<PAGE> 1
ANNUAL REPORT / OCTOBER 31 1999
AIM INTERNATIONAL EQUITY FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
-------------------------------------
HUMAN ACHIEVEMENT BY TSING-FANG CHEN
FOR THIS STUDY IN MODERN ICONOGRAPHY, TSING-FANG CHEN
CREATED A MULTICULTURAL COLLAGE OF SYMBOLS REPRESENTING THE FINEST ACHIEVEMENTS
OF PEOPLE AROUND THE WORLD. TODAY, THE INTERNATIONAL MARKETPLACE HELPS PUT MANY
OF THE WORLD'S GREAT IDEAS INTO ACTION-IDEAS THAT COULD BECOME THE SYMBOLS OF
HUMAN ACHIEVEMENT FOR THE 21ST CENTURY.
-------------------------------------
AIM International Equity Fund is for shareholders who seek long-term growth of
capital. The fund invests in a diversified portfolio of international equity
securities of companies with strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM International Equity Fund's performance figures are historical, and
they reflect changes in net asset value and the reinvestment of all
distributions.
o Had fees and expenses not been waived, returns would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class
C share performance reflects the applicable contingent deferred sales
charge (CDSC) for the period involved. The CDSC on Class B shares declines
from 5% beginning at the time of purchase to 0% at the beginning of the
seventh year. The CDSC on Class C shares is 1% for the first year after
purchase. The performance of the fund's Class B and Class C shares will
differ from that of 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 calendar quarter-end), are as
follows: for Class A shares, one year 14.75%; five years, 10.37%; inception
(4/7/92), 12.78%. Class B shares, one year, 15.36%; five years, 10.46%;
inception (9/15/94), 9.98%. Class C shares, one year, 19.49%; inception,
5.64 %.
o During the fiscal year ended 10/31/99, Class A shares paid distributions of
$0.315 per share, and Class B and Class C shares paid distributions of
$0.2085 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 Lipper International Funds index represents an average of the
performance of the 30 largest international mutual funds. It is compiled by
Lipper, Inc., an independent mutual funds performance monitor. Results
shown reflect reinvestment of dividends.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (S&P 500) is
widely regarded by investors to be representative of the stock market in
general. Results shown assume the reinvestment of dividends.
o The unmanaged MSCI EAFE--Registered Trademark--(Europe, Australasia, and
the Far East) Index is a group of foreign securities tracked by Morgan
Stanley Capital International.
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 INTERNATIONAL EQUITY 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 INTERNATIONAL EQUITY FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
JAPANESE RALLY SPURS FUND PERFORMANCE
HOW DID AIM INTERNATIONAL EQUITY FUND PERFORM OVER THE FISCAL YEAR?
The fund produced strong results in the fiscal year ending October 31, 1999.
Class A shares reported a total annual return of 25.73%; Class B shares, 24.72%;
and Class C shares, 24.76%. These returns are at net asset value, which means
they do not include sales charges. The fund outperformed its peer group,
represented by the Lipper International Funds Index, which produced a 23.05%
total annual return. Net assets in the fund topped $3 billion as of October 31,
1999.
WHAT WERE THE MAJOR WORLDWIDE TRENDS OVER THE REPORTING PERIOD?
International equities recovered during the fiscal year. The index for
international stocks, the EAFE, gained 23.03% over the fiscal year compared with
the 25.66% rise in the S&P 500. Overseas stocks benefited from improving
investor expectations of economic growth and more favorable valuations.
TOTAL RETURN
10/31/98--10/31/99,
excluding sales charges
<TABLE>
<CAPTION>
================================================================================
<S> <C> <C> <C>
FUND FUND FUND LIPPER
CLASS A CLASS B CLASS C INT'L FUND
SHARES SHARES SHARES INDEX
- --------------------------------------------------------------------------------
25.73% 24.72% 24.76% 23.05%
================================================================================
</TABLE>
The Japanese stock market dominated the EAFE, especially near the end of the
reporting period. 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.
Japan's growth still depends on government spending. After the reporting
period closed, Japan poured another $67 billion into the economy, the ninth
stimulus package this decade. Because of this dependence on government
intervention, the fund was slow to return to Japan.
WHAT HAPPENED IN EUROPE?
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.
Given the healthy economic prospects for the region, we believe Europe's
large discount in equity valuations relative to the United States is likely to
narrow.
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, Taiwan 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?
Europe remains our largest regional concentration, making up about 48% of the
fund's total net assets. We favored growth stocks in the telecommunications,
media, financial, retail and computer-services industries.
Over the course of the fiscal year, we dramatically increased the fund's
Japanese holdings from 5.72% to 25.23%. We focused on Japanese companies with a
global reach, principally those in the technology, telecommunications and
electronics industries.
In Latin America, we focused on Mexico and in particular, consumer stocks
such as beverage makers and entertainment companies.
WHAT EUROPEAN STOCKS DID YOU LIKE?
We've been able to take advantage of the European merger activity by investing
in some of the major players, including Carrefour, Orange, Mannesmann and Total
Fina.
o Carrefour, Europe's No. 1 retailer, merged with another French retailer,
Pro-
-------------------------------------
WE BELIEVE WE HAVE REACHED A PERIOD OF SYNCHRONIZED GLOBAL EXPANSION. THE UNITED
STATES DROVE THE MARKETS FOR THE PAST TWO YEARS, BUT WITH EUROPE AND ASIA
GAINING STRENGTH, WE BELIEVE GROWTH IN THE FUTURE WILL BE MORE BALANCED.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM INTERNATIONAL EQUITY FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 10/31/99, based on total net assets
<TABLE>
<CAPTION>
======================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Carrefour Supermarche S.A. (France) 2.88% 1. Telephone 9.37%
2. Nokia Oyj (Finland) 2.44 2. Electronics (Component Distribution) 8.12
3. Orange PLC (United Kingdom) 2.36 3. Telecommunications (Cellular/Wireless) 7.36
4. NTT Mobile Communications Network, Inc. (Japan) 2.06 4. Communications Equipment 6.09
5. Nortel Networks Corp. (Canada) 2.02 5. Banks (Major Regional) 5.04
6. Matsushita Communication Industrial Co., Ltd. (Japan) 1.99 6. Retail (Food Chains) 4.95
7. Mannesmann A.G. (Germany) 1.95 7. Services (Commercial & Consumer) 4.11
8. Sony Corp. (Japan) 1.76 8. Computers (Software & Services) 3.88
9. Total Fina S.A., Class B (France) 1.67 9. Broadcasting (Television, Radio & Cable) 2.82
10. Nippon Telegraph & Telephone Corp. (Japan) 1.67 10. Banks (Regional) 2.64
======================================================================================================================
<CAPTION>
======================================================================================================================
TOP 10 COUNTRIES
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
1. Japan 25.23%
2. United Kingdom 14.12
3. France 12.32
4. Canada 6.33
5. Netherlands 4.68
6. Germany 4.16
7. Mexico 3.27
8. Hong Kong 3.19
9. Switzerland 3.11
10. Finland 2.98
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
======================================================================================================================
</TABLE>
modes 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.
