N-Q 1 h33602nvq.txt AIM EQUITY FUNDS - 1/31/2006 OMB APPROVAL OMB Number: 3235-0578 Expires: May 31, 2007 Estimated average burden hours per response: 21.09 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 811-01424 AIM Equity Funds (Exact name of registrant as specified in charter) 11 Greenway Plaza, Suite 100 Houston, Texas 77046 (Address of principal executive offices) (Zip code) Robert H. Graham 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: 10/31 Date of reporting period: 01/31/06 Item 1. Schedule of Investments. AIM AGGRESSIVE GROWTH FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENT LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com AGRO-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE ---------- --------------- COMMON STOCKS -- 99.44% ADVERTISING--0.74% Lamar Advertising Co.-Class A (a) 260,000 $ 11,939,200 AEROSPACE & DEFENSE--3.80% Engineered Support Systems, Inc. 327,000 14,067,540 L-3 Communications Holdings, Inc. 158,000 12,801,160 Precision Castparts Corp. 400,000 19,980,000 Rockwell Collins, Inc. 300,000 14,076,000 --------------- 60,924,700 --------------- AGRICULTURAL PRODUCTS--0.93% Corn Products International, Inc. 544,800 14,856,696 APPAREL RETAIL--2.88% Aeropostale, Inc. (a) 500,000 15,115,000 AnnTaylor Stores Corp. (a) 425,000 14,161,000 Chico's FAS, Inc. (a) 165,987 7,230,394 DSW Inc.-Class A (a)(b) 366,190 9,788,259 46,294,653 APPLICATION SOFTWARE--3.59% Amdocs Ltd. (a) 815,000 26,243,000 Citrix Systems, Inc. (a) 475,000 14,649,000 Hyperion Solutions Corp. (a) 487,500 16,774,875 --------------- 57,666,875 --------------- ASSET MANAGEMENT & CUSTODY BANKS--2.62% Affiliated Managers Group, Inc. (a) 140,000 12,992,000 Legg Mason, Inc. 136,500 17,704,050 Nuveen Investments, Inc.-Class A 250,000 11,342,500 --------------- 42,038,550 --------------- AUTOMOTIVE RETAIL--0.85% Advance Auto Parts, Inc. (a) 315,000 13,724,550 BIOTECHNOLOGY--0.64% Neurocrine Biosciences, Inc. (a) 168,200 10,221,514
F-1
SHARES VALUE ---------- --------------- BROADCASTING & CABLE TV--0.89% Univision Communications Inc.-Class A (a) 450,000 $ 14,328,000 BUILDING PRODUCTS--1.52% American Standard Cos. Inc. 311,200 11,203,200 Lennox International Inc. 415,000 13,259,250 --------------- 24,462,450 --------------- CASINOS & GAMING--1.31% GTECH Holdings Corp. 300,000 10,026,000 Wynn Resorts, Ltd. (a)(b) 170,000 10,978,600 --------------- 21,004,600 --------------- COMMUNICATIONS EQUIPMENT--2.57% ADC Telecommunications, Inc. (a) 550,000 13,948,000 F5 Networks, Inc. (a) 136,500 8,831,550 JDS Uniphase Corp. (a) 3,750,000 11,737,500 Redback Networks Inc. (a) 400,000 6,740,000 --------------- 41,257,050 --------------- COMPUTER STORAGE & PERIPHERALS--2.26% Network Appliance, Inc. (a) 561,071 17,505,415 QLogic Corp. (a) 475,000 18,843,250 --------------- 36,348,665 --------------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--2.18% Oshkosh Truck Corp. 325,000 16,025,750 Terex Corp. (a) 270,200 19,049,100 --------------- 35,074,850 --------------- CONSUMER ELECTRONICS--0.69% Harman International Industries, Inc. 100,000 11,000,000 CONSUMER FINANCE--1.05% SLM Corp. 299,900 16,782,404 DATA PROCESSING & OUTSOURCED SERVICES--2.94% Affiliated Computer Services, Inc.-Class A (a) 436,200 27,306,120 Alliance Data Systems Corp. (a) 275,000 11,618,750 Iron Mountain Inc. (a) 200,000 8,336,000 --------------- 47,260,870 --------------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.86% ChoicePoint Inc. (a) 335,800 13,808,096 ELECTRIC UTILITIES--0.72% DPL Inc. 450,000 11,538,000
F-2
SHARES VALUE ---------- --------------- ELECTRONIC EQUIPMENT MANUFACTURERS--1.72% Amphenol Corp.-Class A 400,000 $ 20,332,000 Cogent Inc. (a) 300,000 7,209,000 --------------- 27,541,000 --------------- ELECTRONIC MANUFACTURING SERVICES--0.76% Jabil Circuit, Inc. (a) 300,000 12,120,000 GENERAL MERCHANDISE STORES--0.31% Tuesday Morning Corp. 235,000 5,000,800 HEALTH CARE DISTRIBUTORS--0.92% AmerisourceBergen Corp. 340,000 14,837,600 HEALTH CARE EQUIPMENT--6.96% Advanced Medical Optics, Inc. (a) 435,000 19,392,300 Biomet, Inc. 380,522 14,387,537 Cytyc Corp. (a) 964,444 29,029,764 Fisher Scientific International Inc. (a) 199,000 13,307,130 PerkinElmer, Inc. 513,300 11,672,442 Thermo Electron Corp. (a) 300,000 10,092,000 Varian Medical Systems, Inc. (a) 229,900 13,842,279 --------------- 111,723,452 --------------- HEALTH CARE FACILITIES--3.52% HealthSouth Corp. (a) 2,229,500 10,768,485 LifePoint Hospitals, Inc. (a) 300,000 9,255,000 Manor Care, Inc. 450,000 17,595,000 Triad Hospitals, Inc. (a) 281,643 11,564,262 Universal Health Services, Inc.-Class B 155,000 7,364,050 --------------- 56,546,797 --------------- HEALTH CARE SERVICES--3.22% DaVita, Inc. (a) 218,400 11,957,400 Express Scripts, Inc. (a) 165,000 15,062,850 Lincare Holdings Inc. (a) 230,000 9,719,800 Omnicare, Inc. 300,000 14,910,000 --------------- 51,650,050 --------------- HEALTH CARE SUPPLIES--1.39% Bausch & Lomb Inc. 200,000 13,510,000 Gen-Probe Inc. (a) 173,200 8,734,476 --------------- 22,244,476 ---------------
F-3
SHARES VALUE ---------- --------------- HOME ENTERTAINMENT SOFTWARE--0.88% Electronic Arts Inc. (a) 260,000 $ 14,190,800 HOME FURNISHINGS--0.65% Tempur-Pedic International Inc. (a) 900,000 10,494,000 HOUSEHOLD APPLIANCES--0.44% Blount International, Inc. (a) 435,475 6,989,374 INDUSTRIAL CONGLOMERATES--1.71% Textron Inc. 325,000 27,449,500 INDUSTRIAL MACHINERY--0.81% Pentair, Inc. 337,800 12,971,520 INTERNET SOFTWARE & SERVICES--0.82% Websense, Inc. (a) 200,000 13,186,000 INVESTMENT BANKING & BROKERAGE--1.20% Schwab (Charles) Corp. (The) 1,300,000 19,227,000 MANAGED HEALTH CARE--1.99% Health Net, Inc. (a) 325,000 16,045,250 Humana Inc. (a) 285,000 15,894,450 --------------- 31,939,700 --------------- METAL & GLASS CONTAINERS--0.95% Owens-Illinois, Inc. (a) 695,000 15,283,050 MOVIES & ENTERTAINMENT--0.42% Regal Entertainment Group-Class A (b) 365,000 6,756,150 MULTI-LINE INSURANCE--2.25% Assurant, Inc. 475,000 21,812,000 HCC Insurance Holdings, Inc. 460,000 14,287,600 --------------- 36,099,600 --------------- OIL & GAS DRILLING--2.92% ENSCO International Inc. 650,000 33,228,000 Pride International, Inc. (a) 387,200 13,672,032 --------------- 46,900,032 ---------------
F-4
SHARES VALUE ---------- --------------- OIL & GAS EQUIPMENT & SERVICES--2.52% BJ Services Co. 465,000 $ 18,827,850 National-Oilwell Varco Inc. (a) 285,000 21,679,950 --------------- 40,507,800 --------------- OIL & GAS EXPLORATION & PRODUCTION--1.47% Newfield Exploration Co. (a) 450,000 23,580,000 OIL & GAS REFINING & MARKETING --0.11% Western Refining, Inc. (a) 92,031 1,725,581 PACKAGED FOODS & MEATS--0.49% Pilgrim's Pride Corp. 325,000 7,910,500 PHARMACEUTICALS--2.80% Allergan, Inc. 120,000 13,968,000 Barr Pharmaceuticals Inc. (a) 300,000 19,674,000 Medicis Pharmaceutical Corp.-Class A (b) 365,152 11,286,848 --------------- 44,928,848 --------------- PROPERTY & CASUALTY INSURANCE--0.91% Safeco Corp. 280,000 14,630,000 REGIONAL BANKS--0.52% North Fork Bancorp., Inc. 325,000 8,359,000 RESTAURANTS--3.90% CKE Restaurants, Inc. (b) 1,250,000 19,562,500 Darden Restaurants, Inc. 345,000 14,027,700 Outback Steakhouse, Inc. 210,000 9,708,300 Ruby Tuesday, Inc. (b) 327,700 9,375,497 YUM! Brands, Inc. 201,350 9,960,785 --------------- 62,634,782 --------------- SEMICONDUCTOR EQUIPMENT--1.03% KLA-Tencor Corp. 317,000 16,477,660 SEMICONDUCTORS--7.26% Analog Devices, Inc. 750,000 29,827,500 Freescale Semiconductor, Inc.-Class B (a) 900,000 22,725,000 Integrated Device Technology, Inc. (a) 1,350,000 18,751,500 Marvell Technology Group Ltd. (a) 335,000 22,920,700 Maxim Integrated Products, Inc. 325,000 13,338,000 NVIDIA Corp. (a) 200,000 8,992,000 --------------- 116,554,700 ---------------
F-5
SHARES VALUE ---------- --------------- SOFT DRINKS--0.61% Coca-Cola Enterprises Inc. 496,310 $ 9,797,159 SPECIALIZED CONSUMER SERVICES--0.64% Jackson Hewitt Tax Service Inc. 407,965 10,305,196 SPECIALTY CHEMICALS--0.79% Rohm and Haas Co. 250,000 12,725,000 SPECIALTY STORES--2.16% Office Depot, Inc. (a) 675,000 22,376,250 Tiffany & Co. 325,000 12,252,500 --------------- 34,628,750 --------------- SYSTEMS SOFTWARE--1.40% Check Point Software Technologies Ltd. (Israel) (a) 635,000 13,741,400 Red Hat, Inc. (a) 300,000 8,685,000 --------------- 22,426,400 --------------- TECHNOLOGY DISTRIBUTORS--0.72% Ingram Micro Inc.-Class A (a) 600,000 11,610,000 THRIFTS & MORTGAGE FINANCE--3.06% Independence Community Bank Corp. 350,000 13,996,500 MGIC Investment Corp. 260,000 17,162,600 Radian Group Inc. 315,000 18,027,450 --------------- 49,186,550 --------------- TRADING COMPANIES & DISTRIBUTORS--2.17% United Rentals, Inc. (a) 470,000 13,775,700 WESCO International, Inc. (a) 438,800 21,031,684 34,807,384 Total Common Stocks (Cost $1,381,076,727) 1,596,477,934 --------------- MONEY MARKET FUNDS--0.84% Liquid Assets Portfolio-Institutional Class (c) 6,765,681 6,765,681 STIC Prime Portfolio-Institutional Class (c) 6,765,681 6,765,681 Total Money Market Funds (Cost $13,531,362) 13,531,362 =============== TOTAL INVESTMENTS--100.28% (excluding investments purchased with cash collateral from securities loaned) (Cost $1,394,608,089) 1,610,009,296 ===============
F-6
SHARES VALUE ---------- --------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--2.62% Liquid Assets Portfolio-Institutional Class (c)(d) 20,997,091 $ 20,997,091 STIC Prime Portfolio-Institutional Class (c)(d) 20,997,090 20,997,090 Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $41,994,181) 41,994,181 --------------- TOTAL INVESTMENTS--102.90% (Cost $1,436,602,270) 1,652,003,477 OTHER ASSETS LESS LIABILITIES--(2.90%) (46,586,669) =============== NET ASSETS--100.00% $ 1,605,416,808 ===============
Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (c) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (d) The security has been segregated to satisfy the forward 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. F-7 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. F-8 A. SECURITY VALUATIONS - (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. F-9 NOTE 2 - INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission, 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED VALUE PURCHASES PROCEEDS FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 AT COST SALES (DEPRECIATION) 01/31/06 INCOME GAIN (LOSS) ---- ----------- ----------- ------------- -------------- ----------- -------- ----------- Liquid Assets Portfolio - Institutional Class $32,626,553 $48,723,479 $ (74,584,351) $-- $ 6,765,681 $107,201 $-- STIC Prime Portfolio - Institutional Class 32,626,553 48,723,479 (74,584,351) -- 6,765,681 107,751 -- ----------- ----------- ------------- --- ----------- -------- --- SUBTOTAL $65,253,106 $97,446,958 $(149,168,702) $-- $13,531,362 $214,952 $-- =========== =========== ============= === =========== ======== ===
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED VALUE PURCHASES PROCEEDS FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 AT COST SALES (DEPRECIATION) 01/31/06 INCOME* GAIN (LOSS) ---- ------------ ------------ ------------- -------------- ----------- -------- ----------- Liquid Assets Portfolio - Institutional Class $ 22,256,330 $ 24,738,127 $ (25,997,366) $-- $20,997,091 $ 45,485 $-- STIC Prime Portfolio - Institutional Class 22,256,329 24,738,127 (25,997,366) -- 20,997,090 45,765 -- ------------ ------------ ------------- --- ----------- -------- --- SUBTOTAL $ 44,512,659 $ 49,476,254 $ (51,994,732) $-- $41,994,181 $ 91,250 $-- ============ ============ ============= === =========== ======== === TOTAL $109,765,765 $146,923,212 $(201,163,434) $-- $55,525,543 $306,202 $-- ============ ============ ============= === =========== ======== ===
* 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 a loss on the collateral invested. At January 31, 2006, securities with an aggregate value of $41,020,750 were on loan to brokers. The loans were secured by cash collateral of $41,994,181 received by the Fund and subsequently invested in affiliated money market funds. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $91,251 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 and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $152,269,898 and $219,401,567 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 $241,344,665 Aggregate unrealized (depreciation) of investment securities (27,450,046) ------------ Net unrealized appreciation of investment securities $213,894,619 ============
Cost of investments for tax purposes is $ 1,438,108,858 F-11 AIM BLUE CHIP FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENT LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com BCH-QTR-1 1/06 AIM Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE --------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS--96.59% AEROSPACE & DEFENSE--5.11% Boeing Co. (The) 278,913 $ 19,052,547 --------------------------------------------------------------------------------------------------------------------------------- General Dynamics Corp. 172,160 20,032,538 --------------------------------------------------------------------------------------------------------------------------------- Lockheed Martin Corp. 505,039 34,165,888 --------------------------------------------------------------------------------------------------------------------------------- Precision Castparts Corp. 443,582 22,156,921 ================================================================================================================================= 95,407,894 ================================================================================================================================= APPLICATION SOFTWARE--2.39% Amdocs Ltd. (a) 828,093 26,664,595 --------------------------------------------------------------------------------------------------------------------------------- Autodesk, Inc. 443,769 18,012,584 ================================================================================================================================= 44,677,179 ================================================================================================================================= ASSET MANAGEMENT & CUSTODY BANKS--1.12% Franklin Resources, Inc. 211,862 20,868,407 ================================================================================================================================= BIOTECHNOLOGY--5.73% Amgen Inc. (a) 578,334 42,154,765 --------------------------------------------------------------------------------------------------------------------------------- Genentech, Inc. (a) 222,024 19,076,302 --------------------------------------------------------------------------------------------------------------------------------- Genzyme Corp. (a) 171,301 12,152,093 --------------------------------------------------------------------------------------------------------------------------------- Gilead Sciences, Inc. (a) 550,827 33,528,840 ================================================================================================================================= 106,912,000 ================================================================================================================================= COMMUNICATIONS EQUIPMENT--7.15% Cisco Systems, Inc. (a) 1,445,679 26,846,259 --------------------------------------------------------------------------------------------------------------------------------- Motorola, Inc. 2,424,981 55,071,319 --------------------------------------------------------------------------------------------------------------------------------- QUALCOMM Inc. 1,076,399 51,624,096 ================================================================================================================================= 133,541,674 ================================================================================================================================= COMPUTER HARDWARE--2.82% Apple Computer, Inc. (a) 506,555 38,249,968 --------------------------------------------------------------------------------------------------------------------------------- Dell Inc. (a) 491,778 14,414,013 ================================================================================================================================= 52,663,981 ================================================================================================================================= COMPUTER STORAGE & PERIPHERALS--1.67% EMC Corp. (a) 2,323,071 31,129,151 ================================================================================================================================= CONSUMER FINANCE--0.89% SLM Corp. 295,360 16,528,346 =================================================================================================================================
F-1
SHARES VALUE --------------------------------------------------------------------------------------------------------------------------------- DEPARTMENT STORES--3.25% J.C. Penney Co., Inc. 368,063 $ 20,537,915 --------------------------------------------------------------------------------------------------------------------------------- Nordstrom, Inc. (b) 960,809 40,084,951 ================================================================================================================================= 60,622,866 ================================================================================================================================= DIVERSIFIED METALS & MINING--1.97% BHP Billiton Ltd. (Australia) (c) 615,000 12,125,657 --------------------------------------------------------------------------------------------------------------------------------- Phelps Dodge Corp. 153,178 24,585,069 ================================================================================================================================= 36,710,726 ================================================================================================================================= GENERAL MERCHANDISE STORES--0.89% Target Corp. 302,193 16,545,067 ================================================================================================================================= HEALTH CARE DISTRIBUTORS--0.85% AmerisourceBergen Corp. 364,000 15,884,960 ================================================================================================================================= HEALTH CARE EQUIPMENT--1.49% Baxter International Inc. 245,723 9,054,893 --------------------------------------------------------------------------------------------------------------------------------- Varian Medical Systems, Inc. (a) 312,786 18,832,845 ================================================================================================================================= 27,887,738 ================================================================================================================================= HEALTH CARE SERVICES--1.91% Express Scripts, Inc. (a) 187,209 17,090,310 --------------------------------------------------------------------------------------------------------------------------------- Medco Health Solutions, Inc. (a) 343,706 18,594,495 ================================================================================================================================= 35,684,805 ================================================================================================================================= HEALTH CARE SUPPLIES--2.15% Alcon, Inc. 313,826 40,144,622 --------------------------------------------------------------------------------------------------------------------------------- HEAVY ELECTRICAL EQUIPMENT--0.75% ABB Ltd. (Switzerland) (a) (c) 1,276,534 13,922,883 ================================================================================================================================= HOME ENTERTAINMENT SOFTWARE--0.51% Electronic Arts Inc. (a) 175,000 9,551,500 ================================================================================================================================= HOME IMPROVEMENT RETAIL--2.13% Home Depot, Inc. (The) 981,982 39,819,370 ================================================================================================================================= HOUSEHOLD PRODUCTS--1.53% Procter & Gamble Co. (The) 481,039 28,491,940 ================================================================================================================================= INTEGRATED OIL & GAS--2.38% ConocoPhillips 492,122 31,840,293 --------------------------------------------------------------------------------------------------------------------------------- Occidental Petroleum Corp. 128,252 12,531,503 ================================================================================================================================= 44,371,796 =================================================================================================================================
F-2
