As filed with the Securities and Exchange Commission on February 29, 2000
File No. 811-8454
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT
UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 9 |x|
---
GLOBAL INVESTMENT PORTFOLIO
(Exact Name of Registrant as Specified in Charter)
11 Greenway Plaza,
Suite 100
Houston, Texas 77046
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: (713) 626-1919
Samuel D. Sirko, Esq.
A I M Advisors, Inc.
11 Greenway Plaza,
Suite 100
Houston, Texas 77046
(Name and Address of Agent for Service)
<PAGE>
EXPLANATORY NOTE
This Amendment to the Registration Statement of Global Investment
Portfolio has been filed by the Registrant pursuant to Section 8(b) of the
Investment Company Act of 1940, as amended (the "1940 Act"). However, beneficial
interests in the Registrant have not been registered under the Securities Act of
1933, as amended (the "1933 Act"), since such interests are offered solely in
private placement transactions that do not involve any "public offering" within
the meaning of Section 4(2) of the 1933 Act. Investments in the Registrant may
only be made by investment companies, insurance company separate accounts,
common or commingled trust funds or similar organizations or entities which are
"accredited investors" as defined in Regulation D under the 1933 Act. This
Amendment to the Registration Statement does not constitute an offer to sell, or
the solicitation of an offer to buy, any beneficial interests in the Registrant.
<PAGE>
GLOBAL INVESTMENT PORTFOLIO
CONTENTS OF REGISTRATION STATEMENT
This registration statement of Global Investment Portfolio contains the
following documents:
Facing Sheet
Contents of Registration Statement
Part A
Part B
Part C
Signature Page
Exhibits
<PAGE>
PART A
Responses to Items 1, 2, 3, 5 and 9 have been omitted pursuant to
paragraph B.2(b) of the General Instructions to Form N-1A.
Responses to certain Items required to be included in Part A of this
Registration Statement of Global Investment Portfolio (the "Master Portfolio")
are incorporated herein by reference from Post-Effective Amendment No. 58 to the
Registration Statement of AIM Investment Funds ("AIM Investment Funds") (1940
Act File No. 811-5426), as filed with the Securities and Exchange Commission
("SEC") on February 2__, 2000 ("Feeder Registration Statement"). Part A of the
Feeder Registration Statement includes the prospectuses of AIM Global Consumer
Products and Services Fund, AIM Global Financial Services Fund, AIM Global
Infrastructure Fund and AIM Global Resources Fund ("Feeder's Part A").
ITEM 4. INVESTMENT OBJECTIVES, PRINCIPAL INVESTMENT STRATEGIES AND RELATED
RISKS.
Information on the Portfolios' investment objectives, principal investment
strategies and the principal risk factors associated with investments in the
Portfolios is incorporated herein by reference from the sections entitled
"Investment Objectives and Strategies" and "Principal Risks of Investing in the
Fund" in the Feeder's Part A. Additional investment techniques, features and
limitations concerning the Portfolios' investment program are described in Part
B of this Registration Statement.
ITEM 6. MANAGEMENT, ORGANIZATION AND CAPITAL STRUCTURE.
Each Portfolio is managed and administered by A I M Advisors, Inc.
("AIM"). AIM and its worldwide asset management affiliates provide investment
management and/or administrative services to institutional, corporate and
individual clients around the world. AIM is an indirect wholly owned
subsidiaries of AMVESCAP PLC. AMVESCAP PLC and its subsidiaries are an
independent investment management group that has a significant presence in the
institutional and retail segment of the investment management industry in North
America and Europe, and a growing presence in Asia.
A more complete description of how the business of the Portfolios is
managed is incorporated herein by reference from the section entitled "Fund
Management" in the Feeder's Part A.
Beneficial interests in the Master Portfolio are divided currently into
four separate subtrusts or "series" - Global Financial Services Portfolio
("Financial Services Portfolio"), Global Infrastructure Portfolio
("Infrastructure Portfolio"), Global Resources Portfolio ("Resources Portfolio")
and Global Consumer Products and Services Portfolio ("Consumer Products
Portfolio") (each, a "Portfolio," and collectively, the "Portfolios") - each
having a distinct investment objective and distinct investment policies and
limitations. The Financial Services Portfolio, Infrastructure Portfolio and
Resources Portfolio commenced operations on May 31, 1994. The Consumer Products
A-1
<PAGE>
Portfolio commenced operations on December 30, 1994. Additional subtrusts to the
Master Portfolio may be organized at a later date. The assets of each Portfolio
belong only to that Portfolio, and the liabilities of each Portfolio are borne
solely by that Portfolio and no other.
Beneficial interests in the Portfolios are offered solely in private
placement transactions which do not involve any "public offering" within the
meaning of Section 4(2) of the 1933 Act. Investments in the Portfolios may only
be made by investment companies, insurance company separate accounts, common or
commingled trust funds or similar organizations or entities which are
"accredited investors" as defined in Regulation D under the 1933 Act. The
Registration Statement does not constitute an offer to sell, or the solicitation
of an offer to buy, any "security" within the meaning of the 1933 Act.
Investor inquiries may be directed to the Advisor at the following
address: 11 Greenway Plaza, Suite 100, Houston, Texas 77046.
ITEM 7. SHAREHOLDER INFORMATION.
An investment in a Portfolio may be made without a sales load at the net
asset value next determined after an order is received in "good order" by a
Portfolio. There is no minimum initial or subsequent investment in a Portfolio.
However, investments must be made in federal funds (i.e., monies credited to the
account of a Portfolio's custodian bank by a Federal Reserve Bank). Each
investor in a Portfolio may add to or reduce its investment in the Portfolio on
each day the New York Stock Exchange ("NYSE") is open for trading.
Information on the time and method of valuation of the Portfolios' assets
is incorporated by reference from the section entitled "Shareholder Information
- - Pricing of Shares" in the Feeder's Part A.
Each Portfolio reserves the right to cease accepting investments at any
time or to reject any investment order.
An investor in a Portfolio may reduce any portion or all of its investment
at any time at the net asset value next determined after a request in "good
order" is furnished by the investor to that Portfolio. The proceeds of a
reduction will be paid by a Portfolio in federal funds normally on the next
business day after the reduction is effected, but in any event within seven
days. Investments in a Portfolio may not be transferred.
The right of any investor to receive payment with respect to any reduction
may be suspended or the payment of the proceeds therefrom postponed during any
period (1) when the NYSE is closed (other than customary weekend or holiday
closings) or trading on the NYSE is restricted as determined by the SEC, (2)
when an emergency exists, as defined by the SEC, which would prohibit a
Portfolio in disposing of its portfolio securities or in fairly determining the
value of its assets, or (3) as the SEC may otherwise permit.
A-2
<PAGE>
Each Portfolio annually declares as a dividend all of its net investment
income, if any, which includes dividends, accrued interest and earned discount
(including both original issue and market discounts) less applicable expenses.
Each Portfolio also annually distributes substantially all of its realized net
short-term capital gain (the excess of short-term capital gains over short-term
capital losses), net capital gain (the excess of net long-term capital gain over
net short-term capital loss) and net gains from foreign currency transactions,
if any. Each Portfolio may make an additional dividend or other distribution if
necessary to avoid a 4% excise tax on certain undistributed income and gain.
Under the current method of the Portfolios' operation, they are not
subject to any income tax. However, each investor in a Portfolio is taxable on
its share (as determined in accordance with the governing instruments of the
Master Portfolio and the Internal Revenue Code of 1986, as amended ("Code") and
the regulations promulgated thereunder) of that Portfolio's income, gains,
losses, deductions, and credits in determining its income tax liability. The
determination of such share will be made in accordance with the Code and the
regulations promulgated thereunder. It is intended that each Portfolio's assets,
income, and distributions will be managed in such a way that an investor in a
Portfolio will be able to satisfy the requirements of Subchapter M of the Code,
assuming that the investor invested all of its assets in the Portfolio. See Part
B for a discussion of the foregoing tax matters and certain other matters.
ITEM 8. DISTRIBUTION ARRANGEMENTS.
Not applicable.
A-3
<PAGE>
APPENDIX A
RATINGS OF SECURITIES
A description of corporate bond and commercial paper ratings is incorporated
herein by reference from "Appendix" in the Feeder's Part B.
A-4
<PAGE>
GLOBAL INVESTMENT PORTFOLIO
PART B
Part B of this Registration Statement should be read only in conjunction
with Part A. Capitalized terms used in Part B and not otherwise defined have the
meanings given them in Part A of this Registration Statement.
Responses to certain Items required to be included in Part B of this
Registration Statement are incorporated herein by reference from the Feeder
Registration Statement. Part B of the Feeder Registration Statement includes the
joint statement of additional information of the AIM Theme Funds ("Feeder's Part
B").
ITEM 10. COVER PAGE AND TABLE OF CONTENTS.
Cover Page: Not applicable.
Page
History of Global Investment Portfolio.................................B-1
Description of the Master Portfolio and its Investments and Risks......B-1
Management of the Master Portfolio.....................................B-2
Control Persons and Principal Holders of Interests.....................B-2
Investment Advisory and Other Services.................................B-3
Brokerage Allocation and Other Practices...............................B-4
Capital Stock and Other Securities.....................................B-4
Purchase, Redemption and Pricing of Securities.........................B-6
Taxation of the Portfolio..............................................B-7
Underwriters...........................................................B-7
Calculation of Performance Data........................................B-7
Financial Statements...................................................B-7
ITEM 11. HISTORY OF GLOBAL INVESTMENT PORTFOLIO.
Global Investment Portfolio (the "Master Portfolio") was organized as a
Delaware business trust on May 7, 1998. On May 29, 1998, the Master Portfolio
acquired the assets and assumed the liabilities of Global Investment Portfolio,
a New York common law trust.
ITEM 12. DESCRIPTION OF THE MASTER PORTFOLIO AND ITS INVESTMENTS AND RISKS.
The Master Portfolio is a diversified, open-end management investment
company.
Part A contains basic information about the investment objectives,
principal investment strategies and principal risks of Financial Services
Portfolio, Infrastructure Portfolio, Resources Portfolio and Consumer Products
B-1
<PAGE>
Portfolio, each a subtrust or "series" of the Master Portfolio. This Part B
supplements the discussion in Part A of the investment objectives, principal
investment strategies and principal risks of the Portfolios.
Information on the fundamental investment limitations and the
non-fundamental investment policies and limitations of the Portfolios, the types
of securities bought and investment techniques used by the Portfolios, and
certain risks attendant thereto, as well as other information on the Portfolios'
investment programs, is incorporated by reference from the sections entitled
"Investment Strategies and Risks," "Options, Futures and Currency Strategies,"
"Risk Factors," "Investment Limitations" and "Execution of Portfolio
Transactions" in the Feeder's Part B.
ITEM 13. MANAGEMENT OF THE MASTER PORTFOLIO.
Information about the Trustees and officers of the Master Portfolio, and
their roles in management of the Portfolios and other AIM Funds, is incorporated
herein by reference from the section entitled "Trustees and Executive Officers"
in the Feeder's Part B.
For the fiscal year ended October 31, 1999, Mr. Anderson, Mr. Bayley, Mr.
Patterson (a Trustee until September 27, 1999, when he retired) and Miss
Quigley, who are not directors, officers or employees of AIM Advisors, Inc.
("AIM") or any affiliated company, each received total compensation of $101,833,
$103,883, $93,583 and $103,803, respectively, from the investment companies
which are managed or administered by AIM for which he or she serves as a
Director or Trustee. Fees and expenses disbursed to the Trustees contained no
accrued or payable pension, or retirement benefits.
ITEM 14. CONTROL PERSONS AND PRINCIPAL HOLDERS OF BENEFICIAL INTERESTS.
As of the date of this filing, Financial Services Fund, Resources Fund,
Infrastructure Fund and Consumer Products Fund (each a "Fund," collectively,
"Funds") owned 99.9%, 99.9%, 99.9% and 99.9% of the value of the outstanding
beneficial interests in Financial Services Portfolio, Resources Portfolio,
Infrastructure Portfolio and Consumer Products Portfolio, respectively. Because
currently each Fund controls its corresponding Portfolio, each Fund may take
actions affecting its corresponding Portfolio without the approval of any other
investor.
B-2
<PAGE>
Each Fund has informed its corresponding Portfolio that whenever a Fund is
requested to vote on any proposal of its corresponding Portfolio, it will hold a
meeting of shareholders and will cast its vote as instructed by its
shareholders. It is anticipated that other investors in each Portfolio will
follow the same or a similar practice.
The address of the Master Portfolio is 11 Greenway Plaza, Suite 100,
Houston, Texas 77046.
As of February 14, 2000, the officers and Trustees and their families as a
group owned in the aggregate beneficially or of record less than 1% of the
outstanding interests of each Portfolio.
ITEM 15. INVESTMENT ADVISORY AND OTHER SERVICES.
Information on the investment management and other services provided for
or on behalf of the Portfolios is incorporated herein by reference from the
sections entitled "Management" and "Miscellaneous Information" in the Feeder's
Part B. The following list identifies the specific sections in the Feeder's Part
B under which the information required by Item 15 of Form N-1A may be found;
each section is incorporated herein by reference.
