<PAGE> 1
ANNUAL REPORT / OCTOBER 31 1999
AIM GLOBAL GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
-------------------------------------
IRISES BY VINCENT VAN GOGH
VAN GOGH'S PAINTING OF INDIGO IRISES IS ONE OF HIS MASTERPIECES,
PARTLY BECAUSE THE FLOWER HAS SUCH UNIVERSAL APPEAL. NAMED FOR
THE GREEK GODDESS OF THE RAINBOW, IRISES GROW ALL OVER THE GLOBE.
LIKE THE APPRECIATION OF BEAUTIFUL ART AND FLOWERS, INVESTING HAS
CAUGHT THE IMAGINATION AND INTEREST OF PEOPLE THROUGHOUT THE WORLD.
-------------------------------------
AIM Global Growth Fund is for shareholders who seek long-term growth of
capital. The fund invests in a portfolio of global equity securities of
companies with strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Growth Fund's performance figures are historical, and they
reflect changes in net asset value and the reinvestment of all
distributions.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class
C share performance reflects the applicable contingent deferred sales
charge (CDSC) for the period involved. The CDSC on Class B shares declines
from 5% beginning at the time of purchase to 0% at the beginning of the
seventh year. The CDSC on Class C shares is 1% for the first year after
purchase. The performance of the fund's Class B and Class C shares will
differ from that of Class A shares due to differences in sales charge
structure and expenses.
o The fund's average annual total returns, including sales charges, for the
period ended 9/30/99 (the most recent quarter end), are as follows: for
Class A shares, one year 24.33%; five years, 17.72%; inception (9/15/94),
17.16%. Class B shares, one year, 24.77%, five years, 18.03%; inception
(9/15/94), 17.57%. Class C shares, one year, 28.77 %; inception (8/4/97),
12.28%.
o During the fiscal year ended 10/31/99, Class A, B and C shares each paid
distributions of $0.498 per share.
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.
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 World Index is a group of global securities listed on
major world stock exchanges tracked by Morgan Stanley Capital
International.
o The unmanaged MSCI All Country World Index tracks the performance of the
more than 50 countries covered by Morgan Stanley Capital International that
are considered either a developed or emerging market.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM GLOBAL GROWTH FUND
<PAGE> 3
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 GROWTH FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
FOCUS ON GLOBAL LEADERS SPURS PERFORMANCE
HOW DID AIM GLOBAL GROWTH FUND PERFORM DURING THE REPORTING PERIOD?
The fund produced outstanding returns during the fiscal year ended October 31,
1999. Class A shares reported a total annual return of 34.43%, Class B shares
33.69% and Class C shares 33.69%. These figures are at net asset value and do
not include sales charges. The fund outperformed the MSCI All Country World
Index, which produced a total annual return of 26.41% during the same time
frame. Net assets in the fund grew from $513 million to $845 million over the
fiscal year. Approximately $110 million in net assets came from the fund's
merger with AIM Worldwide Growth Fund in January 1999.
WHAT WERE MARKET CONDITIONS LIKE OVER THE FISCAL YEAR?
Investor concern over interest rates made the U.S. markets very volatile near
the end of the reporting period. In June and August, the Federal Reserve Board
(the Fed) raised rates in two quarter-point moves. At its October meeting, the
Fed chose to leave rates unchanged but adopted a "tightening bias," indicating
that it might be inclined to raise rates in the near future. The Fed raised
rates after the fiscal year closed.
In overseas markets, Japan dominated throughout the fiscal year. Investors
flocked to Japanese securities amid prospects of a brighter economy. Japan
posted two consecutive quarters of economic growth, signaling an end to its
extended recession. Market activity drove the value of the yen to powerful
heights.
The major trend in Europe has been 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 with values of more than $10 billion each.
THIS TIME LAST YEAR, EMERGING MARKETS WERE IN TURMOIL. HAVE THINGS IMPROVED?
Yes, there has been a definite recovery. In Asia, a number of countries have
restructured their banking systems and stabilized their currencies, including
Singapore, Indonesia and South Korea. Lower inflation and declining interest
rates have propelled economic growth in those regions. In addition, exports
have increased, and foreign investment has returned.
In Latin America, the Mexican market dominated the region. Declining
interest rates and a stronger peso bolstered its economy, along with the
continued strength of its largest trading partner, the United States.
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
The fund remained invested in global leaders. Our investment strategy focuses
on earnings momentum--we look for stocks with proven earnings records and
prospects for future growth. We also choose our investments stock-by-stock
instead of country-by-country. This strategy allowed us to choose from among
the best-performing stocks worldwide.
We reduced our holdings slightly over the year from 201 to 167 stocks and
remained well-diversified among 22 countries. The United States remained our
largest concentration, making up 37.74% of the fund's net assets. At the end of
the fiscal year, European stocks were 24% of the fund's assets, including 7.00%
in the United Kingdom, 6.33% in France, 2.47% in the Netherlands and 1.78% in
Switzerland.
Bar Charts
GROWTH OF NET ASSETS
As of 10/31/99
===============================================================================
10/31/98 $513 MILLION
10/31/99 $845 MILLION
===============================================================================
AIM GLOBAL GROWTH FUND
VS. BENCHMARK INDEX
As of 10/31/99
===============================================================================
One-year returns, excluding sales charges
CLASS A SHARES 34.43%
CLASS B SHARES 33.69%
CLASS C SHARES 33.69%
MSCI ALL COUNTRY WORLD INDEX 26.41%
===============================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL 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 HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Nortel Networks Corp. (Canada) 1.60% 1. Computers (Software & Services) 6.93% 1. United States 37.74%
2. Carrefour Supermarche S.A. (France) 1.53 2. Telephone 6.39 2. Japan 17.16
3. Nokia Oyj (Finland) 1.34 3. Communications Equipment 6.04 3. United Kingdom 7.00
4. NTT Mobile Communications 1.34 4. Electronics 5.29 4. France 6.33
Network, Inc. (Japan) (Component Distributors)
5. Orange PLC (United Kingdom) 1.33 5. Broadcasting 4.32 5. Canada 3.08
(Television, Radio & Cable)
6. Matsushita Communication 1.25 6. Health Care (Diversified) 3.43 6. Netherlands 2.47
Industrial Co., Ltd. (Japan)
7. Trend Micro Inc. (Japan) 1.24 7. Electronics (Semiconductors) 3.37 7. Mexico 2.42
8. Sony Corp. (Japan) 1.17 8. Retail (General Merchandise) 3.14 8. Australia 2.04
9. VERITAS Software Corp. (U.S) 1.16 9. Retail (Food Chains) 2.98 9. Hong Kong 1.95
10. Mannesmann A.G. (Germany) 1.14 10. Insurance (Multi-Line) 2.60 10. Switzerland 1.78
The fund's portfolio is subject to change, and there is no assurance that the fund will continue to hold any
particular security.
