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Previous: INSURED MUNICIPALS INCOME TRUST 146TH INSURED MULTI SERIES, 497J, 1995-09-29 |
Next: INSURED MUNICIPALS INC TR & INV QUAL TAX EX TR MULTI SER 226, 497J, 1995-09-29 |
<PAGE>
AIM/CIGNA
HERITAGE
- ----------------- [PICTURE APPEARS HERE]
SEMIANNUAL REPORT
JULY 31, 1995 A Lasting Investment
Structure for the
(LOGO OF AIM APPEARS HERE) Retirement of Your Life
<PAGE>
Letter Dear Client:
To Our
Clients We are pleased to report on the performance of the AIM/CIGNA
Heritage Variable Annuity for the six months ended July 31,
1995. This was a period of considerable economic and
financial volatility, marked by rapidly rising equity
markets. While past performance is no guarantee of future
results, all of the active investment vehicles underlying
your annuity gained ground for the period, with most
achieving double-digit growth.
Early in 1995, evidence began to emerge that the Federal
Reserve Board's long-sought "soft landing" for the economy
was taking place. In response to signs of slower growth, the
Fed reduced short-term interest rates in July for the first
time in nearly three years.
The growth rate of the Gross Domestic Product during the
first half of the year was 1.9%. Growth continued to derive
primarily from continued increases in productivity, which
should help to sustain U.S. industry's profitability
recovery. Liquidity was abundant and the dollar was cheap,
helping the U.S. to gain market share in key export markets.
Mortgage rates have fallen sharply since the peak late last
year. As a result, a modest refinancing surge is now under
way.
The domestic equity market was strong in the six months
ended July 31, gaining 21.02% in total return as measured by
the Standard & Poor's Composite Index of 500 stocks with
dividends reinvested. The bond market benefited from
generally declining interest rates and posted strong gains
for the period, led by U.S. Treasury Bonds and high-grade
corporate bonds.
Despite some confusing signs, the outlook is for
reacceleration of economic growth in the second half of 1995
and early 1996. It should be noted that it has now been
almost five years since the S&P 500 Index has experienced a
correction of 10% or more, compared to an average interval of
18 months, and the U.S. equity market appears to be at a
level that provides little tolerance for bad news of any
kind.
The following is a summary of subaccount performance for the
six months ended July 31, 1995:
AIM/CIGNA HERITAGE 7/31/95
<TABLE>
<CAPTION>
BEGINNING AUV(1) ENDING AUV(1)
SUB-ACCOUNT AS OF 2/01/95 AS OF 07/31/95 % CHANGE
<S> <C> <C> <C>
AIM V.I. Capital Appreciation 11.73552614 15.93266855 35.76%
AIM V.I. Diversified Income 9.93099697 10.96790886 10.44%
AIM V.I. Government Securities 9.77511075 10.42919323 6.69%
AIM V.I. Global Utilities 10.23506635 11.26170423 10.03%
AIM V.I. Growth 10.49090794 13.62166999 29.84%
AIM V.I. Growth and Income 10.21572537 12.63051586 23.64%
AIM V.I. International Equity 10.73834133 12.90983231 20.22%
AIM V.I. Money Market 10.37828057 10.60245267 2.16%
AIM V.I. Value 11.52168559 15.16899495 31.66%
(1) Accumulation Unit Value
</TABLE>
To review the performances and portfolios of the Funds used
in the AIM/CIGNA Heritage Variable Annuity, please refer to
the financial statements beginning on page 5.
We continue to do our utmost to assist in providing for your
long-term financial security.
Respectfully submitted,
/s/ Thomas C. Jones
Thomas C. Jones
President
CIGNA Individual Insurance
<PAGE>
CONTENTS <TABLE>
<S> <C>
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund........................................ 5
AIM V.I. Diversified Income Fund.......................................... 18
AIM V.I. Global Utilities Fund............................................ 28
AIM V.I. Government Securities Fund....................................... 38
AIM V.I. Growth Fund...................................................... 45
AIM V.I. Growth and Income Fund........................................... 59
AIM V.I. International Equity Fund........................................ 71
AIM V.I. Money Market Fund................................................ 82
AIM V.I. Value Fund....................................................... 89
Directors and Officers of the Funds....................................... 101
</TABLE>
1
<PAGE>
<TABLE>
<S> <C>
AIM VARIABLE The six months ended July 31, 1995, have been rewarding for investors
INSURANCE in AIM/CIGNA Heritage Variable Annuity.
FUNDS, INC. Early in the year, positive evidence began to suggest that the Federal
Management's Reserve Board's long sought "soft landing" for the economy--a strategy to slow
Discusssion & Analysis growth, but not to the point of recession--was working. More than a year after
the Fed began efforts to slow the economy to a more sustainable 2.5% annual
pace, the results were in--a 2.7% annual growth rate in the first calendar
quarter of 1995. The economy had slowed decidedly from the 5.1% annual rate
it logged in the fourth quarter of 1994.
================================================================================
MARKETS AT A GLANCE
Total returns for 6 months ended July 31, 1995
Index Returns Universe Represented
----- ------- --------------------
Standard & Poor's 21.02% Represents the stock market
Composite of in general.
500 Stocks
(S&P 500)
Russell 2000 22.56% Represents the performance
of small- and medium-size
companies.
Standard & Poor's 9.27% Represents the average
Index of 40 performance of 40 large
Utility Stocks utility companies.
Morgan Stanley 13.52% Represents the performance
Europe-Australia- of foreign company stocks.
Far East Index (EAFE)
Merrill Lynch 10.60% Represents the performance
Corporate Bond of intermediate- and long-
Master Index term corporate securities.
Lehman Brothers 8.78% Represents the average per-
U.S. Treasury formance of intermediate- and
Composite long-term government securities.
Source for performance data: Towers Data Systems HYPO(R). Past performance
cannot guarantee comparable future results. Indexes shown are unmanaged. An
investment cannot be made in any indexes listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
================================================================================
Convinced that the economy was not overheating and that inflation posed no
threat, investors drove up financial markets to extraordinary levels. The Dow
Jones Industrial Average (DJIA), a price-weighted average of 30 publicly traded
large-company stocks, broke through 4000 for the first time on February 23, and
then charged to an all-time high of 4736.29 in July. The index closed on July
31 at 4715.51, up 24.09% for the reporting period. The broader Standard &
Poor's Composite Index of 500 Stocks (S&P 500) tracked the DJIA by gaining
21.02% over the same period.
The stock market advance was led during most of the reporting period by
technology companies--particularly those producing semiconductors, computers,
and software. Declining interest rates spurred strength in financial service
companies such as banks, securities firms and insurance companies.
Falling interest rates also boosted values of existing fixed-income
securities. By July 31, 1995, yields on long-term government bonds had declined
from 7.77% to 6.91%, according to the Lehman Brothers Long-Term U.S. Treasury
Index.
During the second calendar quarter of 1995, analysts anticipated that
economic growth would drop to an annual rate of around 1%. Markets began to
discount the possibility that the Fed would ease short-term interest rates.
Many analysts believed a rate cut could enable the economy to skirt recession
and prolong an expansion already into its fifth year. Even a moderate reduction
in interest rates could save corporations and consumers billions of dollars in
borrowing costs.
On July 6, the Fed lowered the federal funds rate on overnight loans between
banks by 0.25%--the first such action by the central bank since September 1992.
The move, though widely anticipated, was nonetheless celebrated in stock and
bond markets.
</TABLE>
2
<PAGE>
<TABLE>
<C> <S>
Major banks such as Citibank, Chemical Bank, and Chase Manhattan
lowered their prime lending rates from the highest point in almost four years.
Though momentum had begun to slow by the end of the reporting period, it had
been quite a run for financial markets, especially from a long-term perspective.
The historical return on stocks, as represented by the S&P 500 for almost 70
years, has been about 10% per year according to Ibbotson Associates. In the six
months ended July 31, 1995, stocks delivered twice that average with a total
return of 21.02%.
Similarly, the total return of 13.16% reported for the Lehman Brothers
Long-Term U.S. Treasury Index (for the six months ended July 31, 1995) is more
than twice the historical return of 5% for government bonds, according to
Ibbotson.
YOUR INVESTMENT PORTFOLIO
The AIM Variable Insurance (V.I.) Funds were active participants in the
market rally during the six months ended July 31, 1995.
. A strong emphasis on selected technology stocks--almost 50% of the
portfolio as of July 31, 1995--drove up the value of shares in AIM V.I. Capital
Appreciation Fund. The Fund emphasized market leaders such as Microsoft Corp.,
COMPAQ Computer Corp., and Intel Corp., as well as strong, albeit lesser-known
companies exhibiting phenomenal growth potential in domestic and overseas
markets.
. AIM V.I. Diversified Income Fund increased its holdings of intermediate-
and long-term securities as inflation concerns abated.
The portfolio's weighted average maturity was lengthened by about four years
to 11 years as the bond market stabilized and yields declined.
The Fund invests in a diversified portfolio of foreign and U.S. government
and corporate debt securities, including lower rated high-yield debt securities
known as "junk bonds." Junk bonds have a greater risk of price fluctuation and
loss of principal and income than U.S. government securities, such as U.S.
Treasury bonds and bills, which offer a government guarantee as to the
repayment of principal and interest if held to maturity.
. Domestic common stock constituted more than 82% of AIM V. I. Growth and
Income Fund, with primary emphasis on such sectors as pharmaceutical companies,
technology, and financial services. The Fund's holdings were increased to
191 issues.
. AIM V.I. Growth Fund also emphasized technology stocks, particularly
semiconductor companies such as Texas Instruments Inc., Motorola, Inc., and
Intel Corp. Pharmaceutical producers, health care providers, and financial
service companies comprised the next largest share positions in the Fund's
portfolio.
. As interest rates declined, AIM V.I. Government Securities Fund extended
the average maturity of its portfolio to about nine years, and duration to
about five years. As of July 31, 1995, the Fund's investments were approximately
63% in U.S. Treasury and U.S. Agency obligations, 33% in mortgage obligations,
and about 4% in cash and cash equivalent securities.
. AIM V.I. International Equity Fund soundly outperformed the EAFE average
for foreign stocks, largely through its holdings in Europe, particularly those
stocks of larger, more defensive companies which offer a potential for growth.
The Fund maintained a large position in Japan where investors are encouraged by
steps the Bank of Japan is taking to stir that economy out of recession.
. AIM V.I. Global Utilities Fund remained invested primarily in common
stocks, particularly issues in electric power companies which have benefited
from declining interest rates and improving market conditions. On May 1, 1995,
the Fund, formerly AIM V.I. Utilities Fund, broadened its investment strategy
to permit up to 80% of its assets to be invested in foreign securities, and was
renamed AIM V.I. Global Utilities Fund. By July 31,
</TABLE>
3
<PAGE>
<TABLE>
<C> <S>
1995, more than 25% of the Fund's portfolio was invested overseas.
. AIM V.I. Money Market Fund extended the average maturity of its portfolio
as interest rates declined. The Fund was broadly diversified in high quality
securities which met the primary criteria for safety, liquidity, and yield.
. AIM V.I. Money Market Fund is neither insured nor guaranteed by the U.S.
government, and there can be no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share.
. AIM V.I. Value Fund's strong performance during the reporting period can
be attributed to its emphasis on technology stocks and interest-rate sensitive
issues such as financial service providers. The Fund also increased its
weighting in such sectors as medical services and telecommunications.
Holdings in the AIM V.I. Funds are subject to change, and there is no
guarantee any Fund will continue to hold any particular security or stay
invested in any specific country.
OUTLOOK FOR THE FUTURE
Given the prospects for low, stable interest rates and continued moderate
growth in the economy, the outlook appears positive for financial markets
in the coming months.
Even though the advance in stocks has slowed from the breakneck pace of
earlier months, earnings estimates remain strong for several sectors,
particularly selected technology groups. Defensive companies should perform
well in the more moderate economy, and financial services companies should
continue to benefit from the more favorable interest rate environment.
While the steep decline in bond yields appears to be largely over, there
seems to be little concern over inflation, and confidence in the central bank's
monetary policy remains high.
Of course, no one can predict the future direction of financial markets,
interest rates, or the economy. We at A I M Advisors, Inc. (AIM) remain
committed to a bottom-up investment strategy to search for attractive portfolio
positions one security at a time. AIM management teams rely on what is known
about a company and its securities rather than projections about the future.
Our equity management teams let the earnings of companies take the Funds
into--and out of--stocks chosen as portfolio investments. This exclusive
emphasis on companies which generate accelerating earnings maximizes the
potential for portfolio growth.
Our fixed-income fund management teams, working within predetermined maturity
targets, use an ongoing review process that concentrates on the credit quality
and structure of each security, and the impact of each security on the
portfolio.
We believe our faithful application of this research-based, quality-oriented
investment discipline is largely responsible for AIM's continued growth in
assets under management since 1976 to $35.8 billion as of July 31, 1995.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
<C> <C> <S> <C>
AIM V.I. CAPITAL MARKET
APPRECIATION FUND SHARES VALUE
SCHEDULE OF ------ ------
INVESTMENTS
July 31, 1995 COMMON STOCKS - 87.16%
(Unaudited)
ADVERTISING/BROADCASTING - 0.35%
4,600 Belo (A.H.) Corp...................................... $ 146,625
10,800 Infinity Broadcasting Corp.(a)........................ 399,600
-----------
546,225
-----------
AUTOMOBILE/TRUCK PARTS & TIRES - 0.51%
11,400 Echlin Inc............................................ 444,600
15,400 Mark IV Industries, Inc. ............................. 359,975
-----------
804,575
-----------
BEVERAGES - 0.53%
19,300 Canandaigua Wine Co., Inc. - Class A(a)............... 844,375
-----------
BIOTECHNOLOGY - 0.23%
4,300 AMGEN, Inc.(a)........................................ 366,037
-----------
BUILDING MATERIALS - 0.16%
8,000 Black & Decker Corp................................... 253,000
-----------
BUSINESS SERVICES - 1.76%
3,400 Equifax, Inc.......................................... 130,475
19,300 Healthcare COMPARE Corp.(a)........................... 656,200
2,000 Interim Services Inc.(a).............................. 49,000
17,000 Manpower Inc.......................................... 478,125
11,100 Olsten Corp........................................... 388,500
12,000 Sensormatic Electronics Corp.......................... 330,000
21,126 Value Health, Inc.(a)................................. 744,718
-----------
2,777,018
-----------
CHEMICALS - 0.11%
6,150 Hanna (M.A.) Co....................................... 169,894
-----------
CHEMICALS (SPECIALTY) - 0.26%
14,800 Airgas Inc.(a)........................................ 414,400
-----------
COMPUTER MINI/PCS - 2.06%
19,200 COMPAQ Computer Corp.(a).............................. 974,400
23,200 Dell Computer Corp.(a)................................ 1,508,000
16,000 Sun Microsystems, Inc.(a)............................. 770,000
-----------
3,252,400
-----------
COMPUTER NETWORKING - 4.44%
12,700 Alantec Corp.(a)...................................... 457,200
24,700 Bay Networks, Inc.(a)................................. 1,108,412
15,000 Cabletron Systems, Inc.(a)............................ 780,000
15,000 Cidco, Inc.(a)........................................ 502,500
29,900 Cisco Systems, Inc.(a)................................ 1,666,925
5,500 Lannet Data Communications, Inc.(a)................... 139,563
9,600 Madge N.V.(a)......................................... 231,600
12,000 Network Equipment Technologies, Inc.(a)............... 363,000
9,400 Optical Data Systems, Inc.(a)......................... 293,750
20,000 3Com Corp.(a)......................................... 1,481,250
-----------
7,024,200
-----------
</TABLE>
5
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- ------
<C> <S> <C>
COMPUTER PERIPHERALS - 4.41%
20,000 Adaptec, Inc.(a)....................................... $ 855,000
18,300 Alliance Semiconductor Corp.(a)........................ 1,281,000
9,300 American Power Conversion Corp.(a)..................... 174,375
12,800 Digi International, Inc.(a)............................ 315,200
55,000 EMC Corp.(a)........................................... 1,258,125
6,900 Filenet Corp.(a)....................................... 302,737
18,600 Microchip Technology, Inc.(a).......................... 716,100
10,700 Oak Technology, Inc.(a)................................ 494,875
17,100 Read-Rite Corp.(a)..................................... 705,375
6,000 U.S. Robotics Corp.(a)................................. 873,000
-----------
6,975,787
-----------
COMPUTER SOFTWARE & SERVICES - 9.80%
12,700 Adobe System, Inc...................................... 784,225
7,400 Autodesk, Inc.......................................... 334,850
8,200 BMC Software, Inc.(a).................................. 635,500
18,000 Cadence Design System, Inc.(a)......................... 679,500
4,700 Ceridian Corp.(a)...................................... 194,462
17,000 Cheyenne Software, Inc.(a)............................. 316,625
19,000 Computer Associates International, Inc................. 1,394,125
21,200 Corel Corp.(a)......................................... 389,550
6,500 Fiserv, Inc.(a)........................................ 183,625
17,900 FTP Software, Inc.(a).................................. 519,100
12,700 HBO & Co............................................... 701,675
2,300 Hyperion Software Corp.(a)............................. 119,025
28,000 Informix Corp.(a)...................................... 829,500
6,000 Microsoft Corp.(a)..................................... 543,000
15,200 Network General Corp.(a)............................... 516,800
36,950 Oracle Corp.(a)........................................ 1,547,281
19,500 Pairgain Technologies Inc.(a).......................... 516,750
19,000 Parametric Technology Corp.(a)......................... 1,068,750
6,200 Platinum Technology, Inc.(a)........................... 153,450
15,000 Policy Management Systems Corp.(a)..................... 804,375
12,300 Rational Software Corp.(a)............................. 206,025
18,500 Silicon Graphics Inc.(a)............................... 777,000
11,800 Sterling Software, Inc.(a)............................. 483,800
24,500 Symantec Corp.(a)...................................... 667,625
17,500 Synopsys, Inc.(a)...................................... 1,128,750
-----------
15,495,368
-----------
CONGLOMERATES - 0.14%
3,884 Tyco Laboratories, Inc................................. 213,620
-----------
CONSUMER NONDURABLES - 0.17%
6,400 Department 56, Inc.(a)................................. 276,000
-----------
COSMETICS & TOILETRIES - 0.35%
15,400 General Nutrition Co.(a)............................... 550,550
-----------
ELECTRONIC COMPONENTS - 3.43%
4,000 Ametek Inc............................................. 72,500
11,600 Amphenol Corp.(a)...................................... 314,650
6,100 Methode Electronics, Inc............................... 135,725
1,250 Molex Inc.............................................. 53,125
3,125 Molex Inc.-Class A..................................... 125,000
3,750 Parker-Hannifin Corp................................... 152,813
30,000 Philips Electronics N.V.-New York Shares-ADR........... 1,477,500
7,400 Recoton Corp.(a)....................................... 153,550
</TABLE>
6
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
ELECTRONIC COMPONENTS (CONTINUED)
8,500 Symbol Technologies, Inc.(a).......................... $ 324,063
8,500 Tektronix Inc......................................... 409,063
26,900 Teradyne Inc.(a)...................................... 2,202,438
-----------
5,420,427
-----------
ELECTRONICS/PC DISTRIBUTORS - 1.08%
17,000 Arrow Electronics, Inc.(a)............................ 960,500
14,400 Avnet, Inc............................................ 748,800
-----------
1,709,300
-----------
FINANCE (ASSET MANAGEMENT) - 0.00%
100 XTRA Corp............................................. 4,588
-----------
FINANCE (CONSUMER CREDIT) - 2.77%
7,000 ADVANTA Corp. - Class A............................... 313,250
20,000 Credit Acceptance Corp.(a) ........................... 452,500
12,000 First USA, Inc........................................ 547,500
11,700 Green Tree Financial Corp............................. 633,263
36,800 MBNA Corp............................................. 1,320,200
15,100 Medaphis Corp.(a)..................................... 381,275
37,000 Mercury Finance Co. .................................. 730,750
-----------
4,378,738
-----------
FUNERAL SERVICES - 1.15%
19,100 Loewen Group, Inc. ................................... 675,662
24,000 Service Corp. International........................... 819,000
10,000 Stewart Enterprises Inc. - Class A.................... 326,250
-----------
1,820,912
-----------
GAMING - 1.04%
7,500 Harrah's Entertainment Inc.(a)........................ 201,562
18,500 Mirage Resorts, Inc.(a)............................... 575,813
27,000 Players International, Inc.(a)........................ 590,625
3,750 Promus Companies Inc.(a).............................. 92,344
11,900 Trump Hotels & Casino Resort(a)....................... 177,013
-----------
1,637,357
-----------
HOMEBUILDING - 0.26%
17,500 Clayton Homes, Inc. .................................. 350,000
2,000 Oakwood Homes Corp.................................... 60,500
-----------
410,500
-----------
HOTELS/MOTELS - 0.68%
3,500 Doubletree Corp.(a)................................... 79,625
13,000 Hospitality Franchise System(a)....................... 572,000
15,000 La Quinta Motor Inns, Inc............................. 421,875
-----------
1,073,500
-----------
INSURANCE (LIFE & HEALTH) - 0.12%
6,000 Equitable of Iowa Companies........................... 195,000
-----------
LEISURE & RECREATION - 0.59%
8,500 Avid Technology, Inc.(a).............................. 377,187
11,100 Callaway Golf Co...................................... 166,500
13,500 Mattel, Inc........................................... 381,375
-----------
925,062
-----------
MACHINE TOOLS - 0.19%
8,000 Kennametal Inc........................................ 295,000
-----------
</TABLE>
7
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
MACHINERY (HEAVY) - 0.19%
5,700 AGCO Corp............................................. $ 303,525
-----------
MACHINERY (MISCELLANEOUS) - 0.75%
9,400 ASM Lithography Holding, N.V.(a)...................... 526,400
15,600 Thermo Electron Corp.(a).............................. 666,900
-----------
1,193,300
-----------
MEDICAL (DRUGS) - 2.21%
5,755 Bergen Brunswig Corp. - Class A....................... 124,452
24,250 Cardinal Health, Inc.................................. 1,230,688
6,000 Elan Corp. PLC - ADR(a)............................... 252,000
15,000 Forest Laboratories, Inc.(a).......................... 665,625
23,800 Mylan Laboratories, Inc............................... 716,975
5,300 Teva Pharmaceutical Industries Ltd. - ADR............. 210,344
8,000 Watson Pharmaceuticals Inc.(a)........................ 288,000
-----------
3,488,084
-----------
MEDICAL INSTRUMENTS/PRODUCTS - 2.99%
20,700 Biomet, Inc. (a)...................................... 315,675
22,700 Boston Scientific Corp.(a)............................ 828,550
18,000 Cordis Corp.(a)....................................... 1,300,500
7,900 Heart Technology, Inc.(a)............................. 187,625
1,800 Idexx Laboratories Inc.(a)............................ 55,350
8,100 Invacare Corp. ....................................... 356,400
12,000 Nellcor Inc.(a)....................................... 630,000
14,400 St. Jude Medical, Inc................................. 788,400
9,300 Sunrise Medical, Inc.(a).............................. 254,588
-----------
4,717,088
-----------
MEDICAL SERVICES - 10.96%
39,100 Apria Healthcare Group Inc.(a)........................ 1,270,750
26,980 Columbia\HCA Healthcare Corp.......................... 1,322,020
16,000 Community Health Systems(a)........................... 628,000
9,900 Coventry Corp.(a)..................................... 158,400
17,200 Genesis Health Ventures, Inc.(a)...................... 516,000
37,200 Health Care & Retirement Corp.(a)..................... 1,190,400
30,450 Health Management Associates, Inc.(a)................. 978,207
16,600 Healthsource, Inc.(a)................................. 603,825
62,900 Healthsouth Corp.(a).................................. 1,210,825
32,700 Horizon Healthcare Corp.(a)........................... 739,837
14,000 Humana Inc.(a)........................................ 271,250
25,200 Integrated Health Services, Inc....................... 812,700
24,800 Lincare Holdings, Inc.(a)............................. 861,800
14,800 Living Centers of America(a).......................... 477,300
30,800 Manor Care, Inc....................................... 997,150
19,000 Mid Atlantic Medical Services, Inc.(a)................ 372,875
10,800 Omnicare, Inc. ....................................... 334,800
29,000 OrNda Healthcorp(a)................................... 576,375
14,600 Oxford Health Plans, Inc.(a).......................... 753,725
3,000 Pacificare Health Systems, Inc. - Class A(a).......... 179,250
3,100 Pacificare Health Systems, Inc. - Class B(a).......... 187,550
13,000 Quorum Health Group, Inc.(a).......................... 279,500
18,200 Sun Healthcare Group, Inc.(a)......................... 268,450
19,100 Sybron International Corp.(a)......................... 790,263
8,000 Theratx, Inc.(a)...................................... 123,000
7,000 United Healthcare Corp. .............................. 316,750
34,100 Vencor, Inc.(a)....................................... 1,103,988
-----------
17,324,990
-----------
</TABLE>
8
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
OFFICE AUTOMATION - 0.49%
26,000 Danka Business Systems PLC-ADR........................ $ 776,750
-----------
OFFICE PRODUCTS - 0.49%
7,100 Avery Dennison Corp. ................................. 284,888
15,400 Reynolds & Reynolds Co. - Class A..................... 487,025
-----------
771,913
-----------
OIL EQUIPMENT & SUPPLIES - 0.10%
9,300 Smith International, Inc.(a).......................... 158,100
-----------
PAPER & FOREST PRODUCTS - 0.21%
6,000 Champion International Corp. ......................... 338,250
-----------
POLLUTION CONTROL - 0.17%
5,900 Asyst Technologies, Inc.(a)........................... 271,400
-----------
RESTAURANTS - 0.50%
13,900 Cracker Barrel Old Country Store...................... 291,900
9,900 Morrison Restaurants, Inc............................. 231,412
7,500 Outback Steakhouse, Inc.(a)........................... 261,563
-----------
784,875
-----------
RETAIL (FOOD & DRUG) - 1.25%
6,400 Casey's General Stores, Inc. ......................... 128,800
13,500 Eckerd (Jack) Corp.(a)................................ 447,187
23,700 Kroger Co. (The)(a)................................... 737,662
17,400 Safeway Inc.(a)....................................... 665,550
-----------
1,979,199
-----------
RETAIL STORES - 5.42%
17,500 Autozone, Inc.(a)..................................... 455,000
7,600 Baby Superstore, Inc.(a).............................. 362,900
12,000 Bed Bath & Beyond Inc.(a)............................. 372,000
14,700 Circuit City Stores, Inc. ............................ 545,737
17,300 Consolidated Stores Corp.(a).......................... 384,925
12,250 Dollar General Corp. ................................. 413,437
8,200 Gymboree Corp.(a)..................................... 253,175
9,000 Harcourt General, Inc. ............................... 405,000
17,800 Heilig-Meyers Co. .................................... 449,450
8,500 Mac Frugal's Bargains Close-Outs Inc.(a).............. 149,812
7,000 Men's Wearhouse, Inc. (The)(a)........................ 236,250
12,000 Micro Warehouse, Inc.(a).............................. 585,000
23,800 Office Depot, Inc.(a)................................. 699,125
14,600 Pep Boys - Manny, Moe & Jack.......................... 410,625
17,200 Sports Authority, Inc. (The)(a)....................... 453,650
43,650 Staples, Inc.(a)...................................... 982,125
3,200 Sunglass Hut International(a)......................... 129,600
9,300 Talbots, Inc. ........................................ 383,625
1,200 Tandy Corp. .......................................... 71,250
21,400 Viking Office Products Inc.(a)........................ 754,350
4,500 Waban, Inc.(a)........................................ 74,813
-----------
8,571,849
-----------
SCIENTIFIC INSTRUMENTS - 0.52%
15,000 Varian Associates, Inc. .............................. 826,875
-----------
</TABLE>
9
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
SEMICONDUCTORS - 17.63%
27,000 Altera Corp.(a)....................................... $ 1,510,312
30,650 Analog Devices, Inc.(a)............................... 1,111,062
20,400 Applied Materials, Inc.(a)............................ 2,111,400
25,600 Atmel Corp.(a)........................................ 1,744,000
28,000 Cirrus Logic, Inc.(a)................................. 1,288,000
12,450 Credence Systems Corp.(a)............................. 435,750
23,500 Cypress Semiconductor Corp.(a)........................ 1,239,625
7,000 Electroglas Inc.(a)................................... 507,500
30,000 Integrated Device Technology, Inc.(a)................. 1,878,750
10,000 Intel Corp. .......................................... 650,000
22,500 International Rectifier Corp.(a)...................... 900,000
9,300 KLA Instruments Corp.(a).............................. 806,775
21,300 LAM Research Corp.(a)................................. 1,453,725
14,200 Lattice Semiconductor Corp.(a)........................ 585,750
11,700 Linear Technology Corp. .............................. 906,750
37,200 LSI Logic Corp.(a).................................... 1,739,100
6,800 Maxim Integrated Products, Inc.(a).................... 402,050
20,000 MEMC Electronic Materials, Inc.(a).................... 602,500
26,800 Micron Technology Inc. ............................... 1,675,000
9,500 Novellus Systems, Inc.(a)............................. 757,625
6,000 SCI Systems, Inc.(a).................................. 160,500
6,900 Sierra Semiconductor(a)............................... 307,050
10,900 Silicon Valley Group Inc.(a).......................... 508,212
6,000 Solectron Corp.(a).................................... 218,250
7,800 Tencor Instruments(a)................................. 343,200
9,100 Texas Instruments Inc. ............................... 1,421,875
36,200 VLSI Technology Inc.(a)............................... 1,072,425
12,300 Xilinx Inc.(a)........................................ 1,474,462
1,200 Zilog Inc.(a)......................................... 55,200
-----------
27,866,848
-----------
SHOES & RETAIL APPAREL - 0.42%
12,500 Nine West Group, Inc.(a).............................. 506,250
6,000 Wolverine World Wide, Inc. ........................... 150,000
-----------
656,250
-----------
TELECOMMUNICATIONS - 5.68%
9,800 ADC Telecommunications, Inc.(a)....................... 379,750
10,400 Allen Group........................................... 369,200
5,975 Andrew Corp.(a)....................................... 354,766
5,100 Aspect Telecommunications(a).......................... 261,375
23,100 DSC Communications Corp.(a)........................... 1,241,625
10,000 General Instrument Corp.(a)........................... 368,750
9,450 Glenayre Technologies, Inc.(a)........................ 590,625
21,800 Nokia Corp. - ADR..................................... 1,433,350
14,900 Octel Communications Corp.(a)......................... 575,512
28,000 Scientific-Atlanta Inc................................ 602,000
4,400 Stratacom, Inc.(a).................................... 238,700
6,100 Tekelec(a)............................................ 144,112
53,200 Telefonaktiebolaget L.M. Ericsson - ADR............... 990,850
18,300 Tellabs, Inc.(a)...................................... 814,350
9,300 U.S. Long Distance Corp.(a)........................... 159,262
15,400 Worldcom, Inc.(a)..................................... 460,075
-----------
8,984,302
-----------
TELEPHONE - 0.02%
1,000 Century Telephone Enterprises, Inc. .................. 28,500
-----------
</TABLE>
10
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
TEXTILES - 0.42%
13,950 Nautica Enterprises, Inc.(a)..................... $ 378,394
8,900 Tommy Hilfiger Corp.(a).......................... 281,463
------------
659,857
------------
TRUCKING - 0.15%
10,800 TNT Freightways Corp............................. 237,600
------------
Total Common Stocks...................... 137,773,388
------------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
U.S. TREASURY BILLS - 7.47%
U.S. Treasury Bills(b)
$12,000,000(c) 5.48%, 11/16/95.................................. 11,808,480
------------
Total U.S. Treasury Bills................ 11,808,480
------------
REPURCHASE AGREEMENT - 5.30%(d)
8,377,182 Daiwa Securities America, Inc.