Item 15(a) Management; Miscellaneous Information
Item 15(b) Not applicable
Item 15(c) Not applicable
Item 15(d) Management
Item 15(e) Not applicable
Item 15(f) Not applicable
Item 15(g) Not applicable
Item 15(h) Miscellaneous Information
For the fiscal year ended October 31, 1997, the Financial Services
Portfolio, Infrastructure Portfolio and Resources Portfolio paid investment
management and administration fees to INVESCO (NY), Inc. in the amounts of
$346,965, $772,727 and $976,215, respectively. For the period November 1, 1997
to May 29, 1998, the Financial Services Portfolio, Infrastructure Portfolio and
Resources Portfolio paid investment management and administration fees to
INVESCO (NY), Inc. in the amounts of $415,975, $384,081 and $478,132,
respectively. For the period May 30, 1998 to October 31, 1998, the Financial
Services Portfolio, Infrastructure Portfolio and Resources Portfolio paid
aggregate investment management and administration fees to AIM and/or INVESCO
(NY), Inc. in the amounts of $310,027, $227,946 and $200,643, respectively. For
the fiscal year ended October 31, 1999, the Financial Services Portfolio,
Infrastructure Portfolio and Resources Portfolio paid aggregate investment
management and administration fees to AIM and/or INVESCO (NY), Inc. in the
amounts of $520,685, $280,012, and $191,117, respectively.
B-3
<PAGE>
For the fiscal years ended October 31, 1997, the Consumer Products
Portfolio paid investment management and administration fees to INVESCO (NY),
Inc. in the amount of $1,207,854. For the period November 1, 1997 to May 29,
1998, the Consumer Products Portfolio paid investment management and
administration fees of $762,612 to INVESCO (NY), Inc. For the period May 30,
1998 to October 31, 1998, the Consumer Products Portfolio paid aggregate
investment management and administration fees of $566,451 to AIM and/or INVESCO
(NY), Inc. For the fiscal year ended October 31, 1999, the Consumer Products
Portfolio paid aggregate investment management and administration fees of
$1,323,258 to AIM and INVESCO (NY), Inc.
For the fiscal years ended October 31, 1997 and 1998, INVESCO (NY), Inc.
reimbursed the Financial Services Portfolio, Infrastructure Portfolio and
Resources Portfolio for their respective investment management and
administration fees in the amounts of $0, $0 and $0; and $0, $193,053 and
$244,561, respectively. For the fiscal year ended October 31, 1999, AIM and/or
INVESCO (NY), Inc. reimbursed the Financial Services Portfolio, Infrastructure
Portfolio and Resources Portfolio for their respective investment management and
administration fees in the amounts of $94,815, $123,428 and $111,410,
respectively.
For the fiscal years ended October 31, 1997 and 1998, INVESCO (NY), Inc.
reimbursed the Consumer Products Portfolio for investment management and
administration fees in the amounts of $0 and $0, respectively. For the fiscal
year ended October 31, 1999, AIM and/or INVESCO (NY), Inc. reimbursed the
Consumer Products Portfolio for investment management and administration fees in
the amount of $16,422. All expense reimbursements, if any, are made at the Fund
level.
ITEM 16. BROKERAGE ALLOCATION AND OTHER PRACTICES.
A description of the Portfolios' brokerage allocation and other practices
is incorporated herein by reference from the section entitled "Execution of
Portfolio Transactions" in the Feeder's Part B.
ITEM 17. CAPITAL STOCK AND OTHER SECURITIES.
Under the Master Portfolio's Agreement and Declaration of Trust, the
Trustees are authorized to issue beneficial interests in separate subtrusts or
"series" of the Master Portfolio. The Master Portfolio currently has four series
(i.e., the Portfolios). The Master Portfolio reserves the right to create and
issue additional series. An investor in a Portfolio is entitled to participate
PRO RATA in distributions of the Portfolio's income and gains and to be
allocated a PRO RATA share of the Portfolio's income, gains, losses, deductions,
and credits. Upon liquidation or dissolution of a Portfolio, investors are
entitled to share PRO RATA in that Portfolio's net assets available for
distribution to its investors. Investments in each Portfolio may not be
transferred, but an investor may withdraw all or any portion of its investment
at any time at net asset value. Investments in a Portfolio have no preference,
preemptive, conversion or similar rights.
B-4
<PAGE>
Under Delaware law, the AIM Global Financial Services Fund ("Financial
Services Fund"), AIM Global Resources Fund ("Resources Fund"), AIM Global
Infrastructure Fund, ("Infrastructure Fund"), AIM Global Consumer Products and
Services Fund ("Consumer Produces Fund"), and other entities investing in the
Portfolios enjoy the same limitations of liability extended to shareholders of
private, for-profit corporations. There is a remote possibility, however, that
under certain circumstances an investor in a Portfolio may be held liable for
the Portfolio's obligations. However, the Master Portfolios' Agreement and
Declaration of Trust disclaims shareholder liability for acts or obligations of
the Portfolios and requires that notice of such disclaimer be given in each
agreement, obligation or instrument entered into or executed by the Portfolio or
a trustee. The Agreement and Declaration of Trust also provides for
indemnification from the Portfolio property for all losses and expenses of any
shareholder held personally liable for the Portfolios' obligations. Thus, the
risk of an investor incurring financial loss on account of such liability is
limited to circumstances in which the Portfolios themselves would be unable to
meet their obligations and where the other party was held not to be bound by the
disclaimer. The Agreement and Declaration of Trust also provides that each
Portfolio shall maintain appropriate insurance (for example, fidelity bonding
and errors and omissions insurance) covering certain kinds of potential
liabilities. Thus, the risk of an investor incurring financial loss on account
of investor liability is limited to circumstances in which both inadequate
insurance existed and the investor's Portfolio itself was unable to meet its
obligations.
Each investor in a Portfolio is entitled to vote in proportion to the
amount of its investment in that Portfolio. Investors in the Portfolios will all
vote together in certain circumstances (e.g., election of the Trustees and
auditors, and as required by the 1940 Act and the rules thereunder). Investors
in a Portfolio do not have cumulative voting rights, and investors holding more
than 50% of the aggregate beneficial interest in the Master Portfolio or in a
Portfolio, as the case may be, may control the outcome of these votes. Investors
also have under certain circumstances the right to remove one or more Trustees
without a meeting. The Master Portfolio is not required to hold annual meetings
of investors but the Master Portfolio will hold special meetings of investors
when in the judgment of the Master Portfolio's Trustees it is necessary or
desirable to submit matters for an investor vote. No amendment may be made to
the Master Portfolio's Agreement and Declaration of Trust without the
affirmative majority vote of investors (with the vote of each being in
proportion to the amount of its investment).
As of the date of this Registration Statement, AIM Investment Funds owns a
majority interest in the Master Portfolio and each Portfolio. However, AIM
Investment Funds has undertaken that, with respect to most matters on which the
Master Portfolio seeks a vote of its interestholders, AIM Investment Funds will
seek a vote of its shareholders and will vote its interest in the Master
Portfolio in accordance with their instructions.
The Master Portfolio or any Portfolio may be terminated by (1) "the vote
of a majority of the outstanding voting securities" (as defined in the 1940 Act)
of the Master Portfolio or the affected Portfolio, respectively, or (2) if there
are fewer than 100 record owners of a beneficial interest in the Master
Portfolio or of such terminating Portfolio, the Trustees pursuant to written
notice to the record owners of the Master Portfolio or the affected Portfolio.
The Trustees may cause (i) the Master Portfolio or one or more of its Portfolios
to the extent consistent with applicable law to sell all or substantially all of
B-5
<PAGE>
its assets, or be merged into or consolidated with another business trust or
company, (ii) the beneficial interests of a record owner in the Master Portfolio
or any Portfolio to be converted into beneficial interests in another business
trust (or series thereof) created pursuant to Section 10.4 of Article X of the
Master Portfolio's Agreement and Declaration of Trust, or (iii) the beneficial
interests of a record owner of the Master Portfolio to be exchanged under or
pursuant to any state or federal statute to the extent permitted by law. In all
respects not governed by statute or applicable law, the Trustees shall have
power to prescribe the procedure necessary or appropriate to accomplish a sale
of assets, merger or consolidation including the power to create one or more
separate business trusts to which all or any part of the assets, liabilities,
profits or losses of the Trust may be transferred and to provide for the
conversion of interests in the Trust or any Portfolio into beneficial interests
in such separate business trust or trusts (or series or class thereof).
The Agreement and Declaration of Trust provides that obligations of each
Portfolio are not binding upon the Trustees individually but only upon the
property of that Portfolio and that the Trustees will not be liable for any
action or failure to act, but nothing in the Agreement and Declaration of Trust
protects a Trustee against any liability to which he would otherwise be subject
by reason of willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his or her office. The
Agreement and Declaration of Trust provides that the Trustees and officers will
be indemnified by the Master Portfolio against liabilities and expenses incurred
in connection with litigation in which they may be involved because of their
offices with the Master Portfolio, unless, as to liability to the Master
Portfolio or its investors, it is finally adjudicated that they engaged in
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in their offices, or unless with respect to any other matter it
is finally adjudicated that they did not act in good faith in the reasonable
belief that their actions were in the best interests of the Master Portfolio. In
the case of settlement, such indemnification will not be provided unless it has
been determined by a court or other body approving the settlement or other
disposition, or by a reasonable determination, based upon a review of readily
available facts, by vote of a majority of disinterested Trustees or in a written
opinion of independent counsel, that such officers or Trustees have not engaged
in willful misfeasance, bad faith, gross negligence or reckless disregard of
their duties.
ITEM 18. PURCHASE, REDEMPTION AND PRICING OF SECURITIES.
Beneficial interests in each Portfolio are issued solely in private
placement transactions which do not involve any "public offering" within the
meaning of Section 4(2) of the Securities Act of 1933, as amended.
Information on the method followed by the Portfolios in determining their
net asset value and the timing of such determination is incorporated by
reference from the section entitled "Net Asset Value Determination" in the
Feeder's Part B. See also Item 7 in Part A.
Each Portfolio reserves the right, if conditions exist which make cash
payments undesirable, to honor any request for redemption or repurchase order by
making payment in whole or in part in readily marketable securities chosen by
that Portfolio and valued as they are for purposes of computing the Portfolio's
B-6
<PAGE>
net asset value (a redemption in kind). If payment is made in securities, an
investor may incur transaction expenses in converting these securities into
cash. Each Portfolio has elected, however, to be governed by Rule 18f-1 under
the 1940 Act as a result of which each Portfolio is obligated to redeem
beneficial interests with respect to any one investor during any 90 day period,
solely in cash up to the lesser of $250,000 or 1% of the net asset value of that
Portfolio at the beginning of the period.
Each investor in a Portfolio may add to or reduce its investment in that
Portfolio on each day that the NYSE is open for trading. At the close of
trading, on each such day, the value of each investor's interest in a Portfolio
will be determined by multiplying the net asset value of such Portfolio by the
percentage representing that investor's share of the aggregate beneficial
interests in that Portfolio. Any additions or reductions which are to be
effected on that day will then be effected. The investor's percentage of the
aggregate beneficial interests in a Portfolio will then be recomputed as the
percentage equal to the fraction (i) the numerator of which is the value of such
investor's investment in the Portfolio as of the close of trading on such day
plus or minus, as the case may be, the amount of net additions to or reductions
in the investor's investment in that Portfolio effected on such day, and (ii)
the denominator of which is the aggregate net asset value of the Portfolio as of
the close of trading on such day plus or minus, as the case may be, the amount
of the net additions to or reductions in the aggregate investments in that
Portfolio by all investors in that Portfolio. The percentage so determined will
then be applied to determine the value of the investor's interest in that
Portfolio as of the close of trading on the following day the NYSE is open for
trading.
ITEM 19. TAXATION OF THE PORTFOLIO.
Information on the taxation of the Portfolios is incorporated by reference
from the section entitled "Dividends, Distributions and Tax Matters" in the
Feeder's Part B.
ITEM 20. UNDERWRITERS.
Not applicable.
ITEM 21. CALCULATION OF PERFORMANCE DATA.
Not applicable.
ITEM 22. FINANCIAL STATEMENTS.