SHARES VALUE --------------------------------------------------------------------------------------------------------------------------------- INTERNET RETAIL--0.98% eBay Inc. (a) 425,581 $ 18,342,541 ================================================================================================================================= INTERNET SOFTWARE & SERVICES--2.92% Google Inc.-Class A (a) 61,677 26,721,560 --------------------------------------------------------------------------------------------------------------------------------- Yahoo! Inc. (a) 807,275 27,721,824 ================================================================================================================================= 54,443,384 ================================================================================================================================= INVESTMENT BANKING & BROKERAGE--6.16% Goldman Sachs Group, Inc. (The) 393,005 55,511,956 --------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings Inc. 321,158 45,106,641 --------------------------------------------------------------------------------------------------------------------------------- Schwab (Charles) Corp. (The) 975,000 14,420,250 ================================================================================================================================= 115,038,847 ================================================================================================================================= LIFE & HEALTH INSURANCE--1.25% Prudential Financial, Inc. 309,619 23,326,695 ================================================================================================================================= MANAGED HEALTH CARE--9.63% Aetna Inc. 541,828 52,448,950 --------------------------------------------------------------------------------------------------------------------------------- CIGNA Corp. 213,249 25,931,078 --------------------------------------------------------------------------------------------------------------------------------- UnitedHealth Group Inc. 1,155,775 68,676,151 --------------------------------------------------------------------------------------------------------------------------------- WellPoint, Inc. (a) 426,609 32,763,571 ================================================================================================================================= 179,819,750 ================================================================================================================================= MULTI-LINE INSURANCE--1.20% Hartford Financial Services Group, Inc. (The) 271,473 22,323,225 ================================================================================================================================= OIL & GAS DRILLING--0.82% ENSCO International Inc. 298,410 15,254,719 ================================================================================================================================= OIL & GAS EXPLORATION & PRODUCTION--0.58% Devon Energy Corp. 159,608 10,886,862 ================================================================================================================================= OIL & GAS REFINING & MARKETING --2.29% Valero Energy Corp. 685,664 42,806,004 ================================================================================================================================= PHARMACEUTICALS--6.77% Allergan, Inc. 174,786 20,345,090 --------------------------------------------------------------------------------------------------------------------------------- Barr Pharmaceuticals Inc. (a) 219,355 14,385,301 --------------------------------------------------------------------------------------------------------------------------------- Johnson & Johnson 474,185 27,284,605 --------------------------------------------------------------------------------------------------------------------------------- Novartis A.G.-ADR (Switzerland) 475,457 26,226,208 --------------------------------------------------------------------------------------------------------------------------------- Roche Holding A.G. (Switzerland) 177,201 28,001,723 --------------------------------------------------------------------------------------------------------------------------------- Wyeth 217,212 10,046,055 ================================================================================================================================= 126,288,982 =================================================================================================================================
F-3
SHARES VALUE --------------------------------------------------------------------------------------------------------------------------------- PROPERTY & CASUALTY INSURANCE--0.73% Allstate Corp. (The) 261,901 $ 13,631,947 ================================================================================================================================= RAILROADS--3.78% Burlington Northern Santa Fe Corp. 620,624 49,724,395 --------------------------------------------------------------------------------------------------------------------------------- Canadian National Railway Co. (Canada) 229,967 20,786,717 ================================================================================================================================= 70,511,112 ================================================================================================================================= RESTAURANTS--1.30% YUM! Brands, Inc. 491,349 24,307,035 ================================================================================================================================= SEMICONDUCTOR EQUIPMENT--0.97% KLA-Tencor Corp. 349,669 18,175,795 ================================================================================================================================= SEMICONDUCTORS--6.49% Analog Devices, Inc. 962,358 38,272,978 --------------------------------------------------------------------------------------------------------------------------------- Freescale Semiconductor, Inc.-Class B (a) 602,208 15,205,752 --------------------------------------------------------------------------------------------------------------------------------- Marvell Technology Group Ltd. (a) 414,619 28,368,232 --------------------------------------------------------------------------------------------------------------------------------- Microchip Technology Inc. 376,359 14,117,226 --------------------------------------------------------------------------------------------------------------------------------- NVIDIA Corp. (a) 345,256 15,522,710 --------------------------------------------------------------------------------------------------------------------------------- Texas Instruments Inc. 328,304 9,596,326 ================================================================================================================================= 121,083,224 ================================================================================================================================= SOFT DRINKS--1.17% PepsiCo, Inc. 381,834 21,833,268 ================================================================================================================================= SYSTEMS SOFTWARE--1.86% Microsoft Corp. 1,232,582 34,697,183 ================================================================================================================================= THRIFTS & MORTGAGE FINANCE--1.00% MGIC Investment Corp. (b) 283,445 18,710,204 ================================================================================================================================= Total Common Stocks & Other Equity Interests (Cost $1,485,229,712) 1,802,847,682 ================================================================================================================================= MONEY MARKET FUNDS--3.85% Liquid Assets Portfolio-Institutional Class (d) 35,925,295 35,925,295 --------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class (d) 35,925,295 35,925,295 ================================================================================================================================= Total Money Market Funds (Cost $71,850,590) 71,850,590 ================================================================================================================================= TOTAL INVESTMENTS--100.44% (excluding investments purchased with cash collateral 1,874,698,272 from securities loaned) (Cost $1,557,080,302) =================================================================================================================================
F-4
SHARES VALUE --------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--0.95% Liquid Assets Portfolio-Institutional Class (d) (e) 17,777,580 $ 17,777,580 ================================================================================================================================= Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $17,777,580) 17,777,580 ================================================================================================================================= TOTAL INVESTMENTS--101.39% (Cost $1,574,857,882) 1,892,475,852 ================================================================================================================================= OTHER ASSETS LESS LIABILITIES--(1.39%) (26,006,905) ================================================================================================================================= NET ASSETS--100.00% $ 1,866,468,947 _________________________________________________________________________________________________________________________________ =================================================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (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 market value of these securities at January 31, 2006 was $26,048,540, which represented 1.40% of the Fund's Net Assets. See Note 1A. (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 forward 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. BCH-QTR-1 F-5 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. BCH-QTR-1 F-6 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. 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. 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 United States of America unless otherwise noted. D. 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. E. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between BCH-QTR-1 F-7 currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission, 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME (LOSS) ------------------------------------------------------------------------------------------------------------------------ Liquid Assets Portfolio- Institutional Class $ 26,833,535 $102,812,215 $ (93,720,455) $ -- $ 35,925,295 $ 220,973 $ -- ------------------------------------------------------------------------------------------------------------------------ STIC Prime Portfolio- Institutional Class 26,833,535 102,812,215 (93,720,455) -- 35,925,295 221,944 -- ======================================================================================================================== SUBTOTAL $ 53,667,070 $205,624,430 $(187,440,910) $ -- $ 71,850,590 $ 442,917 $ -- ------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME* (LOSS) ------------------------------------------------------------------------------------------------------------------------- STIC Prime $ 11,619,200 $104,683,535 $ (98,525,155) $ -- $17,777,580 $ 5,769 $ -- Portfolio- Institutional Class ========================================================================================================================= TOTAL $ 65,286,270 $310,307,965 $(285,966,065) $ -- $89,628,170 $448,686 $ -- =========================================================================================================================
* 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 a loss on the collateral invested. At January 31, 2006, securities with an aggregate value of $17,194,156 were on loan to brokers. The loans were secured by cash collateral of $17,777,580 received by the Fund and subsequently invested in affiliated money market funds. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $5,769 for securities lending transactions, which are net of rebates. BCH-QTR-1 F-8 NOTE 4 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $454,538,078 and $625,020,217, 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 $ 315,885,366 ------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (8,003,996) ========================================================================================== Net unrealized appreciation of investment securities $ 307,881,370 ========================================================================================== Cost of investments for tax purposes is $1,584,594,482.
BCH-QTR-1 F-9 AIM CAPTIAL DEVELOPMENT FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENT LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com CDV-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE ---------- -------------- COMMON STOCKS & OTHER EQUITY INTERESTS--98.00% ADVERTISING--2.44% Clear Channel Outdoor Holdings, Inc.-Class A (a) 664,484 $ 13,256,456 Omnicom Group Inc. 80,043 6,546,717 R.H. Donnelley Corp. (a) 217,142 14,248,858 -------------- 34,052,031 ============== AGRICULTURAL PRODUCTS--1.23% Archer-Daniels-Midland Co. 543,487 17,119,840 ============== AIR FREIGHT & LOGISTICS--1.05% Robinson (C.H.) Worldwide, Inc. 362,404 14,662,866 ============== APPAREL RETAIL--1.35% Abercrombie & Fitch Co.-Class A 213,564 14,178,514 DSW Inc.-Class A (a) 175,156 4,681,920 -------------- 18,860,434 ============== APPAREL, ACCESSORIES & LUXURY GOODS--1.45% Coach, Inc. (a) 181,200 6,514,140 Polo Ralph Lauren Corp. 240,568 13,625,772 -------------- 20,139,912 ============== APPLICATION SOFTWARE--4.76% Amdocs Ltd. (a) 505,488 16,276,714 Business Objects S.A.-ADR (France) (a)(b) 179,279 7,440,078 Cadence Design Systems, Inc. (a) 360,471 6,365,918 Citrix Systems, Inc. (a) 444,803 13,717,725 Synopsys, Inc. (a) 554,797 12,266,562 TIBCO Software Inc. (a) 1,286,967 10,282,866 -------------- 66,349,863 ============== ASSET MANAGEMENT & CUSTODY BANKS--1.02% Legg Mason, Inc. 110,075 14,276,727 ============== AUTOMOTIVE RETAIL--0.95% Advance Auto Parts, Inc. (a) 303,992 13,244,931 ==============
F-1
SHARES VALUE ---------- -------------- Biotechnology--1.47% Celgene Corp. (a) 100,000 $ 7,115,000 Cephalon, Inc. (a)(b) 96,688 6,854,212 CV Therapeutics, Inc. (a) 265,505 6,534,078 -------------- 20,503,290 ============== BROADCASTING & CABLE TV--0.94% Univision Communications Inc.-Class A (a) 410,800 13,079,872 ============== CASINOS & GAMING--2.00% Harrah's Entertainment, Inc. 174,000 12,806,400 Scientific Games Corp.-Class A (a) 468,176 15,005,041 -------------- 27,811,441 ============== COAL & CONSUMABLE FUELS--0.58% Aventine Renewable Energy Holdings, Inc. (Acquired 12/12/05-01/31/06; Cost $7,072,076) (a)(c)(d) 538,325 8,074,875 ============== COMMUNICATIONS EQUIPMENT--1.89% Comverse Technology, Inc. (a) 478,801 13,114,359 Harris Corp. 285,374 13,249,915 -------------- 26,364,274 ============== COMPUTER HARDWARE--0.80% Palm, Inc. (a)(b) 283,449 11,190,567 ============== COMPUTER STORAGE & PERIPHERALS--1.49% Emulex Corp. (a) 374,290 6,868,221 QLogic Corp. (a) 350,248 13,894,338 -------------- 20,762,559 ============== CONSTRUCTION & ENGINEERING--1.65% Chicago Bridge & Iron Co. N.V.-New York Shares 552,759 17,052,615 Foster Wheeler Ltd. (a) 122,090 6,012,933 -------------- 23,065,548 ============== CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--2.65% Cummins Inc. 73,340 7,135,982 Joy Global Inc. 205,207 11,089,386 Manitowoc Co., Inc. (The) 281,266 18,704,189 -------------- 36,929,557 ============== CONSUMER ELECTRONICS--0.98% Harman International Industries, Inc. 124,568 13,702,480 ============== CONSUMER FINANCE--1.30% AmeriCredit Corp. (a) 631,413 18,159,438 ==============
F-2
SHARES VALUE ---------- -------------- DATA PROCESSING & OUTSOURCED SERVICES--1.31% Alliance Data Systems Corp. (a) 433,103 $18,298,602 ============== DEPARTMENT STORES--1.12% Nordstrom, Inc. 372,905 15,557,597 ============== DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--2.77% ChoicePoint Inc. (a) 162,888 6,697,955 Corrections Corp. of America (a) 363,400 15,426,330 Global Cash Access, Inc. (a) 104,596 1,617,054 IHS Inc.-Class A (a) 613,585 14,885,572 -------------- 38,626,911 ============== DIVERSIFIED METALS & MINING--1.13% Phelps Dodge Corp. 98,520 15,812,460 ============== DRUG RETAIL--1.04% Shoppers Drug Mart Corp. (Canada) 389,900 14,525,183 ============== ELECTRICAL COMPONENTS & EQUIPMENT--1.06% Cooper Industries, Ltd.-Class A 180,800 14,762,320 ============== ELECTRONIC EQUIPMENT MANUFACTURERS--1.09% Amphenol Corp.-Class A 298,235 15,159,285 ============== ELECTRONIC MANUFACTURING SERVICES--0.69% Molex Inc. 186,327 5,636,392 Molex Inc.-Class A 146,398 4,044,977 -------------- 9,681,369 ============== GAS UTILITIES--0.94% Questar Corp. 160,000 13,036,800 ============== HEALTH CARE DISTRIBUTORS--1.03% Schein (Henry), Inc. (a) 306,662 14,302,716 ============== HEALTH CARE EQUIPMENT--3.48% Hologic, Inc. (a) 85,000 4,374,100 Kyphon Inc. (a) 160,000 6,651,200 PerkinElmer, Inc. 580,000 13,189,200 Thermo Electron Corp. (a) 410,382 13,805,250 Varian Medical Systems, Inc. (a) 175,000 10,536,750 -------------- 48,556,500 ==============
F-3
SHARES VALUE ---------- -------------- HEALTH CARE FACILITIES--1.69% Community Health Systems, Inc. (a) 351,338 $12,785,190 Psychiatric Solutions, Inc. (a) 328,000 10,820,720 -------------- 23,605,910 ============== HEALTH CARE SERVICES--3.94% Covance Inc. (a) 255,000 14,486,550 DaVita, Inc. (a) 240,000 13,140,000 Express Scripts, Inc. (a) 77,293 7,056,078 Omnicare, Inc. 260,000 12,922,000 Pharmaceutical Product Development, Inc. 106,433 7,363,035 -------------- 54,967,663 ============== HOTELS, RESORTS & CRUISE LINES--1.98% Hilton Hotels Corp. 579,300 14,441,949 Starwood Hotels & Resorts Worldwide, Inc. (e) 215,544 13,107,231 -------------- 27,549,180 ============== HOUSEWARES & SPECIALTIES--0.71% Jarden Corp. (a)(b) 400,376 9,865,265 ============== INDUSTRIAL MACHINERY--0.95% ITT Industries, Inc. 129,339 13,257,248 ============== INSURANCE BROKERS--0.65% National Financial Partners Corp. 168,389 9,010,495 ============== INTEGRATED OIL & GAS--1.33% CNX Gas Corp. (Acquired 08/01/05; Cost $3,379,200) (a)(c) 211,200 5,081,472 Murphy Oil Corp. 235,000 13,395,000 -------------- 18,476,472 ============== INTEGRATED TELECOMMUNICATION SERVICES--1.02% Qwest Communications International Inc. (a) 2,362,072 14,219,673 ============== INTERNET SOFTWARE & SERVICES--0.86% Websense, Inc. (a) 181,930 11,994,645 ============== INVESTMENT BANKING & BROKERAGE--0.90% Schwab (Charles) Corp. (The) 844,637 12,492,181 ============== INVESTMENT COMPANIES - EXCHANGE TRADED FUNDS--0.98% iShares Nasdaq Biotechnology Index Fund (a)(b) 170,000 13,688,400 ============== IT CONSULTING & OTHER SERVICES--1.05% Cognizant Technology Solutions Corp.-Class A (a) 279,684 14,647,051 ==============
F-4
SHARES VALUE ---------- -------------- MANAGED HEALTH CARE--3.55% Aveta, Inc. (Acquired 12/21/05; Cost $11,839,500) (a)(c)(d)(f) 877,000 $11,839,500 CIGNA Corp. 113,390 13,788,224 Coventry Health Care, Inc. (a) 233,128 13,887,435 Humana Inc. (a) 178,246 9,940,779 -------------- 49,455,938 ============== OIL & GAS DRILLING--3.04% Nabors Industries, Ltd. (a) 173,000 14,056,250 Noble Corp. 191,706 15,420,831 Todco-Class A 288,000 12,844,800 -------------- 42,321,881 ============== OIL & GAS EQUIPMENT & SERVICES--3.70% Grant Prideco, Inc. (a) 324,921 16,275,293 National-Oilwell Varco Inc. (a) 240,000 18,256,800 Weatherford International Ltd. (a) 380,000 17,016,400 -------------- 51,548,493 ============== OIL & GAS EXPLORATION & PRODUCTION--1.98% Rosetta Resources, Inc. (Acquired 06/28/05; Cost $12,241,600) (a)(c)(d) 765,100 13,771,800 Southwestern Energy Co. (a) 321,000 13,847,940 -------------- 27,619,740 ============== OIL & GAS REFINING & MARKETING--0.79% Tesoro Corp. 151,376 10,970,219 ============== OIL & GAS STORAGE & TRANSPORTATION--1.20% Williams Cos., Inc. (The) 700,000 16,688,000 ============== PAPER PACKAGING--0.67% Smurfit-Stone Container Corp. (a) 730,865 9,347,763 ============== PHARMACEUTICALS--1.61% Endo Pharmaceuticals Holdings Inc. (a) 370,992 10,647,470 Shire PLC-ADR (United Kingdom) 243,000 11,846,250 -------------- 22,493,720 ============== REAL ESTATE--1.24% Friedman, Billings, Ramsey Group, Inc.-Class A (b) 939,160 10,875,473 People's Choice Financial Corp. (Acquired 12/21/04-06/30/05; Cost $11,582,666) (a)(c)(d) 1,167,200 6,419,600 -------------- 17,295,073 ==============
F-5
SHARES VALUE ---------- -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT--1.36% CB Richard Ellis Group, Inc.-Class A (a) 300,000 $ 18,936,000 -------------- REGIONAL BANKS--1.33% Centennial Bank Holdings, Inc. (a)(b) 5,000 61,850 Centennial Bank Holdings, Inc. (Acquired 12/27/04; Cost $9,183,300) (a)(c)(f) 874,600 10,818,802 Signature Bank (a) 249,200 7,588,140 -------------- 18,468,792 ============== SEMICONDUCTOR EQUIPMENT--1.65% ASML Holding N.V.-New York Shares (Netherlands) (a) 502,561 11,352,853 MEMC Electronic Materials, Inc. (a) 406,144 11,607,596 -------------- 22,960,449 ============== SEMICONDUCTORS--6.46% Analog Devices, Inc. 346,925 13,797,207 ATI Technologies Inc. (Canada) (a)(b) 451,204 8,053,991 Integrated Device Technology, Inc. (a) 1,017,998 14,139,992 Marvell Technology Group Ltd. (a) 164,672 11,266,858 Microchip Technology Inc. 389,887 14,624,661 Microsemi Corp. (a) 345,856 10,527,857 National Semiconductor Corp. 370,500 10,451,805 Spansion Inc.-Class A (a) 551,200 7,165,600 -------------- 90,027,971 ============== SOFT DRINKS--0.52% Hansen Natural Corp. (a) 82,086 7,207,151 ============== SPECIALIZED FINANCE--1.13% Chicago Mercantile Exchange Holdings Inc. 37,080 15,694,110 ============== SPECIALTY STORES--1.06% Office Depot, Inc. (a) 447,683 14,840,691 ============== SYSTEMS SOFTWARE--0.70% Red Hat, Inc. (a) 339,019 9,814,600 ============== WIRELESS TELECOMMUNICATION SERVICES--4.29% American Tower Corp.-Class A (a) 950,348 29,403,767 Leap Wireless International, Inc. (a) 386,950 14,317,150 NII Holdings Inc. (a) 324,400 16,044,824 -------------- 59,765,741 ============== Total Common Stocks & Other Equity Interests (Cost $1,012,017,349) 1,365,900,763 ==============
F-6
SHARES VALUE ---------- -------------- MONEY MARKET FUNDS--3.40% Liquid Assets Portfolio-Institutional Class (g) 23,680,458 $ 23,680,458 STIC Prime Portfolio-Institutional Class (g) 23,680,458 23,680,458 -------------- Total Money Market Funds (Cost $47,360,916) 47,360,916 ============== TOTAL INVESTMENTS--101.40% (excluding investments purchased with cash collateral from securities loaned) (Cost $1,059,378,265) 1,413,261,679 ============== INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--3.21% Liquid Assets Portfolio-Institutional Class (g)(h) 22,358,049 22,358,049 STIC Prime Portfolio-Institutional Class (g)(h) 22,358,049 22,358,049 ============== Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $44,716,098) 44,716,098 ============== TOTAL INVESTMENTS--104.61% (Cost $1,104,094,363) 1,457,977,777 ============== OTHER ASSETS LESS LIABILITIES--(4.61%) (64,185,597) ============== NET ASSETS--100.00% $1,393,792,180 ==============
