<PAGE> 1
ANNUAL REPORT / OCTOBER 31 1999
AIM GLOBAL AGGRESSIVE GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
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LAND BY JENNIFER WATES
IN THIS AGE OF WORLDWIDE EXCHANGE, AN OCEAN'S DISTANCE
BETWEEN CONTINENTS IS NO LONGER THE BARRIER TO TRADE THAT IT
ONCE WAS. TODAY, THE EARTH'S MANY LANDS ARE LINKED THROUGH A
GLOBAL ECONOMY THAT IS SHAPING THE FUTURE OF THE WORLD'S
PEOPLE. THE PAINTING ON THE COVER OF THIS REPORT, RENDERED IN
VIBRANT COLORS AND BOLD BRUSH STROKES, PAYS TRIBUTE TO OUR
WORLD AND ITS RICHES.
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AIM Global Aggressive Growth Fund is for shareholders who seek long-term growth
of capital. The fund invests in a portfolio of global equity securities of
small-capitalization companies with above-average earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Aggressive Growth Fund's performance figures are historical and
reflect reinvestment of all distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B shares will differ from that of Class
A shares due to differences in sales charge structure and expenses.
o The fund's average annual total returns, including sales charges, for the
periods ended 9/30/99 (the most recent calendar quarter end), were as
follows: For Class A shares, one year, 28.44%; five years, 14.07%; inception
(9/15/94), 13.97%. For Class B shares, one year, 29.06%; five years, 14.33%;
inception (9/15/94), 14.34%. For Class C shares, one year, 33.06%; inception
(8/4/97), 3.19%.
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 unmanaged MSCI World Index is a group of global securities tracked by
Morgan Stanley Capital International.
o The Dow Jones Industrial Average (the Dow) is a price-weighted average of 30
actively traded primarily industrial stocks.
o The unmanaged Russell 2000 Stock Index is generally considered
representative of the stocks of small-capitalization companies.
o The unmanaged Standard & Poor's 400 Midcap Index (S&P 400) comprises common
stocks of approximately 400 mid-capitalization companies.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM GLOBAL AGGRESSIVE GROWTH FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The fiscal year discussed in this report reconfirmed our
[PHOTO OF faith in two long-established principles of investing:
Charles T. portfolio diversification and long-term thinking. We could
Bauer, title this report "What a Difference a Year Makes."
Chairman of An investor surveying conditions when the fiscal year
the Board of opened on October 31, 1998, saw a market dominated by
THE FUND large-capitalization stocks and high-quality bonds,
APPEARS HERE] especially U.S. Treasuries. Ten months into 1998, two well-
known indexes of large-capitalization U.S. company stocks,
the S&P 500 and the Dow Jones Industrial Average, were up by
double digits, but the smaller-company stocks in the Russell
2000 had lost 12.80%. Overseas, many markets were
languishing, especially in Asia, where many financial
difficulties originated in 1997.
In bond markets also, name-brand quality was the place
to be. The Lehman Corporate/Government Bond Index, which
follows intermediate and long-term government and investment-grade debt, was up
8.56%, while the Lehman High Yield Index, which tracks riskier "junk bonds," had
dropped 2.30%.
It would be easy for an investor to conclude that blue chips, whether equity or
fixed-income, were the only place to be. That investor, of course, would be
wrong.
MARKETS TURN
While large-capitalization stocks continue to do very well, during 1999 markets
broadened considerably, with many investment sectors performing a complete
turnaround. Year to date by October 31, 1999, the small-cap stocks in the
Russell 2000 were back in positive territory, and the many Asian markets had
staged a comeback. The same holds true for bonds. The higher-quality Lehman
index is down 1.49% year to date through October 31, 1999, while high-yield
bonds have moved into positive returns.
The point, at the risk of sounding repetitive to those of you who have
invested with us for a long time, is that this is why diversification is a
fundamental investing principle. Market sectors and asset classes go in and out
of favor, but over the long run--and the long run is several years--the markets'
overall trend has been upward. Selecting an asset class or a market sector on
the basis of a short-term snapshot of conditions is usually unwise, as is
concentrating your portfolio in one asset class. Staying fully invested in a
diversified portfolio remains a compelling strategy and one of your best
prospects for long-term gain.
LOOKING AHEAD
As we look about at the close of this fiscal year, we are encouraged by signs of
economic health in Europe and Asia, not to mention the prolonged U.S. economic
expansion. However, we are aware of how easily an investor could have been
misled by conditions just 12 months ago. For our shareholders, we therefore
reiterate our commitment to investing through a financial advisor. In addition
to helping you select investments appropriate to your time horizon and risk
tolerance, a financial advisor can keep you informed about how changing market
conditions affect you and your portfolio and can help assure that when you do
alter your investments, there's a logical reason for doing so. AIM believes
every investor should be guided by a financial professional.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund during the year ended October 31, 1999, how the markets
behaved and what they foresee for the near future. We trust you will find their
discussion informative. If you have any questions or comments, we invite you to
contact us, either at our Web site, aimfunds.com, or through our Client Services
department at 800-959-4246. Information about your account is also available
through our automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of Funds
- --Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
-------------------------
STAYING FULLY
INVESTED IN A DIVERSIFIED
PORTFOLIO REMAINS
A COMPELLING STRATEGY
AND ONE OF YOUR
BEST PROSPECTS FOR
LONG-TERM GAIN.
-------------------------
AIM GLOBAL AGGRESSIVE GROWTH FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
FUND POSTS EXCELLENT GAINS AS GLOBAL MARKETS BROADEN
WORLDWIDE, SMALL- AND MID-CAP STOCKS GENERALLY BENEFITED FROM THE IMPROVING
GLOBAL ECONOMY AND BROADENING MARKETS. HOW DID AIM GLOBAL AGGRESSIVE GROWTH FUND
PERFORM?
The fund's performance was outstanding for the fiscal year ended October 31,
1999. Excluding sales charges, total returns were 38.31% for Class A shares and
37.56% for Class B and C shares. These returns were significantly higher than
the 24.91% gain of the Morgan Stanley Capital International World Index for the
same period.
WHAT WERE THE MAJOR DEVELOPMENTS IN THE U.S STOCK MARKET?
When the fiscal year began, the stock market was rebounding from a steep decline
stemming from severe economic problems in Asia, Russia and Latin America. The
rally continued into 1999, and the Dow Jones Industrial Average (the Dow) set a
record in August. However, markets were volatile, as investors were concerned
that torrid economic growth would prompt the Federal Reserve Board (the Fed) to
tighten monetary policy to head off inflation. In separate moves in June and
August, the central bank raised the key federal funds rate from 4.75% to 5.25%.
Between June and October, stock markets were volatile. Markets rallied in
October after data showed that inflation remained relatively subdued.
For the fiscal year, large-cap stocks outperformed mid- and small-cap
stocks, although all three classes posted impressive gains. The Dow, which
measures the performance of the stocks of 30 of the largest U.S. companies, was
up 26.98% while the S&P Midcap 400 Index was up 21.07% and the Russell 2000
Index, a barometer of the performance of U.S. small-cap stocks, posted gains of
14.87%. Growth stocks outperformed value stocks. Technology was by far the
top-performing sector.
HOW DID EUROPEAN STOCKS FARE?
At the outset of the fiscal year, European stocks were surging, led by cyclical
stocks, which moved in anticipation of an economic recovery on the Continent.
However, European-stock performance leveled off as investors shifted their focus
to other markets, particularly Asia. Still, European stocks posted respectable
gains for the reporting period, and growth stocks regained prominence over value
stocks. The key development in Europe was the feverish pace of merger activity.