The audited financial statements of the Financial Services Portfolio, the
Infrastructure Portfolio, the Resources Portfolio and the Consumer Products
Portfolio for the fiscal year ended October 31, 1999, are included herein, in
reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
B-7
<PAGE>
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-53.45%
BEVERAGES (ALCOHOLIC)-1.34%
Adolph Coors Co. 12,800 $ 710,400
- --------------------------------------------------------------
Anheuser-Busch Companies, Inc. 24,600 1,766,587
- --------------------------------------------------------------
2,476,987
- --------------------------------------------------------------
BIOTECHNOLOGY-0.94%
Amgen, Inc.(a) 21,800 1,738,550
- --------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.30%
AT&T Corp. - Liberty Media
Group-Class A(a) 45,700 1,813,719
- --------------------------------------------------------------
Comcast Corp.-Class A 40,400 1,701,850
- --------------------------------------------------------------
TiVo Inc.(a) 17,600 754,600
- --------------------------------------------------------------
4,270,169
- --------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-4.44%
ANTEC Corp.(a) 31,900 1,547,150
- --------------------------------------------------------------
Comverse Technology, Inc.(a) 26,400 2,996,400
- --------------------------------------------------------------
Lucent Technologies Inc. 30,360 1,950,630
- --------------------------------------------------------------
Spanish Broadcasting System, Inc.(a) 40,600 1,080,975
- --------------------------------------------------------------
Sycamore Networks, Inc.(a) 3,000 645,000
- --------------------------------------------------------------
8,220,155
- --------------------------------------------------------------
COMPUTERS (NETWORKING)-0.81%
Cisco Systems, Inc.(a) 20,243 1,497,982
- --------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.92%
Lexmark International Group,
Inc.-Class A(a) 21,900 1,709,569
- --------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-4.13%
Adobe Systems, Inc. 36,000 2,517,750
- --------------------------------------------------------------
Microsoft Corp.(a) 36,500 3,378,531
- --------------------------------------------------------------
Oracle Corp.(a) 37,000 1,759,812
- --------------------------------------------------------------
7,656,093
- --------------------------------------------------------------
CONSUMER FINANCE-0.78%
Providian Financial Corp. 13,250 1,444,250
- --------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-0.92%
Altera Corp.(a) 35,000 1,701,875
- --------------------------------------------------------------
ENTERTAINMENT-0.88%
Time Warner, Inc. 23,300 1,623,719
- --------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-2.59%
Applied Materials, Inc.(a) 14,000 1,257,375
- --------------------------------------------------------------
KLA-Tencor Corp.(a) 17,000 1,346,187
- --------------------------------------------------------------
Lam Research Corp.(a) 26,000 2,195,375
- --------------------------------------------------------------
4,798,937
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FINANCIAL (DIVERSIFIED)-1.94%
Citigroup, Inc. 38,550 $ 2,086,519
- --------------------------------------------------------------
Fannie Mae 21,300 1,506,975
- --------------------------------------------------------------
3,593,494
- --------------------------------------------------------------
FOODS-2.09%
Dean Foods Co. 28,000 1,295,000
- --------------------------------------------------------------
Quaker Oats Co. (The) 37,000 2,590,000
- --------------------------------------------------------------
3,885,000
- --------------------------------------------------------------
GAMING, LOTTERY & PARIMUTUEL
COMPANIES-1.12%
Aztar Corp.(a) 82,000 794,375
- --------------------------------------------------------------
Station Casinos, Inc.(a) 53,000 1,281,937
- --------------------------------------------------------------
2,076,312
- --------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-3.73%
Allergan, Inc. 17,000 1,825,375
- --------------------------------------------------------------
Bristol-Myers Squibb Co. 29,000 2,227,562
- --------------------------------------------------------------
Johnson & Johnson 9,000 942,750
- --------------------------------------------------------------
Warner-Lambert Co. 24,000 1,915,500
- --------------------------------------------------------------
6,911,187
- --------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-0.43%
VISX, Inc.(a) 12,600 788,287
- --------------------------------------------------------------
INSURANCE (MULTI-LINE)-1.00%
American International Group, Inc. 17,976 1,850,405
- --------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-1.20%
Morgan Stanley, Dean Witter & Co. 20,100 2,217,281
- --------------------------------------------------------------
MACHINERY (DIVERSIFIED)-1.12%
Case Corp. 39,300 2,082,900
- --------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.34%
Tyco International Ltd. 62,400 2,492,100
- --------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-0.66%
Briggs & Stratton Corp. 21,000 1,227,188
- --------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-1.13%
Marine Drilling Companies, Inc.(a) 129,600 2,097,900
- --------------------------------------------------------------
RESTAURANTS-0.29%
Tricon Global Restaurants, Inc.(a) 13,600 546,550
- --------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-2.06%
Home Depot, Inc. (The) 30,200 2,280,100
- --------------------------------------------------------------
Lowe's Companies, Inc. 28,008 1,540,440
- --------------------------------------------------------------
3,820,540
- --------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (COMPUTERS &
ELECTRONICS)-2.76%
Best Buy Co., Inc.(a) 18,000 $ 1,000,125
- --------------------------------------------------------------
Circuit City Stores-Circuit City
Group 24,800 1,058,650
- --------------------------------------------------------------
Tandy Corp. 48,600 3,058,763
- --------------------------------------------------------------
5,117,538
- --------------------------------------------------------------
RETAIL (DISCOUNTERS)-1.15%
Burlington Coat Factory Warehouse
Corp. 75,000 1,284,375
- --------------------------------------------------------------
Family Dollar Stores, Inc. 41,300 851,813
- --------------------------------------------------------------
2,136,188
- --------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.57%
Safeway, Inc.(a) 30,000 1,059,375
- --------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-1.47%
Wal-Mart Stores, Inc. 48,000 2,721,000
- --------------------------------------------------------------
RETAIL (HOME SHOPPING)-1.04%
Chemdex Corp.(a) 50,600 1,929,125
- --------------------------------------------------------------
RETAIL (SPECIALTY)-1.36%
Haverty Furniture Cos., Inc. 60,000 825,000
- --------------------------------------------------------------
Linens 'n Things, Inc.(a) 21,200 842,700
- --------------------------------------------------------------
Sonic Automotive, Inc.(a) 81,400 849,613
- --------------------------------------------------------------
2,517,313
- --------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-2.50%
American Eagle Outfitters, Inc.(a) 21,200 907,625
- --------------------------------------------------------------
AnnTaylor Stores Corp.(a) 16,900 719,306
- --------------------------------------------------------------
Chico's Fas, Inc.(a) 44,000 1,380,500
- --------------------------------------------------------------
TJX Companies, Inc. (The) 59,600 1,616,650
- --------------------------------------------------------------
4,624,081
- --------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-1.13%
Outdoor Systems, Inc.(a) 49,400 2,093,325
- --------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-2.36%
Nextel Communications, Inc.-Class
A(a) 50,800 4,378,325
- --------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.41%
Global TeleSystems Group, Inc.(a) 32,000 766,000
- --------------------------------------------------------------
TELEPHONE-0.54%
NTL, Inc.(a) 7,250 546,469
- --------------------------------------------------------------
Qwest Communications International,
Inc.(a) 12,600 453,600
- --------------------------------------------------------------
1,000,069
- --------------------------------------------------------------
Total Domestic Common Stocks
(Cost $72,802,212) 99,069,769
- --------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-37.62%
BELGIUM-1.09%
Fortis (B)
(Financial-Diversified)(a) 60,000 2,026,248
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-5.27%
Cominco Ltd. (Metals Mining) 118,000 $ 2,083,814
- --------------------------------------------------------------
Imasco Ltd.
(Manufacturing-Diversified) 147,300 3,951,878
- --------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 60,600 3,727,046
- --------------------------------------------------------------
9,762,738
- --------------------------------------------------------------
FINLAND-2.26%
Nokia Oyj-ADR (Communications
Equipment) 36,200 4,183,363
- --------------------------------------------------------------
FRANCE-6.25%
Banque Nation de Paris (Financial
Diversified), Wts., expiring
07/15/02(a) 5,460 32,282
- --------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 23,080 2,027,490
- --------------------------------------------------------------
Carrefour Supermarche S.A.
(Retail-Food Chains) 15,300 2,832,960
- --------------------------------------------------------------
Lafarge S.A. (Engineering &
Construction) 18,200 1,751,979
- --------------------------------------------------------------
Renault S.A. (Automobiles) 33,300 1,723,637
- --------------------------------------------------------------
SEITA (Tobacco) 29,400 1,639,304
- --------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting- Television, Radio &
Cable) 5,000 1,567,555
- --------------------------------------------------------------
11,575,207
- --------------------------------------------------------------
GERMANY-1.10%
Mannesmann A.G.
(Machinery-Diversified) 13,000 2,044,659
- --------------------------------------------------------------
IRELAND-2.68%
Bank of Ireland (Banks-Major
Regional) 191,238 1,492,847
- --------------------------------------------------------------
CRH PLC (Construction-Cement &
Aggregates) 94,200 1,778,901
- --------------------------------------------------------------
Jefferson Smurfit Group PLC-ADR
(Containers & Packaging-Paper) 66,000 1,699,500
- --------------------------------------------------------------
4,971,248
- --------------------------------------------------------------
ITALY-2.35%
Banca Commerciale Italiana
(Banks-Major Regional) 145,467 867,729
- --------------------------------------------------------------
Luxottica Group S.p.A.-ADR
(Consumer-Jewelry, Novelties &
Gifts) 100,900 1,936,019
- --------------------------------------------------------------
Telecom Italia Mobile S.p.A.
(Telecommunications-Cellular/Wireless) 247,300 1,545,421
- --------------------------------------------------------------
4,349,169
- --------------------------------------------------------------
JAPAN-2.86%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) 190 2,915,927
- --------------------------------------------------------------
Toyota Motor Corp.
(Automobile-Manufacturers) 69,000 2,389,238
- --------------------------------------------------------------
5,305,165
- --------------------------------------------------------------
NETHERLANDS-2.02%
ABN AMRO Holding N.V. (Banks-Major
Regional) 67,422 1,630,711
- --------------------------------------------------------------
Equant N.V.
(Computers--Networking)(a) 5,900 574,156
- --------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NETHERLANDS-(CONTINUED)
Heineken N.V. (Beverages-Alcoholic) 30,325 $ 1,546,997
- --------------------------------------------------------------
3,751,864
- --------------------------------------------------------------
NORWAY-0.94%
Den Norske Bank A.S.A. (Banks-Major
Regional) 451,600 1,748,983
- --------------------------------------------------------------
SINGAPORE-0.95%
NatSteel Ltd. (Iron & Steel) 1,056,000 1,765,610
- --------------------------------------------------------------
SOUTH KOREA-1.51%
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 84,000 2,803,500
- --------------------------------------------------------------
SWITZERLAND-1.01%
Compagnie Financiere Richemont A.G.
(Tobacco) 980 1,871,686
- --------------------------------------------------------------
UNITED KINGDOM-7.33%
BG PLC (Oil & Gas-Exploration &
Production) 325,800 1,809,150
- --------------------------------------------------------------
Centrica PLC (Oil & Gas-Exploration
& Production) 964,400 2,802,495
- --------------------------------------------------------------
COLT Telecom Group PLC
(Communications Equipment)(a) 31,150 931,577
- --------------------------------------------------------------
Energis PLC (Telephone)(a) 56,500 1,803,027
- --------------------------------------------------------------
Imperial Tobacco Group PLC (Tobacco) 125,000 1,325,556
- --------------------------------------------------------------
Royal Bank of Scotland Group PLC
(Banks- Major Regional) 106,620 2,457,621
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Vodafone AirTouch PLC-ADR
(Telecommunications-Cellular/Wireless) 51,000 $ 2,444,813
- --------------------------------------------------------------
13,574,239
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$56,003,482) 69,733,679
- --------------------------------------------------------------
MONEY MARKET FUNDS-7.94%
STIC Liquid Assets Portfolio(b) 7,355,453 7,355,453
- --------------------------------------------------------------
STIC Prime Portfolio(b) 7,355,453 7,355,453
- --------------------------------------------------------------
Total Money Market Funds (Cost
$14,710,906) 14,710,906
- --------------------------------------------------------------
TOTAL INVESTMENTS-99.01% (Cost
$143,516,600) 183,514,354
- --------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.99% 1,829,449
- --------------------------------------------------------------
NET ASSETS-100.00% $185,343,803
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Wts. - Warrants
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $143,516,600) $183,514,354
- -----------------------------------------------------------
Foreign currencies, at value (cost
$2,441,639) 2,424,475
- -----------------------------------------------------------
Receivables for:
Investments sold 4,528,952
- -----------------------------------------------------------
Dividends and interest 179,289
- -----------------------------------------------------------
Other assets 12,035
- -----------------------------------------------------------
Due from advisor 16,422
- -----------------------------------------------------------
Total assets 190,675,527
===========================================================
LIABILITIES FOR:
Payable for investments purchased 5,205,191
- -----------------------------------------------------------
Accrued advisory fees 111,103
- -----------------------------------------------------------
Accrued custodian fees 13,142
- -----------------------------------------------------------
Accrued professional fees 775
- -----------------------------------------------------------
Accrued operating expenses 1,513
- -----------------------------------------------------------
Total liabilities 5,331,724
- -----------------------------------------------------------
Net assets applicable to beneficial interest
outstanding $185,343,803
===========================================================
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $117,570 foreign
withholding tax) $ 1,509,215
- -----------------------------------------------------------
Interest 610,144
- -----------------------------------------------------------
Securities lending income 104,422
- -----------------------------------------------------------
Total investment income 2,223,781
===========================================================
EXPENSES:
Advisory and administrative fees 1,339,678
- -----------------------------------------------------------
Custodian fees 87,031
- -----------------------------------------------------------
Printing fees 2,761
- -----------------------------------------------------------
Professional 9,488
- -----------------------------------------------------------
Other expenses 242
- -----------------------------------------------------------
Total expenses 1,439,200
- -----------------------------------------------------------
Less: Fees waived by advisor (16,422)
- -----------------------------------------------------------
Net expenses 1,422,778
- -----------------------------------------------------------
Net investment income 801,003
===========================================================
REALIZED AND UNREALIZED GAIN FROM INVESTMENT
SECURITIES AND FOREIGN CURRENCIES:
Net realized gain from:
Investment securities 44,400,506
- -----------------------------------------------------------
Foreign currencies 74,456
- -----------------------------------------------------------
44,474,962
- -----------------------------------------------------------
Change in net unrealized appreciation of:
- -----------------------------------------------------------
Investment securities 20,689,784
- -----------------------------------------------------------
Foreign currencies 20,185
- -----------------------------------------------------------
20,709,969
- -----------------------------------------------------------
Net gain from investment securities and
foreign currencies 65,184,931
- -----------------------------------------------------------
Net increase in net assets resulting from
operations $ 65,985,934
===========================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
Operations:
Net investment income $ 801,003 $ 702,727
- -----------------------------------------------------------------------------------------
Net realized gain on investment and foreign currencies 44,474,962 4,655,445
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation of investment
securities and foreign currencies 20,709,969 10,772,689
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 65,985,934 16,130,861
- -----------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS:
Contributions 4,146,054 32,490,022
- -----------------------------------------------------------------------------------------
Withdrawals (51,401,645) (44,623,457)
- -----------------------------------------------------------------------------------------
Net increase (decrease) from beneficial interest
transactions (47,255,591) (12,133,435)
- -----------------------------------------------------------------------------------------
Total increase in net assets 18,730,343 3,997,426
- -----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 166,613,460 162,616,034
- -----------------------------------------------------------------------------------------
End of year $185,343,803 $166,613,460
=========================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
The Global Consumer Products and Services Portfolio (the "Portfolio") is
organized as a Delaware business trust which is registered under the 1940 Act as
an open-end management investment company.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Portfolio in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price on the exchange where
the security is principally traded, or lacking any sales on a particular day,
the security is valued at the closing bid price on that day. Each security
reported on the NASDAQ National Market System is valued at the last sales
price on the valuation date or absent a last sales price, at the closing bid
price. Debt obligations (including convertible bonds) are valued on the basis
of prices provided by an independent pricing service. Prices provided by the
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as yield, type of issue,
coupon rate and maturity date. Securities for which market prices are not
provided by any of the above methods are valued based upon quotes furnished
by independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as determined
in good faith by or under the supervision of the Trust's officers in a manner
specifically authorized by the Board of Trustees. Short-term obligations
having 60 days or less to maturity are valued at amortized cost which
approximates market value. For purposes of determining net asset value per
share, futures and options contracts generally will be valued 15 minutes
after the close of trading of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities are determined as of such times. Foreign currency exchange rates
are also generally determined prior to the close of the NYSE. Occasionally,
events affecting the values of such securities and such exchange rates may
occur between the times at which they are determined and the close of the
NYSE which would not be reflected. 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 Trustees.
B. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis.
C. Federal Income Taxes -- The Portfolio intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
D. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Portfolio
does not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
10
<PAGE>
E. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Portfolio may enter into a foreign currency contract to attempt to
minimize the risk to the Portfolio from adverse changes in the relationship
between currencies. The Portfolio may also enter into a foreign currency
contract for the purchase or sale of a security denominated in a foreign
currency in order to "lock in" the U.S. dollar price of that security. The
Portfolio could be exposed to risk if counterparties to the contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably.
F. Foreign Securities -- There are certain additional considerations and risks
associated with investing in foreign securities and currency transactions
that are not inherent in investments of domestic origin. The Portfolio's
investment in emerging market countries may involve greater risks than
investments in more developed markets and the price of such investments may
be volatile. These risks of investing in foreign and emerging markets may
include foreign currency exchange fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
In addition, the Portfolio's policy of concentrating its investments in
companies in the consumer products and services industry subjects the
Portfolio to greater risk than a fund that is more diversified.
G. Indexed Securities -- The Portfolio may invest in indexed securities whose
value is linked either directly or indirectly to changes in foreign
currencies, interest rates, equities, indices, or other reference
instruments. Indexed securities may be more volatile than the reference
instrument itself, but any loss is limited to the amount of the
original investment.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Portfolio's investment manager and
administrator. The Portfolio pays AIM investment management and administration
fees at an annual rate of 0.725% on the first $500 million of the Portfolio's
average daily net assets, plus 0.70% on the next $500 million of the Portfolio's
average daily net assets, plus 0.675% on the next $500 million of the
Portfolio's average daily net assets, plus 0.65% on the Portfolio's average
daily net assets exceeding $1.5 billion.
NOTE 3-INDIRECT EXPENSES
During the year ended October 31, 1999, the Fund received reductions in
custodian fees of $1,368 under expense offset arrangements. The effect of the
above arrangements resulted in a reduction of the Fund's total expenses of
$1,368 during the year ended October 31, 1999.
NOTE 4-BANK BORROWINGS
The Portfolio is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Portfolio may borrow up
to the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Portfolio and other funds advised by AIM which are parties to
the line of credit may borrow on a first come, first served basis. During the
year ended October 31, 1999, the Portfolio did not borrow under the line of
credit agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among the funds based on their respective average
net assets for the period. Prior to May 28, 1999, the Portfolio, along with
certain other funds advised and/or administered by AIM, had a line of credit
with BankBoston and State Street Bank & Trust Company. The arrangements with the
banks allowed the Fund and certain other funds to borrow, on a first come, first
served basis, an aggregate maximum amount of $250,000,000.
NOTE 5-PORTFOLIO SECURITIES LOANED
At October 31, 1999, securities with an aggregate value of $10,734,244 were on
loan to brokers. The loans were secured by cash collateral of $10,948,928
received by the Portfolio. For the year ended October 31, 1999, the Portfolio
received fees of $104,422 for securities lending.
For international securities, cash collateral is received by the Fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Fund against loaned securities in the amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. The cash collateral is
invested in a securities lending trust which consists of a portfolio of high
quality short duration securities whose average effective duration is restricted
to 120 days or less.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Portfolio during the year ended October 31, 1999 was
$272,531,597 and $321,676,079, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of October 31, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $41,092,549
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (1,435,765)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $39,656,784
==========================================================
Cost of investments for tax purposes is $143,857,570.
</TABLE>
11
<PAGE>
NOTE 7-SUPPLEMENTAL DATA
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, DECEMBER 30, 1994
----------------------------------------- (COMMENCEMENT OF OPERATIONS
1999 1998 1997 1996 TO OCTOBER 31, 1995)
-------- -------- -------- -------- ---------------------------
<S> <C> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $185,344 $166,613 $162,616 $170,293 $6,502
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net
assets 0.44% 0.38% 0.51% 0.39% 0.30%(a)
- ------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
excluding interest expense:
With expense waivers 0.77% 0.74% 0.61% 0.72% 2.37%(a)
- ------------------------------------------------------------------------------------------------------------------------
Without expense waivers 0.78% 0.76% 0.76% 0.83% 2.44%(a)
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 160% 221% 392% 169% 240%(a)
=========================================================================================================================
</TABLE>
(a) Annualized.
12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Consumer Products and
Services Portfolio and Board of Trustees of AIM
Investment Funds
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Consumer Products and Services Portfolio -- at
October 31, 1999, and the results of its operations, the
changes in its net assets and the supplemental data for
the periods indicated, in conformity with generally
accepted accounting principles. These financial
statements and supplemental data (hereafter referred to
as "financial statements") are the responsibility of the
Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our
audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing
standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and
significant estimates made by management, and evaluating
the overall financial statement presentation. We believe
that our audits, which included confirmation of
securities at October 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the
opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 23, 1999
13
<PAGE>
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-80.16%
BANKS (MAJOR REGIONAL)-6.39%
Bank of New York Co., Inc. (The) 30,000 $ 1,256,250
- --------------------------------------------------------------
Fleet Boston Corp. 31,978 1,395,040
- --------------------------------------------------------------
Mellon Financial Corp. 29,600 1,093,350
- --------------------------------------------------------------
Wells Fargo Co. 30,000 1,436,250
- --------------------------------------------------------------
5,180,890
- --------------------------------------------------------------
BANKS (MONEY CENTER)-4.87%
Bank of America Corp. 13,843 891,143
- --------------------------------------------------------------
Chase Manhattan Corp. (The) 35,000 3,058,125
- --------------------------------------------------------------
3,949,268
- --------------------------------------------------------------
BANKS (REGIONAL)-6.77%
City National Corp. 43,350 1,679,812
- --------------------------------------------------------------
First Tennessee National Corp. 19,100 649,400
- --------------------------------------------------------------
North Fork Bancorporation, Inc. 30,000 620,625
- --------------------------------------------------------------
UnionBanCal Corp. 28,200 1,224,937
- --------------------------------------------------------------
UST Corp. 19,300 598,300
- --------------------------------------------------------------
Zions Bancorp 12,100 713,144
- --------------------------------------------------------------
5,486,218
- --------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-2.88%
Digital Insight Corp.(a) 20,200 800,425
- --------------------------------------------------------------
HomeStore.com, Inc.(a) 7,900 370,806
- --------------------------------------------------------------
Intuit, Inc.(a) 40,000 1,165,000
- --------------------------------------------------------------
2,336,231
- --------------------------------------------------------------
CONSUMER FINANCE-11.77%
Capital One Financial Corp. 43,500 2,305,500
- --------------------------------------------------------------
Doral Financial Corp. 40,000 512,500
- --------------------------------------------------------------
Investors Financial Services Corp. 60,100 2,223,700
- --------------------------------------------------------------
MBNA Corp. 38,500 1,063,562
- --------------------------------------------------------------
Providian Financial Corp. 31,500 3,433,500
- --------------------------------------------------------------
9,538,762
- --------------------------------------------------------------
<PAGE>
ELECTRICAL EQUIPMENT-1.84%
General Electric Co. 11,000 1,491,187
- --------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-15.75%
American Express Co. 17,000 2,618,000
- --------------------------------------------------------------
Associates First Capital Corp.-Class A
45,000 1,642,500
- --------------------------------------------------------------
Citigroup, Inc. 77,137 4,175,040
- --------------------------------------------------------------
Fannie Mae 31,000 2,193,250
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FINANCIAL (DIVERSIFIED)-(CONTINUED)
Freddie Mac 39,500 $ 2,135,469
- --------------------------------------------------------------
12,764,259
- --------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-3.66%
AFLAC, Inc. 25,000 1,278,125
- --------------------------------------------------------------
AXA Financial, Inc. 35,000 1,122,187
- --------------------------------------------------------------
Nationwide Financial Services,
Inc.-Class A 15,000 568,125
- --------------------------------------------------------------
2,968,437
- --------------------------------------------------------------
INSURANCE (MULTI-LINE)-4.70%
American International Group, Inc. 32,500 3,345,469
- --------------------------------------------------------------
Hartford Financial Services Group,
Inc. (The) 9,000 466,313
- --------------------------------------------------------------
3,811,782
- --------------------------------------------------------------
INSURANCE BROKERS-2.94%
Marsh & McLennan Co. 30,100 2,379,781
- --------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-6.46%
Merrill Lynch & Co., Inc. 8,000 628,000
- --------------------------------------------------------------
Morgan Stanley, Dean Witter & Co. 28,000 3,088,750
- --------------------------------------------------------------
Schwab (Charles) Corp. (The) 39,000 1,518,563
- --------------------------------------------------------------
5,235,313
- --------------------------------------------------------------
INVESTMENT MANAGEMENT-3.29%
Alliance Capital Management L.P. 68,800 1,887,700
- --------------------------------------------------------------
Knight/Trimark Group, Inc.-Class A(a) 30,000 781,875
- --------------------------------------------------------------
2,669,575
- --------------------------------------------------------------
RAILROADS-1.76%
Kansas City Southern Industries, Inc. 30,000 1,423,125
- --------------------------------------------------------------
SAVINGS & LOAN COMPANIES-1.53%
Golden West Financial Corp. 11,100 1,240,425
- --------------------------------------------------------------
<PAGE>
SERVICES (ADVERTISING/MARKETING)-1.07%
Metris Companies, Inc. 25,000 860,938
- --------------------------------------------------------------
SERVICES (DATA PROCESSING)-4.48%
Concord EFS, Inc.(a) 42,000 1,136,625
- --------------------------------------------------------------
First Data Corp. 41,000 1,873,188
- --------------------------------------------------------------
Profit Recovery Group International,
Inc.(a) 15,000 617,813
- --------------------------------------------------------------
3,627,626
- --------------------------------------------------------------
Total Domestic Common Stocks
(Cost $49,466,406) 64,963,817
- --------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS-12.59%
FRANCE-3.24%
AXA (Insurance-Multi-Line) 18,650 $ 2,631,140
- --------------------------------------------------------------
HONG KONG-1.90%
Dah Sing Financial Group
(Banks-Regional) 386,000 1,540,403
- --------------------------------------------------------------
IRELAND-1.54%
Bank of Ireland (Banks-Major
Regional) 159,601 1,245,876
- --------------------------------------------------------------
JAPAN-2.75%
Nikko Securities Co., Ltd. (The)
(Investment Banking/Brokerage) 94,000 883,603
- --------------------------------------------------------------
Nomura Securities Co., Ltd.
(Finance-Asset Management)(a) 37,000 610,781
- --------------------------------------------------------------
Shohkoh Fund & Co., Ltd.
