N-CSRS 1 h67069nvcsrs.txt FORM N-CSRS ------------------------ OMB APPROVAL ------------------------ OMB Number: 3235-0570 Expires: August 31, 2011 Estimated average burden hours per response: 18.9 ------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-06463 AIM International Mutual Funds (Exact name of registrant as specified in charter) 11 Greenway Plaza, Suite 100 Houston, Texas 77046 (Address of principal executive offices) (Zip code) Philip A. Taylor 11 Greenway Plaza, Suite 100 Houston, Texas 77046 (Name and address of agent for service) Registrant's telephone number, including area code: (713) 626-1919 Date of fiscal year end: 10/31 Date of reporting period: 4/30/09 Item 1. Reports to Stockholders. [INVESCO AIM LOGO] AIM ASIA PACIFIC GROWTH FUND --SERVICE MARK-- Semiannual Report to Shareholders o April 30, 2009 [MOUNTAIN GRAPHIC] Fund Performance 2 Letters to Shareholders 4 Schedule of Investments 5 Financial Statements 7 Notes to Financial Statements 10 Financial Highlights 16 Fund Expenses 18
For the most current month-end Fund performance and commentary, please visit invescoaim.com. Unless otherwise noted, all data provided by Invesco Aim. THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE FUND PERFORMANCE ======================================================================================= PERFORMANCE SUMMARY FUND VS. INDEXES Cumulative total returns, 10/31/08 to 4/30/09, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. Class A Shares 20.49% Class B Shares 20.02 Class C Shares 19.94 Class Y Shares 20.60 MSCI EAFE Index(Triangle) (Broad Market Index) -2.64 MSCI All Country Asia Pacific Ex-Japan Index(Triangle) (Style-Specific Index) 17.41 Lipper Pacific Region Ex-Japan Funds Index(Triangle) (Peer Group Index) 17.67 (Triangle) Lipper Inc. The MSCI EAFE--REGISTERED TRADEMARK-- INDEX is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI ALL COUNTRY ASIA PACIFIC EX-JAPAN INDEX measures the performance of securities listed on stock exchanges of 12 countries in the Asia-Pacific region including developed and emerging countries but excluding Japan. The LIPPER PACIFIC REGION EX-JAPAN FUNDS INDEX is an equally weighted representation of the largest funds in the Lipper Pacific Region Ex-Japan Funds category. These funds seek to concentrate their investments in equity securities with primary trading markets or operations concentrated in the Pacific region (including Asian countries) and that specifically do not invest in Japan. The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group reflects fund expenses; performance of a market index does not. =======================================================================================
2 AIM ASIA PACIFIC GROWTH FUND ========================================== ========================================== AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS As of 4/30/09, including maximum As of 3/31/09, the most recent calendar applicable sales charges quarter-end, including maximum applicable sales charges CLASS A SHARES Inception (11/3/97) 5.41% CLASS A SHARES 10 Years 6.60 Inception (11/3/97) 4.17% 5 Years 7.18 10 Years 6.92 1 Year -39.57 5 Years 3.11 1 Year -46.47 CLASS B SHARES Inception (11/3/97) 5.43% CLASS B SHARES 10 Years 6.60 Inception (11/3/97) 4.18% 5 Years 7.31 10 Years 6.94 1 Year -39.72 5 Years 3.20 1 Year -46.53 CLASS C SHARES Inception (11/3/97) 5.16% CLASS C SHARES 10 Years 6.43 Inception (11/3/97) 3.92% 5 Years 7.59 10 Years 6.77 1 Year -37.21 5 Years 3.53 1 Year -44.31 CLASS Y SHARES 10 Years 7.21% CLASS Y SHARES 5 Years 8.42 10 Years 7.53% 1 Year -36.01 5 Years 4.30 1 Year -43.28 ========================================== ========================================== CLASS Y SHARES' INCEPTION DATE IS OCTOBER THE NET ANNUAL FUND OPERATING EXPENSE THE PERFORMANCE OF THE FUND'S SHARE 3, 2008; RETURNS SINCE THAT DATE ARE RATIO SET FORTH IN THE MOST RECENT FUND CLASSES WILL DIFFER PRIMARILY DUE TO ACTUAL RETURNS. ALL OTHER RETURNS ARE PROSPECTUS AS OF THE DATE OF THIS REPORT DIFFERENT SALES CHARGE STRUCTURES AND BLENDED RETURNS OF ACTUAL CLASS Y SHARE FOR CLASS A, CLASS B, CLASS C AND CLASS Y CLASS EXPENSES. PERFORMANCE AND RESTATED CLASS A SHARE SHARES WAS 1.68%, 2.43%, 2.43% AND 1.43%, PERFORMANCE (FOR PERIODS PRIOR TO THE RESPECTIVELY.(1) THE TOTAL ANNUAL FUND HAD THE ADVISOR NOT WAIVED FEES AND/OR INCEPTION DATE OF CLASS Y SHARES) AT NET OPERATING EXPENSE RATIO SET FORTH IN THE REIMBURSED EXPENSES IN THE PAST, ASSET VALUE. THE RESTATED CLASS A SHARE MOST RECENT FUND PROSPECTUS AS OF THE DATE PERFORMANCE WOULD HAVE BEEN LOWER. PERFORMANCE REFLECTS THE RULE 12B-1 FEES OF THIS REPORT FOR CLASS A, CLASS B, CLASS APPLICABLE TO CLASS A SHARES AS WELL AS C AND CLASS Y SHARES WAS 1.69%, 2.44%, A REDEMPTION FEE OF 2% WILL BE IMPOSED ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS 2.44% AND 1.44%, RESPECTIVELY. THE EXPENSE ON CERTAIN REDEMPTIONS OR EXCHANGES OUT OF RECEIVED BY CLASS A SHARES. CLASS A RATIOS PRESENTED ABOVE MAY VARY FROM THE THE FUND WITHIN 31 DAYS OF PURCHASE. SHARES' INCEPTION DATE IS NOVEMBER 3, EXPENSE RATIOS PRESENTED IN OTHER SECTIONS EXCEPTIONS TO THE REDEMPTION FEE ARE 1997. OF THIS REPORT THAT ARE BASED ON EXPENSES LISTED IN THE FUND'S PROSPECTUS. INCURRED DURING THE PERIOD COVERED BY THIS THE PERFORMANCE DATA QUOTED REPRESENT REPORT. (1) Total annual operating expenses less PAST PERFORMANCE AND CANNOT GUARANTEE any contractual fee waivers and/or COMPARABLE FUTURE RESULTS; CURRENT CLASS A SHARE PERFORMANCE REFLECTS THE expense reimbursements by the advisor PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE MAXIMUM 5.50% SALES CHARGE, AND CLASS B in effect through at least June 30, VISIT INVESCOAIM.COM FOR THE MOST RECENT AND CLASS C SHARE PERFORMANCE REFLECTS THE 2009. See current prospectus for more MONTH-END PERFORMANCE. PERFORMANCE FIGURES APPLICABLE CONTINGENT DEFERRED SALES information. REFLECT REINVESTED DISTRIBUTIONS, CHANGES CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE IN NET ASSET VALUE AND THE EFFECT OF THE CDSC ON CLASS B SHARES DECLINES FROM 5% MAXIMUM SALES CHARGE UNLESS OTHERWISE BEGINNING AT THE TIME OF PURCHASE TO 0% AT STATED. PERFORMANCE FIGURES DO NOT REFLECT THE BEGINNING OF THE SEVENTH YEAR. THE DEDUCTION OF TAXES A SHAREHOLDER WOULD PAY CDSC ON CLASS C SHARES IS 1% FOR THE FIRST ON FUND DISTRIBUTIONS OR SALE OF FUND YEAR AFTER PURCHASE. CLASS Y SHARES DO NOT SHARES. INVESTMENT RETURN AND PRINCIPAL HAVE A FRONT-END SALES CHARGE OR A CDSC; VALUE WILL FLUCTUATE SO THAT YOU MAY HAVE THEREFORE, PERFORMANCE IS AT NET ASSET A GAIN OR LOSS WHEN YOU SELL SHARES. VALUE.