5.83%, 08/01/95(e).............................. 8,377,182
------------
Total Repurchase Agreement............... 8,377,182
------------
TOTAL INVESTMENT SECURITIES - 99.93%............. 157,959,050
OTHER ASSETS LESS LIABILITIES - 0.07%............ 109,558
------------
NET ASSETS - 100.00%............................. $158,068,608
============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) U.S. Treasury bills are traded on a discount
basis. In such cases the interest rate shown
represents the rate of discount paid or received
at the time of purchase by the Fund.
(c) A portion of the principal amount was pledged as
collateral for open futures contracts at 07/31/95.
See Note 6 to Financial Statements.
(d) Collateral on repurchase agreements, including the
Fund's pro-rata interest in joint repurchase
agreements, is taken into possession by the Fund
upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its
market value as being 102% of the sales price of
the repurchase agreement. The investments in some
repurchase agreements are through participation in
joint accounts with other mutual funds managed by
the investment advisor.
(e) Joint repurchase agreement entered into 07/31/95
with a maturing value of $639,645,731.
Collateralized by $620,652,000 U.S. Treasury
obligations, 0% to 11.25% due 12/14/95 to
05/15/21.
Abbreviations:
ADR - American Depositary Receipt
</TABLE>
See Notes to Financial Statements.
11
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. CAPITAL ASSETS:
APPRECIATION FUND
STATEMENT OF Investments, at value (cost $115,965,694)......................... $157,959,050
ASSETS AND Receivables for:
LIABILITIES Investments sold................................................ 606,780
July 31, 1995 Capital stock sold.............................................. 506,121
(Unaudited) Dividends and interest.......................................... 20,353
Investment for deferred compensation plan......................... 5,068
Organizational costs, net......................................... 7,954
Other assets...................................................... 1,305
------------
Total assets.................................................. 159,106,631
------------
LIABILITIES:
Payables for:
Investments purchased........................................... 918,104
Deferred compensation........................................... 5,068
Accrued advisory fees............................................. 80,826
Accrued directors' fees........................................... 490
Accrued administrative services fees.............................. 2,914
Accrued operating expenses........................................ 30,621
------------
Total liabilities............................................. 1,038,023
------------
Net assets applicable to shares outstanding....................... $158,068,608
============
Capital shares, $.001 par value per share:
Authorized...................................................... 250,000,000
============
Outstanding..................................................... 9,594,730
============
Net asset value, offering and redemption price per share.......... $ 16.47
============
</TABLE>
See Notes to Financial Statements.
12
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. CAPITAL INVESTMENT INCOME:
APPRECIATION FUND
STATEMENT OF Dividends...................................................... $ 555,499
OPERATIONS Interest....................................................... 162,191
For the -----------
six months ended Total investment income....................................... 717,690
July 31, 1995 -----------
(Unaudited) EXPENSES:
Advisory fees.................................................. 372,238
Custodian fees................................................. 31,703
Administrative services fees................................... 19,000
Directors' fees and expenses................................... 3,194
Organizational costs........................................... 1,446
Other.......................................................... 9,119
-----------
Total expenses................................................ 436,700
-----------
Net investment income............................................ 280,990
-----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES
AND FUTURES CONTRACTS:
Net realized gain (loss) from:
Investment securities.......................................... (563,578)
Futures contracts.............................................. 1,211,945
-----------
648,367
-----------
Unrealized appreciation (depreciation) of:
Investment securities.......................................... 36,414,017
Futures contracts.............................................. (19,575)
-----------
36,394,442
-----------
Net gain on investment securities and futures contracts.......... 37,042,809
-----------
Net increase in net assets resulting from operations............. $37,323,799
===========
</TABLE>
See Notes to Financial Statements.
13
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C> <C>
AIM V.I. CAPITAL JULY 31, JANUARY 31,
APPRECIATION FUND 1995 1995
STATEMENT ------------ -----------
OF CHANGES OPERATIONS:
IN NET ASSETS
For the six months Net investment income............................. $ 280,990 $ 285,894
ended July 31, 1995 Net realized gain (loss) from investment
and the year ended securities and futures contracts................. 648,367 (3,834,141)
January 31, 1995 Net unrealized appreciation of investment
(Unaudited) securities and futures
contracts ....................................... 36,394,442 2,142,566
------------ -----------
Net increase (decrease) in net assets resulting
from operations................................. 37,323,799 (1,405,681)
Net increase from capital stock transactions...... 32,567,537 54,473,386
Distributions to shareholders from net investment
income........................................... -- (244,886)
------------ -----------
Net increase in net assets....................... 69,891,336 52,822,819
NET ASSETS:
Beginning of period............................... 88,177,272 35,354,453
------------ -----------
End of period..................................... $158,068,608 $88,177,272
============ ===========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in)........ $118,714,934 $86,147,397
Undistributed net investment income............... 309,767 28,777
Undistributed net realized gain (loss) from
investment securities and futures transactions .. (3,363,899) (4,012,266)
Unrealized appreciation of investment securities
and futures contracts ........................... 42,407,806 6,013,364
------------ -----------
$158,068,608 $88,177,272
============ ===========
</TABLE>
See Notes to Financial Statements.
14
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
AIM V.I. CAPITAL NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
APPRECIATION FUND AIM Variable Insurance Funds, Inc. (the "Company"), is
NOTES TO a Maryland corporation organized on January 22, 1993,
FINANCIAL and is registered under the Investment Company Act of
STATEMENTS 1940 (the "1940 Act"), as amended, as an open-end,
JULY 31, 1995 series, management investment company consisting of nine
(UNAUDITED) portfolios: AIM V.I. Capital Appreciation Fund (the
"Fund"), AIM V.I. Diversified Income Fund, AIM V.I.
Government Securities Fund, AIM V.I. Growth Fund, AIM
V.I. Growth and Income Fund, AIM V.I. International
Equity Fund, AIM V.I. Money Market Fund, AIM V.I. Global
Utilities Fund and AIM V.I. Value Fund. Matters
affecting each portfolio are voted on exclusively by the
shareholders of such portfolio. The assets, liabilities
and operations of each portfolio are accounted for
separately. Information presented in these financial
statements pertains only to the Fund. Currently shares
of the Fund are sold only to insurance company separate
accounts to fund the benefits of variable annuity
contracts.
The following is a summary of the significant accounting
policies followed by the Fund in the presentation of its
financial statements.
A. Security Valuations - A security listed or traded on
an exchange 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 mean between the closing bid and
asked prices on that day. Each security traded in the
over-the-counter market (but not including securities
reported on the NASDAQ National Market System) is
valued at the mean between the last bid and asked
prices based upon quotes furnished by market makers
for such securities. Each security reported on the
NASDAQ National Market System is valued at the last
sales price on the valuation date. Securities for
which market quotations are not readily available are
valued at fair value as determined in good faith by
or under the supervision of the Fund's officers in a
manner specifically authorized by the Board of
Directors. Short-term obligations having 60 days or
less to maturity are valued at amortized cost which
approximates market value.
B. Securities Transactions, Investment Income and
Distributions - Securities transactions are accounted
for on a trade date basis. Interest income is
recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income and
distributions to shareholders are recorded on the ex-
dividend date. Realized gains or losses from
securities transactions are recorded on the
identified cost basis.
C. Stock Index Futures Contracts - The Fund may purchase
or sell stock index futures contracts as a hedge
against changes in market conditions. Initial margin
deposits required upon entering into futures
contracts are satisfied by the segregation of
specific securities or cash, and/or by securing a
standby letter of credit from a major commercial
bank, as collateral, for the account of the broker
(the Fund's agent in acquiring the futures position).
During the period the futures contract is open,
changes in the value of the contract are recognized
as unrealized gains or losses by "marking to market"
on a daily basis to reflect the market value of the
contract at the end of each day's trading. Variation
margin payments are made or received depending upon
whether unrealized gains or losses are incurred. When
the contract is closed, the Fund records a realized
gain or loss equal to the difference between the
proceeds from (or cost of) the closing transaction
and the Fund's basis in the contract. Risks include
the possibility of an illiquid market and the change
in the value of the contract may not correlate with
changes in the securities being hedged.
D. Federal Income Taxes - For federal income tax
purposes, each Portfolio in the Company is taxed as a
separate entity. It is the Fund's policy to continue
to comply with the requirements of the Internal
Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income
and capital gains to its shareholders. Therefore, no
provision for federal income taxes is recorded in the
financial statements. The Fund had capital loss
carryforwards (which may be carried forward to offset
future taxable capital gains, if any) of $3,239,451,
which expires, if not previously utilized, through
the year 2003.
E. Organizational Costs - Organizational costs for the
Fund of $14,461 are being amortized over five years.
15
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
NOTE 2 - INVESTMENT 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 master advisory agreement, the
Fund pays an advisory fee to AIM at an annual rate of
0.65% of the first $250 million of the Fund's average
daily net assets, plus 0.60% of the Fund's average daily
net assets in excess of $250 million. This agreement
requires AIM to reduce its fees or, if necessary, make
payments to the Fund to the extent required to satisfy
any expense limitations imposed by the securities laws
or regulations thereunder of any state in which the
Fund's shares are qualified for sale.
Pursuant to a master administrative services agreement
between the Company and AIM, with respect to the Fund,
the Company has agreed to reimburse certain
administrative costs incurred in providing accounting
services to the Fund. During the six months ended July
31, 1995, AIM was reimbursed $19,000 for such services.
The Company has entered into a master distribution
agreement with A I M Distributors, Inc. ("AIM
Distributors") to serve as the distributor of the Fund's
shares.
Certain officers and directors of the Company are
officers of AIM and AIM Distributors.
The Fund incurred legal fees of $936 for services
rendered by Kramer, Levin, Naftalis, Nessen, Kamin &
Frankel as counsel to the Board of Directors. A member
of that firm is a director of the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued
to each director who is not an "interested person" of
AIM. The Company may invest a director's fees, if so
elected by such director, in mutual fund shares in
accordance with a deferred compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other
than short-term securities) purchased and sold by the
Fund during the six months ended July 31, 1995 was
$57,336,308 and $21,667,894, respectively. The amount of
unrealized appreciation (depreciation) of investment
securities on a tax basis as of July 31, 1995 is as
follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities......... $43,057,842
Aggregate unrealized (depreciation) of investment securities....... (1,075,756)
-----------
Net unrealized appreciation of investment securities............... $41,982,086
===========
</TABLE>
Cost of investments for tax purposes is $115,976,964.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding during the six
months ended July 31, 1995 and the year ended January
31, 1995 were as follows:
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold.......................... 2,606,740 $37,163,839 4,817,657 $58,178,417
Issued as reinvestment of
distributions................. -- -- 20,683 244,886
Reacquired..................... (330,365) (4,596,302) (330,372) (3,949,917)
--------- ----------- --------- -----------
2,276,375 $32,567,537 4,507,968 $54,473,386
========= =========== ========= ===========
</TABLE>
NOTE 6 - OPEN FUTURES CONTRACTS
On July 31, 1995, $423,000 principal amount of U.S.
Treasury Bills were pledged as collateral to cover margin
requirements for open futures contracts:
Open futures contracts at July 31, 1995 were as
follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT NO. OF CONTRACTS/MONTH/COMMITMENT APPRECIATION
<S> <C> <C>
S&P 500 Index 38 contracts/Sept./Buy $414,450
</TABLE>
16
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for
a share outstanding of the Fund during the six months
ended July 31, 1995, the year ended January 31, 1995,
and the period May 5, 1993 (date operations commenced)
through January 31, 1994.
<TABLE>
<CAPTION>
January 31,
July 31, -----------------
1995 1995 1994
-------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period....... $ 12.05 $ 12.58 $ 10.00
-------- ------- -------
Income from investment operations:
Net investment income..................... 0.03 0.05 --
Net gains (losses) on securities (both
realized and unrealized)................. 4.39 (0.54) 2.59
-------- ------- -------
Total from investment operations......... 4.42 (0.49) 2.59
-------- ------- -------
Less distributions:
Dividends from net investment income...... -- (0.04) (0.01)
-------- ------- -------
Net asset value, end of period.............. $ 16.47 $ 12.05 $ 12.58
======== ======= =======
Total return(a)............................. 36.68% (3.91)% 25.90%
======== ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted).... $158,069 $88,177 $35,354
======== ======= =======
Ratio of expenses to average net assets..... 0.76%(b) 0.84% 1.06%(c)
======== ======= =======
Ratio of net investment income to average
net assets................................. 0.49%(b) 0.46% 0.07%(c)
======== ======= =======
Portfolio turnover rate..................... 22% 81% 34%
======== ======= =======
</TABLE>
------
(a) Total returns are not annualized for periods less
than one year.
(b) Ratios are annualized and are based on average net
assets of $115,483,910.
(c) Annualized.
17
AIM V.I. CAPITAL APPRECIATION FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <C> <S> <C>
AIM V.I. DIVERSIFIED PRINCIPAL MARKET
INCOME FUND AMOUNT VALUE
SCHEDULE OF --------- ------
INVESTMENTS U. S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS
July 31, 1995 & NOTES - 43.86%
(Unaudited) AUTOMOBILE/TRUCK PARTS & TIRES - 0.28%
$ 100,000 Harvard Industries, Sr. Notes, 11.125%, 08/01/05
(acquired 07/25/95; cost $100,000)(a)........... $ 101,375
-----------
AUTOMOBILE (MANUFACTURERS) - 1.20%
400,000 General Motors Corp., Deb., 8.80%, 03/01/21...... 441,988
-----------
BANKING - 0.77%
300,000 Mercantile Bank, Sub. Notes, 6.375%, 01/15/04.... 284,709
-----------
BUILDING MATERIALS - 0.28%
100,000 Triangle Pacific Corp., Sr. Notes, 10.50%,
08/01/03........................................ 102,500
-----------
CABLE TELEVISION - 4.14%
180,000 Heartland Wireless Communications, Sr. Notes,
13.00%, 04/15/03 (acquired 04/20/95-04/21/95;
cost $181,688)(a)............................... 190,800
750,000 Marcus Cable Operating Co., Sr. Disc. Notes,
13.50%, 08/01/04(b)............................. 507,188
500,000 Viacom Inc., Sr. Notes, 7.75%, 06/01/05.......... 505,515
490,000 Videotron Ltd., Sr. Sub. Notes, 11.125%,
07/01/04(b)..................................... 320,950
-----------
1,524,453
-----------
CONTAINERS - 1.41%
390,000 Ivex Packaging Inc., Sr. Sub. Notes, 12.50%,
12/15/02........................................ 415,350
100,000 Owens-Illinois Inc., Sr. Sub. Notes, 10.50%,
06/15/02........................................ 104,250
-----------
519,600
-----------
ELECTRIC POWER - 1.20%
400,000 Commonwealth Edison, First Mortgage Notes, 9.75%,
02/15/20........................................ 443,140
-----------
FINANCE (CONSUMER CREDIT) - 8.80%
750,000 Associates Corp., Deb., 7.95%, 02/15/10.......... 805,425
750,000 GMAC, Notes, 5.50%, 10/15/02(c).................. 821,738
500,000 GPA Delaware Inc., Deb., 8.75%, 12/15/98......... 452,500
200,000 Olympic Financial Ltd., Deb., 13.00%, 05/01/00... 206,000
400,000 Sea Containers, Sr. Sub. Deb., 12.50%, 12/01/04.. 422,000
500,000 Westinghouse Credit Corp., Deb., 8.875%,
06/14/14........................................ 529,375
-----------
3,237,038
-----------
FOOD PROCESSING - 0.35%
120,000 Curtice-Burns Foods Inc., Sr. Sub. Notes, 12.25%,
02/01/05........................................ 128,400
-----------
FOREIGN GOVERNMENT - 3.21%
700,000 Province of Manitoba, Yankee Bond, 7.75%,
07/17/16........................................ 719,166
450,000 United Mexican States, Deb., 11.875%, 07/21/97
(acquired 07/12/95; cost $450,000)(a)........... 461,250
-----------
1,180,416
-----------
GAMING - 0.76%
260,000 Showboat, Inc., Sr. Sub. Notes, 13.00%, 08/01/09. 278,200
-----------
HOMEBUILDING - 1.39%
500,000 Continental Homes Holdings, Sr. Notes, 12.00%,
08/01/99........................................ 511,250
-----------
HOTELS/MOTELS - 0.61%
150,000 John Q. Hammons Hotels, Gtd. First Mortgage
Notes, 8.875%, 02/15/04......................... 143,250
80,000 Rio Hotel & Casino Inc., Sr. Sub. Notes, 10.625%,
07/15/05 (acquired 07/15/95; cost $80,000)(a)... 80,200
-----------
223,450
-----------
</TABLE>
18
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<C> <S> <C>
INSURANCE (LIFE & HEALTH) - 0.76%
$ 200,000 American Life Holding, Sr. Sub. Notes, 11.25%,
09/15/04........................................ $ 210,000
75,000 Americo Life Inc., Sr. Sub. Notes, 9.25%,
06/01/05........................................ 69,188
-----------
279,188
-----------
INSURANCE (MULTI-LINE/PROPERTY) - 0.45%
160,000 Terra Nova Holdings, Yankee Sr. Notes, 10.75%,
07/01/05........................................ 166,400
-----------
LEISURE & RECREATION - 0.56%
200,000 Icon Health & Fitness, Sr. Sub. Notes, 13.00%,
07/15/02........................................ 205,000
-----------
MACHINERY (MISCELLANEOUS) - 1.65%
210,000 AM General Corp., Sr. Notes, 12.875%, 05/01/02
(acquired 04/21/95; cost $208,881)(a)........... 201,600
200,000 Interlake Corp., Sr. Notes, 12.00%, 11/15/01..... 208,000
190,000 MVE Inc., Sr. Sec. Notes, 12.50%, 02/15/02....... 199,500
-----------
609,100
-----------
MEDICAL (PATIENT SERVICES) - 1.49%
500,000 OrNda Healthcorp, Sr. Sub. Notes, 11.375%,
08/15/04........................................ 550,000
-----------
NATURAL GAS PIPELINE - 2.52%
450,000 Enron Corp., Sr. Sub. Deb., 6.75%, 07/01/05...... 433,957
500,000 Talisman Energy, Yankee Deb., 7.125%, 06/01/07... 491,500
-----------
925,457
-----------
RETAIL (FOOD & DRUG) - 1.38%
110,000 Dominick's Finer Foods, Sr. Sub. Notes, 10.875%,
05/01/05 (acquired 04/27/95; cost $110,000)(a).. 113,300
390,000 Penn Traffic Co., Sr. Notes, 10.65%, 11/01/04.... 395,850
-----------
509,150
-----------
RETAIL (STORES) - 3.27%
400,000 Apparel Retailer Inc., Sr. Disc. Deb., 12.75%,
08/15/05(b)..................................... 244,000
200,000 County Seat Stores, Sr. Sub. Notes, 12.00%,
10/01/02........................................ 196,000
175,000 Fleming Companies Inc., Sr. Notes, 10.625%,
12/15/01........................................ 183,750
150,000 Pamida Inc., Sr. Sub. Notes, 11.75%, 03/15/03.... 133,500
80,000 Samsonite Corp., Sr. Sub. Notes, 11.125%,
07/15/05 (acquired 07/07/95; cost $80,000)(a)... 81,600
275,000 Specialty Retail, Sr. Sub. Notes, 11.00%,
08/15/03........................................ 253,000
110,000 United Stationer Supply, Sr. Sub. Notes, 12.75%,
05/01/05 (acquired 04/27/95; cost $110,000)(a).. 113,575
-----------
1,205,425
-----------
STEEL - 1.01%
185,000 GS Technologies Inc., Sr. Notes, 12.00%,
09/01/04........................................ 181,300
190,000 Gulf States Steel, Sr. Notes, 13.50%, 04/15/03
(acquired 04/12/95-04/13/95; cost $190,600)(a).. 190,000
-----------
371,300
-----------
TELECOMMUNICATIONS - 3.68%
250,000 Cellular Inc., Sr. Sub. Notes, 11.75%,
09/01/03(b)..................................... 185,000
100,000 Northern Telecom, Notes, 6.00%, 09/01/03......... 93,964
220,000 Peoples Telephone Co. Inc., Sr. Notes, 12.25%,
07/15/02........................................ 224,125
850,000 TCI Communications Inc., Notes, 8.00%, 08/01/05.. 854,114
-----------
1,357,203
-----------
TEXTILES - 1.81%
350,000 Consoltex Group, Sr. Sub. Notes, 11.00%,
10/01/03........................................ 322,000
330,000 Fieldcrest Cannon Inc., Sr. Sub. Deb., 11.25%,
06/15/04........................................ 344,025
-----------
666,025
-----------
</TABLE>
19
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<C> <S> <C>
TRANSPORTATION (MISCELLANEOUS) - 0.88%
$ 320,000 Trans Ocean Container, Sr. Sub. Notes,
12.25%, 07/01/04............................ $ 323,200
-----------
Total U.S. Dollar Denominated
Non-Convertible Bonds & Notes........... 16,143,967
-----------
U.S. DOLLAR DENOMINATED CONVERTIBLE BONDS &
NOTES - 0.82%
FINANCE (CONSUMER CREDIT) - 0.82%
300,000 Henderson Capital, Conv. Bonds, 4.50%,
10/27/96.................................... 300,750
-----------
Total U.S. Dollar Denominated Convertible
Bonds & Notes........................... 300,750
-----------
NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE
BONDS & NOTES(d) - 8.13%
CANADA - 3.13%
CAD 735,000 Bell Canada (Telecommunications), Deb.,
13.875% 05/01/00............................ 567,635
300,000 Canadian Oil Debco Inc. (Oil & Gas), Deb.,
11.00%, 10/31/00............................ 238,370
250,000 IPL Energy Inc. (Oil Equipment & Supplies),
Deb., Series A, 9.67%, 02/23/00............. 190,334
250,000 Rogers Cablesystem, Inc. (Cable Television),
Sr. Sec. 2nd Priority Deb., 9.65%, 01/15/14. 153,363
-----------
1,149,702
-----------
GERMANY - 3.27%
International Bank for Reconstruction &
Development (Supranational Organization)
DEM 1,000,000 Unsub. Global Bonds, 5.875%, 11/10/03........ 677,126
725,000 Unsub. Global Bonds, 7.21%, 04/12/05......... 527,682
-----------
1,204,808
-----------
ITALY - 1.73%
ITL 1,000,000,000 KFW International Finance (Finance-Consumer
Credit) Gtd. Notes, 11.625%, 11/27/98....... 637,609
-----------
Total Non-U.S. Dollar Denominated Non-
Convertible Bonds & Notes............... 2,992,119
-----------
NON-U.S. DOLLAR DENOMINATED CONVERTIBLE BONDS
& NOTES(d) - 5.66%
AUSTRALIA - 0.90%
AUD 450,000 Lion Nathan Ltd. (Beverages), Sub. Deb.,
11.76%, 09/30/00............................ 332,249
-----------
CANADA - 1.37%
CAD 700,000 Repap Enterprise (Paper & Forest Products),
Conv. Deb., 9.00%, 06/30/98................. 506,098
-----------
FRANCE - 0.86%
FRF 1,419,000 Societe Generale (Banking), Deb., 3.50%,
01/01/00.................................... 318,272
-----------
UNITED KINGDOM - 2.53%
BPS 320,000 ELF Enterprise Finance PLC (Finance-Consumer
Credit), Gtd. Conv. Bonds, 8.75%, 06/27/06.. 506,475
300,000 Lasmo PLC (Oil Equipment & Supplies), Conv.
Deb., 7.75%, 10/04/05....................... 420,863
-----------
927,338
-----------
Total Non-U.S. Dollar Denominated
Convertible Bonds & Notes............... 2,083,957
-----------
NON-U.S. DOLLAR DENOMINATED GOVERNMENT BONDS
& NOTES(d) - 16.57%
AUSTRALIA - 7.86%
AUD 800,000 Australia (Commonwealth of), Gtd. Notes,
6.75%, 11/15/06............................. 480,024
1,000,000 New South Wales Treasury Corp., 7.00%,
04/01/04.................................... 640,207
820,000 Queensland Treasury Corp., Gtd. Notes,
8.875%, 11/08/96............................ 612,820
800,000 Treasury Corp. of Victoria, Gtd. Notes,
10.25%, 09/15/99............................ 618,381
800,000 Western Australia Treasury Corp., Gtd. Notes,
8.00%, 07/15/03............................. 540,549
-----------
2,891,981
-----------
CANADA - 1.93%
CAD 850,000 New Brunswick (Province of), Deb., 8.94%,
01/15/05.................................... 639,378
100,000 Quebec (Province of), Sr. Deb., 9.375%,
01/16/23.................................... 71,715
-----------
711,093
-----------
</TABLE>
20
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<C> <S> <C>
GERMANY - 4.89%
Bundesrepublik Deutscheland,
DEM 1,500,000 Deb., 6.75%, 07/15/04........................... $ 1,075,308
1,000,000 Deb., 6.875%, 05/15/05.......................... 725,023
-----------
1,800,331
-----------
UNITED KINGDOM - 1.89%
BPS 465,000 Ontario Province, Sr. Unsub. Notes, 6.875%,
09/15/00....................................... 695,753
-----------
Total Non-U.S. Dollar Denominated Government
Bonds & Notes.............................. 6,099,158
-----------
<CAPTION>
SHARES
------
<C> <S> <C>
WARRANTS - 0.02%
LEISURE & RECREATION - 0.01%
150 Boomtown Inc., Wt., expiring 11/01/98(e)
(acquired 11/03/93; cost $150)(a).............. 750
200 IHF Holdings, Wt., expiring 11/14/99(e)......... 4,000
-----------
4,750
-----------
RETAIL (STORES) - 0.01%
200 County Seat, Inc., Wt., expiring 10/01/01(e).... 5,000
-----------
Total Warrants.............................. 9,750
-----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
U.S. TREASURY SECURITIES - 21.37%
$ 150,000 U.S. Treasury Notes, 5.75%, 08/15/03............ 143,679
120,000 U.S. Treasury Notes, 11.625%, 11/15/04.......... 162,374
2,450,000 U.S. Treasury Notes, 7.50%, 02/15/05............ 2,627,184
4,500,000 U.S. Treasury Bonds, 7.625%, 02/15/25........... 4,935,015
-----------
Total U.S. Treasury Securities.............. 7,868,252
-----------
REPURCHASE AGREEMENT(f) - 5.07%
Daiwa Securities America Inc., 5.83%,
08/01/95(g).................................... 1,864,981
-----------
Total Repurchase Agreement.................. 1,864,981
-----------
TOTAL INVESTMENTS - 101.50%................. 37,362,934
LIABILITIES LESS OTHER ASSETS - (1.50%)..... (552,249)
-----------
NET ASSETS - 100.00%........................ $36,810,685
===========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Restricted securities. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with the procedures established by the Board of Directors. The
aggregate market value of the securities at July 31, 1995 was $1,534,450,
which represented 4.17% of the Fund's net assets.
(b) Discounted bond at purchase. Interest rate represents coupon rate at which
the bond will accrue at a specified future date.
(c) Coupon steps up to 9.00%, effective 10/15/95.
(d) Foreign denominated securities. Par value and coupon are denominated in
currency of country indicated.
(e) Non-income producing security acquired as part of a unit with or in
exchange for other securities.
(f) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts wtih other mutual funds managed by
the investment advisor.
(g) Joint repurchase agreement entered into 07/31/95 with a maturing value of
$639,645,731. Collateralized by $620,652,000 U.S. Treasury obligations, 0%
to 11.25% due 12/15/95 to 05/15/21.
Abbreviations:
AUD-Australian Dollar Disc.-Discounted Sec.-Secured
CAD-Canadian Dollar DEM-German Deutschemark Sr.-Senior
BPS-British Pound Sterling FRF-French Franc Sub.-Subordinated
Conv.-Convertible Gtd.-Guaranteed Unsub.-Unsubordinated
Deb.-Debentures ITL-Italian Lire Wt.-Warrant
See Notes to Financial Statements.