o Orange, a mobile-communications provider in the United Kingdom, France and
Germany, has agreed to merge with German conglomerate Mannesmann. The deal
increases Mannesmann's share in the European cellular market, which is set
to double in the next two years.
o Total of France acquired Belgium's Petro-Fina in an $11 billion deal, then
made a $48.7 billion bid for French rival Elf Aquitaine. The mergers create
the world's fourth-largest oil company.
WHAT JAPANESE STOCKS DID YOU FAVOR?
Our top Japanese holdings include NTT Mobile, Sony and NTT Corp. 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 sewn up about
57% of the Japanese market. NTT Mobile is also participating in the surge in
Internet service in Japan, as commuters log on from their cellular phones while
they ride the trains to and from work. We expect NTT Mobile's value to continue
to rise with the growth of wireless devices in Japan.
Sony, a technology and entertainment conglomerate, is perhaps one of the best
examples of a company with a global reach and a global way of doing business.
The company plans to cut 10% of its worldwide workforce and eliminate 15 of its
70 plants by 2003, mainly to cut costs among its electronics businesses. Until
now, lay-offs have been virtually unheard of in Japan. NTT, the leading
telecommunications company in Japan, also plans to cut its workforce by about
10% over the next three years. These attempts to streamline costs should benefit
shareholders.
WHAT'S 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 Europe and Asia
gaining strength, 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. However, restructuring
at major Japanese companies including Sony, NTT and auto-makers Nissan and
Mitsubishi Motors indicate that key corporations are ready to cut costs and
become more efficient.
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.
See important fund and index disclosures inside front cover.
AIM INTERNATIONAL EQUITY FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM INTERNATIONAL EQUITY FUND VS. BENCHMARK INDEXES
4/7/92-10/31/99
in thousands
<TABLE>
<CAPTION>
================================================================================
AIM International MSCI EAFE Lipper International
Equity Fund, Index Fund Index
Class A shares
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
4/30/92 $ 9,715 $10,263 $10,047
10/31/92 9,610 9,600 9,822
10/31/93 13,200 12,870 13,501
10/31/94 14,644 14,351 14,863
10/31/95 15,411 14,284 14,808
10/31/96 17,844 16,087 16,359
10/31/97 19,884 18,238 17,116
10/31/98 21,099 19,085 18,767
10/31/99 26,529 23,483 23,090
Past performance cannot guarantee comparable future results.
================================================================================
</TABLE>
Source: Lipper, Inc.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/99, including sales charges
<TABLE>
<CAPTION>
================================================================================
CLASS A SHARES
- --------------------------------------------------------------------------------
<S> <C>
Inception (4/7/92) 13.75%
5 years 11.35
1 year 18.84*
*25.73% excluding sales charges
CLASS B SHARES
- --------------------------------------------------------------------------------
Inception (9/15/94) 11.41%
5 years 11.47
1 year 19.72*
*24.72% excluding CDSC
CLASS C SHARES
- --------------------------------------------------------------------------------
Inception (8/4/97) 8.97%
1 year 23.76*
*24.76 % excluding CDSC
================================================================================
</TABLE>
Your fund's total return includes sales charges, expenses, and management fees.
The performance of the fund's Class B and Class C shares will differ from Class
A 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.
ABOUT THIS CHART
The chart compares your fund's Class A shares to benchmark indexes. It is
intended to give you an idea of how your fund performed compared to the index
over the period 4/7/92-10/31/99. (Please note that performance results for the
indexes are for the period 4/30/92 to 10/31/99.) It is important to understand
the difference between your fund and an index. An index measures performance of
a hypothetical portfolio. A market index such as the EAFE 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.
AIM INTERNATIONAL EQUITY FUND
4
<PAGE> 7
ANNUAL REPORT / FOR CONSIDERATION
EVERY INVESTMENT PORTFOLIO
CAN BENEFIT FROM REGULAR CHECKUPS
[PICTURE]
CONSULTATION CHECKLIST
WHAT TO BRING:
o A list of all your assets, including real estate, life insurance, stocks
and bonds, and mutual funds
o A list of all your expenses, including likely future expenses
o A timetable of your financial goals, including an estimate of when you want
to retire
WHAT TO ASK:
o How can I estimate what my goals will cost?
o How much money do I need to invest, and how often?
o How many different kinds of investments do I need?
o How do I determine my risk tolerance?
o What are the possible risks of the investments you've suggested?
o What effect will these investments have on my taxes? What forms will I need
to file?
o How often do I need to revise my plan?
o How will I know how my investments are doing?
o How can I make changes to my plan?
o What kinds of communication will I get from you?
o Where can I get more information on what we've talked about?
o What do I need to do after this meeting?
Once a year, you and your financial advisor should meet to look ahead, review
investments and take another look at your goals, according to the Forum for
Investor Advice, a nonprofit association that educates investors about the role
and value of professional financial advisors.
Financial advisors can help you with every kind of financial goal, whether
that's saving up for a house, eliminating debt or saving for a comfortable
retirement. An advisor who knows you well and understands your needs can make
all the difference in your financial future. He or she can
o evaluate your total financial situation and help you formulate a
comprehensive financial plan;
o explain different types of investments, as well as their potential risks
and benefits;
o suggest an investment portfolio that can handle changing market conditions;
and
o help you make clear-headed decisions during market volatility.
GETTING THE MOST FROM YOUR PLANNING SESSION
Your advisor needs a complete picture of your financial status to prepare a
workable plan. Come prepared to talk about your financial situation, your goals
and your feelings about risk. And don't be afraid to ask lots of questions. Good
financial advisors take investor education seriously, so take advantage of their
store of knowledge and materials.