(Financial-Diversified) 1,200 734,353
- --------------------------------------------------------------
2,228,737
- --------------------------------------------------------------
NETHERLANDS-1.05%
Aegon N.V. (Insurance-Multi-Line
Property) 9,263 851,617
- --------------------------------------------------------------
PHILIPPINES-0.81%
Equitable PCI Bank (Banks-Major
Regional) 370,000 655,112
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SINGAPORE-1.30%
DBS Group Holdings Ltd. (Banks-Money
Center)(a) 93,040 $ 1,051,995
- --------------------------------------------------------------
Total Foreign Stocks (Cost
$7,511,744) 10,204,880
- --------------------------------------------------------------
MONEY MARKET FUNDS-8.26%
STIC Liquid Assets Portfolio(b) 3,346,551 3,346,551
- --------------------------------------------------------------
STIC Prime Portfolio(b) 3,346,551 3,346,551
- --------------------------------------------------------------
Total Money Market Funds (Cost
$6,693,102) 6,693,102
- --------------------------------------------------------------
TOTAL INVESTMENTS-101.01%
(Cost $63,671,252) 81,861,799
- --------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS-(1.01)% (819,094)
- --------------------------------------------------------------
NET ASSETS-100.00% $81,042,705
==============================================================
</TABLE>
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $63,671,252) $81,861,799
- -----------------------------------------------------------
Foreign currencies, at value (cost $1,048) 1,055
- -----------------------------------------------------------
Receivables for:
Dividends and interest 161,989
- -----------------------------------------------------------
Other assets 10,442
- -----------------------------------------------------------
Total assets 82,035,285
===========================================================
LIABILITIES FOR:
Payable for investments purchased 942,162
- -----------------------------------------------------------
Accrued advisory fees 45,190
- -----------------------------------------------------------
Accrued custodian fees 5,000
- -----------------------------------------------------------
Accrued professional fees 228
- -----------------------------------------------------------
Total liabilities 992,580
===========================================================
Net assets applicable to beneficial interest
outstanding $81,042,705
- -----------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $54,994 foreign
withholding tax) $ 1,308,601
- -----------------------------------------------------------
Interest 327,651
- -----------------------------------------------------------
Securities lending income 35,052
- -----------------------------------------------------------
Total investment income 1,671,304
===========================================================
EXPENSES:
Advisory and administrative fees 634,991
- -----------------------------------------------------------
Custodian fees 41,128
- -----------------------------------------------------------
Printing fees 4,102
- -----------------------------------------------------------
Professional fees 4,438
- -----------------------------------------------------------
Total expenses 684,659
- -----------------------------------------------------------
Less: Fees waived by advisor (94,815)
- -----------------------------------------------------------
Net expenses 589,844
- -----------------------------------------------------------
Net investment income 1,081,460
- -----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES
AND FOREIGN CURRENCY CONTRACTS:
Net realized gain (loss) from:
Investment securities 19,323,357
- -----------------------------------------------------------
Foreign currencies (132,395)
- -----------------------------------------------------------
Foreign currency contracts (336,844)
- -----------------------------------------------------------
18,854,118
- -----------------------------------------------------------
Change in net unrealized appreciation of:
Investment securities 8,598,450
- -----------------------------------------------------------
Foreign currencies (2,573)
- -----------------------------------------------------------
Foreign currency contracts 287,307
- -----------------------------------------------------------
8,883,184
- -----------------------------------------------------------
Net gain from investment securities, foreign
currencies and foreign currency contracts 27,737,302
- -----------------------------------------------------------
Net increase in net assets resulting from
operations $28,818,762
===========================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,081,460 $ 1,596,142
- -----------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies 18,854,118 (702,889)
- -----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies 8,883,184 1,398,601
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 28,818,762 2,291,854
- -----------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS:
Contributions 16,170,032 72,019,286
- -----------------------------------------------------------------------------------------
Withdrawals (50,757,715) (67,746,313)
- -----------------------------------------------------------------------------------------
Net increase (decrease) from beneficial interest
transactions (34,587,683) 4,272,973
- -----------------------------------------------------------------------------------------
Total increase (decrease) in net assets (5,768,921) 6,564,827
- -----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 86,811,626 80,246,799
- -----------------------------------------------------------------------------------------
End of year $81,042,705 $ 86,811,626
=========================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
The Global Financial Services Portfolio (the "Portfolio") is organized as a
Delaware business trust which is registered under the 1940 Act as an open-end
management investment company.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Portfolio in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price on the exchange where
the security is principally traded, or lacking any sales on a particular day,
the security is valued at the closing bid price on that day. Each security
reported on the NASDAQ National Market System is valued at the last sales
price on the valuation date or absent a last sales price, at the closing bid
price. Debt obligations (including convertible bonds) are valued on the basis
of prices provided by an independent pricing service. Prices provided by the
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as yield, type of issue,
coupon rate and maturity date. Securities for which market prices are not
provided by any of the above methods are valued based upon quotes furnished
by independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as determined
in good faith by or under the supervision of the Trust's officers in a manner
specifically authorized by the Board of Trustees. Short-term obligations
having 60 days or less to maturity are valued at amortized cost which
approximates market value. For purposes of determining net asset value per
share, futures and options contracts generally will be valued 15 minutes
after the close of trading of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities are determined as of such times. Foreign currency exchange rates
are also generally determined prior to the close of the NYSE. Occasionally,
events affecting the values of such securities and such exchange rates may
occur between the times at which they are determined and the close of the
NYSE which would not be reflected. 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 Trustees.
B. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis.
C. Federal Income Taxes -- The Portfolio intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
D. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
9
<PAGE>
E. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Portfolio may enter into a foreign currency contract to attempt to
minimize the risk to the Portfolio from adverse changes in the relationship
between currencies. The Portfolio may also enter into a foreign currency
contract for the purchase or sale of a security denominated in a foreign
currency in order to "lock in" the U.S. dollar price of that security. The
Portfolio could be exposed to risk if counterparties to the contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably.
F. Foreign Securities -- There are certain additional considerations and risks
associated with investing in foreign securities and currency transactions
that are not inherent in investments of domestic origin. The Portfolio's
investment in emerging market countries may involve greater risks than
investments in more developed markets and the price of such investments may
be volatile. These risks of investing in foreign and emerging markets may
include foreign currency exchange fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
In addition, the Portfolio's policy of concentrating its investments in
companies in the financial services industry subjects the Portfolio to
greater risk than a fund that is more diversified.
G. Indexed Securities -- The Portfolio may invest in indexed securities whose
value is linked either directly or indirectly to changes in foreign
currencies, interest rates, equities, indices, or other reference
instruments. Indexed securities may be more volatile than the reference
instrument itself, but any loss is limited to the amount of the original
investment.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Portfolio's investment manager and
administrator. The Portfolio pays AIM investment management and administration
fees at an annual rate of 0.725% on the first $500 million of the Portfolio's
average daily net assets, plus 0.70% on the next $500 million of the Portfolio's
average daily net assets, plus 0.675% on the next $500 million of the
Portfolio's average daily net assets, plus 0.65% on the Portfolio's average
daily net assets exceeding $1.5 billion.
NOTE 3-BANK BORROWINGS
The Portfolio is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Portfolio and other funds advised by AIM which are parties to
the line of credit may borrow on a first come, first served basis. During the
year ended October 31, 1999, the Portfolio did not borrow under the line of
credit agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among the funds based on their respective average
net assets for the period. Prior to May 28, 1999, the Portfolio, along with
certain other funds advised and/or administered by AIM, had a line of credit
with BankBoston and State Street Bank & Trust Company. The arrangements with the
banks allowed the Portfolio and certain other funds to borrow, on a first come,
first served basis, an aggregate maximum amount of $250,000,000.
NOTE 4-PORTFOLIO SECURITIES LOANED
At October 31, 1999, securities with an aggregate value of $1,843,403 were on
loan to brokers. The loans were secured by cash collateral of $1,880,271
received by the Portfolio. For the year ended October 31, 1999, the Portfolio
received fees of $35,052 for securities lending. For international securities,
cash collateral is received by the Fund against loaned securities in an amount
at least equal to 105% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 103%
of the market value of the loaned securities during the period of the loan. For
domestic securities, cash collateral is received by the Fund against loaned
securities in the amount at least equal to 102% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 100% of the market value of the loaned securities
during the period of the loan. The cash collateral is invested in a securities
lending trust which consists of a portfolio of high quality short duration
securities whose average effective duration is restricted to 120 days or less.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Portfolio during the year ended October 31, 1999 was
$86,951,106 and $123,914,428, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of October 31, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 18,691,989
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (1,021,422)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 17,670,567
=========================================================
Cost of investments for tax purposes is $64,191,232.
</TABLE>
10
<PAGE>
NOTE 6-SUPPLEMENTAL DATA
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
-----------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $81,043 $86,812 $80,247 $16,473 $9,793
- -------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets 1.23% 1.59% 1.76% 1.90% 2.60%
- -------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets excluding interest
expense:
With expense waivers 0.67% 0.75% 0.77% 0.86% 1.43%
- -------------------------------------------------------------------------------------------------------------
Without expense waivers 0.78% 0.77% 0.84% 0.94% 1.46%
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 107% 111% 91% 103% 170%
=============================================================================================================
</TABLE>
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Financial Services
Portfolio
and Board of Trustees of AIM Investment Funds:
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Financial Services Portfolio - at October 31,
1999, and the results of its operations, the changes in
its net assets and the supplemental data for the periods
indicated, in conformity with generally accepted
accounting principles. These financial statements and
supplemental data (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's
management; our responsibility is to express an opinion
on these financial statements based on our audits. We
conducted our audits of these financial statements in
accordance with generally accepted auditing standards
which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our
audits, which included confirmation of securities at
October 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion
expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 23, 1999
12
<PAGE>
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS & OTHER EQUITY
INTERESTS-48.36%
ALUMINUM-2.53%
Reynolds Metals Co. 15,200 $ 918,650
- -------------------------------------------------------------
CHEMICALS-1.62%
Du Pont (E.I.) de Nemours & Co. 4,669 300,838
- -------------------------------------------------------------
Solutia, Inc. 16,800 288,750
- -------------------------------------------------------------
589,588
- -------------------------------------------------------------
CONTAINERS & PACKAGING (PAPER)-3.18%
Gaylord Container Corp.-Class A(a) 64,500 362,812
- -------------------------------------------------------------
Smurfit-Stone Container Corp.(a) 14,300 309,237
- -------------------------------------------------------------
Temple-Inland, Inc. 8,300 482,437
- -------------------------------------------------------------
1,154,486
- -------------------------------------------------------------
GOLD & PRECIOUS METALS MINING-1.53%
Stillwater Mining Co.(a) 27,550 554,444
- -------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-0.87%
USEC Inc. 34,800 315,375
- -------------------------------------------------------------
METALS MINING-1.04%
Freeport-McMoRan Copper & Gold,
Inc.-Class B(a) 22,700 378,806
- -------------------------------------------------------------
NATURAL GAS-1.43%
Enron Corp. 13,000 519,187
- -------------------------------------------------------------
OIL & GAS (DRILLING & EQUIPMENT)-8.73%
Baker Hughes, Inc. 12,700 354,806
- -------------------------------------------------------------
BJ Services Co.(a) 16,600 569,587
- -------------------------------------------------------------
Cooper Cameron Corp.(a) 10,300 398,481
- -------------------------------------------------------------
ENSCO International, Inc. 29,300 567,688
- -------------------------------------------------------------
Oceaneering International, Inc.(a) 20,500 278,031
- -------------------------------------------------------------
RPC, Inc. 7,200 49,950
- -------------------------------------------------------------
Schlumberger Ltd. 7,500 454,219
- -------------------------------------------------------------
Smith International, Inc.(a) 10,500 362,906
- -------------------------------------------------------------
Veritas DGC, Inc.(a) 9,700 136,406
- -------------------------------------------------------------
3,172,074
- -------------------------------------------------------------
OIL & GAS (EXPLORATION &
PRODUCTION)-9.20%
Apache Corp. 11,700 456,300
- -------------------------------------------------------------
Barrett Resources Corp.(a) 20,600 691,388
- -------------------------------------------------------------
Devon Energy Corp. 19,700 765,838
- -------------------------------------------------------------
Triton Energy Ltd.(a) 33,900 561,469
- -------------------------------------------------------------
Union Pacific Resources Group, Inc. 24,700 358,150
- -------------------------------------------------------------
Vastar Resources, Inc. 8,600 507,938
- -------------------------------------------------------------
3,341,083
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
OIL (DOMESTIC INTEGRATED)-7.29%
Amerada Hess Corp. 8,300 $ 476,213
- -------------------------------------------------------------
Atlantic Richfield Co. 9,000 838,688
- -------------------------------------------------------------
Conoco, Inc.-Class B 28,326 768,343
- -------------------------------------------------------------
USX-Marathon Group 19,400 565,025
- -------------------------------------------------------------
2,648,269
- -------------------------------------------------------------
OIL (INTERNATIONAL INTEGRATED)-4.48%
Chevron Corp. 4,200 383,513
- -------------------------------------------------------------
Exxon Corp. 4,100 303,656
- -------------------------------------------------------------
Mobil Corp. 5,600 540,400
- -------------------------------------------------------------
Texaco, Inc. 6,500 398,938
- -------------------------------------------------------------
1,626,507
- -------------------------------------------------------------
PAPER & FOREST PRODUCTS-6.46%
Boise Cascade Corp. 10,800 384,750
- -------------------------------------------------------------
Georgia-Pacific Group 14,900 591,344
- -------------------------------------------------------------
International Paper Co. 5,200 273,650
- -------------------------------------------------------------
Weyerhaeuser Co. 11,600 692,375
- -------------------------------------------------------------
Willamette Industries, Inc. 9,700 403,156
- -------------------------------------------------------------
2,345,275
- -------------------------------------------------------------
Total Domestic Common Stocks &
Other Equity Interests (Cost
$18,488,926) 17,563,744
- -------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-45.89%
BELGIUM-1.29%
Solvay S.A. (Chemicals-Diversified) 6,100 468,157
- -------------------------------------------------------------
CANADA-20.62%
Alliance Forest Products Inc. (Paper &
Forest Products)(a) 40,200 457,346
- -------------------------------------------------------------
Anderson Exploration Ltd. (Oil &
Gas-Exploration & Production)(a) 42,900 552,166
- -------------------------------------------------------------
Berkley Petroleum Corp. (Oil &
Gas-Exploration & Production)(a) 74,200 655,165
- -------------------------------------------------------------
Cameco Corp. (Metals Mining) 21,400 361,197
- -------------------------------------------------------------
Canadian Occidental Petroleum Ltd.