===========================================================================================================================
</TABLE>
We dramatically increased the fund's Japanese holdings from 2.88% to 17.16%
over the reporting period. The fund focused on Japanese companies with a global
reach, including those in the technology, telecommunications and electronics
industries.
WHAT STOCKS DID YOU LIKE?
At the end of the fiscal year, our largest holding was Nortel, a Canadian
telecommunications equipment maker. The company has shown tremendous growth
this year, taking on competitors Lucent and Cisco.
Several of our top European holdings are involved in multi-billion-dollar
mergers. Carrefour, Europe's No. 1 retailer, merged with another French
retailer, Promodes Group, earlier this year. With 8,800 stores in 26 countries
and revenue of $65 billion, Carrefour poses a major challenge to Wal-Mart's
expansion plans for Europe, Latin America and Asia. Orange, a mobile
communications provider in the United Kingdom, France and Germany, has agreed to
merge with German conglomerate Mannesmann. After the close of the reporting
period, U.K.-based Vodafone AirTouch made a hostile bid for Mannesmann. If it is
successful, Vodafone has indicated it may undo Mannesmann's pending merger with
Orange. This activity demonstrates how competitive the European cellular market
has become.
WHAT JAPANESE STOCKS DID YOU FAVOR?
Our top Japanese holdings include NTT Mobile, Matsushita and Sony. Also known
as NTT DoCoMo (DoCoMo means "anywhere"), NTT Mobile is Japan's leading wireless
phone company. With about 27 million subscribers, the company has about 57% of
the Japanese market. We expect NTT Mobile's value to continue to rise with the
growth of wireless devices in Japan.
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, but with the increased
strength of Europe and Asia, we believe growth in the future will be more
balanced.
We're encouraged by signs of economic growth in Japan, but much-needed
corporate restructuring has yet to occur on a wide scale. Although investor
confidence in Japan has returned, we remain cautious. We will continue to rely
on a strict analysis of company fundamentals before deciding to buy Japanese
securities.
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.
-------------------------------------
WE BELIEVE WE HAVE REACHED A PERIOD
OF SYNCHRONIZED GLOBAL EXPANSION.
THE UNITED STATES DROVE THE MARKETS
FOR THE PAST TWO YEARS, BUT WITH
THE INCREASED STRENGTH OF EUROPE AND
ASIA, WE BELIEVE GROWTH IN THE FUTURE
WILL BE MORE BALANCED.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM GLOBAL GROWTH FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
ABOUT THIS CHART
The chart compares your fund's Class A and Class B shares to benchmark indexes.
It is intended to give you an idea of how your fund performed compared to these
benchmarks over the period 9/15/94-10/31/99. (Please note that the performance
results for the indexes are for the period 9/30/94-10/31/99.) Fund performance
shown in the chart includes expenses and management fees. Class A share
performance reflects the deduction of the maximum sales charge; Class B share
performance reflects deduction of the applicable contingent deferred sales
charge. It is important to understand the difference between your fund and an
index. An index measures performance of a hypothetical portfolio. A market
index is not managed, incurring no sales charges, expenses or fees. If you
could buy all the securities that make up a market index, you would incur
expenses that would affect the return on your investment.
Since the last reporting period, AIM Global Growth Fund has elected to use
the MSCI All Country World Index as its benchmark instead of the MSCI World
Index. The new index more closely resembles the securities in which the fund
invests. The fund will no longer measure its performance against the MSCI World
Index. Because this is the first reporting period since we have adopted the new
index, SEC guidelines require that we compare the fund's performance to both
the old and the new index.
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL GROWTH FUND VS. BENCHMARK INDEXES
9/15/94-10/31/99
Mountain Chart
<TABLE>
<CAPTION>
================================================================================================
AIM GLOBAL GROWTH AIM GLOBAL GROWTH MSCI WORLD MSCI ALL
FUND, CLASS B SHARES FUND, CLASS A SHARES INDEX COUNTRY WORLD INDEX
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9/94 $9,830 $9,362 $10,000 $9,794
10/94 10,220 9,743 10,010 10,235
10/95 12,260 11,738 10,959 10,964
10/96 14,295 13,764 12,745 12,675
10/97 16,676 16,139 14,883 14,670
10/98 18,308 17,822 17,153 16,542
10/99 24,377 23,958 22,010 20,911
Past performance cannot guarantee comparable future results.
Source: Lipper, Inc.
================================================================================================
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/99, including sales charges
===============================================================================
CLASS A SHARES
Inception (9/15/94) 18.58%
5 years 18.56
1 year 28.06*
* 34.43% excluding sales charges
CLASS B SHARES
Inception (9/15/94) 18.98%
5 years 18.89
1 year 28.70*
* 33.70% excluding sales charges
CLASS C SHARES
Inception (8/4/97) 15.58%
1 year 32.69*
* 33.69% excluding sales charges
===============================================================================
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class C shares will differ from Class A and B
shares due to differing fees and expenses. For fund performance calculations
and descriptions of indexes cited on this page, please refer to the inside
front cover.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
AIM GLOBAL GROWTH FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-37.74%
BANKS (MONEY CENTER)-0.54%
Chase Manhattan Corp. (The) 52,500 $ 4,587,187
- --------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.63%
Adelphia Communications Corp.(a) 64,500 3,523,312
- --------------------------------------------------------------
AT&T Corp. - Liberty Media
Group-Class A(a) 107,300 4,258,469
- --------------------------------------------------------------
Clear Channel Communications,
Inc.(a) 57,000 4,581,375
- --------------------------------------------------------------
Comcast Corp.-Class A 115,700 4,873,862
- --------------------------------------------------------------
Infinity Broadcasting Corp.-Class
A(a) 145,000 5,011,562
- --------------------------------------------------------------
22,248,580
- --------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-2.85%
Comverse Technology, Inc.(a) 61,800 7,014,300
- --------------------------------------------------------------
General Instrument Corp.(a) 91,500 4,923,844
- --------------------------------------------------------------
JDS Uniphase Corp.(a) 47,192 7,875,165
- --------------------------------------------------------------
Motorola, Inc. 43,600 4,248,275
- --------------------------------------------------------------
24,061,584
- --------------------------------------------------------------
COMPUTERS (HARDWARE)-1.48%
Dell Computer Corp.(a) 93,500 3,751,687
- --------------------------------------------------------------
Sun Microsystems, Inc.(a) 83,000 8,782,437
- --------------------------------------------------------------
12,534,124
- --------------------------------------------------------------
COMPUTERS (NETWORKING)-1.11%
Cisco Systems, Inc.(a) 126,900 9,390,600
- --------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.71%
EMC Corp.(a) 131,400 9,592,200
- --------------------------------------------------------------
Lexmark International Group,
Inc.-Class A(a) 62,000 4,839,875
- --------------------------------------------------------------
14,432,075
- --------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-4.82%
America Online, Inc.(a)(b) 64,000 8,300,000