The Forum for Investor Advice suggests that you discuss the following with
your financial advisor:
o changes in the financial markets
o changes in your goals and current situation
o retirement plans
o estate planning
o outlook for the markets
Take along our checklist (left) to get you started on the path to good
planning. And don't forget to stay in touch. Maintaining regular contact with
your financial advisor can keep you moving toward your goals, especially when
your life circumstances or financial needs change.
AIM INTERNATIONAL EQUITY FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-94.17%
AUSTRALIA-1.53%
AMP Ltd. (Insurance-Life/Health) 1,352,000 $ 13,752,481
- ---------------------------------------------------------------
Brambles Industries Ltd. (Air
Freight) 383,000 10,774,322
- ---------------------------------------------------------------
Cable & Wireless Optus Ltd.
(Telephone)(a) 3,103,700 7,107,662
- ---------------------------------------------------------------
Telstra Corp. Ltd. (Telephone)(a) 4,774,700 15,320,279
- ---------------------------------------------------------------
46,954,744
- ---------------------------------------------------------------
BELGIUM-0.40%
UCB S.A.
(Manufacturing-Diversified) 328,600 12,255,194
- ---------------------------------------------------------------
BRAZIL-0.97%
Embratel Participacoes S.A.-ADR
(Telephone) 492,800 6,344,800
- ---------------------------------------------------------------
Petroleo Brasileiro
S.A.-Petrobras-Pfd. (Oil &
Gas-Exploration & Production) 78,071 12,418,632
- ---------------------------------------------------------------
Tele Centro Sul Participacoes
S.A.-ADR (Telephone) 105,840 6,323,940
- ---------------------------------------------------------------
Telesp Participacoes S.A.-ADR
(Telephone) 286,300 4,634,481
- ---------------------------------------------------------------
29,721,853
- ---------------------------------------------------------------
CANADA-6.33%
BCE, Inc. (Telephone) 672,500 40,469,673
- ---------------------------------------------------------------
Bombardier Inc.
(Aerospace/Defense) 1,403,100 24,730,317
- ---------------------------------------------------------------
Imasco Ltd.
(Manufacturing-Diversified) 351,100 9,419,582
- ---------------------------------------------------------------
Loblaw Co. Ltd. (Retail-Food
Chains) 275,000 6,406,643
- ---------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 1,000,714 61,981,723
- ---------------------------------------------------------------
Research in Motion Ltd.
(Communications Equipment)(a) 460,000 14,262,462
- ---------------------------------------------------------------
Rogers Communications, Inc.
(Telecommunications-Cellular/Wireless)(a) 675,000 13,662,297
- ---------------------------------------------------------------
Shaw Communications, Inc.
(Broadcasting- Television,
Radio & Cable) 376,000 11,428,377
- ---------------------------------------------------------------
Toronto-Dominion Bank (The)
(Banks- Regional) 510,200 11,695,476
- ---------------------------------------------------------------
194,056,550
- ---------------------------------------------------------------
FINLAND-2.98%
Nokia Oyj (Communications
Equipment) 654,342 74,904,859
- ---------------------------------------------------------------
Sonera Oyj
(Telecommunications-Cellular/
Wireless) 546,900 16,426,703
- ---------------------------------------------------------------
91,331,562
- ---------------------------------------------------------------
FRANCE-12.32%
Accor S.A. (Lodging-Hotels) 96,500 21,725,885
- ---------------------------------------------------------------
Altran Technologies, S.A.
(Services- Commercial &
Consumer) 93,200 31,954,840
- ---------------------------------------------------------------
AXA (Insurance-Multi-Line) 288,614 40,717,636
- ---------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 432,900 38,028,609
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FRANCE-(CONTINUED)
Carrefour Supermarche S.A.
(Retail-Food Chains) 477,200 $ 88,358,734
- ---------------------------------------------------------------
Pinault-Printemps-Redoute S.A.
(Retail- General Merchandise) 221,750 42,295,855
- ---------------------------------------------------------------
PSA Peugeot Citroen (Automobiles) 75,000 14,399,934
- ---------------------------------------------------------------
Renault S.A. (Automobiles) 254,000 13,147,258
- ---------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio
& Cable) 113,075 35,450,245
- ---------------------------------------------------------------
Total Fina S.A.-Class B (Oil &
Gas-Refining & Marketing) 379,262 51,271,770
- ---------------------------------------------------------------
377,350,766
- ---------------------------------------------------------------
GERMANY-4.16%
Deutsche Bank A.G. (Banks-Major
Regional)(a) 415,000 29,776,171
- ---------------------------------------------------------------
EM.TV & Merchandising A.G.
(Broadcasting- Television,
Radio & Cable) 187,500 9,271,191
- ---------------------------------------------------------------
EM.TV & Merchandising A.G.-Rts.,
expiring 11/12/99
(Broadcasting-Television, Radio
& Cable) 187,500 1,973
- ---------------------------------------------------------------
Mannesmann A.G.
(Machinery-Diversified) 380,200 59,798,417
- ---------------------------------------------------------------
Porsche A.G.-Pfd. (Automobiles) 10,500 28,610,500
- ---------------------------------------------------------------
127,458,252
- ---------------------------------------------------------------
HONG KONG-3.19%
China Telecom Ltd.
(Telecommunications-
Cellular/Wireless)(a) 9,104,000 31,115,871
- ---------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 30,166,000 21,358,247
- ---------------------------------------------------------------
Dao Heng Bank Group Ltd. (Banks-
Regional)(a) 3,880,000 17,631,596
- ---------------------------------------------------------------
Hutchison Whampoa Ltd.
(Retail-Food Chains) 2,744,000 27,552,683
- ---------------------------------------------------------------
97,658,397
- ---------------------------------------------------------------
INDONESIA-0.30%
Gulf Indonesia Resources Ltd.
(Oil- International
Integrated)(a) 1,172,000 9,302,750
- ---------------------------------------------------------------
IRELAND-1.44%
Bank of Ireland (Banks-Major
Regional) 2,344,400 18,325,545
- ---------------------------------------------------------------
CRH PLC (Construction-Cement &
Aggregates) 1,360,000 25,682,645
- ---------------------------------------------------------------
44,008,190
- ---------------------------------------------------------------
ITALY-1.63%
Banca Popolare di Brescia (Banks-
Regional) 887,000 37,560,026
- ---------------------------------------------------------------
Credito Italiano S.p.A.