3 AIM ASIA PACIFIC GROWTH FUND Dear Fellow Shareholders: Since my last letter, continuing troubles in the global economy and financial markets have negatively affected all investors. However, mutual funds generally are more diversified than other investments; as shareholders we invest not in a single security but in a portfolio of multiple securities. Mutual fund [CROCKETT PHOTO] investors also have the opportunity to diversify further among different types of funds that each deploy a different strategy and focus on different kinds of securities. To develop a diversified and disciplined investing plan that is right for you, I encourage you to consult an investment professional who has the Bruce Crockett knowledge and the tools to help you establish, implement, and monitor the plan. You may also visit the Invesco Aim website at invescoaim.com to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by Corporate Insight. As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring investment performance and streamlining the investment management process. Your Board has already begun the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most cost-effective ways for you to invest your hard-earned money. Please feel free to contact me in writing with your questions or concerns. You can send an email to me at bruce@brucecrockett.com. Sincerely, /s/ BRUCE L. CROCKETT Bruce L.Crockett Independent Chair, AIM Funds Board of Trustees Dear Shareholders: The past year was difficult to say the least for virtually all investors. Market indexes in the U.S. and around the globe declined sharply in 2008, and "market experts" remain divided on the markets' outlook. [TAYLOR PHOTO] Recent history should have reminded all of us that investor sentiment can be fickle. This is why we believe investors should work with their financial advisors to devise a goals-based financial strategy - a long-term plan with a reasonable prospect of achieving predetermined financial goals inline with individual Philip Taylor risk tolerance. Such a strategy cannot guarantee a profit or protect against loss in a declining market, but it may help investors avoid emotion-driven, short-term investment mistakes. None of us can control the markets, but we can control our own reaction to the unsettling volatility we're experiencing. Your financial advisor can work with you to create a specific, concrete investment plan consistent with your financial goals and risk tolerance - a long-term plan guided by logic, not emotion. Invesco Aim has worked on behalf of investors in both bull markets and bear markets. We're focused on doing one thing well: managing your money. If you have questions about this report or your account, please contact one of our client service representatives at 800 9594246. I invite you to visit invescoaim.com, where you can check on your individual account and obtain long-term performance information for your fund. By clicking on the "more" link next to the "Investment Perspective" headline at the top of the page, you can also read my detailed market updates and my interview with Invesco's chief economist - as well as other market and fund commentaries by Invesco's investment professionals. As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind. Thank you for investing with us. All of us at Invesco Aim look forward to serving you. Sincerely, /s/ PHILIP TAYLOR Philip Taylor Senior Managing Director, Invesco Ltd. CEO, Invesco Aim
4 AIM ASIA PACIFIC GROWTH FUND SCHEDULE OF INVESTMENTS(a) April 30, 2009 (Unaudited)
SHARES VALUE -------------------------------------------------------------------------------- FOREIGN COMMON STOCKS & OTHER EQUITY INTERESTS-91.48% AUSTRALIA-13.21% BHP Billiton Ltd. 296,960 $ 7,148,483 -------------------------------------------------------------------------------- Coca-Cola Amatil Ltd. 500,000 3,321,019 -------------------------------------------------------------------------------- Cochlear Ltd. 133,000 4,803,560 -------------------------------------------------------------------------------- Computershare Ltd. 287,336 1,908,497 -------------------------------------------------------------------------------- CSL Ltd.(b) 192,000 4,802,499 -------------------------------------------------------------------------------- CSL Ltd. 111,336 2,784,849 -------------------------------------------------------------------------------- QBE Insurance Group Ltd. 306,491 4,833,940 -------------------------------------------------------------------------------- Toll Holdings Ltd. 599,674 2,571,120 -------------------------------------------------------------------------------- Woolworths Ltd. 217,200 4,217,464 ================================================================================ 36,391,431 ================================================================================ CHINA-16.86% Agile Property Holdings Ltd. 2,974,000 2,210,297 -------------------------------------------------------------------------------- China Green (Holdings) Ltd. 3,204,000 2,575,553 -------------------------------------------------------------------------------- China Nepstar Chain Drugstore Ltd.-ADR 228,503 1,151,655 -------------------------------------------------------------------------------- CNOOC Ltd.-ADR 76,600 8,529,410 -------------------------------------------------------------------------------- Haitian International Holdings Ltd. 9,624,000 2,039,573 -------------------------------------------------------------------------------- Industrial and Commercial Bank of China Ltd.-Class H 6,485,000 3,687,337 -------------------------------------------------------------------------------- Kingdee International Software Group Co. Ltd. 9,012,000 1,528,773 -------------------------------------------------------------------------------- Mingyuan Medicare Development Co. Ltd. 12,220,000 892,606 -------------------------------------------------------------------------------- Minth Group Ltd. 5,884,000 3,644,213 -------------------------------------------------------------------------------- Stella International Holdings Ltd. 4,792,000 6,368,599 -------------------------------------------------------------------------------- Want Want China Holdings Ltd. 4,839,000 2,428,819 -------------------------------------------------------------------------------- Xinao Gas Holdings Ltd. 1,174,000 1,609,006 -------------------------------------------------------------------------------- Xinyi Glass Holdings Co. Ltd. 15,712,000 9,760,739 ================================================================================ 46,426,580 ================================================================================ HONG KONG-9.56% Cheung Kong (Holdings) Ltd. 724,000 7,477,747 -------------------------------------------------------------------------------- Dickson Concepts (International) Ltd. 5,426,000 1,685,510 -------------------------------------------------------------------------------- Esprit Holdings Ltd. 341,400 2,092,636 -------------------------------------------------------------------------------- Hongkong Land Holdings Ltd. 670,000 1,660,905 -------------------------------------------------------------------------------- Hutchison Whampoa Ltd. 1,202,000 7,056,371 -------------------------------------------------------------------------------- Li & Fung Ltd. 948,200 2,669,051 -------------------------------------------------------------------------------- Paliburg Holdings Ltd. 11,613,240 1,489,386 -------------------------------------------------------------------------------- Paliburg Holdings Ltd.-Wts., expiring 11/08/10(b)(c) 12,214,600 23,641 -------------------------------------------------------------------------------- Regal Hotels International Holdings Ltd. 11,344,000 2,185,499 ================================================================================ 26,340,746 ================================================================================ INDIA-2.75% Bharat Heavy Electricals Ltd. 97,085 3,221,886 -------------------------------------------------------------------------------- Infosys Technologies Ltd. 143,608 4,351,593 ================================================================================ 7,573,479 ================================================================================ INDONESIA-7.87% PT Astra International Tbk 5,216,000 8,800,456 -------------------------------------------------------------------------------- PT Bank Central Asia Tbk 16,419,000 5,139,691 -------------------------------------------------------------------------------- PT Indocement Tunggal Prakarsa Tbk 7,777,500 4,282,200 -------------------------------------------------------------------------------- PT Summarecon Agung Tbk 142,313,500 3,461,130 ================================================================================ 21,683,477 ================================================================================ MALAYSIA-9.85% Digi.com Berhad 680,800 4,265,611 -------------------------------------------------------------------------------- Goldis Berhad 6,047,000 2,344,639 -------------------------------------------------------------------------------- Kossan Rubber Industries Berhad 7,048,900 7,129,855 -------------------------------------------------------------------------------- Parkson Holdings Berhad 5,805,900 6,753,214 -------------------------------------------------------------------------------- Public Bank Berhad 1,233,500 2,975,208 -------------------------------------------------------------------------------- SP Setia Berhad 1,213,100 1,202,259 -------------------------------------------------------------------------------- YTL Cement Berhad 3,023,600 2,446,660 ================================================================================ 27,117,446 ================================================================================ PHILIPPINES-8.91% First Gen Corp.(b)(c) 1,279,400 496,199 -------------------------------------------------------------------------------- First Gen Corp.(c) 1,379,000 534,828 -------------------------------------------------------------------------------- GMA Holdings, Inc.-PDR(b)(d) 1,468,000 130,570 -------------------------------------------------------------------------------- GMA Holdings, Inc.-PDR(d) 51,811,000 4,608,281 -------------------------------------------------------------------------------- Philippine Long Distance Telephone Co. 143,760 6,545,918 -------------------------------------------------------------------------------- PNOC Energy Development Corp.(b) 2,335,000 174,526 -------------------------------------------------------------------------------- PNOC Energy Development Corp. 34,575,000 2,584,249 -------------------------------------------------------------------------------- SM Investments Corp. 1,886,235 9,480,923 ================================================================================ 24,555,494 ================================================================================ SINGAPORE-4.23% Keppel Corp. Ltd. 1,484,000 5,933,722 -------------------------------------------------------------------------------- Singapore Technologies Engineering Ltd. 1,126,000 1,942,714 -------------------------------------------------------------------------------- United Overseas Bank Ltd. 492,000 3,787,199 ================================================================================ 11,663,635 ================================================================================ SOUTH KOREA-5.61% CJ CheilJedang Corp. 13,148 1,614,239 -------------------------------------------------------------------------------- CJ Corp. 75,690 2,916,205 -------------------------------------------------------------------------------- Hyundai Department Store Co., Ltd. 59,700 3,699,404 -------------------------------------------------------------------------------- Hyundai Development Co. 69,480 2,157,088 --------------------------------------------------------------------------------
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 5 AIM ASIA PACIFIC GROWTH FUND