In fact, toward the end of the reporting period, European merger activity topped
that of the United States for the first time. Ten European deals were announced
in the third quarter of 1999 with values of more than $10 billion each.
HOW DID MARKETS PERFORM IN ASIA AND LATIN AMERICA?
In Asia, stock markets roared back from the economic crisis that rocked the
region in 1997-1998. Improving economic conditions in several Asian nations,
strong corporate earnings and growing consumer demand boosted stocks. Singapore,
South Korea and Taiwan all posted impressive gains.
Undoubtedly the most significant development in Asia, however, was the
stunning turnaround of the Japanese stock market. After years in the doldrums,
Japanese stocks soared. Improving economic conditions in Japan helped to spark
the rally. Japan posted two consecutive quarters of economic growth, signaling
an end to its extended recession. Market activity drove up the value of the yen
against most major currencies, including the U.S. dollar.
In Latin America, the Mexican market dominated the region. Declining
interest rates and a stronger peso bolstered Mexico's economy, along with the
continued strength of its largest trading partner, the United States.
ON A GLOBAL BASIS, WHAT WERE SOME OF THE MAJOR TRENDS IN SMALL- AND MID-CAP
STOCKS?
Worldwide, a broadening of market rallies to include asset classes other than
large-cap stocks boosted small- and mid-cap stocks. Investors found small- and
mid-cap stocks attractive because of favorable valuations and the often superior
earnings prospects of small- and mid-cap firms to large-cap companies.
While the market for small- and mid-cap stocks is well established in the
United States, it is just developing in other parts of the world. More and more
small- and mid-cap companies are coming into existence. In Japan, for example, a
new generation of entrepreneurs is creating exciting new companies in such
sectors as technology and telecommunications. New indexes, such
TOTAL RETURN
10/31/98--10/31/99,
excluding sales charges
Bar Chart
================================================================================
CLASS A SHARES 38.31%
CLASS B AND CLASS C SHARES 37.56%
MSCI WORLD INDEX 24.91%
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL AGGRESSIVE GROWTH FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 10/31/99, based on total net assets
<TABLE>
<CAPTION>
===================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. JDS Uniphase Corp. (United States) 6.83% 1. Computers (Software & Services) 11.86 1. United States 33.56%
2. Bellsystems 24, Inc. (Japan) 2.24 2. Communications Equipment ) 11.57% 2. Japan 9.55
3. Harmonic Inc. (United States) 1.65 3. Services (Commercial & Consumer) 5.53 3. United Kingdom 7.03
4. Yahoo Japan Corp. (Japan) 1.65 4. Electronics (Semiconductors) 5.27 4. Mexico 6.02
5. Softbank Corp. (Japan) 1.57 5. Broadcasting (Television, Radio & Cable) 4.80 5. France 4.89
6. Emulex Corp. (United States) 1.49 6. Retail (Specialty-Apparel) 2.26 6. Canada 4.10
7. Trend Micro, Inc. (Japan) 1.28 7. Retail (Food Chains) 2.23 7. Hong Kong 2.99
8. CDW Computer Centers, Inc. (United States) 1.18 8. Manufacturing (Specialty) 2.15 8. South Korea 2.80
9. Sage Group PLC, The (United Kingdom) 1.05 9. Banks (Regional) 1.84 9. Netherlands 2.43
10. Altran Technologies, S.A. (France) 1.05 10. Financial (Diversified) 1.72 10. Germany 2.18
The fund's portfolio is subject to change, and there is no assurance that the fund will continue to hold any particular security.
===================================================================================================================================
</TABLE>
as the Neuer Markt in Germany and the Nouveau Marche in France, are being
created to track the performance of small- and mid-cap stocks. This global
proliferation of mid- and small-cap stock offerings is increasing the fund's
investment options.
FROM A GLOBAL PERSPECTIVE, HOW WAS THE FUND INVESTED?
At the end of the fiscal year, the fund held 38% of its total net assets in U.S.
and Canadian stocks and 28% in European equities. The fund had roughly 20% of
the portfolio in Asian markets while Japanese securities composed more than 9%
of the fund's holdings. Mexican stocks constituted about 6% of the fund's
holdings.
Over the fiscal year, we have pared the number of stocks in the portfolio
from 285 to 187. We believe these stocks represent the companies with the best
earnings-growth potential.
WHICH SECTORS WERE EMPHASIZED IN THE PORTFOLIO?
Over the six months since our last report, we have increased the fund's
technology holdings while slightly reducing its exposure to the
consumer-cyclical sector. Technology stocks increased from 25% to 35%, while
consumer-cyclical stocks decreased from 23% to 20% of the portfolio. The rapid
expansion of the Internet and increased demand for microchips helped to boost
technology stocks. A high level of consumer spending, particularly in the United
States, helped the stocks of consumer cyclicals, particularly advertisers,
discounters and specialty retailers.
WHAT WERE SOME OF THE FUND'S KEY HOLDINGS?
The fund's top three holdings as of October 31, 1999, were JDS Uniphase,
Bellsystems 24 and Harmonic.
Created from the recent merger of JDS Fitel of Canada and U.S.-based
Uniphase, JDS Uniphase is the leader in developing optical components for
communication networks. Bellsystems 24 is one of Japan's top telemarketing
companies, while Harmonic develops products for major communications providers,
such as cable-television operators.
Other key stocks in the portfolio included Altran Technologies, a French
engineering and technology consulting firm; The Sage Group, a British provider
of personal computer software; and Trend Micro, a Japanese firm that provides
antivirus software and Internet-based security services.
WHAT IS YOUR OUTLOOK FOR THE NEAR TERM?
We believe we have reached a period of synchronized global expansion. The United
States drove the markets for the past two years. Europe and Asia are gaining
strength, and we believe that growth in the future will be more balanced.
In Europe, we expect positive economic growth, stronger corporate earnings
and higher consumer demand. In fact, if European growth continues on its current
path, Europe stands poised to surpass the United States in economic growth next
year. For the first time in decades, the United States may relinquish its
longstanding role as leader of the global economy.
The worst of the crisis in Asia appears to be past, although the recovery in
that region is uneven and still relatively fragile. In Japan, we're encouraged
by signs of economic growth. Moreover, smaller companies are leading the way in
much-needed corporate restructuring.
Overall, we remain very optimistic about small- and mid-cap stocks because
of their attractive valuations, the strong earnings-growth prospects for smaller
companies and the increasing number of small- and mid-cap stock choices
available to investors.
See important fund and index disclosures inside front cover.
AIM GLOBAL AGGRESSIVE GROWTH FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL AGGRESSIVE GROWTH FUND VS. BENCHMARK INDEX
9/15/94-10/31/99
in thousands
================================================================================
Global Global
Aggressive Aggressive
Growth Fund, Growth Fund, MSCI World
Class A Class B Index
- --------------------------------------------------------------------------------
9/15/94 9,524 10,000 10,000
10/31/94 9,733 10,210 10,282
10/31/95 12,467 13,020 11,257
10/31/96 15,063 15,636 13,091
10/31/97 16,057 17,061 15,287
10/31/98 15,168 14,733 17,619
10/31/99 20,980 21,327 22,010
Past performance cannot guarantee comparable future results.
Source: Lipper, Inc.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/99, including sales charges
================================================================================
CLASS A SHARES
Inception (9/15/94) 15.55%
5 years 15.47
1 year 31.75*
*38.31% excluding sales charges
CLASS B SHARES
Inception (9/15/94) 15.92%
5 years 15.76
1 year 32.56*
*37.56% excluding sales charges
CLASS C SHARES
Inception (8/4/97) 6.89%
1 year 36.56*
*37.56% excluding sales charges
================================================================================
Your fund's total return includes sales charges, expenses and management fees.