</TABLE>
21
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. DIVERSIFIED ASSETS:
INCOME FUND
STATEMENT OF Investments, at value (cost $36,929,407).......................... $ 37,362,934
ASSETS AND Foreign currencies, at value (cost $113,417)...................... 113,040
LIABILITIES Receivables for:
July 31, 1995 Investments sold................................................ 132,320
(Unaudited) Capital stock sold.............................................. 359,600
Interest........................................................ 924,949
Investment for deferred compensation.............................. 4,874
Organizational costs, net......................................... 7,954
Other assets...................................................... 731
------------
Total assets.................................................. 38,906,402
------------
LIABILITIES:
Payables for:
Forward contracts............................................... 9,572
Investments purchased........................................... 2,051,117
Deferred compensation........................................... 4,874
Accrued advisory fees............................................. 18,269
Accrued directors' fees........................................... 386
Accrued administrative services fees.............................. 4,477
Accrued operating expenses........................................ 7,022
------------
Total liabilities............................................. 2,095,717
------------
Net assets applicable to shares outstanding....................... $ 36,810,685
============
Capital shares, $.001 par value per share:
Authorized...................................................... 250,000,000
============
Outstanding..................................................... 3,690,154
============
Net asset value, offering and redemption price per share.......... $ 9.98
============
</TABLE>
See Notes to Financial Statements.
22
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. DIVERSIFIED INVESTMENT INCOME:
INCOME FUND
STATEMENT OF Interest........................................................ $1,340,871
OPERATIONS ----------
For the EXPENSES:
six months ended
July 31, 1995 Advisory fees................................................... 90,917
(Unaudited) Custodian fees.................................................. 7,812
Administrative services fees.................................... 21,378
Directors' fees and expenses.................................... 2,527
Organizational costs............................................ 1,446
Other........................................................... 12,803
----------
Total expenses................................................. 136,883
----------
Net investment income............................................. 1,203,988
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES,
FOREIGN CURRENCIES AND FORWARD CONTRACTS TRANSACTIONS:
Net realized gain (loss) from:
Investment securities........................................... 253,110
Foreign currencies.............................................. 222,909
Forward contracts............................................... (44,597)
----------
431,422
----------
Unrealized appreciation (depreciation) of:
Investment securities........................................... 1,428,846
Foreign currencies.............................................. (3,654)
Forward contracts............................................... 9,663
----------
1,434,855
----------
Net gain on investment securities, foreign currencies and forward
contracts transactions........................................... 1,866,277
----------
Net increase in net assets resulting from operations.............. $3,070,265
==========
</TABLE>
See Notes to Financial Statements.
23
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C> <C>
AIM V.I. DIVERSIFIED JULY 31, JANUARY 31,
INCOME FUND 1995 1995
STATEMENT OF ----------- -----------
CHANGES IN OPERATIONS:
NET ASSETS
For the Net investment income.............................. $ 1,203,988 $ 1,655,141
six months ended Net realized gain (loss) from investment
July 31, 1995 securities, foreign currencies and forward
and the contracts transactions............................ 431,422 (1,542,084)
year ended Net unrealized appreciation (depreciation) of
January 31, 1995 investment securities, foreign currencies and
(Unaudited) forward contracts................................. 1,434,855 (1,156,094)
----------- -----------
Net increase (decrease) in net assets resulting
from operations.................................. 3,070,265 (1,043,037)
Net equalization credits........................... 328,180 286,609
Net increase from capital stock transactions....... 8,578,922 12,953,629
Distributions to shareholders from net investment
income............................................ (437,867) (1,455,969)
----------- -----------
Net increase in net assets........................ 11,539,500 10,741,232
NET ASSETS:
Beginning of period................................ 25,271,185 14,529,953
----------- -----------
End of period...................................... $36,810,685 $25,271,185
=========== ===========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in)......... $35,651,804 $27,072,882
Undistributed net investment income................ 1,847,069 752,768
Undistributed net realized gain (loss) on
investment securities, foreign currencies and
forward contracts transactions ................... (1,115,867) (1,547,289)
Unrealized appreciation (depreciation) of
investment securities, foreign currencies and
forward contracts................................. 427,679 (1,007,176)
----------- -----------
$36,810,685 $25,271,185
=========== ===========
</TABLE>
See Notes to Financial Statements.
24
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
AIM V.I. DIVERSIFIED NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
INCOME FUND AIM Variable Insurance Funds, Inc. (the "Company"), is
NOTES TO a Maryland corporation organized on January 22, 1993,
FINANCIAL and is registered under the Investment Company Act of
STATEMENTS 1940 (the "1940 Act"), as amended, as an open-end,
July 31, 1995 series, management investment company consisting of nine
(Unaudited) portfolios: AIM V.I. Diversified Income Fund (the
"Fund"), AIM V.I. Capital Appreciation Fund, AIM V.I.
Global Utilities Fund, AIM V.I. Government Securities
Fund, AIM V.I. Growth Fund, AIM V.I. Growth and Income
Fund, AIM V.I. International Equity Fund, AIM V.I. Money
Market Fund, and AIM V.I. Value Fund. Matters affecting
each portfolio are voted on exclusively by the
shareholders of such portfolio. The assets, liabilities
and operations of each portfolio are accounted for
separately. Information presented in these financial
statements pertains only to the Fund. Currently shares
of the Funds are sold only to insurance company separate
accounts to fund the benefits of variable annuity
contracts.
The following is a summary of the significant accounting
policies followed by the Fund in the presentation of its
financial statements.
A. Security Valuations--Non-convertible bonds and notes
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 institution-size trading
in similar groups of securities, developments related
to special securities, yield, quality, coupon rate,
maturity, type of issue, individual trading
characteristics and other market data. Investment
securities for which prices are not provided by the
pricing service and which are listed or traded on an
exchange are valued at the last sales price on the
exchange where the security is principally traded or,
lacking any sales on a particular day, at the mean
between the closing bid and asked prices on that day
unless the Board of Directors, or persons designated
by the Board of Directors, determines that the over-
the-counter quotations more closely reflect the
current market value of the security. Securities
traded in the over-the-counter market, except (i)
securities priced by the pricing service, (ii)
securities for which representative exchange prices
are available, and (iii) securities reported in the
NASDAQ National Market System, are valued at the mean
between representative last bid and asked prices
obtained from an electronic quotation reporting
system, if such prices are available, or from
established market makers. Each security reported in
the NASDAQ National Market System is valued at the
last sales price on the valuation date. Securities
for which market quotations are not readily available
and "restricted securities" are valued at fair value
as determined in good faith by or under the
supervision of the Fund's officers in accordance with
methods which are specifically authorized by the
Board of Directors. Short-term obligations having 60
days or less to maturity are valued at amortized cost
which approximates market value. Generally, trading
in foreign securities is substantially completed each
day at various times prior to the close of the New
York Stock Exchange. 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 New York Stock Exchange.
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 New York Stock Exchange which will 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. Foreign Currency Translation - Portfolio securities
and other assets and liabilities denominated in
foreign currencies are translated into U.S. dollars
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.
C. Forward Currency Contracts - A forward 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 forward
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 currency
contract for the amount of a 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.
D. Securities Transactions, Investment Income and
Distributions - Securities transactions are accounted
for on a trade date basis. Interest income is
recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income and
distributions to shareholders are recorded on the ex-
dividend date. It is the policy of the Fund not to
amortize market discounts and premiums on bonds for
financial reporting purposes. Realized gains or
losses from securities transactions are recorded on
the identified cost basis.
25
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
E. Federal Income Taxes - For federal income tax
purposes, each portfolio in the Company is taxed as a
separate entity. It is the Fund's policy to continue
to comply with the requirements of the Internal
Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income
and capital gains to its shareholders. Therefore, no
provision for federal income taxes is recorded in the
financial statements. The Fund had capital loss
carryforwards (which may be carried forward to offset
future taxable capital gains, if any) of $1,045,562,
which expires, if not previously utilized, through
the year 2003.
F. Equalization - The Fund follows the accounting
practice known as equalization by which a portion of
the proceeds from sales and the costs of repurchases
of fund shares, equivalent on a per share basis to
the amount of undistributed net investment income, is
credited or charged to undistributed net income when
the transaction is recorded so that undistributed net
investment income per share is unaffected by sales or
redemptions of Fund shares.
G. Organizational Costs - Organizational costs of the
Fund of $14,461 are being amortized over five years.
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an
annual rate of 0.60% of the first $250 million of the
Fund's average daily net assets, plus 0.55% of such
Fund's average daily net assets in excess of $250
million. This agreement requires AIM to reduce its fees
or, if necessary, make payments to the Fund to the
extent required to satisfy any expense limitations
imposed by the securities laws or regulations thereunder
of any state in which the Fund's shares are qualified
for sale.
Pursuant to a master administrative services agreement
between the Company and AIM, with respect to the Fund,
the Company has agreed to reimburse certain
administrative costs incurred in providing accounting
services to the Fund. During the six months ended July
31, 1995, AIM was reimbursed $21,378 for such services.
The Company has entered into a master distribution
agreement with A I M Distributors, Inc. ("AIM
Distributors") to serve as the distributor for the Fund.
Certain officers and directors of the Company are
officers of AIM and AIM Distributors.
During the six months ended July 31, 1995, the Fund
incurred legal fees of $855 for services rendered by
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Directors. A member of that firm
is a director of the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued
to each director who is not an "interested person" of
AIM. The Company may invest directors' fees, if so
elected by a director, in mutual fund shares in
accordance with a deferred compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other
than short-term securities) purchased and sold by the
Fund during the six months ended July 31, 1995 was
$21,341,512 and $11,241,056, respectively.
The amount of unrealized appreciation (depreciation) of
investment securities on a tax basis as of July 31, 1995
is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities........... $ 919,406
Aggregate unrealized (depreciation) of investment securities......... (485,879)
---------
Net unrealized appreciation of investment securities................. $ 433,527
=========
</TABLE>
Investments have the same cost for tax and financial
statement purposes.
NOTE 5 - OPEN FORWARD CURRENCY CONTRACTS
Outstanding contracts at July 31, 1995 were as follows:
<TABLE>
<CAPTION>
Unrealized
Contract to Appreciation
Settlement Date Deliver Receive Value (Depreciation)
--------------- ------------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
08/03/95........ DEM 500,000 $ 360,717 $ 360,894 $ 177
08/08/95........ CAD 1,750,000 1,277,773 1,268,024 (9,749)
---------- ---------- -------
$1,638,490 $1,628,918 $(9,572)
========== ========== =======
</TABLE>
26
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
NOTE 6 - CAPITAL STOCK
Changes in capital stock outstanding during the six
months ended July 31, 1995 and the year ended January
31, 1995 were as follows:
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................... 1,080,377 $10,095,878 1,633,696 $15,317,067
Issued as reinvestment of
distributions................. 46,881 428,491 155,537 1,431,155
Reacquired..................... (207,539) (1,945,447) (408,146) (3,794,593)
--------- ----------- --------- -----------
919,719 $ 8,578,922 1,381,087 $12,953,629
========= =========== ========= ===========
</TABLE>
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for
a share outstanding of the Fund during the six months
ended July 31, 1995, the year ended January 31, 1995,
and the period May 5, 1993 (date operations commenced)
through January 31, 1994.
<TABLE>
<CAPTION>
January 31,
July 31, -----------------
1995 1995 1994
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period......... $ 9.12 $ 10.46 $ 10.00
------- ------- -------
Income from investment operations:
Net investment income...................... 0.38 0.76 0.54
Net gains (losses) on securities (both
realized and unrealized).................. 0.63 (1.42) 0.29
------- ------- -------
Total from investment operations.......... 1.01 (0.66) 0.83
------- ------- -------
Less distributions:
Dividends from net investment income....... (0.15) (0.68) (0.35)
Distributions from net realized capital
gains..................................... -- -- (0.02)
------- ------- -------
Total distributions....................... (0.15) (0.68) (0.37)
------- ------- -------
Net asset value, end of period............... $ 9.98 $ 9.12 $ 10.46
======= ======= =======
Total return(a).............................. 11.19% (6.35)% 8.33%
======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted)..... $36,811 $25,271 $14,530
======= ======= =======
Ratio of expenses to average net assets(c)... 0.90%(b) 0.91% 1.05%(e)
======= ======= =======
Ratio of net investment income to average net
assets(d)................................... 7.95%(b) 8.07% 6.78%(e)
======= ======= =======
Portfolio turnover rate...................... 39% 100% 57%
======= ======= =======
</TABLE>
------
(a) Total returns for periods less than one year are
not annualized.
(b) Ratios are annualized and based on average net
assets of $30,556,849.
(c) After waiver of advisory fee and expense
reimbursement. Ratios of expenses to average net
assets prior to waiver of advisory fees and/or
expense reimbursements are 1.03% and 1.69%
(annualized) for 1995 and 1994, respectively.
(d) After waiver of advisory fee and expense
reimbursement. Ratios of net investment income to
average net assets prior to waiver of advisory fees
and/or expense reimbursements are 7.95% and 6.14%
(annualized) for 1995 and 1994, respectively.
(e) Annualized.
27
AIM V.I. DIVERSIFIED INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <C> <S> <C>
AIM V.I. GLOBAL SHARES MARKET
UTILITIES FUND ------ VALUE
SCHEDULE OF ------
INVESTMENTS DOMESTIC COMMON STOCKS - 53.50%
July 31, 1995 CONGLOMERATES - 0.47%
(Unaudited) 500 Tenneco Inc............................................... $ 24,750
----------
ELECTRIC SERVICES - 31.60%
2,500 Boston Edison Co.......................................... 62,500
900 Consolidated Edison Co. of New York, Inc.................. 26,100
1,300 Detroit Edison Co......................................... 38,350
6,600 DPL Inc................................................... 146,850
2,200 DQE, Inc.................................................. 52,800
2,600 Duke Power Co............................................. 107,900
1,200 Florida Progress Corp..................................... 36,900
3,500 FPL Group, Inc............................................ 133,875
3,200 General Public Utilities Corp............................. 92,400
3,300 Houston Industries, Inc................................... 144,375
4,100 Illinova Corp............................................. 102,500
600 LG & E Energy Corp........................................ 23,175
3,200 Northern States Power Co.................................. 141,600
4,800 Ohio Edison Co............................................ 105,600
1,200 PacifiCorp................................................ 22,050
1,800 Peco Energy Co............................................ 51,525
3,600 Pinnacle West Capital Corp................................ 87,750
2,400 Public Service Co. of Colorado............................ 75,900
5,400 Southern Co. (The)........................................ 118,800
1,200 Teco Energy, Inc.......................................... 25,800
1,200 Unicom Corp............................................... 33,300
800 Wisconsin Energy Corp..................................... 22,400
----------
1,652,450
----------
NATURAL GAS PIPELINE - 6.50%
900 Columbia Gas System, Inc.(a).............................. 31,500
900 Enron Corp................................................ 31,275
400 KN Energy, Inc............................................ 10,000
800 MCN Corp.................................................. 15,200
2,400 NIPSCO Industries, Inc.................................... 78,300
1,600 Pacific Enterprises....................................... 38,600
2,200 Panhandle Eastern Corp.................................... 53,625
2,200 Williams Companies Inc. (The)............................. 81,400
----------
339,900
----------
REAL ESTATE INVESTMENT TRUSTS - 1.57%
1,100 Bay Apartment Communities................................. 21,862
500 Meditrust................................................. 16,875
300 National Health Investors, Inc............................ 8,588
100 Nationwide Health Properties, Inc......................... 3,962
500 Oasis Residential Inc..................................... 11,250
400 RFS Hotel Investors Inc................................... 5,750
800 Storage Equities Inc...................................... 13,700
----------
81,987
----------
TELECOMMUNICATIONS - 1.15%
1,400 Frontier Corp............................................. 37,625
900 Mobilmedia Corp........................................... 22,725
----------
60,350
----------
</TABLE>
28
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
MARKET
SHARES VALUE
------ ------
TELEPHONE - 12.21%
800 ALC Communications Corp.(a).............................. $ 42,300
3,300 Ameritech Corp........................................... 159,637
500 AT&T Corp................................................ 26,375
1,700 BellSouth Corp........................................... 115,175
1,800 Century Telephone Enterprises, Inc....................... 51,300
2,300 Cincinnati Bell, Inc..................................... 61,238
600 GTE Corp................................................. 21,300
2,400 SBC Communications, Inc.................................. 115,500
700 Southern New England Telecommunications Corp............. 23,975
500 US West, Inc............................................. 21,438
----------
638,238
----------
Total Domestic Common Stocks........................ 2,797,675
----------
FOREIGN STOCKS - 22.44%
ARGENTINA - 1.80%
7,700 Central Costanera S.A.-Class B (Electric Services)....... 25,410
2,200 Central Puerto S.A.-Class B (Electric Services).......... 9,020
600 Telecom Argentina S.A.-ADR (Telephone)................... 29,775
1,100 Telefonica de Argentina-ADR (Telephone).................. 29,700
----------
93,905
----------
AUSTRIA - 0.38%
270 Oesterreichisch Elektrizitaitswirts-AG
(Verbundgesellschaft) Class A (Electric Services)....... 19,826
----------
CANADA - 0.60%
2,100 Westcoast Energy, Inc. (Natural Gas Pipeline)............ 31,763
----------
CHILE - 1.46%
500 Chilgener S.A.-ADR (Electric Services)................... 14,188
400 Compania de Telefonos de Chile S.A.-ADR
(Telecommunications).................................... 31,300
1,200 Enersis S.A.-ADR (Electric Services)..................... 30,750
----------
76,238
----------
DENMARK - 0.44%
800 Tele Danmark A/S-ADR(a) (Telephone)...................... 22,800
----------
FINLAND - 2.14%
1,700 Nokia Corp.-ADR (Telecommunications)..................... 111,775
----------
GERMANY - 0.84%
1,060 Veba A.G. (Electric Services)............................ 43,980
----------
HONG KONG - 0.48%
6,000 Consolidated Electric Power Asia Ltd. (Electric
Services)............................................... 13,996
600 Hong Kong Telecom Ltd.-ADR (Telephone)................... 10,950
----------
24,946
----------
INDONESIA - 0.50%
700 PT Indostat-ADR(a) (Telephone)........................... 26,250
----------
ITALY - 0.49%
8,525 Telecom Italia Mobile S.p.A. (Telephone)................. 10,721
8,525 Telecom Italia S.p.A. (Telephone)........................ 14,724
----------
25,445
----------
KOREA - 0.55%
1,200 Korea Electric Power Corp.-ADR (Electric Services)....... 28,650
----------
</TABLE>
29
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
MARKET
SHARES VALUE
------ ------
NETHERLANDS - 0.90%
300 Philips Electronics N.V.-ADR (Electronic
Components/Miscellaneous)............................. $ 14,775
270 Royal PTT Nederland N.V. (Telephone)................... 10,098
595 Royal PTT Nederland N.V.-ADR(b) (Acquired 06/13/94-
05/19/95; cost $18,405) (Telephone)................... 22,238
----------
47,111
----------
NEW ZEALAND - 1.47%
1,200 Telecom Corp. of New Zealand Ltd.-ADR (Telephone)...... 76,950
----------
NORWAY - 0.64%
1,200 Nera AS-ADR(a) (Telecommunications).................... 33,300
----------
PERU - 0.50%
14,100 CPT Telefonica Del Peru-Class B (Telephone)............ 26,315
----------
PORTUGAL - 0.64%
1,700 Portugal Telecom S.A.-ADR(a) (Telecommunications)...... 33,575
----------
SPAIN - 1.49%
700 Empresa Nacional de Electricidad S.A. (Electric
Services)............................................. 31,650
600 Empresa Nacional de Electricidad S.A.-ADR (Electric
Services)............................................. 16,450
250 Gas Natural SDG-E S.A. (Natural Gas Pipeline).......... 29,754
----------
77,854
----------
SWEDEN - 1.95%
280 Telefonaktiebolaget L.M. Ericsson (Telecommunications). 5,290
5,200 Telefonaktiebolaget L.M. Ericsson-ADR
(Telecommunications).................................. 96,850
----------
102,140
----------
UNITED KINGDOM - 5.17%
5,700 British Gas PLC (National Gas Pipeline)................ 26,564
700 London Electricity PLC (Electric Services)............. 8,254
1,250 Midlands Electricity PLC (Electric Services)........... 15,368
2,825 National Power PLC (Electric Services)................. 22,198
900 National Power PLC-ADR (Electric Services)............. 11,700
3,675 North West Water PLC (Water Supply).................... 35,927
1,200 NYNEX CableComms Group(a) (Telecommunications)......... 24,300
2,850 PowerGen PLC (Electric Services)....................... 24,536
600 PowerGen PLC-ADR (Electric Services)................... 9,150
2,950 Scottish Power PLC (Electric Services)................. 14,833
1,150 Seeboard PLC (Electric Services)....................... 8,273
650 South Wales Electricity PLC (Electric Services)........ 8,521
2,100 Wessex Water PLC (Water Supply)........................ 11,180
1,200 Yorkshire Electricity PLC (Electric Services).......... 14,772
3,500 Yorkshire Water PLC (Water Supply)..................... 34,580
----------
270,156
----------
Total Foreign Stocks............................... 1,172,979
----------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
PRINCIPAL
AMOUNT
---------
DOMESTIC CONVERTIBLE BONDS & NOTES - 2.08%
COMPUTER SOFTWARE & SERVICES - 0.60%
$29,000 Network Equipment Technologies, Conv. Sub. Deb., 7.25%,
05/15/14............................................. 31,198
----------
ELECTRIC SERVICES - 0.47%
25,000 California Energy Co., Inc., Conv. Sub. Deb., 5.00%,
07/31/00(b) (Acquired 04/26/95; cost $22,469)........ 24,855
----------
ELECTRONIC COMPONENTS/MISCELLANEOUS - 0.48%
20,000 Altera Corp., Conv. Sub. Notes, 5.75%, 06/15/02(b)
(Acquired 06/16/95; cost $20,000).................... 25,153
----------
</TABLE>
30
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
TELECOMMUNICATIONS - 0.53%
$ 80,000 United States Cellular Corp., Conv. Liquid Yield
Option Notes, 6.00%, 06/15/15(c).................... $ 27,500
----------
Total Domestic Convertible Bonds & Notes......... 108,706
----------
DOMESTIC NON-CONVERTIBLE BONDS & NOTES - 6.89%
ELECTRIC SERVICES - 1.38%
75,000 Arizona Public Service, Deb., 8.00%, 12/30/15........ 72,368
----------
FINANCE (CONSUMER CREDIT) - 1.57%
75,000 GMAC, Notes, 5.50%, 10/15/02......................... 82,174
----------
NATURAL GAS PIPELINE - 0.90%
45,000 Panhandle Eastern Pipeline, Deb., 7.875%, 08/15/04... 47,004
----------
TELECOMMUNICATIONS - 3.04%
150,000 AT&T Corp., Sr. Notes, 7.75%, 03/01/07............... 158,818
----------
Total Domestic Non-Convertible Bonds & Notes..... 360,364
----------
FOREIGN NON-CONVERTIBLE BONDS - 3.17%
CANADA - 2.19%
50,000* Bell Canada, Deb. (Telecommunications), 10.875%,
10/11/04............................................ 40,386
50,000* Bell Canada, Deb. (Telecommunications), 8.80%,
08/17/05............................................ 36,241
50,000* IPL Energy, Series A, Deb. (Oil & Gas Services), 9.67%,
02/23/00............................................ 38,067
----------
114,694
----------
MEXICO - 0.98%
50,000 United Mexican States, Deb. (Foreign Government
Securities), 11.1875%, 07/21/97(b)(d) (Acquired
07/12/95; cost $50,000)............................. 51,250
----------
Total Foreign Non-Convertible Bonds.............. 165,944
----------
U.S. TREASURY BONDS - 3.15%
150,000 7.625%, 02/15/25..................................... 164,501
----------
REPURCHASE AGREEMENT(e) - 9.42%
492,526 Daiwa Securities America, Inc., 5.83%, 08/01/95(f)... 492,526
----------
Total Repurchase Agreement....................... 492,526
----------
TOTAL INVESTMENT SECURITIES - 100.65%................ 5,262,695
LIABLITIES LESS OTHER ASSETS (0.65%)................. (34,006)
----------
NET ASSETS - 100.00%................................. $5,228,689
==========
</TABLE>
*Canadian dollars
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Restricted securities. May be resold to qualified
institutional buyers in accordance with provisions
of Rule 144A under the Securities Act of 1933, as
amended. The valuation of these securities has been
determined in accordance with procedures established
by the Board of Directors. The aggregate market
value of these securities at July 31, 1995, was
$123,496, which represents 2.36% of the Fund's net
assets.
(c) Zero coupon bond. The interest rate shown represents
the rate of the original issue discount.
(d) Interest rates are redetermined semi-annually. Rate
shown is the rate in effect on July 31, 1995.
(e) Collateral on repurchase agreements, including the
fund's pro-rata interest in joint repurchase
agreements, is taken into possession by the fund
upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its
market value as being 102 percent of the sales price
of the repurchase agreement. The investments in some
repurchase agreements are through participation in
joint accounts with other mutual funds managed by
the investment advisor.
(f) Joint repurchase agreement entered into 07/31/95
with a maturing value of $639,645,731.
Collateralized by $620,652,000 U.S. Treasury
obligations, 0% to 11.25%, due 12/14/95 to 05/15/21.
Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Deb. - Debentures
Sr. - Senior
Sub. - Subordinated
See Notes to Financial Statements.
31
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
AIM V.I. GLOBAL ASSETS:
UTILITIES FUND
STATEMENT OF Investments, at value (cost $4,872,014)............................ $ 5,262,695
ASSETS AND Foreign currencies, at value (cost $12,194)........................ 12,189
LIABILITIES Receivables for:
July 31, 1995 Investments sold................................................. 15,227
(Unaudited) Dividends and interest........................................... 43,082
Reimbursement from advisor....................................... 11,750
Investment for deferred compensation plan.......................... 2,554
Other assets....................................................... 46
-----------
Total assets................................................... 5,347,543
-----------
LIABILITIES:
Payables for:
Capital stock redeemed........................................... 460
Investments purchased............................................ 107,586
Deferred compensation plan....................................... 2,554
Accrued directors' fees............................................ 376
Accrued administrative services fees............................... 2,700
Accrued operating expenses......................................... 5,178
-----------
Total liabilities.............................................. 118,854
-----------
Net assets applicable to shares outstanding........................ $ 5,228,689
===========
Capital shares, $.001 par value per share:
Authorized....................................................... 250,000,000
===========
Outstanding...................................................... 491,584
===========
Net asset value, offering and redemption price per share........... $10.64
======
See Notes to Financial Statements.
</TABLE>
32
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
AIM V.I. GLOBAL INVESTMENT INCOME:
UTILITIES FUND
STATEMENT OF Dividends (net of $1,385 foreign withholding tax)................. $ 90,175
OPERATIONS Interest.......................................................... 37,739
For the six months --------
ended July 31, 1995 Total investment income......................................... 127,914
(Unaudited) --------
EXPENSES:
Advisory fees..................................................... 15,681
Custodian fees.................................................... 10,789
Administrative services fees...................................... 17,939
Directors' fees and expenses...................................... 2,183
Professional fees................................................. 8,177
Other............................................................. 492
--------
Total expenses................................................... 55,261
Less expenses assumed by advisor.................................... (23,431)
--------
Net expenses..................................................... 31,830
--------
Net investment income............................................... 96,084
--------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investment securities............................................. 18,429
Foreign currency transactions..................................... (2,443)
--------
15,986
--------
Unrealized appreciation of:
Investment securities............................................. 356,144
Foreign currencies................................................ 938
--------
357,082
--------
Net gain on investment securities and foreign currencies............ 373,068
--------
Net increase in net assets resulting from operations................ $469,152
========
See Notes to Financial Statements.
</TABLE>
33
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
<TABLE>
<CAPTION>
AIM V.I. GLOBAL JULY 31, JANUARY 31,
UTILITIES FUND 1995 1995
STATEMENT ---------- -----------
OF CHANGES <S> <C> <C>
IN NET ASSETS OPERATIONS:
For the six months
ended Net investment income................................. $ 96,084 $ 62,600
July 31, 1995 and Net realized gain (loss) from investment securities
the period and foreign currency transactions.................... 15,986 (63,919)
May 2, 1994 (date Net unrealized appreciation of investment securities
operations and foreign currencies............................... 357,082 33,906
commenced) through ---------- -----------
January 31, 1995 Net increase in net assets resulting from
(Unaudited) operations......................................... 469,152 32,587
Net increase from capital stock transactions........ 1,836,848 2,981,631
Distributions to shareholders from net investment
income............................................. (34,978) (56,551)
---------- -----------
Net increase in net assets......................... 2,271,022 2,957,667
NET ASSETS:
Beginning of period................................. 2,957,667 --
---------- -----------
End of period....................................... $5,228,689 $ 2,957,667
========== ===========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in).......... $4,818,479 $ 2,981,631
Undistributed net investment income................. 67,155 6,049
Undistributed net realized gain (loss) from
investment securities and foreign currency
transactions....................................... (47,933) (63,919)
Unrealized appreciation of investment securities and
foreign currencies................................. 390,988 33,906
---------- -----------
$5,228,689 $ 2,957,667
========== ===========
See Notes to Financial Statements.
</TABLE>
34
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
AIM V.I. GLOBAL NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
UTILITIES FUND AIM Variable Insurance Funds, Inc. (the "Company"), is
NOTES TO a Maryland corporation organized on January 22, 1993,
FINANCIAL and is registered under the Investment Company Act of
STATEMENTS 1940 (the "1940 Act"), as amended, as an open-end,
July 31, 1995 series, management investment company consisting of nine
(Unaudited) portfolios. Matters affecting each portfolio are voted
on exclusively by the shareholders of such portfolio.
The assets, liabilities and operations of each portfolio
are accounted for separately. Information presented in
these financial statements pertains only to the AIM V.I.
Global Utilities Fund (formerly "AIM V.I. Utilities
Fund") (the "Fund"). Currently, shares of the Fund are
sold only to insurance company separate accounts to fund
the benefits of variable annuity contracts.
The following is a summary of the significant accounting
policies followed by the Fund in the presentation of its
financial statements.
A. Security Valuations - Equity securities, including
warrants, that are listed on a national securities
exchange or part of the NASDAQ National Market System
are valued at the last reported sales price or, in
the case of over-the-counter securities or if there
has been no sale that day, at the mean between the
closing bid and asked prices on that day. Non-
convertible debt securities are valued on the basis
of valuations furnished by a pricing service, which
determines valuations for normal, institutional-size
trading units of such securities using market
information, transactions for comparable securities
and various relationships between securities which
are generally recognized by institutional traders.