SHARES VALUE -------------------------------------------------------------------------------- SOUTH KOREA-(CONTINUED) Hyundai H&S Co., Ltd. 40,710 $ 1,830,911 -------------------------------------------------------------------------------- Lotte Confectionery Co., Ltd. 4,034 3,238,645 ================================================================================ 15,456,492 ================================================================================ TAIWAN-7.24% Delta Electronics Inc. 1,035,675 2,254,899 -------------------------------------------------------------------------------- Hung Poo Real Estate Development Corp. 5,622,435 5,189,738 -------------------------------------------------------------------------------- Taiwan Mobile Co., Ltd. 2,844,298 4,530,389 -------------------------------------------------------------------------------- Taiwan Semiconductor Manufacturing Co. Ltd. 2,941,756 4,909,302 -------------------------------------------------------------------------------- Wistron Corp. 2,409,848 3,052,655 ================================================================================ 19,936,983 ================================================================================ THAILAND-5.39% CP ALL PCL 1,114,900 393,950 -------------------------------------------------------------------------------- Kasikornbank PCL 2,210,200 3,508,502 -------------------------------------------------------------------------------- Major Cineplex Group PCL 16,515,800 2,974,822 -------------------------------------------------------------------------------- Siam Commercial Bank PCL 3,246,900 5,545,340 -------------------------------------------------------------------------------- Thai Stanley Electric PCL-Class F 1,260,100 2,419,551 ================================================================================ 14,842,165 ================================================================================ Total Foreign Common Stocks & Other Equity Interests (Cost $288,880,244) 251,987,928 ================================================================================ MONEY MARKET FUNDS-4.58% Liquid Assets Portfolio-Institutional Class(e) 6,299,943 6,299,943 -------------------------------------------------------------------------------- Premier Portfolio-Institutional Class(e) 6,299,943 6,299,943 ================================================================================ Total Money Market Funds (Cost $12,599,886) 12,599,886 ================================================================================ TOTAL INVESTMENTS-96.06% (Cost $301,480,130) 264,587,814 ================================================================================ OTHER ASSETS LESS LIABILITIES-3.94% 10,856,751 ================================================================================ NET ASSETS-100.00% $275,444,565 ________________________________________________________________________________ ================================================================================
Investment Abbreviations: ADR - American Depositary Receipt PDR - Philippine Deposit Receipts Wts. - Warrants
Notes to Schedule of Investments: (a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor's. (b) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2009 was $5,627,435, which represented 2.04% of the Fund's Net Assets. (c) Non-income producing security. (d) Affiliated company during the period. The Investment Company Act of 1940 defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The aggregate value of this security as of April 30, 2009 represented 1.72% of the Fund's Net Assets. See Note 4. (e) The money market fund and the Fund are affiliated by having the same investment advisor. PORTFOLIO COMPOSITION By sector, based on Net Assets as of April 30, 2009 ------------------------------------------------------------------------- Consumer Discretionary 22.2% ------------------------------------------------------------------------- Financials 18.4 ------------------------------------------------------------------------- Industrials 13.5 ------------------------------------------------------------------------- Materials 7.6 ------------------------------------------------------------------------- Consumer Staples 6.9 ------------------------------------------------------------------------- Information Technology 6.5 ------------------------------------------------------------------------- Health Care 5.7 ------------------------------------------------------------------------- Telecommunication Services 5.6 ------------------------------------------------------------------------- Energy 3.1 ------------------------------------------------------------------------- Utilities 2.0 ------------------------------------------------------------------------- Money Market Funds Plus Other Assets Less Liabilities 8.5 _________________________________________________________________________ =========================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 6 AIM ASIA PACIFIC GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) ASSETS: Investments, at value (Cost $277,299,277) $247,249,077 -------------------------------------------------------------------------------- Investments in affiliates, at value (Cost $24,180,853) 17,338,737 ================================================================================ Total investments, at value (Cost $301,480,130) 264,587,814 ================================================================================ Cash 585,599 -------------------------------------------------------------------------------- Foreign currencies, at value (Cost $8,895,979) 9,048,678 -------------------------------------------------------------------------------- Receivables for: Investments sold 961,118 -------------------------------------------------------------------------------- Fund shares sold 292,031 -------------------------------------------------------------------------------- Dividends 969,263 -------------------------------------------------------------------------------- Investment for trustee deferred compensation and retirement plans 21,303 -------------------------------------------------------------------------------- Other assets 26,297 ================================================================================ Total assets 276,492,103 ________________________________________________________________________________ ================================================================================ LIABILITIES: Payables for: Investments purchased 15,822 -------------------------------------------------------------------------------- Fund shares reacquired 264,361 -------------------------------------------------------------------------------- Accrued fees to affiliates 246,653 -------------------------------------------------------------------------------- Accrued other operating expenses 468,221 -------------------------------------------------------------------------------- Trustee deferred compensation and retirement plans 52,481 ================================================================================ Total liabilities 1,047,538 ================================================================================ Net assets applicable to shares outstanding $275,444,565 ________________________________________________________________________________ ================================================================================ NET ASSETS CONSIST OF: Shares of beneficial interest $346,422,075 -------------------------------------------------------------------------------- Undistributed net investment income 681,670 -------------------------------------------------------------------------------- Undistributed net realized gain (loss) (34,920,489) -------------------------------------------------------------------------------- Unrealized appreciation (depreciation) (36,738,691) ================================================================================ $275,444,565 ________________________________________________________________________________ ================================================================================ NET ASSETS: Class A $206,213,212 ________________________________________________________________________________ ================================================================================ Class B $ 25,857,393 ________________________________________________________________________________ ================================================================================ Class C $ 37,549,914 ________________________________________________________________________________ ================================================================================ Class Y $ 5,824,046 ________________________________________________________________________________ ================================================================================ SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES AUTHORIZED: Class A 12,999,725 ________________________________________________________________________________ ================================================================================ Class B 1,717,292 ________________________________________________________________________________ ================================================================================ Class C 2,505,778 ________________________________________________________________________________ ================================================================================ Class Y 366,810 ________________________________________________________________________________ ================================================================================ Class A: Net asset value per share $ 15.86 -------------------------------------------------------------------------------- Maximum offering price per share (Net asset value of $15.86 divided by 94.50%) $ 16.78 ________________________________________________________________________________ ================================================================================ Class B: Net asset value and offering price per share $ 15.06 ________________________________________________________________________________ ================================================================================ Class C: Net asset value and offering price per share $ 14.99 ________________________________________________________________________________ ================================================================================ Class Y: Net asset value and offering price per share $ 15.88 ________________________________________________________________________________ ================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 7 AIM ASIA PACIFIC GROWTH FUND STATEMENT OF OPERATIONS For the six months ended April 30, 2009 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding taxes of $386,579) $ 2,921,610 ------------------------------------------------------------------------------------------------ Dividends from affiliates 319,170 ================================================================================================ Total investment income 3,240,780 ================================================================================================ EXPENSES: Advisory fees 1,108,289 ------------------------------------------------------------------------------------------------ Administrative services fees 42,140 ------------------------------------------------------------------------------------------------ Custodian fees 105,949 ------------------------------------------------------------------------------------------------ Distribution fees: Class A 219,827 ------------------------------------------------------------------------------------------------ Class B 118,430 ------------------------------------------------------------------------------------------------ Class C 165,174 ------------------------------------------------------------------------------------------------ Transfer agent fees 582,504 ------------------------------------------------------------------------------------------------ Trustees' and officers' fees and benefits 13,769 ------------------------------------------------------------------------------------------------ Other 146,119 ================================================================================================ Total expenses 2,502,201 ================================================================================================ Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (11,963) ================================================================================================ Net expenses 2,490,238 ================================================================================================ Net investment income 750,542 ================================================================================================ REALIZED AND UNREALIZED GAIN (LOSS) FROM: Net realized gain (loss) from: Investment securities (includes net gains (losses) from securities sold to affiliates of $(3,563) and net of foreign taxes of $11) (33,463,778) ------------------------------------------------------------------------------------------------ Foreign currencies (248,017) ================================================================================================ (33,711,795) ================================================================================================ Change in net unrealized appreciation of: Investment securities (net of foreign taxes on holdings of $(115,365)) 78,016,186 ------------------------------------------------------------------------------------------------ Foreign currencies 292,784 ================================================================================================ 78,308,970 ================================================================================================ Net realized and unrealized gain 44,597,175 ================================================================================================ Net increase in net assets resulting from operations $ 45,347,717 ________________________________________________________________________________________________ ================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 8 AIM ASIA PACIFIC GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2009 and the year ended October 31, 2008 (Unaudited)