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (c) 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 only 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 aggregate value of these securities at January 31, 2006 was $56,006,049, which represented 4.02% of the Fund's Net Assets. Unless otherwise indicated, these securities are not considered to be illiquid. (d) Security considered to be illiquid. The Fund is limited to investing 15% of net assets in illiquid securities at the time of purchase. The aggregate value of these securities considered illiquid at January 31, 2006 was $40,105,775, which represented 2.88% of the Fund's Net Assets. (e) Each unit represents one common share and one Class B share. (f) Security fair valued in good faith in accordance with the procedures established by the Board of Trustees. The aggregate value of these securities at January 31, 2006 was $22,658,302, which represented 1.63% 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 forward 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. F-7 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, which may be considered fair valued, or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. 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 F-8 A. SECURITY VALUATIONS - (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. D. 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. E. FOREIGN CURRENCY CONTRACTS - A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a F-9 E. FOREIGN CURRENCY CONTRACTS - (CONTINUED) security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. F. PUT OPTIONS - The Fund may purchase put options. 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 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. 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 or sold. G. COLLATERAL - To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund's practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions. NOTE 2 - INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED VALUE PURCHASES AT PROCEEDS FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 COST SALES (DEPRECIATION) 01/31/06 INCOME GAIN (LOSS) ---- ------------ ------------ ------------- -------------- ----------- -------- ----------- Liquid Assets Portfolio-Institutional Class $24,940,812 $ 94,070,835 $ (95,331,189) $-- $23,680,458 $149,859 $-- STIC Prime Portfolio-Institutional Class 24,940,812 94,070,835 (95,331,189) -- 23,680,458 150,674 -- ----------- ------------ ------------- --- ----------- -------- ---- SUBTOTAL $49,881,624 $188,141,670 $(190,662,378) $-- $47,360,916 $300,533 $-- =========== ============ ============= === =========== ======== ====
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED VALUE PURCHASES AT PROCEEDS FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 COST SALES (DEPRECIATION) 01/31/06 INCOME* GAIN (LOSS) ---- ------------ ------------ ------------- -------------- ----------- -------- ----------- Liquid Assets Portfolio-Institutional Class $ 90,554,944 $ 25,461,736 $ (93,658,631) $-- $22,358,049 $ 14,442 $-- STIC Prime Portfolio-Institutional Class 90,554,944 25,461,736 (93,658,631) -- 22,358,049 14,559 -- SUBTOTAL $181,109,888 $ 50,923,472 $(187,317,262) $-- $44,716,098 $ 29,001 $-- ------------ ------------ ------------- ---- ----------- -------- ---- TOTAL $230,991,512 $239,065,142 $(377,979,640) $-- $92,077,014 $329,534 $-- ============ ============ ============= ==== =========== ======== ====
* Net of compensation to counterparties. F-10 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 a loss on the collateral invested. At January 31, 2006, securities with an aggregate value of $44,173,063 were on loan to brokers. The loans were secured by cash collateral of $44,716,098 received by the Fund and subsequently invested in affiliated money market funds. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $29,001 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 and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $441,516,203 and $455,161,767, 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 $360,706,324 Aggregate unrealized (depreciation) of investment securities (8,131,475) Net unrealized appreciation of investment securities $352,574,849
Cost of investments for tax purposes is $1,105,402,928. F-11 AIM CHARTER FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com CHT-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE --------- ----------- DOMESTIC COMMON STOCKS--71.89% AEROSPACE & DEFENSE--1.03% Northrop Grumman Corp. 407,549 $25,321,019 APPAREL RETAIL--0.57% Gap, Inc. (The) 777,891 14,072,048 ASSET MANAGEMENT & CUSTODY BANKS--0.97% Bank of New York Co., Inc. (The) 747,701 23,784,369 BIOTECHNOLOGY--0.95% Amgen Inc. (a) 320,000 23,324,800 BUILDING PRODUCTS--1.49% Masco Corp. 1,232,490 36,543,328 COMMUNICATIONS EQUIPMENT--2.02% Cisco Systems, Inc. (a) 2,676,000 49,693,320 COMPUTER HARDWARE--1.29% International Business Machines Corp. 391,163 31,801,552 COMPUTER STORAGE & PERIPHERALS--0.87% Lexmark International, Inc.-Class A (a) 439,334 21,338,452 ELECTRIC UTILITIES--0.96% FPL Group, Inc. 566,600 23,678,214 ENVIRONMENTAL & FACILITIES SERVICES--1.51% Waste Management, Inc. 1,176,469 37,152,891 FOOD RETAIL--1.23% Kroger Co. (The) (a) 1,643,597 30,242,185 HOMEFURNISHING RETAIL--1.04% Bed Bath & Beyond Inc. (a) 680,877 25,471,609
F-1
SHARES VALUE --------- ----------- INDUSTRIAL CONGLOMERATES--3.47% General Electric Co. 961,772 $31,498,033 Tyco International Ltd. 2,065,118 53,796,324 ----------- 85,294,357 =========== INDUSTRIAL MACHINERY--1.15% Dover Corp. 614,819 28,238,637 INSURANCE BROKERS--0.95% Marsh & McLennan Cos., Inc. 770,000 23,400,300 INTEGRATED OIL & GAS--3.44% Exxon Mobil Corp. 943,276 59,190,569 Murphy Oil Corp. 447,020 25,480,140 ----------- 84,670,709 =========== INTEGRATED TELECOMMUNICATION SERVICES--1.59% AT&T Inc. 1,502,591 38,992,236 INVESTMENT BANKING & BROKERAGE--2.13% Merrill Lynch & Co., Inc. 353,951 26,571,102 Morgan Stanley 420,432 25,835,546 ----------- 52,406,648 =========== IT CONSULTING & OTHER SERVICES--1.18% Accenture Ltd.-Class A 918,466 28,959,233 MOVIES & ENTERTAINMENT--1.93% News Corp.-Class A 2,205,000 34,750,800 Walt Disney Co. (The) 499,000 12,629,690 ----------- 47,380,490 =========== MULTI-LINE INSURANCE--1.93% American International Group, Inc. 355,866 23,294,988 Genworth Financial Inc.-Class A 736,000 24,111,360 ----------- 47,406,348 =========== OFFICE ELECTRONICS--2.17% Xerox Corp. (a) 3,721,300 53,251,803 OIL & GAS EQUIPMENT & SERVICES--3.71% BJ Services Co. 443,400 17,953,266 Schlumberger Ltd. 237,199 30,231,013 Smith International, Inc. 958,708 43,141,860 ----------- 91,326,139 ===========
F-2
SHARES VALUE --------- ------------ OIL & GAS EXPLORATION & PRODUCTION--1.12% Apache Corp. 365,200 $ 27,583,556 OTHER DIVERSIFIED FINANCIAL SERVICES--0.96% Citigroup Inc. 504,000 23,476,320 PACKAGED FOODS & MEATS--0.99% General Mills, Inc. 500,363 24,322,645 PERSONAL PRODUCTS--3.35% Avon Products, Inc. 1,203,358 34,079,099 Estee Lauder Cos. Inc. (The)-Class A 1,326,140 48,364,326 ------------ 82,443,425 ============ PHARMACEUTICALS--6.90% Bristol-Myers Squibb Co. 1,635,000 37,261,650 Forest Laboratories, Inc. (a) 884,000 40,911,520 Merck & Co. Inc. 1,680,317 57,970,936 Wyeth 726,720 33,610,800 ------------ 169,754,906 ============ PROPERTY & CASUALTY INSURANCE--7.13% ACE Ltd. 677,903 37,115,189 Berkshire Hathaway Inc.-Class A (a) 630 56,378,700 Chubb Corp. (The) 254,978 24,057,174 St. Paul Travelers Cos., Inc. (The) 527,826 23,952,744 XL Capital Ltd.-Class A 499,068 33,766,941 ------------ 175,270,748 ============ PUBLISHING--1.50% Gannett Co., Inc. 595,123 36,778,601 RAILROADS--1.43% Union Pacific Corp. 397,000 35,118,620 REGIONAL BANKS--1.01% North Fork Bancorp., Inc. 967,333 24,879,805 SEMICONDUCTORS--3.71% Analog Devices, Inc. 944,356 37,557,038 Intel Corp. 1,316,300 27,997,701 Xilinx, Inc. 915,000 25,766,400 ------------ 91,321,139 ============ SOFT DRINKS--1.52% Coca-Cola Co. (The) 905,036 37,450,390
F-3
SHARES VALUE --------- -------------- SYSTEMS SOFTWARE--4.69% Computer Associates International, Inc. 1,138,452 $ 31,079,740 Microsoft Corp. 2,072,845 58,350,587 Symantec Corp. (a) 1,414,925 26,006,322 -------------- 115,436,649 ============== Total Domestic Common Stocks (Cost $1,502,086,750) 1,767,587,491 ============== FOREIGN STOCKS & OTHER EQUITY INTERESTS--16.66% ARGENTINA--1.01% Tenaris S.A.-ADR (Oil & Gas Equipment & Services) 152,728 24,810,663 FINLAND --1.50% Nokia Oyj-ADR (Communications Equipment) 2,008,042 36,907,812 FRANCE--1.06% TOTAL S.A. (Integrated Oil & Gas) (b) 94,292 26,065,225 ISRAEL--0.99% Teva Pharmaceutical Industries Ltd.-ADR (Pharmaceuticals) (c) 573,334 24,441,228 JAPAN--0.59% Nintendo Co., Ltd. (Home Entertainment Software) (b) 106,200 14,547,972 NETHERLANDS--5.21% Heineken N.V. (Brewers) (b) 1,347,106 47,376,327 Koninklijke (Royal) Philips Electronics N.V. (Consumer Electronics) 1,452,112 49,024,803 Unilever N.V. (Packaged Foods & Meats) (b) 450,000 31,587,599 -------------- 127,988,729 ============== SOUTH KOREA--0.38% SK Telecom Co., Ltd.-ADR (Wireless Telecommunication Services) 405,017 9,408,545 SWITZERLAND--1.11% UBS A.G. (Diversified Capital Markets) 250,000 27,184,542
F-4
SHARES VALUE ----------- -------------- UNITED KINGDOM--4.81% Barclays PLC (Diversified Banks) 2,431,648 $ 26,000,131 Cadbury Schweppes PLC (Packaged Foods & Meats) (b) 4,685,857 46,040,396 GlaxoSmithKline PLC-ADR (Pharmaceuticals) 904,000 46,320,960 -------------- 118,361,487 ============== Total Foreign Stocks & Other Equity Interests (Cost $337,627,411) 409,716,203 ============== MONEY MARKET FUNDS--11.83% Liquid Assets Portfolio-Institutional Class (d) 145,514,921 145,514,921 STIC Prime Portfolio-Institutional Class (d) 145,514,921 145,514,921 Total Money Market Funds (Cost $291,029,842) 291,029,842 ============== TOTAL INVESTMENTS--100.38% (excluding investments purchased with cash collateral from securities loaned) (Cost $2,130,744,003) 2,468,333,536 ============== INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--0.77% Liquid Assets Portfolio-Institutional Class (d)(e) 18,876,000 18,876,000 Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $18,876,000) 18,876,000 ============== TOTAL INVESTMENTS--101.15% (Cost $2,149,620,003) 2,487,209,536 ============== OTHER ASSETS LESS LIABILITIES--(1.15%) (28,375,283) ============== NET ASSETS--100.00% $2,458,834,253 ==============
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (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 January 31, 2006 was $165,617,519, which represented 6.74% of the Fund's Net Assets. See Note 1A. (c) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (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 forward 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. F-5 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. F-6 A. SECURITY VALUATIONS - (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. D. 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. F-7 E. FOREIGN CURRENCY CONTRACTS - A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. F. COVERED CALL OPTIONS - The Fund may write call options, on a covered basis; that is, the Fund will own the underlying security. When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability. The amount of the liability is subsequently "marked-to-market" to reflect the current market value of the option written. The current market value of a written option is the mean between the last bid and asked prices on that day. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. G. COLLATERAL - To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund's practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions. F-8 NOTE 2 - INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED VALUE PURCHASES PROCEEDS FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 AT COST SALES (DEPRECIATION) 01/31/06 INCOME GAIN (LOSS) ---- ----------- ------------ ------------- -------------- ------------ ---------- ----------- Liquid Assets Portfolio- Institutional Class $45,347,942 $222,487,169 $(122,320,190) $-- $145,514,921 $ 760,499 $-- STIC Prime Portfolio- Institutional Class 45,347,942 222,487,169 (122,320,190) -- 145,514,921 764,329 -- ----------- ------------ ------------- --- ------------ ---------- --- SUBTOTAL $90,695,884 $444,974,338 $(244,640,380) $-- $291,029,842 $1,524,828 $-- =========== ============ ============= === ============ ========== ===
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED VALUE PURCHASES PROCEEDS FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 AT COST SALES (DEPRECIATION) 01/31/06 INCOME* GAIN (LOSS) ---- ------------ ------------ ------------- -------------- ------------ ---------- ----------- Liquid Assets Portfolio- Institutional Class $ 12,733,065 $ 79,535,270 $ (73,392,335) $-- $ 18,876,000 $ 38,846 $-- ------------ ------------ ------------- --- ------------ ---------- --- TOTAL $103,428,949 $524,509,608 $(318,032,715) $-- $309,905,842 $1,563,674 $-- ============ ============ ============= === ============ ========== ===
* Net of compensation to counterparties. F-9 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 a loss on the collateral invested. At January 31, 2006, a securities with an aggregate value of $18,288,270 were on loan to brokers. The loans were secured by cash collateral of $18,876,000 received by the Fund and subsequently invested in affiliated money market funds. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $38,846 for securities lending transactions, which are net of compensation to counterparties. NOTE 4 - OPTION CONTRACTS WRITTEN TRANSACTIONS DURING THE PERIOD
CALL OPTION CONTRACTS ----------------------- NUMBER OF PREMIUMS CONTRACTS RECEIVED --------- ----------- Beginning of period 12,500 $ 1,334,936 Exercised (12,500) (1,334,936) ------- ----------- End of period -- $ -- ======= ===========
NOTE 5 - INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the three months ended January 31, 2005 was $322,832,420 and $599,734,115, 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 $319,224,200 Aggregate unrealized (depreciation) of investment securities (29,722,160) ------------ Net unrealized appreciation of investment securities $289,502,040 ============
Cost of investments for tax purposes is $2,197,707,496. F-10 AIM CONSTELLATION FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com CST-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE -------------------------------------------------------------------------------------------------------------------------------- DOMESTIC COMMON STOCKS--88.68% AEROSPACE & DEFENSE--2.29% Boeing Co. (The) 825,000 $ 56,355,750 -------------------------------------------------------------------------------------------------------------------------------- General Dynamics Corp. 350,000 40,726,000 -------------------------------------------------------------------------------------------------------------------------------- Precision Castparts Corp. 600,000 29,970,000 ================================================================================================================================ 127,051,750 ================================================================================================================================ APPAREL RETAIL--1.07% AnnTaylor Stores Corp. (a) 900,000 29,988,000 -------------------------------------------------------------------------------------------------------------------------------- Chico's FAS, Inc. (a) 675,000 29,403,000 ================================================================================================================================ 59,391,000 ================================================================================================================================ APPLICATION SOFTWARE--1.42% Amdocs Ltd. (a) 1,725,000 55,545,000 -------------------------------------------------------------------------------------------------------------------------------- Hyperion Solutions Corp. (a) 675,000 23,226,750 ================================================================================================================================ 78,771,750 ================================================================================================================================ ASSET MANAGEMENT & CUSTODY BANKS--0.53% Franklin Resources, Inc. 300,000 29,550,000 ================================================================================================================================ BIOTECHNOLOGY--4.26% Amgen Inc. (a) 1,060,000 77,263,400 -------------------------------------------------------------------------------------------------------------------------------- Genentech, Inc. (a) 309,000 26,549,280 -------------------------------------------------------------------------------------------------------------------------------- Genzyme Corp. (a) 400,000 28,376,000 -------------------------------------------------------------------------------------------------------------------------------- Gilead Sciences, Inc. (a) 1,230,600 74,906,622 -------------------------------------------------------------------------------------------------------------------------------- PDL BioPharma, Inc. (a) 1,000,000 29,150,000 ================================================================================================================================ 236,245,302 ================================================================================================================================ COMMUNICATIONS EQUIPMENT--3.99% Cisco Systems, Inc. (a) 4,500,000 83,565,000 -------------------------------------------------------------------------------------------------------------------------------- Harris Corp. 196,110 9,105,387 -------------------------------------------------------------------------------------------------------------------------------- QUALCOMM Inc. 2,300,000 110,308,000 -------------------------------------------------------------------------------------------------------------------------------- Redback Networks Inc. (a) 1,083,497 18,256,924 ================================================================================================================================ 221,235,311 ================================================================================================================================ COMPUTER & ELECTRONICS RETAIL--0.53% Best Buy Co., Inc. 575,000 29,129,500 ================================================================================================================================
CST-QTR-1 F-1
SHARES VALUE -------------------------------------------------------------------------------------------------------------------------------- COMPUTER HARDWARE--3.47% Apple Computer, Inc. (a) 2,000,000 $ 151,020,000 -------------------------------------------------------------------------------------------------------------------------------- Dell Inc. (a) 1,400,000 41,034,000 ================================================================================================================================ 192,054,000 ================================================================================================================================ COMPUTER STORAGE & PERIPHERALS--1.45% EMC Corp. (a) 6,000,000 80,400,000 ================================================================================================================================ CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.81% Caterpillar Inc. 350,000 23,765,000 -------------------------------------------------------------------------------------------------------------------------------- Oshkosh Truck Corp. 425,000 20,956,750 ================================================================================================================================ 44,721,750 ================================================================================================================================ CONSUMER ELECTRONICS--1.55% Garmin Ltd. (b) 500,000 31,105,000 -------------------------------------------------------------------------------------------------------------------------------- Harman International Industries, Inc. 500,000 55,000,000 ================================================================================================================================ 86,105,000 ================================================================================================================================ CONSUMER FINANCE--1.49% American Express Co. 528,930 27,742,378 -------------------------------------------------------------------------------------------------------------------------------- SLM Corp. 975,000 54,561,000 ================================================================================================================================ 82,303,378 ================================================================================================================================ DATA PROCESSING & OUTSOURCED SERVICES--0.45% Electronic Data Systems Corp. 1,000,000 25,190,000 ================================================================================================================================ DEPARTMENT STORES--1.57% Federated Department Stores, Inc. 825,000 54,969,750 -------------------------------------------------------------------------------------------------------------------------------- J.C. Penney Co., Inc. 575,000 32,085,000 ================================================================================================================================ 87,054,750 ================================================================================================================================ DIVERSIFIED BANKS--0.74% Bank of America Corp. 925,000 40,912,750 ================================================================================================================================ DIVERSIFIED METALS & MINING--0.87% Phelps Dodge Corp. 300,000 48,150,000 ================================================================================================================================ ELECTRICAL COMPONENTS & EQUIPMENT--1.67% Emerson Electric Co. 750,000 58,087,500 -------------------------------------------------------------------------------------------------------------------------------- Rockwell Automation, Inc. 525,000 34,686,750 ================================================================================================================================ 92,774,250 ================================================================================================================================