(Oil & Gas- Exploration &
Production) 23,700 463,601
- -------------------------------------------------------------
Cominco Ltd. (Metals Mining) 59,100 1,043,673
- -------------------------------------------------------------
EdperBrascan Corp.-Class A
(Conglomerates) 27,819 373,175
- -------------------------------------------------------------
Inco Ltd. (Metals Mining)(a) 61,200 1,230,401
- -------------------------------------------------------------
Nexfor Inc. (Paper & Forest Products) 94,100 476,156
- -------------------------------------------------------------
NOVA Chemicals Corp. (Natural Gas) 16,900 332,307
- -------------------------------------------------------------
Placer Dome, Inc. (Gold & Precious
Metals Mining) 29,700 360,113
- -------------------------------------------------------------
Precision Drilling Corp. (Oil &
Gas-Drilling & Equipment)(a) 29,100 674,756
- -------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Suncor Energy, Inc. (Oil-International
Integrated) 13,200 $ 507,451
- -------------------------------------------------------------
7,487,507
- -------------------------------------------------------------
FRANCE-8.53%
Air Liquide S.A. (Chemicals-Specialty) 3,600 554,851
- -------------------------------------------------------------
Total Fina S.A.-ADR (Oil-International
Integrated) 29,823 1,988,826
- -------------------------------------------------------------
Bouygues Offshore S.A. (Oil &
Gas-Drilling & Equipment) 29,200 554,800
- -------------------------------------------------------------
3,098,477
- -------------------------------------------------------------
GERMANY-2.47%
BASF A.G. (Chemicals-Diversified) 9,900 445,254
- -------------------------------------------------------------
Bayer A.G. (Chemicals) 11,000 450,172
- -------------------------------------------------------------
895,426
- -------------------------------------------------------------
IRELAND-1.17%
Jefferson Smurfit Group PLC-ADR
(Containers & Packaging-Paper) 16,500 424,875
- -------------------------------------------------------------
ITALY-2.08%
ENI S.p.A-ADR (Oil-International
Integrated) 12,900 757,875
- -------------------------------------------------------------
NETHERLANDS-2.38%
Royal Dutch Petroleum Co.-New York
Shares-ADR (Oil-International
Integrated) 14,400 863,100
- -------------------------------------------------------------
NORWAY-0.92%
Petroleum Geo-Services ASA-ADR (Oil &
Gas- Drilling & Equipment)(a) 23,000 336,375
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SOUTH KOREA-1.85%
Pohang Iron & Steel Co. Ltd.-ADR (Iron
& Steel) 20,100 $ 670,838
- -------------------------------------------------------------
UNITED KINGDOM-4.58%
Corus Group PLC-ADR (Iron & Steel) 20,700 399,769
- -------------------------------------------------------------
Enterprise Oil PLC (Oil &
Gas-Exploration & Production) 60,000 427,137
- -------------------------------------------------------------
Rio Tinto PLC (Metals Mining) 48,800 835,216
- -------------------------------------------------------------
1,662,122
- -------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$14,792,259) 16,664,752
- -------------------------------------------------------------
MONEY MARKET FUNDS-3.93%
STIC Liquid Assets Portfolio(b) 713,041 713,041
- -------------------------------------------------------------
STIC Prime Portfolio(b) 713,041 713,041
- -------------------------------------------------------------
Total Money Market Funds (Cost
$1,426,082) 1,426,082
- -------------------------------------------------------------
TOTAL INVESTMENTS-98.18% (Cost
$34,707,267) 35,654,578
- -------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-1.82% 661,811
- -------------------------------------------------------------
NET ASSETS-100.00% $36,316,389
- -------------------------------------------------------------
</TABLE>
Investment Abbreviation:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $34,707,267) $ 35,654,578
- -----------------------------------------------------------
Receivables for:
Investments sold 635,103
- -----------------------------------------------------------
Dividends and interest 29,032
- -----------------------------------------------------------
Other assets 23,718
- -----------------------------------------------------------
Total assets 36,342,431
- -----------------------------------------------------------
LIABILITIES FOR:
Accrued advisory fees 22,289
- -----------------------------------------------------------
Accrued custodian fees 3,579
- -----------------------------------------------------------
Accrued operating expenses 174
- -----------------------------------------------------------
Total liabilities 26,042
- -----------------------------------------------------------
Net assets applicable to beneficial interest
outstanding $ 36,316,389
- -----------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $48,123 foreign
withholding tax) $ 872,986
- -----------------------------------------------------------
Interest 97,061
- -----------------------------------------------------------
Securities lending income 20,468
- -----------------------------------------------------------
Total investment income 990,515
- -----------------------------------------------------------
EXPENSES:
Advisory and administrative fees 326,455
- -----------------------------------------------------------
Custodian fees 13,295
- -----------------------------------------------------------
Printing fees 2,993
- -----------------------------------------------------------
Professional fees 920
- -----------------------------------------------------------
Total expenses 343,663
- -----------------------------------------------------------
Less: Fees waived by advisor (111,410)
- -----------------------------------------------------------
Net expenses 232,253
- -----------------------------------------------------------
Net investment income 758,262
- -----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment securities (1,213,755)
- -----------------------------------------------------------
Foreign currencies 3,341
- -----------------------------------------------------------
(1,210,414)
- -----------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
- -----------------------------------------------------------
Investment securities 5,873,628
- -----------------------------------------------------------
Foreign currencies (113)
- -----------------------------------------------------------
5,873,515
- -----------------------------------------------------------
Net gain from investment securities and
foreign currencies 4,663,101
- -----------------------------------------------------------
Net increase in net assets resulting from
operations $ 5,421,363
- -----------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------------ -------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 758,262 $ 435,340
- ------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies (1,210,414) (21,878,975)
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investment
securities and foreign currencies 5,873,515 (39,191,661)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 5,421,363 (60,635,296)
- ------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS:
Contributions 14,462,412 118,621,006
- ------------------------------------------------------------------------------------------
Withdrawals (36,097,384) (176,486,911)
- ------------------------------------------------------------------------------------------
Net decrease from beneficial interest transactions (21,634,972) (57,865,905)
- ------------------------------------------------------------------------------------------
Total decrease in net assets (16,213,609) (118,501,201)
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 52,529,998 171,031,199
- ------------------------------------------------------------------------------------------
End of year $ 36,316,389 $ 52,529,998
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
The Resources Portfolio (the "Portfolio") is organized as a Delaware business
trust which is registered under the 1940 Act as an open-end management
investment company.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Portfolio in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price on the exchange where
the security is principally traded, or lacking any sales on a particular day,
the security is valued at the closing bid price on that day. Each security
reported on the NASDAQ National Market System is valued at the last sales
price on the valuation date or absent a last sales price, at the closing bid
price. Debt obligations (including convertible bonds) are valued on the basis
of prices provided by an independent pricing service. Prices provided by the
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as yield, type of issue,
coupon rate and maturity date. Securities for which market prices are not
provided by any of the above methods are valued based upon quotes furnished
by independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as determined
in good faith by or under the supervision of the Trust's officers in a manner
specifically authorized by the Board of Trustees. Short-term obligations
having 60 days or less to maturity are valued at amortized cost which
approximates market value. For purposes of determining net asset value per
share, futures and options contracts generally will be valued 15 minutes
after the close of trading of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities are determined as of such times. Foreign currency exchange rates
are also generally determined prior to the close of the NYSE. Occasionally,
events affecting the values of such securities and such exchange rates may
occur between the times at which they are determined and the close of the
NYSE which would not be reflected. 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 Trustees.
B. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis.
C. Federal Income Taxes -- The Portfolio intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
D. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Portfolio
does not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
E. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Portfolio may enter into a foreign currency contract to attempt to
minimize the risk to the Portfolio from adverse changes in the relationship
between currencies. The Portfolio may also enter into a foreign currency
contract for the purchase or sale of a security denominated in a foreign
currency in order to "lock in" the U.S. dollar price of that security. The
Portfolio could be exposed to risk if counterparties to the contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably.
F. Foreign Securities -- There are certain additional considerations and risks
associated with investing in foreign securities and currency transactions
that are not inherent in investments of domestic origin. The Portfolio's
investment in emerging market countries may involve greater risks than
investments in more developed markets and the price of such investments may
be volatile. These risks of investing in foreign and emerging markets may
include foreign currency exchange fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
In addition, the Portfolio's policy of concentrating its investments in
companies in the natural resources industry subjects the Portfolio to greater
risk than a fund that is more diversified.
10
<PAGE>
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Portfolio's investment manager and
administrator. INVESCO Asset Management Limited is the Portfolio's subadvisor.
The Portfolio pays AIM investment management and administration fees at an
annual rate of 0.725% on the first $500 million of the Portfolio's average daily
net assets, plus 0.70% on the next $500 million of the Portfolio's average daily
net assets, plus 0.675% on the next $500 million of the Portfolio's average
daily net assets, plus 0.65% on the Portfolio's average daily net assets
exceeding $1.5 billion.
NOTE 3-BANK BORROWINGS
The Portfolio is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Portfolio and other funds advised by AIM which are parties to
the line of credit may borrow on a first come, first served basis. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period. Prior to
May 28, 1999, the Portfolio, along with certain other funds advised and/or
administered by AIM, had a line of credit with BankBoston and State Street Bank
& Trust Company. The arrangements with the banks allowed the Portfolio and
certain other funds to borrow, on a first come, first served basis, an aggregate
maximum amount of $250,000,000.
During the year ended October 31, 1999, the average outstanding daily balance
of bank loans for the Portfolio was $2,101 with a weighted average interest rate
of 5.5%. Interest expense for the Portfolio for the year ended October 31, 1999
was $116.
NOTE 4-PORTFOLIO SECURITIES LOANED
At October 31, 1999, securities with an aggregate value of $2,312,119 were on
loan to brokers. The loans were secured by cash collateral of $2,358,361
received by the Portfolio. For the year ended October 31, 1999, the Portfolio
received fees of $20,468 for securities lending.