APRIL 30, OCTOBER 31, 2009 2008 ---------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 750,542 $ 6,858,483 ---------------------------------------------------------------------------------------------------------- Net realized gain (loss) (33,711,795) (2,447,864) ---------------------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) 78,308,970 (421,814,809) ========================================================================================================== Net increase (decrease) in net assets resulting from operations 45,347,717 (417,404,190) ========================================================================================================== Distributions to shareholders from net investment income: Class A (4,688,360) (3,795,249) ---------------------------------------------------------------------------------------------------------- Class B (215,906) (99,294) ---------------------------------------------------------------------------------------------------------- Class C (302,990) (143,490) ---------------------------------------------------------------------------------------------------------- Class Y (113,956) -- ========================================================================================================== Total distributions from net investment income (5,321,212) (4,038,033) ========================================================================================================== Distributions to shareholders from net realized gains: Class A -- (61,909,244) ---------------------------------------------------------------------------------------------------------- Class B -- (9,486,893) ---------------------------------------------------------------------------------------------------------- Class C -- (13,709,431) ========================================================================================================== Total distributions from net realized gains -- (85,105,568) ========================================================================================================== Share transactions-net: Class A (12,646,648) (82,788,560) ---------------------------------------------------------------------------------------------------------- Class B (4,819,088) (12,163,274) ---------------------------------------------------------------------------------------------------------- Class C (5,727,089) (16,048,978) ---------------------------------------------------------------------------------------------------------- Class Y 549,784 5,629,069 ========================================================================================================== Net increase (decrease) in net assets resulting from share transactions (22,643,041) (105,371,743) ========================================================================================================== Net increase (decrease) in net assets 17,383,464 (611,919,534) ========================================================================================================== NET ASSETS: Beginning of period 258,061,101 869,980,635 ========================================================================================================== End of period (includes undistributed net investment income of $681,670 and $5,252,340, respectively) $275,444,565 $ 258,061,101 __________________________________________________________________________________________________________ ==========================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 9 AIM ASIA PACIFIC GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 2009 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM Asia Pacific Growth Fund (the "Fund") is a series portfolio of AIM International Mutual Funds (the "Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end series management investment company consisting of six separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The Fund's investment objective is long-term growth of capital. The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver shares may be subject to contingent deferred sales charges ("CDSC"). Class B shares and Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. 10 AIM ASIA PACIFIC GROWTH FUND B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment advisor may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. D. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. G. ACCOUNTING ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. I. REDEMPTION FEES -- The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. J. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. K. 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 11 AIM ASIA PACIFIC GROWTH FUND between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES The Trust has entered into a master investment advisory agreement with Invesco Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Advisor based on the annual rate of the Fund's average daily net assets as follows:
AVERAGE NET ASSETS RATE ------------------------------------------------------------------- First $250 million 0.935% ------------------------------------------------------------------- Next $250 million 0.91% ------------------------------------------------------------------- Next $500 million 0.885% ------------------------------------------------------------------- Next $1.5 billion 0.86% ------------------------------------------------------------------- Next $2.5 billion 0.835% ------------------------------------------------------------------- Next $2.5 billion 0.81% ------------------------------------------------------------------- Next $2.5 billion 0.785% ------------------------------------------------------------------- Over $10 billion 0.76% ___________________________________________________________________ ===================================================================
Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Advisor and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-Advisor(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Advisor(s). The Advisor has contractually agreed, through at least June 30, 2009, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Advisor receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the six months ended April 30, 2009, the Advisor waived advisory fees of $4,008. At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the AIM Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended April 30, 2009, Invesco reimbursed expenses of the Fund in the amount of $627. The Trust has entered into a master administrative services agreement with Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees. The Trust has entered into a transfer agency and service agreement with Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has agreed to pay IAIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the course of providing such services. IAIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IAIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust's Board of Trustees. For the six months ended April 30, 2009, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees. The Trust has entered into master distribution agreements with Invesco Aim Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class B, Class C and Class Y shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A, Class B and Class C shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays IADI compensation at the annual rate of 0.25% of the Fund's average daily net assets of Class A shares and 1.00% of the average daily net assets of each class of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") impose a cap on the total sales charges, including asset- based sales charges that may be paid by any class of shares of the Fund. For the six months ended April 30, 2009, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees. Front-end sales commissions and CDSC (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2009, IADI advised the Fund that IADI retained $18,531 in front-end sales commissions from the sale of Class A shares and $3,055, $35,188 and $6,029 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. Certain officers and trustees of the Trust are officers and directors of Invesco Aim, IAIS and/or IADI. 12 AIM ASIA PACIFIC GROWTH FUND NOTE 3--SUPPLEMENTAL INFORMATION The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level: Level 1 -- Prices are determined using quoted prices in an active market for identical assets. Level 2 -- Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level 3 -- Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. The following is a summary of the tiered valuation input levels, as of the end of the reporting period, April 30, 2009. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
INVESTMENTS IN INPUT LEVEL SECURITIES -------------------------------------- Level 1 $123,235,310 -------------------------------------- Level 2 141,352,504 -------------------------------------- Level 3 -- ====================================== $264,587,814 ______________________________________ ======================================
NOTE 4--INVESTMENTS IN OTHER AFFILIATES The Investment Company Act of 1940 defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The following is a summary of the investments in affiliates for the six months ended April 30, 2009.
CHANGE IN VALUE PURCHASES PROCEEDS UNREALIZED VALUE DIVIDEND REALIZED 10/31/08 AT COST FROM SALES APPRECIATION 04/30/09 INCOME GAIN (LOSS) ------------------------------------------------------------------------------------------------------------------------------ GMA Holdings, Inc. -PDR $ 4,573,071 $ -- $ -- $ 165,780 $ 4,738,851 $273,657 $-- ______________________________________________________________________________________________________________________________ ==============================================================================================================================
NOTE 5--SECURITY TRANSACTIONS WITH AFFILIATED FUNDS The Fund is permitted to purchase or sell securities from or to certain other AIM Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment advisor (or affiliated investment advisors), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended April 30, 2009, the Fund engaged in securities sales of $42,413, which resulted in net realized gains (losses) of $(3,563). NOTE 6--EXPENSE OFFSET ARRANGEMENTS The expense offset arrangements are comprised of (i) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (ii) custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended April 30, 2009, the Fund received credits from these arrangements, which resulted in the reduction of the Fund's total expenses of $7,328. NOTE 7--TRUSTEES' AND OFFICERS' FEES AND BENEFITS "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and "Trustees' and Officers' Fees and Benefits" also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various AIM Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund. 13 AIM ASIA PACIFIC GROWTH FUND During the six months ended April 30, 2009, the Fund paid legal fees of $2,227 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. NOTE 8--CASH BALANCES The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco Aim, not to exceed the contractually agreed upon rate. NOTE 9--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end. Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. Any limitation on capital loss use would be in prior annual report. The Fund had a capital loss carryforward as of October 31, 2008 which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD* ----------------------------------------------------------------------------------------------- October 31, 2016 $964,291 _______________________________________________________________________________________________ ===============================================================================================
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. NOTE 10--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2009 was $20,950,160 and $60,299,758, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS ------------------------------------------------------------------------------------------------ Aggregate unrealized appreciation of investment securities $ 37,324,506 ------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (74,461,225) ================================================================================================ Net unrealized appreciation (depreciation) of investment securities $(37,136,719) ________________________________________________________________________________________________ ================================================================================================ Cost of investments for tax purposes is $301,724,533.
