<PAGE> 1
ANNUAL REPORT / OCTOBER 31 2000
AIM ASIAN GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
TWO FISH BY JOHN S. BUNKER
THE POWER AND TURBULENCE DEPICTED IN THIS BOLD WATERCOLOR VIVIDLY
EXPRESS THE FORCES OF CHANGE SHAPING THE ASIAN REGION. ASIA'S
CITIES AND NATIONS FACE BOTH CHALLENGE AND OPPORTUNITY AS THEY
DEVELOP THEIR ROLES IN THE GLOBAL ECONOMY.
-------------------------------------
AIM Asian Growth Fund is for shareholders who seek long-term growth of capital.
The fund invests in a diversified portfolio of companies located in Asia with
strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Asian Growth Fund's performance figures are historical, and they reflect
the reinvestment of distributions and changes in net asset value.
o Had the advisor not waived fees and expenses during the reporting period,
returns would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o Investing in emerging markets may involve greater risk and potential reward
than investing in more established markets.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custodial arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
o The fund participates in the initial public offering (IPO) market, and a
significant portion of its returns may be attributable to its investment in
IPOs, which may have a magnified impact due to the fund's relatively small
asset base. As the fund's assets grow, it is probable that the effect of its
investment in IPOs on its total return will decline, which may reduce the
fund's total return.
o Investing in a single-region mutual fund may involve greater risk and
potential reward than investing in a more diversified fund.
o Investing in micro-, small and mid-sized companies may involve risks not
associated with more established companies. Also, micro and small companies
may have business risk, significant stock-price fluctuations and
illiquidity.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged MSCI All Country (AC) Asia Pacific Free ex-Japan Index is a
group of developed and emerging Asian and Asia-Pacific markets (except
Japan) tracked by Morgan Stanley Capital International. A "free" index
excludes stocks that non-local investors cannot buy.
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising
all domestic and non-U.S.-based common stocks listed on the Nasdaq system.
It includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company stock universe. While
it includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the U.S. stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not include sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM ASIAN GROWTH FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
It's an honor to address you as the AIM Funds' new chairman.
[PHOTO OF I feel privileged to succeed Ted Bauer, who recently retired
Robert H. from the funds' board and will soon retire as A I M
Graham, Management Group's chairman after a long, successful career
Chairman of in the investment industry. Ted has always shown the highest
the Board of degree of integrity and commitment to excellence, and I have
THE FUND always admired him. I'm also proud to be part of the team
APPEARS HERE] that launched AIM almost 25 years ago. From the beginning,
AIM has been a very people-oriented, service-minded company,
and I plan to carry on the tradition for our shareholders,
financial advisors and employees.
UNCERTAIN MARKETS
The markets this year have been particularly volatile and
confusing for many investors, especially for those who have
only experienced the bull market of the 1990s. After almost
a decade of double-digit returns, the S&P 500 was down 1.81% year-to-date as of
October 31, 2000. But market returns in the 20% to 30% range, such as we have
seen in recent years, are not typical. If you expect these kinds of returns
every year, you'll be disappointed. Historically, markets decline in one out of
every four years. What we're seeing now is a normal downturn.
This appears to be a worldwide trend. Throughout 2000, overseas markets
generally have been more turbulent than their U.S. counterpart.
REASONS FOR OPTIMISM
While investors may need to temper their expectations, there are plenty of
reasons to be optimistic. Economic fundamentals remain strong, and many believe
that the Federal Reserve Board may have succeeded in bringing the economy to a
"soft landing." Gross domestic product growth slowed to 2.4% in the third
quarter from the rapid pace of about 7% a year ago. With this slowdown, it seems
unlikely that the Fed will raise interest rates in the near future, and stable
interest rates provide a solid environment for both stocks and bonds.
In Europe, the region's economic and investment future continues to look
bright despite the weak euro. Restructuring, merger activity and tax reform bode
well for European economies. In Asia, most analysts think the continuing
strength of the U.S.economy will help boost Asian stock markets.
THE VALUE OF ADVICE
The current environment illustrates the value of professional money management.
Knowing when to buy and sell takes expertise and discipline even in the best of
markets. During downturns, many investors may be tempted to make decisions based
on emotions instead of strategy. The wisest choice is to rely on a professional
money manager to make these decisions for you.
In these uncertain times, it's important to keep market volatility in
perspective. Mutual fund investing should be a long-term endeavor. Remember why
you're investing, whether it's for your retirement or your child's education,
and think about your time frame. If you're unsure about whether your investments
can meet your goals, visit your financial advisor for help.
In the following pages, your fund's portfolio managers discuss market
activity, how they managed your fund during the fiscal year and their near-term
outlook. If you have any questions or comments, please contact us through our
Web site, www.aimfunds.com, or call our Client Services Department at
800-959-4246 during normal business hours. Information about your account is
available at our Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of Funds
--Registered Trademark--.
Sincerely,
/s/ ROBERT H. GRAHAM
Robert H. Graham
Chairman
-------------------------------------
THE CURRENT
ENVIRONMENT
ILLUSTRATES THE VALUE
OF PROFESSIONAL
MONEY MANAGEMENT.
KNOWING WHEN TO BUY
AND SELL TAKES
EXPERTISE AND
DISCIPLINE EVEN IN THE
BEST OF MARKETS.
-------------------------------------
AIM ASIAN GROWTH FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
TECH EUPHORIA, THEN SELL-OFF SPLASHES ONTO ASIAN SHORES
THIS YEAR, INVESTORS HAVE TASTED BOTH THE UPS AND DOWNS OF THE TECHNOLOGY
SECTOR. HOW DID AIM ASIAN GROWTH FUND PERFORM DURING THE REPORTING PERIOD?
Asian markets were among the best performers in late 1999 and early 2000. As the
year progressed, however, Asian markets stumbled with the Nasdaq. For the fiscal
year ended October 31, 2000, Class A shares returned -0.65%, Class B shares
-1.41% and Class C shares -1.32%. These returns are at net asset value or
without a sales charge. While the tech sell-off took its toll on the fund, it
handily beat the MSCI AC Asia Pacific Free ex-Japan Index's return of -17.02%
for the same period. Total net assets grew from $74.7 million on April 30, 2000
to $140.4 million on October 31, 2000. During the reporting period, AIM New
Pacific Growth Fund was merged into AIM Asian Growth Fund.
WHAT WERE CONDITIONS LIKE IN ASIAN MARKETS?
Asia started the new year on a positive note. Asian ISPs (Internet service
providers), portals and Web-hosting companies soared along with other
technology-driven stocks. In March, however, markets around the world moved
lower in response to the Nasdaq's decline. Asian markets were particularly
sensitive to the global sell-off, as many of the region's largest and most
highly regarded stocks are closely tied to the fortunes of computer-chip prices.
