six separate
portfolios. The Fund 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 will
be 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 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 the 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 its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price on the valuation
date or absent a last sales price, at the closing bid price. Debt
obligations (including convertible bonds) are valued on the basis of prices
provided by an independent pricing service. Prices provided by the pricing
service may be determined without exclusive reliance on quoted prices, and
may reflect appropriate factors such as yield, type of issue, coupon rate
and maturity date. Securities for which market prices are not provided by
any of the above methods are valued based upon quotes furnished by
independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are 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 of the Company.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and option contracts generally will be
valued 15 minutes after the close of the customary trading session of the
New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed
each day at various times prior to the close of the NYSE. 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 NYSE. 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
customary trading session of the NYSE 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. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales 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 the accrual basis. Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains,
if any, are generally paid annually and recorded on ex-dividend date. The
Fund may elect to use a portion of the proceeds from redemptions as
distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
The Fund has a capital loss carryforward of $350,698 which may be
carried forward to offset future taxable gains, if any, which expires, if
not previously utilized, in the year 2006.
E. 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.
8
<PAGE> 11
F. 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.
G. Expenses -- Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
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 investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.95% of the first
$500 million of the Fund's average daily net assets, plus 0.90% of the Fund's
average daily net assets in excess of $500 million. Under the terms of a
sub-advisory agreement between AIM and INVESCO Global Asset Management Limited
("IGAM"), AIM pays IGAM a fee at an annual rate of 0.20% of the first $500
million of the Fund's average daily net assets, plus 0.175% of the Fund's
average daily net assets in excess of $500 million. AIM has contractually agreed
to waive fees and reimburse expenses (excluding interest, taxes, dividends on
short sales, extraordinary items and increases in expenses due to offset
arrangements, if any) for Class A, Class B and Class C shares to the extent
necessary to limit the total operating expenses of Class A Shares to 1.92% (e.g.
if AIM waives 0.80% of Class A expenses, AIM will also waive 0.80% of Class B
and Class C expenses). During the six months ended April 30, 2000, AIM
reimbursed expenses of $25,000.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended April 30, 2000, AIM
was paid $24,863 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 and
shareholder services to the Fund. For the six months ended April 30, 2000, AFS
was paid $60,691 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 plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C 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 Class 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, 2000, the Class A, Class B and Class C shares paid AIM Distributors $66,058,
$93,911 and $32,382, respectively, as compensation under the Plans.
AIM Distributors received commissions of $41,595 from sales of the Class A
shares of the Fund during the six months ended April 30, 2000. 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,
2000, AIM Distributors received $7,242 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, 2000, the Fund paid legal fees of
$1,346 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel
to the Company's directors. A member of that firm is a director of the Company.
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 2000, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) and reductions in custodian
fees of $377 and $34, respectively, under expense offset arrangements. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $411 during the six months ended April 30, 2000.
NOTE 4-DIRECTORS' FEES
Directors' fees represent remuneration paid to directors who are not an
"interested person" of AIM. The Company invests directors' fees, if so elected
by a director, in mutual fund shares in accordance with a deferred compensation
plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. During the six
months ended April 30, 2000, 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 0.09% 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.
9
<PAGE> 12
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,
2000 was $39,304,700 and $22,180,685, respectively.
The amount of unrealized appreciation (depreciation) of investment
securities as of April 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $19,316,755
-------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (4,194,102)
-------------------------------------------------------------------------
Net unrealized appreciation of investment securities $15,122,653
=========================================================================
Cost of investments for tax purposes is $59,657,329.