14 AIM ASIA PACIFIC GROWTH FUND NOTE 11--SHARE INFORMATION
SUMMARY OF SHARE ACTIVITY ------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED APRIL 30, 2009(a) OCTOBER 31, 2008 --------------------------- ------------------------------------- SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------- Sold: Class A 1,221,974 $ 16,510,449 4,613,156 $ 121,544,675 ------------------------------------------------------------------------------------------------------------------------------- Class B 89,600 1,139,875 433,222 10,960,605 ------------------------------------------------------------------------------------------------------------------------------- Class C 248,504 3,163,005 884,628 22,316,753 ------------------------------------------------------------------------------------------------------------------------------- Class Y(b) 52,762 658,771 329,465 5,747,508 =============================================================================================================================== Issued as reinvestment of dividends: Class A 339,942 4,419,246 2,141,494 59,983,256 ------------------------------------------------------------------------------------------------------------------------------- Class B 16,479 204,009 340,688 8,987,340 ------------------------------------------------------------------------------------------------------------------------------- Class C 22,769 280,514 485,504 12,749,319 ------------------------------------------------------------------------------------------------------------------------------- Class Y 8,633 112,231 -- -- =============================================================================================================================== Automatic conversion of Class B shares to Class A shares: Class A 123,037 1,650,682 466,651 11,453,713 ------------------------------------------------------------------------------------------------------------------------------- Class B (129,937) (1,650,682) (496,690) (11,453,713) =============================================================================================================================== Reacquired:(c) Class A(b) (2,694,768) (35,227,025) (11,605,998) (275,770,204) ------------------------------------------------------------------------------------------------------------------------------- Class B (367,606) (4,512,290) (949,454) (20,657,506) ------------------------------------------------------------------------------------------------------------------------------- Class C (753,200) (9,170,608) (2,344,095) (51,115,050) ------------------------------------------------------------------------------------------------------------------------------- Class Y (16,422) (221,218) (7,628) (118,439) =============================================================================================================================== Net increase (decrease) in share activity (1,838,233) $(22,643,041) (5,709,057) $(105,371,743) _______________________________________________________________________________________________________________________________ ===============================================================================================================================
(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 16% of the outstanding shares of the Fund. IADI has an agreement with these entities to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco Aim and/or Invesco Aim affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. (b) Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A into Class Y shares of the Fund:
CLASS SHARES AMOUNT ---------------------------------------------------------------------------------------------------- Class Y 326,848 $ 5,710,032 ---------------------------------------------------------------------------------------------------- Class A (326,848) (5,710,032) ____________________________________________________________________________________________________ ====================================================================================================
(c) Net of redemption fees of $15,437 and $64,912 for the six months ended April 30, 2009 and the year ended October 31, 2008, respectively. 15 AIM ASIA PACIFIC GROWTH FUND NOTE 12--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
NET GAINS (LOSSES) NET ASSET NET ON SECURITIES DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT (BOTH TOTAL FROM FROM NET FROM NET NET ASSET BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL VALUE, END OF PERIOD (LOSS)(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD(c) ----------------------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $13.52 $ 0.05 $ 2.64(b) $ 2.69 $(0.35) $ -- $(0.35) $15.86 Year ended 10/31/08 35.16 0.34 (18.36) (18.02) (0.21) (3.41) (3.62) 13.52 Year ended 10/31/07 22.82 0.24 13.00 13.24 (0.10) (0.80) (0.90) 35.16 Year ended 10/31/06 16.41 0.14 6.39 6.53 (0.12) -- (0.12) 22.82 Year ended 10/31/05 13.72 0.14 2.55 2.69 -- -- -- 16.41 Year ended 10/31/04 12.07 (0.01) 1.66 1.65 -- -- -- 13.72 ----------------------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 12.65 0.01 2.51 2.52 (0.11) -- (0.11) 15.06 Year ended 10/31/08 33.19 0.14 (17.23) (17.09) (0.04) (3.41) (3.45) 12.65 Year ended 10/31/07 21.65 0.02 12.32 12.34 -- (0.80) (0.80) 33.19 Year ended 10/31/06 15.61 (0.01) 6.08 6.07 (0.03) -- (0.03) 21.65 Year ended 10/31/05 13.14 0.03 2.44 2.47 -- -- -- 15.61 Year ended 10/31/04 11.64 (0.09) 1.59 1.50 -- -- -- 13.14 ----------------------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 12.59 0.01 2.50 2.51 (0.11) -- (0.11) 14.99 Year ended 10/31/08 33.06 0.14 (17.16) (17.02) (0.04) (3.41) (3.45) 12.59 Year ended 10/31/07 21.56 0.02 12.28 12.30 -- (0.80) (0.80) 33.06 Year ended 10/31/06 15.55 (0.01) 6.05 6.04 (0.03) -- (0.03) 21.56 Year ended 10/31/05 13.09 0.03 2.43 2.46 -- -- -- 15.55 Year ended 10/31/04 11.60 (0.09) 1.58 1.49 -- -- -- 13.09 ----------------------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 13.52 0.07 2.65 2.72 (0.36) -- (0.36) 15.88 Year ended 10/31/08(f) 17.47 0.02 (3.97) (3.95) -- -- -- 13.52 ___________________________________________________________________________________________________________________________________ =================================================================================================================================== RATIO OF RATIO OF EXPENSES EXPENSES TO AVERAGE TO AVERAGE NET RATIO OF NET NET ASSETS ASSETS WITHOUT INVESTMENT NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME (LOSS) TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO RETURN(d) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(e) -------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 20.49%(b) $206,213 1.94%(g) 1.94%(g) 0.83%(g) 9% Year ended 10/31/08 (56.58) 189,403 1.67 1.68 1.34 25 Year ended 10/31/07 59.90 646,720 1.61 1.63 0.84 41 Year ended 10/31/06 39.97 292,771 1.83 1.85 0.68 58 Year ended 10/31/05 19.61 156,379 2.01 2.03 0.85 36 Year ended 10/31/04 13.67 106,129 2.23 2.25 (0.09) 68 -------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 20.10 25,857 2.69(g) 2.69(g) 0.08(g) 9 Year ended 10/31/08 (56.91) 26,678 2.42 2.43 0.59 25 Year ended 10/31/07 58.70 92,295 2.36 2.38 0.09 41 Year ended 10/31/06 38.96 53,936 2.58 2.60 (0.07) 58 Year ended 10/31/05 18.80 35,600 2.69 2.71 0.17 36 Year ended 10/31/04 12.89 29,174 2.88 2.90 (0.74) 68 -------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 20.12 37,550 2.69(g) 2.69(g) 0.08(g) 9 Year ended 10/31/08 (56.92) 37,630 2.42 2.43 0.59 25 Year ended 10/31/07 58.77 130,965 2.36 2.38 0.09 41 Year ended 10/31/06 38.92 54,898 2.58 2.60 (0.07) 58 Year ended 10/31/05 18.79 26,626 2.69 2.71 0.17 36 Year ended 10/31/04 12.84 11,220 2.88 2.90 (0.74) 68 -------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 20.68 5,824 1.69(g) 1.69(g) 1.08(g) 9 Year ended 10/31/08(f) (22.61) 4,351 1.52(h) 1.52(h) 1.49(h) 25 ____________________________________________________________________________________________________________________ ====================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes litigation proceeds received during the period. Had the litigation proceeds not been received, Net gains(losses) on securities (both realized and unrealized) per share would have been $2.55, $2.42, $2.41 and $2.56 for Class A, Class B, Class C and Class Y shares, respectively and total return would have been lower. (c) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. (d) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. (e) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. (f) Commencement date of October 3, 2008. (g) Ratios are annualized and based on average daily net assets (000's omitted) of $177,319, $23,882, $33,309, and $4,522 for Class A, Class B, Class C, and Class Y shares, respectively. (h) Annualized. 