Telecommunications and technology shares now account for one-third of Asia's
stock-market capitalization. The high-tech sell-off and reports during the
summer of depressed global demand for personal computers, coupled with a fall in
semiconductor-chip prices, pressured most of Asia's markets. A powerful rally in
semiconductors in September lifted some markets, but other factors such as
political disharmony in many countries, rising oil prices and continued
technology-stock volatility have discouraged investment in the region.
WHAT OTHER INFLUENCES WERE AT PLAY IN ASIAN ECONOMIES?
Some influences dragging down Asia's markets lie outside its borders. The recent
spike in oil prices, for instance, is of concern as apart from Indonesia and
Malaysia, most East Asian economies are avid oil importers. Also, the
possibility of an economic slowdown in the United States could hurt exports and
electronic sales to the United States. But Hong Kong, for instance, is partially
insulated from what happens across the Pacific by its close economic ties to
China. Doing business with China makes Hong Kong less dependent on countries
like the United States.
Political disharmony and small market capitalizations continue to sour
investor sentiment toward Indonesia, Thailand and the Philippines.
Due to their tech exposure, Taiwan and South Korea were solid performers
last year, but political turmoil in Taiwan has troubled that market this year.
South Korea was rewarded last year and the first part of this year for its
restructuring efforts both at the top down and macro level. Recent chaebol
(Korean family-dominated conglomerate) concerns, like the bankruptcies of some
subsidiary companies, have been a double-edged sword. On a positive note, Korean
creditors have recently shown determination to force bankruptcies rather than
bow to political pressures.
Incredibly, investors seem disappointed in Australia's economy, even though
it has posted growth rates above 4% for more than three years, spanning a
particularly poor period for the rest of Asian/Pacific markets. High commodity
prices and increased demand for Australian exports in Asian markets have pushed
exports to a new record, but the Australian dollar has not really benefited. The
much-publicized Sydney Olympics had little impact on financial markets.
GIVEN VOLATILE MARKET CONDITIONS THIS YEAR, IS ASIA'S FINANCIAL RECOVERY STILL
ON TRACK?
A number of changes have taken place in Asia since the 1997-98 financial crisis.
Short-term foreign debt levels are more manageable, and foreign exchange
reserves are higher. Central banks have used strong current account surpluses to
build up reserves, although corporate debt levels are still relatively high.
Asia has indeed been proactive in addressing the problems that led to the crisis
and has reemerged stronger. One of the most positive outcomes of the crisis was
the strengthening of the banking system. Hong Kong and Singapore provide the
cornerstone for the region's banking. These two island financial centers with
their strong, stable banks help cushion financial
================================================================================
TOP 10 COUNTRIES
As of 10/31/00, based on total net assets
================================================================================
UNITED STATES 1.13%
INDONESIA 1.13%
SINGAPORE 13.74%
THAILAND 1.71%
PHILIPPINES 1.54%
TAIWAN 12.26%
HONG KONG 34.13%
SOUTH KOREA 5.04%
INDIA 4.28%
AUSTRALIA 11.25%
================================================================================
See important fund and index disclosures inside front cover.
AIM ASIAN GROWTH FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
instability elsewhere in the region. In fact, Singapore banks weathered the
financial crisis better than most in the region. Singapore banks have the most
conservative accounting systems of all banks in the area.
Although investors have been wary of Asian investments lately, that sentiment
belies some post-recovery conditions. Currencies are relatively stable,
inflation is tame and growth rates have normalized. The global winds of change,
of course, blow through the region at various rates. Industrialized economies
like South Korea, Hong Kong and Singapore are growing rapidly, whereas others
such as Indonesia, Thailand and the Philippines are expanding by only 3% to 5%
per year.
HOW DID YOU MAKE COUNTRY SELECTIONS?
With mixed performance results across Asia, the fund's bottom-up
earnings-momentum stock-picking process helps provide the right allocations in
the best- and worst-performing countries. We continue to stick to developed Asia
and to focus on quality companies. Investments were primarily concentrated in
Hong Kong, Singapore, Korea, Taiwan and Australia. The fund continues to limit
its exposure to the Southeast Asian countries of Thailand, Malaysia, the
Philippines and Indonesia as earnings momentum in these countries has not yet
translated into strong earnings at the company level.
WHAT TRENDS INFLUENCED SECTOR/STOCK HOLDINGS?
A big trend in Asia has been the outsourcing of labor to other areas of the
globe. A prime example of this is fund holding Li & Fung. This Hong Kong-based
clothing manufacturer and distributor takes orders from retailers in the United
States.
The fund has also tried to capitalize on growing local consumption--half of
the world's population lives in Asia. Another fund holding, China Mobile, a Hong
Kong-listed stock, is the largest cell-phone operator in China. The company has
more than 18 million subscribers, and cell-phone subscriptions are on the rise.
WHAT IS YOUR OUTLOOK FOR THE REGION?
Many of the problems that plagued Asia in the past--drastically overvalued
currencies, overleveraged companies and shrinking economies--aren't as big a
factor today. But volatility in technology stocks and oil prices coupled with
political disharmony have sent investors in search of safer havens. This outflow
of principal has negatively affected many companies in the region despite
overall positive company performance.
Part of Asia's outlook depends on the strength of the U.S. economy and the
tech sector. Some hard-hit U.S. computer and technology companies import
microchips and hardware from Asia. The region, however, benefits not only from
its exports but also from increasing local consumption. The near-term outlook
for Asia is probably a holding pattern--wait for a catalyst for further growth.
================================================================================
[ARTWORK]
READ THIS REPORT ONLINE!
Early in 2001, a new service will be available-- electronic delivery of fund
reports and prospectuses. Soon, you can read the same AIM report you are reading
now--online. Once you sign up for the service, we will send you a link to the
report via e-mail. If you choose to receive your reports online, you will not
receive a paper copy by mail. You may cancel the service at any time by visiting
our Web site.
Please visit our Web site at www.aimfunds.com and go to "Your AIM Account."
Log into your account and then click on the "View Other Account Options"
dropdown menu and select "eDelivery."
================================================================================
PORTFOLIO COMPOSITION
As of 10/31/00, based on total net assets
<TABLE>
<CAPTION>
============================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Li & Fung Ltd. (Hong Kong) 3.64% 1. Computers (Software & Services) 7.63%
2. Hutchison Whampoa Ltd. (Hong Kong) 3.20 2. Electronics (Component Distributors) 7.39
3. DBS Group Holdings Ltd. (Singapore) 3.16 3. Computers (Hardware) 6.16
4. Dah Sing Financial Group (Hong Kong) 3.11 4. Banks (Regional) 5.66
5. Giordano International Ltd.(Hong Kong) 3.01 5. Retail (Specialty-Apparel) 5.48
6. ERG Ltd. (Australia) 2.88 6. Electronics (Semiconductors) 5.24
7. Computershare Ltd. (Australia) 2.62 7. Electrical Equipment 5.11
8. Legend Holdings Ltd. (Hong Kong) 2.56 8. Telephone 4.04
9. DAO Heng Bank Group Ltd. (Hong Kong) 2.55 9. Telecommunications (Cellular/Wireless) 3.72
10. China Mobile HK Ltd. (Hong Kong) 2.48 10. Distributors (Food & Health) 3.64
The fund's portfolio composition is subject to change, and there is no assurance that the fund
will continue to hold any particular security.