For fund performance calculations and descriptions of indexes cited on this
page, please refer to the inside front cover. The performance of Class C shares
will differ from that of Class A and Class B shares due to differing fees and
expenses.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
ABOUT THIS CHART
The chart compares your fund's Class A and B shares to a benchmark index. It is
intended to give you a general idea of how your fund performed compared to the
stock market over the period 9/15/94-10/31/99 (Please note that the index's
performance figures are for the period 8/31/94 through 10/31/99.) It is
important to understand the difference between your fund and an index. Your
fund's total return is shown with a sales charge and includes fund expenses and
management fees. An index measures the performance of a hypothetical portfolio,
in this case the Morgan Stanley Capital International (MSCI) World Index. Please
keep in mind that the MSCI World Index tracks the performance of global
large-cap stocks, not the global small-cap stocks in which your fund invests.
There is no true MSCI benchmark that measures global small-cap stock
performance. Unlike your fund, an index is not managed; therefore, there are no
sales charges, expenses or fees. You cannot invest in an index. But if you could
buy all the securities that make up a particular index, you would incur expenses
that would affect the return on your investment.
AIM GLOBAL AGGRESSIVE GROWTH FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-33.56%
BROADCASTING (TELEVISION, RADIO &
CABLE)-1.41%
Hispanic Broadcasting Corp.(a) 144,100 $ 11,672,100
- ---------------------------------------------------------------
UnitedGlobalCom Inc.-Class A(a) 157,100 13,667,700
- ---------------------------------------------------------------
25,339,800
- ---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-10.15%
ANTEC Corp.(a) 125,000 6,062,500
- ---------------------------------------------------------------
Comverse Technology, Inc.(a) 150,000 17,025,000
- ---------------------------------------------------------------
Dycom Industries, Inc.(a) 210,800 6,864,175
- ---------------------------------------------------------------
Harmonic, Inc.(a) 500,000 29,687,500
- ---------------------------------------------------------------
JDS Uniphase Corp.(a) 734,994 122,652,124
- ---------------------------------------------------------------
182,291,299
- ---------------------------------------------------------------
COMPUTERS (NETWORKING)-1.49%
Emulex Corp.(a) 171,200 26,696,500
- ---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.92%
Network Appliance, Inc.(a) 82,300 6,090,200
- ---------------------------------------------------------------
QLogic Corp.(a) 100,000 10,412,500
- ---------------------------------------------------------------
16,502,700
- ---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-1.86%
Citrix Systems, Inc.(a) 231,600 14,851,350
- ---------------------------------------------------------------
Concord Communications, Inc.(a) 88,400 4,591,275
- ---------------------------------------------------------------
VERITAS Software Corp.(a) 129,100 13,926,662
- ---------------------------------------------------------------
33,369,287
- ---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.34%
Patterson Dental Co.(a) 133,550 6,018,097
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.39%
Cree Research, Inc.(a) 150,000 6,403,125
- ---------------------------------------------------------------
Sanmina Corp.(a) 136,700 12,311,544
- ---------------------------------------------------------------
Sawtek, Inc.(a) 150,000 6,150,000
- ---------------------------------------------------------------
24,864,669
- ---------------------------------------------------------------
ELECTRONICS (COMPONENT DISTRIBUTORS)-0.22%
Power-One, Inc.(a) 200,000 4,000,000
- ---------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-0.38%
Alpha Industries, Inc.(a) 125,000 6,906,250
- ---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-4.68%
ANADIGICS, Inc.(a) 200,000 7,700,000
- ---------------------------------------------------------------
Dallas Semiconductor Corp. 115,000 6,770,625
- ---------------------------------------------------------------
Micrel, Inc.(a) 195,800 10,646,625
- ---------------------------------------------------------------
Microchip Technology, Inc.(a) 225,000 14,990,625
- ---------------------------------------------------------------
PMC-Sierra, Inc.(a) 154,700 14,580,475
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (SEMICONDUCTORS)-(CONTINUED)
SDL, Inc.(a) 130,000 $ 16,030,625
- ---------------------------------------------------------------
Semtech Corp.(a) 200,000 7,662,500
- ---------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 122,000 5,596,750
- ---------------------------------------------------------------
83,978,225
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-0.76%
Alpharma, Inc.-Class A 250,000 8,796,875
- ---------------------------------------------------------------
Medicis Pharmaceutical
Corp.-Class A(a) 160,100 4,883,050
- ---------------------------------------------------------------
13,679,925
- ---------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-0.18%
Province Healthcare Co.(a) 201,800 3,254,025
- ---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-0.22%
Express Scripts, Inc.-Class A(a) 80,000 3,930,000
- ---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.13%
ResMed, Inc.(a) 80,000 2,770,000
- ---------------------------------------------------------------
Sybron International Corp.(a) 344,300 8,198,644
- ---------------------------------------------------------------
VISX, Inc.(a) 150,000 9,384,375
- ---------------------------------------------------------------
20,353,019
- ---------------------------------------------------------------
HEALTH CARE (SPECIALIZED
SERVICES)-0.18%
Advance Paradigm, Inc.(a) 75,000 3,196,875
- ---------------------------------------------------------------
RESTAURANTS-0.95%
CEC Entertainment, Inc.(a) 450,000 14,428,125
- ---------------------------------------------------------------
Papa John's International,
Inc.(a) 68,200 2,548,975
- ---------------------------------------------------------------
16,977,100
- ---------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-1.18%
CDW Computer Centers, Inc.(a) 343,000 21,180,250
- ---------------------------------------------------------------
RETAIL (SPECIALTY)-0.82%
Footstar, Inc.(a) 94,500 3,307,500
- ---------------------------------------------------------------
O'Reilly Automotive, Inc.(a) 217,300 9,479,712
- ---------------------------------------------------------------
Tuesday Morning Corp.(a) 86,300 1,984,900
- ---------------------------------------------------------------
14,772,112
- ---------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-2.26%
American Eagle Outfitters,
Inc.(a) 130,000 5,565,625
- ---------------------------------------------------------------
AnnTaylor Stores Corp.(a) 128,900 5,486,306
- ---------------------------------------------------------------
Men's Wearhouse, Inc. (The)(a) 410,000 8,994,375
- ---------------------------------------------------------------
Pacific Sunwear of California(a) 414,750 12,520,266
- ---------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (SPECIALTY-APPAREL)-(CONTINUED)
Too Inc.(a) 500,000 $ 8,000,000
- ---------------------------------------------------------------
40,566,572
- ---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.83%
Insight Enterprises, Inc.(a) 400,000 14,950,000
- ---------------------------------------------------------------
SERVICES (DATA PROCESSING)-1.54%
Affiliated Computer Services,
Inc.-Class A(a) 149,100 5,665,800
- ---------------------------------------------------------------
Concord EFS, Inc.(a) 599,407 16,221,452
- ---------------------------------------------------------------
NOVA Corp.(a) 221,500 5,759,000
- ---------------------------------------------------------------
27,646,252
- ---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-0.36%
Powerwave Technologies, Inc.(a) 100,000 6,506,250
- ---------------------------------------------------------------
TEXTILES (APPAREL)-0.31%
Quicksilver, Inc.(a) 400,000 5,650,000
- ---------------------------------------------------------------
Total Domestic Common Stocks
(Cost $240,178,870) 602,629,207
- ---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-62.47%
AUSTRALIA-1.34%
Brambles Industries Ltd. (Air
Freight) 235,000 6,610,877
- ---------------------------------------------------------------
ERG Ltd. (Electrical Equipment) 3,098,000 12,213,004
- ---------------------------------------------------------------
TABCORP Holdings Ltd. (Leisure
Time Products) 828,000 5,250,121
- ---------------------------------------------------------------
24,074,002
- ---------------------------------------------------------------
BELGIUM-0.34%
UCB S.A.