</TABLE>
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended April 30, 2000
and the year ended October 31, 1999 were as follows:
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sold:
Class A 3,920,423 $52,217,495 7,418,728 $73,010,343
--------------------------------------------------------------------------------------------------------------------
Class B 835,175 11,188,863 1,590,485 15,858,499
--------------------------------------------------------------------------------------------------------------------
Class C 526,552 7,011,438 1,155,486 11,034,900
--------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 5,228 39,837
--------------------------------------------------------------------------------------------------------------------
Class B -- -- 494 3,756
--------------------------------------------------------------------------------------------------------------------
Class C -- -- 118 897
--------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (3,242,807) (43,632,402) (6,066,544) (60,942,902)
--------------------------------------------------------------------------------------------------------------------
Class B (308,456) (4,118,417) (854,740) (8,257,720)
--------------------------------------------------------------------------------------------------------------------
Class C (440,138) (5,726,096) (774,549) (7,255,343)
--------------------------------------------------------------------------------------------------------------------
1,290,749 $16,940,881 2,474,706 $23,492,267
====================================================================================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------
NOVEMBER 3, 1997
(DATE OPERATIONS
SIX MONTHS ENDED YEAR ENDED COMMENCED)
APRIL 30, OCTOBER 31, TO
2000(a) 1999(a) OCTOBER 31, 1998
---------------- ----------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.76 $ 7.69 $10.00
----------------------------------------------------------- ----------------- ------------ ----------------
Income from investment operations:
Net investment income (loss) (0.02) (0.03) 0.05
----------------------------------------------------------- ----------------- ------------ ----------------
Net gains (losses) on securities (both realized and
unrealized) 3.47 3.14 (2.36)
----------------------------------------------------------- ----------------- ------------ ----------------
Total from investment operations 3.45 3.11 (2.31)
----------------------------------------------------------- ----------------- ------------ ----------------
Less distributions of dividends from net investment income -- (0.04) --
----------------------------------------------------------- ----------------- ------------ ----------------
Net asset value, end of period $ 14.21 $ 10.76 $ 7.69
=========================================================== ================= ============ ================
Total return(b) 32.06% 40.66% (23.10)%
=========================================================== ================= ============ ================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $43,183 $25,420 $7,716
=========================================================== ================= ============ ================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 1.92%(c) 1.92% 1.92%(d)
=========================================================== ================= ============ ================
Without fee waivers and/or expense reimbursements 2.05%(c) 2.72% 4.88%(d)
=========================================================== ================= ============ ================
Ratio of net investment income (loss) to average net assets (0.37)%(c) (0.50)% 0.70%(d)
=========================================================== ================= ============ ================
Portfolio turnover rate 38% 142% 79%
=========================================================== ================= ============ ================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $37,954,713.
(d) Annualized.
10
<PAGE> 13
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------
NOVEMBER 3, 1997
(DATE OPERATIONS
SIX MONTHS ENDED YEAR ENDED COMMENCED)
APRIL 30, OCTOBER 31, TO
2000(a) 1999(a) OCTOBER 31, 1998
---------------- ----------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.65 $ 7.63 $ 10.00
----------------------------------------------------------- ----------------- ----------- ----------------
Income from investment operations:
Net investment income (loss) (0.08) (0.13) (0.01)
----------------------------------------------------------- ----------------- ----------- ----------------
Net gains (losses) on securities (both realized and
unrealized) 3.43 3.16 (2.36)
----------------------------------------------------------- ----------------- ----------- ----------------
Total from investment operations 3.35 3.03 (2.37)
----------------------------------------------------------- ----------------- ----------- ----------------
Less distributions of dividends from net investment income -- (0.01) --
----------------------------------------------------------- ----------------- ----------- ----------------
Net asset value, end of period $ 14.00 $ 10.65 $ 7.63
=========================================================== ================= =========== ================
Total return(b) 31.46% 39.76% (23.70)%
=========================================================== ================= =========== ================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $23,242 $12,070 $ 3,030(d)
=========================================================== ================= =========== ================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 2.77%(c) 2.79% 2.80%(d)
----------------------------------------------------------- ----------------- ----------- ----------------
Without fee waivers and/or expense reimbursements 2.77%(c) 3.59% 5.75%(d)
=========================================================== ================= =========== ================
Ratio of net investment income (loss) to average net assets (1.22)%(c) (1.37)% (0.18)%(d)
=========================================================== ================= =========== ================
Portfolio turnover rate 38% 142% 79%
=========================================================== ================= =========== ================
</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 $18,885,431.
(d) Annualized.