============================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM ASIAN GROWTH FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM ASIAN GROWTH FUND VS. BENCHMARK INDEXES
11/3/97 - 10/31/00
AIM Asian AIM Asian AIM Asian MSCI AC Asia
Growth Fund, Growth Fund, Growth Fund, Pacific Free
in thousands Class B Shares Class A Shares Class C Shares Ex-Japan Index
================================================================================
DATE
--------------------------------------------------------------------------------
11/97 10000 9452 10000 10000
1/98 8280 7836 8290 8811.4
4/98 9200 8715 9200 9366.58
7/98 7040 6682 7030 7421.28
10/98 7630 7268 7610 8110.23
1/99 7670 7307 7640 8905.49
4/99 9582 9140 9552 11029.4
7/99 10934 10461 10914 11712.8
10/99 10663 10233 10643 11340.4
1/00 12576 12086 12546 13038
4/00 14018 13502 14008 11981.4
7/00 12916 12456 12906 11335
10/00 10213 10167 10503 9410.17
Source: Lipper, Inc.
Past performance cannot guarantee comparable future results.
================================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
ABOUT THIS CHART
This chart compares the performance of your fund to a benchmark index over the
period 11/3/97-10/31/00. (Please note that index performance figures are for the
period 10/31/97-10/31/00.) It is important to understand the differences between
your fund and an index. Your fund's total return is shown with a sales charge,
and it includes fund expenses and management fees. An index measures the
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 your investment's return.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/00, including sales charges
================================================================================
CLASS A SHARES
Inception (11/3/97) 0.55%
1 Year -6.14*
*-0.65%, excluding sales charges
CLASS B SHARES
Inception (11/3/97) 0.71%
1 Year -6.34*
*-1.41%, excluding CDSC
CLASS C SHARES
Inception (11/3/97) 1.65%
1 Year -2.30*
*-1.32%, excluding CDSC
================================================================================
The fund's average annual total returns as of the close of the reporting period
are shown in the table above. In addition, industry regulations require us to
provide average annual total returns (including sales charges) as of 9/30/00,
the most recent calendar quarter-end, which were: Class A shares, one year,
6.23%; inception (11/3/97), 3.92%. Class B shares, one year, 6.58%; inception
(11/3/97), 4.21%. Class C shares, one year, 10.70%; inception (11/3/97), 5.13%.
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class A, Class B and Class C shares will differ
due to differing sales-charge structure and class expenses. For fund performance
calculations and a description of the index on this page, please see the inside
front cover.
AIM ASIAN GROWTH FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
STOCKS & OTHER EQUITY
INTERESTS-88.22%
AUSTRALIA-11.25%
Brambles Industries Ltd. (Air
Freight) 102,500 $ 2,657,553
---------------------------------------------------------------
BRL Hardy Ltd. (Beverages-Alcoholic) 502,000 1,969,803
---------------------------------------------------------------
Computershare Ltd.
(Computers-Software & Services) 850,800 3,682,452
---------------------------------------------------------------
CSL Ltd. (Health Care-Drugs-Generic
& Other) 75,000 1,334,155
---------------------------------------------------------------
ERG Ltd. (Electrical Equipment) 825,000 4,041,186
---------------------------------------------------------------
Foster's Brewing Group Ltd.
(Beverages-Alcoholic) 934,000 2,115,687
===============================================================
15,800,836
===============================================================
CAYMAN ISLANDS-1.02%
ASAT Holdings Ltd.-ADR
(Electronics-Semiconductor)(a) 217,000 1,437,625
===============================================================
CHINA-0.96%
AsiaInfo Holdings, Inc.
(Computers-Software & Services)(a) 111,200 1,348,300
===============================================================
HONG KONG-34.13%
Asia Satellite Telecommunications
Holdings Ltd.
(Telecommunications-Cellular/Wireless) 860,000 1,742,275
---------------------------------------------------------------
China Mobile Ltd.
(Telecommunications-Cellular/
Wireless)(a) 544,000 3,487,627
---------------------------------------------------------------
Dah Sing Financial Group
(Banks-Regional) 1,017,600 4,371,022
---------------------------------------------------------------
Dao Heng Bank Group Ltd.
(Banks-Regional) 707,500 3,574,240
---------------------------------------------------------------
Denway Motors Ltd. (Auto Parts &
Equipment)(a) 11,450,000 1,849,853
---------------------------------------------------------------
Esprit Holdings Ltd.
(Retail-Specialty Apparel) 4,028,000 3,460,392
---------------------------------------------------------------
Giordano International Ltd.
(Retail-Specialty Apparel) 7,207,000 4,227,725
---------------------------------------------------------------
HKR International Ltd. (Land
Development) 1,372,600 571,990
---------------------------------------------------------------
Hutchison Whampoa Ltd. (Retail-Food
Chains) 360,800 4,487,447
---------------------------------------------------------------
Johnson Electric Holdings Ltd.
(Electrical Equipment) 1,558,000 3,136,376
---------------------------------------------------------------
Legend Holdings Ltd.
(Computers-Hardware) 4,254,000 3,600,000
---------------------------------------------------------------
Li & Fung Ltd. (Distributors-Food &
Health) 2,752,000 5,116,553
---------------------------------------------------------------
Shangri-La Asia Ltd.
(Lodging-Hotels) 2,856,000 2,819,746
---------------------------------------------------------------
SINA.com (Computers-Software &
Services)(a) 154,000 1,073,188
---------------------------------------------------------------
Sunevision Holdings Ltd.
(Computers-Software & Services)(a) 851,787 415,026
---------------------------------------------------------------
Television Broadcasts Ltd.
(Broadcasting-Television, Radio &
Cable) 311,000 1,702,744
---------------------------------------------------------------
Wing Hang Bank Ltd. (Banks-Major
Regional) 746,500 2,278,074
===============================================================
47,914,278
===============================================================
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
INDIA-4.28%
Infosys Technologies Ltd.
(Computers-Software & Services)(b) 15,100 $ 2,319,991
---------------------------------------------------------------
ITC Ltd. (Tobacco) 90,000 1,468,670
---------------------------------------------------------------
ITC Ltd.-GDR (Tobacco) 19,600 355,740
---------------------------------------------------------------
Satyam Computer Services Ltd.
(Computers-Software & Services) 284,000 1,870,823
===============================================================
6,015,224
===============================================================
INDONESIA-1.18%
Gulf Indonesia Resources Ltd.
(Oil-International Integrated)(a) 152,700 1,660,613
===============================================================
NEW ZEALAND-0.80%
Sky Network Television Ltd.