- --------------------------------------------------------------
Intuit, Inc.(a) 127,500 3,713,437
- --------------------------------------------------------------
Microsoft Corp.(a) 87,600 8,108,475
- --------------------------------------------------------------
Novell, Inc.(a) 188,500 3,781,781
- --------------------------------------------------------------
Unisys Corp.(a) 108,000 2,619,000
- --------------------------------------------------------------
VERITAS Software Corp.(a) 91,000 9,816,625
- --------------------------------------------------------------
Yahoo! Inc.(a) 24,500 4,387,031
- --------------------------------------------------------------
40,726,349
- --------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.17%
Conexant Systems, Inc.(a) 53,000 4,948,875
- --------------------------------------------------------------
Sanmina Corp.(a) 55,000 4,953,438
- --------------------------------------------------------------
9,902,313
- --------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-2.94%
Intel Corp. 116,000 8,982,750
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (SEMICONDUCTORS)-(CONTINUED)
LSI Logic Corp.(a) 71,000 $ 3,776,313
- --------------------------------------------------------------
Texas Instruments, Inc. 62,000 5,564,500
- --------------------------------------------------------------
Xilinx, Inc.(a) 82,500 6,486,563
- --------------------------------------------------------------
24,810,126
- --------------------------------------------------------------
ENTERTAINMENT-0.63%
Time Warner Inc. 76,500 5,331,094
- --------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.57%
Fannie Mae 100,000 7,075,000
- --------------------------------------------------------------
Freddie Mac 115,000 6,217,188
- --------------------------------------------------------------
13,292,188
- --------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-3.43%
American Home Products Corp. 125,500 6,557,375
- --------------------------------------------------------------
Bristol-Myers Squibb Co. 113,600 8,725,900
- --------------------------------------------------------------
Johnson & Johnson 84,000 8,799,000
- --------------------------------------------------------------
Warner-Lambert Co. 62,000 4,948,375
- --------------------------------------------------------------
29,030,650
- --------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-1.04%
Pfizer, Inc. 222,900 8,804,550
- --------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-0.90%
Guidant Corp. 154,400 7,623,500
- --------------------------------------------------------------
INSURANCE (MULTI-LINE)-1.08%
American International Group, Inc. 88,750 9,135,703
- --------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-0.57%
Morgan Stanley, Dean Witter,
Discover & Co. 44,000 4,853,750
- --------------------------------------------------------------
LODGING-HOTELS-0.48%
Carnival Corp. 90,600 4,031,700
- --------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-0.80%
Tyco International Ltd. 170,000 6,789,375
- --------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-1.56%
Home Depot, Inc. (The) 114,000 8,607,000
- --------------------------------------------------------------
Lowe's Companies, Inc. 82,900 4,559,500
- --------------------------------------------------------------
13,166,500
- --------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-0.49%
Best Buy Co., Inc.(a) 75,200 4,178,300
- --------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.31%
Kroger Co. (The)(a) 125,000 2,601,563
- --------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (GENERAL MERCHANDISE)-2.15%
Costco Wholesale Corp.(a) 54,000 $ 4,336,875
- --------------------------------------------------------------
Dayton Hudson Corp. 68,900 4,452,663
- --------------------------------------------------------------
Wal-Mart Stores, Inc. 164,900 9,347,769
- --------------------------------------------------------------
18,137,307
- --------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-0.72%
Gap, Inc. (The) 75,750 2,812,219
- --------------------------------------------------------------
Intimate Brands, Inc. 79,170 3,245,970
- --------------------------------------------------------------
6,058,189
- --------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-0.63%
Outdoor Systems, Inc.(a) 125,000 5,296,875
- --------------------------------------------------------------
SERVICES (DATA PROCESSING)-0.74%
Fiserv, Inc.(a) 195,000 6,240,000
- --------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-0.57%
Nextel Communications, Inc.-Class
A(a) 55,600 4,792,025
- --------------------------------------------------------------
TELECOMMUNICATIONS (LONG DISTANCE)-0.82%
MCI WorldCom, Inc.(a)(b) 80,400 6,899,325
- --------------------------------------------------------------
Total Domestic Common Stocks
(Cost $227,333,243) 318,955,532
- --------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-54.81%
AUSTRALIA-2.04%
AMP Ltd. (Insurance-Life/Health) 201,840 2,053,107
- --------------------------------------------------------------
Austar United Communications Ltd.
(Broadcasting-Television, Radio,
& Cable)(a) 514,100 1,672,516
- --------------------------------------------------------------
Brambles Industries Ltd. (Air
Freight) 102,000 2,869,402
- --------------------------------------------------------------
Cable & Wireless Optus Ltd.
(Telephone)(a) 701,800 1,607,165
- --------------------------------------------------------------
Foster's Brewing Group Ltd.
(Beverages- Alcoholic) 950,000 2,525,829
- --------------------------------------------------------------
TABCORP Holdings Ltd. (Leisure Time
Products) 361,000 2,289,002
- --------------------------------------------------------------
Telstra Corp. Ltd. (Telephone)(a) 1,315,900 4,222,245
- --------------------------------------------------------------
17,239,266
- --------------------------------------------------------------
BELGIUM-0.27%
UCB S.A.
(Manufacturing-Diversified) 60,300 2,248,899
- --------------------------------------------------------------
BRAZIL-0.96%
Embratel Participacoes S.A.-ADR
(Telephone) 134,100 1,726,538
- --------------------------------------------------------------
Petroleo Brasileiro
S.A.-Petrobras-Pfd. (Oil &
Gas-Exploration & Production) 21,286 3,385,834
- --------------------------------------------------------------
Tele Centro Sul Participacoes
S.A.-ADR (Telephone) 28,900 1,726,775
- --------------------------------------------------------------
Telesp Participacoes S.A.-ADR
(Telephone) 79,200 1,282,050
- --------------------------------------------------------------
8,121,197
- --------------------------------------------------------------
CANADA-3.08%
BCE, Inc. (Telephone) 110,330 6,639,434
- --------------------------------------------------------------
Bombardier Inc. (Aerospace/Defense) 111,360 1,962,774
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Loblaw Co. Ltd. (Retail-Food
Chains) 43,000 $ 1,001,766
- --------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 218,092 13,508,073
- --------------------------------------------------------------
Toronto-Dominion Bank (The)
(Banks-Regional) 126,440 2,898,424
- --------------------------------------------------------------
26,010,471
- --------------------------------------------------------------
FINLAND-1.34%
Nokia Oyj (Communications
Equipment) 99,200 11,355,777
- --------------------------------------------------------------
FRANCE-6.33%
Accor S.A. (Lodging-Hotels) 13,000 2,926,803
- --------------------------------------------------------------
Alstom (Engineering & Construction) 23,650 716,572
- --------------------------------------------------------------
AXA (Insurance-Multi-Line) 63,080 8,899,320
- --------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 69,560 6,110,580
- --------------------------------------------------------------
Carrefour Supermarche S.A.