For international securities, cash collateral is received by the Fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Fund against loaned securities in the amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. The cash collateral is
invested in a securities lending trust which consists of a portfolio of high
quality short duration securities whose average effective duration is restricted
to 120 days or less.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Portfolio during the year ended October 31, 1999 was
$54,131,709 and $75,745,779, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of October 31, 1999 is as follows:
<TABLE>
<S> <C> <C>
Aggregate unrealized appreciation of
investment securities $ 3,714,231
- -----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (2,798,328)
- -----------------------------------------------------------
Net unrealized appreciation of investment
securities $ 915,903
- -----------------------------------------------------------
Cost of investments for tax purposes is
$34,738,675
</TABLE>
11
<PAGE>
NOTE 6-SUPPLEMENTAL DATA
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
-------------------------------------------------
1999 1998 1997 1996 1995
------- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $36,316 $52,530 $171,031 $112,049 $26,760
- ---------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average net assets 1.70% 0.47% (0.09)% (0.07)% 1.88%
- ---------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets excluding interest
expense:
With expense waivers 0.52% 0.77% 0.72% 0.73% 0.93%
- ---------------------------------------------------------------------------------------------------------------
Without expense waivers 0.77% 0.84% 0.82% 0.83% 0.96%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 201% 321% 94% 87%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Resources Portfolio
and Board of Trustees of AIM Investment Funds:
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Resources Portfolio -- at October 31, 1999,
and the results of its operations, the changes in its net
assets and the supplemental data for the periods
indicated, in conformity with generally accepted
accounting principles. These financial statements and
supplemental data (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's
management; our responsibility is to express an opinion
on these financial statements based on our audits. We
conducted our audits of these financial statements in
accordance with generally accepted auditing standards
which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our
audits, which included confirmation of securities at
October 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion
expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 23, 1999
13
<PAGE>
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS & OTHER EQUITY
INTERESTS-46.70%
AEROSPACE/DEFENSE-3.25%
General Dynamics Corp. 26,494 $ 1,468,761
- -------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-5.62%
Aether Systems, Inc.(a) 5,200 361,725
- -------------------------------------------------------------
Juniper Networks, Inc.(a) 1,500 413,437
- -------------------------------------------------------------
Lucent Technologies Inc. 9,700 623,225
- -------------------------------------------------------------
Sycamore Networks, Inc.(a) 800 172,000
- -------------------------------------------------------------
Tellabs, Inc.(a) 11,270 712,827
- -------------------------------------------------------------
Williams Communications Group, Inc.(a) 8,200 261,375
- -------------------------------------------------------------
2,544,589
- -------------------------------------------------------------
COMPUTERS (NETWORKING)-3.64%
Cisco Systems, Inc.(a) 17,684 1,308,616
- -------------------------------------------------------------
Foundry Networks, Inc.(a) 1,800 341,100
- -------------------------------------------------------------
1,649,716
- -------------------------------------------------------------
ELECTRIC COMPANIES-7.69%
Calpine Capital Trust-$2.88 Conv. Pfd. 6,200 365,800
- -------------------------------------------------------------
Dominion Resources, Inc. 18,700 899,937
- -------------------------------------------------------------
FPL Group, Inc. 12,700 638,969
- -------------------------------------------------------------
Montana Power Co. 19,400 551,687
- -------------------------------------------------------------
Pinnacle West Capital Corp. 13,700 505,187
- -------------------------------------------------------------
Texas Utilities Co. 13,400 519,250
- -------------------------------------------------------------
3,480,830
- -------------------------------------------------------------
MACHINERY (DIVERSIFIED)-1.81%
Ingersoll-Rand Co. 15,700 820,325
- -------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.76%
United Technologies Corp. 13,200 798,600
- -------------------------------------------------------------
NATURAL GAS-4.78%
El Paso Energy Corp. 8,100 332,100
- -------------------------------------------------------------
Enron Corp. 45,800 1,829,138
- -------------------------------------------------------------
2,161,238
- -------------------------------------------------------------
POWER PRODUCERS (INDEPENDENT)-1.87%
AES Corp.(a) 14,988 845,885
- -------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-0.32%
Navigant Consulting, Inc.(a) 5,000 142,813
- -------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.45%
Clarent Corp.(a) 6,900 654,638
- -------------------------------------------------------------
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-3.16%
Phone.com, Inc.(a) 4,800 986,400
- -------------------------------------------------------------
Triton PCS Holdings, Inc.-Class A(a) 9,600 338,400
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-(CONTINUED)
Western Wireless Corp.-Class A(a) 2,000 $ 105,750
- -------------------------------------------------------------
1,430,550
- -------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-5.26%
AT&T Corp. 14,242 665,814
- -------------------------------------------------------------
MCI WorldCom, Inc.(a) 20,000 1,716,250
- -------------------------------------------------------------
2,382,064
- -------------------------------------------------------------
TELEPHONE-6.09%
Bell Atlantic Corp. 19,700 1,279,269
- -------------------------------------------------------------
SBC Communications, Inc. 29,000 1,477,188
- -------------------------------------------------------------
2,756,457
- -------------------------------------------------------------
Total Domestic Common Stocks &
Other Equity Interests (Cost
$13,486,635) 21,136,466
- -------------------------------------------------------------
FOREIGN STOCKS-48.96%
CANADA-1.72%
Canadian National Railway Co.
(Railroads) 25,600 776,364
- -------------------------------------------------------------
FINLAND-5.59%
Nokia Oyj-ADR (Communications
Equipment) 20,000 2,311,250
- -------------------------------------------------------------
Sonera Oyj
(Telecommunications-Cellular/Wireless) 7,350 220,765
- -------------------------------------------------------------
2,532,015
- -------------------------------------------------------------
FRANCE-4.22%
Suez Lyonnaise des Eaux S.A.
(Manufacturing- Diversified) 3,650 589,437
- -------------------------------------------------------------
Vivendi (Consumer Services) 17,400 1,318,924
- -------------------------------------------------------------
1,908,361
- -------------------------------------------------------------
GERMANY-5.30%
Mannesmann A.G.
(Machinery-Diversified) 12,800 2,013,203
- -------------------------------------------------------------
Viag A.G. (Manufacturing-Diversified) 20,800 384,040
- -------------------------------------------------------------
2,397,243
- -------------------------------------------------------------
IRELAND-2.40%
CRH PLC (Construction-Cement &
Aggregates) 38,000 717,603
- -------------------------------------------------------------
Esat Telecom Group PLC-ADR
(Telecommunications-Long
Distance)(a) 8,200 366,950
- -------------------------------------------------------------
1,084,553
- -------------------------------------------------------------
ISRAEL-0.44%
Partner Communications Co. Ltd.-ADR
(Telecommunications-
Cellular/Wireless)(a) 12,700 200,025
- -------------------------------------------------------------
ITALY-3.16%
ACEA S.p.A. (Water Utilities)(a) 72,800 810,314
- -------------------------------------------------------------
Telecom Italia S.p.A. (Telephone) 126,300 620,521
- -------------------------------------------------------------
1,430,835
- -------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-3.66%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) 30 $ 460,410
- -------------------------------------------------------------
NTT Mobile Communications Network,
Inc.
(Telecommunications-Cellular/Wireless) 45 1,195,626
- -------------------------------------------------------------
1,656,036
- -------------------------------------------------------------
MEXICO-0.11%
Nuevo Grupo Iusacell S.A. de C.V.-ADR
(Telecommunications-Cellular/Wireless) 4,300 51,062
- -------------------------------------------------------------
NETHERLANDS-3.06%
Equant N.V. (Computers-Networking)(a) 8,980 871,060
- -------------------------------------------------------------
Libertel N.V.
(Telecommunications-Cellular/
Wireless)(a) 9,750 184,635
- -------------------------------------------------------------
Versatel Telecom International N.V.
(Telecommunications-Long
Distance)(a) 26,500 328,976
- -------------------------------------------------------------
1,384,671
- -------------------------------------------------------------
PORTUGAL-0.77%
Brisa-Auto Estradas de Portugal, S.A.
(Engineering & Construction) 8,900 350,654
- -------------------------------------------------------------
SOUTH KOREA-3.33%
Korea Electric Power Corp.-ADR
(Electric Companies) 29,500 464,625
- -------------------------------------------------------------
Pohang Iron & Steel Co. Ltd.-ADR (Iron
& Steel) 31,200 1,041,300
- -------------------------------------------------------------
1,505,925
- -------------------------------------------------------------
SPAIN-3.33%
Endesa S.A.-ADR (Electric Companies) 39,600 789,525
- -------------------------------------------------------------
Sogciable S.A. (Electric Companies)(a) 10,100 277,968
- -------------------------------------------------------------
Union Electrica Fenosa, S.A. (Electric
Companies) 30,000 439,020
- -------------------------------------------------------------
1,506,513
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-11.87%
BG PLC (Oil & Gas-Exploration &
Production) 104,100 $ 578,062
- -------------------------------------------------------------
eircom PLC (Telecommunication-Long
Distance)(a) 282,900 1,180,083
- -------------------------------------------------------------
General Electric Co. PLC
(Manufacturing- Diversified) 63,700 692,783
- -------------------------------------------------------------
Hanson PLC-ADR
(Manufacturing-Diversified) 16,000 619,000
- -------------------------------------------------------------
National Grid Group PLC (Electric
Companies) 95,060 710,330
- -------------------------------------------------------------
Vodafone AirTouch PLC
(Telecommunications-Cellular/Wireless) 159,145 740,470
- -------------------------------------------------------------
Vodafone AirTouch PLC-ADR
(Telecommunications-
Cellular/Wireless) 17,750 850,891
- -------------------------------------------------------------
5,371,619
- -------------------------------------------------------------
Total Foreign Stocks (Cost
$13,333,929) 22,155,876
- -------------------------------------------------------------
MONEY MARKET FUNDS-3.98%
STIC Liquid Assets Portfolio(b) 899,465 899,465
- -------------------------------------------------------------
STIC Prime Portfolio(b) 899,465 899,465
- -------------------------------------------------------------
Total Money Market Funds (Cost
$1,798,930) 1,798,930
- -------------------------------------------------------------
TOTAL INVESTMENTS-99.64% (Cost
$28,619,494) 45,091,272
- -------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.36% 164,536
- -------------------------------------------------------------
NET ASSETS-100.00% $45,255,808
=============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Pfd. - Preferred
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) The money market fund shares the same investment advisor as the Fund.
See Notes to Financial Statements.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $28,619,494) $45,091,272
- -----------------------------------------------------------
Foreign currencies, at value (cost $147) 149
- -----------------------------------------------------------
Receivables for:
Investments sold 782,960
- -----------------------------------------------------------
Dividends and interest 97,266
- -----------------------------------------------------------
Other assets 1,184
- -----------------------------------------------------------
Total assets 45,972,831
===========================================================
LIABILITIES FOR:
Payable for investments purchased 654,250
- -----------------------------------------------------------
Accrued advisory fees 57,360
- -----------------------------------------------------------
Accrued custodian fees 5,220
- -----------------------------------------------------------
Accrued professional fees 193
- -----------------------------------------------------------
Total liabilities 717,023
- -----------------------------------------------------------
Net assets applicable to beneficial interest
outstanding $45,255,808
===========================================================
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $56,941 foreign
withholding tax) $ 945,552
- -----------------------------------------------------------
Interest 189,760
- -----------------------------------------------------------
Securities lending income 24,031
- -----------------------------------------------------------
Total investment income 1,159,343
===========================================================
EXPENSES:
Advisory and administrative fees 403,447
- -----------------------------------------------------------
Custodian fees 22,495
- -----------------------------------------------------------
Printing fees 2,963
- -----------------------------------------------------------
Professional fees 5,219
- -----------------------------------------------------------
Total expenses 434,124
- -----------------------------------------------------------
Less: Fees waived by advisor (123,428)
- -----------------------------------------------------------
Net expenses 310,696
- -----------------------------------------------------------
Net investment income 848,647
- -----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES
AND FOREIGN CURRENCY CONTRACTS:
Net realized gain (loss) from:
Investment securities 5,973,179
- -----------------------------------------------------------
Foreign currencies (57,640)
- -----------------------------------------------------------
Foreign currency contracts (354,571)
- -----------------------------------------------------------
5,560,968
- -----------------------------------------------------------
Change in net unrealized appreciation of:
- -----------------------------------------------------------
Investment securities 5,616,936
- -----------------------------------------------------------
Foreign currencies 21,529
- -----------------------------------------------------------
Foreign currency contracts 354,572
- -----------------------------------------------------------
5,993,037
- -----------------------------------------------------------
Net gain from investment securities, foreign
currencies and foreign currency contracts 11,554,005
- -----------------------------------------------------------
Net increase in net assets resulting from
operations $12,402,652
===========================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 848,647 $ 1,453,883
- -----------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and foreign currency contracts 5,560,968 4,856,101
- -----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities, foreign currencies and foreign
currency contracts 5,993,037 (8,253,926)
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 12,402,652 (1,943,942)
- -----------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS:
Contributions 1,873,193 1,825,124
- -----------------------------------------------------------------------------------------
Withdrawals (32,386,145) (35,090,285)
- -----------------------------------------------------------------------------------------
Net increase (decrease) from beneficial interest
transactions (30,512,952) (33,265,161)
- -----------------------------------------------------------------------------------------
Total increase (decrease) in net assets (18,110,300) (35,209,103)
- -----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 63,366,108 98,575,211
- -----------------------------------------------------------------------------------------
End of year $45,255,808 $ 63,366,108
=========================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
The Global Infrastructure Portfolio (the "Portfolio") is organized as a Delaware
business trust which is registered under the 1940 Act as an open-end management
investment company.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Portfolio in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price on the exchange where
the security is principally traded, or lacking any sales on a particular day,
the security is valued at the closing bid price on that day. Each security
reported on the NASDAQ National Market System is valued at the last sales
price on the valuation date or absent a last sales price, at the closing bid
price. Debt obligations (including convertible bonds) are valued on the basis
of prices provided by an independent pricing service. Prices provided by the
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as yield, type of issue,
coupon rate and maturity date. Securities for which market prices are not
provided by any of the above methods are valued based upon quotes furnished
by independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as determined
in good faith by or under the supervision of the Trust's officers in a manner
specifically authorized by the Board of Trustees. Short-term obligations
having 60 days or less to maturity are valued at amortized cost which
approximates market value. For purposes of determining net asset value per
share, futures and options contracts generally will be valued 15 minutes
after the close of trading of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each day
at various times prior to the close of the NYSE. The values of such
securities are determined as of such times. Foreign currency exchange rates
are also generally determined prior to the close of the NYSE. Occasionally,
events affecting the values of such securities and such exchange rates may
occur between the times at which they are determined and the close of the
NYSE which would not be reflected. 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 Trustees.
B. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis.
C. Federal Income Taxes -- The Portfolio intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
D. Futures Contracts -- The Portfolio may purchase or sell futures contracts as
a hedge against changes in market conditions. Initial margin deposits
required upon entering into futures contracts are satisfied by the
segregation of specific securities as collateral for the account of the
broker (the Portfolio'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 Portfolio recognizes a realized gain or loss equal to the
difference between the proceeds from, or cost of, the closing transaction and
the Portfolio's basis in the contract. Risks include the possibility of an
illiquid market and that a change in value of the contracts may not correlate
with changes in the value of the securities being hedged.
9
<PAGE>
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Portfolio
does not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Portfolio may enter into a foreign currency contract to attempt to
minimize the risk to the Portfolio from adverse changes in the relationship
between currencies. The Portfolio may also enter into a foreign currency
contract for the purchase or sale of a security denominated in a foreign
currency in order to "lock in" the U.S. dollar price of that security. The
Portfolio could be exposed to risk if counterparties to the contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably.