CST-QTR-1 F-2
SHARES VALUE -------------------------------------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT MANUFACTURERS--0.61% Agilent Technologies, Inc. (a) 1,000,000 $ 33,910,000 ================================================================================================================================ FERTILIZERS & AGRICULTURAL CHEMICALS--0.76% Monsanto Co. 500,000 42,305,000 ================================================================================================================================ GENERAL MERCHANDISE STORES--0.94% Target Corp. 950,000 52,012,500 ================================================================================================================================ HEALTH CARE EQUIPMENT--2.69% Medtronic, Inc. 700,000 39,529,000 -------------------------------------------------------------------------------------------------------------------------------- St. Jude Medical, Inc. (a) 1,000,000 49,130,000 -------------------------------------------------------------------------------------------------------------------------------- Varian Medical Systems, Inc. (a) 1,000,000 60,210,000 ================================================================================================================================ 148,869,000 ================================================================================================================================ HEALTH CARE SERVICES--2.07% Caremark Rx, Inc. (a) 1,550,091 76,419,486 -------------------------------------------------------------------------------------------------------------------------------- Omnicare, Inc. 774,956 38,515,313 ================================================================================================================================ 114,934,799 ================================================================================================================================ HEALTH CARE SUPPLIES--1.56% Alcon, Inc. 677,400 86,653,008 ================================================================================================================================ HOME ENTERTAINMENT SOFTWARE--0.89% Electronic Arts Inc. (a) 900,000 49,122,000 ================================================================================================================================ HOME IMPROVEMENT RETAIL--0.95% Home Depot, Inc. (The) 1,300,000 52,715,000 ================================================================================================================================ HOUSEHOLD PRODUCTS--1.63% Procter & Gamble Co. (The) 1,525,950 90,382,019 ================================================================================================================================ HUMAN RESOURCE & EMPLOYMENT SERVICES--0.96% Robert Half International Inc. 1,450,000 52,968,500 ================================================================================================================================ INDUSTRIAL CONGLOMERATES--1.64% Textron Inc. 1,075,000 90,794,500 ================================================================================================================================ INDUSTRIAL MACHINERY--0.82% Parker Hannifin Corp. 600,000 45,462,000 ================================================================================================================================ INTEGRATED OIL & GAS--2.26% ConocoPhillips 800,000 51,760,000 -------------------------------------------------------------------------------------------------------------------------------- Occidental Petroleum Corp. 750,000 73,282,500 ================================================================================================================================ 125,042,500 ================================================================================================================================
CST-QTR-1 F-3
SHARES VALUE -------------------------------------------------------------------------------------------------------------------------------- INTERNET RETAIL--1.58% eBay Inc. (a) 2,025,000 $ 87,277,500 -------------------------------------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--3.24% Google Inc.-Class A (a) 210,000 90,982,500 -------------------------------------------------------------------------------------------------------------------------------- Yahoo! Inc. (a) 2,575,000 88,425,500 ================================================================================================================================ 179,408,000 ================================================================================================================================ INVESTMENT BANKING & BROKERAGE--3.64% Goldman Sachs Group, Inc. (The) 550,000 77,687,500 -------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc. 775,000 58,179,250 -------------------------------------------------------------------------------------------------------------------------------- Schwab (Charles) Corp. (The) 4,450,000 65,815,500 ================================================================================================================================ 201,682,250 ================================================================================================================================ MANAGED HEALTH CARE--5.53% Aetna Inc. 1,250,000 121,000,000 -------------------------------------------------------------------------------------------------------------------------------- CIGNA Corp. 610,000 74,176,000 -------------------------------------------------------------------------------------------------------------------------------- UnitedHealth Group Inc. 450,000 26,739,000 -------------------------------------------------------------------------------------------------------------------------------- WellPoint, Inc. (a) 1,100,000 84,480,000 ================================================================================================================================ 306,395,000 ================================================================================================================================ MULTI-LINE INSURANCE--0.54% Assurant, Inc. 650,000 29,848,000 ================================================================================================================================ OIL & GAS DRILLING--1.64% ENSCO International Inc. 1,000,000 51,120,000 -------------------------------------------------------------------------------------------------------------------------------- GlobalSantaFe Corp. 650,000 39,682,500 ================================================================================================================================ 90,802,500 ================================================================================================================================ OIL & GAS EQUIPMENT & SERVICES--2.01% Baker Hughes Inc. 700,000 54,208,000 -------------------------------------------------------------------------------------------------------------------------------- National-Oilwell Varco Inc. (a) 750,000 57,052,500 ================================================================================================================================ 111,260,500 ================================================================================================================================ OIL & GAS EXPLORATION & PRODUCTION--2.37% Apache Corp. 600,000 45,318,000 -------------------------------------------------------------------------------------------------------------------------------- Devon Energy Corp. 800,000 54,568,000 -------------------------------------------------------------------------------------------------------------------------------- Newfield Exploration Co. (a) 600,000 31,440,000 ================================================================================================================================ 131,326,000 ================================================================================================================================ OIL & GAS REFINING & MARKETING --2.09% Sunoco, Inc. 300,000 28,560,000 -------------------------------------------------------------------------------------------------------------------------------- Valero Energy Corp. (b) 1,400,000 87,402,000 ================================================================================================================================ 115,962,000 ================================================================================================================================ PACKAGED FOODS & MEATS--0.45% Kellogg Co. 577,184 24,761,194 ================================================================================================================================
CST-QTR-1 F-4
SHARES VALUE -------------------------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS--2.80% Allergan, Inc. 275,000 $ 32,010,000 -------------------------------------------------------------------------------------------------------------------------------- Johnson & Johnson 1,175,000 67,609,500 -------------------------------------------------------------------------------------------------------------------------------- Medicis Pharmaceutical Corp.-Class A 840,000 25,964,400 -------------------------------------------------------------------------------------------------------------------------------- Wyeth 642,800 29,729,500 ================================================================================================================================ 155,313,400 ================================================================================================================================ PROPERTY & CASUALTY INSURANCE--0.94% Allstate Corp. (The) 1,000,000 52,050,000 ================================================================================================================================ RAILROADS--1.48% Burlington Northern Santa Fe Corp. 1,025,000 82,123,000 ================================================================================================================================ SEMICONDUCTOR EQUIPMENT--0.61% KLA-Tencor Corp. 650,000 33,787,000 ================================================================================================================================ SEMICONDUCTORS--7.65% Analog Devices, Inc. 2,550,000 101,413,500 -------------------------------------------------------------------------------------------------------------------------------- Freescale Semiconductor Inc.-Class B (a) 3,150,000 79,537,500 -------------------------------------------------------------------------------------------------------------------------------- Integrated Device Technology, Inc. (a) 1,595,990 22,168,301 -------------------------------------------------------------------------------------------------------------------------------- Marvell Technology Group Ltd. (a) 1,146,000 78,409,320 -------------------------------------------------------------------------------------------------------------------------------- Microchip Technology Inc. 3,000,052 112,531,951 -------------------------------------------------------------------------------------------------------------------------------- NVIDIA Corp. (a) 675,000 30,348,000 ================================================================================================================================ 424,408,572 ================================================================================================================================ SOFT DRINKS--0.62% PepsiCo, Inc. 600,000 34,308,000 ================================================================================================================================ SPECIALIZED FINANCE--0.40% Chicago Mercantile Exchange Holdings Inc. 52,654 22,285,806 ================================================================================================================================ SPECIALTY STORES--2.55% Office Depot, Inc. (a) 2,700,000 89,505,000 -------------------------------------------------------------------------------------------------------------------------------- Tiffany & Co. 1,380,000 52,026,000 ================================================================================================================================ 141,531,000 ================================================================================================================================ SYSTEMS SOFTWARE--2.22% McAfee Inc. (a) 1,400,000 32,466,000 -------------------------------------------------------------------------------------------------------------------------------- Microsoft Corp. 2,000,000 56,300,000 -------------------------------------------------------------------------------------------------------------------------------- Red Hat, Inc. (a) 1,191,804 34,502,726 ================================================================================================================================ 123,268,726 ================================================================================================================================
CST-QTR-1 F-5
SHARES VALUE -------------------------------------------------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--0.38% WESCO International, Inc. (a) 433,549 $ 20,780,004 ================================================================================================================================ Total Domestic Common Stocks (Cost $3,651,563,496) 4,914,789,769 ================================================================================================================================ FOREIGN STOCKS & OTHER EQUITY INTERESTS--11.05% AUSTRALIA--0.57% BHP Billiton Ltd. (Diversified Metals & Mining) (c) 1,600,000 31,546,426 ================================================================================================================================ BRAZIL--0.74% Companhia Vale do Rio Doce-ADR (Steel) 800,000 41,016,000 ================================================================================================================================ FINLAND --1.33% Nokia Oyj-ADR (Communications Equipment) 4,000,000 73,520,000 ================================================================================================================================ ISRAEL--0.80% Teva Pharmaceutical Industries Ltd.-ADR (Pharmaceuticals) 1,039,283 44,304,634 ================================================================================================================================ JAPAN--3.21% Komatsu Ltd. (Construction & Farm Machinery & Heavy Trucks) (c) 2,090,000 38,500,505 -------------------------------------------------------------------------------------------------------------------------------- Matsushita Electric Industrial Co., Ltd. (Consumer Electronics) (c) 1,441,000 31,349,134 -------------------------------------------------------------------------------------------------------------------------------- Matsushita Electric Industrial Co., Ltd.-ADR (Consumer Electronics) 171,000 3,722,670 -------------------------------------------------------------------------------------------------------------------------------- Millea Holdings, Inc. (Property & Casualty Insurance) 2,000 38,354,997 -------------------------------------------------------------------------------------------------------------------------------- Mitsui O.S.K. Lines, Ltd. (Marine) (c) 5,400,000 48,842,411 -------------------------------------------------------------------------------------------------------------------------------- Mitsui Sumitomo Insurance Co., Ltd. (Property & Casualty Insurance) 1,400,000 17,183,039 ================================================================================================================================ 177,952,756 ================================================================================================================================ NETHERLANDS--0.83% ASML Holding N.V.-New York Shares (Semiconductor Equipment) (a) 2,025,000 45,744,750 ================================================================================================================================ SOUTH KOREA--0.70% Kookmin Bank (Diversified Banks) (c) 487,000 38,806,346 ================================================================================================================================ SWITZERLAND--2.34% ABB Ltd. (Heavy Electrical Equipment) (a)(c) 5,350,000 58,351,306 -------------------------------------------------------------------------------------------------------------------------------- Roche Holding A.G. (Pharmaceuticals) 450,000 71,110,068 ================================================================================================================================ 129,461,374 ================================================================================================================================
CST-QTR-1 F-6
SHARES VALUE -------------------------------------------------------------------------------------------------------------------------------- UNITED KINGDOM--0.53% Rio Tinto PLC (Diversified Metals & Mining) (c) 570,000 $ 29,155,456 ================================================================================================================================ Total Foreign Stocks & Other Equity Interests (Cost $502,751,979) 611,507,742 ================================================================================================================================ MONEY MARKET FUNDS--1.31% Liquid Assets Portfolio-Institutional Class (d) 36,369,792 36,369,792 -------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class (d) 36,369,792 36,369,792 ================================================================================================================================ Total Money Market Funds (Cost $72,739,584) 72,739,584 ================================================================================================================================ TOTAL INVESTMENTS--101.04% (excluding investments purchased with cash collateral from securities loaned) (Cost $4,227,055,059) 5,599,037,095 ================================================================================================================================ INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--0.50% STIC Prime Portfolio-Institutional Class (d)(e) 27,653,828 27,653,828 ================================================================================================================================ Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $27,653,828) 27,653,828 ================================================================================================================================ TOTAL INVESTMENTS--101.54% (Cost $4,254,708,887) 5,626,690,923 ================================================================================================================================ OTHER ASSETS LESS LIABILITIES--(1.54%) (85,076,306) ================================================================================================================================ NET ASSETS--100.00% $ 5,541,614,617 ================================================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (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 January 31, 2006 was $ 276,551,584, which represented 4.99% of the Fund's Net Assets. See Note 1A. (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 forward 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. CST-QTR-1 F-7 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, which may be considered fair valued, or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. 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 CST-QTR-1 F-8 A. SECURITY VALUATIONS -- (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. D. 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. E. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a CST-QTR-1 F-9 E. FOREIGN CURRENCY CONTRACTS -- (CONTINUED) security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME (LOSS) ------------------------------------------------------------------------------------------------------------------ Liquid Assets Portfolio- Institutional Class $ 3,677,810 $ 251,253,464 $(218,561,482) $ -- $ 36,369,792 $ 192,308 $ -- ------------------------------------------------------------------------------------------------------------------ STIC Prime Portfolio- Institutional Class 3,677,810 251,253,464 (218,561,482) -- 36,369,792 193,173 -- ================================================================================================================== SUBTOTAL $ 7,355,620 $ 502,506,928 $(437,122,964) $ -- $ 72,739,584 $ 385,481 $ -- ==================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME* (LOSS) ----------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio- Institutional Class $ 16,220,215 $ 71,000,941 $ (59,567,328) $ -- $ 27,653,828 $ 91,418 $ -- ================================================================================================================= TOTAL $ 23,575,835 $573,507,869 $(496,690,292) $ -- $100,393,412 $476,899 $ -- =================================================================================================================
* 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 CST-QTR-1 F-10 NOTE 3 -- PORTFOLIO SECURITIES LOANED -- (CONTINUED) 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 a loss on the collateral invested. At January 31, 2006 securities with an aggregate value of $26,605,843 were on loan to brokers. The loans were secured by cash collateral of $27,653,828 received by the Fund and subsequently invested in an affiliated money market fund. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $91,418 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 and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $1,369,038,946 and $1,646,081,582, 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 $ 1,407,474,075 ------------------------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (38,073,409) ================================================================================================================== Net unrealized appreciation of investment securities $ 1,369,400,666 ================================================================================================================== Cost of investments for tax purposes is $4,257,290,257.