(Banks-Major Regional) 2,620,100 12,266,319
- ---------------------------------------------------------------
49,826,345
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-25.23%
Advantest Corp. (Electronics-
Instrumentation) 235,900 $ 35,524,723
- ---------------------------------------------------------------
Alps Electric Co., Ltd.
(Electronics- Component
Distributors) 1,197,000 23,192,557
- ---------------------------------------------------------------
DDI Corp. (Telecommunications) 34,750 37,998,178
- ---------------------------------------------------------------
Hirose Electric Co. Ltd.
(Electronics- Component
Distributors) 206,800 36,081,646
- ---------------------------------------------------------------
Hoya Corp.
(Manufacturing-Specialized) 270,000 19,423,529
- ---------------------------------------------------------------
Ibiden Co., Ltd.
(Electronics-Component
Distributors) 820,000 13,764,328
- ---------------------------------------------------------------
Kirin Brewery Co., Ltd.
(Beverages- Alcoholic) 1,732,000 19,836,059
- ---------------------------------------------------------------
Kyocera Corp.
(Electronics-Component
Distributors) 314,000 30,118,460
- ---------------------------------------------------------------
Matsushita Communication
Industrial Co., Ltd.
(Telephone) 363,000 61,001,966
- ---------------------------------------------------------------
Murata Manufacturing Co., Ltd.
(Electronics- Component
Distributors) 367,000 47,170,879
- ---------------------------------------------------------------
NEC Corp. (Computers-Hardware) 2,088,000 42,258,693
- ---------------------------------------------------------------
Nippon Telegraph & Telephone
Corp. (Telecommunications-Long
Distance) 3,338 51,228,238
- ---------------------------------------------------------------
NTT Data Corp.
(Computers-Software & Services) 1,984 31,399,933
- ---------------------------------------------------------------
NTT Mobile Communications
Network, Inc.
(Telecommunications-Cellular/Wireless) 2,379 63,208,767
- ---------------------------------------------------------------
Okuma Corp. (Hardware & Tools) 3,251,000 13,252,842
- ---------------------------------------------------------------
Orix Corp.
(Financial-Diversified) 46,600 6,257,733
- ---------------------------------------------------------------
Ricoh Co., Ltd. (Office Equipment
& Supplies) 1,735,000 28,307,851
- ---------------------------------------------------------------
Rohm Co. Ltd.
(Electronics-Component
Distributors) 74,000 16,609,275
- ---------------------------------------------------------------
Sanix Inc. (Services-Commercial &
Consumer) 185,600 17,268,428
- ---------------------------------------------------------------
Sharp Corp. (Electrical
Equipment) 918,000 14,616,853
- ---------------------------------------------------------------
Sony Corp. (Electronics-Component
Distributors) 345,900 53,947,859
- ---------------------------------------------------------------
Takeda Chemical Industries Ltd.
(Health Care-Drugs-Generic &
Other) 642,000 36,886,288
- ---------------------------------------------------------------
Tokyo Electron Ltd. (Electronics-
Semiconductors) 229,000 19,022,013
- ---------------------------------------------------------------
Trend Micro Inc.
(Computers-Software &
Services)(a) 197,100 39,134,526
- ---------------------------------------------------------------
Ushio, Inc.
(Electronics-Component
Distributors) 1,261,000 15,518,325
- ---------------------------------------------------------------
773,029,949
- ---------------------------------------------------------------
MEXICO-3.27%
Cifra S.A. de C.V.
(Retail-General Merchandise)(a) 8,782,000 13,426,459
- ---------------------------------------------------------------
Coca-Cola Femsa S.A.-ADR
(Beverages- Non-Alcoholic) 796,800 11,055,600
- ---------------------------------------------------------------
Fomento Economico Mexicano, S.A.
de C.V.-ADR
(Beverages-Non-Alcoholic) 669,970 21,983,391
- ---------------------------------------------------------------
Grupo Modelo S.A. de C.V.-Series
C (Beverages-Alcoholic) 4,538,900 11,093,515
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEXICO-(CONTINUED)
Grupo Televisa S.A.-GDR
(Entertainment)(a) 536,200 $ 22,788,500
- ---------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.- Class A (Paper & Forest
Products) 1,979,000 6,339,386
- ---------------------------------------------------------------
Telefonos de Mexico S.A.-ADR
(Telephone) 156,000 13,338,000
- ---------------------------------------------------------------
100,024,851
- ---------------------------------------------------------------
NETHERLANDS-4.68%
Aegon N.V. (Insurance Brokers) 195,000 18,001,891
- ---------------------------------------------------------------
CMG PLC (Computers-Software &
Services) 274,000 10,579,204
- ---------------------------------------------------------------
Equant N.V.
(Computers-Networking)(a) 100,000 9,731,462
- ---------------------------------------------------------------
Getronics N.V.
(Computers-Software & Services) 442,000 22,041,289
- ---------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V. (Electrical
Equipment) 306,000 31,387,912
- ---------------------------------------------------------------
Koninklijke Ahold N.V.
(Retail-Food Chains) 957,514 29,414,696
- ---------------------------------------------------------------
Verenigde Nederlandse
Uitgeversbedrijven Verenigd
Bezit (Publishing) 654,600 22,140,803
- ---------------------------------------------------------------
143,297,257
- ---------------------------------------------------------------
SINGAPORE-1.49%
Datacraft Asia Ltd.
(Communications Equipment) 1,418,400 6,524,640
- ---------------------------------------------------------------
DBS Group Holdings Ltd.
(Banks-Money Center)(a) 1,393,274 15,753,624
- ---------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction) 3,901,900 10,607,198
- ---------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing- Newspapers) 749,000 12,838,456
- ---------------------------------------------------------------
45,723,918
- ---------------------------------------------------------------
SOUTH KOREA-2.06%
Korea Electric Power Corp.-ADR
(Electric Companies) 659,900 10,393,425
- ---------------------------------------------------------------
Korea Telecom Corp.-ADR
(Telephone)(a) 464,000 16,356,000
- ---------------------------------------------------------------
L.G. Chemical Ltd.
(Chemicals-Specialty) 597,000 18,066,778
- ---------------------------------------------------------------
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 548,300 18,299,512
- ---------------------------------------------------------------
63,115,715
- ---------------------------------------------------------------
SPAIN-2.07%
Banco Popular Espanol S.A.
