-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SdX2SVRQe6WBkM18CUzHNOTgojkjCwRSh5VWJloyQBBa4igJbFmqBmC97PccBYHs +VT1lcwbis0+PU6G/ynCjg== 0000950129-08-001347.txt : 20080229 0000950129-08-001347.hdr.sgml : 20080229 20080229100131 ACCESSION NUMBER: 0000950129-08-001347 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071231 FILED AS OF DATE: 20080229 DATE AS OF CHANGE: 20080229 EFFECTIVENESS DATE: 20080229 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIM SECTOR FUNDS CENTRAL INDEX KEY: 0000725781 IRS NUMBER: 840933032 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03826 FILM NUMBER: 08653131 BUSINESS ADDRESS: STREET 1: 11 GREENWAY PLAZA STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77046 BUSINESS PHONE: 713-626-1919 MAIL ADDRESS: STREET 1: 11 GREENWAY PLAZA STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: AIM SECTOR FUNDS INC DATE OF NAME CHANGE: 20031001 FORMER COMPANY: FORMER CONFORMED NAME: INVESCO SECTOR FUNDS INC DATE OF NAME CHANGE: 19990330 FORMER COMPANY: FORMER CONFORMED NAME: INVESCO STRATEGIC PORTFOLIOS INC DATE OF NAME CHANGE: 19940107 0000725781 S000000155 AIM Energy Fund C000000337 Class A IENAX C000000338 Class B IENBX C000000339 Class C IEFCX C000000341 Investor Class FSTEX C000023157 Institutional Class IENIX 0000725781 S000000156 AIM Financial Services Fund C000000342 Class A IFSAX C000000343 Class B IFSBX C000000344 Class C IFSCX C000000346 Investor Class FSFSX 0000725781 S000000157 AIM Gold & Precious Metals Fund C000000347 Class A IGDAX C000000348 Class B IGDBX C000000349 Class C IGDCX C000000350 Investor Class FGLDX 0000725781 S000000159 AIM Leisure Fund C000000356 Class A ILSAX C000000357 Class B ILSBX C000000358 Class C IVLCX C000000360 Investor Class FLISX C000029687 Class R ILSRX 0000725781 S000000160 AIM Technology Fund C000000361 Class A ITYAX C000000362 Class B ITYBX C000000363 Class C ITHCX C000000365 Investor Class FTCHX C000023158 Institutional Class FTPIX 0000725781 S000000161 AIM Utilities Fund C000000366 Class A IAUTX C000000367 Class B IBUTX C000000368 Class C IUTCX C000000369 Investor Class FSTUX C000029688 Institutional Class FSIUX N-Q 1 h54240nvq.txt FORM N-Q - QUARTERLY SCHEDULE ------------------------ OMB APPROVAL ------------------------ OMB Number: 3235-0578 Expires: April 30, 2010 Estimated average burden hours per response: 10.5 ------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-03826 AIM Sector Funds (Exact name of registrant as specified in charter) 11 Greenway Plaza, Suite 100 Houston, Texas 77046 (Address of principal executive offices) (Zip code) Philip A. Taylor 11 Greenway Plaza, Suite 100 Houston, Texas 77046 (Name and address of agent for service) Registrant's telephone number, including area code: (713) 626-1919 Date of fiscal year end: 3/31 Date of reporting period: 12/31/07 Item 1. Schedule of Investments. AIM ENERGY FUND Quarterly Schedule of Portfolio Holdings - December 31, 2007 AIMinvestments.com i-ENE-QTR-1 12/07 A I M Advisors.inc. [LOGO] AIM ENERGY FUND SCHEDULE OF INVESTMENTS(A) December 31, 2007 (Unaudited)
SHARES VALUE -------------- -------------- DOMESTIC COMMON STOCKS--77.84% GAS UTILITIES--2.48% Questar Corp. 900,000 $ 48,690,000 INTEGRATED OIL & GAS--19.34% ConocoPhillips 683,000 60,308,900 Exxon Mobil Corp. 467,000 43,753,230 Hess Corp. 668,000 67,374,480 Marathon Oil Corp. 270,652 16,471,881 Murphy Oil Corp. 1,100,000 93,324,000 Occidental Petroleum Corp. 1,275,000 98,162,250 -------------- -------------- 379,394,741 ============== OIL & GAS DRILLING--6.30% Diamond Offshore Drilling, Inc. 344,000 48,848,000 Hercules Offshore, Inc. (b) 1,350,000 32,103,000 Nabors Industries Ltd. (b) 1,560,000 42,728,400 -------------- -------------- 123,679,400 ============== OIL & GAS EQUIPMENT & SERVICES--21.40% Baker Hughes Inc. 667,000 54,093,700 BJ Services Co. 1,750,000 42,455,000 Cameron International Corp. (b) 620,000 29,840,600 Grant Prideco, Inc. (b) 1,315,000 72,995,650 Halliburton Co. 1,300,000 49,283,000 National-Oilwell Varco Inc. (b) 267,000 19,613,820 Oceaneering International, Inc.(b) 300,000 20,205,000 Schlumberger Ltd. 725,000 71,318,250 Weatherford International Ltd.(b) 875,000 60,025,000 -------------- -------------- 419,830,020 ============== OIL & GAS EXPLORATION & PRODUCTION--24.17% Anadarko Petroleum Corp. 720,000 47,296,800 Apache Corp. 741,000 79,687,140 Bill Barrett Corp. (b) 1,575,000 65,945,250 Continental Resources, Inc. (b)(c) 2,015,000 52,651,950 Devon Energy Corp. 690,000 61,347,900 Noble Energy, Inc. 570,000 45,326,400 Plains Exploration & Production Co. (b) 345,000 18,630,000 Southwestern Energy Co. 1,130,000 62,963,600 XTO Energy, Inc. 787,500 40,446,000 -------------- -------------- 474,295,040 ============== OIL & GAS REFINING & MARKETING--0.38% Valero Energy Corp. 105,000 7,353,150 -------------- -------------- OIL & GAS STORAGE & TRANSPORTATION--3.77% Cheniere Energy, Inc. (b) 650,000 $ 21,216,000 El Paso Corp. 2,500,000 43,100,000 Williams Cos., Inc. (The) 270,000 9,660,600 73,976,600 -------------- Total Domestic Common Stocks (Cost $1,127,115,546) 1,527,218,951 ============== FOREIGN COMMON STOCKS & OTHER EQUITY INTERESTS--16.49% BRAZIL--3.52% Petroleo Brasileiro S.A. -ADR (Integrated Oil & Gas) 600,000 69,144,000 CANADA--4.76% Suncor Energy, Inc. (Integrated Oil & Gas) 450,000 48,928,500 Talisman Energy Inc. (Oil & Gas Exploration & Production) 2,400,000 44,448,000 93,376,500 -------------- FRANCE--5.88% Compagnie Generale de Geophysique-Veritas -ADR (Oil & Gas Equipment & Services)(b) 777,000 43,550,850 -------------- -------------- Total S.A. -ADR (Integrated Oil & Gas) 870,000 71,862,000 -------------- -------------- 115,412,850 ============== UNITED KINGDOM--2.33% BP PLC -ADR (Integrated Oil & Gas) 625,000 45,731,250 Total Foreign Common Stocks & Other Equity Interests (Cost $257,575,682) 323,664,600 -------------- MONEY MARKET FUNDS--5.22% Liquid Assets Portfolio-Institutional Class(d) 51,207,178 51,207,178 -------------- -------------- Premier Portfolio-Institutional Class(d) 51,207,177 51,207,177 -------------- -------------- Total Money Market Funds (Cost $102,414,355) 102,414,355 -------------- TOTAL INVESTMENTS--99.55% (Cost $1,487,105,583) 1,953,297,906 -------------- OTHER ASSETS LESS LIABILITIES--0.45% 8,800,712 -------------- NET ASSETS--100.00% $1,962,098,618 ==============
Investment Abbreviations: ADR --American Depositary Receipt 1 AIM ENERGY FUND Notes to Schedule of Investments: (a) Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. (b) Non-income producing security. (c) Affiliated company during the period. The Investment Company Act of 1940 defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The value of this security as of December 31, 2007 represented 2.68% of the Fund's Net Assets. See Note 2. (d) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THIS SCHEDULE. 2 AIM ENERGY FUND NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS December 31, 2007 (Unaudited) NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be 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 unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. 3 AIM ENERGY FUND A. SECURITY VALUATIONS -- (CONTINUED) Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds as received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, AIM may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America unless otherwise noted. D. RISKS INVOLVED IN INVESTING IN THE FUND -- The Fund's investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund's investments may tend to rise and fall more rapidly. E. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. 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 (net of foreign taxes withheld on disposition) 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 the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Taxes are accrued based on the Fund's current interpretation of tax regulations and rates that exist in the foreign markets in which the Fund invests. 4 AIM ENERGY FUND F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to procedures approved by the Board of Trustees, to invest daily available cash balances and cash collateral from securities lending transactions in an affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended December 31, 2007. During the period each investment maintained a $1.00 net asset value, as such there is no realized gain/(loss) and no change in unrealized appreciation/(depreciation). INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME ------------- ------------- ------------- ------------- ------------ Liquid Assets Portfolio- Institutional Class $ 20,239,843 $ 333,591,516 $(302,624,181) $ 51,207,178 $ 1,521,196 ------------- ------------- ------------- ------------- ------------ Premier Portfolio- Institutional Class 20,239,842 333,591,516 (302,624,181) 51,207,177 1,519,343 ============= ============= ============= ============= ============ SUBTOTAL $ 40,479,685 $ 667,183,032 $ 05,248,362) $ 102,414,355 $ 3,040,539 ============= ============= ============= ============= ============
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME ------------- ------------- --------------- ------------ ------------- Liquid Assets Portfolio- Institutional Class $ -- $ 423,484,379 $ (423,484,379) $ -- $ 108,372 ------------- ------------- --------------- ------------ ------------- Premier Portfolio- Institutional Class 275,543,072 302,263,747 (577,806,819) -- 446,636 ============= ============= =============== ============ ============= SUBTOTAL $ 275,543,072 $ 725,748,126 $(1,001,291,198) $ -- $ 555,008 ============= ============= =============== ============ =============
(a) Net of compensation to counterparties. INVESTMENTS IN OTHER AFFILIATES: The Investment Company Act of 1940 defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The following is a summary of the transactions with affiliates for the nine months ended December 31, 2007.