Securities traded in the over-the-counter market,
except (i) securities priced by the pricing service,
(ii) securities for which representative exchange
prices are available, and (iii) securities reported
in the NASDAQ National Market System, are valued at
the mean between representative last bid and asked
prices obtained from an electronic quotation
reporting system, if such prices are available, or
from established market makers. Exchange listed
convertible debt securities are valued at the mean
between the closing bid and asked prices obtained
from a broker-dealer. Short-term investments with
remaining maturities of up to and including 60 days
are valued at amortized cost which approximates
market value. Short-term securities that mature in
more than 60 days are valued at current market
quotations. Securities for which market quotations
are not readily available are valued at fair value as
determined in good faith by, or under the authority
of, the Board of Directors.
B. Securities Transactions, Investment Income and
Distributions - Securities transactions are accounted
for on a trade date basis. Interest income is
recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income and
distributions to shareholders are recorded on the ex-
dividend date. Realized gains or losses from
securities transactions are recorded on the
identified cost basis.
C. Federal Income Taxes - It is the Fund's policy to
continue to comply with the requirements of the
Internal Revenue Code applicable to regulated
investment companies and to distribute all of its
taxable income and capital gains to its shareholders.
Therefore, no provision for federal income taxes is
recorded in the financial statements. The Fund had
capital loss carryforwards (which may be carried
forward to offset future taxable capital gains, if
any) of $29,404, which expires, if not previously
utilized, in the year 2003.
D. Foreign Currency Translations - Portfolio securities
and other assets and liabilities denominated in
foreign currencies are translated into U.S. dollars
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.
E. Forward Currency Contracts - A forward 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 forward
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 currency
contract for the amount of a 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.
35
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an
annual rate of 0.65% of the first $250 million of the
Fund's average daily net assets, plus 0.60% of the
Fund's average daily net assets in excess of $250
million. This agreement requires AIM to reduce its fees
or, if necessary, make payments to the Fund to the
extent required to satisfy any expense limitations
imposed by the securities laws or regulations thereunder
of any state in which the Fund's shares are qualified
for sale. During the six months ended July 31, 1995, AIM
waived advisory fees of $15,681 and reimbursed expenses
of $7,750 with respect to the Fund.
Pursuant to a master administrative services agreement
between the Company and AIM, with respect to the Fund,
the Company has agreed to reimburse certain
administrative costs incurred in providing accounting
services to the Fund. During the six months ended July
31, 1995, AIM was reimbursed $17,939 for such services.
The Company has entered into a master distribution
agreement with A I M Distributors, Inc. ("AIM
Distributors") to serve as the distributor for the Fund.
Certain officers and directors of the Company are
officers of AIM and AIM Distributors.
During the six months ended July 31, 1995, the Fund
incurred legal fees of $831 for services rendered by
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Directors. A member of that firm
is a director of the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued
to each director who is not an "interested person" of
AIM. The Company may invest directors' fees, if so
elected by a director, in mutual fund shares in
accordance with a deferred compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other
than short-term securities) purchased and sold by the
Fund during the six months ended July 31, 1995 was
$3,600,026 and $1,842,439, respectively.
The amount of unrealized appreciation of investment
securities on a tax basis as of July 31, 1995 is as
follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities............ $420,421
Aggregate unrealized (depreciation) of investment securities.......... (36,537)
--------
Net unrealized appreciation of investment securities.................. $383,884
========
</TABLE>
Cost of investments for tax purposes is $4,878,811.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding during the six
months ended July 31, 1995 and the period May 2, 1994
(date operations commenced) through January 31, 1995
were as follows:
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
------------------- -------------------
Shares Amount Shares Amount
------- ---------- ------- ----------
<S> <C> <C> <C> <C>
Sold................................. 267,218 $2,664,434 303,347 $2,952,131
Issued as reinvestment of
distributions....................... 3,636 34,978 5,893 56,551
Reacquired........................... (84,507) (862,564) (4,003) (27,051)
------- ---------- ------- ----------
186,347 $1,836,848 305,237 $2,981,631
======= ========== ======= ==========
</TABLE>
36
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
NOTE 6 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for
a share outstanding of the Fund during the six months
ended July 31, 1995 and the period May 2, 1994 (date
operations commenced) through January 31, 1995.
<TABLE>
<CAPTION>
July 31, January 31,
1995 1995
-------- -----------
<S> <C> <C>
Net asset value, beginning of period.............. $9.69 $10.00
------ ------
Income from investment operations:
Net investment income........................... 0.20 0.27
Net gains (losses) on securities (both realized
and unrealized)................................ 0.84 (0.33)
------ ------
Total from investment operations............... 1.04 (0.06)
------ ------
Less distributions:
Dividends from net investment income............ (0.09) (0.25)
------ ------
Net asset value, end of period.................... $10.64 $ 9.69
====== ======
Total return(a)................................... 10.77% (0.56)%
====== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted).......... $5,229 $2,958
====== ======
Ratio of expenses to average net assets........... 1.45%(b) 1.31%(c)(d)
====== ======
Ratio of net investment income to average net
assets........................................... 4.38%(b) 4.39%(c)(d)
====== ======
Portfolio turnover rate........................... 48% 69%
====== ======
</TABLE>
------
(a) Total return is not annualized.
(b) Ratios are annualized and based on average net
assets of $4,427,843. Annualized ratios of expenses
and net investment income to average net assets
prior to waiver of advisory fees and expense
reimbursements are 2.52% and 3.31%, respectively.
(c) Annualized.
(d) Annualized ratios of expenses and net investment
income to average net assets prior to waiver of
advisory fees and expense reimbursements are 2.80%
and 2.90%, respectively.
37
AIM V.I. GLOBAL UTILITIES FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. GOVERNMENT PRINCIPAL MARKET
SECURITIES FUND AMOUNT VALUE
SCHEDULE OF --------- -----------
INVESTMENTS U.S. GOVERNMENT AGENCIES - 77.96%
July 31, 1995 FEDERAL FARM CREDIT BANK - 1.29%
(Unaudited) Medium term note
$ 200,000 5.96%, 07/14/03....................................... $ 191,554
-----------
FEDERAL HOME LOAN BANK BOARD - 6.60%
Debentures
150,000 8.375%, 10/25/99...................................... 161,282
500,000 7.31%, 07/06/01....................................... 518,295
285,000 7.78%, 10/19/01....................................... 302,941
-----------
982,518
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 25.22%
Debentures
150,000 6.13%, 08/19/99....................................... 148,812
500,000 7.90%, 09/19/01....................................... 536,055
300,000 6.185%, 11/26/03...................................... 286,137
500,000 8.00%, 01/26/05....................................... 543,300
500,000 8.115%, 01/31/05...................................... 547,230
Pass through certificates
344,950 6.00%, 11/01/08....................................... 332,118
579,844 6.50%, 12/01/08 to 07/01/23........................... 558,643
447,782 10.50%, 08/01/19....................................... 487,096
304,297 8.50%, 08/01/24....................................... 313,800
-----------
3,753,191
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 26.61%
Debentures
500,000 5.71%, 06/02/99....................................... 497,365
400,000 7.55%, 04/22/02....................................... 421,732
500,000 8.50%, 02/01/05....................................... 531,895
Medium term notes
400,000 7.68%, 12/01/97....................................... 412,528
600,000 7.375%, 03/28/05...................................... 626,604
Pass through certificates
91,636 7.50%, 11/01/09....................................... 92,637
680,554 8.25%, 04/01/22....................................... 696,813
188,635 6.50%, 06/01/23....................................... 180,380
486,518 8.50%, 09/01/24....................................... 501,560
-----------
3,961,514
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 7.53%
Pass through certificates
112,669 9.50%, 08/15/03 to 09/15/16........................... 119,721
308,313 9.00%, 09/15/08 to 10/15/16........................... 326,424
55,563 11.00%, 10/15/15....................................... 61,744
88,134 10.50%, 09/15/17 to 11/15/19........................... 97,001
543,468 6.50%, 12/15/23....................................... 515,946
-----------
1,120,836
-----------
</TABLE>
38
AIM V.I. GOVERNMENT SECURITIES FUND
<PAGE>
<TABLE>
<C> <S> <C>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
PRIVATE EXPORT FUNDING COMPANY - 2.10%
Debenture
$ 300,000 7.30%, 01/31/02....................................... $ 312,585
-----------
STUDENT LOAN MARKETING ASSOCIATION - 5.34%
Debentures
500,000 5.83%, 02/22/99....................................... 500,055
150,000 5.55%, 12/15/99....................................... 145,502
150,000 6.50%, 08/01/02....................................... 149,106
-----------
794,663
-----------
TENNESSEE VALLEY AUTHORITY - 3.27%
Debenture
500,000 6.375%, 06/15/05...................................... 486,945
-----------
Total U.S. Government Agencies................ 11,603,806
-----------
U.S. TREASURY SECURITIES - 17.27%
U.S. TREASURY NOTES & BONDS - 16.95%
300,000 6.875%, 08/31/99...................................... 307,704
500,000 7.50%, 02/15/05....................................... 536,160
1,100,000 7.25%, 05/15/16 to 08/15/22........................... 1,141,157
300,000 7.125%, 02/15/23...................................... 307,668
250,000 6.25%, 08/15/23....................................... 229,888
-----------
2,522,577
-----------
U.S. TREASURY STRIPS - 0.32%
150,000 6.81%(a), 02/15/12.................................... 47,760
-----------
Total U.S. Treasury Securities................ 2,570,337
-----------
REPURCHASE AGREEMENT - 3.33%(b)
Daiwa Securities America Inc.
494,904 5.83%, 08/01/95(c).................................... 494,904
-----------
Total Repurchase Agreement.................... 494,904
-----------
TOTAL INVESTMENTS - 98.56%.................... 14,669,047
OTHER ASSETS LESS LIABILITIES - 1.44%......... 214,497
-----------
NET ASSETS - 100.00%........................... $14,883,544
===========
</TABLE>
------
NOTES TO SCHEDULE OF INVESTMENTS:
(a) U.S. Treasury STRIPS are traded on a discount basis.
In such cases the interest rate shown represents the
rate of discount paid or received at the time of
purchase by the Fund.
(b) Collateral on repurchase agreements, including the
Fund's pro-rata interest in joint repurchase
agreements, is taken into possession by the Fund
upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its
market value as being 102% of the sales price of the
repurchase agreement. The investments in some
repurchase agreements are through participation in
joint accounts with other mutual funds managed by
the investment advisor.
(c) Joint repurchase agreement entered into 07/31/95
with a maturing value of $639,645,731.
Collateralized by $620,652,000 U.S. Treasury
obligations, 0% to 11.25% due 12/14/95 to 05/15/21.
See Notes to Financial Statements.
39
AIM V.I. GOVERNMENT SECURITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
AIM V.I. GOVERNMENT ASSETS:
SECURITIES FUND
STATEMENT OF Investments, at value (cost $14,652,577)........................... $14,669,047
ASSETS AND Receivables for:
LIABILITIES Capital stock sold............................................... 16,746
July 31, 1995 Interest......................................................... 202,343
(Unaudited) Investment for deferred compensation plan.......................... 1,406
Organizational costs, net.......................................... 7,983
Other assets....................................................... 11,355
-----------
Total assets................................................... 14,908,880
-----------
LIABILITIES:
Payable for deferred compensation.................................. 1,406
Accrued advisory fees.............................................. 6,327
Accrued directors' fees............................................ 312
Accrued administrative services fees............................... 2,363
Accrued operating expenses......................................... 14,928
-----------
Total liabilities.............................................. 25,336
-----------
Net assets applicable to shares outstanding........................ $14,883,544
===========
Capital shares, $.001 par value per share:
Authorized....................................................... 250,000,000
===========
Outstanding...................................................... 1,496,046
===========
Net asset value, offering and redemption price per share........... $9.95
===========
</TABLE>
See Notes to Financial Statements.
40
AIM V.I. GOVERNMENT SECURITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
AIM V.I. GOVERNMENT INVESTMENT INCOME:
SECURITIES FUND
STATEMENT OF Interest........................................................... $ 499,756
OPERATIONS ---------
For the six EXPENSES:
months ended
July 31, 1995 Advisory fees...................................................... 35,242
(Unaudited) Custodian fees..................................................... 8,953
Administrative services fees....................................... 17,903
Directors' fees and expenses....................................... 2,738
Professional fees.................................................. 11,217
Organizational costs............................................... 1,376
Other.............................................................. 8,451
---------
Total expenses................................................... 85,880
---------
Net investment income................................................ 413,876
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES:
Net realized gain (loss) on sales of investment securities........... (144,533)
Unrealized appreciation of investment securities..................... 725,023
---------
Net gain on investment securities.................................... 580,490
---------
Net increase in net assets resulting from operations................. $ 994,366
=========
</TABLE>
See Notes to Financial Statements.
41
AIM V.I. GOVERNMENT SECURITIES FUND
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
AIM V.I. GOVERNMENT July 31, January 31,
SECURITIES FUND 1995 1995
STATEMENT ----------- -----------
OF CHANGES OPERATIONS:
IN NET ASSETS
For the six Net investment income.............................. $ 413,876 $ 675,548
months ended Net realized gain (loss) on sales of investment
July 31, 1995 securities........................................ (144,533) (282,363)
and the year ended Net unrealized appreciation (depreciation) of
January 31, 1995 investment securities............................. 725,023 (760,122)
(Unaudited) ----------- -----------
Net increase (decrease) in net assets resulting
from operations................................. 994,366 (366,937)
Net equalization credits........................... 27,373 46,268
Net increase from capital stock transactions....... 1,161,748 3,196,439
Distributions to shareholders from net investment
income............................................ (187,159) (631,778)
----------- -----------
Net increase in net assets....................... 1,996,328 2,243,992
NET ASSETS:
Beginning of period................................ 12,887,216 10,643,224
----------- -----------
End of period...................................... $14,883,544 $12,887,216
=========== ===========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in)......... $14,817,669 $13,655,921
Undistributed net investment income................ 495,668 241,578
Undistributed net realized gain (loss) on sales of
investment securities............................. (446,263) (301,730)
Unrealized appreciation (depreciation) of
investment securities............................. 16,470 (708,553)
----------- -----------
$14,883,544 $12,887,216
=========== ===========
</TABLE>
See Notes to Financial Statements.
42
AIM V.I. GOVERNMENT SECURITIES FUND
<PAGE>
AIM V.I. GOVERNMENT NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
SECURITIES FUND AIM Variable Insurance Funds, Inc. (the "Company"), is
NOTES TO a Maryland corporation organized on January 22, 1993,
FINANCIAL and is registered under the Investment Company Act of
STATEMENTS 1940 (the "1940 Act"), as amended, as an open-end,
July 31, 1995 series, management investment company consisting of nine
(Unaudited) portfolios: AIM V.I. Government Securities Fund (the
"Fund"), AIM V.I. Capital Appreciation Fund, AIM V.I.
Diversified Income Fund, AIM V.I. Global Utilities Fund,
AIM V.I. Growth Fund, AIM V.I. Growth and Income Fund,
AIM V.I. International Equity Fund, AIM V.I. Money
Market Fund and AIM V.I. Value Fund. Matters affecting
each portfolio are voted on exclusively by the
shareholders of such portfolio. The assets, liabilities
and operations of each portfolio are accounted for
separately. Information presented in these financial
statements pertains only to the Fund. Currently, shares
of the Fund are sold only to insurance company separate
accounts to fund the benefits of variable annuity
contracts.
The following is a summary of the significant accounting
policies followed by the Fund in the presentation of its
financial statements.
A. Security Valuations - Debt obligations that are
issued or guaranteed by the U.S. Government, its
agencies, authorities, and instrumentalities 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, maturity and seasoning differential.
Securities for which market prices are not provided
by the pricing service are valued at the mean between
last bid and asked prices based upon quotes furnished
by independent sources. Securities for which market
quotations are not readily available 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.
Short-term obligations having 60 days or less to
maturity are valued at amortized cost which
approximates market value.
B. Securities Transactions, Investment Income and
Distributions - Securities transactions are accounted
for on a trade date basis. Interest income is
recorded as earned from settlement date and is
recorded on the accrual basis. Distributions to
shareholders are recorded on the ex-dividend date. It
is the policy of the Fund not to amortize market
discounts and premiums on bonds for financial
reporting purposes. Realized gains or losses from
securities transactions are recorded on the
identified cost basis.
C. Federal Income Taxes - For federal income tax
purposes, each portfolio in the Company is taxed as a
separate entity. It is the Fund's policy to continue
to comply with the requirements of the Internal
Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income
and capital gains to its shareholders. Therefore, no
provision for federal income taxes is recorded in the
financial statements. The Fund had capital loss
carryforwards (which may be carried forward to offset
future taxable capital gains, if any) of $74,320,
which expires, if not previously utilized, through
the year 2003.
D. Equalization - The Fund follows the accounting
practice known as equalization by which a portion of
the proceeds from sales and the costs of repurchases
of Fund shares, equivalent on a per share basis to
the amount of undistributed net investment income, is
credited or charged to undistributed net income when
the transaction is recorded so that undistributed net
investment income per share is unaffected by sales or
redemptions of Fund shares.
E. Organizational Costs - Organizational costs for the
Fund of $14,461 are being amortized over five years.
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an
annual rate of 0.50% of the first $250 million of the
Fund's average daily net assets, plus 0.45% of the
Fund's average daily net assets in excess of $250
million. This agreement requires AIM to reduce its fees
or, if necessary, make payments to the Fund to the
extent required to satisfy any expense limitations
imposed by the securities laws or regulations thereunder
of any state in which the Fund's shares are qualified
for sale.
Pursuant to a master administrative services agreement
between the Company and AIM, with respect to the Fund,
the Company has agreed to reimburse certain
administrative costs incurred in providing accounting
services to the Fund. During the six months ended July
31, 1995, AIM was reimbursed $17,903 for such services.
The Company has entered into a master distribution
agreement with A I M Distributors, Inc. ("AIM
Distributors") to serve as the distributor of the Fund's
shares.
Certain officers and directors of the Company are
officers of AIM and AIM Distributors.
43
AIM V.I. GOVERNMENT SECURITIES FUND
<PAGE>
The Fund incurred legal fees of $837 for services
rendered by Kramer, Levin, Naftalis, Nessen, Kamin &
Frankel as counsel to the Board of Directors. A member
of that firm is a director of the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued
to each director who is not an "interested person" of
AIM. The Company may invest a director's fees, if so
elected by such director, in mutual fund shares in
accordance with a deferred compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other
than short-term securities) purchased and sold by the
Fund during the six months ended July 31, 1995 was
$6,420,382 and $4,825,789, respectively.
The amount of unrealized appreciation (depreciation) of
investment securities on a tax basis as of July 31, 1995
is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities........... $ 165,603
Aggregate unrealized (depreciation) of investment securities......... (149,133)
---------
Net unrealized appreciation of investment securities................. $ 16,470
=========
</TABLE>
Investments have the same cost for tax and financial
statement purposes.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding during the six
months ended July 31, 1995 and the year ended January
31, 1995 were as follows:
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
--------------------- ---------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Sold............................. 234,199 $ 2,219,801 500,188 $ 4,784,080
Issued as reinvestment of
distributions................... 19,680 182,436 66,676 631,778
Reacquired....................... (129,867) (1,240,489) (234,604) (2,219,419)
-------- ----------- -------- -----------
124,012 $ 1,161,748 332,260 $ 3,196,439
======== =========== ======== ===========
</TABLE>
NOTE 6 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for
a share outstanding of the Fund during the six months
ended July 31, 1995, the year ended January 31, 1995,
and the period May 5, 1993 (date operations commenced)
through January 31, 1994.
<TABLE>
<CAPTION>
January 31,
July 31, -------------------
1995 1995 1994
-------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period....... $ 9.39 $ 10.24 $ 10.00
------- ------- -------
Income from investment operations:
Net investment income.................... 0.29 0.53 0.38
Net gains (losses) on securities (both
realized and unrealized)................ 0.40 (0.88) 0.10
------- ------- -------
Total from investment operations........ 0.69 (0.35) 0.48
------- ------- -------
Less distributions:
Dividends from net investment income..... (0.13) (0.50) (0.24)
------- ------- -------
Total distributions..................... (0.13) (0.50) (0.24)
------- ------- -------
Net asset value, end of period............. $ 9.95 $ 9.39 $ 10.24
======= ======= =======
Total return(a)............................ 7.41% (3.42)% 4.78%
======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted)... $14,884 $12,887 $10,643
======= ======= =======
Ratio of expenses to average net assets.... 1.22%(b) 0.95%(c) 1.00%(c)
======= ======= =======
Ratio of net investment income to average
net assets................................ 5.87%(b) 5.51%(d) 4.74%(d)
======= ======= =======
Portfolio turnover rate.................... 36% 29% 0%
======= ======= =======
</TABLE>
------
(a) Total returns for periods less than one year are not
annualized.
(b) Ratios are annualized and are based on average net
assets of $14,213,464.
(c) Ratios of expenses to average net assets prior to
waiver of advisory fees and/or expense
reimbursements are 1.10% and 1.80% (annualized) for
1995 and 1994, respectively.
(d) Ratios of net investment income to average net
assets prior to waiver of advisory fees and/or
expense reimbursements are 5.35% and 3.94%
(annualized) for 1995 and 1994, respectively.
44
AIM V.I. GOVERNMENT SECURITIES FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. GROWTH MARKET
FUND SHARES VALUE
SCHEDULE OF ------ ------
INVESTMENTS COMMON STOCKS - 83.31%
July 31, 1995 ADVERTISING/BROADCASTING - 0.25%
(Unaudited) 4,400 Time Warner, Inc..................................... $ 188,650
------------
AEROSPACE/DEFENSE - 0.74%
6,000 Boeing Co. (The)..................................... 402,000
2,600 Lockheed Martin Corp................................. 163,475
------------
565,475
------------
APPLIANCES - 1.01%
20,000 Newell Co............................................ 507,500
5,000 Premark International Inc............................ 264,375
------------
771,875
------------
AUTOMOBILE/TRUCKS PARTS & TIRES - 0.74%
6,000 Dana Corp............................................ 177,000
10,000 Echlin Inc........................................... 390,000
------------
567,000
------------
BANKING - 1.36%
18,600 Corestates Financial Corp............................ 678,900
15,000 Southern National Corp............................... 360,000
------------
1,038,900
------------
BANKING (MONEY CENTER) - 0.64%
2,300 BankAmerica Corp..................................... 124,200
6,900 Chase Manhattan Corp................................. 370,013
------------
494,213
------------
BEVERAGES - 0.91%
14,800 PepsiCo Inc.......................................... 693,750
------------
BIOTECHNOLOGY - 0.25%
2,200 Amgen Inc.(a)........................................ 187,275
------------
BUILDING MATERIALS - 0.37%
9,000 Black & Decker Corp.................................. 284,625
------------
BUSINESS SERVICES - 2.47%
5,400 Equifax Inc.......................................... 207,225
9,600 Healthcare COMPARE Corp.(a).......................... 326,400
13,000 Manpower Inc......................................... 365,625
9,300 Olsten Corp.......................................... 325,500
2,900 ServiceMaster L.P.................................... 81,925
16,567 Value Health, Inc.(a)................................ 583,986
------------
1,890,661
------------
CHEMICALS - 0.97%
10,000 Dow Chemical Co...................................... 741,250
------------
CHEMICALS (SPECIALTY) - 0.57%
5,700 Praxair, Inc......................................... 159,600
4,500 W.R. Grace & Co...................................... 278,438
------------
438,038
------------
COMPUTER MAINFRAMES - 2.14%
15,000 International Business Machines Corp................. 1,633,125
------------
</TABLE>
45
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<C> <S> <C>
MARKET
SHARES VALUE
------ ------
COMPUTER MINI/PCS - 1.81%
4,000 COMPAQ Computer Corp.(a)............................. $ 203,000
7,000 Dell Computer Corp.(a)............................... 455,000
6,800 Hewlett-Packard Co................................... 529,550
4,000 Sun Microsystems Inc.(a)............................. 192,500
------------
1,380,050
------------
COMPUTER NETWORKING - 2.04%
7,400 Bay Networks, Inc.(a)................................ 332,075
3,750 Cabletron Systems, Inc.(a)........................... 195,000
8,800 Cisco Systems, Inc.(a)............................... 490,600
7,300 3Com Corp.(a)........................................ 540,656
------------
1,558,331
------------
COMPUTER PERIPHERALS - 1.79%
11,000 Adaptec Inc.(a)...................................... 470,250
31,000 EMC Corp.(a)......................................... 709,125
4,500 Oracle Systems Corp.(a).............................. 188,438
------------
1,367,813
------------
COMPUTER SOFTWARE & SERVICES - 5.04%
5,300 Adobe System, Inc.................................... 327,275
3,800 Autodesk Inc......................................... 171,950
4,600 BMC Software, Inc.(a)................................ 356,500
10,000 Cadence Design Systems, Inc.(a)...................... 377,500
12,000 Computer Associates International, Inc............... 880,500
6,200 FTP Software, Inc.(a)................................ 179,800
6,000 Informix Corp.(a).................................... 177,750
10,000 Mentor Graphics Corp.(a)............................. 185,000
1,800 Microsoft Corp.(a)................................... 162,900
5,000 Parametric Technology Corp.(a)....................... 281,250
5,900 Policy Management Systems Corp.(a)................... 316,388
4,600 Silicon Graphics, Inc.(a)............................ 193,200
2,100 SPS Transaction Services, Inc.(a).................... 59,325
4,500 Sterling Software, Inc.(a)........................... 184,500
------------
3,853,838
------------
CONGLOMERATES - 0.71%
8,500 Federal Signal Corp. ................................ 195,500
1,500 Loews Corp. ......................................... 180,563
3,000 Tyco International Ltd. ............................. 165,000
------------
541,063
------------
CONTAINERS - 0.93%
10,500 Ball Corp. .......................................... 388,500
7,100 Crown Cork & Seal Co., Inc.(a)....................... 320,387
------------
708,887
------------
COSMETICS & TOILETRIES - 0.41%
3,800 Alberto-Culver Co. - Class A ........................ 97,850
1,500 Gillette Co. (The)................................... 65,625
2,200 Procter & Gamble Co. ................................ 151,525
------------
315,000
------------
</TABLE>
46
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
ELECTRONIC COMPONENTS - 3.22%
4,900 Itel Corp.(a)......................................... $ 208,250
26,000 Philips Electronics N.V.-New York Shares-ADR.......... 1,280,500
1,400 Premier Industrial Corp. ............................. 34,650
6,000 Tektronix, Inc. ...................................... 288,750
8,000 Teradyne, Inc.(a)..................................... 655,000
-----------
2,467,150
-----------
ELECTRONIC/DEFENSE - 0.26%
3,000 Sunstrand Corp. ...................................... 200,625
-----------
ELECTRONIC/PC DISTRIBUTORS - 1.66%
13,200 Arrow Electronics, Inc.(a)............................ 745,800
10,000 Avnet, Inc. .......................................... 520,000
-----------
1,265,800
-----------
FINANCE (ASSET MANAGEMENT) - 0.64%
12,000 Finova Group, Inc. ................................... 490,500
-----------
FINANCE (CONSUMER CREDIT) - 4.05%
5,000 Capital One Financial Corp. .......................... 118,750
21,000 Countrywide Credit Industries, Inc. .................. 467,250
3,500 Dean Witter Discover & Co. ........................... 176,750
7,100 Federal Home Loan Mortgage Corp....................... 465,050
6,700 First USA, Inc. ...................................... 305,688
8,100 Green Tree Acceptance, Inc. .......................... 438,412
12,400 MBNA Corp. ........................................... 444,850
8,000 Mercury Finance Co. .................................. 158,000
4,100 PMI Group, Inc. (The)................................. 190,650
4,000 Student Loan Marketing Association.................... 215,500
2,000 SunAmerica, Inc. ..................................... 114,500
-----------
3,095,400
-----------
FINANCE (SAVINGS & LOAN) - 0.39%
2,700 Golden West Financial Corp. .......................... 126,225
7,000 Greenpoint Financial Corp. ........................... 168,875
-----------
295,100
-----------
FOOD PROCESSING - 1.40%
4,500 ConAgra, Inc. ........................................ 169,875
4,000 Heinz (H.J.) Co. ..................................... 173,500
13,700 Hudson Foods, Inc. ................................... 188,375
7,066 Lancaster Colony Corp. ............................... 266,742
11,000 Tyson Foods, Inc. .................................... 272,937
-----------
1,071,429
-----------
FUNERAL SERVICES - 0.70%
4,400 Loewen Group, Inc. ................................... 155,650
11,000 Service Corp. International........................... 375,375
-----------
531,025
-----------
GAMING - 0.14%
4,000 Harrah's Entertainment, Inc.(a)....................... 107,500
-----------
HOTELS/MOTELS - 0.57%
4,600 Hospitality Franchise Systems Inc.(a)................. 202,400
8,000 La Quinta Motor Inns Inc.............................. 225,000
-----------
427,400
-----------
INSURANCE (LIFE & HEALTH) - 0.44%
8,000 AFLAC Inc. ........................................... 338,000
-----------
</TABLE>
47
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
INSURANCE (MULTI-LINE PROPERTY) - 0.85%
13,000 ACE, Ltd. ............................................ $ 385,125
1,000 General Re Corp. ..................................... 132,625
2,000 Transatlantic Holdings, Inc. ......................... 132,000
-----------
649,750
-----------
LEISURE & RECREATION - 0.47%
9,900 Callaway Golf Co. .................................... 148,500
7,400 Mattel, Inc. ......................................... 209,050
-----------
357,550
-----------
MACHINERY (HEAVY) - 0.21%
4,500 Case Corp. ........................................... 158,625
-----------
MACHINERY (MISCELLANEOUS) - 0.49%
8,700 Thermo Electron Corp.(a).............................. 371,925
-----------
MEDICAL (DRUGS) - 5.09%
3,500 American Home Products Corp. ......................... 276,500
7,000 AmeriSource Health Corp.(a)........................... 155,750
5,100 Cardinal Health Inc. ................................. 258,825
4,000 Forest Laboratories, Inc.(a).......................... 177,500
5,000 Johnson & Johnson..................................... 358,750
15,000 Mallinckrodt Group, Inc. ............................. 581,250
3,100 Merck & Co., Inc. .................................... 160,038
16,600 Mylan Laboratories, Inc. ............................. 500,075
6,800 Pfizer Inc. .......................................... 343,400
16,000 Schering-Plough Corp. ................................ 744,000
3,800 Teva Pharmaceutical Industries Ltd.-ADR............... 150,813
5,000 Watson Pharmaceuticals, Inc.(a)....................... 180,000
-----------
3,886,901
-----------
MEDICAL (PATIENT SERVICES) - 4.24%
14,819 Apria Healthcare Group, Inc.(a)....................... 481,617
3,500 Columbia/HCA Healthcare Corp. ........................ 171,500
5,900 Health Management Associates, Inc.(a)................. 189,538
8,700 Healthsource, Inc.(a)................................. 316,462
31,000 Healthsouth Corp.(a).................................. 596,750
20,000 Lincare Holdings, Inc.(a)............................. 695,000
8,000 Mid Atlantic Medical Services, Inc.(a)................ 157,000
7,500 Sybron Corp.(a)....................................... 310,313
10,000 Vencor, Inc.(a)....................................... 323,750
-----------
3,241,930
-----------
MEDICAL INSTRUMENTS/PRODUCTS - 2.66%
3,600 Becton, Dickinson and Co. ............................ 211,950
11,000 Biomet, Inc.(a)....................................... 167,750
11,000 Boston Scientific Corp.(a)............................ 401,500
9,700 Cordis Corp.(a)....................................... 700,825
2,900 Medtronic, Inc. ...................................... 237,800
4,500 St. Jude Medical, Inc. ............................... 246,375
1,500 Stryker Corp. ........................................ 65,625
-----------
2,031,825
-----------
METALS - 0.01%
200 Alumax, Inc.(a)....................................... 6,875
-----------
</TABLE>
48
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
OFFICE AUTOMATION - 1.60%
13,000 Danka Business Systems PLC-ADR....................... $ 388,375
7,000 Xerox Corp. ......................................... 833,875
------------
1,222,250
------------
OFFICE PRODUCTS - 0.57%
7,000 Avery Dennison Corp. ................................ 280,875
5,000 Reynolds & Reynolds Co. - Class A.................... 158,125
------------
439,000
------------
PAPER & FOREST PRODUCTS - 0.46%
4,700 Federal Paper Board Co., Inc. ....................... 175,662
3,000 Mead Corp. (The)..................................... 176,625
------------
352,287
------------
POLLUTION CONTROL - 0.38%
7,500 Browning-Ferris Industries, Inc. .................... 289,687
------------
PUBLISHING - 0.47%
8,000 Harcourt General, Inc. .............................. 360,000
------------
RESTAURANTS - 0.35%
5,000 Cracker Barrel Old Country Store, Inc. .............. 105,000
6,800 Morrison Restaurants Inc. ........................... 158,950
100 Wendy's International, Inc. ......................... 1,862
------------
265,812
------------
RETAIL (FOOD & DRUGS) - 1.45%
11,800 Hannaford Bros. Co. ................................. 317,125
12,300 Kroger Co.(a)........................................ 382,838
10,700 Safeway Inc.(a)...................................... 409,275
------------
1,109,238
------------
RETAIL (STORES) - 3.13%
9,600 AutoZone, Inc.(a).................................... 249,600
8,000 Circuit City Stores, Inc. ........................... 297,000
19,900 Consolidated Stores Corp.(a)......................... 442,775
9,000 Home Depot, Inc. .................................... 394,875
5,850 Staples, Inc.(a)..................................... 131,625
5,400 Sysco Corp. ......................................... 168,075
4,700 Tandy Corp. ......................................... 279,062
12,100 Viking Office Products Inc.(a)....................... 426,525
------------
2,389,537
------------
SCIENTIFIC INSTRUMENTS - 0.94%
13,000 Varian Associates, Inc. ............................. 716,625
------------
SEMICONDUCTORS - 15.89%
3,800 Altera Corp.(a)...................................... 212,562
14,000 Analog Devices, Inc.(a).............................. 507,500
9,400 Applied Materials, Inc.(a)........................... 972,900
9,700 Atmel Corp.(a)....................................... 660,813
14,600 Cirrus Logic, Inc.(a)................................ 671,600
11,200 Cypress Semiconductor Corp.(a)....................... 590,800
4,600 Integrated Device Technology, Inc.(a)................ 288,075
2,500 Intel Corp. ......................................... 162,500
4,600 KLA Instruments Corp.(a)............................. 399,050
9,000 LAM Research Corp.(a)................................ 614,250
</TABLE>
49
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
SEMICONDUCTORS - (CONTINUED)
4,600 Linear Technology Corp. ............................ $ 356,500
11,000 LSI Logic Corp.(a).................................. 514,250
15,000 Micron Technology Inc. ............................. 937,500
15,000 Motorola, Inc. ..................................... 1,149,375
15,800 National Semiconductor Corp.(a)..................... 426,600
5,000 Novellus Systems, Inc.(a)........................... 398,750
10,500 Solectron Corp.(a).................................. 381,937
10,800 Texas Instruments Inc. ............................. 1,687,500
8,970 Vishay Intertechnology, Inc.(a)..................... 367,770
11,400 VLSI Technology Inc.(a)............................. 337,725
4,200 Xilinx, Inc.(a)..................................... 503,475
------------
12,141,432
------------
SHOES & RELATED APPAREL - 0.24%
2,000 NIKE, Inc. - Class B................................ 180,750
------------
TELECOMMUNICATIONS - 3.53%
4,400 ADC Telecommunications, Inc.(a)..................... 170,500
9,000 DSC Communications Corp.(a)......................... 483,750
4,700 General Instrument Corp.(a)......................... 173,313
1,550 Glenayre Technologies, Inc.(a)...................... 96,875
8,800 Nokia Corp.--ADR.................................... 578,600
18,000 Scientific-Atlanta Inc. ............................ 387,000
25,400 Telefonaktiebolaget L.M. Ericsson-ADR............... 473,075
7,500 Tellabs, Inc.(a).................................... 333,750
------------
2,696,863
------------
TOBACCO - 1.66%
16,200 Philip Morris Companies, Inc. ...................... 1,160,325
4,000 UST, Inc. .......................................... 109,000
------------
1,269,325
------------
Total Common Stocks............................. 63,647,935
------------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
CONVERTIBLE BONDS - 0.96%
COMPUTER SOFTWARE & SERVICES - 0.23%
$ 250,000 Silicon Graphics Inc., (b)(c)
Conv. Sub. Deb., 4.15%, 11/02/13 (Acquired 07/31/95;
cost $171,570)..................................... 172,063
------------
ELECTRONIC COMPONENTS - 0.25%
150,000 Altera Corp.,(c)
Conv. Deb., 5.75%, 06/15/02 (Acquired 07/27/95 -
07/28/95; cost $191,663)........................... 188,647
------------
RETAIL (STORES) - 0.48%
550,000 Office Depot Inc.,(b)
Sub. Liquid Yield Option Notes, 4.00%, 11/01/08.... 369,875
------------
Total Convertible Bonds......................... 730,585
------------
</TABLE>
50
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<C> <S> <C>
U.S. TREASURY BILLS(d) - 12.51%
$3,000,000(e) 5.69%, 10/19/95................................. $ 2,965,020
4,000,000(e) 5.48%, 11/16/95................................. 3,936,160
710,000 5.48%, 12/07/95................................. 696,552
2,000,000 5.42%, 12/21/95................................. 1,957,980
------------
Total U.S. Treasury Bills................... 9,555,712
------------
REPURCHASE AGREEMENT - 3.73%(f)
2,852,710 Daiwa Securities America Inc., 5.83%,
08/01/95(g).................................... 2,852,710
------------
Total Repurchase Agreement.................. 2,852,710
------------
TOTAL INVESTMENTS - 100.51%..................... 76,786,942
LIABILITIES LESS OTHER ASSETS - (0.51%)......... (389,947)
------------
NET ASSETS - 100.00%............................ $ 76,396,995
============
</TABLE>
<TABLE>
<C> <S>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Zero coupon bond. The interest rate shown represents
the rate of the original issue discount.