CST-QTR-1 F-11 AIM DIVERSIFIED DIVIDEND FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com DDI-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE --------- ------------ COMMON STOCKS--96.94% AEROSPACE & DEFENSE--4.46% Honeywell International Inc. 473,100 $ 18,176,502 Raytheon Co. 600,400 24,598,388 United Technologies Corp. 744,600 43,462,302 ------------ 86,237,192 ============ ALUMINUM--0.57% Alcoa Inc. 347,000 10,930,500 APPAREL RETAIL--3.18% Limited Brands, Inc. 1,576,600 37,302,356 TJX Cos., Inc. (The) 945,400 24,136,062 ------------ 61,438,418 ============ APPAREL, ACCESSORIES & LUXURY GOODS--0.87% V. F. Corp. 301,300 16,716,124 ASSET MANAGEMENT & CUSTODY BANKS--3.04% Bank of New York Co., Inc. (The) 607,600 19,327,756 Federated Investors, Inc.-Class B 409,600 15,814,656 State Street Corp. 390,400 23,603,584 ------------ 58,745,996 ============ AUTO PARTS & EQUIPMENT--1.14% Johnson Controls, Inc. 316,800 21,935,232 BREWERS--1.39% Anheuser-Busch Cos., Inc. 650,100 26,940,144 CASINOS & GAMING--1.02% International Game Technology 550,441 19,694,779 COMPUTER HARDWARE--3.15% Hewlett-Packard Co. 906,800 28,274,024 International Business Machines Corp. 400,100 32,528,130 ------------ 60,802,154 ============ CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--1.59% Deere & Co. 429,200 30,799,392
F-1
SHARES VALUE --------- ------------ DATA PROCESSING & OUTSOURCED SERVICES--1.90% Automatic Data Processing, Inc. 290,000 $ 12,742,600 First Data Corp. 531,300 23,961,630 ------------ 36,704,230 ============ DISTRIBUTORS--0.66% Genuine Parts Co. 300,300 12,771,759 DIVERSIFIED BANKS--2.43% Bank of America Corp. 422,500 18,687,175 U.S. Bancorp 419,200 12,538,272 Wachovia Corp. 287,500 15,763,625 ------------ 46,989,072 ============ DIVERSIFIED CHEMICALS--1.70% E.I. du Pont de Nemours and Co. 356,000 13,937,400 PPG Industries, Inc. 317,200 18,873,400 ------------ 32,810,800 ============ DRUG RETAIL--0.80% Walgreen Co. 355,100 15,368,728 ELECTRIC UTILITIES--1.92% American Electric Power Co., Inc. 397,000 14,816,040 Exelon Corp. 388,800 22,324,896 ------------ 37,140,936 ============ ELECTRICAL COMPONENTS & EQUIPMENT--2.23% Emerson Electric Co. 555,500 43,023,475 FOREST PRODUCTS--1.20% Weyerhaeuser Co. 332,600 23,202,176 GENERAL MERCHANDISE STORES--1.27% Target Corp. 449,900 24,632,025 HEALTH CARE EQUIPMENT--2.39% Baxter International Inc. 505,000 18,609,250 Medtronic, Inc. 489,000 27,613,830 ------------ 46,223,080 ============ HOME IMPROVEMENT RETAIL--1.20% Home Depot, Inc. (The) 569,500 23,093,225 HOUSEHOLD APPLIANCES--0.59% Snap-on Inc. 286,500 11,497,245
F-2
SHARES VALUE --------- ------------ HOUSEHOLD PRODUCTS--1.71% Colgate-Palmolive Co. 234,800 $ 12,888,172 Kimberly-Clark Corp. 353,200 20,174,784 ------------ 33,062,956 ============ HYPERMARKETS & SUPER CENTERS--0.75% Wal-Mart Stores, Inc. 312,400 14,404,764 INDUSTRIAL CONGLOMERATES--2.42% General Electric Co. 1,428,000 46,767,000 INDUSTRIAL GASES--1.04% Praxair, Inc. 382,000 20,123,760 INDUSTRIAL MACHINERY--3.44% Illinois Tool Works Inc. 336,617 28,373,447 Ingersoll-Rand Co. Ltd.-Class A 609,200 23,923,284 Pentair, Inc. 370,500 14,227,200 ------------ 66,523,931 ============ INSURANCE BROKERS--1.17% Marsh & McLennan Cos., Inc. 743,800 22,604,082 INTEGRATED OIL & GAS--4.96% Eni S.p.A. (Italy) (a) 412,800 12,523,883 Exxon Mobil Corp. 450,500 28,268,875 Occidental Petroleum Corp. 285,900 27,935,289 TOTAL S.A. (France) (a) 98,151 27,131,972 ------------ 95,860,019 ============ INTEGRATED TELECOMMUNICATION SERVICES--2.61% AT&T Inc. 667,300 17,316,435 BellSouth Corp. 1,148,300 33,036,591 ------------ 50,353,026 ============ INVESTMENT BANKING & BROKERAGE--2.66% Merrill Lynch & Co., Inc. 307,600 23,091,532 Morgan Stanley 460,400 28,291,580 ------------ 51,383,112 ============ MULTI-LINE INSURANCE--0.75% Genworth Financial Inc.-Class A 445,000 14,578,200 MULTI-UTILITIES--2.08% Dominion Resources, Inc. 317,000 23,943,010 Public Service Enterprise Group Inc. 42,200 2,937,964 Wisconsin Energy Corp. 322,000 13,366,220 ------------ 40,247,194 ============ OIL & GAS DRILLING--0.89% GlobalSantaFe Corp. 282,900 17,271,045
F-3
SHARES VALUE --------- ------------ OIL & GAS EQUIPMENT & SERVICES--0.61% Schlumberger Ltd. 92,000 $ 11,725,400 OTHER DIVERSIFIED FINANCIAL SERVICES--1.28% Citigroup Inc. 530,000 24,687,400 PACKAGED FOODS & MEATS--2.13% General Mills, Inc. 582,600 28,320,186 Sara Lee Corp. 700,300 12,801,484 ------------ 41,121,670 ============ PHARMACEUTICALS--9.89% Abbott Laboratories 698,700 30,148,905 Bristol-Myers Squibb Co. 571,400 13,022,206 Johnson & Johnson 587,800 33,822,012 Lilly (Eli) and Co. 558,500 31,622,270 Merck & Co. Inc. 446,100 15,390,450 Pfizer Inc. 1,476,780 37,923,710 Wyeth 629,600 29,119,000 ------------ 191,048,553 ============ PROPERTY & CASUALTY INSURANCE--2.92% MBIA Inc. 344,000 21,176,640 St. Paul Travelers Cos., Inc. (The) 776,300 35,228,494 ------------ 56,405,134 ============ PUBLISHING--1.35% Gannett Co., Inc. 423,000 26,141,400 REGIONAL BANKS--3.60% Fifth Third Bancorp 711,500 26,731,055 North Fork Bancorp., Inc. 734,300 18,886,196 SunTrust Banks, Inc. 335,000 23,935,750 ------------ 69,553,001 ============ RESTAURANTS--1.20% Outback Steakhouse, Inc. 500,200 23,124,246 SEMICONDUCTORS--3.16% Intel Corp. 732,000 15,569,640 Linear Technology Corp. 728,000 27,088,880 Texas Instruments Inc. 630,800 18,438,284 ------------ 61,096,804 ============ SOFT DRINKS--0.61% Coca-Cola Co. (The) 285,070 11,796,197 SPECIALIZED CONSUMER SERVICES--0.81% H&R Block, Inc. 640,400 15,664,184 SPECIALTY CHEMICALS--0.75% Ecolab Inc. 403,000 14,431,430
F-4
SHARES VALUE ----------- -------------- SYSTEMS SOFTWARE--1.91% Microsoft Corp. 1,313,500 $ 36,975,025 THRIFTS & MORTGAGE FINANCE--1.89% Fannie Mae 399,800 23,164,412 Hudson City Bancorp, Inc. 1,076,300 13,367,646 -------------- 36,532,058 ============== TOBACCO--1.65% Altria Group, Inc. 441,900 31,967,046 -------------- Total Common Stocks (Cost $1,690,980,454) 1,873,145,319 ==============
PRINCIPAL AMOUNT ---------- U.S. TREASURY NOTES--0.31% 3.38%, 02/28/07 (b) $3,000,000 2,962,500 3.38%, 02/15/08 (b) 3,000,000 2,933,910 5,896,410 --------- Total U.S. Treasury Notes (Cost$ 5,962,677) 5,896,410 =========
SHARES ----------- MONEY MARKET FUNDS--2.65% Liquid Assets Portfolio-Institutional Class (c) 25,595,581 25,595,581 STIC Prime Portfolio-Institutional Class (c) 25,595,581 25,595,581 -------------- Total Money Market Funds (Cost $51,191,162) 51,191,162 ============== TOTAL INVESTMENTS--99.90% (Cost $1,748,134,293) 1,930,232,891 ============== OTHER ASSETS LESS LIABILITIES--0.10% 2,008,409 ============== NET ASSETS--100.00% $1,932,241,300 ==============
Notes to Schedule of Investments: (a) 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 January 31, 2006 was $39,655,855, which represented 2.05% of the Fund's Net Assets. See Note 1A. (b) 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 January 31, 2006 was $5,896,410, which represented 0.31% of Fund's Net Assets. See Note 1A. (c) 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. F-5 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. F-6 A. SECURITY VALUATIONS - (CONTINUED) 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. 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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. 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 United States of America unless otherwise noted. D. 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. F-7 E. FOREIGN CURRENCY CONTRACTS - A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. F. COVERED CALL OPTIONS - The Fund may write call options, on a covered basis; that is, the Fund will own the underlying security. When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability. The amount of the liability is subsequently "marked-to-market" to reflect the current market value of the option written. The current market value of a written option is the mean between the last bid and asked prices on that day. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. G. FUTURES CONTRACTS - The Fund may purchase or sell futures contracts as a hedge against changes in market conditions. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. NOTE 2 - INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission and approved procedures by the Board of Trustees, to invest daily available cash balances 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 table below shows the transactions in and earnings from investments in affiliated money market funds for the three months ended January 31, 2006.
CHANGE IN PROCEEDS UNREALIZED REALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST SALES (DEPRECIATION) 01/31/06 INCOME (LOSS) ---- ----------- ----------- ------------ -------------- ----------- -------- -------- Liquid Assets Portfolio-Institutional Class $39,379,766 $23,945,365 $(37,729,550) $-- $25,595,581 $303,409 $-- STIC Prime Portfolio-Institutional Class 39,379,766 23,945,365 (37,729,550) -- 25,595,581 304,815 -- ----------- ----------- ------------ --- ----------- -------- --- TOTAL $78,759,532 $47,890,730 $(75,459,100) $-- $51,191,162 $608,224 $-- =========== =========== ============ === =========== ======== ===
F-8 NOTE 3 - INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $56,618,062 and $115,322,700, 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 $221,997,395 Aggregate unrealized (depreciation) of investment securities (41,032,115) ------------ Net unrealized appreciation of investment securities $180,965,280 ============
Cost of investments for tax purposes is $1,749,267,611. F-9 AIM LARGE CAP BASIC VALUE FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com LCBV-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE ------- ----------- DOMESTIC COMMON STOCKS--87.53% ADVERTISING--3.83% Interpublic Group of Cos., Inc. (The) (a) 562,200 $ 5,678,220 Omnicom Group Inc. 120,600 9,863,874 ----------- 15,542,094 =========== AEROSPACE & DEFENSE--1.34% Honeywell International Inc. 141,300 5,428,746 ALUMINUM--1.17% Alcoa Inc. 150,500 4,740,750 APPAREL RETAIL--1.60% Gap, Inc. (The) 358,700 6,488,883 ASSET MANAGEMENT & CUSTODY BANKS--1.81% Bank of New York Co., Inc. (The) 230,600 7,335,386 BREWERS--1.58% Molson Coors Brewing Co.-Class B 102,497 6,406,062 BUILDING PRODUCTS--1.50% Masco Corp. 206,200 6,113,830 CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.76% Deere & Co. 42,800 3,071,328 DATA PROCESSING & OUTSOURCED SERVICES--5.21% Ceridian Corp. (a) 255,700 6,310,676 First Data Corp. 329,700 14,869,470 ----------- 21,180,146 =========== DIVERSIFIED CHEMICALS--0.51% Dow Chemical Co. (The) 48,600 2,055,780 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--2.01% Cendant Corp. 488,912 8,184,387
F-1
SHARES VALUE ------- ----------- ENVIRONMENTAL & FACILITIES SERVICES--2.58% Waste Management, Inc. 331,550 $10,470,349 FOOD RETAIL--2.97% Kroger Co. (The) (a) 355,600 6,543,040 Safeway Inc. 235,800 5,527,152 ----------- 12,070,192 =========== GENERAL MERCHANDISE STORES--1.98% Target Corp. 146,600 8,026,350 HEALTH CARE DISTRIBUTORS--6.26% Cardinal Health, Inc. 264,600 19,061,784 McKesson Corp. 120,360 6,379,080 ----------- 25,440,864 =========== HEALTH CARE EQUIPMENT--1.32% Baxter International Inc. 145,800 5,372,730 HEALTH CARE FACILITIES--1.78% HCA Inc. 147,400 7,234,392 INDUSTRIAL CONGLOMERATES--5.59% General Electric Co. 225,500 7,385,125 Tyco International Ltd. 587,300 15,299,165 ----------- 22,684,290 =========== INDUSTRIAL MACHINERY--1.69% Illinois Tool Works Inc. 81,515 6,870,899 INVESTMENT BANKING & BROKERAGE--4.10% Merrill Lynch & Co., Inc. 108,800 8,167,616 Morgan Stanley 138,000 8,480,100 ----------- 16,647,716 =========== MANAGED HEALTH CARE--3.14% WellPoint, Inc. (a) 166,000 12,748,800 MOVIES & ENTERTAINMENT--1.95% Walt Disney Co. (The) 313,100 7,924,561 MULTI-LINE INSURANCE--2.04% Hartford Financial Services Group, Inc. (The) 100,600 8,272,338 OIL & GAS DRILLING--2.81% Transocean Inc. (a) 140,677 11,415,939
F-2
SHARES VALUE ------- ------------ OIL & GAS EQUIPMENT & SERVICES--7.43% Halliburton Co. 225,100 $ 17,906,705 Schlumberger Ltd. 96,100 12,247,945 ------------ 30,154,650 ============ OTHER DIVERSIFIED FINANCIAL SERVICES--6.12% Citigroup Inc. 241,619 11,254,613 JPMorgan Chase & Co. 342,356 13,608,651 ------------ 24,863,264 ============ PACKAGED FOODS & MEATS--1.08% Kraft Foods Inc.-Class A 149,300 4,395,392 PHARMACEUTICALS--4.69% Pfizer Inc. 301,700 7,747,656 Wyeth 244,322 11,299,892 ------------ 19,047,548 ============ PROPERTY & CASUALTY INSURANCE--2.40% ACE Ltd. 177,800 9,734,550 SYSTEMS SOFTWARE--2.41% Computer Associates International, Inc. 358,499 9,787,023 THRIFTS & MORTGAGE FINANCE--3.87% Fannie Mae 208,300 12,068,902 Freddie Mac 54,000 3,664,440 ------------ 15,733,342 ============ Total Domestic Common Stocks (Cost $265,982,645) 355,442,581 ============ FOREIGN STOCKS & OTHER EQUITY INTERESTS--10.75% FRANCE--3.24% Sanofi-Aventis (Pharmaceuticals) (b) 143,452 13,148,929 JAPAN--1.96% Sony Corp.-ADR (Consumer Electronics) 162,700 7,956,030 MEXICO--2.40% CEMEX, S.A. de C.V.-ADR (Construction Materials) 147,500 9,732,050
F-3
SHARES VALUE --------- ------------ NETHERLANDS--3.15% Koninklijke (Royal) Philips Electronics N.V.-New York Shares (Consumer Electronics) 191,970 $ 6,463,630 Unilever N.V. (Packaged Foods & Meats) (b) 90,300 6,338,578 ------------ 12,802,208 ============ Total Foreign Stocks & Other Equity Interests (Cost $33,341,909) 43,639,217 MONEY MARKET FUNDS--1.79% Liquid Assets Portfolio-Institutional Class (c) 3,627,045 3,627,045 STIC Prime Portfolio-Institutional Class (c) 3,627,045 3,627,045 ------------ Total Money Market Funds (Cost $7,254,090) 7,254,090 ============ TOTAL INVESTMENTS--100.07% (Cost $306,578,644) 406,335,888 ============ OTHER ASSETS LESS LIABILITIES--(0.07%) (266,956) ============ NET ASSETS--100.00% $406,068,932 ============
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (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 January 31, 2006 was $19,487,507, which represented 4.80% of the Fund's Net Assets. See Note 1A. (c) 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. F-4 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. F-5 A. SECURITY VALUATIONS - (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. D. 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. F-6 E. FOREIGN CURRENCY CONTRACTS - A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 - INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission 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 three months ended January 31, 2006.