CHANGE IN UNREALIZED VALUE PURCHASES AT PROCEEDS FROM APPRECIATION VALUE DIVIDEND REALIZED 03/31/07 COST SALES (DEPRECIATION) 12/31/07 INCOME GAIN ------------- --------------- ---------------- ------------- ------------- ------------ ----------- Continental Resources, Inc.(b) $ -- $ 35,075,386 $ (6,385,556) $ 22,339,956 $ 52,651,950 $ -- $ 1,622,164 ============= =============== ================ ============= ============= ============ =========== TOTAL INVESTMENTS IN AFFILIATES $ 316,022,757 $ 1,428,006,544 $ (1,612,925,116) $ 22,339,956 $ 155,066,305 $ 3,595,547 $ 1,622,164 ============= =============== ================ ============= ============= ============ ===========
(b) As of December 31, 2007, security is no longer considered an affiliate of the Fund. 5 AIM ENERGY FUND NOTE 3 -- PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. At December 31, 2007, there were no securities out on loan. For the nine months ended December 31, 2007, the Fund received dividends on cash collateral investments of $555,008 for securities lending transactions during the period, which are net of compensation to counterparties. NOTE 4 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended December 31, 2007 was $947,005,948 and $853,317,236, respectively. For interim reporting periods, the cost of investments for tax purposes includes reversals of certain tax items, such as wash sales, that have occurred since the prior fiscal year-end. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $ 479,206,611 --------------- Aggregate unrealized (depreciation) of investment securities (13,648,859) =============== Net unrealized appreciation of investment securities $ 465,557,752 =============== Cost of investments for tax purposes is $1,487,740,154.
6 AIM FINANCIAL SERVICES FUND Quarterly Schedule of Portfolio Holdings - December 31, 2007 AIMinvestments.com A I M Advisors, Inc. (LOGO) AIM Financial Services Fund SCHEDULE OF INVESTMENTS (a) December 31, 2007 (Unaudited)
SHARES VALUE ------------- --------------- COMMON STOCKS & OTHER EQUITY INTERESTS - 97.15% ASSET MANAGEMENT & CUSTODY BANKS - 11.60% Bank of New York Mellon Corp. (The) 237,915 $ 11,600,735 ------------- --------------- Blackstone Group L.P. (The) (b) 157,057 3,475,672 ------------- --------------- FBR Capital Markets Corp. (b)(c) 419,560 4,019,385 ------------- --------------- Federated Investors, Inc. -Class B (b) 460,340 18,947,594 ------------- --------------- State Street Corp. 120,985 9,823,982 --------------- 47,867,368 --------------- CONSUMER FINANCE - 5.20% Capital One Financial Corp. 453,694 21,441,578 ------------- --------------- DIVERSIFIED BANKS - 6.34% U.S. Bancorp 412,193 13,083,006 ------------- --------------- Wachovia Corp. 343,294 13,055,471 ------------- --------------- 26,138,477 --------------- DIVERSIFIED CAPITAL MARKETS - 1.90% UBS A.G. - (Switzerland) 170,774 7,855,604 ------------- --------------- INSURANCE BROKERS - 10.93% Aon Corp. 238,102 11,355,084 ------------- --------------- Marsh & McLennan Cos., Inc. 893,687 23,655,895 ------------- --------------- National Financial Partners Corp. (b) 221,160 10,087,108 ------------- --------------- 45,098,087 --------------- INVESTMENT BANKING & BROKERAGE - 7.62% Merrill Lynch & Co., Inc. 308,890 16,581,215 ------------- --------------- Morgan Stanley 279,500 14,844,245 ------------- --------------- 31,425,460 --------------- LIFE & HEALTH INSURANCE - 2.48% Prudential Financial, Inc. 28,117 2,616,006 ------------- --------------- StanCorp Financial Group, Inc. 150,856 7,600,125 ------------- --------------- 10,216,131 --------------- MULTI-LINE INSURANCE - 6.41% American International Group, Inc. 138,226 8,058,576 ------------- --------------- Hartford Financial Services Group, Inc. (The) 210,826 18,381,919 ------------- --------------- 26,440,495 --------------- OTHER DIVERSIFIED FINANCIAL SERVICES - 18.14% Bank of America Corp. 420,841 17,363,900 ------------- --------------- Citigroup Inc. 1,064,301 31,333,021 ------------- --------------- JPMorgan Chase & Co. 598,437 26,121,775 ------------- --------------- 74,818,696 --------------- PROPERTY & CASUALTY INSURANCE - 4.05% ACE Ltd. (b) 242,966 $ 15,010,440 ------------- --------------- Security Capital Assurance Ltd. (b) 437,300 1,701,097 ------------- --------------- 16,711,537 --------------- REGIONAL BANKS - 8.60% Fifth Third Bancorp 639,946 16,081,843 ------------- --------------- Popular, Inc. (b) 590,000 6,254,000 ------------- --------------- SunTrust Banks, Inc. 150,001 9,373,562 ------------- --------------- Zions Bancorp. (b) 80,200 3,744,538 ------------- --------------- 35,453,943 --------------- SPECIALIZED CONSUMER SERVICES - 1.63% H&R Block, Inc. (b) 362,060 6,723,454 ------------- --------------- SPECIALIZED FINANCE - 1.03% Moody's Corp. (b) 119,386 4,262,080 ------------- --------------- THRIFTS & MORTGAGE FINANCE - 11.22% Fannie Mae 706,542 28,247,549 ------------- --------------- Freddie Mac 247,500 8,432,325 ------------- --------------- Hudson City Bancorp, Inc. (b) 639,653 9,607,588 ------------- --------------- 46,287,462 --------------- Total Common Stocks & Other Equity Interests (Cost $377,460,422) 400,740,372 ------------- --------------- MONEY MARKET FUNDS - 2.53% Liquid Assets Portfolio -Institutional Class(d) 5,218,622 5,218,622 ------------- --------------- Premier Portfolio -Institutional Class(d) 5,218,621 5,218,621 ------------- --------------- Total Money Market Funds (Cost $10,437,243) 10,437,243 --------------- TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan) - 99.68% (Cost $387,897,665) 411,177,615 --------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES ON LOAN MONEY MARKET FUNDS - 8.98% Liquid Assets Portfolio -Institutional Class (Cost $37,043,141)(d)(e) 37,043,141 37,043,141 ------------- --------------- TOTAL INVESTMENTS - 108.66% (Cost $424,940,806) 448,220,756 ------------- --------------- OTHER ASSETS LESS LIABILITIES - (8.66)% (35,721,453) --------------- NET ASSETS - 100.00% $ 412,499,303
1 Notes to Schedule of Investments: (a) Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. (b) All or a portion of this security was out on loan at December 31, 2007. (c) Non-income producing security. (d) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THIS SCHEDULE. 2 AIM Financial Services Fund NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS December 31, 2007 (Unaudited) NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES A. SECURITY VALUATIONS - Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be 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 unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. 3 AIM Financial Services Fund A. SECURITY VALUATIONS-(CONTINUED) Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds as received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, AIM may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America unless otherwise noted. D. RISKS INVOLVED IN INVESTING IN THE FUND - The Fund's investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund's investments may tend to rise and fall more rapidly. E. FOREIGN CURRENCY TRANSLATIONS - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. 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 (net of foreign taxes withheld on disposition) 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 the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Taxes are accrued based on the Fund's current interpretation of tax regulations and rates that exist in the foreign markets in which the Fund invests. F. FOREIGN CURRENCY CONTRACTS - A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if 4 AIM Financial Services Fund F. FOREIGN CURRENCY CONTRACTS-(CONTINUED) counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to procedures approved by the Board of Trustees, to invest daily available cash balances and cash collateral from securities lending transactions in an affiliated money market fund. The Fund and the money market fund below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in an affiliated money market fund for the nine months ended December 31, 2007. During the period each investment maintained a $1.00 net asset value, as such there is no realized gain/(loss) and no change in unrealized appreciation/(depreciation). INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