(Broadcasting-Television, Radio &
Cable)(a) 855,000 1,051,188
---------------------------------------------------------------
Sky Network Television Ltd.-ADR
(Broadcasting-Television, Radio &
Cable)(a) 5,400 66,434
===============================================================
1,117,622
===============================================================
PHILIPPINES-1.54%
Bank of the Philippine Islands
(Banks-Major Regional) 1,146,388 1,164,127
---------------------------------------------------------------
SM Prime Holdings, Inc. (Land
Development) 12,824,900 992,255
===============================================================
2,156,382
===============================================================
SINGAPORE-13.74%
Chartered Semiconductor
Manufacturing Ltd.-ADR
(Electronics-Semiconductors)(a) 43,000 1,999,500
---------------------------------------------------------------
Datacraft Asia Ltd. (Communications
Equipment) 488,384 3,345,430
---------------------------------------------------------------
DBS Group Holdings Ltd. (Banks-Money
Center) 376,137 4,433,204
---------------------------------------------------------------
Keppel Corp. Ltd. (Engineering &
Construction) 854,000 1,701,873
---------------------------------------------------------------
Keppel Land Ltd. (Land Development) 2,006,000 2,992,496
---------------------------------------------------------------
NatSteel Broadway Ltd.
(Electronics-Component
Distributors) 928,000 1,077,902
---------------------------------------------------------------
Singapore Airlines Ltd. (Airlines) 253,000 2,535,330
---------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing-Newspapers) 84,000 1,200,478
===============================================================
19,286,213
===============================================================
SOUTH KOREA-5.04%
Hyundai Motor Co. Ltd. (Automobiles) 122,000 1,394,286
---------------------------------------------------------------
Korea Telecom Corp. (Telephone)(a) 12,620 743,332
---------------------------------------------------------------
Korea Telecom Corp.-ADR (Telephone) 70,284 2,591,723
---------------------------------------------------------------
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 72,100 1,140,081
---------------------------------------------------------------
Samsung Electronics N.V.
(Electronics-Component
Distributors) 9,614 1,204,391
===============================================================
7,073,813
===============================================================
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TAIWAN-11.49%
Advantech Co., Ltd.
(Computers-Hardware) 448,500 $ 1,678,840
---------------------------------------------------------------
Ambit Microsystems Corp.
(Electronics-Component
Distributors) 342,600 1,589,791
---------------------------------------------------------------
Compal Electronics Inc.
(Computers-Hardware) 1,501,115 2,289,404
---------------------------------------------------------------
Far Eastern Textile Ltd.
(Textiles-Apparel) 185,051 152,277
---------------------------------------------------------------
Hon Hai Precision Industry Co., Ltd.
(Electronics-Component
Distributors) 585,000 3,058,469
---------------------------------------------------------------
Macronix International Co., Ltd.
(Electronics-Component
Distributors)(a) 1,181,540 1,681,387
---------------------------------------------------------------
Taiwan Semiconductor Manufacturing
Co. Ltd.
(Electronics-Semiconductors)(a) 983,760 2,982,474
---------------------------------------------------------------
United Microelectronics Corp. Ltd.
(Electronics-Component
Distributors)(a) 1,000,400 1,764,046
---------------------------------------------------------------
VIA Technologies Inc.
(Electronics-Semiconductors)(a) 130,000 933,024
===============================================================
16,129,712
===============================================================
THAILAND-1.66%
Advanced Info Service Public Co.
Ltd. (Telephone)(a) 284,000 2,336,015
===============================================================
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED STATES OF AMERICA-1.13%
UTStarcom, Inc. (Communications
Equipment)(a) 79,400 $ 1,588,000
===============================================================
Total Stocks & Other Equity
Interests (Cost $134,055,048) 123,864,633
===============================================================
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
U.S. DOLLAR DENOMINATED CONVERTIBLE
BONDS & NOTES-0.77%
COMPUTERS (HARDWARE)-0.77%
Compal Electronics Inc. (Taiwan),
Conv. Unsec. Bonds, 0.00%,
10/19/05 (Acquired 10/12/00; Cost
$1,000,000)(c)(d) $1,000,000 1,077,500
===============================================================
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-7.06%
STIC Liquid Assets Portfolio(e) 4,959,611 4,959,611
-------------------------------------------------------------
STIC Prime Portfolio(e) 4,959,610 4,959,610
=============================================================
Total Money Market Funds (Cost
$9,919,221) 9,919,221
=============================================================
TOTAL INVESTMENTS-96.05% (Cost
$144,974,269) 134,861,354
=============================================================
OTHER ASSETS LESS LIABILITIES-3.95% 5,543,188
=============================================================
NET ASSETS-100.00% $140,404,542
_____________________________________________________________
=============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GDR - Global Depositary Receipt
Ltd. - Limited
Unsec. - Unsecured
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Security fair valued in accordance with the procedures established by the
Board of Directors.
(c) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The market value at 10/31/00 represented 0.77% of the
Fund's net assets.
(d) Zero coupon bond issued at a discount. The interest rate represents the
coupon rate at which the bond will accrue at a specified future date.
(e) The money market fund and the Fund are affiliated by having the same
investment advisor.