<TABLE>
<CAPTION>
CLASS C
---------------------------------------------------
NOVEMBER 3, 1997
(DATE OPERATIONS
SIX MONTHS ENDED YEAR ENDED COMMENCED)
APRIL 30, OCTOBER 31, TO
2000(a) 1999(a) OCTOBER 31, 1998
---------------- ----------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $10.63 $ 7.61 $10.00
----------------------------------------------------------- ---------------- ----------- ----------------
Income from investment operations:
Net investment income (loss) (0.08) (0.13) (0.01)
----------------------------------------------------------- ---------------- ----------- ----------------
Net gains (losses) on securities (both realized and
unrealized) 3.44 3.16 (2.38)
----------------------------------------------------------- ---------------- ----------- ----------------
Total from investment operations 3.36 3.03 (2.39)
----------------------------------------------------------- ---------------- ----------- ----------------
Less distributions of dividends from net investment income -- (0.01) --
----------------------------------------------------------- ---------------- ----------- ----------------
Net asset value, end of period $13.99 $10.63 $ 7.61
=========================================================== ================ =========== ===============
Total return(b) 31.61% 39.86% (23.90)%
=========================================================== ================ =========== ================
Ratios/supplemental data:
Net assets, end of period, (000s omitted) $7,798 $5,008 $ 686
=========================================================== ================ =========== ===============
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 2.77%(c) 2.79% 2.80%(d)
----------------------------------------------------------- ---------------- ----------- ---------------
Without fee waivers and/or expense reimbursements 2.77%(c) 3.59% 5.75%(d)
=========================================================== ================ =========== ===============
Ratio of net investment income (loss) to average net assets (1.22)%(c) (1.37)% (0.18)%(d)
=========================================================== ================ =========== ===============
Portfolio turnover rate 38% 142% 79%
=========================================================== ================ =========== ===============
</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 $6,512,027.
(d) Annualized.
11
<PAGE> 14
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II SUB-ADVISOR
Director Edgar M. Larsen
Cortland Trust Inc. Senior Vice President INVESCO Global Asset Management Limited
Cedar House
Edward K. Dunn Jr. Dana R. Sutton 41 Cedar Avenue
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer Hamilton, HM12 Bermuda
Formerly Vice Chairman and President,
Mercantile-Safe Deposit & Trust Co.; and Robert G. Alley TRANSFER AGENT
President, Mercantile Bankshares Vice President
A I M Fund Services, Inc.
Jack Fields Melville B. Cox P.O. Box 4739
Chief Executive Officer Vice President Houston, TX 77210-4739
Texana Global, Inc.;
Formerly Member Mary J. Benson CUSTODIAN
of the U.S. House of Representatives Assistant Vice President and
Assistant Treasurer State Street Bank and Trust Company
Carl Frischling 225 Franklin Street
Partner Sheri Morris Boston, MA 02110
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and
Assistant Treasurer COUNSEL TO THE FUND
Robert H. Graham
President and Chief Executive Officer Renee A. Friedli Ballard Spahr
A I M Management Group Inc. Assistant Secretary Andrews & Ingersoll, LLP
1735 Market Street
Prema Mathai-Davis P. Michelle Grace Philadelphia, PA 19103
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary
COUNSEL TO THE DIRECTORS
Lewis F. Pennock Nancy L. Martin
Attorney Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
Louis S. Sklar Ofelia M. Mayo New York, NY 10022
Executive Vice President Assistant Secretary
Hines Interests DISTRIBUTOR
Limited Partnership Lisa A. Moss
Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Kathleen J. Pflueger Suite 100
Assistant Secretary Houston, TX 77046
Samuel D. Sirko
Assistant Secretary
</TABLE>
12
<PAGE> 15
AIM FUNDS--Registered Trademark--MAKES
INVESTING EASY
o AIM BANK CONNECTION(SM). You can make investments in your AIM account in
amounts from $50 to $100,000 without writing a check. Once you set up this
convenient feature, AIM will draw the funds from your pre-authorized
checking account at your request.