(Banks-Major Regional) 197,000 13,264,246
- ---------------------------------------------------------------
NH Hoteles, S.A. (Investment
Management)(a) 556,500 6,293,758
- ---------------------------------------------------------------
Telefonica S.A. (Telephone)(a) 2,668,827 43,913,045
- ---------------------------------------------------------------
63,471,049
- ---------------------------------------------------------------
SWEDEN-1.51%
Hennes & Mauritz A.B.-Class B
(Retail- Specialty-Apparel) 1,466,768 38,969,943
- ---------------------------------------------------------------
NetCom A.B.
(Telecommunications-Cellular/
Wireless)(a) 176,400 7,324,976
- ---------------------------------------------------------------
46,294,919
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWITZERLAND-3.11%
ABB Ltd. (Electrical
Equipment)(a) 151,150 $ 15,217,108
- ---------------------------------------------------------------
Adecco S.A. (Services-Commercial
& Consumer) 29,191 17,690,355
- ---------------------------------------------------------------
Compagnie Financiere Richemont
A.G. (Tobacco) 16,100 30,749,131
- ---------------------------------------------------------------
Zurich Allied A.G.
(Insurance-Multi-Line) 56,106 31,756,725
- ---------------------------------------------------------------
95,413,319
- ---------------------------------------------------------------
TAIWAN-0.92%
Far Eastern Textile Ltd.
(Chemicals- Diversified) 9,331,470 12,767,522
- ---------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co.
(Electronics-Semiconductors)(a) 3,472,000 15,433,544
- ---------------------------------------------------------------
28,201,066
- ---------------------------------------------------------------
THAILAND-0.46%
Siam Commercial Bank PLC Wts.,
expiring 05/10/02
(Banks-Regional)(b) 9,404,000 3,288,538
- ---------------------------------------------------------------
Siam Commercial Bank PLC, 5.25%
Pfd. (Banks-Regional)(a) 9,404,000 10,657,298
- ---------------------------------------------------------------
13,945,836
- ---------------------------------------------------------------
UNITED KINGDOM-14.12%
Barclays PLC (Banks-Major
Regional) 1,392,000 42,636,380
- ---------------------------------------------------------------
BP Amoco PLC (Oil & Gas-Refining
& Marketing) 2,930,000 28,445,643
- ---------------------------------------------------------------
British Sky Broadcasting Group
PLC (Broadcasting-Television,
Radio & Cable) 2,810,000 30,191,184
- ---------------------------------------------------------------
British Telecommunications PLC
(Communications Equipment) 1,598,875 29,007,819
- ---------------------------------------------------------------
Compass Group PLC
(Services-Commercial &
Consumer) 1,996,500 21,401,546
- ---------------------------------------------------------------
General Electric Co. PLC
(Manufacturing- Diversified) 2,139,000 23,263,168
- ---------------------------------------------------------------
Granada Group PLC (Leisure Time-
Products) 1,861,950 14,724,527
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Hays PLC (Services-Commercial &
Consumer) 3,280,700 $ 37,567,809
- ---------------------------------------------------------------
Invensys PLC
(Electronics-Component-
Distributors) 2,500,000 12,289,648
- ---------------------------------------------------------------
Logica PLC (Computer Software &
Services) 1,033,500 15,810,845
- ---------------------------------------------------------------
Orange PLC (Telephone)(a) 2,902,300 72,386,256
- ---------------------------------------------------------------
Provident Financial PLC (Consumer
Finance) 963,933 10,768,731
- ---------------------------------------------------------------
Shell Transport & Trading Co.
(Oil- International Integrated) 2,840,000 21,782,023
- ---------------------------------------------------------------
Vodafone Airtouch PLC
(Telecommunications-Cellular/
Wireless) 9,171,500 42,673,183
- ---------------------------------------------------------------
WPP Group PLC
(Services-Advertising/
Marketing) 2,729,500 29,640,406
- ---------------------------------------------------------------
432,589,168
- ---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$1,993,503,584) 2,885,031,650
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
U.S. DOLLAR DENOMINATED
CONVERTIBLE BONDS & NOTES-0.08%
SHIPPING-0.08%
Cosco Treasury Co. Ltd. (Hong
Kong), Conv. Gtd. Bonds, 1.00%,
03/13/03 (Cost $2,038,832) $ 2,754,000 2,569,534
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-3.68%
STIC Liquid Assets Portfolio(c) 56,392,364 56,392,364
- ---------------------------------------------------------------
STIC Prime Portfolio(c) 56,392,364 56,392,364
- ---------------------------------------------------------------
Total Money Market Funds
(Cost $112,784,728) 112,784,728
- ---------------------------------------------------------------
TOTAL INVESTMENTS-97.93% 3,000,385,912
- ---------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-2.07% 63,347,198
- ---------------------------------------------------------------
NET ASSETS-100.00% $3,063,733,110
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GDR - Global Depositary Receipt
Gtd. - Guaranteed
Pfd. - Preferred
Rts. - Rights
Wts. - Warrants
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Non-income producing security acquired as part of a unit with or in exchange
for other securities.