(Retail-Food Chains) 70,020 12,964,959
- --------------------------------------------------------------
Pinault-Printemps-Redoute S.A.
(Retail-General Merchandise) 25,320 4,829,452
- --------------------------------------------------------------
PSA Peugeot Citreon (Automobiles) 10,000 1,919,991
- --------------------------------------------------------------
Renault S.A. (Automobiles) 35,000 1,811,630
- --------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting- Television, Radio
& Cable) 17,170 5,382,982
- --------------------------------------------------------------
Total Fina S.A.-Class B (Oil &
Gas-Refining & Marketing) 58,469 7,904,363
- --------------------------------------------------------------
53,466,652
- --------------------------------------------------------------
GERMANY-1.62%
Deutsche Bank A.G. (Banks-Major
Regional)(a) 22,000 1,578,496
- --------------------------------------------------------------
EM.TV & Merchandising A.G.
(Broadcasting- Television, Radio
& Cable) 50,000 2,472,318
- --------------------------------------------------------------
EM.TV & Merchandising A.G.-Rts.,
expiring 11/12/99
(Broadcasting-Television, Radio &
Cable) 50,000 526
- --------------------------------------------------------------
Mannesmann A.G.
(Machinery-Diversified) 61,060 9,603,607
- --------------------------------------------------------------
13,654,947
- --------------------------------------------------------------
HONG KONG-1.95%
China Telecom Ltd.
(Telecommunications-
Cellular/Wireless)(a) 1,496,000 5,113,065
- --------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 5,219,000 3,695,176
- --------------------------------------------------------------
Dao Heng Bank Group Ltd.
(Banks-Regional)(a) 828,000 3,762,619
- --------------------------------------------------------------
Hutchison Whampoa Ltd. (Retail-Food
Chains) 392,000 3,936,098
- --------------------------------------------------------------
16,506,958
- --------------------------------------------------------------
INDONESIA-0.11%
Gulf Indonesia Resources Ltd. (Oil-
International Integrated)(a) 122,200 969,963
- --------------------------------------------------------------
IRELAND-0.58%
Bank of Ireland (Banks-Major
Regional) 180,484 1,410,795
- --------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
IRELAND-(CONTINUED)
CRH PLC (Construction-Cement &
Aggregates) 186,000 $ 3,512,479
- --------------------------------------------------------------
4,923,274
- --------------------------------------------------------------
ITALY-0.91%
Banca Popolare di Brescia
(Banks-Regional) 143,000 6,055,337
- --------------------------------------------------------------
Credito Italiano S.p.A.
(Banks-Major Regional) 345,200 1,616,096
- --------------------------------------------------------------
7,671,433
- --------------------------------------------------------------
JAPAN-17.16%
Advantest Corp.
(Electronics-Instrumentation) 46,900 7,062,779
- --------------------------------------------------------------
Alps Electric Co., Ltd.
(Electronics-Component
Distributors) 207,000 4,010,743
- --------------------------------------------------------------
DDI Corp. (Telecommunications) 6,300 6,888,878
- --------------------------------------------------------------
Hirose Electric Co. Ltd.
(Electronics- Component
Distributors) 36,800 6,420,718
- --------------------------------------------------------------
Hoya Corp.
(Manufacturing-Specialized) 50,000 3,596,950
- --------------------------------------------------------------
Ibiden Co., Ltd.
(Electronics-Component
Distributors) 153,000 2,568,222
- --------------------------------------------------------------
Kirin Brewery Co., Ltd.
(Beverages-Alcoholic) 361,000 4,134,420
- --------------------------------------------------------------
Kyocera Corp.
(Electronics-Component
Distributors) 57,300 5,496,139
- --------------------------------------------------------------
Matsushita Communication Industrial
Co., Ltd. (Telephone) 63,000 10,587,118
- --------------------------------------------------------------
Murata Manufacturing Co., Ltd.
(Electronics- Component
Distributors) 65,000 8,354,515
- --------------------------------------------------------------
NEC Corp. (Computers-Hardware) 358,000 7,245,504
- --------------------------------------------------------------
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long
Distance) 6,080 9,330,967
- --------------------------------------------------------------
NTT Data Corp. (Computers-Software
& Services) 3,180 5,032,852
- --------------------------------------------------------------
NTT Mobile Communications Network,
Inc.
(Telecommunications-Cellular/Wireless) 4,250 11,292,024
- --------------------------------------------------------------
Okuma Corp. (Hardware & Tools) 582,000 2,372,548
- --------------------------------------------------------------
Omron Corp. (Electronics-Component
Distributors) 13,000 271,833
- --------------------------------------------------------------
Orix Corp. (Financial-Diversified) 12,600 1,692,005
- --------------------------------------------------------------
Ricoh Co., Ltd. (Office Equipment &
Supplies) 328,000 5,351,571
- --------------------------------------------------------------
Rohm Co. Ltd.
(Electronics-Component
Distributors) 15,000 3,366,745
- --------------------------------------------------------------
Sanix Inc. (Services-Commercial &
Consumer) 51,100 4,754,400
- --------------------------------------------------------------
Sharp Corp. (Electrical Equipment) 185,000 2,945,662
- --------------------------------------------------------------
Sony Corp. (Electronics-Component
Distributors) 63,300 9,872,505
- --------------------------------------------------------------
Takeda Chemical Industries Ltd.
(Health Care- Drugs-Generic &
Other) 94,000 5,400,796
- --------------------------------------------------------------
Tokyo Electron Ltd. (Electronics-
Semiconductors) 44,000 3,654,885
- --------------------------------------------------------------
Trend Micro Inc.
(Computers-Software &
Services)(a) 52,650 10,453,743
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-(CONTINUED)
Ushio, Inc. (Electronics-Component
Distributors) 235,000 $ 2,891,996
- --------------------------------------------------------------
145,050,518
- --------------------------------------------------------------
MEXICO-2.42%
Cifra S.A. de C.V. (Retail-General
Merchandise)(a) 2,327,000 3,557,660
- --------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages- Non-Alcoholic) 174,900 2,426,738
- --------------------------------------------------------------
Fomento Economico Mexicano, S.A. de
C.V.-ADR
(Beverages-Non-Alcoholic) 111,590 3,661,547
- --------------------------------------------------------------
Grupo Modelo S.A. de C.V.-Series C
(Beverages-Alcoholic) 445,440 1,088,699
- --------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 105,200 4,471,000
- --------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.-Class A (Paper & Forest
Products) 518,000 1,659,324
- --------------------------------------------------------------
Telefonos de Mexico S.A.-ADR
(Telephone) 42,500 3,633,750
- --------------------------------------------------------------
20,498,718
- --------------------------------------------------------------
NETHERLANDS-2.47%
Aegon N.V. (Insurance Brokers) 52,200 4,818,968
- --------------------------------------------------------------
Equant N.V.