(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 valuation of these securities
has been determined in accordance with procedures
established by the Board of Directors. The market
value of these securities at July 31, 1995 was
$360,710, which represented 0.47% of the Fund's net
assets.
(d) U.S. Treasury bills are traded on a discount basis.
In such cases the interest rate shown represents the
rate of discount paid or received at the time of
purchase by the Fund.
(e) A portion of the principal balance was pledged as
collateral to cover margin requirements for open
futures contracts. See Note 6 to Financial
Statements.
(f) Collateral on repurchase agreements, including the
Fund's pro-rata interest in joint repurchase
agreements, is taken into possession by the Fund
upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its
market value as being 102 percent of the sales price
of the repurchase agreement. The investments in some
repurchase agreements are through participation in
joint accounts with other mutual funds managed by
the investment advisor.
(g) Joint repurchase agreement entered into on 07/31/95
with a maturing value of $639,645,731.
Collateralized by $620,652,000 U.S. Treasury
obligations, 0% to 11.25% due 12/14/95 to 05/15/21.
Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Deb. - Debentures
Sub. - Subordinated
See Notes to Financial Statements.
</TABLE>
51
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. GROWTH ASSETS:
FUND
STATEMENT OF Investments, at value (cost $64,261,911)........................... $76,786,942
ASSETS AND Receivables for:
LIABILITIES Capital stock sold............................................... 675,237
July 31, 1995 Investments sold................................................. 1,408,683
(Unaudited) Dividends and interest........................................... 20,506
Organizational costs, net.......................................... 7,954
Investment for deferred compensation plan.......................... 5,166
Other assets....................................................... 706
-----------
Total assets................................................... 78,905,194
-----------
LIABILITIES:
Payables for:
Investments purchased............................................ 2,399,075
Deferred compensation plan....................................... 5,166
Variation margin................................................. 20,700
Market value of outstanding call options (premiums received
$8,866)........................................................... 17,719
Accrued advisory fees.............................................. 39,858
Accrued directors' fees............................................ 359
Accrued administrative services fees............................... 3,390
Accrued operating expenses......................................... 21,932
-----------
Total liabilities.............................................. 2,508,199
-----------
Net assets applicable to shares outstanding........................ $76,396,995
===========
Capital shares, $.001 par value per share:
Authorized....................................................... 250,000,000
===========
Outstanding...................................................... 5,457,603
===========
Net asset value, offering and redemption price per share........... $14.00
======
See Notes to Financial Statements.
</TABLE>
52
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. GROWTH INVESTMENT INCOME:
FUND
STATEMENT OF Dividends...................................................... $ 228,805
OPERATIONS Interest....................................................... 258,308
For the six -----------
months ended Total investment income....................................... 487,113
July 31, 1995 -----------
(Unaudited) EXPENSES:
Advisory fees.................................................. 190,178
Custodian fees................................................. 34,519
Administrative services fees................................... 19,104
Directors' fees and expenses................................... 2,444
Organizational costs........................................... 1,446
Other.......................................................... 12,008
-----------
Total expenses................................................ 259,699
-----------
Net investment income............................................ 227,414
-----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES,
FOREIGN CURRENCIES, FUTURES AND OPTIONS CONTRACTS:
Net realized gain (loss) from:
Investment securities.......................................... 4,039,675
Foreign currency transactions.................................. (985)
Futures contracts.............................................. 645,960
Options contracts.............................................. 4,041
-----------
4,688,691
-----------
Unrealized appreciation (depreciation) of:
Investment securities.......................................... 10,776,313
Futures contracts.............................................. 257,255
Options contracts.............................................. (14,247)
-----------
11,019,321
-----------
Net gain on investment securities, foreign currencies, futures
and options contracts........................................... 15,708,012
-----------
Net increase in net assets resulting from operations............. $15,935,426
===========
See Notes to Financial Statements.
</TABLE>
53
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
JULY 31, JANUARY 31,
1995 1995
----------- -----------
<S> <C> <C>
AIM V.I. GROWTH OPERATIONS:
FUND
STATEMENT OF Net investment income............................... $ 227,414 $ 251,660
CHANGES IN Net realized gain (loss) from investment securities,
NET ASSETS foreign currency transactions, futures and options
For the six contracts.......................................... 4,688,691 (1,983,553)
months ended Net unrealized appreciation (depreciation) of
July 31, 1995 investment securities, futures and options
and for the contracts.......................................... 11,019,321 (134,010)
year ended ----------- -----------
January 31, 1995 Net increase (decrease) in net assets resulting
(Unaudited) from operations.................................... 15,935,426 (1,865,903)
Net increase from capital stock transactions........ 14,964,553 22,469,536
Distributions to shareholders from net investment
income............................................. -- (221,516)
----------- -----------
Net increase in net assets......................... 30,899,979 20,382,117
NET ASSETS:
Beginning of period................................. 45,497,016 25,114,899
----------- -----------
End of period....................................... $76,396,995 $45,497,016
=========== ===========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in).......... $60,939,081 $45,974,528
Undistributed net investment income................. 267,215 39,801
Undistributed net realized gain (loss) from
investment securities, foreign currency
transactions, futures and options contracts ....... 2,244,796 (2,443,895)
Unrealized appreciation of investment securities,
futures and options contracts...................... 12,945,903 1,926,582
----------- -----------
$76,396,995 $45,497,016
=========== ===========
See Notes to Financial Statements.
</TABLE>
54
AIM V.I. GROWTH FUND
<PAGE>
AIM V.I. GROWTH
FUND
NOTES TO
FINANCIAL
STATEMENTS
July 31, 1995
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Variable Insurance Funds, Inc. (the "Company"), is
a Maryland corporation organized on January 22, 1993,
and is registered under the Investment Company Act of
1940 (the "1940 Act"), as amended, as an open-end,
series, management investment company consisting of nine
portfolios. Matters affecting each portfolio are voted
on exclusively by the shareholders of such portfolio.
The assets, liabilities and operations of each portfolio
are accounted for separately. Information presented in
these financial statements pertains only to the AIM V.I.
Growth Fund (the "Fund"). Currently, shares of the Fund
are sold only to insurance company separate accounts to
fund the benefits of variable annuity contracts.
The following is a summary of the significant accounting
policies followed by the Fund in the presentation of its
financial statements.
A. Security Valuations - Equity securities, including
warrants, that are listed on a national securities
exchange or part of the NASDAQ National Market System
are valued at the last reported sales price or, in
the case of over-the-counter securities or if there
has been no sale that day, at the mean between the
closing bid and asked prices on that day. Securities
traded in the over-the-counter market, except (i)
securities for which representative exchange prices
are available, and (ii) securities reported in the
NASDAQ National Market System, are valued at the mean
between representative last bid and asked prices
obtained from an electronic quotation reporting
system, if such prices are available, or from
established market makers. Exchange listed
convertible debt is valued at the mean between the
closing bid and asked prices obtained from a broker-
dealer. Short-term investments with remaining
maturities of up to and including 60 days are valued
at amortized cost which approximates market value.
Short-term securities that mature in more than 60
days are valued at current market quotations.
Securities for which market quotations are not
readily available 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. Generally,
trading in foreign securities is substantially
completed each day at various times prior to the
close of the New York Stock Exchange. 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 New York Stock
Exchange. 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 New York Stock Exchange which will
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. Interest income is
recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income and
distributions to shareholders are recorded on the ex-
dividend date. Realized gains or losses from
securities transactions are recorded on the
identified cost basis.
C. Federal Income Taxes - It is the Fund's policy to
continue to comply with the requirements of the
Internal Revenue Code applicable to regulated
investment companies and to distribute all of its
taxable income and capital gains to its shareholders.
Therefore, no provision for federal income taxes is
recorded in the financial statements. The Fund had
capital loss carryforwards (which may be carried
forward to offset future taxable capital gains, if
any) of $2,158,232, which expires, if not previously
utilized, through the year 2003.
D. Organizational Costs - Organizational costs of
$14,461 are being amortized over five years.
E. Stock Index Futures Contracts - The Fund may purchase
or sell stock index futures contracts as a hedge
against changes in market conditions. Initial margin
deposits required upon entering into futures
contracts are satisfied by the segregation of
specific securities as collateral for the account of
the broker (the Fund's agent in acquiring the futures
position). During the period the futures contracts
are open, changes in the value of the contracts are
recognized as unrealized gains or losses by "marking
to market" on a daily basis to reflect the market
value of the contracts at the end of each day's
trading. Variation margin payments are made or
received depending upon whether unrealized gains or
losses are incurred. When the contracts are closed,
the Fund recognizes a realized gain or loss equal to
the difference between the proceeds from, or cost of,
the closing transaction and the Fund's basis in the
contract. Risks include the possibility of an
illiquid market and the change in the value of the
contracts may not correlate with changes in the value
of the securities being hedged.
F. Covered Call Options - The Fund may write call
options, but only on a covered basis; that is, the
Fund will own the underlying security. Options
written by the Fund normally will have expiration
dates
55
AIM V.I. GROWTH FUND
<PAGE>
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
between three and nine months from the date written.
The exercise price of a call option may be below,
equal to, or above the current market value of the
underlying security at the time the option is
written. When the Fund writes a covered call option,
an amount equal to the premium received by the Fund
is recorded as an asset and an equivalent liability.
The amount of the liability is subsequently "marked-
to-market" to reflect the current market value of the
option written. The current market value of a written
option is the last sale price, or in the absence of a
sale, the mean between the last bid and asked prices
on that day. If a written call option expires on the
stipulated expiration date, or if the Fund enters
into a closing purchase transaction, the Fund
realizes a gain (or a loss if the closing purchase
transaction exceeds the premium received when the
option was written) without regard to any unrealized
gain or loss on the underlying security, and the
liability related to such option is extinguished. If
a written option is exercised, the Fund realizes a
gain or a loss from the sale of the underlying
security and the proceeds of the sale are increased
by the premium originally received.
A call option gives the purchaser of such option the
right to buy, and the writer (the Fund) the
obligation to sell, the underlying security at the
stated exercise price during the option period. The
purchaser of a call option has the right to acquire
the security which is the subject of the call option
at any time during the option period. During the
option period, in return for the premium paid by the
purchaser of the option, the Fund has given up the
opportunity for capital appreciation above the
exercise price should the market price of the
underlying security increase, but has retained the
risk of loss should the price of the underlying
security decline. During the option period, the Fund
may be required at any time to deliver the underlying
security against payment of the exercise price. This
obligation is terminated upon the expiration of the
option period or at such earlier time at which the
Fund effects a closing purchase transaction by
purchasing (at a price which may be higher than that
received when the call option was written) a call
option identical to the one originally written. The
Fund will not write a covered call option if,
immediately thereafter, the aggregate value of the
securities underlying all such options, determined as
of the dates such options were written, would exceed
5% of the net assets of the Fund.
G. 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.
H. Foreign Currency Contracts - A forward 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 forward
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 forward
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.
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an
annual rate of 0.65% of the first $250 million of the
Fund's average daily net assets, plus 0.60% of the
Fund's average daily net assets in excess of $250
million. This agreement requires AIM to reduce its fee
or, if necessary, make payments to the Fund to the
extent required to satisfy any expense limitations
imposed by the securities laws or regulations thereunder
of any state in which the Fund's shares are qualified
for sale.
Pursuant to a master administrative services agreement
between the Company and AIM, with respect to the Fund,
the Company has agreed to reimburse certain
administrative costs incurred in providing accounting
services to the Fund. During the six months ended July
31, 1995, AIM was reimbursed $19,104 for such services.
The Company has entered into a master distribution
agreement with A I M Distributors, Inc. ("AIM
Distributors") to serve as the distributor for the Fund.
Certain officers and directors of the Company are
officers of AIM and AIM Distributors.
During the six months ended July 31, 1995, the Fund
incurred legal fees of $883 for services rendered by
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Directors. A member of that firm
is a director of the Company.
56
AIM V.I. GROWTH FUND
<PAGE>
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued
to each director who is not an "interested person" of
AIM. The Company may invest directors' fees, if so
elected by a director, in mutual fund shares in
accordance with a deferred compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other
than short-term securities) purchased and sold by the
Fund during the six months ended July 31, 1995 was
$51,817,461 and $38,131,233, respectively.
The amount of unrealized appreciation (depreciation) of
investment securities on a tax basis as of July 31, 1995
is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities......... $12,906,855
Aggregate unrealized (depreciation) of investment securities....... (392,235)
-----------
Net unrealized appreciation of investment securities............... $12,514,620
===========
</TABLE>
Cost of investments for tax purposes is $64,272,322.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding during the six
months ended July 31, 1995 and the year ended January
31, 1995 were as follows:
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................... 1,439,696 $17,756,934 2,275,155 $24,585,827
Issued as reinvestment of
distributions................. -- -- 21,037 221,516
Reacquired..................... (230,720) (2,792,381) (215,349) (2,337,807)
--------- ----------- --------- -----------
1,208,976 $14,964,553 2,080,843 $22,469,536
========= =========== ========= ===========
</TABLE>
NOTE 6 - OPEN FUTURES CONTRACTS
On July 31, 1995, $401,000 principal amount of U.S.
Treasury Bills were pledged as collateral to cover
margin requirements for open futures contracts.
Open futures contracts at July 31, 1995 were as follows:
<TABLE>
<CAPTION>
Unrealized
Contract No. of Contracts/Month/Commitment Appreciation
-------- --------------------------------- ------------
<S> <C> <C>
S&P 500 index.................... 36 contracts/September/Buy $429,725
</TABLE>
NOTE 7 - OPEN COVERED CALL OPTIONS CONTRACTS WRITTEN
Transactions in call options written during the six
months ended July 31, 1995 are summarized as follows:
<TABLE>
<CAPTION>
Option Contracts
-------------------
Number of Premiums
Contracts Received
--------- --------
<S> <C> <C>
Beginning of period.......................................... 66 $9,120
Written...................................................... 45 8,866
Exercised.................................................... (33) (5,079)
Expired...................................................... (33) (4,041)
--- ------
End of period................................................ 45 $8,866
=== ======
</TABLE>
Open covered call options contracts written at July 31,
1995 were as follows:
<TABLE>
<CAPTION>
Market Value Unrealized
Number of Premium July 31, Appreciation
Issuer Contract Contracts Received 1995 (Depreciation)
------ ------------- --------- -------- ------------ --------------
<S> <C> <C> <C> <C> <C>
ConAgra, Inc...... Dec. 95 Calls 45 $8,866 $17,719 $(8,853)
</TABLE>
57
AIM V.I. GROWTH FUND
<PAGE>
NOTE 8 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for
a share outstanding of the Fund during the six months
ended July 31, 1995, the year ended January 31, 1995 and
the period May 5, 1993 (date operations commenced)
through January 31, 1994.
<TABLE>
<CAPTION>
January 31,
July 31, -----------------
1995 1995 1994
-------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period......... $ 10.71 $ 11.59 $ 10.00
------- ------- -------
Income from investment operations:
Net investment income...................... 0.04 0.06 0.02
Net gains (losses) on securities (both
realized and unrealized).................. 3.25 (0.88) 1.59
------- ------- -------
Total from investment operations.......... 3.29 (0.82) 1.61
------- ------- -------
Less distributions:
Dividends from net investment income....... -- (0.06) (0.02)
------- ------- -------
Net asset value, end of period............... $ 14.00 $ 10.71 $ 11.59
======= ======= =======
Total return................................. 30.72%(a) (7.11)% 16.07%(a)
======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted)..... $76,397 $45,497 $25,115
======= ======= =======
Ratio of expenses to average net assets...... 0.89%(b) 0.95% 0.85%(c)
======= ======= =======
Ratio of net investment income to average net
assets...................................... 0.78%(b) 0.71% 0.51%(c)
======= ======= =======
Portfolio turnover rate...................... 73% 179% 99%
======= ======= =======
</TABLE>
------
(a) Total return is not annualized.
(b) Ratios are annualized and based on average net
assets of $59,001,196.
(c) Ratios are annualized and based on average net
assets of $9,997,693. Annualized ratios of expenses
and net investment income (loss) to average net
assets prior to waiver of advisory fees are 1.50%
and (0.14)%, respectively.