VALUE PURCHASES AT PROCEEDS FROM VALUE FUND 03/31/07 COST SALES 12/31/07 DIVIDEND INCOME - -------------------- ------------ -------------- --------------- ------------- --------------- Liquid Assets Portfolio- Institutional Class $ 5,288,995 $ 58,850,362 $ (58,920,735) $ 5,218,622 $ 162,867 ------------ -------------- -------------- ------------- -------------- Premier Portfolio- Institutional Class 5,288,995 58,850,362 (58,920,736) 5,218,621 162,836 ------------ -------------- -------------- ------------- -------------- SUBTOTAL $ 10,577,990 $ 117,700,724 $ (117,841,471) $ 10,437,243 $ 325,703 ------------ -------------- -------------- ------------- --------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
VALUE PURCHASES AT PROCEEDS FROM VALUE FUND 03/31/07 COST SALES 12/31/07 DIVIDEND INCOME * - ----------------------- ------------ -------------- --------------- -------------- ----------------- Liquid Assets Portfolio- Institutional Class $ -- $ 308,768,868 $ (271,725,727) $ 37,043,141 $ 34,921 ------------ -------------- -------------- ------------- ---------- TOTAL INVESTMENTS IN AFFILIATES $ 10,577,990 $ 426,469,592 $ (389,567,198) $ 47,480,384 $ 360,624 ------------ -------------- -------------- ------------- ----------
- -------- * Net of compensation to counterparties. NOTE 3 -- PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. At December 31, 2007, securities with an aggregate value of $47,130,731 were on loan to brokers. The loans were secured by cash collateral of $48,298,692 received by the Fund and $37,043,141 subsequently invested in an affiliated money market fund and cash of $11,255,551 held by the agent. For the nine months ended December 31, 2007, the Fund received dividends on cash collateral investments of $34,921 for securities lending transactions, which are net of compensation to counterparties. 5 NOTE 4 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended December 31, 2007 was $33,923,457 and $143,439,474, respectively. For interim reporting periods, the cost of investments for tax purposes includes reversals of certain tax items, such as wash sales, that have occurred since the prior fiscal year-end. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $ 91,786,665 -------------- Aggregate unrealized (depreciation) of investment securities (68,812,751) -------------- Net unrealized appreciation of investment securities $ 22,973,914 ============== Cost of investments for tax purposes is $425,246,842.
6 AIM GOLD & PRECIOUS METALS FUND FUND Quarterly Schedule of Portfolio Holdings - December 31, 2007 AIMinvestments.com i-GPM-QTR-1 12/07 A I M Advisors.inc. [LOGO] AIM GOLD & PRECIOUS METALS FUND FUND SCHEDULE OF INVESTMENTS(A) December 31, 2007 (Unaudited)
Shares Value ------------- ------------- FOREIGN COMMON STOCKS & OTHER EQUITY INTERESTS--71.15% AUSTRALIA--7.72% BHP Billiton Ltd. -ADR (Diversified Metals & Mining)(b) 110,000 $ 7,704,400 Newcrest Mining Ltd. (Gold) (c) 550,000 15,812,660 ------------- 23,517,060 ============= CANADA--49.81% Agnico-Eagle Mines Ltd. (Gold) 340,000 18,574,200 Barrick Gold Corp. (Gold) 357,000 15,011,850 Eldorado Gold Corp. (Gold) (d) 2,550,000 14,832,444 Gammon Gold, Inc. (Precious Metals & Minerals) (d) 255,100 2,040,903 Goldcorp, Inc. (Gold) (b) 770,000 26,126,100 Harry Winston Diamond Corp. (Precious Metals & Minerals) 200,000 6,531,146 IAMGOLD Corp. (Gold) 1,100,000 8,911,140 Kinross Gold Corp. (Gold) (d) 950,000 17,476,100 Pan American Silver Corp. (Precious Metals & Minerals)(d) 390,000 13,622,700 Teck Cominco Ltd. -Class B (Diversified Metals & Mining) 175,000 6,241,320 Western Copper Corp. (Diversified Metals & Mining)(d) 350,000 401,530 Yamana Gold Inc. (Gold) 1,700,000 21,998,000 ------------- ------------- 151,767,433 ============= SOUTH AFRICA--9.50% AngloGold Ashanti Ltd. -ADR (Gold) (b) 150,000 6,421,500 Gold Fields Ltd. -ADR (Gold) 820,000 11,644,000 Impala Platinum Holdings Ltd. (Precious Metals & Minerals)(c) 320,000 10,904,692 ------------- ------------- 28,970,192 ============= UNITED KINGDOM--4.12% Rio Tinto PLC (Diversified Metals & Mining) (c) 120,000 12,548,746 Total Foreign Common Stocks & Other Equity Interests (Cost $188,839,065) 216,803,431 ------------- COMMON STOCKS & OTHER EQUITY INTERESTS--24.19% DIVERSIFIED METALS & MINING--5.89% Freeport-McMoRan Copper & Gold, Inc. 175,000 17,927,000 ------------- GOLD--4.57% Newmont Mining Corp. 285,000 13,916,550 ------------- INVESTMENT COMPANIES - EXCHANGE TRADED FUNDS--5.95% iShares COMEX Gold Trust (b)(d) 100,000 $ 8,244,000 streetTRACKS Gold Trust (d) 120,000 9,883,200 ------------- ------------- 18,127,200 ============= MUTUAL FUNDS--1.97% Franco-Nevada Corp. (Acquired 11/30/07; Cost $2,959,832)(d)(e)(f) 194,200 2,960,783 Franco-Nevada Corp. (d) 200,000 3,049,210 ------------- ------------- 6,009,993 ============= PRECIOUS METALS & MINERALS--5. 81% Coeur d'Alene Mines Corp. (d) 2,000,000 9,880,000 Hecla Mining Co. (d) 400,000 3,740,000 Solitario Resources Corp. (d) 767,000 4,090,873 ------------- ------------- 17,710,873 ============= Total Common Stocks & Other Equity Interests (Cost $55,642,300) 73,691,616 ============= MONEY MARKET FUNDS--4.77% Liquid Assets Portfolio -Institutional Class(g) 7,265,412 7,265,412 Premier Portfolio -Institutional Class(g) 7,265,412 7,265,412 ------------- ------------- Total Money Market Funds (Cost $14,530,824) 14,530,824 ============= TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)--100.11% (Cost $259,012,189) 305,025,871 ------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES ON LOAN MONEY MARKET FUNDS--7.81% Liquid Assets Portfolio -Institutional Class (Cost $23,786,380)(g)(h) 23,786,380 23,786,380 ------------- ------------- TOTAL INVESTMENTS--107.92% (Cost $282,798,569) 328,812,251 ------------- OTHER ASSETS LESS LIABILITIES--(7.92)% (24,119,577) ------------- NET ASSETS--100.00% $ 304,692,674 =============
Investment Abbreviations: ADR --American Depositary Receipt 1 AIM GOLD & PRECIOUS METALS FUND FUND Notes to Schedule of Investments: (a) Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. (b) All or a portion of this security was out on loan at December 31, 2007. (c) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate value of these securities at December 31, 2007 was $39,266,098, which represented 12.89% of the Fund's Net Assets. See Note 1A. (d) Non-income producing security. (e) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The value of this security at December 31, 2007 represented 0.97% of the Fund's Net Assets. Unless otherwise indicated, this security is not considered to be illiquid. (f) Security fair valued in good faith in accordance with the procedures established by the Board of Trustees. The value of this security at December 31, 2007 represented 0.97% of the Fund's Net Assets. See Note 1A. (g) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (h) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THIS SCHEDULE. 2 AIM GOLD & PRECIOUS METALS FUND FUND NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS December 31, 2007 (Unaudited) NOTE 1 -- Significant Accounting Policies A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be 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 unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. 3 AIM GOLD & PRECIOUS METALS FUND FUND NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS December 31, 2007 (Unaudited) B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds as received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, AIM may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America unless otherwise noted. D. RISKS INVOLVED IN INVESTING IN THE FUND - The Fund's investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund's investments may tend to rise and fall more rapidly. E. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. 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 (net of foreign taxes withheld on disposition) 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 the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Taxes are accrued based on the Fund's current interpretation of tax regulations and rates that exist in the foreign markets in which the Fund invests. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. 4 AIM GOLD & PRECIOUS METALS FUND FUND NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to procedures approved by the Board of Trustees, to invest daily available cash balances and cash collateral from securities lending transactions in an affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended December 31, 2007. During the period each investment maintained a $1.00 net asset value, as such there is no realized gain/(loss) and no change in unrealized appreciation/(depreciation). INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME ------------- ------------- -------------- ------------- ----------- Liquid Assets Portfolio- Institution Class $ 6,350,961 $ 42,775,388 $ (41,860,937) $ 7,265,412 $ 207,575 Premier Portfolio- Institution Class 6,350,961 42,775,388 (41,860,937) 7,265,412 207,686 ------------- ------------- -------------- ------------- ----------- SUBTOTAL $ 12,701,922 $ 85,550,776 $ (83,721,874) $ 14,530,824 $ 415,261 ============= ============= ============== ============= ===========
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME ------------- ------------- -------------- ------------- ----------- Liquid Assets Portfolio- Institution Class $ -- $ 209,958,575 $ (186,172,195) $ 23,786,380 $ 48,465 Premier Portfolio- Institution$ Class 31,671,251 $ 40,693,652 $ (72,364,903) $ -- $ 28,616 SUBTOTAL $ 31,671,251 $ 250,652,227 $ (258,537,098) $ 23,786,380 $ 77,081 ------------- ------------- -------------- ------------- ----------- Total Investments in Affiliates $ 44,373,173 $ 336,203,003 $ (342,258,972) $ 38,317,204 $ 492,342 ============= ============= ============== ============= ===========
* Net of compensation to counterparties. NOTE 3 -- Portfolio Securities Loaned The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. At December 31, 2007, securities with an aggregate value of $23,020,388 were on loan to brokers. The loans were secured by cash collateral of $23,786,380 received by the Fund and subsequently invested in an affiliated money market fund. For the nine months ended December 31, 2007, the Fund received dividends on cash collateral investments of $77,081 for securities lending transactions, which are net of compensation to counterparties. 5 AIM GOLD & PRECIOUS METALS FUND FUND NOTE 4 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended December 31, 2007 was $81,128,178 and $82,626,778, respectively. For interim reporting periods, the cost of investments for tax purposes includes reversals of certain tax items, such as wash sales, that have occurred since the prior fiscal year-end. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $ 58,569,719 Aggregate unrealized (depreciation) of investment securities (13,224,086) ------------------ Net unrealized appreciation of investment securities $ 45,345,633 ==================
Cost of investments for tax purposes is $283,466,618. 6 AIM LEISURE FUND Quarterly Schedule of Portfolio Holdings - December 31, 2007 AIMinvestments.com i-LEI-QTR-1 12/07 A I M Advisors.inc. [LOGO] AIM LEISURE FUND SCHEDULE OF INVESTMENTS(A) December 31, 2007 (Unaudited)
Shares Value ----------- ----------- COMMON STOCKS & OTHER EQUITY INTERESTS--73.94% ADVERTISING--5.82% Harte-Hanks, Inc. 161,050 $ 2,786,165 Omnicom Group Inc. 925,600 43,993,768 ----------- ----------- 46,779,933 =========== APPAREL RETAIL--3.44% Abercrombie & Fitch Co. -Class A 346,357 27,698,169 ----------- ----------- APPAREL, ACCESSORIES & LUXURY GOODS--4.52% Carter's, Inc. (b)(c) 530,567 10,266,472 Coach, Inc. (c) 295,834 9,046,604 Polo Ralph Lauren Corp. 275,036 16,994,474 ----------- ----------- 36,307,550 =========== BREWERS--1.15% Anheuser-Busch Cos., Inc. 176,933 9,260,673 BROADCASTING & CABLE TV--11.12% Cablevision Systems Corp. -Class A (c) 667,193 16,346,228 CBS Corp. -Class A 64,550 1,726,713 CBS Corp. -Class B 64,700 1,763,075 Clear Channel Communications, Inc. 241,528 8,337,547 Comcast Corp. -Class A (c) 1,035,991 18,917,196 EchoStar Communications Corp. -Class A (c) 279,885 10,557,262 Liberty Global, Inc. -Class A(c) 80,054 3,137,316 Liberty Global, Inc. -Series C(c) 166,425 6,089,491 Liberty Media Corp. Capital -Series A (c) 93,088 10,843,821 Scripps Co. (E.W.) (The) -Class A(b) 137,300 6,179,873 Sinclair Broadcast Group, Inc. -Class A (b) 422,400 3,467,904 Virgin Media Inc. (b) 118,450 2,030,233 ----------- ----------- 89,396,659 =========== CASINOS & GAMING--5.34% Harrah's Entertainment, Inc. 126,669 11,241,874 International Game Technology 299,940 13,176,364 MGM Mirage (c) 220,032 18,487,089 ----------- ----------- 42,905,327 =========== CATALOG RETAIL--1.10% Liberty Media Corp. - Interactive -Series A (c) 465,444 8,880,672 COMPUTER & ELECTRONICS RETAIL--1.83% Best Buy Co., Inc. 195,019 10,267,750 hhgregg, Inc. (c) 323,567 4,452,282 DEPARTMENT STORES--1.34% Kohl's Corp. (c) 234,678 $10,748,252 DISTILLERS & VINTNERS--0.88% Brown-Forman Corp. -Class B 94,977 7,038,746 FOOTWEAR--3.50% Crocs, Inc. (c) 498,736 18,358,472 NIKE, Inc. -Class B 151,932 9,760,112 ----------- ----------- 28,118,584 =========== GENERAL MERCHANDISE STORES--0.88% Target Corp. 142,127 7,106,350 HOME ENTERTAINMENT SOFTWARE--0.42% Electronic Arts Inc. (c) 58,400 3,411,144 HOME IMPROVEMENT RETAIL--2.15% Home Depot, Inc. (The) 398,141 10,725,919 Lowe's Cos., Inc. 290,997 6,582,352 ----------- ----------- 17,308,271 =========== HOTELS, RESORTS & CRUISE LINES--6.03% Carnival Corp. 310,186 13,800,175 Marriott International, Inc. -Class A 330,485 11,295,977 Royal Caribbean Cruises Ltd. (b) 89,384 3,793,457 Starwood Hotels & Resorts Worldwide, Inc. 445,568 19,618,359 ----------- ----------- 48,507,968 =========== HYPERMARKETS & SUPER CENTERS--0.79% Wal-Mart Stores, Inc. 133,043 6,323,534 INTERNET SOFTWARE & SERVICES--1.53% Google Inc. -Class A (c) 17,815 12,318,716 INVESTMENT COMPANIES - EXCHANGE TRADED FUNDS--1.47% iShares Russell 3000 Index Fund(b) 46,568 3,936,859 iShares S&P 500 Index Fund (b)(d) 26,936 3,949,895 S&P 500 Depositary Receipts Trust -Series 1 27,039 3,953,372 ----------- ----------- 11,840,126 =========== MOVIES & ENTERTAINMENT--10.86% News Corp. -Class A 2,033,523 41,666,886 Time Warner Inc. 936,500 15,461,615 Viacom Inc. -Class A (c) 131,424 5,780,028 Viacom Inc. -Class B (c) 95,100 4,176,792 Walt Disney Co. (The) 626,608 20,226,906 ----------- ----------- 87,312,227 ===========