(Computers-Networking)(a) 8,500 827,174
- --------------------------------------------------------------
Getronics N.V. (Computers-Software
& Services) 47,560 2,371,683
- --------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V. (Electrical
Equipment) 46,560 4,775,886
- --------------------------------------------------------------
Koninklijke Ahold N.V. (Retail-Food
Chains) 152,200 4,675,563
- --------------------------------------------------------------
Verenigde Nederlandse
Uitgeversbedrijven Verenigd Bezit
(Publishing) 101,830 3,444,238
- --------------------------------------------------------------
20,913,512
- --------------------------------------------------------------
NEW ZEALAND-0.30%
Auckland International Airport Ltd.
(Airlines) 1,800,000 2,502,004
- --------------------------------------------------------------
SINGAPORE-1.44%
Allgreen Properties Ltd.
(Homebuilding)(a) 1,020,000 864,979
- --------------------------------------------------------------
DBS Group Holdings Ltd.
(Banks-Money Center)(a) 280,283 3,169,135
- --------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction) 782,600 2,127,475
- --------------------------------------------------------------
NatSteel Ltd. (Iron & Steel) 1,553,000 2,596,584
- --------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing- Newspapers) 200,000 3,428,159
- --------------------------------------------------------------
12,186,332
- --------------------------------------------------------------
SOUTH KOREA-1.35%
Korea Electric Power Corp.-ADR
(Electric Companies) 131,000 2,063,250
- --------------------------------------------------------------
Korea Telecom Corp.-ADR
(Telephone)(a) 122,200 4,307,550
- --------------------------------------------------------------
L.G. Chemical Ltd.
(Chemicals-Specialty) 167,000 5,053,856
- --------------------------------------------------------------
11,424,656
- --------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SPAIN-1.04%
Banco Popular Espanol S.A.
(Banks-Major Regional) 26,000 $ 1,750,611
- --------------------------------------------------------------
Telefonica S.A. (Telephone)(a) 430,380 7,081,499
- --------------------------------------------------------------
8,832,110
- --------------------------------------------------------------
SWEDEN-0.66%
Hennes & Mauritz A.B.-Class B
(Retail- Specialty-Apparel) 210,640 5,596,406
- --------------------------------------------------------------
SWITZERLAND-1.78%
ABB Ltd. (Electrical Equipment)(a) 32,420 3,263,901
- --------------------------------------------------------------
Adecco S.A. (Services-Commercial &
Consumer) 6,600 3,999,738
- --------------------------------------------------------------
Compagnie Financiere Richemont A.G.
(Tobacco) 2,000 3,819,768
- --------------------------------------------------------------
Zurich Allied A.G.
(Insurance-Multi-Line) 6,960 3,939,517
- --------------------------------------------------------------
15,022,924
- --------------------------------------------------------------
UNITED KINGDOM-7.00%
Barclays PLC (Banks-Major Regional) 225,500 6,906,971
- --------------------------------------------------------------
BP Amoco PLC (Oil & Gas-Refining &
Marketing) 220,000 2,135,850
- --------------------------------------------------------------
British Sky Broadcasting Group PLC
(Broadcasting-Television, Radio &
Cable) 440,000 4,727,445
- --------------------------------------------------------------
British Telecommunications PLC
(Communications Equipment) 116,000 2,104,547
- --------------------------------------------------------------
Compass Group PLC
(Services-Commercial & Consumer) 288,800 3,095,801
- --------------------------------------------------------------
General Electric Co. PLC
(Manufacturing- Diversified) 367,100 3,992,477
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Granada Group PLC (Leisure
Time-Products) 270,000 $ 2,135,193
- --------------------------------------------------------------
Hays PLC (Services-Commercial &
Consumer) 461,300 5,282,419
- --------------------------------------------------------------
Invensys PLC (Electronics-Component
Distributors) 290,000 1,425,599
- --------------------------------------------------------------
Orange PLC (Telephone)(a) 450,300 11,230,931
- --------------------------------------------------------------
Provident Financial PLC (Consumer
Finance) 202,478 2,262,015
- --------------------------------------------------------------
Shell Transport & Trading Co. (Oil-
International Integrated) 458,000 3,512,735
- --------------------------------------------------------------
Vodafone AirTouch PLC
(Telecommunications-
Cellular/Wireless) 1,361,500 6,334,791
- --------------------------------------------------------------
WPP Group PLC
(Services-Advertising/ Marketing) 366,600 3,981,012
- --------------------------------------------------------------
59,127,786
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$332,274,553) 463,323,803
- --------------------------------------------------------------
MONEY MARKET FUNDS-6.14%
STIC Liquid Assets Portfolio(c) 25,959,462 25,959,462
- --------------------------------------------------------------
STIC Prime Portfolio(c) 25,959,462 25,959,462
- --------------------------------------------------------------
Total Money Market Funds (Cost
$51,918,924) 51,918,924
- --------------------------------------------------------------
TOTAL INVESTMENTS-98.69% 834,198,259
- --------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-1.31% 11,052,814
- --------------------------------------------------------------
NET ASSETS-100.00% $845,251,073
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Pfd. - Preferred
Rts. - Rights
Notes to Schedule of Investments:
(a) Non-Income producing security.
(b) A portion of this security is subject to call options written. See Note 7.