(Manufacturing-Diversified) 165,000 6,153,703
- ---------------------------------------------------------------
BRAZIL-1.53%
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar-Pfd. GDR (Retail-Food
Chains) 277,419 6,068,541
- ---------------------------------------------------------------
Embratel Participacoes S.A.-ADR
(Telephone) 285,200 3,671,950
- ---------------------------------------------------------------
Petroleo Brasileiro
S.A.-Petrobras-Pfd. (Oil &
Gas-Exploration & Production) 70,200 11,166,547
- ---------------------------------------------------------------
Tele Centro Sul Participacoes
S.A.-ADR (Telephone) 63,700 3,806,075
- ---------------------------------------------------------------
Telesp Participacoes S.A.-ADR
(Telephone) 170,800 2,764,825
- ---------------------------------------------------------------
27,477,938
- ---------------------------------------------------------------
CANADA-4.10%
Biovail Corp. International
(Health Care- Drugs-Generic &
Other)(a) 114,300 6,307,931
- ---------------------------------------------------------------
Celestica Inc. (Electronics-
Semiconductors)(a) 134,000 7,453,750
- ---------------------------------------------------------------
Cinar Films, Inc.-Class B
(Entertainment)(a) 126,000 2,189,250
- ---------------------------------------------------------------
C-MAC Industries, Inc.
(Electronics- Component
Distributors)(a) 309,200 9,807,539
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Dorel Industries Inc. (Household
Furniture & Appliances)(a) 151,400 $ 2,699,348
- ---------------------------------------------------------------
Four Seasons Hotels, Inc.
(Lodging-Hotels) 185,900 7,749,706
- ---------------------------------------------------------------
Intertape Polymer Group, Inc.
(Chemicals- Specialty) 100,000 2,699,857
- ---------------------------------------------------------------
Onex Corp. (Investments) 138,000 2,601,032
- ---------------------------------------------------------------
Research in Motion Ltd.
(Communications Equipment) 500,000 15,502,955
- ---------------------------------------------------------------
Rogers Cantel Mobile
Communications Inc.
(Telecommunications-
Cellular/Wireless)(a) 95,200 2,715,751
- ---------------------------------------------------------------
Sears Canada, Inc.
(Retail-Department Stores) 323,000 7,130,001
- ---------------------------------------------------------------
Shaw Communications, Inc.
(Broadcasting- Television,
Radio & Cable) 223,000 6,778,000
- ---------------------------------------------------------------
73,635,120
- ---------------------------------------------------------------
CHILE-0.07%
Madeco S.A.-ADR (Metal
Fabricators) 129,000 1,273,875
- ---------------------------------------------------------------
DENMARK-0.67%
Vestas Wind Systems A/S
(Manufacturing- Specialized)(a) 92,500 12,107,501
- ---------------------------------------------------------------
FINLAND-0.98%
JOT Automation Group Oyj
(Manufacturing- Specialized)(a) 1,553,000 8,005,785
- ---------------------------------------------------------------
Sonera Oyj
(Telecommunications-Cellular/
Wireless) 320,000 9,611,529
- ---------------------------------------------------------------
17,617,314
- ---------------------------------------------------------------
FRANCE-4.89%
Altran Technologies, S.A.
(Services- Commercial &
Consumer) 54,900 18,823,184
- ---------------------------------------------------------------
Bertrand Faure S.A. (Auto Parts &
Equipment)(a) 100,000 6,038,767
- ---------------------------------------------------------------
Business Objects S.A.-ADR
(Computers- Software &
Services)(a) 100,000 7,200,000
- ---------------------------------------------------------------
Galeries Lafayette
(Retail-Department Stores) 70,000 10,310,090
- ---------------------------------------------------------------
GFI Informatique
(Computers-Software & Services) 67,000 5,991,425
- ---------------------------------------------------------------
Havas Advertising S.A.
(Services-Advertising/
Marketing) 44,000 12,336,338
- ---------------------------------------------------------------
M6 Metropole Television
(Broadcasting- Television,
Radio & Cable) 22,000 6,017,726
- ---------------------------------------------------------------
NRJ S.A.
(Broadcasting-Television, Radio
& Cable)(a) 11,000 3,425,475
- ---------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio
& Cable) 56,500 17,713,366
- ---------------------------------------------------------------
87,856,371
- ---------------------------------------------------------------
GERMANY-2.18%
EM.TV & Merchandising A.G.
(Broadcasting- Television,
Radio & Cable) 170,000 8,405,879
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GERMANY-(CONTINUED)
EM.TV & Merchandising A.G.-Rts.,
expiring 11/12/99
(Broadcasting-Television, Radio &
Cable) 170,000 $ 1,788
- ---------------------------------------------------------------
Kamps A.G. (Retail-Food Chains) 70,000 3,917,834
- ---------------------------------------------------------------
Marschollek, Lautenschlaeger and
Partner A.G.
(Services-Commercial &
Consumer) 30,000 6,328,081
- ---------------------------------------------------------------
Porsche A.G.-Pfd. (Automobiles) 6,270 17,084,556
- ---------------------------------------------------------------
PrimaCom A.G.
(Broadcasting-Television,
Radio, & Cable)(a) 67,000 3,334,052
- ---------------------------------------------------------------
39,072,190
- ---------------------------------------------------------------
GREECE-1.05%
M.J. Maillis S.A. (Containers &
Packaging- Paper) 210,000 7,935,132
- ---------------------------------------------------------------
Panafon Hellenic Telecom S.A.-GDR
(Telecommunications-Cellular/Wireless)
(Acquired 11/20/98-04/23/99;
Cost $3,591,542)(a)(b) 341,200 4,265,000
- ---------------------------------------------------------------
Titan Cement (Construction-Cement
& Aggregates) 60,000 6,652,436
- ---------------------------------------------------------------
18,852,568
- ---------------------------------------------------------------
HONG KONG-2.99%
China Telecom Ltd.
(Telecommunications-
Cellular/Wireless)(a) 3,428,000 11,716,301
- ---------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 12,224,000 8,654,883
- ---------------------------------------------------------------
Dao Heng Bank Group Ltd. (Banks-
Regional)(a) 3,047,000 13,846,256
- ---------------------------------------------------------------
Esprit Holdings Ltd.
(Retail-Stores) 3,506,000 3,294,731
- ---------------------------------------------------------------
Hutchison Whampoa Ltd.
(Retail-Food Chains) 1,615,000 16,216,321
- ---------------------------------------------------------------
53,728,492
- ---------------------------------------------------------------
HUNGARY-0.51%
Magyar Tavkozlesi Rt-ADR
(Telecommunications-Long
Distance) 320,000 9,220,000
- ---------------------------------------------------------------
INDONESIA-0.55%
Gulf Indonesia Resources Ltd.