1 AIM LEISURE FUND PUBLISHING--2.17% Belo Corp. -Class A 270,700 $ 4,721,008 Gannett Co., Inc. 77,305 3,014,895 McClatchy Co. (The) -Class A (b) 111,700 1,398,484 McGraw-Hill Cos., Inc. (The) 189,800 8,315,138 ----------- ----------- 17,449,525 =========== RESTAURANTS--3.25% Burger King Holdings Inc. 263,864 7,522,763 McDonald's Corp. 175,440 10,335,170 Yum! Brands, Inc. 216,252 8,275,964 ----------- ----------- 26,133,897 =========== SOFT DRINKS--1.85% PepsiCo, Inc. 195,627 14,848,089 SPECIALIZED REIT's--0.74% Felcor Lodging Trust Inc. 380,592 5,933,429 SPECIALTY STORES--1.76% PetSmart, Inc. 599,885 14,115,294 Total Common Stocks & Other Equity Interests (Cost $429,403,493) 594,463,167 ----------- FOREIGN COMMON STOCKS & OTHER EQUITY INTERESTS--22.25% BELGIUM--2.47% Compagnie Nationale a Portfeuille/Nationale Portefeuille Maatschappij (Multi-Sector Holdings) (c)(e) 19,870 1,418,606 Groupe Bruxelles Lambert S.A. (Multi-Sector Holdings) (c)(e) 54,456 6,942,049 InBev N.V. (Brewers) (c)(e) 139,535 11,490,109 ----------- ----------- 19,850,764 =========== BRAZIL--1.94% Companhia de Bebidas das Americas -ADR (Brewers) 229,446 15,602,328 DENMARK--1.08% Carlsberg A.S. -Class B (Brewers) (c)(e) 72,650 8,723,712 FRANCE--3.36% Accor S.A. (Hotels, Resorts & Cruise Lines) (c)(e) 123,463 9,774,422 JC Decaux S.A. (Advertising) (c)(e) 201,900 7,896,136 Pernod Ricard S.A. (Distillers & Vintners) (c)(e) 40,560 9,324,333 ----------- ----------- 26,994,891 =========== HONG KONG--1.00% Regal Hotels International Holdings Ltd. (Hotels, Resorts & Cruise Lines) (e) 78,278,000 6,388,333 Television Broadcasts Ltd. -ADR (Broadcasting & Cable TV) (d) 138,900 1,669,134 ----------- ----------- 8,057,467 =========== JAPAN--0.44% Sony Corp. -ADR (Consumer Electronics) 64,500 $ 3,502,350 MEXICO--1.18% Coca-Cola Femsa S.A. B. de C.V. -ADR (Soft Drinks) 191,928 9,458,212 NETHERLANDS--2.88% Heineken Holding N.V. (Brewers) (c)(e) 208,100 11,702,791 Jetix Europe N.V. (Broadcasting & Cable TV) (c) 428,476 11,442,925 ----------- ----------- 23,145,716 =========== SWEDEN--0.84% Rezidor Hotel Group A.B (Hotels, Resorts & Cruise Lines) (Acquired 11/28/06 Cost $10,040,570 )(c)(e)(f) 1,133,374 6,779,004 SWITZERLAND--2.14% Compagnie Financiere Richemont S.A. -Class A (Apparel, Accessories & Luxury Goods)(e) 168,700 11,496,762 Pargesa Holding S.A. (Multi-Sector Holdings) (c)(e) 51,509 5,714,694 ----------- ----------- 17,211,456 =========== UNITED KINGDOM--4.92% Diageo PLC (Distillers & Vintners) (c)(e) 797,446 17,037,967 InterContinental Hotels Group PLC (Hotels, Resorts & Cruise Lines) (c)(e) 353,765 6,163,249 WPP Group PLC (Advertising) (c)(e) 1,277,960 16,330,934 ----------- ----------- 39,532,150 =========== Total Foreign Common Stocks & Other Equity Interests (Cost $103,874,403) 178,858,050 =========== MONEY MARKET FUNDS--3.87% Liquid Assets Portfolio -Institutional Class(g) 15,561,397 15,561,397 Premier Portfolio -Institutional Class(g) 15,561,398 15,561,398 ----------- ----------- Total Money Market Funds (Cost $31,122,795) 31,122,795 =========== TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)--100.06% (Cost $564,400,691) 804,444,012 ===========
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THIS SCHEDULE. 2 AIM LEISURE FUND INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES ON LOAN MONEY MARKET FUNDS--2.03% Liquid Assets Portfolio -Institutional Class (Cost $16,348,625)(g)(h) 16,348,625 $ 16,348,625 TOTAL INVESTMENTS--102.09% (Cost $580,749,316) 820,792,637 OTHER ASSETS LESS LIABILITIES--(2.09)% (16,783,676) ------------ NET ASSETS--100.00% $804,008,961 ============
Investment Abbreviations: ADR --American Depositary Receipt REIT --Real Estate Investment Trust Notes to Schedule of Investments: (a) Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. (b) All or a portion of this security was out on loan at December 31, 2007. (c) Non-income producing security. (d) In accordance with the procedures established by the Board of Trustees, security fair valued based on an evaluated quote provided by an independent pricing service. The aggregate value of these securities at December 31, 2007 was $5,619,029, which represented 0.70% of the Fund's Net Assets. See Note 1A. (e) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate value of these securities at December 31, 2007 was $137,183,101, which represented 17.06% of the Fund's Net Assets. See Note 1A. (f) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The value of this security at December 31, 2007 represented 0.84% of the Fund's Net Assets. Unless otherwise indicated, this security is not considered to be illiquid. (g) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (h) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THIS SCHEDULE. 3 AIM LEISURE FUND NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS December 31, 2007 (Unaudited) NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be 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 unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. 4 AIM LEISURE FUND Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds as received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, AIM may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America unless otherwise noted. D. RISKS INVOLVED IN INVESTING IN THE FUND - The Fund's investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund's investments may tend to rise and fall more rapidly. E. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. 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 (net of foreign taxes withheld on disposition) 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 the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Taxes are accrued based on the Fund's current interpretation of tax regulations and rates that exist in the foreign markets in which the Fund invests. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if 5 AIM LEISURE FUND F. FOREIGN CURRENCY CONTRACTS (CONTINUED) counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to procedures approved by the Board of Trustees, to invest daily available cash balances and cash collateral from securities lending transactions in an affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended December 31, 2007. During the period each investment maintained a $1.00 net asset value, as such there is no realized gain/(loss) and no change in unrealized appreciation/(depreciation). INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME - ----------------------- --------------- ---------------- ----------------- ------------------ ---------------- Liquid Assets Portfolio-Institutional Class $ 25,646,576 $ 68,583,225 $ (78,668,404) $ 15,561,397 $ 642,483 --------------- ---------------- ----------------- ------------------ ---------------- Premier Portfolio-Institutional Class 25,646,577 68,583,225 (78,668,404) 15,561,398 642,647 --------------- ---------------- ----------------- ------------------ ---------------- SUBTOTAL $ 51,293,153 $ 137,166,450 $ (157,336,808) $ 31,122,795 $ 1,285,130 =============== ================ ================= ================== ================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME * - ----------------------- --------------- ---------------- ----------------- ------------------ ---------------- Liquid Assets Portfolio-Institutional Class $ - $ 112,810,905 $ (96,462,280) $ 16,348,625 $ 109,744 --------------- ---------------- ----------------- ------------------ ---------------- TOTAL INVESTMENTS IN AFFILIATES $ 51,293,153 $ 249,977,355 $ (253,799,088) $ 47,471,420 $ 1,394,874 =============== ================ ================= ================== ================
* Net of compensation to counterparties. NOTE 3 -- PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. At December 31, 2007, securities with an aggregate value of $15,823,600 were on loan to brokers. The loans were secured by cash collateral of $16,348,625 received by the Fund and subsequently invested in an affiliated money market fund. For the nine months ended December 31, 2007, the Fund received dividends on cash collateral investments of $109,744 for securities lending transactions, which are net of compensation to counterparties. 6 AIM LEISURE FUND NOTE 4 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended December 31, 2007 was $106,498,371 and $155,825,187 respectively. For interim reporting periods, the cost of investments for tax purposes includes reversals of certain tax items, such as wash sales, that have occurred since the prior fiscal year-end. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS
Aggregate unrealized appreciation of investment securities $ 265,512,932 ----------------- Aggregate unrealized (depreciation) of investment securities (33,627,907) ----------------- Net unrealized appreciation of investment securities $ 231,885,025 ================= Cost of investments for tax purposes is $588,907,612.