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME (LOSS) ---- ---------- ----------- ------------ -------------- ---------- -------- -------- Liquid Assets Portfolio- Institutional Class $3,993,056 $ 8,117,536 $ (8,483,547) $-- $3,627,045 $26,933 $-- STIC Prime Portfolio- Institutional Class 3,993,056 8,117,536 (8,483,547) -- 3,627,045 27,053 -- ---------- ----------- ------------ --- ---------- ------- --- TOTAL $7,986,112 $16,235,072 $(16,967,094) $-- $7,254,090 $53,986 $-- ========== =========== ============ === ========== ======= ===
NOTE 4 - INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $15,983,399 and $26,548,313, 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 three months ended. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $108,691,772 Aggregate unrealized (depreciation) of investment securities (10,747,564) ------------ Net unrealized appreciation of investment securities $ 97,944,208 ============
Cost of investments for tax purposes is $308,391,680. F-7 AIM LARGE CAP GROWTH FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMInvestments.com LCG-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------- DOMESTIC COMMON STOCKS--88.41% AEROSPACE & DEFENSE--5.53% Boeing Co. (The) 181,600 $ 12,405,096 ------------------------------------------------------------------------------------------------------------------------------- General Dynamics Corp. 76,400 8,889,904 ------------------------------------------------------------------------------------------------------------------------------- Lockheed Martin Corp. 253,100 17,122,215 ------------------------------------------------------------------------------------------------------------------------------- Precision Castparts Corp. 207,800 10,379,610 =============================================================================================================================== 48,796,825 =============================================================================================================================== APPLICATION SOFTWARE--1.91% Autodesk, Inc. (a) 261,500 10,614,285 ------------------------------------------------------------------------------------------------------------------------------- Intuit Inc. (a) 120,000 6,279,600 =============================================================================================================================== 16,893,885 =============================================================================================================================== BIOTECHNOLOGY--4.59% Amgen Inc. (a) 275,100 20,052,039 ------------------------------------------------------------------------------------------------------------------------------- Genentech, Inc. (a) 99,000 8,506,080 ------------------------------------------------------------------------------------------------------------------------------- Gilead Sciences, Inc. (a) 196,000 11,930,520 =============================================================================================================================== 40,488,639 =============================================================================================================================== COMMUNICATIONS EQUIPMENT--5.12% Cisco Systems, Inc. (a) 488,640 9,074,045 ------------------------------------------------------------------------------------------------------------------------------- Harris Corp. 232,000 10,771,760 ------------------------------------------------------------------------------------------------------------------------------- Motorola, Inc. 1,118,100 25,392,051 =============================================================================================================================== 45,237,856 =============================================================================================================================== COMPUTER HARDWARE--5.58% Apple Computer, Inc. (a) 391,100 29,531,961 ------------------------------------------------------------------------------------------------------------------------------- Dell Inc. (a) 211,100 6,187,341 ------------------------------------------------------------------------------------------------------------------------------- Hewlett-Packard Co. 433,000 13,500,940 =============================================================================================================================== 49,220,242 =============================================================================================================================== COMPUTER STORAGE & PERIPHERALS--0.74% Seagate Technology (a)(b) 251,000 6,546,080 =============================================================================================================================== CONSTRUCTION & ENGINEERING--0.77% McDermott International, Inc. (a) 130,000 6,760,000 =============================================================================================================================== CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.92% Joy Global Inc. 150,000 8,106,000 =============================================================================================================================== CONSUMER FINANCE--1.01% SLM Corp. 160,100 8,959,196 ===============================================================================================================================
LCG-QTR-1 F-1
SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------- DEPARTMENT STORES--2.86% J.C. Penney Co., Inc. 122,800 $ 6,852,240 ------------------------------------------------------------------------------------------------------------------------------- Nordstrom, Inc. 441,700 18,427,724 =============================================================================================================================== 25,279,964 =============================================================================================================================== DIVERSIFIED METALS & MINING--1.78% Phelps Dodge Corp. 98,000 15,729,000 =============================================================================================================================== ELECTRONIC EQUIPMENT MANUFACTURERS--0.75% Agilent Technologies, Inc. (a) 195,000 6,612,450 =============================================================================================================================== ELECTRONIC MANUFACTURING SERVICES--0.78% Jabil Circuit, Inc. (a) 170,000 6,868,000 =============================================================================================================================== HEALTH CARE DISTRIBUTORS--1.57% AmerisourceBergen Corp. 160,000 6,982,400 ------------------------------------------------------------------------------------------------------------------------------- McKesson Corp. 130,000 6,890,000 =============================================================================================================================== 13,872,400 =============================================================================================================================== HEALTH CARE EQUIPMENT--0.71% Baxter International Inc. 171,000 6,301,350 =============================================================================================================================== HEALTH CARE SERVICES--2.47% Caremark Rx, Inc. (a) 214,800 10,589,640 ------------------------------------------------------------------------------------------------------------------------------- Express Scripts, Inc. (a) 122,800 11,210,412 =============================================================================================================================== 21,800,052 =============================================================================================================================== HEALTH CARE SUPPLIES--2.31% Alcon, Inc. 159,222 20,367,678 =============================================================================================================================== HOME IMPROVEMENT RETAIL--0.71% Home Depot, Inc. (The) 154,400 6,260,920 =============================================================================================================================== HOUSEHOLD PRODUCTS--1.00% Procter & Gamble Co. (The) 149,000 8,825,270 =============================================================================================================================== INTEGRATED OIL & GAS--1.05% ConocoPhillips 143,300 9,271,510 =============================================================================================================================== INTERNET SOFTWARE & SERVICES--2.11% Google Inc.-Class A (a) 43,100 18,673,075 =============================================================================================================================== INVESTMENT BANKING & BROKERAGE--5.77% Bear Stearns Cos. Inc. (The) 59,300 7,499,078 ------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The) 118,600 16,752,250 ------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings Inc. 147,800 20,758,510 ------------------------------------------------------------------------------------------------------------------------------- Schwab (Charles) Corp. (The) 400,000 5,916,000 =============================================================================================================================== 50,925,838 =============================================================================================================================== IT CONSULTING & OTHER SERVICES--0.76% Accenture Ltd.-Class A 212,000 6,684,360 ===============================================================================================================================
LCG-QTR-1 F-2
SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------- LIFE & HEALTH INSURANCE--2.78% MetLife, Inc. 186,200 $ 9,339,792 ------------------------------------------------------------------------------------------------------------------------------- Prudential Financial, Inc. 202,000 15,218,680 =============================================================================================================================== 24,558,472 =============================================================================================================================== MANAGED HEALTH CARE--9.26% Aetna Inc. 245,600 23,774,080 ------------------------------------------------------------------------------------------------------------------------------- CIGNA Corp. 108,400 13,181,440 ------------------------------------------------------------------------------------------------------------------------------- Health Net, Inc. (a) 135,000 6,664,950 ------------------------------------------------------------------------------------------------------------------------------- UnitedHealth Group Inc. 528,800 31,421,296 ------------------------------------------------------------------------------------------------------------------------------- WellPoint, Inc. (a) 87,700 6,735,360 =============================================================================================================================== 81,777,126 =============================================================================================================================== OIL & GAS EXPLORATION & PRODUCTION--2.44% Apache Corp. 99,000 7,477,470 ------------------------------------------------------------------------------------------------------------------------------- Devon Energy Corp. 206,300 14,071,723 =============================================================================================================================== 21,549,193 =============================================================================================================================== OIL & GAS REFINING & MARKETING --2.22% Valero Energy Corp. 314,391 19,627,430 =============================================================================================================================== PHARMACEUTICALS--3.13% Allergan, Inc. 89,000 10,359,600 ------------------------------------------------------------------------------------------------------------------------------- Barr Pharmaceuticals Inc. (a) 114,000 7,476,120 ------------------------------------------------------------------------------------------------------------------------------- Johnson & Johnson 170,000 9,781,800 =============================================================================================================================== 27,617,520 =============================================================================================================================== PROPERTY & CASUALTY INSURANCE--0.75% Chubb Corp. (The) 70,300 6,632,805 =============================================================================================================================== RAILROADS--2.59% Burlington Northern Santa Fe Corp. 285,800 22,898,296 =============================================================================================================================== RESTAURANTS--1.68% Darden Restaurants, Inc. 201,400 8,188,924 ------------------------------------------------------------------------------------------------------------------------------- YUM! Brands, Inc. 134,000 6,628,980 =============================================================================================================================== 14,817,904 =============================================================================================================================== SEMICONDUCTOR EQUIPMENT--0.89% Lam Research Corp. (a) 170,000 7,893,100 ------------------------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS--7.99% Broadcom Corp.-Class A (a) 188,000 12,821,600 ------------------------------------------------------------------------------------------------------------------------------- Freescale Semiconductor, Inc.-Class A (a)(b) 260,000 6,541,600 ------------------------------------------------------------------------------------------------------------------------------- Marvell Technology Group Ltd. (a) 201,000 13,752,420 ------------------------------------------------------------------------------------------------------------------------------- National Semiconductor Corp. 546,300 15,411,123 ------------------------------------------------------------------------------------------------------------------------------- NVIDIA Corp. (a) 170,000 7,643,200 ------------------------------------------------------------------------------------------------------------------------------- Texas Instruments Inc. 490,500 14,337,315 =============================================================================================================================== 70,507,258 =============================================================================================================================== SOFT DRINKS--1.01% PepsiCo, Inc. 156,000 8,920,080 ===============================================================================================================================
LCG-QTR-1 F-3
SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------- SPECIALIZED FINANCE--0.79% CIT Group Inc. 130,000 $ 6,934,200 =============================================================================================================================== SYSTEMS SOFTWARE--2.08% Microsoft Corp. 425,080 11,966,002 ------------------------------------------------------------------------------------------------------------------------------- Red Hat, Inc. (a) 221,000 6,397,950 =============================================================================================================================== 18,363,952 =============================================================================================================================== Total Domestic Common Stocks (Cost $600,968,086) 780,577,926 =============================================================================================================================== FOREIGN STOCKS & OTHER EQUITY INTERESTS--10.99% BRAZIL--1.40% Unibanco-Uniao de Bancos Brasileiros S.A.-ADR (Diversified Banks) (a) 147,000 12,380,340 =============================================================================================================================== FINLAND --0.73% Nokia Oyj-ADR (Communications Equipment) 350,000 6,433,000 =============================================================================================================================== JAPAN--2.29% Komatsu Ltd. (Construction & Farm Machinery & Heavy Trucks) (c) 576,000 10,610,666 ------------------------------------------------------------------------------------------------------------------------------- Matsushita Electric Industrial Co., Ltd. (Consumer (c) Electronics) 443,000 9,637,520 =============================================================================================================================== 20,248,186 =============================================================================================================================== MEXICO--1.94% America Movil S.A. de C.V.-Series L-ADR (Wireless Telecommunication Services) 308,000 10,388,840 ------------------------------------------------------------------------------------------------------------------------------- Grupo Televisa, S.A.-ADR (Broadcasting & Cable TV) 80,000 6,684,000 =============================================================================================================================== 17,072,840 =============================================================================================================================== SOUTH KOREA--0.97% Kookmin Bank (Diversified Banks) (c) 107,000 8,526,240 =============================================================================================================================== SWITZERLAND--2.94% ABB Ltd. (Heavy Electrical Equipment) (a)(c) 972,000 10,601,396 ------------------------------------------------------------------------------------------------------------------------------- Novartis A.G.-ADR (Pharmaceuticals) 155,000 8,549,800 ------------------------------------------------------------------------------------------------------------------------------- Roche Holding A.G. (Pharmaceuticals) 43,000 6,794,962 =============================================================================================================================== 25,946,158 =============================================================================================================================== UNITED KINGDOM--0.72% AstraZeneca PLC-ADR (Pharmaceuticals) 131,000 6,371,840 =============================================================================================================================== Total Foreign Stocks & Other Equity Interests (Cost $80,428,010) 96,978,604 ===============================================================================================================================
LCG-QTR-1 F-4
SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS--0.58% Liquid Assets Portfolio-Institutional Class (d) 2,539,607 $ 2,539,607 ------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class (d) 2,539,607 2,539,607 =============================================================================================================================== Total Money Market Funds (Cost $5,079,214) 5,079,214 =============================================================================================================================== TOTAL INVESTMENTS--99.98% (excluding investments purchased with cash collateral from securities loaned) (Cost $686,475,310) 882,635,744 =============================================================================================================================== INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--0.57% STIC Prime Portfolio-Institutional Class (d)(e) 5,070,188 5,070,188 =============================================================================================================================== Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $5,070,188) 5,070,188 =============================================================================================================================== TOTAL INVESTMENTS--100.55% (Cost $691,545,498) 887,705,932 =============================================================================================================================== OTHER ASSETS LESS LIABILITIES--(0.55%) (4,842,074) =============================================================================================================================== NET ASSETS--100.00% $882,863,858 ===============================================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (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 January 31, 2006 was $39,375,822, which represented 4.46% 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. (e) The security has been segregated to satisfy the forward 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. LCG-QTR-1 F-5 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services, which may be considered fair valued, or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. LCG-QTR-1 F-6 A. SECURITY VALUATIONS -- (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. D. 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. LCG-QTR-1 F-7 E. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN PROCEEDS UNREALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 AT COST SALES (DEPRECIATION) 01/31/06 INCOME GAIN (LOSS) ----------------------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio-Institutional Class $ 9,209,656 $ 20,149,596 $(26,819,645) $ -- $ 2,539,607 $ 58,786 $ -- ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class 9,209,656 20,149,596 (26,819,645) -- 2,539,607 59,122 -- =================================================================================================================================== Subtotal $ 18,419,312 $ 40,299,192 $(53,639,290) $ -- $ 5,079,214 $ 117,908 $ -- ===================================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN PROCEEDS UNREALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 10/31/05 AT COST SALES (DEPRECIATION) 01/31/06 INCOME* GAIN (LOSS) ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class $ 26,223,050 $ 83,158,178 $(104,311,040) $ -- $ 5,070,188 $ 4,933 $ -- =================================================================================================================================== Total $ 44,642,362 $123,457,370 $(157,950,330) $ -- $ 10,149,402 $ 122,841 $ -- ===================================================================================================================================
* Net of compensation to counterparties. LCG-QTR-1 F-8 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 a loss on the collateral invested. At January 31, 2006, securities with an aggregate value of $5,032,844 were on loan to brokers. The loans were secured by cash collateral of $5,070,188 received by the Fund and subsequently invested in an affiliated money market fund. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $4,933 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 and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $168,844,856 and $159,284,030, 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 $ 196,800,184 ------------------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (6,467,591) =========================================================================================== Net unrealized appreciation of investment securities $ 190,332,593 =========================================================================================== Cost of investments for tax purposes is $697,373,339.