58
AIM V.I. GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <C> <S> <C>
AIM V.I. GROWTH MARKET
AND INCOME FUND SHARES VALUE
SCHEDULE OF ------ ------
INVESTMENTS
July 31, 1995 COMMON STOCKS - 79.31%
(Unaudited) ADVERTISING/BROADCASTING - 0.31%
1,000 Omnicom Group, Inc................................... $ 60,375
------------
AEROSPACE/DEFENSE - 1.76%
3,000 Boeing Co. (The)..................................... 201,000
1,200 Rockwell International Corp.......................... 54,750
1,000 United Technologies Corp............................. 84,000
------------
339,750
------------
APPLIANCES - 0.42%
3,200 Newell Co............................................ 81,200
------------
AUTOMOBILE/TRUCKS PARTS & TIRES - 1.01%
2,400 Dana Corp............................................ 70,800
1,200 Echlin Inc........................................... 46,800
1,800 Goodyear Tire & Rubber Co............................ 78,075
------------
195,675
------------
BANKING - 0.17%
800 Mellon Bank Corp..................................... 32,100
------------
BANKING (MONEY CENTER) - 2.02%
1,399 BankAmerica Corp..................................... 75,546
1,600 Chase Manhattan Corp................................. 85,800
2,000 Chemical Banking Corp................................ 103,250
2,000 Citicorp............................................. 124,750
------------
389,346
------------
BEVERAGES - 1.90%
2,000 Coca-Cola Co. (The).................................. 131,750
5,000 PepsiCo Inc.......................................... 234,375
------------
366,125
------------
BUILDING MATERIALS - 0.45%
1,600 Black & Decker Corp.................................. 50,600
1,400 Masco Corp........................................... 36,400
------------
87,000
------------
BUSINESS SERVICES - 2.11%
1,600 Block (H & R), Inc................................... 60,000
1,600 Diebold, Inc......................................... 74,000
4,000 Equifax Inc.......................................... 153,500
2,000 Manpower Inc......................................... 56,250
800 Olsten Corp.......................................... 28,000
1,000 Value Health, Inc.(a)................................ 35,250
------------
407,000
------------
CHEMICALS - 1.16%
2,400 Dow Chemical Co...................................... 177,900
1,000 PPG Industries, Inc.................................. 45,750
------------
223,650
------------
CHEMICALS (SPECIALTY) - 1.04%
1,800 IMC Global, Inc...................................... 108,450
1,500 W.R. Grace & Co...................................... 92,812
------------
201,262
------------
COMPUTER MAINFRAMES - 2.59%
4,600 International Business Machines Corp................. 500,825
------------
</TABLE>
59
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
COMPUTER MINI/PCS - 1.44%
1,600 COMPAQ Computer Corp.(a).............................. $ 81,200
1,600 Dell Computer Corp.(a)................................ 104,000
1,200 Hewlett-Packard Co.................................... 93,450
-----------
278,650
-----------
COMPUTER NETWORKING - 1.13%
1,400 Bay Networks, Inc.(a)................................. 62,825
1,000 Cabletron Systems, Inc.(a)............................ 52,000
1,200 Cisco Systems, Inc.(a)................................ 66,900
2,400 ECI Telecom Ltd....................................... 36,300
-----------
218,025
-----------
COMPUTER PERIPHERALS - 2.02%
2,000 Adaptec Inc.(a)....................................... 85,500
8,000 EMC Corp.(a).......................................... 183,000
800 Komag, Inc.(a)........................................ 54,900
1,600 Read-Rite Corp.(a).................................... 66,000
-----------
389,400
-----------
COMPUTER SOFTWARE & SERVICES - 3.24%
600 Adobe Systems, Inc.................................... 37,050
800 Autodesk Inc.......................................... 36,200
800 BMC Software, Inc.(a)................................. 62,000
1,800 Computer Associates International, Inc................ 132,075
800 First Financial Management Corp....................... 70,000
1,000 Microsoft Corp.(a).................................... 90,500
1,200 Silicon Graphics, Inc.(a)............................. 50,400
1,600 Sterling Software, Inc.(a)............................ 65,600
1,400 Wallace Computer Services, Inc........................ 81,725
-----------
625,550
-----------
CONGLOMERATES - 1.22%
1,600 Allied-Signal Inc..................................... 74,800
1,200 Du Pont (E.I) de Nemours & Co......................... 80,400
300 ITT Corp.............................................. 36,000
600 TRW Inc............................................... 44,775
-----------
235,975
-----------
CONTAINERS - 0.23%
1,200 Ball Corp............................................. 44,400
-----------
COSMETICS & TOILETRIES - 2.61%
1,600 Colgate-Palmolive Co.................................. 112,000
2,400 Gillette Co. (The).................................... 105,000
3,600 Procter & Gamble Co................................... 247,950
800 Tambrands Inc......................................... 37,700
-----------
502,650
-----------
ELECTRONIC COMPONENTS - 4.11%
1,400 AMP Inc............................................... 60,375
800 Emerson Electric Corp................................. 56,600
3,500 General Electric Co................................... 206,500
800 General Signal Corp................................... 29,500
1,200 Honeywell Inc......................................... 51,450
6,000 Philips Electronics N.V.-New York Shares-ADR.......... 295,500
700 Symbol Technologies Inc.(a)........................... 26,687
1,400 Tektronix, Inc........................................ 67,375
-----------
793,987
-----------
</TABLE>
60
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
ELECTRONIC/DEFENSE - 0.51%
800 Loral Corp............................................ $ 44,800
800 Sundstrand Corp....................................... 53,500
-----------
98,300
-----------
ELECTRONIC/PC DISTRIBUTORS - 0.90%
2,400 Avnet, Inc............................................ 124,800
1,200 Wyle Electronics...................................... 48,300
-----------
173,100
-----------
FINANCE (ASSET MANAGEMENT) - 0.81%
800 Franklin Resources, Inc............................... 39,900
1,200 Merrill Lynch & Co., Inc.............................. 66,600
600 Morgan Stanley Group Inc.............................. 50,175
-----------
156,675
-----------
FINANCE (CONSUMER CREDIT) - 3.01%
2,000 American Express Co................................... 77,000
5,000 Countrywide Credit Industries, Inc.................... 111,250
1,200 Federal Home Loan Mortgage Corp....................... 78,600
1,000 Federal National Mortgage Association................. 93,625
2,000 Household International, Inc.......................... 105,000
3,200 MBNA Corp............................................. 114,800
-----------
580,275
-----------
FINANCE (SAVINGS & LOAN) - 0.51%
2,000 Ahmanson (H.F.) & Co.................................. 44,750
2,200 Greenpoint Financial Group............................ 53,075
-----------
97,825
-----------
FOOD PROCESSING - 0.98%
2,000 Heinz (H.J.) Co....................................... 86,750
2,400 Nabisco Holdings Corp................................. 68,100
1,200 Sara Lee Corp......................................... 34,350
-----------
189,200
-----------
FUNERAL SERVICES - 0.57%
1,200 Loewen Group, Inc..................................... 42,450
2,000 Service Corp. International........................... 68,250
-----------
110,700
-----------
HOME BUILDING - 0.29%
2,000 Centex Corp........................................... 56,000
-----------
HOTELS/MOTELS - 0.26%
1,400 Marriott Corp......................................... 50,750
-----------
INSURANCE (LIFE & HEALTH) - 0.26%
1,200 Lincoln National Corp................................. 49,350
-----------
INSURANCE (MULTI-LINE PROPERTY) - 1.86%
1,200 Aetna Life & Casualty Co.............................. 74,250
3,200 Allstate Corp......................................... 100,000
2,000 American General Corp................................. 72,750
800 CIGNA Corp............................................ 64,500
1,000 Travelers Group, Inc.................................. 47,375
-----------
358,875
-----------
LEISURE & RECREATION - 0.18%
1,200 Mattel, Inc........................................... 33,900
-----------
MACHINERY (HEAVY) - 0.24%
1,300 Case Corp............................................. 45,825
-----------
</TABLE>
61
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
MACHINERY (MISCELLANEOUS) - 0.33%
1,500 Thermo Electron Corp.(a)............................. $ 64,125
------------
MEDICAL (DRUGS) - 10.32%
3,400 Abbott Laboratories.................................. 136,000
2,400 American Home Products Corp.......................... 189,600
600 Elan Corp. PLC-ADR(a)................................ 25,200
1,600 Forest Laboratories, Inc.-Class A(a)................. 71,000
2,000 Glaxo Wellcome PLC-ADR............................... 48,000
3,942 ICN Pharmaceuticals, Inc............................. 77,362
1,600 IVAX Corp............................................ 38,600
4,000 Johnson & Johnson.................................... 287,000
2,400 Lilly (Eli) & Co..................................... 187,800
1,100 Merck & Co., Inc..................................... 56,788
1,400 Mylan Laboratories, Inc.............................. 42,175
8,800 Pfizer Inc........................................... 444,400
4,000 Schering-Plough Corp................................. 186,000
2,000 SmithKline Beecham PLC-ADR........................... 90,000
2,800 Teva Pharmaceuticals Industries Ltd.-ADR............. 111,125
------------
1,991,050
------------
MEDICAL (PATIENT SERVICES) - 2.23%
1,700 Columbia/HCA Healthcare Corp......................... 83,300
1,200 Coventry Corp.(a).................................... 19,200
2,400 HEALTHSOUTH Corp.(a)................................. 46,200
1,200 Horizon Healthcare Corp.(a).......................... 27,150
3,000 Integrated Health Services, Inc...................... 96,750
3,000 Mid Atlantic Medical Services, Inc.(a)............... 58,875
1,600 United Healthcare Corp............................... 72,400
800 Vencor, Inc.(a)...................................... 25,900
------------
429,775
------------
MEDICAL INSTRUMENTS/PRODUCTS - 1.61%
1,600 Cordis Corp.(a)...................................... 115,600
600 Medtronic, Inc....................................... 49,200
900 Scherer (R.P.) Corp.................................. 36,450
2,000 St. Jude Medical, Inc................................ 109,500
------------
310,750
------------
NATURAL GAS PIPELINE - 0.38%
2,000 Williams Companies, Inc. (The)....................... 74,000
------------
OFFICE AUTOMATION - 2.49%
800 Automatic Data Processing Inc........................ 51,200
3,600 Xerox Corp........................................... 428,850
------------
480,050
------------
OIL & GAS (EXPLORATION & PRODUCTION) - 0.25%
2,400 USX-Marathon Group................................... 48,300
------------
OIL & GAS SERVICES - 1.89%
600 Atlantic Richfield Co................................ 69,150
1,400 Exxon Corp........................................... 101,500
1,200 Mobil Corp........................................... 117,300
600 Royal Dutch Petroleum Co.-ADR........................ 76,200
------------
364,150
------------
OIL EQUIPMENT & SUPPLIES - 0.56%
1,600 Schlumberger Ltd..................................... 107,200
------------
</TABLE>
62
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
PAPER & FOREST PRODUCTS - 1.16%
800 Albany International Corp. - Class A................. $ 20,300
1,200 Champion International Corp.......................... 67,650
1,600 Kimberly-Clark Corp.................................. 101,400
600 Mead Corp. (The)..................................... 35,325
------------
224,675
------------
POLLUTION CONTROL - 0.56%
2,800 Browning-Ferris Industries, Inc...................... 108,150
------------
PUBLISHING - 0.64%
2,000 News Corp. Ltd. (The)-ADR............................ 47,250
1,200 Tribune Co........................................... 76,650
------------
123,900
------------
RETAIL (FOOD & DRUGS) - 0.44%
2,200 Safeway Inc.(a)...................................... 84,150
------------
RETAIL (STORES) - 1.69%
1,000 Circuit City Stores, Inc............................. 37,125
1,200 Heilig-Meyers Co..................................... 30,300
1,500 Home Depot, Inc...................................... 65,812
3,000 Kmart Corp........................................... 47,250
1,000 Limited (The), Inc................................... 20,500
1,600 Pep Boys--Manny, Moe & Jack.......................... 45,000
4,000 Shopko Stores, Inc................................... 51,500
1,000 Toys "R' Us Inc.(a).................................. 28,000
------------
325,487
------------
SCIENTIFIC INSTRUMENTS - 0.69%
2,400 Varian Associates, Inc............................... 132,300
------------
SEMICONDUCTORS - 7.05%
1,500 Applied Materials, Inc.(a)........................... 155,250
3,000 Intel Corp........................................... 195,000
800 LAM Research Corp.(a)................................ 54,600
2,000 L S I Logic Corp.(a)................................. 93,500
1,200 Micron Technology, Inc............................... 75,000
2,800 Motorola, Inc........................................ 214,550
1,000 Solectron Corp.(a)................................... 36,375
3,200 Texas Instruments Inc................................ 500,000
1,200 VLSI Technology, Inc.(a)............................. 35,550
------------
1,359,825
------------
TELECOMMUNICATIONS - 1.40%
1,800 DSC Communications Corp.(a).......................... 96,750
2,500 General Instrument Corp.(a).......................... 92,188
4,400 Telefonaktiebolaget L.M. Ericsson-ADR................ 81,950
------------
270,888
------------
TELEPHONE - 2.15%
1,600 Ameritech Corp....................................... 77,400
1,200 Bellsouth Corp....................................... 81,300
1,500 Cincinnati Bell, Inc................................. 39,938
2,000 GTE Corp............................................. 71,000
3,000 SBC Communications, Inc.............................. 144,375
------------
414,013
------------
TOBACCO - 2.15%
5,800 Philip Morris Companies, Inc......................... 415,425
------------
Total Common Stocks.............................. 15,301,933
------------
</TABLE>
63
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
PREFERRED STOCKS - 4.13%
AUTOMOBILE (MANUFACTURERS) - 0.52%
1,600 General Motors Corp.-Series C, $3.25 Dep. Conv.
Pfd.............................................. $ 100,800
-----------
COMPUTER SOFTWARE & SERVICES - 0.77%
1,600 Ceridian Corp., $2.75 Conv. Pfd................... 147,600
-----------
FINANCE (ASSET MANAGEMENT) - 0.39%
1,500 United Companies Financial Corp., $2.97 Conv.
Pfd............................................... 76,125
-----------
FINANCE (CONSUMER CREDIT) - 0.17%
800 First USA, $1.9922 Conv. Pfd. PRIDES ............. 32,700
-----------
FUNERAL SERVICES - 0.34%
1,000 SCI Finance LLC-Series A, $3.125 Conv. Pfd........ 65,625
-----------
INSURANCE (MULTI-LINE PROPERTY) - 0.44%
2,000 Allstate Corp., $2.2984 Conv. Pfd................. 85,000
-----------
PAPER & FOREST PRODUCTS - 0.20%
1,000 Bowater, Inc.-Series B, $1.645 Dep. Conv. Pfd..... 39,500
-----------
POLLUTION CONTROL - 0.40%
2,000 Browning-Ferris Industries, Inc., 7.25% Conv. Pfd.
ACES.............................................. 77,000
-----------
SEMICONDUCTORS - 0.71%
1,400 National Semiconductor Corp., $3.25 Conv. Pfd..... 137,200
-----------
TELECOMMUNICATIONS - 0.19%
800 LCI International Inc., $1.25 Conv. Exch. Pfd..... 36,200
-----------
Total Preferred Stocks........................ 797,750
-----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
U.S. TREASURY BILLS(b) - 8.01%
$ 275,000(c) 5.90%, 10/05/95................................... 272,387
300,000(c) 5.84%, 10/12/95................................... 296,826
1,000,000(c) 5.365%, 01/11/96.................................. 975,620
-----------
Total U.S. Treasury Bills..................... 1,544,833
-----------
REPURCHASE AGREEMENT(d) - 6.99%
1,349,245 Daiwa Securities America, Inc. 5.83%, 08/01/95(e). 1,349,245
-----------
TOTAL INVESTMENTS - 98.44%........................ 18,993,761
OTHER ASSETS LESS LIABILITIES - 1.56%............. 299,830
-----------
NET ASSETS - 100.00%.............................. $19,293,591
===========
</TABLE>
Abbreviations:
ACES - Automatically Convertible Equity Securities
ADR - American Depositary Receipt
Conv. - Convertible
Dep. - Depositary
Exch. - Exchangeable
Pfd. - Preferred
PRIDES - Preferred Redeemable Increased Dividend
Equity Securities
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) U.S. Treasury Bills are traded on a discount basis.
In such cases the interest rate shown represents the
rate of discount paid or received at the time of
purchase by the Fund.
(c) A portion of the principal balance was pledged as
collateral to cover margin requirements for open
futures contracts. See Note 6 to Financial
Statements.
(d) Collateral on repurchase agreements, including the
Fund's pro-rata interest in joint repurchase
agreements, is taken into possession by the Fund
upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its
market value as being 102 percent of the sales price
of the repurchase agreement. The investments in some
repurchase agreements are through participation in
joint accounts with other mutual funds managed by
the investment advisor.
(e) Joint repurchase agreement entered into 07/31/95
with a maturing value of $639,645,731.
Collateralized by $620,652,000 U.S. Treasury
obligations, 0% to 11.25% due 12/14/95 to 05/15/21.
See Notes to Financial Statements.
64
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. GROWTH AND ASSETS:
INCOME FUND
STATEMENT OF Investments, at value (cost $16,686,030)........................... $18,993,761
ASSETS AND Receivables for:
LIABILITIES Investments sold................................................. 315,827
July 31, 1995 Capital stock sold............................................... 160,070
(Unaudited) Dividends and interest........................................... 13,316
Investment for deferred compensation plan.......................... 1,976
Other assets....................................................... 93
-----------
Total assets................................................... 19,485,043
-----------
LIABILITIES:
Payables for:
Investments purchased............................................ 168,276
Deferred compensation plan....................................... 1,976
Variation margin................................................. 1,325
Accrued directors' fees............................................ 372
Accrued administrative services fees............................... 2,749
Accrued operating expenses......................................... 16,754
-----------
Total liabilities.............................................. 191,452
-----------
Net assets applicable to shares outstanding........................ $19,293,591
===========
Capital shares, $.001 par value per share:
Authorized....................................................... 250,000,000
===========
Outstanding...................................................... 1,556,790
===========
Net asset value, offering and redemption price per share........... $12.39
======
See Notes to Financial Statements.
</TABLE>
65
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. GROWTH AND INVESTMENT INCOME:
INCOME FUND
STATEMENT OF Dividends....................................................... $ 101,644
OPERATIONS Interest........................................................ 51,774
For the six months ended ----------
July 31, 1995 Total investment income........................................ 153,418
(Unaudited) ----------
EXPENSES:
Advisory fees................................................... 38,550
Custodian fees.................................................. 17,305
Administrative services fees.................................... 18,037
Directors' fees and expenses.................................... 2,298
Professional fees............................................... 13,871
Other........................................................... 2,654
----------
Total expenses................................................. 92,715
Less expenses assumed by advisor.................................. (38,550)
----------
Net expenses................................................... 54,165
----------
Net investment income............................................. 99,253
----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND
FUTURES CONTRACTS:
Net realized gain (loss) from:
Investment securities........................................... 252,219
Futures contracts............................................... (1,992)
----------
250,227
----------
Unrealized appreciation of:
Investment securities........................................... 2,233,535
Futures contracts............................................... 35,650
----------
2,269,185
----------
Net gain on investment securities and futures contracts........... 2,519,412
----------
Net increase in net assets resulting from operations.............. $2,618,665
==========
See Notes to Financial Statements.
</TABLE>
66
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
JULY 31, JANUARY 31,
1995 1995
AIM V.I. GROWTH AND ----------- -----------
INCOME FUND <S> <C> <C>
STATEMENT OPERATIONS:
OF CANGES
IN NET ASSETS Net investment income............................... $ 99,253 $ 62,491
For the six months Net realized gain (loss) from investment securities
ended July 31, 1995 and futures contracts.............................. 250,227 (106,189)
and the period May 2, Net unrealized appreciation of investment securities
1994 (date operations and futures contracts.............................. 2,269,185 74,196
commenced) through ----------- ----------
January 31, 1995 Net increase in net assets resulting from
(Unaudited) operations........................................ 2,618,665 30,498
Net increase from capital stock transactions........ 9,318,603 7,412,315
Distributions to shareholders from net investment
income............................................. (23,823) (62,491)
Distributions in excess of net investment income.... -- (176)
----------- ----------
Net increase in net assets......................... 11,913,445 7,380,146
NET ASSETS:
Beginning of period................................. 7,380,146 --
----------- ----------
End of period....................................... $19,293,591 $7,380,146
=========== ==========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in).......... $16,730,918 $7,412,315
Undistributed net investment income................. 75,254 (176)
Undistributed net realized gain (loss) from
investment securities and futures contracts ....... 144,038 (106,189)
Unrealized appreciation of investment securities and
futures contracts.................................. 2,343,381 74,196
----------- ----------
$19,293,591 $7,380,146
=========== ==========
See Notes to Financial Statements.
</TABLE>
67
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<C> <S>
AIM V.I. GROWTH AND NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
INCOME FUND AIM Variable Insurance Funds, Inc. (the "Company"), is
NOTES TO a Maryland corporation organized on January 22, 1993,
FINANCIAL and is registered under the Investment Company Act of
STATEMENTS 1940 (the "1940 Act"), as amended, as an open-end,
July 31, 1995 series, management investment company consisting of nine
(Unaudited) portfolios. Matters affecting each portfolio are voted
on exclusively by the shareholders of such portfolio.
The assets, liabilities and operations of each portfolio
are accounted for separately. Information presented in
these financial statements pertains only to the AIM V.I.
Growth and Income Fund (the "Fund"). Currently, shares
of the Fund are sold only to insurance company separate
accounts to fund the benefits of variable annuity
contracts.
The following is a summary of the significant accounting
policies followed by the Fund in the presentation of its
financial statements.
A. Security Valuations - Equity securities, including
warrants, that are listed on a national securities
exchange or part of the NASDAQ National Market System
are valued at the last reported sales price or, in
the case of over-the-counter securities or if there
has been no sale that day, at the mean between the
closing bid and asked prices on that day. Securities
traded in the over-the-counter market, except (i)
securities for which representative exchange prices
are available, and (ii) securities reported in the
NASDAQ National Market System, are valued at the mean
between representative last bid and asked prices
obtained from an electronic quotation reporting
system, if such prices are available, or from
established market makers. Short-term investments
with remaining maturities of up to and including 60
days are valued at amortized cost which approximates
market value. Short-term securities that mature in
more than 60 days are valued at current market
quotations. Securities for which market quotations
are not readily available are valued at fair value as
determined in good faith by, or under the authority
of, the Board of Directors.
B. Securities Transactions, Investment Income and
Distributions - Securities transactions are accounted
for on a trade date basis. Interest income is
recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income and
distributions to shareholders are recorded on the ex-
dividend date. Realized gains or losses from
securities transactions are recorded on the
identified cost basis.
C. Federal Income Taxes - It is the Fund's policy to
continue to comply with the requirements of the
Internal Revenue Code applicable to regulated
investment companies and to distribute all of its
taxable income and capital gains to its shareholders.
Therefore, no provision for federal income taxes is
recorded in the financial statements. The Fund had
capital loss carryforwards (which may be carried
forward to offset future taxable capital gains, if
any) of $32,760, which expires, if not previously
utilized, in the year 2003.
D. Stock Index Futures Contracts -- The Fund may
purchase or sell stock index futures contracts as a
hedge against changes in market conditions. Initial
margin deposits required upon entering into futures
contracts are satisfied by the segregation of
specific securities as collateral for the account of
the broker (the Fund's agent in acquiring the futures
position). During the period the futures contracts
are open, changes in the value of the contracts are
recognized as unrealized gains or losses by "marking
to market" on a daily basis to reflect the market
value of the contracts at the end of each day's
trading. Variation margin payments are made or
received depending upon whether unrealized gains or
losses are incurred. When the contracts are closed,
the Fund recognizes a realized gain or loss equal to
the difference between the proceeds from, or cost of,
the closing transaction and the Fund's basis in the
contract. Risks include the possibility of an
illiquid market and the change in the value of the
contracts may not correlate with changes in the value
of the securities being hedged.
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an
annual rate of 0.65% of the first $250 million of the
Fund's average daily net assets, plus 0.60% of the
Fund's average daily net assets in excess of $250
million. This agreement requires AIM to reduce its fees
or, if necessary, make payments to the Fund to the
extent required to satisfy any expense limitations
imposed by the securities laws or regulations thereunder
of any state in which the Fund's shares are qualified
for sale. During the six months ended July 31, 1995, AIM
waived advisory fees of $38,550 with respect to the
Fund.
Pursuant to a master administrative services agreement
between the Company and AIM, with respect to the Fund,
the Company has agreed to reimburse certain
administrative costs incurred in providing accounting
services to the Fund. During the six months ended July
31, 1995, AIM was reimbursed $18,037 for such services.
</TABLE>
68
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
The Company has entered into a master distribution
agreement with A I M Distributors, Inc. ("AIM
Distributors") to serve as the distributor for the Fund.
Certain officers and directors of the Company are
officers of AIM and AIM Distributors.
During the six months ended July 31, 1995, the Fund
incurred legal fees of $831 for services rendered by
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Directors. A member of that firm
is a director of the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued
to each director who is not an "interested person" of
AIM. The Company may invest directors' fees, if so
elected by a director, in mutual fund shares in
accordance with a deferred compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other
than short-term securities) purchased and sold by the
Fund during the six months ended July 31, 1995 was
$11,642,618 and $4,781,729, respectively.
The amount of unrealized appreciation (depreciation) of
investment securities on a tax basis as of July 31, 1995
is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities.......... $2,370,072
Aggregate unrealized (depreciation) of investment securities........ (64,962)
----------
Net unrealized appreciation of investment securities................ $2,305,110
==========
</TABLE>
Cost of investments for tax purposes is $16,688,651.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding during the six
months ended July 31, 1995 and the period May 2, 1994
(date operations commenced) through January 31, 1995
were as follows:
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
------------------- -------------------
Shares Amount Shares Amount
------- ---------- ------- ----------
<S> <C> <C> <C> <C>
Sold................................. 837,309 $9,542,322 777,143 $7,797,618
Issued as reinvestment of
distributions....................... 2,262 23,823 6,308 62,667
Reacquired........................... (22,248) (247,542) (43,984) (447,970)
------- ---------- ------- ----------
817,323 $9,318,603 739,467 $7,412,315
======= ========== ======= ==========
</TABLE>
NOTE 6 - OPEN FUTURES CONTRACTS
On July 31, 1995, $102,000 principal amount of U.S.
Treasury bills were pledged as collateral to cover
margin requirements for open futures contracts.
Open futures contracts at July 31, 1995 were as
follows:
<TABLE>
<CAPTION>
No. of Contracts/ Unrealized
Contract Month/Commitment Appreciation
-------- -------------------- ------------
<S> <C> <C>
S&P 400 Mid-Cap Index 7 contracts/Sept/Buy $ 9,625
S&P 500 Index 2 contracts/Sept/Buy 26,025
-------
$35,650
=======
</TABLE>
69
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for
a share outstanding of the Fund during the six months
ended July 31, 1995 and the period May 2, 1994 (date
operations commenced) through January 31, 1995.
<TABLE>
<CAPTION>
July 31, January 31,
1995 1995
-------- -----------
<S> <C> <C>
Net asset value, beginning of period.............. $ 9.98 $10.00
------- ------
Income from investment operations:
Net investment income........................... 0.08 0.11
Net gains (losses) on securities (both realized
and unrealized)................................ 2.36 (0.02)
------- ------
Total from investment operations............... 2.44 0.09
------- ------
Less distributions:
Dividends from net investment income............ (0.03) (0.11)
------- ------
Net asset value, end of period.................... $ 12.39 $ 9.98
======= ======
Total return(a)................................... 24.47% 0.90%
======= ======
Ratios/supplemental data:
Net assets, end of period (000s omitted).......... $19,294 $7,380
======= ======
Ratio of expenses to average net assets........... 0.91%(b) 1.07%(c)(d)
======= ======
Ratio of net investment income to average net
assets........................................... 1.67%(b) 1.95%(c)(d)
======= ======
Portfolio turnover rate........................... 46% 96%
======= ======
</TABLE>
------
(a) Total return is not annualized.
(b) Ratios are annualized and based on average net
assets of $11,959,740. Annualized ratios of expenses
and net investment income to average net assets
prior to waiver of advisory fees are 1.56% and
1.02%, respectively.
(c) Annualized.
(d) Annualized ratios of expenses and net investment
income to average net assets prior to waiver of
advisory fees are 1.72% and 1.30%, respectively.