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$144,974,269) $134,861,354
------------------------------------------------------------
Foreign currencies, at value (cost $440,069) 433,251
------------------------------------------------------------
Receivables for:
Investments sold 348,460
------------------------------------------------------------
Capital stock sold 5,888,884
------------------------------------------------------------
Dividends 104,999
------------------------------------------------------------
Investment for deferred compensation plan 13,351
============================================================
Total assets $141,650,299
============================================================
LIABILITIES:
Payables for:
Capital stock reacquired 975,349
------------------------------------------------------------
Deferred compensation plan 13,351
------------------------------------------------------------
Accrued advisory fees 19,655
------------------------------------------------------------
Accrued administrative services fees 4,235
------------------------------------------------------------
Accrued distribution fees 62,740
------------------------------------------------------------
Accrued directors' fees 395
------------------------------------------------------------
Accrued transfer agent fees 66,447
------------------------------------------------------------
Accrued operating expenses 103,585
============================================================
Total liabilities 1,245,757
============================================================
Net assets applicable to shares outstanding $140,404,542
____________________________________________________________
============================================================
NET ASSETS:
Class A $ 93,755,440
____________________________________________________________
============================================================
Class B $ 39,851,704
____________________________________________________________
============================================================
Class C $ 6,797,398
____________________________________________________________
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 200,000,000
------------------------------------------------------------
Outstanding 8,765,621
____________________________________________________________
============================================================
Class B:
Authorized 200,000,000
------------------------------------------------------------
Outstanding 3,796,542
____________________________________________________________
============================================================
Class C:
Authorized 200,000,000
------------------------------------------------------------
Outstanding 647,845
____________________________________________________________
============================================================
Class A:
Net asset value and redemption price per
share $ 10.70
------------------------------------------------------------
Offering price per share:
(Net asset value of $10.70 divided by
94.50%) $ 11.32
____________________________________________________________
============================================================
Class B:
Net asset value and offering price per share $ 10.50
____________________________________________________________
============================================================
Class C:
Net asset value and offering price per share $ 10.49
____________________________________________________________
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of
$187,425) $ 961,627
------------------------------------------------------------
Dividends from affiliated money market funds 423,834
------------------------------------------------------------
Interest 12,271
------------------------------------------------------------
Security lending income 7,105
============================================================
Total investment income 1,404,837
============================================================
EXPENSES:
Advisory fees 985,957
------------------------------------------------------------
Administrative services fees 50,000
------------------------------------------------------------
Custodian fees 189,767
------------------------------------------------------------
Distribution fees -- Class A 230,776
------------------------------------------------------------
Distribution fees -- Class B 307,199
------------------------------------------------------------
Distribution fees -- Class C 71,664
------------------------------------------------------------
Transfer agent fees -- Class A 260,996
------------------------------------------------------------
Transfer agent fees -- Class B 134,172
------------------------------------------------------------
Transfer agent fees -- Class C 31,300
------------------------------------------------------------
Directors' fees 6,620
------------------------------------------------------------
Other 136,314
============================================================
Total expenses 2,404,765
============================================================
Less: Fees waived (126,985)
------------------------------------------------------------
Expenses paid indirectly (1,867)
============================================================
Net expenses 2,275,913
============================================================
Net investment income (loss) (871,076)
============================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT
SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities 1,135,311
------------------------------------------------------------
Foreign currencies (254,607)
============================================================
880,704
============================================================
Change in net unrealized appreciation (depreciation) of:
Investment securities (29,166,419)
------------------------------------------------------------
Foreign currencies (9,626)
============================================================
(29,176,045)
============================================================
Net gain (loss) on investment securities and
foreign currencies (28,295,341)
============================================================
Net increase (decrease) in net assets
resulting from operations $(29,166,417)
____________________________________________________________
============================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
------------ -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (871,076) $ (202,477)
-----------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 880,704 926,182
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies (29,176,045) 6,896,839
=========================================================================================
Net increase (decrease) in net assets resulting from
operations (29,166,417) 7,620,544
=========================================================================================
Distributions to shareholders from net investment income:
Class A -- (43,024)
-----------------------------------------------------------------------------------------
Class B -- (3,910)
-----------------------------------------------------------------------------------------
Class C -- (898)
-----------------------------------------------------------------------------------------
Share transactions-net:
Class A 87,843,677 12,107,278
-----------------------------------------------------------------------------------------
Class B 36,793,037 7,604,535
-----------------------------------------------------------------------------------------
Class C 2,437,146 3,780,454
=========================================================================================
Net increase in net assets 97,907,443 31,064,979
=========================================================================================
NET ASSETS:
Beginning of year 42,497,099 11,432,120
=========================================================================================
End of year $140,404,542 $42,497,099
_________________________________________________________________________________________
=========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $205,259,013 $36,066,914
-----------------------------------------------------------------------------------------
Undistributed net investment income (loss) (27,256) (7,889)
-----------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (54,706,288) (747,438)
-----------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment
securities and foreign currencies (10,120,927) 7,185,512
=========================================================================================
$140,404,542 $42,497,099
_________________________________________________________________________________________
=========================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Asian Growth Fund (the "Fund") is a series portfolio of AIM International
Funds, Inc. (the "Company"). The Company is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of six separate
portfolios. The Fund currently offers three different classes of shares: Class A
shares, Class B shares and Class C shares. Class A shares are sold with a
front-end sales charge. Class B shares and Class C shares are sold with a
contingent deferred sales charge. Matters affecting each portfolio or class will
be voted on exclusively by the shareholders of such portfolio or class. The
assets, liabilities and operations of each portfolio are accounted for
separately. Information presented in these financial statements pertains only to
the Fund. The Fund's investment objective is long-term growth of capital.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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 -- Securities, including restricted
securities, are valued according to the following policy. A security listed
or traded on an exchange (except convertible bonds) is valued at its last
sales price as of the close of the customary trading session on the exchange
where the security is principally traded, or lacking any sales on a
particular day, the security is valued at the closing bid price on that day.
Each security reported on the NASDAQ National Market System is valued at the
last sales price as of the close of the customary trading session on the
valuation date or absent a last sales price, at the closing bid price. Debt
obligations (including convertible bonds) are valued on the basis of prices
provided by an independent pricing service. Prices provided by the pricing
service may be determined without exclusive reliance on quoted prices, and
may reflect appropriate factors such as yield, type of issue, coupon rate and
maturity date. Securities for which market prices are not provided by any of
the above methods are valued based upon quotes furnished by independent
sources and are valued at the last bid price in the case of equity securities
and in the case of debt obligations, the mean between the last bid and asked
prices. Securities for which market quotations are not readily available or
are questionable are valued at fair value as determined in good faith by or
under the supervision of the Company's officers in a manner specifically
authorized by the Board of Directors of the Company. Short-term obligations
having 60 days or less to maturity are valued at amortized cost which
approximates market value. For purposes of determining net asset value per
share, futures and option contracts generally will be valued 15 minutes after
the close of the customary trading session of the New York Stock Exchange
("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Directors.
B. Securities Transactions and Investment Income -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded on the accrual basis from
settlement date. Dividend income is recorded on the ex-dividend date.
On October 31, 2000, undistributed net investment income was increased by
$851,709, undistributed net realized gains decreased by $54,839,554 and paid
in capital increased by $53,987,845 as a result of differing book/tax
treatment of foreign currency transactions and net operating loss
reclassifications. Net assets of the Fund were unaffected by the
reclassification discussed above.
C. Distributions -- Distributions from income and net realized
capital gains, if any, are generally paid annually and recorded on
ex-dividend date. The Fund may elect to use a portion of the proceeds from
redemptions as distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the
requirements of the Internal Revenue Code necessary to qualify as a regulated
investment company and, as such, will not be subject to federal income taxes
on otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
The Fund has a capital loss carryforward of $54,943,768 as of October 31,
2000 which may be carried forward to offset future taxable gains, if any,
which expires, if not previously utilized, in the year 2005.