LCG-QTR-1 F-9 AIM MID CAP GROWTH FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENT LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com MCG-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE --------- ------------ COMMON STOCKS & OTHER EQUITY INTERESTS--98.13% ADVERTISING--2.48% Clear Channel Outdoor Holdings, Inc.-Class A (a) 92,363 $ 1,842,642 Omnicom Group Inc. 11,352 928,480 R.H. Donnelley Corp. (a) 29,858 1,959,282 ------------ 4,730,404 ============ AGRICULTURAL PRODUCTS--1.25% Archer-Daniels-Midland Co. 75,618 2,381,967 AIR FREIGHT & LOGISTICS--1.31% Robinson (C.H.) Worldwide, Inc. 62,000 2,508,520 APPAREL RETAIL--2.00% Abercrombie & Fitch Co.-Class A 29,299 1,945,161 Chico's FAS, Inc. (a) 20,000 871,200 Urban Outfitters, Inc. (a) 37,000 1,010,470 ------------ 3,826,831 ============ APPAREL, ACCESSORIES & LUXURY GOODS--2.52% Coach, Inc. (a) 55,455 1,993,607 Polo Ralph Lauren Corp. 50,000 2,832,000 ------------ 4,825,607 ============ APPLICATION SOFTWARE--5.01% Amdocs Ltd. (a) 70,263 2,262,469 Business Objects S.A.-ADR (France) (a) 24,891 1,032,976 Cadence Design Systems, Inc. (a) 50,105 884,854 Citrix Systems, Inc. (a) 61,532 1,897,647 Synopsys, Inc. (a) 94,196 2,082,674 TIBCO Software Inc. (a) 176,962 1,413,926 ------------ 9,574,546 ============ ASSET MANAGEMENT & CUSTODY BANKS--1.22% Legg Mason, Inc. 18,000 2,334,600
F-1
SHARES VALUE --------- ------------ BIOTECHNOLOGY--1.49% Celgene Corp. (a) 14,000 $ 996,100 Cephalon, Inc. (a) 13,387 949,004 CV Therapeutics, Inc. (a) 36,531 899,028 ------------ 2,844,132 ============ BROADCASTING & CABLE TV--0.98% Univision Communications Inc.-Class A (a) 58,900 1,875,376 CASINOS & GAMING--2.07% Scientific Games Corp.-Class A (a) 65,070 2,085,493 Station Casinos, Inc. 28,000 1,871,800 ------------ 3,957,293 ============ COAL & CONSUMABLE FUELS--0.55% Aventine Renewable Energy Holdings, Inc. (Acquired 12/12/05; Cost $911,300) (a)(b)(c) 70,100 1,051,500 COMMUNICATIONS EQUIPMENT--0.93% Comverse Technology, Inc. (a) 65,000 1,780,350 COMPUTER HARDWARE--0.81% Palm, Inc. (a)(d) 39,185 1,547,024 COMPUTER STORAGE & PERIPHERALS--1.50% Emulex Corp. (a) 51,499 945,007 QLogic Corp. (a) 48,241 1,913,720 ------------ 2,858,727 ============ CONSTRUCTION & ENGINEERING--1.68% Chicago Bridge & Iron Co.-New York Shares 76,909 2,372,643 Foster Wheeler Ltd. (a) 16,961 835,329 ------------ 3,207,972 ============ CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--1.32% Cummins Inc. 10,103 983,022 Joy Global Inc. 28,491 1,539,654 ------------ 2,522,676 ============ CONSUMER ELECTRONICS--1.00% Harman International Industries, Inc. 17,323 1,905,530 CONSUMER FINANCE--1.32% AmeriCredit Corp. (a) 87,419 2,514,170
F-2
SHARES VALUE --------- ------------ DATA PROCESSING & OUTSOURCED SERVICES--1.32% Alliance Data Systems Corp. (a) 59,701 $ 2,522,367 DEPARTMENT STORES--1.16% Nordstrom, Inc. 53,000 2,211,160 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--2.20% ChoicePoint Inc. (a) 22,412 921,581 Corrections Corp. of America (a) 50,000 2,122,500 Global Cash Access, Inc. (a) 14,696 227,200 IHS Inc.-Class A (a) 38,109 924,524 ------------ 4,195,805 ============ DIVERSIFIED METALS & MINING--1.15% Phelps Dodge Corp. 13,739 2,205,109 DRUG RETAIL--1.07% Shoppers Drug Mart Corp. (Canada) 55,000 2,048,949 ELECTRICAL COMPONENTS & EQUIPMENT--1.14% Cooper Industries, Ltd.-Class A 26,700 2,180,055 ELECTRONIC EQUIPMENT MANUFACTURERS--1.16% Amphenol Corp.-Class A 43,607 2,216,544 ELECTRONIC MANUFACTURING SERVICES--0.70% Molex Inc. 25,689 777,092 Molex Inc.-Class A 20,183 557,656 ------------ 1,334,748 ============ HEALTH CARE DISTRIBUTORS--1.04% Schein (Henry), Inc.. (a) 42,612 1,987,424 HEALTH CARE EQUIPMENT--3.51% Hologic, Inc. (a) 12,000 617,520 Kyphon Inc. (a) 22,000 914,540 PerkinElmer, Inc. 80,000 1,819,200 Thermo Electron Corp. (a) 56,591 1,903,721 Varian Medical Systems, Inc. (a) 24,000 1,445,040 ------------ 6,700,021 ============ HEALTH CARE FACILITIES--1.72% Community Health Systems, Inc. (a) 48,643 1,770,119 Psychiatric Solutions, Inc. (a) 46,000 1,517,540 ------------ 3,287,659 ============
F-3
SHARES VALUE --------- ------------ HEALTH CARE SERVICES--3.29% DaVita, Inc. (a) 34,000 $ 1,861,500 Express Scripts, Inc. (a) 10,754 981,733 Omnicare, Inc. 36,000 1,789,200 Pharmaceutical Product Development, Inc. 24,000 1,660,320 ------------ 6,292,753 ============ HOTELS, RESORTS & CRUISE LINES--2.05% Hilton Hotels Corp. 84,149 2,097,835 Starwood Hotels & Resorts Worldwide, Inc. (e) 30,000 1,824,300 ------------ 3,922,135 ============ HOUSEWARES & SPECIALTIES--0.71% Jarden Corp. (a) 55,304 1,362,691 INDUSTRIAL MACHINERY--0.97% ITT Industries, Inc. 17,993 1,844,282 INSURANCE BROKERS--0.65% National Financial Partners Corp. 23,337 1,248,763 INTEGRATED OIL & GAS--1.37% CNX Gas Corp. (Acquired 08/01/05; Cost $496,000) (a)(b) 31,000 745,860 Murphy Oil Corp. 33,000 1,881,000 ------------ 2,626,860 ============ INTEGRATED TELECOMMUNICATION SERVICES--1.03% Qwest Communications International Inc. 326,544 1,965,795 INTERNET SOFTWARE & SERVICES--0.87% Websense, Inc. (a) 25,261 1,665,458 INVESTMENT BANKING & BROKERAGE--0.91% Schwab (Charles) Corp. (The) 117,341 1,735,473 IT CONSULTING & OTHER SERVICES--1.12% Cognizant Technology Solutions Corp.-Class A (a) 41,000 2,147,170 MANAGED HEALTH CARE--3.59% Aveta, Inc. (Acquired 12/21/05; Cost $1,647,000) (a)(b)(c)(f) 122,000 1,647,000 CIGNA Corp. 15,756 1,915,930 Coventry Health Care, Inc. (a) 32,394 1,929,711 Humana Inc. (a) 24,642 1,374,284 ------------ 6,866,925 ============
F-4
SHARES VALUE --------- ------------ OIL & GAS DRILLING--3.25% Nabors Industries Ltd. (a) 24,000 $ 1,950,000 Noble Corp. 28,000 2,252,320 Todco-Class A 45,000 2,007,000 ------------ 6,209,320 ============ OIL & GAS EQUIPMENT & SERVICES--3.83% Grant Prideco, Inc. (a) 44,919 2,249,993 National-Oilwell Varco Inc. (a) 36,000 2,738,520 Weatherford International Ltd. (a) 52,000 2,328,560 ------------ 7,317,073 ============ OIL & GAS EXPLORATION & PRODUCTION--3.41% Rosetta Resources, Inc. (Acquired 06/28/05; Cost $1,827,200) (a)(b)(c) 114,200 2,055,600 Southwestern Energy Co. (a) 57,000 2,458,980 Ultra Petroleum Corp. (a) 29,000 1,994,910 ------------ 6,509,490 ============ OIL & GAS REFINING & MARKETING --0.80% Tesoro Corp. 21,128 1,531,146 OIL & GAS STORAGE & TRANSPORTATION--1.06% Williams Cos., Inc. (The) 85,000 2,026,400 PAPER PACKAGING--0.67% Smurfit-Stone Container Corp. (a) 100,829 1,289,603 PHARMACEUTICALS--1.63% Endo Pharmaceuticals Holdings Inc. (a) 51,108 1,466,800 Shire PLC-ADR 34,000 1,657,500 ------------ 3,124,300 ============ REAL ESTATE--1.33% Friedman, Billings, Ramsey Group, Inc. -Class A (d) 129,935 1,504,647 People's Choice Financial Corp. (Acquired 12/21/04; Cost $1,897,000) (b)(c) 189,700 1,043,350 ------------ 2,547,997 ============ REAL ESTATE MANAGEMENT & DEVELOPMENT--1.26% CB Richard Ellis Group, Inc.-Class A (a) 38,000 2,398,560 REGIONAL BANKS--1.65% Centennial Bank Holdings, Inc. (Acquired 12/27/04; Cost $1,653,750) (a)(b)(f) 157,500 1,948,275 Signature Bank (a) 39,600 1,205,820 ------------ 3,154,095 ============
F-5
SHARES VALUE --------- ------------ SEMICONDUCTOR EQUIPMENT--0.82% ASML Holding N.V.-New York Shares (Netherlands) (a) 69,275 $ 1,564,922 SEMICONDUCTORS--7.15% Analog Devices, Inc. 50,000 1,988,500 ATI Technologies Inc. (Canada) (a) 62,629 1,117,928 Integrated Device Technology, Inc. (a) 141,501 1,965,449 Intersil Corp.-Class A 61,441 1,785,475 Marvell Technology Group Ltd. (a) 23,002 1,573,797 Microchip Technology Inc. 53,875 2,020,851 National Semiconductor Corp. 78,800 2,222,948 Spansion Inc.-Class A (a) 76,700 997,100 ------------ 13,672,048 ============ SOFT DRINKS--0.52% Hansen Natural Corp. (a) 11,421 1,002,764 SPECIALIZED FINANCE--1.13% Chicago Mercantile Exchange Holdings Inc. 5,108 2,161,961 SPECIALTY STORES--1.94% Office Depot, Inc. (a) 62,000 2,055,300 Staples, Inc. 70,000 1,659,700 ------------ 3,715,000 ============ SYSTEMS SOFTWARE--0.71% Red Hat, Inc. (a)(d) 46,868 1,356,829 TRADING COMPANIES & DISTRIBUTORS--0.53% WESCO International, Inc. (a) 20,977 1,005,428 WIRELESS TELECOMMUNICATION SERVICES--4.27% American Tower Corp.-Class A (a) 130,077 4,024,582 Leap Wireless International, Inc. (a) 53,207 1,968,659 NII Holdings Inc. (a) 43,896 2,171,096 ------------ 8,164,337 ============ Total Common Stocks & Other Equity Interests (Cost $143,802,336) 187,566,644
F-6
SHARES VALUE --------- ------------ MONEY MARKET FUNDS--2.44% Liquid Assets Portfolio-Institutional Class (g) 2,327,340 $ 2,327,340 STIC Prime Portfolio-Institutional Class (g) 2,327,340 2,327,340 ============ Total Money Market Funds (Cost $4,654,680) 4,654,680 ============ TOTAL INVESTMENTS--100.57% (excluding investments purchased with cash collateral from securities loaned) (Cost $148,457,016) 192,221,324 INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--1.73% Liquid Assets Portfolio-Institutional Class (g)(h) 3,314,405 3,314,405 Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $3,314,405) 3,314,405 TOTAL INVESTMENTS--102.30% (Cost $151,771,421) 195,535,729 OTHER ASSETS LESS LIABILITIES--(2.30%) (4,398,863) ============ NET ASSETS--100.00% $191,136,866 ============
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) 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 only 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 aggregate value of these securities at January 31, 2006 was $8,491,585, which represented 4.04% of the Fund's Net Assets. Unless otherwise indicated, these securities are not considered to be illiquid. (c) Security considered to be illiquid. The Fund is limited to investing 15% of net assets in illiquid securities at the time of purchase. The aggregate value of these securities considered illiquid at January 31, 2006 was $5,797,450, which represented 3.03% of the Fund's Net Assets. (d) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (e) Each unit represents one common share and one Class B share. (f) Security fair valued in good faith in accordance with the procedures established by the Board of Trustees. The aggregate value of these securities at January 31, 2006 was $3,595,275, which represented 1.88% 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 forward 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. F-7 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on prices furnished by independent pricing services, which may be considered fair valued, or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. F-8 A. SECURITY VALUATIONS - (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. D. 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. F-9 E. FOREIGN CURRENCY CONTRACTS - A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 - INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME (LOSS) ---- ---------- ----------- ------------ -------------- ---------- -------- -------- Liquid Assets Portfolio-Institutional Class $2,840,496 $ 9,171,523 $ (9,684,679) $-- $2,327,340 $34,630 $-- STIC Prime Portfolio-Institutional Class 2,840,496 9,171,523 (9,684,679) -- 2,327,340 34,816 -- ---------- ----------- ------------ --- ---------- ------- --- SUBTOTAL $5,680,992 $18,343,046 $(19,369,358) $-- $4,654,680 $69,446 $-- ========== =========== ============ === ========== ======= ===
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME* (LOSS) ---- ---------- ----------- ------------ -------------- ---------- -------- -------- Liquid Assets Portfolio- Institutional Class $4,053,350 $ 9,655,480 $(10,394,425) $-- $3,314,405 $ 4,843 $-- ---------- ----------- ------------ --- ---------- ------- --- TOTAL $9,734,342 $27,998,526 $(29,763,783) $-- $7,969,085 $74,289 $-- ========== =========== ============ === ========== ======= ===
* 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 F-10 NOTE 3 - PORTFOLIO SECURITIES LOANED - (CONTINUED) 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 a loss on the collateral invested. At January 31, 2006, securities with an aggregate value of $3,259,609 were on loan to brokers. The loans were secured by cash collateral of $3,314,405 received by the Fund and subsequently invested in an affiliated money market fund. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $4,843 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 and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $62,127,462 and $64,125,759, 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 $45,036,796 Aggregate unrealized (depreciation) of investment securities (1,349,790) Net unrealized appreciation of investment securities $43,687,006 Cost of investments for tax purposes is $151,848,723.
F-11 AIM SELECT BASIC VALUE FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com SBV-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE ---------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS--99.42% ADVERTISING--4.38% Interpublic Group of Cos., Inc. (The) (a) 2,500 $ 25,250 ---------------------------------------------------------------------------------------------------------------------------------- Omnicom Group Inc. 500 40,895 ================================================================================================================================== 66,145 ================================================================================================================================== APPAREL RETAIL--2.45% Gap, Inc. (The) 2,050 37,084 ================================================================================================================================== BREWERS--1.34% Molson Coors Brewing Co.-Class B 325 20,312 ================================================================================================================================== BUILDING PRODUCTS--1.79% American Standard Cos. Inc. 750 27,000 ================================================================================================================================== CONSTRUCTION MATERIALS--2.35% CEMEX S.A. de C.V.-ADR (Mexico) 538 35,497 ================================================================================================================================== DATA PROCESSING & OUTSOURCED SERVICES--3.28% First Data Corp. 1,100 49,610 ================================================================================================================================== DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--2.67% Cendant Corp. 2,412 40,377 ================================================================================================================================== ENVIRONMENTAL & FACILITIES SERVICES--2.93% Waste Management, Inc. 1,400 44,212 ================================================================================================================================== FOOD RETAIL--3.25% Kroger Co. (The) (a) 1,650 30,360 ---------------------------------------------------------------------------------------------------------------------------------- Safeway Inc. 800 18,752 ================================================================================================================================== 49,112 ================================================================================================================================== GENERAL MERCHANDISE STORES--2.17% Target Corp. 600 32,850 ================================================================================================================================== HEALTH CARE DISTRIBUTORS--8.40% Cardinal Health, Inc. 1,400 100,856 ---------------------------------------------------------------------------------------------------------------------------------- McKesson Corp. 490 25,970 ================================================================================================================================== 126,826 ================================================================================================================================== HEALTH CARE EQUIPMENT--2.39% Waters Corp. (a) 860 36,077 ================================================================================================================================== INDUSTRIAL CONGLOMERATES--3.62% Tyco International Ltd. 2,100 54,705 ==================================================================================================================================
SBV-QTR-1 F-1
SHARES VALUE ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT BANKING & BROKERAGE--3.98% Merrill Lynch & Co., Inc. 800 $ 60,056 ================================================================================================================================== LEISURE PRODUCTS--2.21% Brunswick Corp. 888 33,380 ================================================================================================================================== MANAGED HEALTH CARE--4.27% WellPoint, Inc. (a) 840 64,512 ================================================================================================================================== OIL & GAS DRILLING--7.69% Pride International, Inc. (a) 1,450 51,200 ---------------------------------------------------------------------------------------------------------------------------------- Transocean Inc. (a) 800 64,920 ================================================================================================================================== 116,120 ================================================================================================================================== OIL & GAS EQUIPMENT & SERVICES--2.67% Weatherford International Ltd. (a) 900 40,302 ================================================================================================================================== OTHER DIVERSIFIED FINANCIAL SERVICES--7.27% Citigroup Inc. 1,100 51,238 ---------------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase & Co. 1,475 58,631 ================================================================================================================================== 109,869 ================================================================================================================================== PHARMACEUTICALS--9.06% Pfizer Inc. 1,300 33,384 ---------------------------------------------------------------------------------------------------------------------------------- Sanofi-Aventis (France) (b) 687 62,971 ---------------------------------------------------------------------------------------------------------------------------------- Wyeth 875 40,469 ================================================================================================================================== 136,824 ================================================================================================================================== PROPERTY & CASUALTY INSURANCE--3.08% ACE Ltd. 850 46,538 ================================================================================================================================== SEMICONDUCTOR EQUIPMENT--4.78% Brooks Automation, Inc. (a) 2,939 49,552 ---------------------------------------------------------------------------------------------------------------------------------- Novellus Systems, Inc. (a) 800 22,680 ================================================================================================================================== 72,232 ================================================================================================================================== SPECIALIZED CONSUMER SERVICES--2.93% Jackson Hewitt Tax Service Inc. 1,750 44,205 ================================================================================================================================== SYSTEMS SOFTWARE--3.70% Computer Associates International, Inc. 2,050 55,965 ================================================================================================================================== THRIFTS & MORTGAGE FINANCE--6.76% Fannie Mae 1,000 57,940 ---------------------------------------------------------------------------------------------------------------------------------- Freddie Mac 650 44,109 ================================================================================================================================== 102,049 ================================================================================================================================== Total Common Stocks & Other Equity Interests (Cost $1,098,329) 1,501,859 ================================================================================================================================== TOTAL INVESTMENTS--99.42% (Cost $1,098,329) 1,501,859 ================================================================================================================================== OTHER ASSETS LESS LIABILITIES--0.58% 8,720 ================================================================================================================================== NET ASSETS--100.00% $1,510,579 ==================================================================================================================================
SBV-QTR-1 F-2 Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The value of this security at January 31, 2006 represented 4.17% of the Fund's Net Assets. See Note 1A. See accompanying notes which are an integral part of this schedule. SBV-QTR-1 F-3 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. SBV-QTR-1 F-4 A. SECURITY VALUATIONS -- (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. NOTE 2 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $32,823 and $31,141, 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 $ 448,466 ------------------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (44,936) ============================================================================================================ Net unrealized appreciation of investment securities $ 403,530 ============================================================================================================ Cost of investments is the same for tax and financial statement purposes.