70
AIM V.I. GROWTH AND INCOME FUND
<PAGE>
<TABLE>
<C> <C> <S> <C>
AIM V.I. MARKET
INTERNATIONAL SHARES VALUE
EQUITY FUND ------ ------
SCHEDULE OF STOCKS & OTHER EQUITY INTERESTS - 92.72%
INVESTMENTS ARGENTINA - 1.36%
July 31, 1995 20,200 Buenos Aires Embotellado - Class B-ADR(a) (Beverages-
(Unaudited) Soft Drinks)........................................ $ 502,475
90,000 Telecom Argentina S.A. - Class B
(Telecommunications)................................ 445,500
-----------
Total Argentina.................................. 947,975
-----------
AUSTRALIA - 3.44%
20,031 Broken Hill Proprietary Co. Ltd. (Conglomerate)...... 286,115
139,292 National Australia Bank Ltd. (Banking)............... 515,401
26,400 News Corp. Ltd. (The) (Publishing)................... 554,400
99,200 Pioneer International Ltd. (Building Materials)...... 251,297
71,977 QBE Insurance Group Ltd. (Insurance-Broker).......... 295,031
75,200 Western Mining Corp. Holding Ltd. (Metals-
Miscellaneous)...................................... 488,744
-----------
Total Australia.................................. 2,390,988
-----------
AUSTRIA - 1.69%
4,700 Oesterreichische Elektrizitaitswirts AG
(Verbundgesellschaft) - Class A
(Electric Services)................................. 345,118
4,450 OMV AG (Oil & Gas-Exploration & Production).......... 475,247
900 Wienerberger Baustoffindustrie AG (Building
Materials).......................................... 356,849
-----------
Total Austria.................................... 1,177,214
-----------
CANADA - 2.58%
54,600 Bombardier, Inc. - Class B (Transportation-
Miscellaneous)...................................... 667,896
26,000 GEAC Computer Corp. Ltd.(a) (Computer Software &
Services)........................................... 358,395
26,600 Imasco, Ltd. (Tobacco)............................... 475,937
8,200 Loewen Group Inc. (Funeral Services)................. 290,075
-----------
Total Canada..................................... 1,792,303
-----------
CHILE - 0.74%
6,600 Compania de Telefonos de Chile S.A.-ADR
(Telecommunications)................................ 516,450
-----------
DENMARK - 1.21%
7,800 Danisco A/S (Food Processing)........................ 358,987
1,900 Danske Traelastkompagni(a) (Building Materials)...... 145,625
6,500 Unidanmark A/S (Banking-Money Center)................ 335,344
-----------
Total Denmark.................................... 839,956
-----------
FINLAND - 1.01%
10,600 Nokia Corp. (Telecommunications)..................... 706,246
-----------
FRANCE - 9.63%
2,400 Accor S.A. (Hotels/Motels)........................... 320,568
1,150 Carrefour Supermarche (Retail-Stores)................ 658,583
3,825 Club Mediterranee S.A. (Leisure & Recreation)........ 395,153
3,050 Docks de France, S.A. (Retail-Food & Drug)........... 454,490
3,180 ECCO Travail Temporaire (Business Services).......... 516,339
2,275 Essilor International-Compagnie Generale d'Optique
(Medical Instruments/Products)...................... 398,831
107,000 Euro Disneyland SCA(a)(Leisure & Recreation)......... 374,048
2,580 Legrand (Electronic Components/Miscellaneous)........ 425,917
1,990 L'Oreal S.A. (Cosmetics & Toiletries)................ 526,209
2,900 LVMH Moet Hennessy Louis Vuitton (Beverages)......... 544,715
2,100 Pinault-Printemps, S.A. (Retail-Food & Drug)......... 442,659
1,025 Promodes S.A. (Retail-Food & Drug)................... 236,596
3,390 Roussel-Uclaf (Medical-Drugs)........................ 551,145
6,300 SGS-Thomson Microelectronics N.V.(a)
(Electronic Components/Miscellaneous)............... 297,675
</TABLE>
71
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- ------
<C> <S> <C>
FRANCE - (CONTINUED)
1,565 Sidel S.A. (Machinery-Miscellaneous)................. $ 557,867
-----------
Total France..................................... 6,700,795
-----------
GERMANY - 3.99%
880 Gehe A.G. (Medical-Drugs)............................ 428,415
2,280 Mannesmann A.G. (Machinery-Miscellaneous)............ 759,507
640 Sap A.G. (Computer Software & Services).............. 1,036,428
13,300 VEBA A.G. (Electric Services)........................ 551,840
-----------
Total Germany.................................... 2,776,190
-----------
HONG KONG - 6.07%
30,000 Cheung Kong Holdings Ltd. (Real Estate).............. 150,426
110,000 Consolidated Electric Power of Asia (Electric
Services)........................................... 256,591
653,368 First Pacific Co. (Conglomerate)..................... 696,599
103,000 Guoco Group Ltd. (Banking)........................... 543,086
40,000 HSBC Holdings PLC (Banking).......................... 542,776
118,000 Hutchison Whampoa Ltd. (Conglomerate)................ 594,727
19,200 Jardine Matheson Holdings Ltd. (Conglomerate)........ 144,000
750,000 Shanghai Petrochemical Co., Ltd. (Chemicals)......... 239,888
52,600 Sun Hung Kai Properties Ltd. (Real Estate)........... 395,961
125,000 Vatronix International (Electronic
Components/Miscellaneous)............................ 220,503
1,266,000 Yizheng Chemical Fibre Company Ltd. (Textiles)....... 437,652
-----------
Total Hong Kong.................................. 4,222,209
-----------
INDIA - 0.20%
7,000 Reliance Industries Ltd. (a) (Conglomerates)......... 137,410
-----------
INDONESIA - 2.10%
61,500 PT Astra International (Automobile/Trucks Parts &
Tires).............................................. 136,269
152,000 PT Bank International Indonesia (Banking)............ 537,511
92,500 PT Hanjaya Mandala Sampoerna (Tobacco)............... 789,811
-----------
Total Indonesia.................................. 1,463,591
-----------
IRELAND - 0.48%
8,000 Elan Corp. PLC-ADR(a) (Medical-Drugs)................ 336,000
-----------
ISRAEL - 0.43%
7,600 Teva Pharmaceutical Industries Ltd.-ADR (Medical-
Drugs).............................................. 301,625
-----------
ITALY - 0.93%
216,800 Telecom Italia Mobile S.p.A. (a) (Telephone)......... 271,835
216,800 Telecom Italia S.p.A. (Telephone).................... 374,028
-----------
Total Italy...................................... 645,863
-----------
JAPAN - 14.69%
18,000 Aisin Seiki Co., Ltd. (Automobile/Trucks Parts &
Tires).............................................. 220,258
9,000 Aiwa Co., Ltd. (Electronic Components/Miscellaneous). 229,436
15,000 Alpine Electronics (Electronic
Components/Miscellaneous)............................ 207,342
14,000 Asahi Tec Corp. (Automobile/Trucks Parts & Tires).... 99,456
2,100 Autobacs Seven (Retail-Stores)....................... 222,944
26,000 Bridgestone Corp. (Automobile/Trucks Parts & Tires).. 388,851
28,000 Canon, Inc. (Office Products)........................ 507,591
24,000 Daikin Manufacturing Co. (Automobile/Trucks Parts &
Tires).............................................. 413,324
9,900 Fanuc Ltd. (Machine Tools)........................... 447,553
43,000 Hitachi Ltd. (Electronic Components/Miscellaneous)... 456,016
16,000 Hoya Corp. (Medical Instruments/Products)............ 478,586
22,000 Koa Corp. (Electronic Components/Miscellaneous)...... 334,013
7,000 Kyocera Corp. (Electronic Components/Miscellaneous).. 604,351
5,000 Mabuchi Motor (Electronic Components/Miscellaneous).. 358,033
15,000 Minebea Co., Ltd. (Electronic
Components/Miscellaneous)........................... 114,548
</TABLE>
72
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
JAPAN - (CONTINUED)
2,200 Nemic-Lambda K.K. (Electronic
Components/Miscellaneous)........................... $ 101,700
4,000 Nichiei Co., Ltd. (Business Services)................ 253,796
32,000 Nikon Corp. (Conglomerate)........................... 359,665
1,100 Nippon Television Network (Advertising/Broadcasting). 254,249
7,200 Nissen (Retail-Stores)............................... 230,863
26,000 NOK Corp. (Automobile/Trucks Parts & Tires).......... 191,185
14,000 Noritz Corp. (Appliances)............................ 272,830
22,000 Omron Corp. (Electronic Components/Miscellaneous).... 501,020
5,000 Plenus Co., Ltd. (Restaurants)....................... 277,589
42,000 Ricoh Co., Ltd. (Office Products).................... 407,342
12,000 Rohm Co., Ltd. (Electronic Components/Miscellaneous). 681,169
20,000 Sharp Corp. (Electronic Components/Miscellaneous).... 292,318
15,000 Tokyo Electron Ltd. (Electronic
Components/Miscellaneous)........................... 562,542
61,000 Toshiba Corp. (Electronic Components/Miscellaneous).. 425,051
25,000 Yamaha Corp. (Leisure & Recreation).................. 334,240
-----------
Total Japan...................................... 10,227,861
-----------
MALAYSIA - 2.95%
25,000 Edaran Otomobil Nasional Berhad (Retail-Stores)...... 231,981
31,000 Genting Berhad (Leisure & Recreation)................ 307,843
92,000 Land & General Berhad (Paper & Forest Products)...... 316,389
80,000 Leader Universal Holdings (Telecommunications)....... 296,284
40,000 Malayan Banking Berhad (Banking)..................... 341,866
78,000 United Engineers (Machinery-Miscellaneous)........... 558,707
-----------
Total Malaysia................................... 2,053,070
-----------
MEXICO - 0.75%
40,100 Kimberly-Clark de Mexico S.A. (Retail-Stores)........ 521,759
-----------
NETHERLANDS - 8.36%
3,140 Akzo N.V. (Chemicals)................................ 412,333
4,900 DSM N.V. (Chemicals) ................................ 448,838
58,000 Elsevier N.V. (Publishing)........................... 739,234
4,187 Heineken N.V. (Beverages-Alcoholic).................. 661,673
7,550 Hoogovens & Staalfabriken N.V. (a) (Metals -
Miscellaneous)..................................... 345,546
15,700 Koninklijke Ahold N.V. (Retail-Food & Drug).......... 563,927
14,250 Philips Electronics N.V. -- New York Shares - ADR
(Electronic Components)............................. 699,887
12,000 PolyGram N.V. (Publishing)........................... 761,635
4,950 Ver Ned Uitgevuer Bezit N.V. (Publishing)............ 592,980
6,590 Wolters Kluwer N.V. (Publishing)..................... 596,006
-----------
Total Netherlands................................ 5,822,059
-----------
NEW ZEALAND - 1.86%
101,800 Carter Holt Harvey Ltd. (Paper & Forest Products).... 257,209
178,000 Fletcher Challenge Ltd. (Paper & Forest Products).... 527,692
128,400 Telecom Corp. of New Zealand Ltd. (Telephone)........ 512,147
-----------
Total New Zealand................................ 1,297,048
-----------
NORWAY - 1.01%
14,000 Hafslund Nycomed AS Class B (Medical
Instruments/Products)............................... 333,116
8,400 Norsk Hydro AS (Chemicals)........................... 369,622
-----------
Total Norway..................................... 702,738
-----------
SINGAPORE - 3.22%
54,000 Cerebos Pacific Ltd. (Food/Processing)............... 309,922
85,000 City Developments Ltd. (Real Estate)................. 533,575
136,000 DBS Land Ltd. (Real Estate).......................... 419,542
33,000 Keppel Corp. Ltd. (Conglomerates).................... 293,565
68,400 United OverSeas Bank Ltd. (Banking).................. 682,086
-----------
Total Singapore.................................. 2,238,690
-----------
</TABLE>
73
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
SPAIN -3.76%
4,100 Acerino S.A. (Metals - Miscellaneous)................ $ 578,119
6,500 Corporacion Mapfre Compania Internacional De
Reaseguros S.A. (Insurance-Broker).................. 365,521
10,100 Empresa Nacional de Electricidad, S.A. (Electric
Services)........................................... 538,294
4,750 Gas Natural SDG-E.S.A. (Natural Gas Pipeline)........ 565,320
13,700 Tabacalera S.A. (Tobacco)............................ 571,480
-----------
Total Spain...................................... 2,618,734
-----------
SWEDEN - 4.01%
19,770 Astra AB (Medical-Drugs)............................. 656,137
11,000 Autoliv AB (Automobile/Trucks Parts & Tires)......... 681,107
6,110 Electrolux AB (Appliances)........................... 321,684
25,600 Sandvik AB (Metals-Miscellaneous).................... 519,920
15,700 Skandia Forsakrings AB (Insurance-Multi-Line
Property)........................................... 337,744
14,800 Telefonaktiebolaget L.M. Ericsson-ADR
(Telecommunications)................................ 275,650
-----------
Total Sweden..................................... 2,792,242
-----------
SWITZERLAND - 3.29%
2,750 ADIA SA (Business Services).......................... 564,103
580 BBC Brown Boveri Ltd. (Engineering & Construction)... 610,500
590 Ciba-Geigy Ltd. (Chemicals).......................... 436,923
100 Roche Holdings A.G. (Medical-Drugs).................. 681,008
-----------
Total Switzerland................................ 2,292,534
-----------
THAILAND - 3.41%
152,130 Krung Thai Bank PLC (Banking)........................ 605,202
26,000 Land & House Co. Ltd. (Home Building)................ 525,040
5,300 Siam City Cement Co., Ltd. (Building Materials)...... 359,184
44,800 Thai Farmers Bank (Banking).......................... 430,630
31,100 United Communication Industry (Telecommunications)... 454,693
-----------
Total Thailand................................... 2,374,749
-----------
UNITED KINGDOM - 9.55%
45,000 Argos PLC (Retail-Stores)............................ 330,935
31,350 BOC Group PLC (Chemicals)............................ 426,019
56,900 British Petroleum PLC (Oil & Gas-Exploration &
Production)......................................... 430,730
367,200 Burton Group PLC (Retail-Stores)..................... 582,647
73,000 Dixons Group PLC (Retail-Stores)..................... 335,532
33,750 Farnell Electronics PLC (Electronic
Components/Miscellaneous)........................... 345,594
62,800 Granada Group PLC (Leisure & Recreation)............. 654,606
147,000 Medeva PLC (Medical-Drugs)........................... 582,830
28,000 Peninsular and Oriental Steam Navigation Co. (The)
(Transportation-Miscellaneous)...................... 261,871
29,900 Provident Financial PLC (Finance-Consumer Credit).... 318,360
65,500 Rentokil Group PLC (Business Services)............... 297,394
36,000 Smith (David S.) Holdings PLC (Paper & Forest
Products)........................................... 362,590
63,100 Standard Chartered PLC (Banking)..................... 370,227
72,000 Storehouse PLC (Retail-Stores)....................... 352,230
31,300 Thorn EMI PLC (Leisure & Recreation)................. 690,802
86,000 Vickers PLC (Automobile Manufacturers)............... 308,665
-----------
Total United Kingdom............................. 6,651,032
-----------
Total Stocks & Other Equity Interests............ 64,547,331
-----------
</TABLE>
74
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<C> <S> <C>
REPURCHASE AGREEMENT - 2.14%(b)
$1,488,477 Daiwa Securities America, Inc.
5.83%, 08/01/95(c)................................... $ 1,488,477
-----------
TOTAL INVESTMENT SECURITIES - 94.86%.................. 66,035,808
OTHER ASSETS LESS LIABILITIES - 5.14%................. 3,578,843
-----------
NET ASSETS - 100.00%.................................. $69,614,651
===========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102 percent of the sales price of
the repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other funds managed by the
investment advisor.
(c) Joint repurchase agreement entered into 07/31/95 with a maturing value of
$639,645,731. Collateralized by $620,652,000 U.S. Treasury obligations, 0%
to 11.25% due 12/14/95 to 05/15/21.
Abbreviations -
ADR - American Depositary Receipt
See Notes to Financial Statements.
</TABLE>
75
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. ASSETS:
INTERNATIONAL
EQUITY FUND Investments, at value (cost $55,600,066)........................... $66,035,808
STATEMENT OF Foreign currencies, at value (cost $2,834,421)..................... 2,841,263
ASSETS AND Receivables for:
LIABILITIES Capital stock sold............................................... 297,589
July 31, 1995 Investments sold................................................. 715,479
(Unaudited) Dividends and interest........................................... 72,800
Organizational costs, net.......................................... 7,954
Investment for deferred compensation plan.......................... 4,933
Other assets....................................................... 76,368
-----------
Total assets................................................... 70,052,194
-----------
LIABILITIES:
Payables for:
Investments purchased............................................ 331,141
Deferred compensation plan....................................... 4,933
Accrued advisory fees.............................................. 43,072
Accrued directors' fees............................................ 394
Accrued custodian fees............................................. 43,681
Accrued administrative services fees............................... 1,000
Accrued operating expenses......................................... 13,322
-----------
Total liabilities.............................................. 437,543
-----------
Net assets applicable to shares outstanding........................ $69,614,651
===========
Capital shares, $.001 par value per share:
Authorized....................................................... 250,000,000
===========
Outstanding...................................................... 5,215,694
===========
Net asset value, offering and redemption price per share........... $13.35
======
See Notes to Financial Statements.
</TABLE>
76
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. INVESTMENT INCOME:
INTERNATIONAL
EQUITY FUND Dividends (net of $98,882 foreign withholding tax)............. $ 653,583
STATEMENT OF Interest....................................................... 112,714
OPERATIONS -----------
For the six months ended Total investment income....................................... 766,297
July 31, 1995 -----------
(Unaudited) EXPENSES:
Advisory fees.................................................. 227,668
Custodian fees................................................. 74,171
Administrative services fees................................... 6,000
Directors' fees and expenses................................... 2,476
Organizational costs........................................... 1,446
Other.......................................................... 11,059
-----------
Total expenses................................................ 322,820
-----------
Net investment income............................................ 443,477
-----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investment securities.......................................... (1,476,546)
Foreign currency transactions.................................. 107,554
-----------
(1,368,992)
-----------
Unrealized appreciation of:
Investment securities.......................................... 12,651,314
Foreign currencies............................................. 13,086
-----------
12,664,400
-----------
Net gain on investment securities and foreign currencies......... 11,295,408
-----------
Net increase in net assets resulting from operations............. $11,738,885
===========
See Notes to Financial Statements.
</TABLE>
77
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<CAPTION>
AIM V.I. JULY 31, JANUARY 31,
INTERNATIONAL 1995 1995
EQUITY FUND ----------- -----------
STATEMENT <S> <C> <C>
OF CHANGES OPERATIONS:
IN NET ASSETS
For the six months ended Net investment income.............................. $ 443,477 $ 256,749
July 31, 1995 and the year Net realized gain (loss) on sales of investment
ended January 31, 1995 securities and foreign currency transactions...... (1,368,992) (983,419)
(Unaudited) Net unrealized appreciation (depreciation) of
investment securities and foreign currencies...... 12,664,400 (4,821,033)
----------- -----------
Net increase (decrease) in net assets resulting
from operations.................................. 11,738,885 (5,547,703)
Net increase from capital stock transactions....... 2,856,687 37,165,081
Distributions to shareholders from net investment
income............................................ -- (131,518)
----------- -----------
Net increase in net assets........................ 14,595,572 31,485,860
NET ASSETS:
Beginning of period................................ 55,019,079 23,533,219
----------- -----------
End of period...................................... $69,614,651 $55,019,079
=========== ===========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in)......... $61,059,751 $58,203,064
Undistributed net investment income................ 571,187 127,710
Undistributed net realized gain (loss) from
investment securities and foreign currency
transactions...................................... (2,461,911) (1,092,919)
Unrealized appreciation (depreciation) of
investment securities and foreign currencies...... 10,445,624 (2,218,776)
----------- -----------
$69,614,651 $55,019,079
=========== ===========
See Notes to Financial Statements.
</TABLE>
78
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<C> <S>
AIM V.I. NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
INTERNATIONAL AIM Variable Insurance Funds, Inc. (the "Company"), is a Maryland corporation
EQUITY FUND organized on January 22, 1993, and is registered under the Investment Company
NOTES TO Act of 1940 (the "1940 Act"), as amended, as an open-end, series, management
FINANCIAL investment company consisting of nine portfolios. Matters affecting each
STATEMENTS portfolio are voted on exclusively by the shareholders of such portfolio. The
July 31, 1995 assets, liabilities and operations of each portfolio are accounted for
(Unaudited) separately. Information presented in these financial statements pertains only
to AIM V.I. International Equity Fund (the "Fund"). Currently, shares of the
Fund are sold only to insurance company separate accounts to fund the benefits
of variable annuity contracts.
The following is a summary of the significant accounting policies followed by
the Fund in the presentation of its financial statements.
A. Security Valuations - A security listed or traded on an exchange is valued
at the last sales price on the exchange on which the securities are traded
or, lacking any sales, at the mean between the closing bid and asked prices
on the day of valuation. Securities traded in the over-the-counter market
are valued at the mean between the closing bid and asked prices on valuation
date. Securities for which market quotations are not readily available 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. Investments with maturities of 60 days or less are valued on
the basis of amortized cost which approximates market value. Generally,
trading in foreign securities is substantially completed each day at various
times prior to the close of the New York Stock Exchange. 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 New York Stock Exchange.
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 New York Stock Exchange which will 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. 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.
C. Foreign Currency Contracts - A forward 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 forward 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 forward contract for the amount
of a 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.
D. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Realized gains or
losses 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 an accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
E. 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 capital loss
carryforwards (which may be carried forward to offset future taxable gains,
if any) of $538,078, which expires, if not previously utilized, through the
year 2003.
F. Organizational Costs - Organizational costs of $14,461 are being amortized
over five years.
</TABLE>
79
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<C> <S>
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an annual rate of 0.75% of
the first $250 million of the Fund's average daily net assets, plus 0.70% of
the Fund's average daily net assets in excess of $250 million. This agreement
requires AIM to reduce its fees or, if necessary, make payments to the Fund to
the extent required to satisfy any expense limitations imposed by the
securities laws or regulations thereunder of any state in which the Fund's
shares are qualified for sale.
Pursuant to a master administrative services agreement between the Company and
AIM, with respect to the Fund, the Company has agreed to reimburse certain
administrative costs incurred in providing accounting services to the Fund.
During the six months ended July 31, 1995, AIM was reimbursed $6,000 for such
services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Fund.
Certain officers and directors of the Company are officers of AIM and AIM
Distributors.
During the six months ended July 31, 1995, the Fund incurred legal fees of
$891 for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
as counsel to the Board of Directors. A member of that firm is a director of
the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company may invest directors' fees, if
so elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold by the Fund during the six months ended July 31,
1995 was $26,380,593 and $19,689,360, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
on a tax basis as of July 31, 1995 is as follows:
</TABLE>
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities......... $11,227,874
Aggregate unrealized (depreciation) of investment securities....... (805,160)
-----------
Net unrealized appreciation of investment securities............... $10,422,714
===========
</TABLE>
<TABLE>
<C> <S>
Cost of investments for tax purposes is $55,613,094.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding during the six months ended July 31, 1995
and the year ended January 31, 1995 were as follows:
</TABLE>
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
-------------------- -----------------------
Shares Amount Shares Amount
-------- ---------- --------- ------------
<S> <C> <C> <C> <C>
Sold............................ 731,306 $8,902,535 3,273,461 $ 39,114,516
Issued as reinvestment of
distributions.................. -- -- 11,496 131,518
Reacquired...................... (505,607) (6,045,848) (179,533) (2,080,953)
-------- ---------- --------- ------------
225,699 $2,856,687 3,105,424 $ 37,165,081
======== ========== ========= ============
</TABLE>
80
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<C> <S>
NOTE 6 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share outstanding of
the Fund during the six months ended July 31, 1995, the year ended January 31,
1995 and the period May 5, 1993 (date operations commenced) through January 31,
1994.
</TABLE>
<TABLE>
<CAPTION>
January 31,
July 31, -------------------
1995 1995 1994
-------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period... $ 11.03 $ 12.49 $ 10.00
------- ------- -------
Income from investment operations:
Net investment income................ 0.08 0.06 --
Net gains (losses) on securities
(both realized and unrealized)...... 2.24 (1.49) 2.49
------- ------- -------
Total from investment operations.... 2.32 (1.43) 2.49
------- ------- -------
Less distributions:
Dividends from net investment income. -- (0.03) --
------- ------- -------
Net asset value, end of period......... $ 13.35 $ 11.03 $ 12.49
======= ======= =======
Total return........................... 21.03%(a) (11.48)% 24.90%(a)
======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s
omitted).............................. $69,615 $55,019 $23,533
======= ======= =======
Ratio of expenses to average net
assets................................ 1.06%(b) 1.27%(c) 1.98%(d)(e)
======= ======= =======
Ratio of net investment income to
average net assets.................... 1.46%(b) 0.60%(c) (0.15)%(d)(e)
======= ======= =======
Portfolio turnover rate................ 36% 64% 26%
======= ======= =======
------
(a) Total return is not annualized.
(b) Ratios are annualized and based on average net assets of $61,214,637.
(c) Ratios of expenses and net investment income to average net assets prior to
waiver of advisory fees are 1.28% and 0.59%, respectively.
(d) Annualized.
(e) Annualized ratios of expenses and net investment income (loss) to average
net assets prior to waiver of advisory fees are 3.06% and (1.23)%,
respectively.
</TABLE>
81
AIM V.I. INTERNATIONAL EQUITY FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <C> <S> <C>
AIM V.I. MONEY PRINCIPAL MARKET
MARKET FUND AMOUNT VALUE
SCHEDULE OF --------- ------
INVESTMENTS COMMERCIAL PAPER - 54.00%(a)
July 31, 1995 ASSET-BACKED SECURITIES - 8.71%
(Unaudited) $2,000,000 Asset Securitization Cooperative Corp., 5.72%,
10/05/95........................................... $ 1,979,344
2,000,000 Falcon Asset Securitization Corp., 5.94%, 08/15/95.. 1,995,380
------------
3,974,724
------------
AUTOMOBILE (MANUFACTURERS) - 3.88%
1,800,000 Daimler-Benz North America Corp., 5.90%, 11/07/95... 1,771,090
------------
BEVERAGES (SOFT DRINKS) - 4.29%
2,000,000 PepsiCo Inc., 5.70%, 02/21/95....................... 1,955,033
------------
FINANCE (BUSINESS CREDIT) - 4.35%
2,000,000 General Electric Capital Corp., 5.88%, 09/22/95..... 1,983,014
------------
FINANCE (BUSINESS SERVICES) - 4.14%
2,000,000 National Rural Utilities Cooperative Finance Corp.,
5.92%, 09/12/95..................................... 1,886,877
------------
FINANCE (CONSUMER CREDIT) - 3.29%
1,500,000 American Express Credit Corp., 6.10%, 08/03/95...... 1,499,492
------------
FINANCE (LEASING SERVICES) - 4.35%
2,000,000 Hertz Corp., 5.77%, 09/19/95........................ 1,984,293
------------
FINANCE (MISCELLANEOUS) - 17.29%
2,000,000 BTR Dunlop Finance Inc., 5.90%, 08/18/95............ 1,994,428
2,000,000 Cargill Financial Services Corp., 5.47%, 01/08/96... 1,951,378
2,000,000 Transamerica Finance Corp., 5.52%, 01/31/96......... 1,943,880
2,000,000 USL Capital Corp., 5.95%, 08/11/95.................. 1,996,695
------------
7,886,381
------------
MEDICAL (DRUGS) - 3.70%
1,700,000 Lilly (Eli) & Co., 5.92%, 09/12/95.................. 1,688,259
------------
Total Commercial Paper.......................... 24,629,163
------------
U.S. GOVERNMENT AGENCY SECURITIES - 5.48%
Federal National Mortgage Association - 4.38%
2,000,000 5.71%, 06/02/99(b).................................. 2,000,000
Student Loan Marketing Association - 1.10%
500,000 5.83%, 08/20/98(b).................................. 449,892
------------
Total U.S. Government Agency Securities......... 2,499,892
------------
MASTER NOTE AGREEMENT- 3.27%
Morgan (J. P.) Securities, Inc.,
1,490,000 5.9875%, 10/16/95(c)................................ 1,490,000
------------
Total Investments, excluding Repurchase
Agreements..................................... 28,619,055
------------
REPURCHASE AGREEMENTS - 37.11%(d)
Daiwa Securities America Inc.
5,925,128 5.83%, 08/01/95(e).................................. 5,925,128
SBC Government Securities
11,000,000 5.85%, 08/01/95(f).................................. 11,000,000
------------
Total Repurchase Agreements..................... 16,925,128
------------
TOTAL INVESTMENTS - 99.86%.......................... 45,544,183
OTHER ASSETS LESS LIABILITIES - 0.14%............... 63,117
------------
NET ASSETS - 100.00%................................ $ 45,607,300
============
</TABLE>
82
AIM V.I. MONEY MARKET FUND
<PAGE>
<TABLE>
<C> <S>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Some commercial paper is traded on a discount basis. In such cases, the
interest rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
(b) Interest rates are redetermined weekly. Rates shown are in effect for the
period ending July 31, 1995.
(c) The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon seven calendar days' notice. Interest rates are
redetermined periodically. Rate shown is the rate in effect on July 31,
1995.
(d) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102 percent of the sales price of
the repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds managed by
the investment advisor.
(e) Joint repurchase agreement entered into 07/31/95 with a maturing value of
$639,645,731. Collateralized by $620,652,000 U.S. Treasury obligations, 0%
to 11.25% due 12/14/95 to 05/15/21.
(f) Joint repurchase agreement entered into 07/31/95 with a maturing value of
$185,030,063. Collateralized by $185,495,000 U.S. Treasury obligations, 0%
to 8.25% due 10/02/95 to 02/11/02.
See Notes to Financial Statements.
</TABLE>
83
AIM V.I. MONEY MARKET FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. MONEY ASSETS:
MARKET FUND
STATEMENT OF Investments, excluding repurchase agreements, at value (amortized
ASSETS AND cost)............................................................ $ 28,619,055
LIABILITIES Repurchase agreements............................................. 16,925,128
July 31,1995 Receivables for:
(Unaudited) Capital stock sold.............................................. 24,527
Interest receivable............................................. 35,073
Organizational costs, net......................................... 7,954
Investment for deferred compensation plan......................... 4,896
Reimbursement from advisor........................................ 15,000
Other assets...................................................... 642
------------
Total assets.................................................. 45,632,275
------------
LIABILITIES:
Payable for deferred compensation plan............................ 4,896
Accrued advisory fees............................................. 15,091
Accrued operating expenses........................................ 4,988
------------
Total liabilities............................................. 24,975
------------
Net assets applicable to shares outstanding....................... $ 45,607,300
============
Capital shares, $.001 par value per share:
Authorized...................................................... 250,000,000
============
Outstanding..................................................... 45,624,816
============
Net asset value, offering and redemption price per share.......... $1.00
=====
See Notes to Financial Statements.
</TABLE>
84
AIM V.I. MONEY MARKET FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. MONEY INVESTMENT INCOME:
MARKET FUND
STATEMENT OF Interest.......................................................... $1,081,172
OPERATIONS ----------
For the six months ended EXPENSES:
July 31, 1995
(Unaudited) Advisory fees..................................................... 71,218
Custodian fees.................................................... 3,532
Administrative services fees...................................... 9,059
Directors' fees and expenses...................................... 1,931
Organizational costs.............................................. 1,446
Other............................................................. 941
----------
Total expenses................................................... 88,127
Less expenses assumed by advisor.................................... (15,000)
----------
Net expenses..................................................... 73,127
----------
Net investment income............................................... 1,008,045
----------
Net realized gain (loss) on sales of investment securities.......... (18,420)
----------
Net increase in net assets resulting from operations................ $ 989,625
==========
See Notes to Financial Statements.
</TABLE>
85
AIM V.I. MONEY MARKET FUND
<PAGE>
<TABLE>
<C> <S> <C> <C>
AIM V.I. MONEY JULY 31, JANUARY 31,
MARKET FUND 1995 1995
STATEMENT ----------- -----------
OF CHANGES OPERATIONS:
IN NET ASSETS
For the six Net investment income.............................. $ 1,008,045 $ 1,082,131
months ended Net realized gain (loss) on sales of investment
July 31, 1995 securities........................................ (18,420) 904
and the year ended ----------- -----------
January 31, 1995 Net increase in net assets resulting from
(Unaudited) operations....................................... 989,625 1,083,035
Net increase from capital stock transactions....... 14,608,868 17,124,934
Distributions to shareholders from net investment
income............................................ (1,008,045) (1,082,131)
----------- -----------
Net increase in net assets........................ 14,590,448 17,125,838
NET ASSETS:
Beginning of period................................ 31,016,852 13,891,014
----------- -----------
End of period...................................... $45,607,300 $31,016,852
=========== ===========
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in)......... $45,624,816 $31,015,948
Undistributed net realized gain (loss) on sales of
investment securities............................. (17,516) 904
----------- -----------
$45,607,300 $31,016,852
=========== ===========
See Notes to Financial Statements.
</TABLE>
86
AIM V.I. MONEY MARKET FUND
<PAGE>
<TABLE>
<C> <S>
AIM V.I. MONEY NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
MARKET FUND
NOTES TO AIM Variable Insurance Funds, Inc. (the "Company"), is a Maryland corporation
FINANCIAL organized on January 22, 1993, and is registered under the Investment Company
STATEMENTS Act of 1940 (the "1940 Act"), as amended, as an open-end, series, management
July 31, 1995 investment company consisting of nine portfolios. Matters affecting each
(Unaudited) portfolio are voted on exclusively by the shareholders of such portfolio. The
assets, liabilities and operations of each portfolio are accounted for
separately. Information presented in these financial statements pertains only
to the AIM V.I. Money Market Fund (the "Fund"). Currently, shares of the Fund
are sold only to insurance company separate accounts to fund the benefits of
variable annuity contracts.
The following is a summary of the significant accounting policies followed by
the Fund in the presentation of its financial statements.
A. Security Valuations - The Fund invests only in securities which have
maturities of 397 days or less from the date of purchase. The securities are
valued on the basis of amortized cost which approximates market value. This
method values a security at its cost on the date of purchase and thereafter,
assumes a constant amortization to maturity of any discount or premiums.
B. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Interest income,
adjusted for amortization of premiums and discounts on investments, is
recorded as earned from settlement date and is recorded on the accrual
basis. Distributions to shareholders are declared and paid daily. Realized
gains or losses from securities transactions are recorded on the identified
cost basis.
C. Federal Income Taxes - It is the Fund's policy to continue to comply with
the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income and capital
gains to its shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
D. Organizational Costs - Organizational costs of $14,461 are being amortized
over five years.
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an annual rate of 0.40% of
the first $250 million of the Fund's average daily net assets, plus 0.35% of
the Fund's average daily net assets in excess of $250 million. This agreement
requires AIM to reduce its fees or, if necessary, make payments to the Fund to
the extent required to satisfy any expense limitations imposed by the
securities laws or regulations thereunder of any state in which the Fund's
shares are qualified for sale. During the six months ended July 31, 1995, AIM
reimbursed expenses of $15,000 with respect to the Fund.
Pursuant to a master administrative services agreement between the Company and
AIM, with respect to the Fund, the Company has agreed to reimburse certain
administrative costs incurred in providing accounting services to the Fund.
During the six months ended July 31, 1995, AIM was reimbursed $9,059 for such
services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Fund.
Certain officers and directors of the Company are officers of AIM and AIM
Distributors.
During the six months ended July 31, 1995, the Fund incurred legal fees of
$860 for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
as counsel to the Board of Directors. A member of that firm is a director of
the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company may invest directors' fees, if
so elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
</TABLE>
87
AIM V.I. MONEY MARKET FUND
<PAGE>
<TABLE>
<C> <S>
NOTE 4 - CAPITAL STOCK
Changes in capital stock outstanding during the six months ended July 31, 1995
and the year ended January 31, 1995 were as follows:
</TABLE>
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
------------------------- -------------------------
Shares Amount Shares Amount
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold..................... 32,338,345 $ 32,338,345 53,878,101 $ 53,878,101
Issued as reinvestment of
distributions........... 1,008,045 1,008,045 1,082,131 1,082,131
Reacquired............... (18,737,522) (18,737,522) (37,835,298) (37,835,298)
----------- ------------ ----------- ------------
14,608,868 $ 14,608,868 17,124,934 $ 17,124,934
=========== ============ =========== ============
</TABLE>
<TABLE>
<C> <S>
NOTE 5 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share outstanding of
the Fund during the six months ended July 31, 1995, the year ended January 31,
1995 and the period May 5, 1993 (date operations commenced) through January 31,
1994.
</TABLE>
<TABLE>
<CAPTION>
JULY 31, JANUARY 31,
-------- -------------------
1995 1995 1994
-------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Income from investment operations:
Net investment income................. 0.03 0.04 0.02
------- ------- -------
Less distributions:
Dividends from net investment income.. (0.03) (0.04) (0.02)
------- ------- -------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total return............................ 2.85% 3.98% 2.27%
======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s
omitted)............................... $45,607 $31,017 $13,891
======= ======= =======
Ratio of expenses to average net assets. 0.41%(a) 0.63%(b) 0.95%(c)(d)
======= ======= =======
Ratio of net investment income to
average net assets..................... 5.66%(a) 4.14%(b) 2.29%(c)(d)
======= ======= =======
------
(a) Ratios are annualized and based on average net assets of $35,904,176.