(Oil- International
Integrated)(a) 606,600 4,814,887
- ---------------------------------------------------------------
PT Indofood Sukses Makmur Tbk
(Foods)(a) 4,247,000 5,018,337
- ---------------------------------------------------------------
9,833,224
- ---------------------------------------------------------------
IRELAND-0.96%
CRH PLC (Construction-Cement &
Aggregates) 490,000 9,253,306
- ---------------------------------------------------------------
Esat Telecom Group PLC-ADR
(Telecommunications-Long
Distance)(a) 110,500 4,944,875
- ---------------------------------------------------------------
Ryanair Holdings PLC-ADR
(Airlines)(a) 72,200 2,978,250
- ---------------------------------------------------------------
17,176,431
- ---------------------------------------------------------------
ISRAEL-0.79%
Orbotech, Ltd.
(Computers-Software &
Services)(a) 138,000 10,781,250
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ISRAEL-(CONTINUED)
Partner Communications Co.
Ltd.-ADR
(Telecommunications-
Cellular/Wireless)(a) 215,000 $ 3,386,250
- ---------------------------------------------------------------
14,167,500
- ---------------------------------------------------------------
ITALY-1.47%
Banca Popolare di Brescia (Banks-
Regional) 314,000 13,296,334
- ---------------------------------------------------------------
Gruppo Editoriale L'Espresso
(Publishing) 600,000 13,034,899
- ---------------------------------------------------------------
26,331,233
- ---------------------------------------------------------------
JAPAN-9.55%
Bellsystem 24, Inc.
(Services-Commercial &
Consumer) 42,000 40,285,838
- ---------------------------------------------------------------
Circle K Japan Co. Ltd.
(Retail-Food Chains) 244,200 9,790,955
- ---------------------------------------------------------------
Hokuto Corp. (Agricultural
Products) 240,750 14,201,837
- ---------------------------------------------------------------
Orix Corp.
(Financial-Diversified) 27,600 3,706,297
- ---------------------------------------------------------------
Sanix Inc. (Services-Commercial &
Consumer) 108,600 10,104,264
- ---------------------------------------------------------------
Shohkoh Fund & Co. Ltd.
(Financial- Diversified) 20,600 12,606,398
- ---------------------------------------------------------------
Softbank Corp.
(Computers-Software &
Services)(a) 68,000 28,242,291
- ---------------------------------------------------------------
Trend Micro Inc.
(Computers-Software &
Services)(a) 115,650 22,962,496
- ---------------------------------------------------------------
Yahoo Japan Corp.
(Computers-Software &
Services)(a) 5,600 29,542,948
- ---------------------------------------------------------------
171,443,324
- ---------------------------------------------------------------
MEXICO-6.02%
Cemex S.A. de C.V.-ADR
(Construction- Cement &
Aggregates)(a) 259,400 5,836,500
- ---------------------------------------------------------------
Cifra S.A. de C.V.
(Retail-General Merchandise)(a) 5,300,000 8,102,964
- ---------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages- Non-Alcoholic) 566,300 7,857,412
- ---------------------------------------------------------------
Controladora Comercial Mexicana
S.A. de C.V. (Retail-Department
Stores)(c) 5,079,000 4,204,768
- ---------------------------------------------------------------
Corporacion Interamericana de
Entretenimiento S.A.
(Entertainment)(a) 3,288,144 8,891,497
- ---------------------------------------------------------------
Fomento Economico Mexicano, S.A.
de C.V.-ADR
(Beverages-Non-Alcoholic) 446,880 14,663,250
- ---------------------------------------------------------------
Grupo Financiero Banamex Accival,
S.A. de C.V. (Banacci)
(Financial-Diversified)(a) 2,368,000 5,923,079
- ---------------------------------------------------------------
Grupo Modelo S.A. de C.V.-Series
C (Beverages-Alcoholic) 3,161,000 7,725,793
- ---------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 323,000 13,727,500
- ---------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.- Class A (Paper & Forest
Products) 2,014,000 6,451,503
- ---------------------------------------------------------------
Organizacion Soriana S.A. de C.V.
(Retail- Department Stores) 1,776,000 6,575,725
- ---------------------------------------------------------------
Telefonos de Mexico S.A.-ADR
(Telephone) 142,000 12,141,000
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEXICO-(CONTINUED)
Tubos de Acero de Mexico S.A.-ADR
(Oil & Gas-Drilling & Equipment) 541,800 $ 5,925,937
- ---------------------------------------------------------------
108,026,928
- ---------------------------------------------------------------
NETHERLANDS-2.43%
CMG PLC (Computers-Software &
Services) 267,000 10,308,933
- ---------------------------------------------------------------
Draka Holding N.V. (Metal
Fabricators)(a) 21,573 777,334
- ---------------------------------------------------------------
Getronics N.V.
(Computers-Software & Services) 300,000 14,960,151
- ---------------------------------------------------------------
Gucci Group N.V.-New York Shares
(Textiles) 118,000 9,528,500
- ---------------------------------------------------------------
Nutreco Holding N.V.
(Agricultural Products) 235,000 8,035,032
- ---------------------------------------------------------------
43,609,950
- ---------------------------------------------------------------
NORWAY-1.45%
Merkantildata A.S.A
(Services-Commercial &
Consumer) 872,000 7,387,477
- ---------------------------------------------------------------
Tomra Systems A.S.A.
(Manufacturing- Specialized) 486,000 18,574,431
- ---------------------------------------------------------------
25,961,908
- ---------------------------------------------------------------
PHILIPPINES-0.35%
International Container Terminal
Services, Inc. (Air Freight)(a) 6,112,500 586,861
- ---------------------------------------------------------------
SM Prime Holdings, Inc. (Land
Development) 32,000,000 5,665,835
- ---------------------------------------------------------------
6,252,696
- ---------------------------------------------------------------
SINGAPORE-1.98%
Datacraft Asia Ltd.
(Communications Equipment) 834,500 3,838,700
- ---------------------------------------------------------------
DBS Group Holdings Ltd.
(Banks-Money Center)(a) 640,813 7,245,615
- ---------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction) 1,939,000 5,271,113
- ---------------------------------------------------------------
Keppel Land Ltd. (Land
Development) 3,413,000 4,823,811
- ---------------------------------------------------------------
NatSteel Ltd. (Iron & Steel) 3,946,000 6,597,630
- ---------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing- Newspapers) 459,000 7,867,625
- ---------------------------------------------------------------
35,644,494
- ---------------------------------------------------------------
SOUTH AFRICA-0.41%
Dimension Data Holdings Ltd.
(Computers- Software &
Services)(a) 1,519,563 7,372,076
- ---------------------------------------------------------------
SOUTH KOREA-2.80%
Hyundai Motor Co. Ltd.
(Automobiles)(a) 213,000 3,746,811
- ---------------------------------------------------------------
Korea Electric Power Corp.-ADR
(Electric Companies) 486,600 7,663,950
- ---------------------------------------------------------------
Korea Telecom Corp.-ADR
(Telephone)(a) 274,500 9,676,125
- ---------------------------------------------------------------
L.G. Chemical Ltd.
(Chemicals-Specialty) 357,000 10,803,752
- ---------------------------------------------------------------
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 301,900 10,075,913
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SOUTH KOREA-(CONTINUED)
Samsung Electronics
(Electronics-Component
Distributors) 50,000 $ 8,336,807
- ---------------------------------------------------------------
50,303,358
- ---------------------------------------------------------------
SPAIN-1.27%
Cortefiel S.A. (Retail-Department
Stores) 155,000 4,048,972
- ---------------------------------------------------------------
Mapfre Vida S.A.
(Insurance-Life/Health) 158,000 4,125,677
- ---------------------------------------------------------------
NH Hotels S.A. (Investment
Management)(a) 1,287,000 14,555,375
- ---------------------------------------------------------------
22,730,024
- ---------------------------------------------------------------
SWEDEN-2.15%
Assa Abloy A.B.-Class B (Metal
Fabricators) 920,000 10,235,895
- ---------------------------------------------------------------
Europolitan Holdings A.B.