G. Foreign Securities -- There are certain additional considerations and risks
associated with investing in foreign securities and currency transactions
that are not inherent in investments of domestic origin. The Portfolio's
investment in emerging market countries may involve greater risks than
investments in more developed markets and the price of such investments may
be volatile. These risks of investing in foreign and emerging markets may
include foreign currency exchange fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
In addition, the Portfolio's policy of concentrating its investments in
companies in the infrastructure industry subjects the Portfolio to greater
risk than a fund that is more diversified.
H. Indexed Securities -- The Portfolio may invest in indexed securities whose
value is linked either directly or indirectly to changes in foreign
currencies, interest rates, equities, indices, or other reference
instruments. Indexed securities may be more volatile than the reference
instrument itself, but any loss is limited to the amount of the original
investment.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Portfolio's investment manager and
administrator. The Portfolio pays AIM investment management and administration
fees at an annual rate of 0.725% on the first $500 million of the Portfolio's
average daily net assets, plus 0.70% on the next $500 million of the Portfolio's
average daily net assets, plus 0.675% on the next $500 million of the
Portfolio's average daily net assets, plus 0.65% on the Portfolio's average
daily net assets exceeding $1.5 billion.
NOTE 3-BANK BORROWINGS
The Portfolio is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Portfolio may borrow up
to the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Portfolio and other funds advised by AIM which are parties to
the line of credit may borrow on a first come, first served basis. During the
year ended October 31, 1999, the Portfolio did not borrow under the line of
credit agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among the funds based on their respective average
net assets for the period. Prior to May 28, 1999, the Portfolio, along with
certain other funds advised and/or administered by AIM, had a line of credit
with BankBoston and State Street Bank & Trust Company. The arrangements with the
banks allowed the Portfolio and certain other funds to borrow, on a first come,
first served basis, an aggregate maximum amount of $250,000,000.
NOTE 4-PORTFOLIO SECURITIES LOANED
At October 31, 1999, securities with an aggregate value of $1,699,825 were on
loan to brokers. The loans were secured by cash collateral of $1,733,821
received by the Portfolio. For the year ended October 31, 1999, the Portfolio
received fees of $24,031 for securities lending.
For international securities, cash collateral is received by the Fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Fund against loaned securities in the amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. The cash collateral is
invested in a securities lending trust which consists of a portfolio of high
quality short duration securities whose average effective duration is restricted
to 120 days or less.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold by the Portfolio during the year ended October
31, 1999 was $25,277,982 and $50,642,469, respectively. The amount of unrealized
10
<PAGE>
appreciation (depreciation) of investment securities, for tax purposes, as of
October 31, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 17,098,924
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (627,146)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 16,471,778
=========================================================
Investments have the same cost for the tax and financial
statement purposes.
</TABLE>
NOTE 6-SUPPLEMENTAL DATA
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
-----------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $45,256 $63,366 $98,575 $92,025 $86,010
- -------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets 1.53% 1.72% 1.22% 1.21% 1.22%
- -------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets excluding interest
expense:
With expense waivers 0.56% 0.78% 0.69% 0.74% 0.83%
- -------------------------------------------------------------------------------------------------------------
Without expense waivers 0.79% 0.79% 0.77% 0.85% 0.88%
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 49% 96% 41% 41% 45%
=============================================================================================================
</TABLE>
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Infrastructure
Portfolio and Board of Trustees of AIM Investment Funds
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Infrastructure Portfolio at October 31, 1999,
and the results of its operations, the changes in its net
assets and the supplemental data for the periods
indicated, in conformity with generally accepted
accounting principles. These financial statements and
supplemental data (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's
management; our responsibility is to express an opinion
on these financial statements based on our audits. We
conducted our audits of these financial statements in
accordance with generally accepted auditing standards
which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our
audits, which included confirmation of securities at
October 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion
expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 23, 1999
12
<PAGE>
PART C: OTHER INFORMATION
GLOBAL INVESTMENT PORTFOLIO
ITEM 23. EXHIBITS.
Exhibit
NUMBER DESCRIPTION
(a) - Agreement and Declaration of Trust of Registrant, dated May 7, 1998,
was filed electronically as an Exhibit to Amendment No. 7 to the
Registration Statement on Form N-1A, on February 26, 1999, and is
hereby incorporated by reference.
(b) (1) - By-Laws of Registrant was filed electronically as an Exhibit to
Amendment No. 7 to the Registration Statement on Form N-1A, on
February 26, 1999, and is hereby incorporated by reference.
(2) - Amended and Restated By-Laws of Registrant was filed
electronically as an Exhibit to Amendment No. 7 to the Registration
Statement on Form N-1A, on February 26, 1999, and is hereby
incorporated by reference.
(3) Amendment to Amended and Restated By-Laws of Registrant, adopted
June 15, 1999, is filed herewith electronically.
(c) - Provisions of instruments defining the rights of holders of
Registrant's securities are contained in the Agreement and
Declaration of Trust, as amended, Articles II, VI, VII, VIII and IX
and By-Laws Articles IV, V, VI, VII and VIII, which were included as
part of Exhibits (a)(1) and (b) to Amendment No. 7 to the
Registration Statement on Form N-1A, on February 26, 1999, and are
hereby incorporated by reference.
(d) - Investment Management and Administration Contract, dated May 29,
1998, between Registrant and A I M Advisors, Inc. was filed as an
Exhibit to Amendment No. 6 to the Registration Statement on Form
N-1A, on June 23, 1998, and is hereby incorporated by reference.
(e) - Underwriting Contracts - None.
(f) - Bonus or Profit Sharing Contracts - None.
(g) - Amendment to Custodian Contract, dated January 26, 1999, was filed
electronically as an Exhibit to Amendment No. 7 to the Registration
Statement on Form N-1A, on February 26, 1999, and is hereby
incorporated by reference.
(h) - Other Material Contracts - None.
(i) - Legal Opinion - None.
C-1
<PAGE>
(j) - Consent of PricewaterhouseCoopers LLP, independent auditors, is
filed herewith electronically.
(k) - Omitted Financial Statements - None.
(l) - Initial Capitalization Agreements - None.
(m) - Rule 12b-1 Plan - None.
(n) - Financial Data Schedules - None.
(o) - Rule 18f-3 Plan - None.
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE FUND.
Provide a list or diagram of all persons directly or indirectly controlled
by or under common control with the Fund. For any person controlled by another
person, disclose the percentage of voting securities owned by the immediately
controlling person or other basis of that person's control. For each company,
also provide the state or other sovereign power under the laws of which the
company is organized.
None.
ITEM 25. INDEMNIFICATION.
State the general effect of any contract, arrangements or statute under
which any director, officer, underwriter or affiliated person of the fund is
insured or indemnified against any liability incurred in their official
capacity, other than insurance provided by any director, officer, affiliated
person, or underwriter for their own protection.
Article VIII of the Registrant's Agreement and Declaration of Trust, as
amended, provides for indemnification of certain persons acting on behalf
of the Registrant. Article VIII, Section 8.1 provides that a Trustee, when
acting in such capacity, shall not be personally liable to any person for
any act, omission, or obligation of the Registrant or any Trustee;
provided, however, that nothing contained in the Registrant's Agreement and
Declaration of Trust or in the Delaware Business Trust Act shall protect
any Trustee against any liability to the Registrant or the Shareholders to
which he would otherwise be subject by reason of willful misfeasance, bad
faith, gross negligence, or reckless disregard of the duties involved in
the conduct of the office of Trustee.
Article VIII, Section 3 of the Registrant's By-Laws also provides that
every person who is, or has been, a Trustee or Officer of the Registrant to
the fullest extent permitted by the Delaware Business Trust Act, the
Registrant's By-Laws and other applicable law.
C-2
<PAGE>
Section 9 of the Investment Management and Administration Contract between
the Registrant and AIM provides that AIM shall not be liable, and each
series of the Registrant shall indemnify AIM and its directors, officers
and employees, for any costs or liabilities arising from any error of
judgment or mistake of law or any loss suffered by any series of the
Registrant or the Registrant in connection with the matters to which the
Investment Management and Administration Contract relates except a loss
resulting from willful misfeasance, bad faith or gross negligence on the
part of AIM in the performance by AIM of its duties or from reckless
disregard by AIM of its obligations and duties under the Investment
Management and Administration Contract.
ITEM 26. BUSINESS AND OTHER CONNECTIONS OF THE INVESTMENT ADVISOR.
Describe any other business, profession, vocation or employment of a
substantial nature that each investment advisor, and each director, officer or
partner of the advisor, is or has been engaged within the last two fiscal years
for his or her own account or in the capacity of director, officer, employee,
partner, or trustee.
See the material under the headings "Trustees and Executive Officers" and
"Management" included in Part B (Statement of Additional Information) of
this Amendment. Information as to the Directors and Officers of A I M
Advisors, Inc. is included in Schedule A and Schedule D of Part I of the
entity's Form ADV (File No. 801-12313), filed with the Securities and
Exchange Commission, which is incorporated herein by reference thereto.
ITEM 27. PRINCIPAL UNDERWRITERS.
None.
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS.
State the name and address of each person maintaining physical possessions
of each account, book, or other document required to be maintained by section
31(a) [15 u.s.c. 80a-30(a)] and the rules under that section.
Accounts, books and other records required by Rules 31a-1 and 31a-2 under
the Investment Company Act of 1940, as amended, are maintained and held in
the offices of the Registrant and its advisor A I M Advisors, Inc., 11
Greenway Plaza, Suite 100, Houston, Texas 77046, and its custodian, State
Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts
02110.
ITEM 29. MANAGEMENT SERVICES.
Provide a summary of the substantive provisions of any management-related
service contract not discussed in part A or B, disclosing the parties to the
C-3
<PAGE>
contract and the total amount paid and by whom for the fund's last three fiscal
years.
None.
ITEM 30. UNDERTAKINGS.
None.
C-4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Investment Company Act of 1940, the
Global Investment Portfolio has duly caused this Registration Statement on Form
N-1A to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Houston and the State Texas on the 28th day of February, 2000.
GLOBAL INVESTMENT PORTFOLIO
By: /s/ Robert H. Graham
--------------------
Robert H. Graham, President
SIGNATURES TITLE DATE
---------- ----- ----
/s/ Robert H. Graham Chairman, Trustee & February 28, 2000
- -------------------- President (Principal
(Robert H. Graham) Executive Officer)
/s/ C. Derek Anderson Trustee February 28, 2000
- ---------------------
(C. Derek Anderson)
/s/ Frank S. Bayley Trustee February 28, 2000
- -------------------
(Frank S. Bayley)
/s/ Ruth H. Quigley Trustee February 28, 2000
- -------------------
(Ruth H. Quigley)
/s/ Dana R. Sutton Vice President & Treasurer February 28, 2000
- ------------------ (Principal Financial and
(Dana R. Sutton) Accounting Officer)
<PAGE>
INDEX TO EXHIBITS
GLOBAL INVESTMENT PORTFOLIO
EXHIBIT NUMBER
(b)(3) Amendment to Amended and Restated Bylaws
(j) Consent of PricewaterhouseCoopers LLP, independent auditors
FIRST AMENDMENT TO AMENDED AND RESTATED
BYLAWS OF GLOBAL INVESTMENT PORTFOLIO
(A DELAWARE BUSINESS TRUST)
ADOPTED JUNE 15, 1999
The Bylaws of Global Investment Portfolio are hereby amended as follows:
WHEREAS, the Board of Trustees of the Fund desires to modify the manner in
which a chairman is appointed to preside at each shareholder meeting;
NOW THEREFORE BE IT RESOLVED, that paragraph (a) of Article IV, Section 9
of each Fund's Bylaws be, and it hereby is, amended by deleting paragraph
(a) of Article IV, Section 9 in its entirety and replacing it with the
following:
Section 9. Organization of Meetings.
(a) The meetings of the Holders shall be presided over
by the Chairman of the Board, or if the Chairman shall not be
present or if there is no Chairman, by the President, or if the
President shall not be present, by a Vice President, or if no Vice
President is present, by a chairman appointed for such purpose by
the Board of Trustees or, if not so appointed, by a chairman
appointed for such purpose by the officers and Trustees present at
the meeting. The Secretary of the Trust, if present, shall act as
Secretary of such meetings, or if the Secretary is not present, an
Assistant Secretary of the Trust shall so act, and if no Assistant
Secretary is present, then a person designated by the Secretary of
the Trust shall so act, and if the Secretary has not designated a
person, then the meeting shall elect a secretary for the meeting.
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Global Investment Portfolio:
RE: Global Investment Portfolio:
Global Financial Services Portfolio
Global Infrastructure Portfolio
Global Resources Portfolio
Global Consumer Products and Services Portfolio
(the "Portfolio")
AIM Global Financial Services Fund
AIM Global Infrastructure Fund
AIM Global Resources Fund
AIM Global Consumer Products and Services Fund
(the "Funds")
We consent to the inclusion in Amendment No. 9 to the Registration Statement on
Form N-1A, under the Investment Company Act of 1940, as amended, of Global
Investment Portfolio (the "Portfolio"), of our reports dated December 23, 1999,
on our audits of the financial statements and financial highlights of the Funds,
which reports are included in the Annual Report to Shareholders for the periods
stated therein, which are also included in this Registration Statement. We also
consent to the reference to our Firm under the caption "Financial Statements" in
the statement of additional information.
/s/ Pricewaterhouse Coopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 28, 2000