Annualized ratios of expenses and net investment income to average net
assets prior to expense reimbursements are 0.50% and 5.58%, respectively.
(b) Ratios of expenses and net investment income to average net assets prior to
waiver of advisory fees are 0.70% and 4.07%, respectively.
(c) Annualized.
(d) Annualized ratios of expenses and net investment income to average net
assets prior to waiver of advisory fees are 1.53% and 1.70%, respectively.
</TABLE>
88
AIM V.I. MONEY MARKET FUND
<PAGE>
<TABLE>
<C> <S>
AIM V.I. VALUE MARKET
FUND SHARES VALUE
SCHEDULE OF ------ ------
INVESTMENTS COMMON STOCKS - 81.42%
July 31, 1995 ADVERTISING/BROADCASTING - 1.14%
(Unaudited) 10,000 Heritage Media Corp.(a).............................. $ 287,500
9,000 Renaissance Communications Corp.(a).................. 344,250
1,900 Sinclair Broadcast Group, Inc.(a).................... 57,950
34,700 Time Warner, Inc..................................... 1,487,762
------------
2,177,462
------------
AEROSPACE/DEFENSE - 1.65%
33,000 Boeing Co............................................ 2,211,000
11,000 United Technologies Corp............................. 924,000
------------
3,135,000
------------
AIRLINES - 0.68%
3,500 Northwest Airlines Corp.(a).......................... 134,313
7,800 UAL Corp.(a)......................................... 1,165,125
------------
1,299,438
------------
APPLIANCES - 0.31%
11,000 Premark International Inc............................ 581,625
------------
AUTOMOBILE/TRUCKS PARTS & TIRES - 0.55%
32,000 Borg-Warner Automotive............................... 1,040,000
------------
BANKING - 1.99%
13,000 Bank America Corp.................................... 702,000
4,800 Chase Manhattan Corp................................. 257,400
35,000 Citicorp............................................. 2,183,125
17,600 CoreStates Financial Corp............................ 642,400
------------
3,784,925
------------
BUILDING MATERIALS - 0.31%
11,000 National Gypsum Co.(a)............................... 583,000
------------
BUSINESS SERVICES - 1.33%
5,800 Healthcare COMPARE Corp.(a).......................... 197,200
15,400 Interim Services(a).................................. 377,300
36,000 Manpower, Inc........................................ 1,012,500
11,600 Olsten Corp. (The)................................... 406,000
15,467 Value Health, Inc.(a)................................ 545,229
------------
2,538,229
------------
CHEMICALS - 1.53%
27,000 Dow Chemical Co...................................... 2,001,375
5,000 Sterling Chemicals, Inc.(a).......................... 53,750
65,000 Terra Industries, Inc................................ 861,250
------------
2,916,375
------------
CHEMICALS (SPECIALTY) - 1.59%
14,000 Cabot Corp........................................... 789,250
15,400 IMC Global, Inc...................................... 927,850
16,000 OM Group Inc......................................... 496,000
29,100 Praxair, Inc......................................... 814,800
------------
3,027,900
------------
COMPUTER MAINFRAMES - 1.55%
34,000 Cray Research, Inc.(a)............................... 879,750
19,000 International Business Machines Corp................. 2,068,625
------------
2,948,375
------------
</TABLE>
89
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
COMPUTER MINI/PCS - 3.50%
53,000 COMPAQ Computer Corp.(a)............................. $ 2,689,750
26,000 Dell Computer Corp.(a)............................... 1,690,000
9,500 Hewlett-Packard Co................................... 739,813
17,000 Sun Microsystems, Inc.(a)............................ 818,125
38,000 Wang Laboratories, Inc.(a)........................... 712,500
------------
6,650,188
------------
COMPUTER NETWORKING - 2.04%
9,900 Bay Networks, Inc.(a)................................ 444,263
24,000 Belden Inc........................................... 705,000
26,000 Cheyenne Software, Inc.(a)........................... 484,250
15,000 Cisco Systems, Inc.(a)............................... 836,250
17,200 Comverse Technology, Inc.(a)......................... 316,050
15,000 Madge N.V.(a)........................................ 361,875
10,000 3Com Corp.(a)........................................ 740,625
------------
3,888,313
------------
COMPUTER PERIPHERALS - 4.98%
47,800 Adaptec, Inc.(a)..................................... 2,043,450
140,000 EMC Corp.(a)......................................... 3,202,500
17,600 Read-Rite Corp. - Class A(a)......................... 726,000
49,300 Seagate Technology(a)................................ 2,187,687
9,000 U.S. Robotics, Inc.(a)............................... 1,309,500
------------
9,469,137
------------
COMPUTER SOFTWARE & SERVICES - 4.08%
8,400 Adobe Systems Inc.................................... 518,700
7,000 BMC Software, Inc.(a)................................ 542,500
13,000 Ceridian Corp.(a).................................... 537,875
26,000 Computer Associates International, Inc............... 1,907,750
20,000 Corel Corp.(a)....................................... 367,500
19,600 Electronics for Imaging, Inc.(a)..................... 1,254,400
20,000 National Data Corp................................... 510,000
25,000 Network General Corp.(a)............................. 850,000
12,000 Sterling Software, Inc.(a)........................... 492,000
19,300 S3, Inc.(a).......................................... 776,825
------------
7,757,550
------------
CONGLOMERATES - 0.53%
10,000 Allied Products Corp. ............................... 215,000
6,600 Loews Corp........................................... 794,475
------------
1,009,475
------------
CONTAINERS - 0.57%
2,000 First Brands Corp.................................... 80,000
4,800 Sealed Air Corp.(a).................................. 243,600
35,000 Stone Container Corp.(a)............................. 756,875
------------
1,080,475
------------
COSMETICS & TOILETRIES - 0.57%
12,200 McKesson Corp........................................ 538,325
8,000 Procter & Gamble Co.................................. 551,000
------------
1,089,325
------------
ELECTRIC POWER - 0.11%
11,400 California Energy Co., Inc.(a)....................... 218,025
------------
</TABLE>
90
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
ELECTRONIC COMPONENTS - 5.99%
26,000 Harman International Industries, Inc................. $ 1,023,750
39,600 Itel Corp.(a)........................................ 1,683,000
16,000 Oak Industries, Inc.(a).............................. 436,000
120,000 Philips Electronics, N.V.-New York shares-ADR........ 5,910,000
13,000 Tektronix, Inc....................................... 625,625
21,000 Teradyne Inc.(a)..................................... 1,719,375
------------
11,397,750
------------
ELECTRONIC/PC DISTRIBUTORS - 1.33%
30,000 Arrow Electronics, Inc.(a)........................... 1,695,000
13,000 Avnet, Inc........................................... 676,000
4,000 Wyle Electronics..................................... 161,000
------------
2,532,000
------------
FINANCE (ASSET MANAGEMENT) - 0.86%
4,000 Alex. Brown, Inc..................................... 193,500
15,000 Merrill Lynch & Co., Inc............................. 832,500
7,200 Morgan Stanley Group, Inc............................ 602,100
200 XTRA Corp............................................ 9,174
------------
1,637,274
------------
FINANCE (CONSUMER CREDIT) - 3.39%
7,300 ADVANTA Corp. - Class B.............................. 285,612
12,000 CMAC Investment Corp................................. 589,500
12,000 Countrywide Credit Industries, Inc................... 267,000
11,000 Federal Home Loan Mortgage Corp...................... 720,500
11,000 Federal National Mortgage Association................ 1,029,875
8,000 First USA, Inc....................................... 365,000
10,000 Green Tree Acceptance, Inc. ......................... 541,250
50,000 MBNA Corp............................................ 1,793,750
16,000 PMI Group, Inc. (The)................................ 744,000
2,100 Sunamerica, Inc...................................... 120,225
------------
6,456,712
------------
FINANCE (SAVINGS & LOAN) - 0.41%
18,000 Ahmanson (H.F.) & Co................................. 402,750
14,700 Charter One Financial, Inc........................... 380,362
------------
783,112
------------
FOOD PROCESSING - 0.79%
36,000 Hudson Foods, Inc. - Class A......................... 495,000
16,000 IBP, Inc............................................. 748,000
13,500 Interstate Bakeries Corp............................. 256,500
------------
1,499,500
------------
FUNERAL SERVICES - 0.60%
21,900 Service Corp. International.......................... 747,337
12,000 Stewart Enterprises, Inc............................. 391,500
------------
1,138,837
------------
GAMING - 0.14%
8,500 Mirage Resorts, Inc.(a).............................. 264,562
------------
HOTELS/MOTELS - 0.33%
17,300 Marriott International, Inc.......................... 627,125
------------
</TABLE>
91
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
INSURANCE (MULTI-LINE PROPERTY) - 0.49%
6,450 American International Group, Inc.................... $ 483,750
18,000 TIG Holdings, Inc.................................... 445,500
------------
929,250
------------
MACHINE TOOLS - 0.06%
4,000 Applied Power Inc. - Class A......................... 117,000
------------
MACHINERY (HEAVY) - 0.31%
17,000 Case Corp............................................ 599,250
------------
MEDICAL (DRUGS) - 5.11%
40,000 Bergen Brunswig Corp................................. 865,000
10,000 Elan Corp. PLC-ADR(a)................................ 420,000
50,604 ICN Pharmaceuticals, Inc............................. 993,104
9,000 Johnson & Johnson.................................... 645,750
22,000 Mylan Laboratories, Inc.............................. 662,750
26,000 Pfizer Inc........................................... 1,313,000
17,800 R. P. Scherer Corp.(a)............................... 720,900
74,000 Schering-Plough Corp................................. 3,441,000
14,500 Smithkline Beecham PLC-ADR........................... 652,500
------------
9,714,004
------------
MEDICAL INSTRUMENTS/PRODUCTS - 0.64%
4,800 Becton, Dickinson & Co............................... 282,600
13,000 Cordis Corp.(a)...................................... 939,250
------------
1,221,850
------------
MEDICAL (PATIENT SERVICES) - 3.63%
18,080 Columbia/HCA Healthcare Corp......................... 885,920
12,000 Genesis Health Ventures, Inc.(a)..................... 360,000
20,000 Health Care and Retirement Corp.(a).................. 640,000
18,400 Horizon/CMS Healthcare Corp.(a)...................... 416,300
25,000 Integrated Health Services, Inc...................... 806,250
15,500 Living Centers of America, Inc.(a)................... 499,875
28,000 Manor Care, Inc...................................... 906,500
34,000 OrNda Healthcorp(a).................................. 675,750
10,000 Orthofix International N.V.(a)....................... 173,750
24,000 Quorum Health Group, Inc.(a)......................... 516,000
15,000 Sybron International Corp.(a)........................ 620,625
9,000 United Healthcare Corp............................... 407,250
------------
6,908,220
------------
METALS - 0.60%
1,900 Alumax, Inc.(a)...................................... 65,313
4,000 Harsco Corp.......................................... 222,500
20,900 Mascotech, Inc....................................... 271,700
9,000 Phelps Dodge Corp.................................... 578,250
------------
1,137,763
------------
OFFICE AUTOMATION - 1.04%
15,100 In Focus Systems, Inc.(a)............................ 420,913
13,000 Xerox Corp........................................... 1,548,625
------------
1,969,538
------------
OFFICE PRODUCTS - 0.17%
10,000 Reynolds & Reynolds Co. - Class A.................... 316,250
------------
</TABLE>
92
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
OIL & GAS SERVICES - 1.57%
13,000 British Petroleum Co. PLC-ADR........................ $ 1,179,750
12,000 Mobil Corp........................................... 1,173,000
5,000 Royal Dutch Petroleum Co.-ADR........................ 635,000
------------
2,987,750
------------
PAPER & FOREST PRODUCTS - 2.30%
17,000 Bowater, Inc......................................... 816,000
15,000 Champion International Corp.......................... 845,625
15,000 Federal Paper Board Co. ............................. 560,625
26,000 James River Corp. of Virginia........................ 867,750
22,000 Mead Corp. .......................................... 1,295,250
------------
4,385,250
------------
POLLUTION CONTROL - 1.46%
23,000 Browning-Ferris Industries, Inc. .................... 888,375
52,000 WMX Technologies, Inc. .............................. 1,625,000
26,000 Waste Management International PLC-ADR(a)............ 266,500
------------
2,779,875
------------
PUBLISHING - 0.79%
3,000 Central Newspapers, Inc. - Class A................... 84,000
6,000 News Corp. Ltd.-ADR.................................. 141,750
32,000 News Corp. Ltd.-Preference Shares-ADR................ 672,000
18,000 Scripps (E.W.) Co.................................... 609,750
------------
1,507,500
------------
RETAIL (FOOD & DRUG) - 0.34%
33,500 Circle K Corp.(a).................................... 649,063
------------
RETAIL STORES - 0.08%
9,500 Waban, Inc.(a)....................................... 157,937
------------
SCIENTIFIC INSTRUMENTS - 0.38%
13,000 Varian Associates, Inc. ............................. 716,625
------------
SEMICONDUCTORS - 12.57%
36,000 Analog Devices, Inc.(a).............................. 1,305,000
14,000 Applied Materials, Inc.(a)........................... 1,449,000
19,200 Cypress Semiconductor Corp.(a)....................... 1,012,800
7,000 Electroglas, Inc.(a)................................. 507,500
15,000 Exar Corp.(a)........................................ 543,750
26,000 Intel Corp. ......................................... 1,690,000
11,000 Kemet Corp.(a)....................................... 712,250
18,000 LAM Research Corp.(a)................................ 1,228,500
18,000 LSI Logic Corp.(a)................................... 841,500
50,000 Micron Technology, Inc............................... 3,125,000
50,000 National Semiconductor Corp.(a)...................... 1,350,000
16,500 OPTI, Inc.(a)........................................ 393,938
19,000 SGS-Thomson Microelectronics N.V.(a)................. 897,750
52,000 Texas Instruments Inc................................ 8,125,000
25,000 VLSI Technology, Inc.(a)............................. 740,625
------------
23,922,613
------------
SHOES & RELATED APPAREL - 0.43%
9,000 Nike, Inc. - Class B................................. 813,375
------------
</TABLE>
93
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
STEEL - 0.70%
8,000 AK Steel Holding Corp.(a)....................... $ 243,000
25,000 Allegheny Ludlum Corp. ......................... 531,250
18,800 J&L Specialty Steel, Inc. ...................... 415,950
16,300 UNR Industries, Inc. ........................... 134,475
------------
1,324,675
------------
TELECOMMUNICATIONS - 3.09%
8,300 CellStar Corp.(a)............................... 262,488
32,000 DSC Communications Corp.(a)..................... 1,720,000
20,000 MFS Communications Co., Inc.(a)................. 750,000
35,000 Nokia Corp. - Class A-ADR(a).................... 2,301,250
45,000 Telefonaktiebolaget L.M. Ericsson(a)............ 838,125
------------
5,871,863
------------
TELEPHONE - 0.36%
24,000 Century Telephone Enterprises................... 684,000
------------
TOBACCO - 2.45%
65,000 Philip Morris Companies, Inc. .................. 4,655,625
------------
Total Common Stocks............................. 154,900,965
------------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
U.S. TREASURY BILLS - 11.37%(b)
$ 6,000,000(c) 5.64%, 10/19/95................................. 5,930,040
16,100,000(c) 5.41%, 01/11/96................................. 15,707,482
------------
Total U.S. Treasury Bills................... 21,637,522
------------
REPURCHASE AGREEMENT - 5.75%(d)
10,934,481 Daiwa Securities America Inc., 5.83%,
08/01/95(e).................................... 10,934,481
------------
TOTAL INVESTMENTS - 98.54%...................... 187,472,968
OTHER ASSETS LESS LIABILITIES - 1.46%........... 2,778,291
------------
NET ASSETS - 100.00%............................ $190,251,259
============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) U.S. Treasury Bills are traded on a discount basis. In such cases the
interest rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
(c) A portion of the principal balance was pledged as collateral to cover
margin requirements for open futures contracts. See Note 6 to Financial
Statements.
(d) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds managed by
the investment advisor.
(e) Joint repurchase agreement entered into 07/31/95 with a maturing value of
$639,645,731. Collateralized by $620,652,000 U.S. Treasury obligations, 0%
to 11.25% due 12/14/95 to 05/15/21.
See Notes to Financial Statements.
</TABLE>
94
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. VALUE ASSETS:
FUND
STATEMENT OF Investments, at value (cost $151,733,082)......................... $187,472,968
ASSETS AND Receivables for:
LIABILITIES Investments sold................................................ 6,659,936
July 31, 1995 Capital stock sold.............................................. 635,660
(Unaudited) Dividends and interest.......................................... 39,937
Investment for deferred compensation plan......................... 5,125
Organizational costs, net......................................... 7,938
Other assets...................................................... 1,567
------------
Total assets.................................................. 194,823,131
------------
LIABILITIES:
Payables for:
Deferred compensation........................................... 5,125
Investments purchased........................................... 4,400,208
Variation margin................................................ 43,125
Accrued advisory fees............................................. 99,525
Accrued directors' fees........................................... 118
Accrued administrative services fees.............................. 398
Accrued operating expenses........................................ 23,373
------------
Total liabilities............................................. 4,571,872
------------
Net assets applicable to shares outstanding....................... $190,251,259
============
Capital shares, $.001 par value per share:
Authorized...................................................... 250,000,000
============
Outstanding..................................................... 12,133,350
============
Net asset value, offering and redemption price per share.......... $ 15.68
============
See Notes to Financial Statements.
</TABLE>
95
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<C> <S> <C>
AIM V.I. VALUE INVESTMENT INCOME:
FUND
STATEMENT OF Interest........................................................ $ 610,822
OPERATIONS Dividends....................................................... 679,739
For the six months ended -----------
July 31, 1995 Total investment income........................................ 1,290,561
(Unaudited) -----------
EXPENSES:
Advisory fees................................................... 465,037
Custodian fees.................................................. 25,826
Administrative services fees.................................... 12,261
Directors' fees and expenses.................................... 2,521
Professional fees............................................... 24,268
Organizational costs............................................ 1,192
Other........................................................... 4,119
-----------
Total expenses................................................. 535,224
-----------
Net investment income............................................. 755,337
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES AND FUTURES
CONTRACTS:
Net realized gain from:
Investment securities........................................... 7,103,019
Futures contracts............................................... 1,255,269
-----------
8,358,288
-----------
Unrealized appreciation of:
Investment securities........................................... 32,030,645
Futures contracts............................................... 23,729
-----------
32,054,374
-----------
Net gain on investment securities and futures contracts........... 40,412,662
-----------
Net increase in net assets resulting from operations.............. $41,167,999
===========
See Notes to Financial Statements.
</TABLE>
96
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C> <C>
AIM V.I. VALUE JULY 31, JANUARY 31,
FUND 1995 1995
STATEMENT ------------ ------------
OF CHANGES OPERATIONS:
IN NET ASSETS
For the six months ended July Net investment income............................. $ 755,337 $ 882,404
31, 1995 and the year ended Net realized gain (loss) on sales of investment
January 31, 1995 securities and futures contracts................. 8,358,288 (2,153,433)
(Unaudited) Net unrealized appreciation of investment
securities and futures contracts................. 32,054,374 895,492
------------ ------------
Net increase (decrease) in net assets resulting
from operations................................. 41,167,999 (375,537)
Net increase from capital stock transactions...... 39,825,793 72,151,126
Distributions to shareholders from net investment
income........................................... -- (772,749)
------------ ------------
Net increase in net assets....................... 80,993,792 71,002,840
NET ASSETS:
Beginning of period............................... 109,257,467 38,254,627
------------ ------------
End of period..................................... $190,251,259 $109,257,467
============ ============
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in)........ $146,994,886 $107,169,093
Undistributed net investment income............... 863,160 107,823
Undistributed net realized gain (loss) from
investment securities and futures contracts ..... 5,987,359 (2,370,929)
Unrealized appreciation of investment securities
and futures contracts............................ 36,405,854 4,351,480
------------ ------------
$190,251,259 $109,257,467
============ ============
See Notes to Financial Statements.
</TABLE>
97
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<C> <S>
AIM V.I. VALUE NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
FUND AIM Variable Insurance Funds, Inc. (the "Company"), is a Maryland corporation
NOTES TO organized on January 22, 1993, and is registered under the Investment Company
FINANCIAL Act of 1940 (the "1940 Act"), as amended, as an open-end, series, management
STATEMENTS investment company consisting of nine portfolios: AIM V.I. Value Fund (the
July 31, 1995 "Fund") AIM V.I. Capital Appreciation Fund, AIM V.I. Diversified Income Fund,
(Unaudited) AIM V.I. Global Utilities Fund, AIM V.I. Government Securities Fund, AIM V.I.
Growth Fund, AIM V.I. Growth and Income Fund, AIM V.I. International Equity
Fund, and AIM V.I. Money Market Fund. Matters affecting each portfolio are
voted on exclusively by the shareholders of such portfolio. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
Currently, shares of the Fund are sold only to insurance company separate
accounts to fund the benefits of variable annuity contracts.
The following is a summary of the significant accounting policies followed by
the Fund in the presentation of its financial statements.
A. Security Valuations - A security listed or traded on an exchange 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 mean between the closing bid and asked prices on that day. Each security
traded in the over-the-counter market (but not including securities reported
on the NASDAQ National Market System) is valued at the mean between the last
bid and asked prices based upon quotes furnished by market makers for such
securities. Each security reported on the NASDAQ National Market System is
valued at the last sales price on the valuation date. Securities for which
market quotations are not readily available 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.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value.
B. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Interest income is
recorded as earned from settlement date and is recorded on the accrual
basis. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Realized gains or losses from securities transactions are
recorded on the identified cost basis.
C. Federal Income Taxes - For federal income tax purposes, each portfolio in
the Company is taxed as a separate entity. It is the Fund's policy to
continue to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
taxable income and capital gains to its shareholders. Therefore, no
provision for federal income taxes is recorded in the financial statements.
The Fund had capital loss carryforwards (which may be carried forward to
offset future taxable capital gains, if any) of $1,615,057, which expires,
if not previously utilized, in the year 2003.
D. Organizational Costs - Organizational costs for the Fund of $14,461 are
being amortized over five years.
E. Stock Index Futures Contracts - The Fund may purchase or sell stock index
futures contracts as a hedge against changes in market conditions. Initial
margin deposits required upon entering into futures contracts are satisfied
by the segregation of specific securities or cash, and/or by securing a
standby letter of credit from a major commercial bank, as collateral, for
the account of the broker (the Fund's agent in acquiring the futures
position). During the period the futures contract is open, changes in the
value of the contract are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contract at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and the change in the value of the
contract may not correlate with changes in the securities being hedged.
</TABLE>
98
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<C> <S>
NOTE 2 - INVESTMENT 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 master investment advisory
agreement, the Fund pays an advisory fee to AIM at an annual rate of 0.65% of
the first $250 million of the Fund's average daily net assets, plus 0.60% of
the Fund's average daily net assets in excess of $250 million. These agreements
require AIM to reduce its fees or, if necessary, make payments to the Fund to
the extent required to satisfy any expense limitations imposed by the
securities laws or regulations thereunder of any state in which the Fund's
shares are qualified for sale.
Pursuant to a master administrative services agreement between the Company and
AIM, with respect to the Fund, the Company has agreed to reimburse certain
administrative costs incurred in providing accounting services to the Fund.
During the six months ended July 31, 1995, AIM was reimbursed $12,261 for such
services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor of the
Fund's shares.
Certain officers and directors of the Company are officers of AIM and AIM
Distributors.
During the six months ended July 31, 1995, the Fund incurred legal fees of
$963 for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
as counsel to the Board of Directors. A member of that firm is a director of
the Company.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company may invest a director's fees, if
so elected by such director, in mutual fund shares in accordance with a
deferred compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold during the six months ended July 31, 1995 was
$137,245,348 and $105,432,373, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
on a tax basis as of July 31, 1995 is as follows:
</TABLE>
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities......... $36,440,021
Aggregate unrealized (depreciation) of investment securities....... (700,135)
-----------
Net unrealized appreciation of investment securities............... $35,739,886
===========
</TABLE>
<TABLE>
<C> <S>
Investments have the same cost for tax and financial statement purposes.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding during the six months ended July 31, 1995
and the year ended January 31, 1995:
</TABLE>
<TABLE>
<CAPTION>
July 31, 1995 January 31, 1995
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................... 3,064,488 $42,050,438 6,208,374 $73,589,964
Issued as reinvestment of
distributions................. -- -- 67,137 772,749
Reacquired..................... (165,587) (2,224,645) (183,633) (2,211,587)
--------- ----------- --------- -----------
2,898,901 $39,825,793 6,091,878 $72,151,126
========= =========== ========= ===========
</TABLE>
<TABLE>
<C> <S>
NOTE 6 - OPEN FUTURES CONTRACTS
On July 31, 1995, $612,000 principal amount of U. S. Treasury Bills were
pledged as collateral to cover margin requirements for open futures contracts:
Open futures contracts at July 31, 1995 were as follows:
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT NO. OF CONTRACTS/MONTH/COMMITMENT APPRECIATION
<S> <C> <C>
S&P 500 Index.................... 20 Contracts/Sept./Buy $295,675
S&P 500 Index.................... 55 Contracts/Dec./Buy 370,293
--------
$665,968
========
</TABLE>
99
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<C> <S>
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share outstanding of
the Fund during the six months ended July 31, 1995, the year ended January 31,
1995, and the period May 5, 1993 (date operations commenced) through January
31, 1994.
</TABLE>
<TABLE>
<CAPTION>
January 31,
July 31, ------------------
1995 1995 1994
-------- -------- -------
<S> <C> <C> <C>
Net asset value, beginning of period....... $ 11.83 $ 12.17 $ 10.00
-------- -------- -------
Income from investment operations:
Net investment income.................... 0.06 0.10 0.02
Net gains (losses) on securities (both
realized and unrealized)................ 3.79 (0.35) 2.17
-------- -------- -------
Total from investment operations........ 3.85 (0.25) 2.19
-------- -------- -------
Less distributions:
Dividends from net investment income..... -- (0.09) (0.02)
-------- -------- -------
Net asset value, end of period............. $ 15.68 $ 11.83 $ 12.17
======== ======== =======
Total return(a)............................ 32.54% (2.03)% 21.94%
======== ======== =======
Ratios/supplemental data:
Net assets, end of period (000s omitted)... $190,251 $109,257 $38,255
======== ======== =======
Ratio of expenses to average net assets.... 0.75%(b) 0.82% 1.00%(c)
======== ======== =======
Ratio of net investment income to average
net assets................................ 1.06%(b) 1.17% 0.51%(c)
======== ======== =======
Portfolio turnover rate.................... 85% 143% 87%
======== ======== =======
</TABLE>
<TABLE>
<C> <S>
------
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized and based on average net assets of $144,274,202.
(c) Annualized ratios of expenses and net investment income to average net
assets prior to waiver of advisory fees and/or expense reimbursements were
1.35% and 0.16%, respectively, for 1994.
</TABLE>
100
AIM V.I. VALUE FUND
<PAGE>
<TABLE>
<C> <S> <C> <C>
DIRECTORS, OFFICERS, BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
AND OTHER SERVICE
PROVIDERS OF AIM Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
VARIABLE INSURANCE Chairman and Chief Executive Officer Chairman Suite 1919
FUNDS, INC. A I M Management Group Inc. Houston, TX 77046
Robert H. Graham (800) 347-1919
Bruce L. Crockett President
Director, President and Chief Executive Officer INVESTMENT ADVISOR
Executive Officer John J. Arthur
COMSAT Corporation Senior Vice President and A I M Advisors, Inc.
Treasurer 11 Greenway Plaza
Owen Daly II Suite 1919
Director Gary T. Crum Houston, TX 77046
Cortland Trust Inc. Senior Vice President
TRANSFER AGENT AND CUSTODIAN
Carl Frischling Carol F. Relihan
Partner Vice President and State Street Bank & Trust Co.
Kramer, Levin, Naftalis, Nessen, Kamin Secretary 225 Franklin Street
& Frankel Boston, MA 02110
Dana R. Sutton
Robert H. Graham Vice President and COUNSEL TO THE FUNDS
President Assistant Treasurer
A I M Management Group Inc. Freedman, Levy, Kroll &
Robert G. Alley Simonds
John F. Kroeger Vice President 1050 Conn. Avenue, N.W.
Formerly, Consultant Washington, D.C. 20036
Wendell & Stockel Associates, Inc. Stuart W. Coco
Vice President COUNSEL TO THE DIRECTORS
Lewis F. Pennock
Attorney Melville B. Cox Kramer, Levin, Naftalis, Nessen,
Vice President Kamin & Frankel
Ian W. Robinson 919 Third Avenue
Consultant; Former Executive Vice Karen Dunn Kelley New York, NY 10022
President and Chief Financial Officer Vice President
Bell Atlantic Management Services, Inc. DISTRIBUTOR
Jonathan C. Schoolar
Louis S. Sklar Vice President A I M Distributors, Inc.
Executive Vice President 11 Greenway Plaza
Hines Interests Meggan Walsh Suite 1919
Limited Partnership Vice President Houston, TX 77046
P. Michelle Grace
Assistant Secretary
Nancy L. Martin
Assistant Secretary
Ofelia M. Mayo
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
101
<PAGE>
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund
AIM V.I. Diversified Income Fund
AIM V.I. Global Utilities Fund*
AIM V.I. Government Securities Fund
AIM V.I. Growth Fund
AIM V.I. Growth & Income Fund
AIM V.I. International Equity Fund
AIM V.I. Money Market Fund
AIM V.I. Value Fund
*On May 1, 1995, AIM V.I. Utilities Fund broadened its investment
strategy to permit up to 80% of its total assets to be invested in foreign
securities, and was renamed AIM V.I. Global Utilities Fund.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Variable Annuity.
[AIM LOGO APPEARS HERE] A I M Distributors, Inc. [CIGNA LOGO APPEARS HERE]
13.5M-9/95
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