(Telecommunications-
Cellular/Wireless) 484,200 5,563,825
- ---------------------------------------------------------------
Framtidsfabriken A.B.
(Computers-Software &
Services)(a) 86,000 3,461,333
- ---------------------------------------------------------------
Modern Times Group A.B.-Class B
(Broadcasting-Television, Radio
& Cable)(a) 469,000 15,169,504
- ---------------------------------------------------------------
NetCom A.B.
(Telecommunications-Cellular/
Wireless)(a) 102,600 4,260,445
- ---------------------------------------------------------------
38,691,002
- ---------------------------------------------------------------
SWITZERLAND-0.73%
Kudelski S.A.
(Electronics-Component
Distributors)(a) 1,220 5,072,998
- ---------------------------------------------------------------
PubliGroupe S.A.
(Services-Advertising/
Marketing) 11,000 8,065,849
- ---------------------------------------------------------------
13,138,847
- ---------------------------------------------------------------
TAIWAN-1.45%
Compal Electronics, Inc.
(Computers- Hardware) 2,801,000 9,404,366
- ---------------------------------------------------------------
Far Eastern Textile Ltd.
(Chemicals- Diversified) 5,641,040 7,718,195
- ---------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co.
(Electronics-Semiconductors)(a) 2,021,000 8,983,638
- ---------------------------------------------------------------
26,106,199
- ---------------------------------------------------------------
THAILAND-0.70%
Advanced Info Service Public Co.
Ltd. (Telephone)(a) 569,000 6,632,561
- ---------------------------------------------------------------
Siam Commercial Bank PLC, 5.25%
Pfd. (Banks-Regional)(a) 5,189,000 5,880,553
- ---------------------------------------------------------------
12,513,114
- ---------------------------------------------------------------
UNITED KINGDOM-6.76%
Aggreko PLC (Services-Facilities
& Environmental) 1,000,000 5,022,726
- ---------------------------------------------------------------
AMEC PLC (Construction-Cement &
Aggregates) 678,000 2,391,031
- ---------------------------------------------------------------
ARM Holdings PLC (Electronics-
Semiconductors)(a) 112,000 3,181,925
- ---------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Avis Europe PLC
(Services-Commercial &
Consumer)(c) 1,484,550 $ 6,345,947
- ---------------------------------------------------------------
Cattles PLC (Consumer Finance) 1,020,000 4,779,399
- ---------------------------------------------------------------
Compass Group PLC
(Services-Commercial &
Consumer) 670,000 7,182,086
- ---------------------------------------------------------------
Eidos PLC-ADR (Computer Software/
Services)(a) 216,000 15,079,500
- ---------------------------------------------------------------
Iceland Group PLC (Retail-Food
Chains) 862,000 4,102,835
- ---------------------------------------------------------------
J.D. Wetherspoon PLC (Leisure
Time- Products) 1,000,000 5,622,822
- ---------------------------------------------------------------
Logica PLC (Computer Software &
Services) 775,000 11,856,222
- ---------------------------------------------------------------
Matalan PLC (Retail-Discounters) 160,000 3,603,867
- ---------------------------------------------------------------
Mayflower Corp. PLC (The) (Auto
Parts & Equipment) 2,240,000 7,733,846
- ---------------------------------------------------------------
Nestor Healthcare Group PLC
(Services- Commercial &
Consumer) 300,000 2,935,952
- ---------------------------------------------------------------
Pace Micro Technology PLC
(Communications Equipment) 1,360,000 6,109,804
- ---------------------------------------------------------------
Provident Financial PLC (Consumer
Finance) 964,912 10,779,668
- ---------------------------------------------------------------
Sage Group PLC (The)
(Computers-Software & Services) 369,150 18,941,958
- ---------------------------------------------------------------
Stagecoach Holdings PLC
(Shipping) 1,980,000 5,631,700
- ---------------------------------------------------------------
121,301,288
- ---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$778,989,784) 1,121,672,670
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
U.S. DOLLAR DENOMINATED
CONVERTIBLE BONDS & NOTES-0.27%
MANUFACTURING (DIVERSIFIED)-0.27%
Shanghai Industrial Investment
Trust Co. (United Kingdom),
Conv. Gtd. Bonds, 1.00%,
02/24/03 (Acquired 03/05/98-
03/09/98; Cost $5,218,750)(b) $ 5,000,000 $ 4,762,500
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-4.34%
STIC Liquid Assets Portfolio(d) 38,938,805 38,938,805
- ---------------------------------------------------------------
STIC Prime Portfolio(d) 38,938,805 38,938,805
- ---------------------------------------------------------------
Total Money Market Funds
(Cost $77,877,610) 77,877,610
- ---------------------------------------------------------------
TOTAL INVESTMENTS-100.64% 1,806,941,987
- ---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.64%) (11,446,930)
- ---------------------------------------------------------------
NET ASSETS-100.00% $1,795,495,057
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GDR - Global Depositary Receipt
Gtd. - Guaranteed
Pfd. - Preferred
Rts. - Rights
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of this security has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 10/31/99 was $9,027,500, which
represented 0.50% of the Fund's net assets.
(c) Represents a security sold under Rule 144A, which is exempt from
registration and may be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended.
(d) The security shares the same investment advisor as the Fund.