16 AIM ASIA PACIFIC GROWTH FUND NOTE 13--LEGAL PROCEEDINGS Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note. SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING On May 23, 2008, the Securities and Exchange Commission ("SEC") publicly posted its final approval of the Distribution Plans ("Distribution Plans") for the distribution of monies placed into two separate Fair Funds created pursuant to a settlement reached on October 8, 2004 between Invesco Funds Group, Inc. ("IFG"), Invesco Aim Advisors, Inc. ("Invesco Aim") and Invesco Aim Distributors, Inc. ("IADI") and the SEC (the "Order"). One of the Fair Funds consists of $325 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds formerly advised by IFG who may have been harmed by market timing and related activity. The second Fair Fund consists of $50 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds advised by Invesco Aim who may have been harmed by market timing and related activity. The Distribution Plans provide for the distribution to all eligible investors to compensate such investors for injury they may have suffered as a result of market timing in the affected funds. The Distribution Plans include a provision for any residual amounts in the Fair Funds to be distributed in the future to the affected funds. At this time, management of Invesco Aim and the Fund are unable to estimate the residual distribution to the Fund, if any. At the request of the trustees of the AIM Funds, Invesco Ltd. ("Invesco"), the parent company of IFG and Invesco Aim, has agreed to reimburse expenses incurred by the AIM Funds related to market timing matters. PENDING LITIGATION AND REGULATORY INQUIRIES Civil lawsuits, including purported class action and shareholder derivative suits, have been filed against certain of the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals alleging that the defendants permitted improper market timing and related activity in the AIM Funds. These lawsuits allege as theories of recovery, depending on the lawsuit, violations of various provisions of the Federal and state securities laws and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), negligence, breach of fiduciary duty and/or breach of contract. These lawsuits seek remedies that include, depending on the lawsuit, damages, restitution, injunctive relief, imposition of a constructive trust, removal of certain directors and/or employees, various corrective measures under ERISA, rescission of certain AIM Funds' advisory agreements and/or distribution plans and recovery of all fees paid. All lawsuits based on allegations of market timing, late trading and related issues were transferred to the United States District Court for the District of Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in these lawsuits consolidated their claims for pre-trial purposes into three amended complaints against various Invesco Aim- and IFG-related parties: (i) a Consolidated Amended Class Action Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly brought on behalf of participants in the Invesco 401(k) plan. Based on orders issued by the MDL Court, all claims asserted against the AIM Funds that have been transferred to the MDL Court have been dismissed, although certain Funds remain nominal defendants in the Consolidated Amended Fund Derivative Complaint. On January 5, 2008, the parties reached an agreement in principle to settle both the Consolidated Amended Class Action Complaint and Consolidated Amended Fund Derivative Complaint, subject to the MDL Court approval. Individual class members have the right to object. On December 15, 2008, the parties reached an agreement in principle to settle the Amended Class Action Complaint for Violations of ERISA, subject to the MDL Court approval. Individual class members have the right to object. No payments are required under the settlement; however, the parties agreed that certain limited changes to benefit plans and participants' accounts would be made. IFG, Invesco Aim, IADI and/or related entities and individuals have received inquiries from numerous regulators in the form of subpoenas or other oral or written requests for information and/or documents related to one or more of the following issues, among others, some of which concern one or more AIM Funds: market timing activity, late trading, fair value pricing, excessive or improper advisory and/or distribution fees, mutual fund sales practices, including revenue sharing and directed-brokerage arrangements, investments in securities of other registered investment companies, contractual plans, issues related to Section 529 college savings plans and procedures for locating lost security holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing full cooperation with respect to these inquiries. Regulatory actions and/or additional civil lawsuits related to these or other issues may be filed against the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in the future. 17 AIM ASIA PACIFIC GROWTH FUND NOTE 13--LEGAL PROCEEDINGS--(CONTINUED) CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
--------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO --------------------------------------------------------------------------------------------------- A $1,000.00 $1,204.90 $10.61 $1,015.17 $ 9.69 1.94% --------------------------------------------------------------------------------------------------- B 1,000.00 1,200.20 14.67 1,011.46 13.42 2.69 --------------------------------------------------------------------------------------------------- C 1,000.00 1,199.40 14.67 1,011.46 13.42 2.69 --------------------------------------------------------------------------------------------------- Y 1,000.00 1,206.00 9.24 1,016.41 8.45 1.69 ---------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. 18 AIM ASIA PACIFIC GROWTH FUND [GO PAPERLESS GRAPHIC] ==================================================================================================================================== GO PAPERLESS WITH EDELIVERY Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all about eeees: o ENVIRONMENTALLY FRIENDLY. Go green by reducing the number of o EFFICIENT. Stop waiting for regular mail. Your documents will trees used to produce paper. be sent via email as soon as they're available. o ECONOMICAL. Help reduce your fund's printing and delivery o EASY. Download, save and print files using your home computer expenses and put more capital back in your fund's returns. with a few clicks of your mouse. This service is provided by Invesco Aim Investment Services, Inc. ==================================================================================================================================== FUND HOLDINGS AND PROXY VOTING INFORMATION The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-06463 and 033-44611. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov. If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim Quarterly Performance Review for the most recent quarter-end. Invesco Aim--SERVICE MARK-- is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund's prospectus for information on the fund's subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, [INVESCO AIM LOGO] Inc., Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco --SERVICE MARK-- Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com on or about the end of the fourth quarter of 2009. invescoaim.com APG-SAR-1 Invesco Aim Distributors, Inc.
[INVESCO AIM LOGO] AIM EUROPEAN GROWTH FUND --SERVICE MARK-- Semiannual Report to Shareholders o April 30, 2009 [MOUNTAIN GRAPHIC] Fund Performance 2 Letters to Shareholders 4 Schedule of Investments 5 Financial Statements 7 Notes to Financial Statements 10 Financial Highlights 16 Fund Expenses 18
For the most current month-end Fund performance and commentary, please visit invescoaim.com. Unless otherwise noted, all data provided by Invesco Aim. THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE FUND PERFORMANCE ======================================================================================= PERFORMANCE SUMMARY FUND VS. INDEXES Cumulative total returns, 10/31/08 to 4/30/09, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. Class A Shares -1.55% Class B Shares -1.88 Class C Shares -1.93 Class R Shares -1.65 Class Y Shares -1.39 Investor Class Shares -1.53 MSCI EAFE Index(Triangle) (Broad Market Index) -2.64 MSCI Europe Growth Index(Triangle) (Style-Specific Index) -6.06 Lipper European Funds Index(Triangle) (Peer Group Index) 0.08 (Triangle) Lipper Inc. The MSCI EAFE --REGISTERED TRADEMARK-- INDEX is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EUROPE GROWTH INDEX is a free float-adjusted market capitalization index that represents the growth segment in developed equity markets in Europe. The LIPPER EUROPEAN FUNDS INDEX is an equally weighted representation of the largest funds in the Lipper European Funds category. These funds concentrate their investments in equity securities whose primary trading markets or operations are concentrated in the European region or a single country within this region. The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group reflects fund expenses; performance of a market index does not. =======================================================================================