o AIM INTERNET CONNECT(SM). Sign up for this service and you can purchase,
redeem or exchange shares of AIM funds in your current AIM account simply by
accessing our Web site at www.aimfunds.com. For a retirement account, such
as an IRA or 403(b), only exchanges are allowed over the Internet because of
the tax-reporting and record-keeping requirements these accounts involve.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. You can receive
distributions in cash, or you can reinvest them in your account without
paying a sales charge. Over time, the power of compounding can significantly
increase the value of your account.
o AUTOMATIC INVESTMENT PLAN. You can add to your account by authorizing your
AIM fund to withdraw a specified amount, minimum $50, from your bank account
on a regular schedule.
o EASY ACCESS TO YOUR MONEY. You can redeem shares of your AIM fund any day
the New York Stock Exchange is open. The value of the shares may be more or
less than their original cost depending on market conditions.
o EXCHANGE PRIVILEGE. As your investment goals change, you may exchange part
or all of your shares of one fund for shares of a different AIM fund within
the same share class. You may make up to 10 such exchanges per calendar
year.
o TAX-ADVANTAGED RETIREMENT PLANS. You can enjoy the tax advantages offered by
a variety of investment plans, including Traditional IRAs, Roth IRAs and
education IRAs, among others.
o E-MAIL ACCESS. You can contact us at [email protected] for general
information. For account information, contact us at
[email protected].
o www.aimfunds.com. Our award-winning Web site provides account information,
shareholder education and fund performance information.
------------------------------------
OUR AUTOMATED
AIM INVESTOR LINE,
800-246-5463,
PROVIDES CURRENT ACCOUNT
INFORMATION AND THE PRICE,
YIELD AND TOTAL RETURN ON
ALL AIM FUNDS 24 HOURS A
DAY. YOU CAN ALSO ORDER A
YEAR-TO-DATE STATEMENT OF
YOUR ACCOUNT.
------------------------------------
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Money Market Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately
AIM Capital Development Fund $176 billion in assets for more than 7.4
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS million shareholders, including
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund individual investors, corporate clients
AIM Emerging Growth Fund AIM Asian Growth Fund and financial institutions, as of March
AIM Large Cap Growth Fund AIM Developing Markets Fund 31, 2000.
AIM Large Cap Opportunities Fund AIM Euroland Growth Fund(5) The AIM Family of Funds--Registered Trademark--
AIM Mid Cap Equity Fund AIM European Development Fund is distributed nationwide, and AIM today
AIM Mid Cap Growth Fund AIM International Equity Fund is the eighth-largest mutual fund
AIM Mid Cap Opportunities Fund(2) AIM Japan Growth Fund complex in the United States in assets
AIM Select Growth Fund AIM Latin American Growth Fund under management, according to Strategic
AIM Small Cap Growth Fund(3) Insight, an independent mutual fund
AIM Small Cap Opportunities Fund(4) GLOBAL GROWTH FUNDS monitor.
AIM Value Fund AIM Global Aggressive Growth Fund
AIM Weingarten Fund AIM Global Growth Fund
AIM Global Trends Fund(6)
GROWTH & INCOME FUNDS
AIM Advisor Flex Fund GLOBAL GROWTH & INCOME FUNDS
AIM Advisor Real Estate Fund AIM Global Utilities Fund
AIM Balanced Fund
AIM Basic Value Fund GLOBAL INCOME FUNDS
AIM Charter Fund AIM Global Income Fund
AIM Strategic Income Fund
INCOME FUNDS
AIM Floating Rate Fund THEME FUNDS
AIM High Yield Fund AIM Global Consumer Products and Services Fund
AIM High Yield Fund II AIM Global Financial Services Fund
AIM Income Fund AIM Global Health Care Fund
AIM Intermediate Government Fund AIM Global Infrastructure Fund
AIM Limited Maturity Treasury Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
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(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (6) Effective
August 27, 1999, AIM Global Trends Fund was restructured to operate as a
traditional mutual fund. Before that date, the fund operated as a fund of funds.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after July 20, 2000, this report must be
accompanied by a current Quarterly Review of Performance for AIM Funds.
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