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
9
<PAGE> 12
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 the 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. Expenses -- Distribution expenses and certain transfer agency
expenses directly attributable to a class of shares are charged to those
classes' operations. All other expenses which are attributable to more than
one class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.95% of the first
$500 million of the Fund's average daily net assets, plus 0.90% of the Fund's
average daily net assets in excess of $500 million. Under the terms of a
sub-advisory agreement between AIM and INVESCO Global Asset Management Limited
("IGAM"), AIM pays IGAM a fee at an annual rate of 0.20% of the first $500
million of the Fund's average daily net assets, plus 0.175% of the Fund's
average daily net assets in excess of $500 million. AIM has contractually agreed
to waive fees and reimburse expenses (excluding interest, taxes, dividend
expense on short sales, extraordinary items and increases in expenses due to
offset arrangements, if any) for Class A, Class B and Class C shares to the
extent necessary to limit total operating expenses of Class A shares to 1.92%
(e.g. if AIM waives 0.10% of Class A expenses, AIM will also waive 0.10% of
Class B and Class C expenses). During the year ended October 31, 2000, AIM
waived fees of $92,285.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended October 31, 2000, AIM was
paid $50,000 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the year ended October 31, 2000, AFS was
paid $249,956 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Company has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. During the year ended October 31,
2000, the Class A, Class B and Class C shares paid AIM Distributors $196,076,
$307,199 and $71,664, respectively, as compensation under the Plans and AIM
Distributors waived fees of $34,700.
AIM Distributors received commissions of $64,327 from sales of the Class A
shares of the Fund during the year ended October 31, 2000. Such commissions are
not an expense of the Fund. They are deducted from, and are not included in, the
proceeds from sales of Class A shares. During the year ended October 31, 2000,
AIM Distributors received $10,620 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, 2000, the Fund paid legal fees of $4,062 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
For the year ended October 31, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) of $1,503 and reductions in custodian
fees of $364 under expense offset arrangements which resulted in a reduction of
the Fund's total expenses of $1,867.
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 Citibank, N.A. 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,
2000, the Fund did not borrow under the line of credit agreement. The
10
<PAGE> 13
funds which are party to the line of credit are charged a commitment fee of
0.09% on the unused balance of the committed line. The commitment fee is
allocated among the funds based on their respective average net assets for the
period.
NOTE 6-PORTFOLIO SECURITIES LOANED
The Fund may lend portfolio securities to the extent of one-third of the Fund's
total assets. Such loans are secured by collateral equal to no less than the
market value, determined daily, of the loaned securities. Such collateral will
be cash or debt securities issued or guaranteed by the U.S. Government or any of
its agencies. Cash collateral pursuant to these loans is invested in short-term
money market instruments or affiliated money market funds. Lending securities
entails a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the borrower did not increase the
collateral accordingly, and the borrower fails to return the securities.
At October 31, 2000, there were no securities on loan to brokers. For the year
ended October 31, 2000, the Fund received fees of $7,105 for securities lending.
NOTE 7-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, 2000 was
$70,839,981 and $59,912,761, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of October 31, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 13,529,198
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (23,851,018)
=========================================================
Net unrealized appreciation (depreciation)
of investment securities $(10,321,820)
_________________________________________________________
=========================================================
Cost of investments for tax purposes is $145,183,174.
</TABLE>
NOTE 8-CAPITAL STOCK
Changes in capital stock outstanding during the years October 31, 2000 and 1999
were as follows:
<TABLE>
<CAPTION>
2000 1999
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 8,636,312 $109,857,994 7,418,728 $ 73,010,343
----------------------------------------------------------------------------------------------------------------------
Class B 1,506,797 19,210,223 1,590,485 15,858,499
----------------------------------------------------------------------------------------------------------------------
Class C 844,431 10,972,106 1,155,486 11,034,900
======================================================================================================================
Issued as reinvestment of dividends:
Class A -- -- 5,228 39,837
----------------------------------------------------------------------------------------------------------------------
Class B -- -- 494 3,756
----------------------------------------------------------------------------------------------------------------------
Class C -- -- 118 897
======================================================================================================================
Issued in connection with acquisitions:*
Class A 5,417,888 76,520,172 -- --
----------------------------------------------------------------------------------------------------------------------
Class B 2,222,098 30,887,919 -- --
----------------------------------------------------------------------------------------------------------------------
Class C 35,470 492,438 -- --
======================================================================================================================
Reacquired:
Class A (7,649,919) (98,534,489) (6,066,544) (60,942,902)
----------------------------------------------------------------------------------------------------------------------
Class B (1,065,606) (13,305,105) (854,740) (8,257,720)
----------------------------------------------------------------------------------------------------------------------
Class C (703,160) (9,027,398) (774,549) (7,255,343)
======================================================================================================================
9,244,311 $127,073,860 2,474,706 $ 23,492,267
______________________________________________________________________________________________________________________
======================================================================================================================
</TABLE>
* As of the close of business on June 9, 2000, the Fund acquired all the net
assets of New Pacific Growth Fund pursuant to a plan of reorganization
approved by New Pacific Growth Fund's shareholders on May 31, 2000. The
acquisition was accomplished by a tax-free exchange of 7,675,456 shares of the
Fund for 16,613,124 shares of New Pacific Growth Fund outstanding as of the
close of business on June 9, 2000. New Pacific Growth Fund's net assets at
that date were $107,900,529, including $11,869,606 of unrealized appreciation,
were combined with those of the Fund. The aggregate net assets of the Fund
immediately before the acquisition were $77,097,622.
11
<PAGE> 14
NOTE 9-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CLASS A
--------------------------------------
NOVEMBER 3, 1997
YEAR ENDED (DATE OPERATIONS
OCTOBER 31, COMMENCED) TO
------------------ OCTOBER 31,
2000(a) 1999(a) 1998
------- ------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.76 $ 7.69 $ 10.00
----------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.07) (0.03) 0.05
----------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 0.01 3.14 (2.36)
====================================================================================================
Total from investment operations (0.06) 3.11 (2.31)
====================================================================================================
Less distributions of dividends from net investment income -- (0.04) --
====================================================================================================
Net asset value, end of period $ 10.70 $ 10.76 $ 7.69
____________________________________________________________________________________________________
====================================================================================================
Total return(b) (0.56)% 40.66% (23.10)%
____________________________________________________________________________________________________
====================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $93,755 $25,420 $ 7,716
____________________________________________________________________________________________________
====================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.92%(c) 1.92% 1.92%(d)
----------------------------------------------------------------------------------------------------
Without fee waivers 2.06%(c) 2.72% 4.88%(d)
====================================================================================================
Ratio of net investment income (loss) to average net assets (0.57)%(c) (0.50)% 0.70%(d)
____________________________________________________________________________________________________
====================================================================================================
Portfolio turnover rate 64% 142% 79%
____________________________________________________________________________________________________
====================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include sales charges and is not annualized for periods less than
one year.
(c) Ratios are based on average daily net assets of $65,936,105.
(d) Annualized.