(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
$2,108,327,144) $3,000,385,912
- ------------------------------------------------------------
Foreign currencies, at value (cost
$74,813,071) 74,702,387
- ------------------------------------------------------------
Receivables for:
Investments sold 56,015,112
- ------------------------------------------------------------
Capital stock sold 18,461,482
- ------------------------------------------------------------
Dividends and interest 6,337,504
- ------------------------------------------------------------
Foreign exchange contracts 14,794
- ------------------------------------------------------------
Investment for deferred compensation plan 49,495
- ------------------------------------------------------------
Other assets 64,941
- ------------------------------------------------------------
Total assets 3,156,031,627
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 80,677,634
- ------------------------------------------------------------
Capital stock reacquired 6,310,879
- ------------------------------------------------------------
Deferred compensation 49,495
- ------------------------------------------------------------
Accrued advisory fees 2,182,463
- ------------------------------------------------------------
Accrued administrative services fees 15,624
- ------------------------------------------------------------
Accrued custodian fees 308,014
- ------------------------------------------------------------
Accrued directors' fees 1,989
- ------------------------------------------------------------
Accrued distribution fees 1,957,696
- ------------------------------------------------------------
Accrued transfer agent fees 474,904
- ------------------------------------------------------------
Accrued operating expenses 319,819
- ------------------------------------------------------------
Total liabilities 92,298,517
- ------------------------------------------------------------
Net assets applicable to shares outstanding $3,063,733,110
============================================================
NET ASSETS:
Class A $2,058,418,998
============================================================
Class B $ 887,106,232
============================================================
Class C $ 118,207,880
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 400,000,000
- ------------------------------------------------------------
Outstanding 94,727,616
============================================================
Class B:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 42,019,748
============================================================
Class C:
Authorized 200,000,000
- ------------------------------------------------------------
Outstanding 5,595,038
============================================================
Class A:
Net asset value and redemption price per
share $ 21.73
- ------------------------------------------------------------
Offering price per share:
(Net asset value of $21.73 / 94.50%) $ 22.99
============================================================
Class B:
Net asset value and offering price per
share $ 21.11
============================================================
Class C:
Net asset value and offering price per
share $ 21.13
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $4,188,410 foreign
withholding tax) $ 30,386,931
- -----------------------------------------------------------
Interest 6,418,977
- -----------------------------------------------------------
Total investment income 36,805,908
- -----------------------------------------------------------
EXPENSES:
Advisory fees 25,205,776
- -----------------------------------------------------------
Administrative services fees 150,312
- -----------------------------------------------------------
Custodian fees 2,096,887
- -----------------------------------------------------------
Directors' fees 30,233
- -----------------------------------------------------------
Distribution fees-Class A 5,566,448
- -----------------------------------------------------------
Distribution fees-Class B 8,024,805
- -----------------------------------------------------------
Distribution fees-Class C 871,229
- -----------------------------------------------------------
Transfer agent fees-Class A 3,503,290
- -----------------------------------------------------------
Transfer agent fees-Class B 2,144,697
- -----------------------------------------------------------
Transfer agent fees-Class C 275,741
- -----------------------------------------------------------
Other 1,047,772
- -----------------------------------------------------------
Total expenses 48,917,190
- -----------------------------------------------------------
Less: Fees waived by advisor (1,122,543)
- -----------------------------------------------------------
Expenses paid indirectly (38,898)
- -----------------------------------------------------------
Net expenses 47,755,749
- -----------------------------------------------------------
Net investment income (loss) (10,949,841)
- -----------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENT SECURITIES AND
FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities 182,981,531
- -----------------------------------------------------------
Foreign currencies (190,675)
- -----------------------------------------------------------
182,790,856
- -----------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 476,714,401
- -----------------------------------------------------------
Foreign currencies (900,290)
- -----------------------------------------------------------
475,814,111
- -----------------------------------------------------------
Net gain from investment securities and
foreign
currencies 658,604,967
- -----------------------------------------------------------
Net increase in net assets resulting from
operations $647,655,126
===========================================================
</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) $ (10,949,841) $ 796,378
- -----------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 182,790,856 132,726,915
- -----------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 475,814,111 28,100,960
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 647,655,126 161,624,253
- -----------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (10,410,630) (5,803,939)
- -----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (20,381,375) --
- -----------------------------------------------------------------------------------------------
Class B (9,045,542) --
- -----------------------------------------------------------------------------------------------
Class C (756,877) --
- -----------------------------------------------------------------------------------------------
Share transactions-net:
Class A (81,882,865) 22,585,920
- -----------------------------------------------------------------------------------------------
Class B (28,939,533) 35,370,772
- -----------------------------------------------------------------------------------------------
Class C 39,293,753 45,396,283
- -----------------------------------------------------------------------------------------------
Net increase in net assets 535,532,057 259,173,289
- -----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 2,528,201,053 2,269,027,764
- -----------------------------------------------------------------------------------------------
End of period $3,063,733,110 $2,528,201,053
===============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $2,002,598,882 $2,001,298,592
- -----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (8,098,861) (315,829)
- -----------------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 177,562,192 111,361,504
- -----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 891,670,897 415,856,786
- -----------------------------------------------------------------------------------------------
$3,063,733,110 $2,528,201,053
===============================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM International Equity Fund (the "Fund") is a series portfolio of AIM
International Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end series management investment company consisting of six
separate portfolios. The Fund currently offers three different classes of
shares: Class A shares, Class B shares and Class C shares. Class A shares are
sold with a front-end sales charge. Class B shares and Class C shares are sold
with a contingent deferred sales charge. Matters affecting each portfolio or
class will be voted on exclusively by the shareholders of such portfolio or
class. The assets, liabilities and operations of each portfolio are accounted
for separately. Information presented in these financial statements pertains
only to the Fund. The Fund's investment objective is long-term growth of capital
by investing in a diversified portfolio of international equity securities whose
issuers are considered by the Fund's portfolio managers to have strong earnings
momentum.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price on the exchange where
the security is principally traded, or lacking any sales on a particular day,
the security is valued at the closing bid price on that day. Each security
reported on the NASDAQ National Market System is valued at the last sales
price on the valuation date or absent a last sales price, at the closing bid
price. Debt obligations (including convertible bonds) are valued on the basis
of prices provided by an independent pricing service. Prices provided by the
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as yield, type of issue,
coupon rate and maturity date. Securities for which market prices are not
provided by any of the above methods are valued based upon quotes furnished
by independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as determined
in good faith by or under the supervision of the Company's officers in a
manner specifically authorized by the Board of Directors of the Company.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and options contracts generally will be
valued 15 minutes after the close of trading of the New York Stock Exchange
("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the NYSE
which would not be reflected in the computation of the Fund's net asset
value. If events materially affecting the value of such securities occur
during such period, then these securities will be valued at their fair value
as determined in good faith by or under the supervision of the Board of
Directors.
B. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date. The Fund may elect to use a portion of the proceeds of
capital stock redemptions as distributions for Federal income tax purposes.
Distributions from income and net realized capital gains, if any, are
generally paid annually and recorded on ex-dividend date.
On October 31, 1999, $13,577,439 was reclassified from undistributed net
investment income (loss), undistributed net realized gains was decreased by
$86,406,374 and paid in capital was increased by $72,828,935 as a result of
differing book/tax treatment of foreign currency transactions and net
operating loss reclassifications in order to comply with the requirements of
the American Institute of Certified Public Accountants Statement of Position
93-2. Net assets of the Fund were unaffected by the reclassification
discussed above.
C. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
D. Foreign Currency Translations -- Portfolio, securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
11
<PAGE> 14
fluctuations are included with the net realized and unrealized gain or loss
from investments.
E. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
F. Bond Premiums -- It is the policy of the Fund not to amortize market premiums
on bonds for financial reporting purposes.