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$1,102,265,014)) $ 1,806,941,987
- ------------------------------------------------------------
Foreign currencies, at value (cost
$12,540,812)) 12,603,459
- ------------------------------------------------------------
Receivables for:
Investments sold 2,533,659
- ------------------------------------------------------------
Capital stock sold 1,489,698
- ------------------------------------------------------------
Dividends and interest 1,340,732
- ------------------------------------------------------------
Foreign exchange contracts 11,893
- ------------------------------------------------------------
Investment for deferred compensation plan 36,447
- ------------------------------------------------------------
Other assets 46,712
- ------------------------------------------------------------
Total assets 1,825,004,587
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 22,853,421
- ------------------------------------------------------------
Capital stock reacquired 2,845,059
- ------------------------------------------------------------
Deferred compensation 36,447
- ------------------------------------------------------------
Foreign exchange contracts 1,869
- ------------------------------------------------------------
Accrued advisory fees 1,282,152
- ------------------------------------------------------------
Accrued administrative services fees 12,779
- ------------------------------------------------------------
Accrued directors' fees 4,950
- ------------------------------------------------------------
Accrued distribution fees 1,364,737
- ------------------------------------------------------------
Accrued transfer agent fees 671,017
- ------------------------------------------------------------
Accrued operating expenses 437,099
- ------------------------------------------------------------
Total liabilities 29,509,530
- ------------------------------------------------------------
Net assets applicable to shares outstanding $ 1,795,495,057
============================================================
NET ASSETS:
Class A $ 852,198,373
============================================================
Class B $ 926,971,942
============================================================
Class C $ 16,324,742
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 38,827,789
============================================================
Class B:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 43,427,805
============================================================
Class C:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 764,714
============================================================
Class A:
Net asset value and redemption price per
share $ 21.95
- ------------------------------------------------------------
Offering price per share:
(Net asset value $21.95 / 95.25%) $ 23.04
============================================================
Class B:
Net asset value and offering price per
share $ 21.35
============================================================
Class C:
Net asset value and offering price per
share $ 21.35
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $1,233,796 foreign
withholding tax) $ 9,907,460
- -------------------------------------------------------------
Interest 5,073,170
- -------------------------------------------------------------
Total investment income 14,980,630
- -------------------------------------------------------------
EXPENSES:
Advisory fees 15,416,368
- -------------------------------------------------------------
Administrative services fees 127,117
- -------------------------------------------------------------
Custodian fees 1,206,826
- -------------------------------------------------------------
Directors' fees 25,466
- -------------------------------------------------------------
Distribution fees-Class A 4,209,929
- -------------------------------------------------------------
Distribution fees-Class B 8,987,826
- -------------------------------------------------------------
Distribution fees-Class C 140,985
- -------------------------------------------------------------
Transfer agent fees-Class A 2,565,991
- -------------------------------------------------------------
Transfer agent fees-Class B 3,267,402
- -------------------------------------------------------------
Transfer agent fees-Class C 64,107
- -------------------------------------------------------------
Other 830,046
- -------------------------------------------------------------
Total expenses 36,842,063
- -------------------------------------------------------------
Less: Expenses paid indirectly (61,092)
- -------------------------------------------------------------
Net expenses 36,780,971
- -------------------------------------------------------------
Net investment income (loss) (21,800,341)
- -------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment securities 197,468,014
- -------------------------------------------------------------
Foreign currencies (1,896,989)
- -------------------------------------------------------------
195,571,025
- -------------------------------------------------------------
Change in net unrealized appreciation of:
Investment securities 394,282,624
- -------------------------------------------------------------
Foreign currencies 8,398
- -------------------------------------------------------------
394,291,022
- -------------------------------------------------------------
Net gain from investment securities and
foreign
currencies 589,862,047
- -------------------------------------------------------------
Net increase in net assets resulting from
operations $ 568,061,706
=============================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (21,800,341) $ (19,250,738)
- ----------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 195,571,025 8,287,562
- ----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies 394,291,022 (163,765,028)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 568,061,706 (174,728,204)
- ----------------------------------------------------------------------------------------------
Share transactions-net:
Class A (361,902,444) (230,924,075)
- ----------------------------------------------------------------------------------------------
Class B (307,272,112) (195,608,768)
- ----------------------------------------------------------------------------------------------
Class C (1,457,883) 10,146,858
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (102,570,733) (591,114,189)
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,898,065,790 2,489,179,979
- ----------------------------------------------------------------------------------------------
End of period $1,795,495,057 $1,898,065,790
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 992,683,210 $1,684,292,210
- ----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (13,357,764) (10,598,077)
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies 111,551,104 (85,955,828)
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 704,618,507 310,327,485
- ----------------------------------------------------------------------------------------------
$1,795,495,057 $1,898,065,790
==============================================================================================
</TABLE>
See Notes to Financial Statements.
11
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Aggressive Growth Fund (the "Fund") is a series portfolio of AIM
International Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end series management investment company consisting of six
separate portfolios. The Fund currently offers three different classes of
shares: Class A shares, Class B shares and Class C shares. Class A shares are
sold with a front-end sales charge. Class B shares and Class C shares are sold
with a contingent deferred sales charge. Matters affecting each portfolio or
class 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 above-average 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 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 options contracts generally will be
valued 15 minutes after the close of trading 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 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, Investment Income and Distributions
-- 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. The Fund may elect to use a portion of the proceeds of
capital stock redemptions as distributions for Federal income tax purposes.
Distributions from income and net realized capital gains, if any, are
generally paid annually and recorded on ex-dividend date.
On October 31, 1999, undistributed net investment income was increased by
$19,040,654, undistributed net realized gains increased by $1,935,907 and
paid-in capital decreased by $20,976,561 as a result of differing book/tax
treatment of foreign currency transactions and net operating loss
reclassifications in order to comply with the requirements of the American
Institute of Certified Public Accountants Statement of Position 93-2. Net
assets of the Fund were unaffected by the reclassification discussed above.
C. 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.
D. 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
12
<PAGE> 15
fluctuations are included with the net realized and unrealized gain or loss
from investments.
E. 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.
F. Bond Premiums -- It is the policy of the Fund not to amortize
market premiums on bonds for financial reporting purposes.
G. Expenses -- Distribution expenses 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 investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.90% of the first $1
billion of the Fund's average daily net assets, plus 0.85% of the Fund's average
daily net assets in excess of $1 billion.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. During the year ended October 31, 1999, AIM was
paid $127,117 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. During the year ended October 31, 1999, AFS
was paid $3,367,288 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 a plan
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
0.50% 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 year ended October 31,
1999, the Class A, Class B and Class C shares paid AIM Distributors $4,209,929,
$8,987,826 and $140,985, respectively, as compensation under the Plans.
AIM Distributors received commissions of $267,534 from sales of the Class A
shares of the Fund during the year ended October 31, 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 year ended October 31, 1999,
AIM Distributors received $101,594 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 year ended October 31, 1999, the Fund paid legal fees of $6,959 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 year ended October 31, 1999, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) and reductions in custodian fees of
$21,196 and $39,896, respectively, under expense offset arrangements. The effect
of the above arrangements resulted in a reduction of the Fund's total expenses
of $61,092 during the year ended October 31, 1999.
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 year
ended October 31, 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 0.09% on the unused balance of the committed line. Prior to
May 28, 1999, the commitment fee rate was 0.05%. The commitment fee is allocated
among the funds based on their respective average net assets for the period.
13
<PAGE> 16
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the year ended October 31, 1999 was
$980,253,634 and $1,451,494,862, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of October 31, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $727,202,713
- --------------------------------------------------------------------------
Aggregate unrealized appreciation (depreciation) of
investment securities (35,792,955)
- --------------------------------------------------------------------------
Net unrealized appreciation of investment securities $691,409,758
==========================================================================
</TABLE>
Cost of investments for tax purposes is $1,115,532,229.
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the years ended October 31, 1999 and
1998 were as follows:
<TABLE>
<CAPTION>
1999 1998
----------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- --------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 44,392,973 $ 788,784,876 98,887,924 $ 1,735,509,689
- ---------------------------------------------------------------------------------------------------------------------
Class B 2,884,425 50,807,802 8,273,209 143,682,325
- ---------------------------------------------------------------------------------------------------------------------
Class C 812,924 14,207,396 839,541 14,593,832
- ---------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Reacquired:
Class A (64,640,003) (1,150,687,320) (111,697,312) (1,966,433,764)
- ---------------------------------------------------------------------------------------------------------------------
Class B (20,494,580) (358,079,914) (20,304,373) (339,291,093)
- ---------------------------------------------------------------------------------------------------------------------
Class C (897,630) (15,665,279) (265,144) (4,446,974)
- ---------------------------------------------------------------------------------------------------------------------
(37,941,891) $ (670,632,439) (24,266,155) $ (416,385,985)
=====================================================================================================================
</TABLE>
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 each of the years in the five-year period ended
October 31, 1999 and for a share of Class C capital stock outstanding during
each of the years in the two-year period ended October 31, 1999 and the period
August 4, 1997 (date sales commenced) through October 31, 1997.