2 AIM EUROPEAN GROWTH FUND ========================================== ========================================== AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS OR SALE OF FUND SHARES. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT As of 4/30/09, including maximum As of 3/31/09, the most recent calendar YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL applicable sales charges quarter-end, including maximum applicable SHARES. sales charges CLASS A SHARES THE NET ANNUAL FUND OPERATING EXPENSE Inception (11/3/97) 8.94% CLASS A SHARES RATIO SET FORTH IN THE MOST RECENT FUND 10 Years 6.71 Inception (11/3/97) 8.03% PROSPECTUS AS OF THE DATE OF THIS REPORT 5 Years 2.36 10 Years 5.73 FOR CLASS A, CLASS B, CLASS C, CLASS R, 1 Year -46.67 5 Years -0.03 CLASS Y AND INVESTOR CLASS SHARES WAS 1 Year -50.71 1.50%, 2.25%, 2.25%, 1.75%, 1.25% AND CLASS B SHARES 1.48%, RESPECTIVELY.(1) THE TOTAL ANNUAL Inception (11/3/97) 8.95% CLASS B SHARES FUND OPERATING EXPENSE RATIO SET FORTH IN 10 Years 6.72 Inception (11/3/97) 8.04% THE MOST RECENT FUND PROSPECTUS AS OF THE 5 Years 2.48 10 Years 5.74 DATE OF THIS REPORT FOR CLASS A, CLASS B, 1 Year -46.52 5 Years 0.08 CLASS C, CLASS R, CLASS Y AND INVESTOR 1 Year -50.57 CLASS SHARES WAS 1.51%, 2.26%, 2.26%, CLASS C SHARES 1.76%, 1.26% AND 1.49%, RESPECTIVELY. THE Inception (11/3/97) 8.71% CLASS C SHARES EXPENSE RATIOS PRESENTED ABOVE MAY VARY 10 Years 6.57 Inception (11/3/97) 7.81% FROM THE EXPENSE RATIOS PRESENTED IN OTHER 5 Years 2.78 10 Years 5.58 SECTIONS OF THIS REPORT THAT ARE BASED ON 1 Year -44.49 5 Years 0.38 EXPENSES INCURRED DURING THE PERIOD 1 Year -48.69 COVERED BY THIS REPORT. CLASS R SHARES 10 Years 7.11 CLASS R SHARES CLASS A SHARE PERFORMANCE REFLECTS THE 5 Years 3.30 10 Years 6.13 MAXIMUM 5.50% SALES CHARGE, AND CLASS B 1 Year -43.69 5 Years 0.89 AND CLASS C SHARE PERFORMANCE REFLECTS THE 1 Year -47.94 APPLICABLE CONTINGENT DEFERRED SALES CLASS Y SHARES CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE 10 Years 7.33% CLASS Y SHARES CDSC ON CLASS B SHARES DECLINES FROM 5% 5 Years 3.56 10 Years 6.34% BEGINNING AT THE TIME OF PURCHASE TO 0% AT 1 Year -43.48 5 Years 1.14 THE BEGINNING OF THE SEVENTH YEAR. THE 1 Year -47.75 CDSC ON CLASS C SHARES IS 1% FOR THE FIRST INVESTOR CLASS SHARES YEAR AFTER PURCHASE. CLASS R SHARES DO NOT 10 Years 7.34 INVESTOR CLASS SHARES HAVE A FRONT-END SALES CHARGE; RETURNS 5 Years 3.58 10 Years 6.35 SHOWN ARE AT NET ASSET VALUE AND DO NOT 1 Year -43.54 5 Years 1.17 REFLECT A 0.75% CDSC THAT MAY BE IMPOSED 1 Year -47.79 ON A TOTAL REDEMPTION OF RETIREMENT PLAN ========================================== ========================================== ASSETS WITHIN THE FIRST YEAR. CLASS Y SHARES AND INVESTOR CLASS SHARES DO NOT CLASS R SHARES' INCEPTION DATE IS JUNE 3, INVESTOR CLASS SHARES' INCEPTION DATE HAVE A FRONT-END SALES CHARGE OR A CDSC; 2002. RETURNS SINCE THAT DATE ARE IS SEPTEMBER 30, 2003. RETURNS SINCE THAT THEREFORE, PERFORMANCE IS AT NET ASSET HISTORICAL RETURNS. ALL OTHER RETURNS ARE DATE ARE HISTORICAL RETURNS. ALL OTHER VALUE. BLENDED RETURNS OF HISTORICAL CLASS R RETURNS ARE BLENDED RETURNS OF HISTORICAL SHARE PERFORMANCE AND RESTATED CLASS A INVESTOR CLASS SHARE PERFORMANCE AND THE PERFORMANCE OF THE FUND'S SHARE SHARE PERFORMANCE (FOR PERIODS PRIOR TO RESTATED CLASS A SHARE PERFORMANCE (FOR CLASSES WILL DIFFER PRIMARILY DUE TO THE INCEPTION DATE OF CLASS R SHARES) AT PERIODS PRIOR TO THE INCEPTION DATE OF DIFFERENT SALES CHARGE STRUCTURES AND NET ASSET VALUE, ADJUSTED TO REFLECT THE INVESTOR CLASS SHARES) AT NET ASSET VALUE, CLASS EXPENSES. HIGHER RULE 12B-1 FEES APPLICABLE TO CLASS WHICH RESTATED PERFORMANCE WILL REFLECT R SHARES. CLASS A SHARES' INCEPTION DATE THE RULE 12B-1 FEES APPLICABLE TO CLASS A A REDEMPTION FEE OF 2% WILL BE IMPOSED IS NOVEMBER 3, 1997. SHARES FOR THE PERIOD USING BLENDED ON CERTAIN REDEMPTIONS OR EXCHANGES OUT OF RETURNS. CLASS A SHARES' INCEPTION DATE IS THE FUND WITHIN 31 DAYS OF PURCHASE. CLASS Y SHARES' INCEPTION DATE IS NOVEMBER 3, 1997. EXCEPTIONS TO THE REDEMPTION FEE ARE OCTOBER 3, 2008; RETURNS SINCE THAT DATE LISTED IN THE FUND'S PROSPECTUS. ARE ACTUAL RETURNS. ALL OTHER RETURNS ARE THE PERFORMANCE DATA QUOTED REPRESENT BLENDED RETURNS OF ACTUAL CLASS Y SHARE PAST PERFORMANCE AND CANNOT GUARANTEE (1) Total annual operating expenses less PERFORMANCE AND RESTATED CLASS A SHARE COMPARABLE FUTURE RESULTS; CURRENT contractual advisory fees by the PERFORMANCE (FOR PERIODS PRIOR TO THE PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE advisor in effect through at least INCEPTION DATE OF CLASS Y SHARES) AT NET VISIT INVESCOAIM.COM FOR THE MOST RECENT June 30, 2009. See current prospectus ASSET VALUE. THE RESTATED CLASS A SHARE MONTH-END PERFORMANCE. PERFORMANCE FIGURES for more information. PERFORMANCE REFLECTS THE RULE 12B-1 FEES REFLECT REINVESTED DISTRIBUTIONS, CHANGES APPLICABLE TO CLASS A SHARES AS WELL AS IN NET ASSET VALUE AND THE EFFECT OF THE ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS MAXIMUM SALES CHARGE UNLESS OTHERWISE RECEIVED BY CLASS A SHARES. CLASS A STATED. PERFORMANCE FIGURES DO NOT REFLECT SHARES' INCEPTION DATE IS NOVEMBER 3, DEDUCTION OF TAXES A SHAREHOLDER WOULD PAY 1997. ON FUND DISTRIBUTIONS
3 AIM EUROPEAN GROWTH FUND Dear Fellow Shareholders: Since my last letter, continuing troubles in the global economy and financial markets have negatively affected all investors. However, mutual funds generally are more diversified than other investments; as shareholders we invest not in a single security but in a portfolio of multiple securities. Mutual fund [CROCKETT PHOTO] investors also have the opportunity to diversify further among different types of funds that each deploy a different strategy and focus on different kinds of securities. To develop a diversified and disciplined investing plan that is right for you, I encourage you to consult an investment professional who has the Bruce Crockett knowledge and the tools to help you establish, implement, and monitor the plan. You may also visit the Invesco Aim website at invescoaim.com to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by Corporate Insight. As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring investment performance and streamlining the investment management process. Your Board has already begun the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most cost-effective ways for you to invest your hard-earned money. Please feel free to contact me in writing with your questions or concerns. You can send an email to me at bruce@brucecrockett.com. Sincerely, /s/ BRUCE L. CROCKETT Bruce L. Crockett Independent Chair, AIM Funds Board of Trustees Dear Shareholders: The past year was difficult to say the least for virtually all investors. Market indexes in the U.S. and around the globe declined sharply in 2008, and "market experts" remain divided on the markets' outlook. [TAYLOR PHOTO] Recent history should have reminded all of us that investor sentiment can be fickle. This is why we believe investors should work with their financial advisors to devise a goals-based financial strategy - a long-term plan with a reasonable prospect of achieving predetermined financial goals in line with individual Philip Taylor risk tolerance. Such a strategy cannot guarantee a profit or protect against loss in a declining market, but it may help investors avoid emotion-driven, short-term investment mistakes. None of us can control the markets, but we can control our own reaction to the unsettling volatility we're experiencing. Your financial advisor can work with you to create a specific, concrete investment plan consistent with your financial goals and risk tolerance - a long-term plan guided by logic, not emotion. Invesco Aim has worked on behalf of investors in both bull markets and bear markets. We're focused on doing one thing well: managing your money. If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246. I invite you to visit invescoaim.com, where you can check on your individual account and obtain long-term performance information for your fund. By clicking on the "more" link next to the "Investment Perspective" headline at the top of the page, you can also read my detailed market updates and my interview with Invesco's chief economist - as well as other market and fund commentaries by Invesco's investment professionals. As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind. Thank you for investing with us. All of us at Invesco Aim look forward to serving you. Sincerely, /s/ PHILIP TAYLOR Philip Taylor Senior Managing Director, Invesco Ltd. CEO, Invesco Aim
4 AIM EUROPEAN GROWTH FUND SCHEDULE OF INVESTMENTS(a) April 30, 2009 (Unaudited)