G. Expenses -- Distribution expenses and transfer agency expenses directly
attributable to a class of shares are charged to that class' operations. All
other expenses which are attributable to more than one class are allocated
among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.95% of the first $1
billion of the Fund's average daily net assets, plus 0.90% of the Fund's average
daily net assets in excess of $1 billion. AIM has contractually agreed to waive
a portion of its advisory fees paid to the Fund by AIM to the extent necessary
to reduce the fees paid by the Fund at the net asset levels higher than those
currently incorporated in the present advisory fee schedule. Under the
contractual waiver, AIM will receive a fee calculated at the annual rate of
0.95% of the first $500 million of the Fund's average daily net assets, plus
0.90% of the Fund's average daily net assets in excess of $500 million to and
including $1 billion, plus 0.85% of the Fund's average daily net assets in
excess of $1 billion. The waiver of fees is contractual and may not be
terminated without approval of the Board of Directors of the Company. During the
year ended October 31, 1999, AIM waived fees of $1,122,543.
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 $150,312 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 $2,547,913 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
0.30% 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 $5,566,448,
$8,024,805 and $871,229, respectively, as compensation under the Plans.
AIM Distributors received commissions of $446,482 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 $157,129 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 $8,665 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
$32,748 and $6,150, respectively, under expense offset arrangements. The effect
of the above arrangements resulted in a reduction of the Fund's total expenses
of $38,898 during the year ended October 31, 1999.
NOTE 4-DIRECTORS' FEES
Directors' fees represent remuneration paid to directors who are not an
"interested person" of AIM. The Company invests directors' fees, if so elected
by a director, in mutual fund shares in accordance with a deferred compensation
plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. During the year
ended October 31, 1999, the Fund did not borrow under the line of credit
agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. Prior to
May 28, 1999, the commitment fee rate was 0.05%. The commitment fee is allocated
among the funds based on their respective average net assets for the period.
12
<PAGE> 15
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
$2,215,214,374 and $2,387,679,858, 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 $915,052,506
- --------------------------------------------------------------------------
Aggregate unrealized appreciation (depreciation) of
investment securities (34,222,893)
- --------------------------------------------------------------------------
Net unrealized appreciation of investment securities $880,829,613
==========================================================================
Cost of investments for tax purposes is $2,119,556,299
</TABLE>
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the years ended October 31, 1999 and
1998 were as follows:
<TABLE>
<CAPTION>
1999 1998
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 144,897,083 $ 2,695,101,630 255,642,183 $ 4,635,171,469
- -----------------------------------------------------------------------------------------------------------------------------
Class B 11,600,846 212,065,890 12,193,983 217,550,365
- -----------------------------------------------------------------------------------------------------------------------------
Class C 9,254,771 168,733,197 25,679,581 472,331,833
- -----------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 1,596,985 28,282,611 332,423 5,441,633
- -----------------------------------------------------------------------------------------------------------------------------
Class B 482,230 8,356,948 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Class C 39,786 689,883 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Issued in connection with acquisition*:
Class A 5,974,789 106,921,489 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Class B 2,061,255 35,971,364 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (155,781,747) (2,912,188,595) (252,737,021) (4,618,027,182)
- -----------------------------------------------------------------------------------------------------------------------------
Class B (15,614,562) (285,333,735) (10,435,828) (182,179,593)
- -----------------------------------------------------------------------------------------------------------------------------
Class C (7,117,246) (130,129,327) (23,050,474) (426,935,550)
- -----------------------------------------------------------------------------------------------------------------------------
(2,605,810) $ (71,528,645) 7,624,847 $ 103,352,975
=============================================================================================================================
</TABLE>
* The Fund acquired AIM International Growth Fund on February 12, 1999. The
acquired fund's net assets as of the closing date were $125,802,235. The net
assets of the Fund immediately prior to acquisition were $2,655,808,540.
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A capital stock
outstanding during each of the years in the five-year period ended October 31,
1999, for a share of Class B capital stock outstanding during each of the years
in the five-year period ended October 31, 1999 and for a share of Class C
capital stock outstanding during each of the years in the two-year period ended
October 31, 1999 and the period August 4, 1997 (date sales commenced) through
October 31, 1997.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.59 $ 16.64 $ 15.37 $ 13.65 $ 13.50
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- --------
Income from investment operations:
Net investment income (loss) (0.03) 0.05(a) 0.04(a) 0.04(a) 0.01
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- --------
Net gains on securities (both realized and unrealized) 4.49 0.96 1.68 2.07 0.62
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- --------
Total from investment operations 4.46 1.01 1.72 2.11 0.63
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- --------
Less distributions:
Dividends from net investment income (0.11) (0.06) (0.02) (0.01) (0.04)
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- --------
Distributions from net realized gains (0.21) -- (0.43) (0.38) (0.44)
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- --------
Total distributions (0.32) (0.06) (0.45) (0.39) (0.48)
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- --------
Net asset value, end of period $ 21.73 $ 17.59 $ 16.64 $ 15.37 $ 13.65
============================================================ ========== ========== ========== ========== ========
Total return(b) 25.73% 6.11% 11.43% 15.79% 5.24%
============================================================ ========== ========== ========== ========== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $2,058,419 $1,724,635 $1,577,390 $1,108,395 $654,764
============================================================ ========== ========== ========== ========== ========
Ratio of expenses to average net assets(c) 1.48%(d) 1.45% 1.47% 1.58% 1.67%
============================================================ ========== ========== ========== ========== ========
Ratio of net investment income (loss) to average net
assets(e) (0.14)%(d) 0.28% 0.24% 0.25% 0.10%
============================================================ ========== ========== ========== ========== ========
Portfolio turnover rate 86% 78% 50% 66% 68%
============================================================ ========== ========== ========== ========== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.52%, 1.49%, 1.51%, 1.60% and 1.68% for 1999-1995.
(d) Ratios are based on average net assets of $1,855,482,758.
(e) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.18)%, 0.24%, 0.20%, 0.22% and 0.09% for 1999-1995.