(c) The security shares the same investment advisor as the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$611,526,720) $834,198,259
- -------------------------------------------------------
Foreign currencies, at value (cost
$13,236,307) 13,245,860
- -------------------------------------------------------
Receivables for:
Investments sold 8,377,903
- -------------------------------------------------------
Capital stock sold 1,986,057
- -------------------------------------------------------
Dividends and interest 1,081,214
- -------------------------------------------------------
Investment for deferred compensation plan 23,205
- -------------------------------------------------------
Other assets 38,824
- -------------------------------------------------------
Total assets 858,951,322
- -------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 8,594,115
- -------------------------------------------------------
Capital stock reacquired 1,016,512
- -------------------------------------------------------
Deferred compensation 23,205
- -------------------------------------------------------
Options written (premiums received
$1,753,505) 2,674,700
- -------------------------------------------------------
Accrued advisory fees 581,419
- -------------------------------------------------------
Accrued administrative services fees 10,970
- -------------------------------------------------------
Accrued directors' fees 2,400
- -------------------------------------------------------
Accrued distribution fees 612,902
- -------------------------------------------------------
Accrued transfer agent fees 223,736
- -------------------------------------------------------
Accrued operating expenses (39,710)
- -------------------------------------------------------
Total liabilities 13,700,249
- -------------------------------------------------------
Net assets applicable to shares
outstanding $845,251,073
=======================================================
NET ASSETS:
Class A $388,549,182
=======================================================
Class B $425,345,431
=======================================================
Class C $ 31,356,460
=======================================================
CAPITAL STOCK, $0.001 PAR VALUE PER
SHARE:
Class A:
Authorized 200,000,000
- -------------------------------------------------------
Outstanding 16,580,603
=======================================================
Class B:
Authorized 200,000,000
- -------------------------------------------------------
Outstanding 18,669,410
=======================================================
Class C:
Authorized 200,000,000
- -------------------------------------------------------
Outstanding 1,375,854
=======================================================
Class A:
Net asset value and redemption price
per share $ 23.43
- -------------------------------------------------------
Offering price per share:
(Net asset value $23.43
divided by 95.25%) $ 24.60
=======================================================
Class B:
Net asset value and offering price per
share $ 22.78
=======================================================
Class C:
Net asset value and offering price per
share $ 22.79
=======================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $677,229 foreign
withholding tax) $ 5,811,440
- --------------------------------------------------------
Interest 1,816,133
- --------------------------------------------------------
Total investment income 7,627,573
- --------------------------------------------------------
EXPENSES:
Advisory fees 5,898,665
- --------------------------------------------------------
Administrative services fees 97,142
- --------------------------------------------------------
Custodian fees 341,569
- --------------------------------------------------------
Directors' fees 12,734
- --------------------------------------------------------
Distribution fees -- Class A 1,585,224
- --------------------------------------------------------
Distribution fees -- Class B 3,564,027
- --------------------------------------------------------
Distribution fees -- Class C 205,127
- --------------------------------------------------------
Transfer agent fees -- Class A 708,552
- --------------------------------------------------------
Transfer agent fees -- Class B 982,114
- --------------------------------------------------------
Transfer agent fees -- Class C 66,129
- --------------------------------------------------------
Other 237,509
- --------------------------------------------------------
Total expenses 13,698,792
- --------------------------------------------------------
Less:
Expenses paid indirectly (12,008)
- --------------------------------------------------------
Net expenses 13,686,784
- --------------------------------------------------------
Net investment income (loss) (6,059,211)
- --------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT
SECURITIES, FOREIGN CURRENCIES, FUTURES AND OPTION
CONTRACTS:
Net realized gain (loss) from:
Investment securities 63,517,124
- --------------------------------------------------------
Foreign currencies 162,721
- --------------------------------------------------------
Forward currency contacts 81,453
- --------------------------------------------------------
Futures contracts 2,042,833
- --------------------------------------------------------
Options contracts written (1,820,509)
- --------------------------------------------------------
63,983,622
- --------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 142,665,744
- --------------------------------------------------------
Foreign currencies (114,912)
- --------------------------------------------------------
Futures contracts (797,175)
- --------------------------------------------------------
Options contracts written (921,195)
- --------------------------------------------------------
140,832,462
- --------------------------------------------------------
Net gain from investment securities,
foreign currencies, futures and
option contracts 204,816,084
- --------------------------------------------------------
Net increase in net assets resulting from
operations $198,756,873
========================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
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) $ (6,059,211) $ (2,809,816)
- -------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies, futures and option contracts 63,983,622 18,919,692
- -------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies, futures and option
contracts 140,832,462 20,734,353
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 198,756,873 36,844,229
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (6,185,053) (4,566,706)
- -------------------------------------------------------------------------------------------
Class B (7,892,012) (5,964,749)
- -------------------------------------------------------------------------------------------
Class C (358,333) (47,034)
- -------------------------------------------------------------------------------------------
Share transactions-net:
Class A 84,229,840 27,194,800
- -------------------------------------------------------------------------------------------
Class B 49,286,118 44,408,521
- -------------------------------------------------------------------------------------------
Class C 14,141,472 11,162,365
- -------------------------------------------------------------------------------------------
Net increase in net assets 331,978,905 109,031,426
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 513,272,168 404,240,742
- -------------------------------------------------------------------------------------------
End of period $845,251,073 $ 513,272,168
===========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $568,723,576 $ 416,466,146
- -------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (806,662) (1,238,947)
- -------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures and option
contracts 55,673,261 17,216,533
- -------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, futures and option contracts 221,660,898 80,828,436
- -------------------------------------------------------------------------------------------
$845,251,073 $ 513,272,168
===========================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global 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 to provide long-term growth of
capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of 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
10
<PAGE> 13
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 $6,491,496, undistributed net realized gains decreased by $11,091,496 and
paid-in capital increased by $4,600,000 as a result of differing book/tax
treatment of foreign currency transactions, equalization credits 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. Futures Contracts -- The Fund may purchase or sell futures contracts as a
hedge against changes in market conditions. Initial margin deposits required
upon entering into futures contracts are satisfied by the segregation of
specific securities as collateral for the account of the broker (the Fund's
agent in acquiring the futures position). During the period the futures
contracts are open, changes in the value of the contracts are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contracts at the end of each day's trading. Variation
margin payments are made or received depending upon whether unrealized gains
or losses are incurred. When the contracts are closed, the Fund recognizes a
realized gain or loss equal to the difference between the proceeds from, or
cost of, the closing transaction and the Fund's basis in the contract. Risks
include the possibility of an illiquid market and that a change in value of
the contracts may not correlate with changes in the value of the securities
being hedged.
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.
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. Covered Call Options -- The Fund may write call options, but only on a
covered basis; that is, the Fund will own the underlying security. Options
written by the Fund normally will have expiration dates between three and
nine months from the date written. The exercise price of a call option may be
below, equal to, or above the current market value of the underlying security
at the time the option is written. When the Fund writes a covered call
option, an amount equal to the premium received by the Fund is recorded as an
asset and an equivalent liability. The amount of the liability is
subsequently "marked-to-market" to reflect the current market value of the
option written. The current market value of a written option is the mean
between the last bid and asked prices on that day. If a written call option
expires on the stipulated expiration date, or if the Fund enters into a
closing purchase transaction, the Fund realizes a gain (or a loss if the
closing purchase transaction
11
<PAGE> 14
exceeds the premium received when the option was written) without regard to
any unrealized gain or loss on the underlying security, and the liability
related to such option is extinguished. If a written option is exercised, the
Fund realizes a gain or a loss from the sale of the underlying security and
the proceeds of the sale are increased by the premium originally received.
A call option gives the purchaser of such option the right to buy, and
the writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the call
option at any time during the option period. During the option period, in
return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for capital appreciation above the exercise price
should the market price of the underlying security increase, but has retained
the risk of loss should the price of the underlying security decline. During
the option period, the Fund may be required at any time to deliver the
underlying security against payment of the exercise price. This obligation is
terminated upon the expiration of the option period or at such earlier time
at which the Fund effects a closing purchase transaction by purchasing (at a
price which may be higher than that received when the call option was
written) a call option identical to the one originally written.