<TABLE>
<CAPTION>
CLASS B
--------------------------------------
NOVEMBER 3, 1997
YEAR ENDED (DATE OPERATIONS
OCTOBER 31, COMMENCED) TO
------------------- OCTOBER 31,
2000(a) 1999(a) 1998
------- ------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.65 $ 7.63 $ 10.00
----------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.17) (0.13) (0.01)
----------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 0.02 3.16 (2.36)
====================================================================================================
Total from investment operations (0.15) 3.03 (2.37)
====================================================================================================
Less distributions of dividends from net investment income -- (0.01) --
====================================================================================================
Net asset value, end of period $ 10.50 $ 10.65 $ 7.63
____________________________________________________________________________________________________
====================================================================================================
Total return(b) (1.41)% 39.76% (23.70)%
____________________________________________________________________________________________________
====================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $39,852 $12,070 $ 3,030
____________________________________________________________________________________________________
====================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.67%(c) 2.79% 2.80%(d)
----------------------------------------------------------------------------------------------------
Without fee waivers 2.76%(c) 3.59% 5.75%(d)
====================================================================================================
Ratio of net investment income (loss) to average net assets (1.32)%(c) (1.37)% (0.18)%(d)
____________________________________________________________________________________________________
====================================================================================================
Portfolio turnover rate 64% 142% 79%
____________________________________________________________________________________________________
====================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are based on average daily net assets of $30,719,909.
(d) Annualized.
12
<PAGE> 15
NOTE 9-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C
--------------------------------------
NOVEMBER 3, 1997
YEAR ENDED (DATE OPERATIONS
OCTOBER 31, COMMENCED) TO
------------------ OCTOBER 31,
2000(a) 1999(a) 1998
------- ------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $10.63 $ 7.61 $ 10.00
----------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.17) (0.13) (0.01)
----------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 0.03 3.16 (2.38)
====================================================================================================
Total from investment operations (0.14) 3.03 (2.39)
====================================================================================================
Less distributions of dividends from net investment income -- (0.01) --
====================================================================================================
Net asset value, end of period $10.49 $10.63 $ 7.61
____________________________________________________________________________________________________
====================================================================================================
Total return(b) (1.32)% 39.86% (23.90)%
____________________________________________________________________________________________________
====================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $6,797 $5,008 $ 686
____________________________________________________________________________________________________
====================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.67%(c) 2.79% 2.80%(d)
----------------------------------------------------------------------------------------------------
Without fee waivers 2.76%(c) 3.59% 5.75%(d)
====================================================================================================
Ratio of net investment income (loss) to average net assets (1.32)%(c) (1.37)% (0.18)%(d)
____________________________________________________________________________________________________
====================================================================================================
Portfolio turnover rate 64% 142% 79%
____________________________________________________________________________________________________
====================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are based on average daily net assets of $7,166,373.
(d) Annualized.
13
<PAGE> 16
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders of
AIM International Funds, Inc.:
We have audited the accompanying statement of assets and
liabilities of the AIM Asian Growth Fund (a portfolio of
AIM International Funds, Inc.) including the schedule of
investments, as of October 31, 2000, 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 periods in the two-year period then ended and the
period November 3, 1997 (date operations commenced) through
October 31, 1998. 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 auditing
standards generally accepted in the United States of
America. 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, 2000, 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 the AIM Asian
Growth Fund as of October 31, 2000, 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 periods
in the two-year period then ended and the period November
3, 1997 (date operations commenced) through October 31,
1998, in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
December 6, 2000
Houston, Texas
14
<PAGE> 17
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Asian Growth Fund (the "Fund"), a
portfolio of AIM International Funds, Inc., a Maryland corporation (the
"Company"), was held on May 3, 2000. The meeting was held for the following
purposes:
(1)* To elect the following Directors: Charles T. Bauer, Bruce L. Crockett, Owen
Daly II, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H.
Graham, Prema Mathai-Davis, Lewis F. Pennock and Louis S. Sklar.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
reorganization of the Company as a Delaware business trust.
(3) To approve a new Master Investment Advisory Agreement with A I M Advisors,
Inc.
(4) To approve changing the fundamental investment restrictions of the Fund.
(5) To approve changing the investment objective of the Fund so that it is
non-fundamental.
(6) To ratify the selection of KPMG LLP as independent accountants of the Fund
for the fiscal year ending in 2000.
The results of the voting on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
DIRECTORS/MATTER VOTES FOR AGAINST ABSTENTIONS
---------------- ----------- --------- -----------
<S> <C> <C> <C> <C>
(1)* Charles T. Bauer............................................ 158,870,829 N/A 4,812,986
Bruce L. Crockett........................................... 159,101,349 N/A 4,582,466
Owen Daly II................................................ 158,885,093 N/A 4,798,722
Edward K. Dunn, Jr. ........................................ 159,073,001 N/A 4,610,814
Jack M. Fields.............................................. 159,065,031 N/A 4,618,784
Carl Frischling............................................. 158,952,763 N/A 4,731,052
Robert H. Graham............................................ 159,111,735 N/A 4,572,080
Prema Mathai-Davis.......................................... 159,002,065 N/A 4,681,750
Lewis F. Pennock............................................ 159,038,704 N/A 4,645,111
Louis S. Sklar.............................................. 159,052,236 N/A 4,631,579
(2)* Adjournment of approval of an Agreement and Plan of
Reorganization which provides for the reorganization of the
Company as a Delaware business trust........................ 114,017,566 1 49,666,248**
(3) Approval of a new Master Investment Advisory Agreement with
A I M Advisors, Inc......................................... 2,041,950 29,659 519,814**
(4)(a) Approval of changing or eliminating the Fundamental
Restrictions on Issuer Diversification...................... 2,058,462 38,422 494,539**
(4)(b) Approval of changing the Fundamental Restriction on
Borrowing Money and Issuing Senior Securities............... 2,038,895 53,445 499,083**
(4)(c) Approval of changing the Fundamental Restriction on
Underwriting Securities..................................... 2,045,852 48,770 496,801**
(4)(d) Approval of changing the Fundamental Restriction on Industry
Concentration............................................... 2,052,711 45,485 493,227**
(4)(e) Approval of changing the Fundamental Restriction on
Purchasing or Selling Real Estate........................... 2,043,776 50,036 497,611**
(4)(f) Approval of changing the Fundamental Restriction on
Purchasing or Selling Commodities........................... 2,005,041 54,495 531,887**
(4)(g) Approval of changing the Fundamental Restriction on Making
Loans....................................................... 1,984,480 74,913 532,030**
(4)(h) Approval of a new Fundamental Investment Restriction on
Investing all of the Fund's Assets in an
Open-End Fund............................................... 2,016,822 46,675 527,926**
(4)(i) Approval of Eliminating the Fundamental Restriction on
Margin Transactions......................................... 1,969,783 88,708 532,932**
(5) Approval of changing the Investment Objective so that it is
Non-Fundamental............................................. 2,004,583 59,760 527,080**
(6) Ratification of the selection of KPMG LLP as Independent
Accountants of the Fund..................................... 2,437,183 20,073 134,167
</TABLE>
15
<PAGE> 18
The Special Meeting of Shareholders of the Company was reconvened on May
31, 2000. The following matter was then considered:
<TABLE>
<CAPTION>
VOTES WITHHELD/
MATTER VOTES FOR AGAINST ABSTENTIONS
------ ----------- --------- -----------
<S> <C> <C> <C> <C>
(2)* Adjournment of approval of an Agreement and Plan of
Reorganization which provides for the reorganization of the
Company as a Delaware business trust........................ 133,442,713 3,500,075 36,919,454**
</TABLE>
The Special Meeting of Shareholders of the Company was reconvened on June
16, 2000. The following matter was then considered:
<TABLE>
<CAPTION>
VOTES WITHHELD/
MATTER VOTES FOR AGAINST ABSTENTIONS
------ ----------- --------- -----------
<S> <C> <C> <C> <C>
(2)* Approval of an Agreement and Plan of Reorganization which
provides for the reorganization of the Company as a Delaware
business trust.............................................. 148,826,209 4,003,592 28,921,784**
</TABLE>
This matter was not approved by Shareholders.