7 AIM TECHNOLOGY FUND Quarterly Schedule of Portfolio Holdings - December 31, 2007 AIMinvestments.com A I M Advisors, Inc. (LOGO) AIM TECHNOLOGY FUND SCHEDULE OF INVESTMENTS(a) December 31, 2007 (Unaudited)
SHARES VALUE ----------- --------------- DOMESTIC COMMON STOCKS & OTHER EQUITY INTERESTS - 74.35% APPLICATION SOFTWARE - 6.10% Adobe Systems Inc. (b) 623,295 $ 26,633,395 ----------- -------------- Amdocs Ltd. (b)(c) 375,031 12,927,319 ----------- -------------- Autodesk, Inc. (b) 297,628 14,809,969 ----------- -------------- 54,370,683 -------------- COMMUNICATIONS EQUIPMENT - 9.68% Cisco Systems, Inc. (b) 892,938 24,171,832 ----------- -------------- CommScope, Inc. (b)(c) 244,633 12,038,390 ----------- -------------- Corning Inc. 420,071 10,077,503 ----------- -------------- Foundry Networks, Inc. (b)(c) 643,859 11,280,410 ----------- -------------- Harris Corp. 202,000 12,661,360 ----------- -------------- Opnext, Inc. (b) 359,371 3,180,433 ----------- -------------- Polycom, Inc. (b)(c) 461,087 12,808,997 ----------- -------------- 86,218,925 -------------- COMPUTER HARDWARE - 9.31% Apple Inc. (b) 227,338 45,031,111 ----------- -------------- Dell Inc. (b) 440,132 10,787,635 ----------- -------------- Hewlett-Packard Co. 536,647 27,089,941 ----------- -------------- 82,908,687 -------------- COMPUTER STORAGE & PERIPHERALS - 4.13% EMC Corp. (b) 1,521,621 28,195,637 ----------- -------------- Network Appliance, Inc. (b) 345,381 8,620,710 ----------- -------------- 36,816,347 -------------- DATA PROCESSING & OUTSOURCED SERVICES - 1.09% VeriFone Holdings, Inc. (b) 418,323 9,726,010 ----------- -------------- ELECTRONIC EQUIPMENT MANUFACTURERS - 1.83% Amphenol Corp. -Class A 351,048 16,278,096 ----------- -------------- HOME ENTERTAINMENT SOFTWARE - 3.88% Activision, Inc. (b) 824,210 24,479,037 ----------- -------------- Electronic Arts Inc. (b) 171,938 10,042,898 ----------- -------------- 34,521,935 -------------- INTERNET RETAIL - 0.61% Amazon.com, Inc. (b) 58,834 5,450,382 ----------- -------------- INTERNET SOFTWARE & SERVICES - 10.04% Akamai Technologies, Inc. (b)(c) 262,328 9,076,549 ----------- -------------- Digital River, Inc. (b)(c) 308,860 10,214,000 ----------- -------------- eBay Inc. (b) 276,737 9,184,901 ----------- -------------- Equinix, Inc. (b)(c) 91,828 9,281,056 ----------- -------------- Google Inc. -Class A (b) 52,692 $ 36,435,464 ----------- -------------- Omniture, Inc. (b)(c) 456,532 15,197,950 ----------- -------------- 89,389,920 -------------- IT CONSULTING & OTHER SERVICES - 2.35% Accenture Ltd. -Class A 581,560 20,953,607 ----------- -------------- OTHER DIVERSIFIED FINANCIAL SERVICES - 0.98% BlueStream Ventures L.P. (Acquired 08/03/00-06/05/07; Cost $23,866,660)(b)(d)(e)(f)(g) -- 8,751,840 ----------- -------------- SEMICONDUCTOR EQUIPMENT - 2.31% FormFactor Inc. (b)(c) 277,576 9,187,765 ----------- -------------- KLA-Tencor Corp. (c) 237,168 11,422,011 ----------- -------------- 20,609,776 -------------- SEMICONDUCTORS - 13.68% Broadcom Corp. -Class A (b)(c) 762,614 19,934,730 ----------- -------------- Intersil Corp. -Class A 790,715 19,356,703 ----------- -------------- National Semiconductor Corp. (c) 794,079 17,977,949 ----------- -------------- Netlogic Microsystems Inc. (b)(c) 306,288 9,862,474 ----------- -------------- NVIDIA Corp. (b)(c) 540,898 18,401,350 ----------- -------------- Texas Instruments Inc. (c) 651,271 21,752,451 ----------- -------------- Xilinx, Inc. (c) 668,291 14,615,524 ----------- -------------- 121,901,181 -------------- SYSTEMS SOFTWARE - 6.22% McAfee Inc. (b)(c) 356,265 13,359,938 ----------- -------------- Microsoft Corp. 691,797 24,627,973 ----------- -------------- Oracle Corp. (b) 772,980 17,453,888 ----------- -------------- 55,441,799 -------------- WIRELESS TELECOMMUNICATION SERVICES - 2.14% American Tower Corp. -Class A (b)(c) 446,899 19,037,897 ----------- -------------- Total Domestic Common Stocks & Other Equity Interests (Cost $509,534,536) 662,377,085 -------------- FOREIGN COMMON STOCKS & OTHER EQUITY INTERESTS - 18.18% CANADA - 2.73% Research In Motion Ltd. (Communications Equipment) (b) 214,537 24,328,496 ----------- -------------- FINLAND - 2.57% Nokia Oyj -ADR (Communications Equipment) 596,809 22,911,498 ----------- --------------
1
SHARES VALUE ----------- --------------- HONG KONG - 2.00% China Mobile Ltd. -ADR (Wireless Telecommunication Services) (c) 205,230 $ 17,828,330 ----------- -------------- ISRAEL - 1.29% NICE Systems Ltd. -ADR (Communications Equipment) (b)(c) 334,789 11,489,958 ----------- -------------- JAPAN - 2.54% Nintendo Co., Ltd. (Home Entertainment Software) (h) 37,100 22,579,751 ----------- -------------- MEXICO - 2.08% America Movil S.A.B de C.V. -Series L -ADR (Wireless Telecommunication Services) 301,737 18,523,634 ----------- -------------- SWITZERLAND - 1.05% Logitech International S.A. (Computer Storage & Peripherals) (b) 255,836 9,373,831 ----------- -------------- TAIWAN - 3.92% Hon Hai Precision Industry Co., Ltd. (Electronic Manufacturing Services) (h) 2,135,210 13,192,204 ----------- -------------- Siliconware Precision Industries Co. -ADR (Semiconductors) (c) 1,064,042 9,459,334 ----------- -------------- Taiwan Semiconductor Manufacturing Co. Ltd. -ADR (Semiconductors) (c) 1,233,771 12,288,359 ----------- -------------- 34,939,897 -------------- Total Foreign Common Stocks & Other Equity Interests (Cost $92,640,235) 161,975,395 -------------- MONEY MARKET FUNDS - 8.18% Liquid Assets Portfolio -Institutional Class(i) 36,444,445 36,444,445 ----------- -------------- Premier Portfolio -Institutional Class(i) 36,444,445 36,444,445 ----------- -------------- Total Money Market Funds (Cost $72,888,890) 72,888,890 -------------- TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan) - 100.71% (Cost $675,063,661) 897,241,370 -------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES ON LOAN MONEY MARKET FUNDS - 4.89% Liquid Assets Portfolio -Institutional Class (Cost $43,533,215)(i)(j) 43,533,215 43,533,215 ----------- -------------- TOTAL INVESTMENTS - 105.60% (Cost $718,596,876) 940,774,585 -------------- OTHER ASSETS LESS LIABILITIES - (5.60)% (49,893,461) -------------- NET ASSETS - 100.00% $ 890,881,124 --------------