H. Put Options -- The Fund may purchase put options. By purchasing a put option,
the Fund obtains the right (but not the obligation) to sell the option's
underlying instrument at a fixed strike price. In return for this right, the
Fund pays an option premium. The option's underlying instrument may be a
security or a futures contract. Put options may be used by the Fund to hedge
securities it owns by locking in a minimum price at which the Fund can sell.
If security prices fall, the put option could be exercised to offset all or a
portion of the Fund's resulting losses. At the same time, because the maximum
the Fund has at risk is the cost of the option, purchasing put options does
not eliminate the potential for the Fund to profit from an increase in the
value of the securities hedged.
I. Bond Premiums -- It is the policy of the Fund not to amortize market premiums
on bonds for financial reporting purposes.
J. 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 0.85% of the first $1
billion of the Fund's average daily net assets, plus 0.80% of the Fund's average
daily net assets in excess of $1 billion.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. During the year ended October 31, 1999, AIM was
paid $97,142 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 $931,153 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 $1,585,224,
$3,564,027 and $205,127, respectively, as compensation under the Plans.
AIM Distributors received commissions of $195,571 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 $24,812 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 $3,064 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
$8,262 and $3,746, respectively, under expense offset arrangements. The effect
of the above arrangements resulted in a reduction of the Fund's total expenses
of $12,008 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.
12
<PAGE> 15
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.
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
$723,201,067 and $601,838,894, 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 $233,438,852
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (11,796,546)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $221,642,306
=========================================================
</TABLE>
Cost of investments for tax purposes is $612,555,953.
NOTE 7-OPTION CONTRACTS WRITTEN
Transactions in call options written during the year ended October 31, 1999 are
summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
-----------------------
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
--------- ---------
<S> <C> <C>
Beginning of period -- --
- --------------------------------------------------------- ---------- ----------
Written 2,084 $2,630,916
- --------------------------------------------------------- ---------- ----------
Closed (640) (877,411)
- --------------------------------------------------------- ---------- ----------
End of period 1,444 $1,753,505
========================================================= ========== ==========
</TABLE>
Open call option contracts written at October 31, 1999 were as follows:
<TABLE>
<CAPTION>
OCTOBER 31, UNREALIZED
CONTRACT STRIKE NUMBER OF PREMIUMS 1999 APPRECIATION
ISSUE MONTH PRICE CONTRACTS RECEIVED MARKET VALUE (DEPRECIATION)
- -------------------------------------------------- -------- ------ --------- -------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
American Online, Inc. Apr-00 $130 640 $1,214,039 $1,328,000 $(113,961)
- -------------------------------------------------- -------- ------ --------- ---------- ------------ --------------
MCI Worldcom, Inc. Dec-99 70 804 539,466 1,346,700 (807,234)
- -------------------------------------------------- -------- ------ --------- ---------- ------------ --------------
1,444 $1,753,505 $2,674,700 $(921,195)
================================================== ======== ====== ========= ========== ============ ==============
</TABLE>
NOTE 8-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 10,512,070 $ 211,966,029 14,601,141 $ 264,657,310
- -------------------------------------------------------------------------------------------------------------------------
Class B 4,204,829 83,820,436 4,603,864 82,487,081
- -------------------------------------------------------------------------------------------------------------------------
Class C 944,252 18,989,474 731,595 13,444,846
- -------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 314,736 5,777,296 265,883 4,315,756
- -------------------------------------------------------------------------------------------------------------------------
Class B 411,104 7,371,231 348,564 5,562,820
- -------------------------------------------------------------------------------------------------------------------------
Class C 37,653 676,846 2,787 44,837
- -------------------------------------------------------------------------------------------------------------------------
Issued in connection with acquisition*:
Class A 3,763,754 73,826,199 -- --
- -------------------------------------------------------------------------------------------------------------------------
Class B 1,833,252 35,102,320 -- --
- -------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (10,242,303) (207,339,684) (13,382,242) (241,778,266)
- -------------------------------------------------------------------------------------------------------------------------
Class B (3,903,318) (77,007,869) (2,513,498) (43,641,380)
- -------------------------------------------------------------------------------------------------------------------------
Class C (277,476) (5,524,848) (130,050) (2,327,318)
- -------------------------------------------------------------------------------------------------------------------------
7,598,553 $ 147,657,430 4,528,044 $ 82,765,686
=========================================================================================================================
</TABLE>
* The Fund acquired AIM Worldwide Growth Fund on February 12, 1999. The acquired
fund's net assets as of the closing date were $109,306,659. The net assets of
the Fund immediately prior to acquisition were $581,902,071.
13
<PAGE> 16
NOTE 9-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 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 $ 17.91 $ 16.65 $ 14.20 $ 12.32 $ 10.23
- ------------------------------------------------------------ -------- -------- -------- -------- -------
Income from investment operations:
Net investment income (loss) (0.10) (0.05) (0.04) (0.01) (0.02)
- ------------------------------------------------------------ -------- -------- -------- -------- -------
Net gains on securities (both realized and unrealized) 6.12 1.74 2.49 2.11 2.11
- ------------------------------------------------------------ -------- -------- -------- -------- -------
Total from investment operations 6.02 1.69 2.45 2.10 2.09
- ------------------------------------------------------------ -------- -------- -------- -------- -------
Less distributions:
Dividends from net investment income - - - - (0.004)
- ------------------------------------------------------------ -------- -------- -------- -------- -------
Distributions from net realized gains (0.50) (0.43) - (0.22) -
- ------------------------------------------------------------ -------- -------- -------- -------- -------
Total distributions (0.50) (0.43) - (0.22) (0.004)
- ------------------------------------------------------------ -------- -------- -------- -------- -------
Net asset value, end of period $ 23.43 $ 17.91 $ 16.65 $ 14.20 $ 12.32
============================================================ ======== ======== ======== ======== =======
Total return(a) 34.43% 10.43% 17.25% 17.26% 20.48%
============================================================ ======== ======== ======== ======== =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $388,549 $219,050 $178,917 $114,971 $23,754
============================================================ ======== ======== ======== ======== =======
Ratio of expenses to average net assets(b) 1.67%(c) 1.70% 1.76% 1.93% 2.12%
============================================================ ======== ======== ======== ======== =======
Ratio of net investment income (loss) to average net
assets(d) (0.57)%(c) (0.27)% (0.30)% (0.13)% (0.28)%
============================================================ ======== ======== ======== ======== =======
Portfolio turnover rate 93% 97% 96% 82% 79%
============================================================ ======== ======== ======== ======== =======
</TABLE>
(a) Does not deduct sales charges.