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.87 $ 17.28 $ 15.76 $ 13.09 $ 10.22
- ------------------------------------------------------------ -------- -------- ---------- -------- --------
Income from investment operations:
Net investment income (loss) (0.17)(a) (0.10)(a) (0.15)(a) (0.09)(a) (0.09)(a)
- ------------------------------------------------------------ -------- -------- ---------- -------- --------
Net gains (losses) on securities (both realized and
unrealized) 6.25 (1.31) 1.67 2.81 2.96
- ------------------------------------------------------------ -------- -------- ---------- -------- --------
Total from investment operations 6.08 (1.41) 1.52 2.72 2.87
- ------------------------------------------------------------ -------- -------- ---------- -------- --------
Less distributions:
Distributions from net realized gains -- -- -- (0.05) --
- ------------------------------------------------------------ -------- -------- ---------- -------- --------
Net asset value, end of period $ 21.95 $ 15.87 $ 17.28 $ 15.76 $ 13.09
============================================================ ======== ======== ========== ======== ========
Total return(b) 38.31% (8.16)% 9.65% 20.83% 28.08%
============================================================ ======== ======== ========== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $852,198 $937,587 $1,242,505 $919,319 $186,029
============================================================ ======== ======== ========== ======== ========
Ratio of expenses to average net assets 1.80%(c) 1.75% 1.75% 1.83% 2.11%
============================================================ ======== ======== ========== ======== ========
Ratio of net investment income (loss) to average net assets (0.95)%(c) (0.55)% (0.88)% (0.62)% (0.68)%
============================================================ ======== ======== ========== ======== ========
Portfolio turnover rate 60% 50% 57% 44% 64%
============================================================ ======== ======== ========== ======== ========
</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 based on average net assets of $841,985,823.
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------------------------- -----------------------------
1999 1998 1997 1996 1995 1999 1998 1997
-------- -------- ---------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.52 $ 17.00 $ 15.58 $ 13.02 $ 10.21 $ 15.52 $ 17.00 $ 18.39
- ------------------------------------- -------- -------- ---------- -------- -------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.27)(a) (0.19)(a) (0.24)(a) (0.17)(a) (0.14)(a) (0.27)(a) (0.19)(a) (0.04)(a)
- ------------------------------------- -------- -------- ---------- -------- -------- ------- ------- -------
Net gains (losses) on securities
(both realized and unrealized) 6.10 (1.29) 1.66 2.78 2.95 6.10 (1.29) (1.35)
- ------------------------------------- -------- -------- ---------- -------- -------- ------- ------- -------
Total from investment
operations 5.83 (1.48) 1.42 2.61 2.81 5.83 (1.48) (1.39)
- ------------------------------------- -------- -------- ---------- -------- -------- ------- ------- -------
Less distributions:
Distributions from net realized
gains -- -- -- (0.05) -- -- -- --
- ------------------------------------- -------- -------- ---------- -------- -------- ------- ------- -------
Net asset value, end of period $ 21.35 $ 15.52 $ 17.00 $ 15.58 $ 13.02 $ 21.35 $ 15.52 $ 17.00
===================================== ======== ======== ========== ======== ======== ======= ======= =======
Total return(b) 37.56% (8.71)% 9.11% 20.09% 27.52% 37.56% (8.71)% (7.56)%
===================================== ======== ======== ========== ======== ======== ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $926,972 $947,293 $1,241,999 $807,215 $118,199 $16,325 $13,186 $ 4,676
===================================== ======== ======== ========== ======== ======== ======= ======= =======
Ratio of expenses to average net
assets 2.37%(c) 2.32% 2.30% 2.37% 2.62% 2.37%(c) 2.34% 2.36%(d)
===================================== ======== ======== ========== ======== ======== ======= ======= =======
Ratio of net investment income (loss)
to average net assets (1.52)%(c) (1.11)% (1.44)% (1.16)% (1.19)% (1.52)%(c) (1.13)% (1.50)%(d)
===================================== ======== ======== ========== ======== ======== ======= ======= =======
Portfolio turnover rate 60% 50% 57% 44% 64% 60% 50% 57%
===================================== ======== ======== ========== ======== ======== ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are based on average net assets of $898,782,589 and $14,098,451 for
Class B and Class C, respectively.
(d) Annualized.
15
<PAGE> 18
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders of
AIM International Funds, Inc.:
We have audited the accompanying statement of assets and
liabilities of the AIM Global Aggressive Growth Fund (a
portfolio of AIM International Funds, Inc.), including the
schedule of investments, as of October 31, 1999, and the
related statement of operations for the year then ended,
the statement of changes in net assets for each of the
years in the two-year period then ended and the financial
highlights for each of the years in the five-year period
then ended. These financial statements and financial
highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these
financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of
securities owned as of October 31, 1999, by correspondence
with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of AIM Global
Aggressive Growth Fund as of October 31, 1999, the results
of its operations for the year then ended, the changes in
its net assets for each of the years in the two-year period
then ended and the financial highlights for each of the
years in the five-year period then ended in conformity with
generally accepted accounting principles.
KPMG LLP
December 3, 1999
Houston, Texas
16
<PAGE> 19
<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, Nancy L. Martin A I M Distributors, Inc.
Metropolitan Transportation Authority of Assistant Secretary 11 Greenway Plaza
New York State Suite 100
Ofelia M. Mayo Houston, TX 77046
Lewis F. Pennock Assistant Secretary
Attorney AUDITORS
Lisa A. Moss
Louis S. Sklar Assistant Secretary KPMG LLP
Executive Vice President 700 Louisiana
Hines Interests Kathleen J. Pflueger Houston, TX 77002
Limited Partnership Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
<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 mutual
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund fund industry since 1976 and
AIM Capital Development Fund managed approximately $120 billion
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS in assets for more than 6.4 million
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund shareholders, including individual
AIM Large Cap Growth Fund AIM Asian Growth Fund investors, corporate clients and
AIM Mid Cap Equity Fund AIM Developing Markets Fund financial institutions, as of
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) September 30, 1999.
AIM Mid Cap Opportunities Fund AIM European Development Fund The AIM Family of Funds
AIM Select Growth Fund AIM International Equity Fund --Registered Trademark-- is
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund distributed nationwide, and AIM
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund today is the 10th-largest mutual
AIM Value Fund AIM New Pacific Growth Fund fund complex in the United States
AIM Weingarten Fund in assets under management,
GLOBAL GROWTH FUNDS according to Strategic Insight, an
GROWTH & INCOME FUNDS AIM Global Aggressive Growth Fund independent mutual fund monitor.
AIM Advisor Flex Fund AIM Global Growth Fund
AIM Advisor Large Cap Value Fund
AIM Advisor Real Estate Fund GLOBAL GROWTH & INCOME FUNDS
AIM Balanced Fund AIM Global Growth & Income Fund
AIM Basic Value Fund AIM Global Utilities Fund
AIM Charter Fund
GLOBAL INCOME FUNDS
INCOME FUNDS AIM Emerging Markets Debt Fund
AIM Floating Rate Fund AIM Global Government Income Fund
AIM High Yield Fund AIM Global Income Fund
AIM High Yield Fund II AIM Strategic Income Fund
AIM Income Fund
AIM Intermediate Government Fund THEME FUNDS
AIM Limited Maturity Treasury Fund AIM Global Consumer Products and Services Fund
AIM Global Financial Services Fund
TAX-FREE INCOME FUNDS AIM Global Health Care Fund
AIM High Income Municipal Fund AIM Global Infrastructure Fund
AIM Municipal Bond Fund AIM Global Resources Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Telecommunications and Technology Fund(5)
AIM Tax-Free Intermediate Fund AIM Global Trends Fund(6)
</TABLE>
(1) AIM Aggressive Growth Fund reopened to new investors on November 16, 1998.
(2) AIM Small Cap Growth Fund closed to new investors on November 8, 1999. (3)
AIM Small Cap Opportunities Fund closed to new investors on November 4, 1999.
(4) 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). (5) On June 1, 1999, AIM Global Telecommunications Fund was renamed
AIM Global Telecommunications and Technology Fund. (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 January 20, 2000, this report must be accompanied by a
current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
INVEST WITH DISCIPLINE
--Registered Trademark--
AIM Distributors, Inc. GLA-AR-1