Investment Abbreviations: ADR -- American Depositary Receipt Notes to Schedule of Investments: (a) Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. (b) Non-income producing security. (c) All or a portion of this security was out on loan at December 31, 2007. (d) Security fair valued in good faith in accordance with the procedures established by the Board of Trustees. The value of this security at December 31, 2007 represented 0.98% of the Fund's Net Assets. See Note 1A. (e) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The value of this security at December 31, 2007 represented 0.98% of the Fund's Net Assets. This security is considered to be illiquid. The Fund is limited to investing 15% of net assets in illiquid securities at the time of purchase. (f) The Fund has a 6% ownership of BlueStream Ventures L.P. ("BlueStream") and BlueStream may be considered an affiliated company. The value of this security as of December 31, 2007 represented 0.98% of the Fund's Net Assets. See Note 2. (g) The Fund has a remaining commitment of $1,105,887 to purchase additional interests in BlueStream Ventures L.P., which is subject to the terms of the limited partnership agreement. Security is considered venture capital. (h) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate value of these securities at December 31, 2007 was $35,771,955, which represented 4.02% of the Fund's Net Assets. See Note 1A. (i) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (j) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THIS SCHEDULE.` 2 AIM TECHNOLOGY FUND NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS December 31, 2007 (Unaudited) NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES A. SECURITY VALUATIONS - Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be 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 unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. 3 AIM TECHNOLOGY FUND A. SECURITY VALUATIONS -- (CONTINUED) Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds as received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, AIM may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America unless otherwise noted. D. RISKS INVOLVED IN INVESTING IN THE FUND - The Fund's investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund's investments may tend to rise and fall more rapidly. E. FOREIGN CURRENCY TRANSLATIONS - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. 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 (net of foreign taxes withheld on disposition) 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 the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Taxes are accrued based on the Fund's current interpretation of tax regulations and rates that exist in the foreign markets in which the Fund invests. F. FOREIGN CURRENCY CONTRACTS - A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if 4 AIM TECHNOLOGY FUND F. FOREIGN CURRENCY CONTRACTS -- (CONTINUED) counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. G. PUT OPTIONS PURCHASED - The Fund may purchase put options including options on securities indexes and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option's underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option's underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund's resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to procedures approved by the Board of Trustees, to invest daily available cash balances and cash collateral from securities lending transactions in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended December 31, 2007. During the period each investment maintained a $1.00 net asset value, as such there is no realized gain/(loss) and no change in unrealized appreciation/(depreciation). INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED VALUE PURCHASES AT PROCEEDS FROM APPRECIATION VALUE DIVIDEND FUND 03/31/07 COST SALES (DEPRECIATION) 12/31/07 INCOME - ------------------- ------------- -------------- ---------------- --------------- ------------- ----------- Liquid Assets Portfolio- Institutional Class $ 12,325,340 $ 125,863,745 $ (101,744,640) $ -- $ 36,444,445 $ 396,922 ------------- -------------- --------------- --------------- ------------ ----------- Premier Portfolio- Institutional Class 12,325,340 125,863,745 (101,744,640) -- 36,444,445 397,518 ------------- -------------- --------------- --------------- ------------ ----------- SUBTOTAL $ 24,650,680 $ 251,727,490 $ (203,489,280) $ -- $ 72,888,890 $ 794,440 ------------- -------------- --------------- --------------- ------------ -----------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED VALUE PURCHASES AT PROCEEDS FROM APPRECIATION VALUE DIVIDEND FUND 03/31/07 COST SALES (DEPRECIATION) 12/31/07 INCOME * - ------------------- ------------- -------------- ---------------- --------------- ------------- ----------- Liquid Assets Portfolio- Institutional Class $ -- $ 469,642,579 $ (426,109,364) $ -- $ 43,533,215 $ 73,764 ------------ -------------- --------------- --------------- ------------- ----------- Premier Portfolio- Institutional Class 19,349,479 90,940,029 (110,289,508) -- -- 96,371 ------------ -------------- --------------- --------------- ------------- ----------- SUBTOTAL $ 19,349,479 $ 560,582,608 $ (536,398,872) $ -- $ 43,533,215 $ 170,135 ------------ -------------- --------------- --------------- ------------- -----------
- ----------- * Net of compensation to counterparties. 5 AIM TECHNOLOGY FUND INVESTMENTS IN OTHER AFFILIATES: The Investment Company Act of 1940 defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The following is a summary of the transactions with affiliates for the nine months ended December 31, 2007.
CHANGE IN UNREALIZED VALUE PURCHASES AT PROCEEDS FROM APPRECIATION VALUE DIVIDEND 03/31/07 COST SALES (DEPRECIATION) 12/31/07 INCOME -------------- -------------- ---------------- --------------- ------------- ------------ Bluestream Ventures L.P. TOTAL INVESTMENTS $ 12,207,471 $ 1,105,887 $ -- $ (4,561,518) $ 8,751,840 $ -- -------------- ------------- ---------------- -------------- ------------- ------------ IN AFFILIATES $ 56,207,630 $ 813,415,985 $ (739,888,152) $ (4,561,518) $ 125,173,945 $ 964,575 -------------- ------------- ---------------- -------------- ------------- ------------
NOTE 3 -- PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. At December 31, 2007, securities with an aggregate value of $42,169,311 were on loan to brokers. The loans were secured by cash collateral of $43,533,215 received by the Fund and subsequently invested in an affiliated money market fund. For the nine months ended December 31, 2007, the Fund received dividends on cash collateral investments of $170,135 for securities lending transactions, which are net of compensation to counterparties. NOTE 4 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended December 31, 2007 was $862,444,871 and $1,039,776,541, respectively. For interim reporting periods, the cost of investments for tax purposes includes reversals of certain tax items, such as wash sales, that have occurred since the prior fiscal year-end. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $ 249,635,528 --------------- Aggregate unrealized (depreciation) of investment securities (25,083,414) --------------- Net unrealized appreciation of investment securities $ 224,552,114 =============== Cost of investments for tax purposes is $716,222,471.