(b) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.94% and 2.98% for 1996-1995.
(c) Ratios are based on average net assets of $317,044,851.
(d) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.14)% and (1.14)% for 1996-1995.
<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 $ 17.52 $ 16.39 $ 14.05 $ 12.26 $ 10.22 $ 17.52 $ 16.39 $17.39
- ----------------------------------------- -------- -------- -------- -------- ------- ------- ------- ------
Income from investment operations:
Net investment income (loss) (0.23)(a) (0.15)(a) (0.11) (0.05) (0.04) (0.23)(a) (0.15)(a)(0.03)
- ----------------------------------------- -------- -------- -------- -------- ------- ------- ------- ------
Net gains (losses) on securities (both
realized and unrealized) 5.99 1.71 2.45 2.06 2.08 6.00 1.71 (0.97)
- ----------------------------------------- -------- -------- -------- -------- ------- ------- ------- ------
Total from investment operations 5.76 1.56 2.34 2.01 2.04 5.77 1.56 (1.00)
- ----------------------------------------- -------- -------- -------- -------- ------- ------- ------- ------
Less distributions:
Distributions from net realized gains (0.50) (0.43) - (0.22) - (0.50) (0.43) -
- ----------------------------------------- -------- -------- -------- -------- ------- ------- ------- ------
Net asset value, end of period $ 22.78 $ 17.52 $ 16.39 $ 14.05 $ 12.26 $ 22.79 $ 17.52 $16.39
========================================= ======== ======== ======== ======== ======= ======= ======= ======
Total return(b) 33.69% 9.78% 16.65% 16.60% 19.96% 33.69% 9.78% (5.75)%
========================================= ======== ======== ======== ======== ======= ======= ======= ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $425,345 $282,456 $224,225 $121,848 $17,157 $31,356 $11,765 $1,100
========================================= ======== ======== ======== ======== ======= ======= ======= ======
Ratio of expenses to average net assets 2.23%(c) 2.26% 2.29% 2.48%(d) 2.64%(d) 2.23%(c) 2.26% 2.29%(e)
========================================= ======== ======== ======== ======== ======= ======= ======= ======
Ratio of net investment income (loss) to
average net assets (1.13)%(c) (0.83)% (0.83)% (0.69)%(f) (0.79)%(f) (1.13)%(c) (0.83)% (0.83)%(e)
========================================= ======== ======== ======== ======== ======= ======= ======= ======
Portfolio turnover rate 93% 97% 96% 82% 79% 93% 97% 96%
========================================= ======== ======== ======== ======== ======= ======= ======= ======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are based on average net assets of $356,402,709 and $20,512,721 for
Class B and Class C, respectively.
(d) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
2.49% and 3.38% for 1996-1995.
(e) Annualized.
(f) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.69)% and (1.54)% for 1996-1995.
14
<PAGE> 17
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 AIM Global 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
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
15
<PAGE> 18
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Robert G. Alley Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Edgar M. Larsen Boston MA 02110
Chief Executive Officer Vice President
Texana Global, Inc.; COUNSEL TO THE FUND
Formerly Member Mary J. Benson
of the U.S. House of Representatives Assistant Vice President and Ballard Spahr
Assistant Treasurer Andrews & Ingersoll, LLP
Carl Frischling 1735 Market Street
Partner Sheri Morris Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and
Assistant Treasurer COUNSEL TO THE DIRECTORS
Robert H. Graham
President and Chief Executive Officer Renee A. Friedli Kramer, Levin, Naftalis & Frankel LLP
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis P. Michelle Grace
Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary DISTRIBUTOR
Commissioner, New York City Dept. for the
Aging; and member of the Board of Directors, 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>
16
<PAGE> 19
REQUIRED FEDERAL INCOME TAX INFORMATION
AIM Global Growth Fund distributed long-term capital gains of $19,035,398 during
the Fund's tax year ended October 31, 1999.
For the fiscal year ended October 31, 1999, the amount of income received by the
Fund from sources within foreign countries and possessions of the United States
was $0.1464 per share (representing a total of $5,361,377). The amount of taxes
paid by the Fund to such countries for the fiscal year ended October 31, 1999
was $0.0185 (representing a total of $677,229). The following table provides a
breakdown by country of ordinary income dividends and foreign taxes paid by the
Fund during the fiscal year ended October 31, 1999:
<TABLE>
<CAPTION>
GROSS FOREIGN
INCOME TAX PAID
COUNTRY % %
------- ------ --------
<S> <C> <C>
Australia................................................... 2.31% 0.59%
Argentina................................................... 2.00% 0.00%
Belgium..................................................... 0.26% 0.53%
Brazil...................................................... 1.62% 0.54%
Canada...................................................... 3.84% 6.18%
Denmark..................................................... 0.01% 0.00%
Finland..................................................... 1.50% 2.77%
France...................................................... 15.18% 27.76%
Germany..................................................... 1.73% 6.43%
Hong Kong................................................... 2.47% 0.00%
Ireland..................................................... 1.66% 1.84%
Italy....................................................... 1.75% 3.23%
Japan....................................................... 2.35% 6.77%
Mexico...................................................... 1.94% 1.24%
Netherlands................................................. 2.57% 4.41%
Norway...................................................... 0.06% 0.11%
Philippines................................................. 0.08% 0.18%
Portugal.................................................... 1.49% 3.19%
Singapore................................................... 1.80% 5.73%
Spain....................................................... 1.53% 2.77%
Sweden...................................................... 1.44% 2.64%
Switzerland................................................. 3.18% 6.78%
Taiwan...................................................... 0.00% 2.09%
United Kingdom.............................................. 13.79% 14.20%
------- -------
64.56% 99.98%
Nonqualifying............................................... 0.05% 0.02%
United States............................................... 35.39% 0.00%
------- -------
100.00% 100.00%
======= =======
</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 provided leadership
AIM Aggressive Growth Fund(1) AIM Money Market Fund in the mutual fund industry since 1976 and managed
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund approximately $120 billion in assets for more than
AIM Capital Development Fund 6.4 million shareholders, including individual
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS investors, corporate clients and financial
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund institutions, as of September 30, 1999.
AIM Large Cap Growth Fund AIM Asian Growth Fund
AIM Mid Cap Equity Fund AIM Developing Markets Fund The AIM Family of Funds--Registered Trademark--
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) is distributed nationwide, and AIM today is the
AIM Mid Cap Opportunities Fund AIM European Development Fund 10th-largest mutual fund complex in the United
AIM Select Growth Fund AIM International Equity Fund States in assets under management, according to
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund Strategic Insight, an independent mutual fund
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund monitor.
AIM Value Fund AIM New Pacific Growth Fund
AIM Weingarten Fund
GLOBAL GROWTH FUNDS
GROWTH & INCOME FUNDS AIM Global Aggressive Growth Fund
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. GLG-AR-1