SBV-QTR-1 F-5 AIM WEINGARTEN FUND Quarterly Schedule of Portfolio Holdings o January 31, 2006 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENT LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com WEI-QTR-1 1/06 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS January 31, 2006 (Unaudited)
SHARES VALUE -------------------------------------------------------------------------------------------------------------- DOMESTIC COMMON STOCKS--89.54% AEROSPACE & DEFENSE--3.70% Boeing Co. (The) 575,000 $ 39,278,250 -------------------------------------------------------------------------------------------------------------- General Dynamics Corp. 215,000 25,017,400 -------------------------------------------------------------------------------------------------------------- Precision Castparts Corp. 500,000 24,975,000 ============================================================================================================== 89,270,650 ============================================================================================================== APPAREL RETAIL--1.50% AnnTaylor Stores Corp. (a) 375,000 12,495,000 -------------------------------------------------------------------------------------------------------------- Chico's FAS, Inc. (a) 545,000 23,740,200 ============================================================================================================== 36,235,200 ============================================================================================================== APPLICATION SOFTWARE--2.50% Amdocs Ltd. (a) 1,550,000 49,910,000 -------------------------------------------------------------------------------------------------------------- Hyperion Solutions Corp. (a) 300,000 10,323,000 ============================================================================================================== 60,233,000 ============================================================================================================== ASSET MANAGEMENT & CUSTODY BANKS--0.99% Legg Mason, Inc. 185,000 23,994,500 ============================================================================================================== BIOTECHNOLOGY--3.67% Amgen Inc. (a) 464,000 33,820,960 -------------------------------------------------------------------------------------------------------------- Genzyme Corp. (a) 170,000 12,059,800 -------------------------------------------------------------------------------------------------------------- Gilead Sciences, Inc. (a) 700,000 42,609,000 ============================================================================================================== 88,489,760 ============================================================================================================== COMMUNICATIONS EQUIPMENT--5.17% Cisco Systems, Inc. (a) 2,300,000 42,711,000 -------------------------------------------------------------------------------------------------------------- Harris Corp. 400,000 18,572,000 -------------------------------------------------------------------------------------------------------------- QUALCOMM Inc. 1,325,000 63,547,000 ============================================================================================================== 124,830,000 ============================================================================================================== COMPUTER & ELECTRONICS RETAIL--0.53% Best Buy Co., Inc. 250,000 12,665,000 ============================================================================================================== COMPUTER HARDWARE--3.26% Apple Computer, Inc. (a) 800,000 60,408,000 -------------------------------------------------------------------------------------------------------------- Dell Inc. (a) 625,000 18,318,750 ============================================================================================================== 78,726,750 ==============================================================================================================
WEI-QTR-1 F-1
SHARES VALUE -------------------------------------------------------------------------------------------------------------- COMPUTER STORAGE & PERIPHERALS--1.61% EMC Corp. (a) 2,900,000 $ 38,860,000 ============================================================================================================== CONSUMER FINANCE--0.50% American Express Co. 230,000 12,063,500 ============================================================================================================== DATA PROCESSING & OUTSOURCED SERVICES--0.78% Electronic Data Systems Corp. 750,000 18,892,500 ============================================================================================================== DEPARTMENT STORES--3.10% Federated Department Stores, Inc. 350,000 23,320,500 -------------------------------------------------------------------------------------------------------------- J.C. Penney Co., Inc. 325,000 18,135,000 -------------------------------------------------------------------------------------------------------------- Nordstrom, Inc. 800,000 33,376,000 ============================================================================================================== 74,831,500 ============================================================================================================== DIVERSIFIED BANKS--0.73% Bank of America Corp. 400,000 17,692,000 ============================================================================================================== ELECTRICAL COMPONENTS & EQUIPMENT--1.06% Emerson Electric Co. 330,000 25,558,500 ============================================================================================================== GENERAL MERCHANDISE STORES--0.91% Target Corp. 400,000 21,900,000 ============================================================================================================== HEALTH CARE DISTRIBUTORS--0.75% Cardinal Health, Inc. 250,000 18,010,000 ============================================================================================================== HEALTH CARE EQUIPMENT--0.62% Varian Medical Systems, Inc. (a) 250,000 15,052,500 ============================================================================================================== HEALTH CARE SERVICES--1.97% Caremark Rx, Inc. (a) 625,000 30,812,500 -------------------------------------------------------------------------------------------------------------- Omnicare, Inc. 337,477 16,772,607 ============================================================================================================== 47,585,107 ============================================================================================================== HEALTH CARE SUPPLIES--1.86% Alcon, Inc. 350,000 44,772,000 ============================================================================================================== HOME ENTERTAINMENT SOFTWARE--0.91% Electronic Arts Inc. (a) 400,000 21,832,000 ============================================================================================================== HOME IMPROVEMENT RETAIL--1.89% Home Depot, Inc. (The) 1,125,000 45,618,750 ==============================================================================================================
WEI-QTR-1 F-2
SHARES VALUE -------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--1.68% Procter & Gamble Co. (The) 682,500 $ 40,424,475 ============================================================================================================== INDUSTRIAL CONGLOMERATES--1.66% Textron Inc. 475,000 40,118,500 ============================================================================================================== INDUSTRIAL MACHINERY--1.98% ITT Industries, Inc. 225,000 23,062,500 -------------------------------------------------------------------------------------------------------------- Parker Hannifin Corp. 325,000 24,625,250 ============================================================================================================== 47,687,750 ============================================================================================================== INTEGRATED OIL & GAS--2.25% ConocoPhillips 350,000 22,645,000 -------------------------------------------------------------------------------------------------------------- Occidental Petroleum Corp. 325,000 31,755,750 ============================================================================================================== 54,400,750 ============================================================================================================== INTERNET RETAIL--1.63% eBay Inc. (a) 912,920 39,346,852 ============================================================================================================== INTERNET SOFTWARE & SERVICES--3.85% Google Inc.-Class A (a) 125,000 54,156,250 -------------------------------------------------------------------------------------------------------------- Yahoo! Inc. (a) 1,125,000 38,632,500 ============================================================================================================== 92,788,750 ============================================================================================================== INVESTMENT BANKING & BROKERAGE--5.43% Goldman Sachs Group, Inc. (The) 450,000 63,562,500 -------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings Inc. 275,000 38,623,750 -------------------------------------------------------------------------------------------------------------- Schwab (Charles) Corp. (The) 1,950,000 28,840,500 ============================================================================================================== 131,026,750 ============================================================================================================== MANAGED HEALTH CARE--6.02% Aetna Inc. 775,000 75,020,000 -------------------------------------------------------------------------------------------------------------- CIGNA Corp. 275,000 33,440,000 -------------------------------------------------------------------------------------------------------------- WellPoint, Inc. (a) 480,000 36,864,000 ============================================================================================================== 145,324,000 ============================================================================================================== MULTI-LINE INSURANCE--1.30% Assurant, Inc. 300,000 13,776,000 -------------------------------------------------------------------------------------------------------------- Hartford Financial Services Group, Inc. (The) 215,000 17,679,450 ============================================================================================================== 31,455,450 ============================================================================================================== OIL & GAS EQUIPMENT & SERVICES--2.92% BJ Services Co. 800,000 32,392,000 -------------------------------------------------------------------------------------------------------------- National-Oilwell Varco Inc. (a) 500,000 38,035,000 ============================================================================================================== 70,427,000 ==============================================================================================================
WEI-QTR-1 F-3
SHARES VALUE -------------------------------------------------------------------------------------------------------------- OIL & GAS REFINING & MARKETING --1.55% Valero Energy Corp. 600,000 $ 37,458,000 ============================================================================================================== PHARMACEUTICALS--2.71% Allergan, Inc. (b) 200,000 23,280,000 -------------------------------------------------------------------------------------------------------------- Barr Pharmaceuticals Inc. (a) 185,000 12,132,300 -------------------------------------------------------------------------------------------------------------- Johnson & Johnson 520,000 29,920,800 ============================================================================================================== 65,333,100 ============================================================================================================== PROPERTY & CASUALTY INSURANCE--0.97% Allstate Corp. (The) 450,000 23,422,500 ============================================================================================================== RAILROADS--1.49% Burlington Northern Santa Fe Corp. 450,000 36,054,000 ============================================================================================================== RESTAURANTS--0.92% YUM! Brands, Inc. 450,000 22,261,500 ============================================================================================================== SEMICONDUCTOR EQUIPMENT--0.81% KLA-Tencor Corp. 375,000 19,492,500 ============================================================================================================== SEMICONDUCTORS--7.89% Analog Devices, Inc. 1,700,000 67,609,000 -------------------------------------------------------------------------------------------------------------- Freescale Semiconductor, Inc.-Class B (a) 1,350,000 34,087,500 -------------------------------------------------------------------------------------------------------------- Marvell Technology Group Ltd. (a) 550,000 37,631,000 -------------------------------------------------------------------------------------------------------------- Microchip Technology Inc. 1,000,000 37,510,000 -------------------------------------------------------------------------------------------------------------- NVIDIA Corp. (a) 300,000 13,488,000 ============================================================================================================== 190,325,500 ============================================================================================================== SOFT DRINKS--0.64% PepsiCo, Inc. 270,000 15,438,600 ============================================================================================================== SPECIALIZED FINANCE--0.97% Chicago Mercantile Exchange Holdings Inc. 55,000 23,278,750 ============================================================================================================== SPECIALTY STORES--2.41% Office Depot, Inc. (a) 1,075,000 35,636,250 -------------------------------------------------------------------------------------------------------------- Tiffany & Co. 600,000 22,620,000 ============================================================================================================== 58,256,250 ============================================================================================================== SYSTEMS SOFTWARE--1.59% Oracle Corp. (a) 950,000 11,941,500 -------------------------------------------------------------------------------------------------------------- Red Hat, Inc. (a)(b) 517,669 14,986,518 -------------------------------------------------------------------------------------------------------------- Symantec Corp. (a) 625,000 11,487,500 ============================================================================================================== 38,415,518 ==============================================================================================================
WEI-QTR-1 F-4
SHARES VALUE -------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE--0.86% MGIC Investment Corp. 315,000 $ 20,793,150 ============================================================================================================== Total Domestic Common Stocks (Cost $1,652,015,558) 2,160,642,862 ============================================================================================================== FOREIGN STOCKS & OTHER EQUITY INTERESTS--10.61% AUSTRALIA--0.57% BHP Billiton Ltd. (Diversified Metals & Mining) (c) 700,000 13,801,561 ============================================================================================================== BRAZIL--0.60% Companhia Vale do Rio Doce-ADR (Steel) 285,000 14,611,950 ============================================================================================================== FINLAND --1.35% Nokia Oyj-ADR (Communications Equipment) (b) 1,775,000 32,624,500 ============================================================================================================== ISRAEL--0.97% Teva Pharmaceutical Industries Ltd.-ADR (Pharmaceuticals) (b) 550,000 23,446,500 ============================================================================================================== NETHERLANDS--0.82% ASML Holding N.V.-New York Shares (Semiconductor Equipment) (a) 875,000 19,766,250 ============================================================================================================== SOUTH KOREA--0.73% Kookmin Bank (Diversified Banks) (a)(c) 220,000 17,530,588 ============================================================================================================== SWITZERLAND--4.28% ABB Ltd. (Heavy Electrical Equipment) (a)(c) 2,350,000 25,630,948 -------------------------------------------------------------------------------------------------------------- Novartis A.G.-ADR (Pharmaceuticals) 575,000 31,717,000 -------------------------------------------------------------------------------------------------------------- Roche Holding A.G. (Pharmaceuticals) 290,000 45,826,488 ============================================================================================================== 103,174,436 ============================================================================================================== UNITED KINGDOM--1.29% Rio Tinto PLC (Diversified Metals & Mining) (c) 250,000 12,787,480 -------------------------------------------------------------------------------------------------------------- Shire PLC-ADR (Pharmaceuticals) 375,000 18,281,250 ============================================================================================================== 31,068,730 ============================================================================================================== Total Foreign Stocks & Other Equity Interests (Cost $228,117,754) 256,024,515 ==============================================================================================================
WEI-QTR-1 F-5
SHARES VALUE -------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS--0.26% Liquid Assets Portfolio-Institutional Class (d) 3,173,081 $ 3,173,081 -------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class (d) 3,173,081 3,173,081 ============================================================================================================== Total Money Market Funds (Cost $6,346,162) 6,346,162 ============================================================================================================== TOTAL INVESTMENTS--100.41% (excluding investments purchased with cash collateral from securities loaned) (Cost $1,886,479,474) 2,423,013,539 ============================================================================================================== INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--1.57% Liquid Assets Portfolio-Institutional Class (d)(e) 37,764,050 37,764,050 ============================================================================================================== Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $37,764,050) 37,764,050 ============================================================================================================== TOTAL INVESTMENTS--101.98% (Cost $1,924,243,524) 2,460,777,589 ============================================================================================================== OTHER ASSETS LESS LIABILITIES--(1.98%) (47,698,190) ============================================================================================================== NET ASSETS--100.00% $ 2,413,079,399 ______________________________________________________________________________________________________________ ==============================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for securities lending transactions at January 31, 2006. (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 January 31, 2006 was $69,750,577, which represented 2.89% of the Fund's Net Assets. See Note 1A. (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 forward 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. WEI-QTR-1 F-6 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS January 31, 2006 (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 as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. 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 registered investment companies 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 closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) 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 having 60 days or less to maturity and commercial paper are recorded at amortized cost which approximates value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. 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. WEI-QTR-1 F-7 A. SECURITY VALUATIONS -- (CONTINUED) 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. 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. 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 United States of America unless otherwise noted. D. 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. WEI-QTR-1 F-8 E. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2 -- INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission 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 three months ended January 31, 2006. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME (LOSS) ------------------------------------------------------------------------------------------------------------------------------------ Liquid Assets Portfolio- Institutional Class $ 6,032,595 $ 122,452,006 $ (125,311,520) $ -- $ 3,173,081 $ 90,580 $ -- ------------------------------------------------------------------------------------------------------------------------------------ STIC Prime Portfolio- Institutional Class 6,032,595 122,452,006 (125,311,520) -- 3,173,081 90,932 -- ==================================================================================================================================== SUBTOTAL $12,065,190 $ 244,904,012 $ (250,623,040) $ -- $ 6,346,162 $ 181,512 $ -- ====================================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
CHANGE IN UNREALIZED REALIZED VALUE PURCHASES PROCEEDS APPRECIATION VALUE DIVIDEND GAIN FUND 10/31/05 AT COST FROM SALES (DEPRECIATION) 01/31/06 INCOME* (LOSS) ------------------------------------------------------------------------------------------------------------------------------------ Liquid Assets Portfolio- Institutional Class $17,633,925 $ 98,677,040 $ (78,546,915) $ -- $ 37,764,050 $ 2,139 $ -- ==================================================================================================================================== TOTAL $29,699,115 $ 343,581,052 $ (329,169,955) $ -- $ 44,110,212 $ 183,651 $ -- ====================================================================================================================================
* 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 WEI-QTR-1 F-9 NOTE 3 -- PORTFOLIO SECURITIES LOANED (CONTINUED) 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 a loss on the collateral invested. At January 31, 2006, securities with an aggregate value of $37,034,116 were on loan to brokers. The loans were secured by cash collateral of $37,764,050 received by the Fund and subsequently invested in an affiliated money market fund. For the three months ended January 31, 2006, the Fund received dividends on cash collateral investments of $2,139 for securities lending transactions, which are net of compensation to counter parties. NOTE 5 -- INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the three months ended January 31, 2006 was $546,405,341 and $693,083,314, 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 $ 554,504,984 ---------------------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (21,033,406) ============================================================================================== Net unrealized appreciation of investment securities $ 533,471,578 ============================================================================================== Cost of investments for tax purposes is $1,927,306,011.
WEI-QTR-1 F-10 Item 2. Controls and Procedures. (a) As of March 21, 2006, 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, as amended ("Act"). Based on that evaluation, the Registrant's officers, including the PEO and PFO, concluded that, as of March 21, 2006, 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 Equity Funds By: /s/ ROBERT H. GRAHAM --------------------------------- Robert H. Graham Principal Executive Officer Date: March 31, 2006 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/ ROBERT H. GRAHAM --------------------------------- Robert H. Graham Principal Executive Officer Date: March 31, 2006 By: /s/ SIDNEY M. DILGREN --------------------------------- Sidney M. Dilgren Principal Financial Officer Date: March 31, 2006 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.