6 AIM UTILITIES FUND Quarterly Schedule of Portfolio Holdings - December 31, 2007 AIMinvestments.com i-UTI-QTR-1 12/07 A I M Advisors.inc. [LOGO] AIM Utilities Fund SCHEDULE OF INVESTMENTS(A) December 31, 2007 (Unaudited)
SHARES VALUE ---------- ------------ COMMON STOCKS--94.51% ELECTRIC UTILITIES--36.12% Duke Energy Corp. 750,000 $ 15,127,500 E.ON A.G. (Germany)(b) 65,000 13,775,690 Edison International 290,000 15,477,300 Enel S.p.A. (Italy)(b) 500,000 5,890,633 Entergy Corp. 160,000 19,123,200 Exelon Corp. 250,000 20,410,000 FirstEnergy Corp. 180,000 13,021,200 FPL Group, Inc. 255,000 17,283,900 Pepco Holdings, Inc. 360,000 10,558,800 Portland General Electric Co. 230,000 6,389,400 PPL Corp. 280,000 14,585,200 Southern Co. 140,000 5,425,000 ---------- ------------ 157,067,823 ============ GAS UTILITIES--8.61% AGL Resources Inc. 270,000 10,162,800 Equitable Resources, Inc. 225,000 11,988,000 Questar Corp. 283,000 15,310,300 37,461,100 ------------ INDEPENDENT POWER PRODUCERS & Energy TRADERS--5.97% Constellation Energy Group 97,000 9,945,410 NRG Energy, Inc. (c) 370,000 16,035,800 ---------- ------------ 25,981,210 ============ INTEGRATED TELECOMMUNICATION SERVICES--11.92% Alaska Communications Systems Group Inc. 855,878 12,838,170 AT&T Inc. 570,000 23,689,200 Verizon Communications Inc. 350,000 15,291,500 ---------- ------------ 51,818,870 ============ MULTI-UTILITIES--21.31% Ameren Corp. 180,000 9,757,800 CMS Energy Corp. 570,000 9,906,600 Dominion Resources, Inc. 260,000 12,337,000 National Grid PLC (United Kingdom)(b) 570,000 9,406,410 OGE Energy Corp. 75,000 2,721,750 PG&E Corp. 255,000 10,987,950 SCANA Corp. 70,000 2,950,500 Sempra Energy 245,000 15,160,600 Veolia Environnement (France)(b) 110,000 9,971,622 Xcel Energy, Inc. 420,000 9,479,400 ---------- ------------ 92,679,632 ============ OIL & GAS STORAGE & TRANSPORTATION--9.67% El Paso Corp. 845,000 $ 14,567,800 Spectra Energy Corp. 400,000 10,328,000 Williams Cos., Inc. (The) 479,000 17,138,620 ---------- ------------ 42,034,420 ============ WIRELESS TELECOMMUNICATION SERVICES--0.91% Sprint Nextel Corp. 300,000 3,939,000 ---------- ------------ Total Common Stocks (Cost $279,078,892) 410,982,055 ============ MONEY MARKET FUNDS--5.18% Liquid Assets Portfolio -Institutional Class(d) 11,269,247 11,269,247 Premier Portfolio -Institutional Class(d) 11,269,247 11,269,247 Total Money Market Funds (Cost $22,538,494) 22,538,494 ------------ TOTAL INVESTMENTS--99.69% (Cost $301,617,386) 433,520,549 ------------ OTHER ASSETS LESS LIABILITIES--0.31% 1,361,114 ------------ NET ASSETS--100.00% $434,881,663 ============
Notes to Schedule of Investments: (a) Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. (b) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate value of these securities at December 31, 2007 was $39,044,355, which represented 8.98% of the Fund's Net Assets. See Note 1A. (c) Non-income producing security. (d) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. See accompanying notes which are an integral part of this schedule. 1 AIM UTILITIES FUND NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS December 31, 2007 (Unaudited) NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be 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 unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. 2 AIM UTILITIES FUND A. SECURITY VALUATIONS (CONTINUED) -- Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds as received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, AIM may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America unless otherwise noted. D. RISKS INVOLVED IN INVESTING IN THE FUND -- The Fund's investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund's investments may tend to rise and fall more rapidly. E. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. 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 (net of foreign taxes withheld on disposition) 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 the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Taxes are accrued based on the Fund's current interpretation of tax regulations and rates that exist in the foreign markets in which the Fund invests. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be 3 AIM UTILITIES FUND F. FOREIGN CURRENCY CONTRACTS(CONTINUED)- in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to procedures approved by the Board of Trustees, to invest daily available cash balances and cash collateral from securities lending transactions in an affiliated money market fund. The Fund and the money market fund below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in an affiliated money market fund for the nine months ended December 31, 2007. During the period each investment maintained a $1.00 net asset value, as such there is no realized gain/(loss) and no change in unrealized appreciation/(depreciation). Investments of Daily Available Cash Balances:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME ------------- ------------- ------------- ------------- ------------- Liquid Assets Portfolio-Institutional Class $ 10,637,280 $ 52,772,304 $ (52,140,337) $ 11,269,247 $ 254,136 ------------- ------------- ------------- ------------- ------------- Premier Portfolio- Institutional Class 10,637,280 52,772,304 (52,140,337) 11,269,247 254,150 ============= ============= ============= ============= ============= SUBTOTAL $ 21,274,560 $ 105,544,608 $(104,280,674) $ 22,538,494 $ 508,286 ============= ============= ============= ============= =============
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
VALUE PURCHASES AT PROCEEDS FROM VALUE DIVIDEND FUND 03/31/07 COST SALES 12/31/07 INCOME* ------------- ------------- ------------- ------------- ------------- Liquid Assets Portfolio-Institutional Class $ -- $ 4,886,438 $ (4,886,438) $ -- $ 3,583 Premier Portfolio- Institutional Class 23,229,940 14,127,964 (37,357,904) -- 132,664 ============= ============= ============= ============= ============= SUBTOTAL $ 23,229,940 $ 19,014,402 $ (42,244,342) $ -- $ 136,247 ============= ============= ============= ============= ============= TOTAL INVESTMENTS IN AFFILIATES $ 44,504,500 $ 124,559,010 $(146,525,016) $ 22,538,494 $ 644,533 ============= ============= ============= ============= =============
* Net of compensation to counterparties. NOTE 3 -- PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. At December 31, 2007, there were no securities on loan. For the nine months ended December 31, 2007, the Fund received dividends on cash collateral investments of $136,247 for securities lending transactions during the period, which are net of compensation to counterparties. 4 AIM UTILITIES FUND NOTE 4 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the nine months ended December 31, 2007 was $74,609,253 and $73,780,557, respectively. For interim reporting periods, the cost of investments for tax purposes includes reversals of certain tax items, such as wash sales, that have occurred since the prior fiscal year-end. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $ 132,933,489 Aggregate unrealized (depreciation) of investment securities (1,637,021) --------------- Net unrealized appreciation of investment securities $ 131,296,468 =============== Cost of investments for tax purposes is $302,224,081.
5 Item 2. Controls and Procedures. (a) As of December 17, 2007, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"), to assess the effectiveness of the Registrant's disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 ("Act"), as amended. Based on that evaluation, the Registrant's officers, including the PEO and PFO, concluded that, as of December 17, 2007, the Registrant's disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. (b) There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. Item 3. Exhibits. Certifications of PEO and PFO as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: AIM Sector Funds By: /s/ Philip A. Taylor --------------------------------- Philip A. Taylor Principal Executive Officer Date: February 29, 2008 Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ Philip A. Taylor --------------------------------- Philip A. Taylor Principal Executive Officer Date: February 29, 2008 By: /s/ Sidney M. Dilgren --------------------------------- Sidney M. Dilgren Principal Financial Officer Date: February 29, 2008 EXHIBIT INDEX Certifications of Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO") as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended. EX-99.CERT 2 h54240exv99wcert.txt CERTIFICATIONS PURSUANT TO SECTION 302 I, Philip A. Taylor, Principal Executive Officer, certify that: 1. I have reviewed this report on Form N-Q of AIM Sector Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in this registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 29, 2008 /s/ Philip A. Taylor ---------------------------------------- Philip A. Taylor, Principal Executive Officer I, Sidney M. Dilgren, Principal Financial Officer, certify that: 1. I have reviewed this report on Form N-Q of AIM Sector Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in this registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 29, 2008 /s/ Sidney M. Dilgren ---------------------------------------- Sidney M. Dilgren, Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----