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------------------------------------- --------
1999 1998 1997 1996 1995 1999
---------- ---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.13 $ 16.27 $ 15.13 $ 13.54 $ 13.49 $ 17.14
- ------------------------------------------------ ---------- ---------- ---------- ---------- -------- --------
Income from investment operations:
Net investment income (loss) (0.17)(a) (0.09)(a) (0.09)(a) (0.07)(a) (0.09) (0.17)(a)
- ------------------------------------------------ ---------- ---------- ---------- ---------- -------- --------
Net gains (losses) on securities (both
realized and unrealized) 4.36 0.95 1.66 2.04 0.61 4.37
- ------------------------------------------------ ---------- ---------- ---------- ---------- -------- ---------
Total from investment operations 4.19 0.86 1.57 1.97 0.52 4.20
- ------------------------------------------------ ---------- ---------- ---------- ---------- -------- ---------
Less distributions:
Dividends from net investment income -- -- -- -- (0.03) --
- ------------------------------------------------ ---------- ---------- ---------- ---------- -------- --------
Distributions from net realized gains (0.21) -- (0.43) (0.38) (0.44) (0.21)
- ------------------------------------------------ ---------- ---------- ---------- ---------- -------- --------
Total distributions (0.21) -- (0.43) (0.38) (0.47) (0.21)
- ------------------------------------------------ ---------- ---------- ---------- ---------- -------- --------
Net asset value, end of period $ 21.11 $ 17.13 $ 16.27 $ 15.13 $ 13.54 $ 21.13
================================================ ========== ========== ========== ========== ======== ========
Total return(b) 24.72% 5.29% 10.61% 14.88% 4.35% 24.76%
================================================ ========== ========== ========== ========== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 887,106 $ 744,987 $ 678,809 $ 368,355 $ 51,964 $118,208
================================================ ========== ========== ========== ========== ======== ========
Ratio of expenses to average net assets(c) 2.27%(d) 2.22% 2.25% 2.35% 2.55% 2.27%(d)
================================================ ========== ========== ========== ========== ======== ========
Ratio of net investment income (loss) to average
net assets(f) (0.93)%(d) (0.49)% (0.53)% (0.53)% (0.78)% (0.93)%(d)
================================================ ========== ========== ========== ========== ======== ========
Portfolio turnover rate 86% 78% 50% 66% 68% 86%
================================================ ========== ========== ========== ========== ======== ========
<CAPTION>
CLASS C
--------------------
1998 1997
-------- --------
<S> <C> <C>
Net asset value, beginning of period $ 16.27 $ 17.64
- ------------------------------------------------ -------- --------
Income from investment operations:
Net investment income (loss) (0.09)(a) (0.02)(a)
- ------------------------------------------------ -------- --------
Net gains (losses) on securities (both
realized and unrealized) 0.96 (1.35)
- ------------------------------------------------ -------- --------
Total from investment operations 0.87 (1.37)
- ------------------------------------------------ -------- --------
Less distributions:
Dividends from net investment income -- --
- ------------------------------------------------ -------- --------
Distributions from net realized gains -- --
- ------------------------------------------------ -------- --------
Total distributions -- --
- ------------------------------------------------ -------- --------
Net asset value, end of period $ 17.14 $ 16.27
================================================ ======== ========
Total return(b) 5.35% (7.77)%
================================================ ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 58,579 $ 12,829
================================================ ======== ========
Ratio of expenses to average net assets(c) 2.22%() 2.27%(e)
================================================ ======== ========
Ratio of net investment income (loss) to average
net assets(f) (0.49)%() (0.55)%(e)
================================================ ======== ========
Portfolio turnover rate 78% 50%
================================================ ======== ========
</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) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
2.31%, 2.26%, 2.28%, 2.37% and 2.56% for 1999-1995 for Class B and 2.31%,
2.26% and 2.30% (annualized) for 1999-1997 for Class C.
(d) Ratios are based on average net assets of $802,480,523 and $87,122,931 for
Class B and Class C, respectively.
(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 (0.97)%, (0.53)%, (0.57)%, (0.55)% and (0.79)%, for
1999-1995 for Class B and (0.97)%, (0.53)% and (0.57)% (annualized) for
1999-1997 for Class C.
14
<PAGE> 17
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders of
AIM International Funds, Inc.:
We have audited the accompanying statement of assets and
liabilities of AIM International Equity Fund (a portfolio
of AIM International Funds, Inc.), including the schedule
of investments, as of October 31, 1999, 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 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
International Equity 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>
REQUIRED FEDERAL INCOME TAX INFORMATION
AIM International Equity Fund paid ordinary dividends in the amount of $0.1065
per share to Class A shareholders during its tax year ended October 31, 1999. Of
this amount, 0% is eligible for the dividends received deduction for
corporations. The Fund also distributed long-term capital gains of $116,883,794
during the Fund's tax year ended October 31, 1999.
<PAGE> 19
AIM FUNDS(SM) MAKES
INVESTING EASY
-------------------------------------
OUR AUTOMATED
AIM INVESTOR LINE,
800-246-5463,
PROVIDES CURRENT ACCOUNT INFORMATION AND THE PRICE, YIELD AND TOTAL RETURN
ON ALL AIM FUNDS
24 HOURS A DAY.
-------------------------------------
o AIM BANK CONNECTION(SM). You can make investments in your AIM account in
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convenient feature, AIM will draw the funds from your pre-authorized checking
account at your request.
o AIM INTERNET CONNECT(SM). With this service, you can purchase, redeem or
exchange shares of AIM funds in your current AIM account simply by accessing
our Web site at www.aimfunds.com. For a retirement account, such as an IRA or
403(b), only exchanges are allowed over the Internet because of the
tax-reporting and record-keeping requirements these accounts involve.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. You can receive
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o AUTOMATIC INVESTMENT PLAN. You can add to your account by authorizing your
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o EXCHANGE PRIVILEGE. As your investment goals change, you may exchange part or
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o E-MAIL ACCESS. You can contact us at [email protected] for general
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o www.aimfunds.com. Our award-winning Web site provides account information,
shareholder education and fund performance information.
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Money Market Fund leadership in the mutual fund industry since
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund 1976 and managed approximately $120 billion
AIM Capital Development Fund in assets for more than 6.4 million
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS shareholders, including individual
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund investors, corporate clients and financial
AIM Large Cap Growth Fund AIM Asian Growth Fund institutions, as of September 30, 1999.
AIM Mid Cap Equity Fund AIM Developing Markets Fund The AIM Family of Funds--Registered
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) Trademark--is distributed nationwide, and
AIM Mid Cap Opportunities Fund AIM European Development Fund AIM today is the 10th-largest mutual fund
AIM Select Growth Fund AIM International Equity Fund complex in the United States in assets under
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund management, according to Strategic Insight,
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund an independent mutual 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--
A I M Distributors, Inc.
INT-AR-1