---------------
* Proposals 1 and 2 required approval by a combined vote of all the portfolios
of AIM International Funds, Inc.
** Includes Broker Non-Votes
---------------
Effective September 30, 2000, Charles T. Bauer retired from his positions as an
officer and director of the Company and Robert H. Graham succeeded Mr. Bauer as
Chairman of the Board.
16
<PAGE> 19
ABOUT YOUR FUND'S BOARD
The board of directors is elected by you to look after your interests as a
mutual-fund shareholder. Directors' responsibilities include choosing investment
advisors for your fund; keeping an eye on performance, operations and expenses;
making decisions regarding dividends and other duties.
Nine of your fund's 10 directors are independent. In other words, they have no
affiliation with AIM except as independent fund directors charged with
representing the interest of fund investors. Representing a cross section of
businesses and industries, they have achieved success and recognition in their
respective fields. They bring their considerable expertise and experience to
their positions as directors.
Listed below are the members of the board of directors of your mutual fund and
their respective titles.
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Robert H. Graham Robert H. Graham 11 Greenway Plaza
Chairman, President and Chairman and President Suite 100
Chief Executive Officer Houston, TX 77046
A I M Management Group Inc. Carol F. Relihan
Senior Vice President and Secretary INVESTMENT ADVISOR
Charles T. Bauer
Chairman Gary T. Crum A I M Advisors, Inc.
A I M Management Group Inc. Senior Vice President 11 Greenway Plaza
Suite 100
Bruce L. Crockett Edgar M. Larsen Houston, TX 77046
Director Vice President
ACE Limited; TRANSFER AGENT
Formerly Director, President, and Dana R. Sutton
Chief Executive Officer Vice President and Treasurer A I M Fund Services, Inc.
COMSAT Corporation P.O. Box 4739
Robert G. Alley Houston, TX 77210-4739
Owen Daly II Vice President
Formerly Director CUSTODIAN
Cortland Trust Inc. Melville B. Cox
Vice President State Street Bank and Trust Company
Albert R. Dowden 225 Franklin Street
Chairman of the Board of Directors, Mary J. Benson Boston, MA 02110
The Cortland Trust and DHJ Media, Inc.; and Assistant Vice President and
Director, Magellan Insurance Company, Assistant Treasurer COUNSEL TO THE FUND
Formerly Director, President and
Chief Executive Officer, Sheri Morris Ballard Spahr
Volvo Group North America, Inc.; and Assistant Vice President and Andrews & Ingersoll, LLP
Senior Vice President, AB Volvo Assistant Treasurer 1735 Market Street
Philadelphia, PA 19103
Edward K. Dunn Jr. Jim A. Coppedge
Chairman, Mercantile Mortgage Corp.; Assistant Secretary COUNSEL TO THE DIRECTORS
Formerly Vice Chairman and President,
Mercantile-Safe Deposit & Trust Co.; and Renee A. Friedli Kramer, Levin, Naftalis & Frankel LLP
President, Mercantile Bankshares Assistant Secretary 919 Third Avenue
New York, NY 10022
Jack Fields P. Michelle Grace
Chief Executive Officer Assistant Secretary DISTRIBUTOR
Twenty First Century, Inc.;
Formerly Member Nancy L. Martin A I M Distributors, Inc.
of the U.S. House of Representatives Assistant Secretary 11 Greenway Plaza
Suite 100
Carl Frischling Ofelia M. Mayo Houston, TX 77046
Partner Assistant Secretary
Kramer, Levin, Naftalis & Frankel LLP AUDITORS
Lisa A. Moss
Prema Mathai-Davis Assistant Secretary KPMG LLP
Formerly Chief Executive Officer, 700 Louisiana
YWCA of the U.S.A. Kathleen J. Pflueger Houston, TX 77002
Assistant Secretary
Lewis F. Pennock
Partner
Pennock & Cooper
Louis S. Sklar
Executive Vice President
Hines Interests
Limited Partnership
</TABLE>
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<CAPTION>
EQUITY FUNDS
<S> <C> <C>
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided
leadership in the mutual fund industry since 1976
MORE AGGRESSIVE MORE AGGRESSIVE and managed approximately $183 billion in assets
AIM Small Cap Opportunities(1) AIM Latin American Growth for more than eight million shareholders, including
AIM Mid Cap Opportunities(2) AIM Developing Markets individual investors, corporate clients and
AIM Large Cap Opportunities(3) AIM European Small Company financial institutions, as of September 30, 2000.
AIM Emerging Growth AIM Asian Growth The AIM Family of Funds--Registered Trademark--
AIM Small Cap Growth(4) AIM Japan Growth is distributed nationwide, and AIM today is the
AIM Aggressive Growth AIM International Emerging Growth eighth-largest mutual fund complex in the United
AIM Mid Cap Growth AIM European Development States in assets under management, according to
AIM Small Cap Equity AIM Euroland Growth Strategic Insight, an independent mutual fund
AIM Capital Development AIM Global Aggressive Growth monitor.
AIM Constellation AIM International Equity AIM is a subsidiary of AMVESCAP PLC, one of the
AIM Dent Demographic Trends AIM Advisor International Value world's largest independent financial services
AIM Select Growth AIM Global Trends companies with $414 billion in assets under
AIM Large Cap Growth AIM Global Growth management as of September 30, 2000.
AIM Weingarten MORE CONSERVATIVE
AIM Mid Cap Equity
AIM Value II SECTOR EQUITY FUNDS
AIM Charter
AIM Value MORE AGGRESSIVE
AIM Blue Chip AIM New Technology
AIM Basic Value AIM Global Telecommunications and Technology
AIM Large Cap Basic Value AIM Global Resources
AIM Balanced AIM Global Financial Services
AIM Advisor Flex AIM Global Health Care
MORE CONSERVATIVE AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(5) MORE CONSERVATIVE
AIM Intermediate Government
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Large Cap Opportunities Fund closed to
new investors Sept. 29, 2000. (4) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (5) AIM Floating Rate Fund was restructured to offer
multiple share classes April 3, 2000. Existing shares were converted to Class B
shares, and Class C shares commenced offering.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Jan. 20, 2001, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. AAG-AR-1