SHARES VALUE ------------------------------------------------------------------------------- FOREIGN COMMON STOCKS & OTHER EQUITY INTERESTS-92.27% BELGIUM-2.58% Anheuser-Busch InBev N.V. 424,744 $ 1,124 ------------------------------------------------------------------------------- Anheuser-Busch InBev N.V.-Ctfs.(b) 513,184 15,660,496 =============================================================================== 15,661,620 =============================================================================== DENMARK-2.22% Novo Nordisk A.S.-Class B 284,078 13,477,499 =============================================================================== FINLAND-0.50% Nokia Oyj 214,222 3,052,619 =============================================================================== FRANCE-4.55% Axa S.A. 146,506 2,440,830 ------------------------------------------------------------------------------- BNP Paribas 137,823 7,255,159 ------------------------------------------------------------------------------- Cap Gemini S.A. 96,975 3,623,997 ------------------------------------------------------------------------------- Total S.A. 286,292 14,314,202 =============================================================================== 27,634,188 =============================================================================== GERMANY-9.52% Bayer AG 261,596 12,975,005 ------------------------------------------------------------------------------- Deutsche Boerse AG 185,000 13,653,073 ------------------------------------------------------------------------------- Merck KGaA 105,509 9,444,210 ------------------------------------------------------------------------------- Puma AG Rudolf Dassler Sport 72,448 15,463,652 ------------------------------------------------------------------------------- Symrise AG 463,239 6,326,369 =============================================================================== 57,862,309 =============================================================================== GREECE-3.25% Intralot S.A. 2,226,503 13,151,848 ------------------------------------------------------------------------------- OPAP S.A.(c) 104,000 3,224,791 ------------------------------------------------------------------------------- OPAP S.A. 109,190 3,385,720 =============================================================================== 19,762,359 =============================================================================== IRELAND-3.06% CRH PLC 188,841 4,910,178 ------------------------------------------------------------------------------- DCC PLC 332,747 6,025,547 ------------------------------------------------------------------------------- Paddy Power PLC 417,196 7,667,185 =============================================================================== 18,602,910 =============================================================================== ITALY-3.66% Eni S.p.A. 577,877 12,521,279 ------------------------------------------------------------------------------- Finmeccanica S.p.A. 690,863 9,736,914 =============================================================================== 22,258,193 =============================================================================== NETHERLANDS-5.05% Aalberts Industries N.V. 1,009,744 7,690,808 ------------------------------------------------------------------------------- Heineken Holding N.V. 176,162 4,161,038 ------------------------------------------------------------------------------- Koninklijke BAM Groep N.V. 839,925 8,251,608 ------------------------------------------------------------------------------- Koninklijke (Royal) KPN N.V. 212,057 2,547,294 ------------------------------------------------------------------------------- TNT N.V. 241,866 4,454,678 ------------------------------------------------------------------------------- USG People N.V. 382,456 3,593,253 =============================================================================== 30,698,679 =============================================================================== NORWAY-1.84% Petroleum Geo-Services A.S.A.(b) 590,367 2,854,915 ------------------------------------------------------------------------------- TGS Nopec Geophysical Co. A.S.A.(b) 1,128,076 8,334,836 =============================================================================== 11,189,751 =============================================================================== RUSSIA-0.67% Vimpel-Communications-ADR 432,030 4,069,722 =============================================================================== SPAIN-1.59% Telefonica S.A. 510,035 9,682,572 =============================================================================== SWEDEN-3.70% Intrum Justitia A.B. 987,725 8,594,966 ------------------------------------------------------------------------------- Oriflame Cosmetics S.A.-SDR 320,013 13,849,615 =============================================================================== 22,444,581 =============================================================================== SWITZERLAND-15.16% Aryzta AG(b) 449,957 13,136,629 ------------------------------------------------------------------------------- Bucher Industries AG 34,838 2,833,326 ------------------------------------------------------------------------------- Dufry Group 142,391 3,804,578 ------------------------------------------------------------------------------- Galenica AG 18,497 5,313,628 ------------------------------------------------------------------------------- Nestle S.A. 622,905 20,256,171 ------------------------------------------------------------------------------- Roche Holding AG 155,163 19,641,746 ------------------------------------------------------------------------------- Sonova Holding AG 205,843 13,479,426 ------------------------------------------------------------------------------- Syngenta AG 64,053 13,664,115 =============================================================================== 92,129,619 =============================================================================== TURKEY-1.88% Haci Omer Sabanci Holding A.S. 1,879,210 4,771,540 ------------------------------------------------------------------------------- Tupras-Turkiye Petrol Rafinerileri A.S. 669,546 6,647,413 =============================================================================== 11,418,953 =============================================================================== UNITED KINGDOM-33.04% Amlin PLC 2,415,273 12,842,073 ------------------------------------------------------------------------------- Aviva PLC 449,405 2,049,982 ------------------------------------------------------------------------------- Balfour Beatty PLC 1,766,700 8,732,699 ------------------------------------------------------------------------------- BG Group PLC 206,233 3,314,503 ------------------------------------------------------------------------------- British American Tobacco PLC 133,065 3,224,866 ------------------------------------------------------------------------------- Bunzl PLC 1,104,809 8,936,254 ------------------------------------------------------------------------------- Capita Group PLC 586,570 5,904,026 ------------------------------------------------------------------------------- Compass Group PLC 1,624,742 7,762,124 ------------------------------------------------------------------------------- Homeserve PLC 678,386 12,276,854 -------------------------------------------------------------------------------
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 5 AIM EUROPEAN GROWTH FUND
SHARES VALUE ------------------------------------------------------------------------------- UNITED KINGDOM-(CONTINUED) IG Group Holdings PLC 2,002,117 $ 6,481,239 ------------------------------------------------------------------------------- Imperial Tobacco Group PLC 828,798 18,940,482 ------------------------------------------------------------------------------- Informa PLC 1,851,142 8,064,718 ------------------------------------------------------------------------------- International Power PLC 2,511,089 9,089,388 ------------------------------------------------------------------------------- Mitie Group PLC 3,720,824 11,465,124 ------------------------------------------------------------------------------- Reckitt Benckiser Group PLC 367,839 14,479,449 ------------------------------------------------------------------------------- Reed Elsevier PLC 888,193 6,590,928 ------------------------------------------------------------------------------- Shire PLC 1,105,300 13,799,484 ------------------------------------------------------------------------------- Tesco PLC 2,088,642 10,364,530 ------------------------------------------------------------------------------- Ultra Electronics Holdings PLC 547,110 9,569,051 ------------------------------------------------------------------------------- United Business Media Ltd. 671,954 4,557,039 ------------------------------------------------------------------------------- Vodafone Group PLC 6,131,597 11,257,361 ------------------------------------------------------------------------------- VT Group PLC 625,676 4,263,735 ------------------------------------------------------------------------------- WPP PLC 992,459 6,784,765 =============================================================================== 200,750,674 =============================================================================== Total Foreign Common Stocks & Other Equity Interests (Cost $627,062,093) 560,696,248 =============================================================================== FOREIGN PREFERRED STOCKS-0.88% GERMANY-0.88% Porsche Automobile Holding S.E.-Pfd. (Cost $5,512,103) 74,757 5,353,151 =============================================================================== MONEY MARKET FUNDS-4.65% Liquid Assets Portfolio-Institutional Class(d) 14,114,591 14,114,591 ------------------------------------------------------------------------------- Premier Portfolio-Institutional Class(d) 14,114,591 14,114,591 =============================================================================== Total Money Market Funds (Cost $28,229,182) 28,229,182 =============================================================================== TOTAL INVESTMENTS-97.80% (Cost $660,803,378) 594,278,581 =============================================================================== OTHER ASSETS LESS LIABILITIES-2.20% 13,367,959 =============================================================================== NET ASSETS-100.00% $607,646,540 _______________________________________________________________________________ ===============================================================================
Investment Abbreviations: ADR - American Depositary Receipt Ctfs. - Certificates Pfd. - Preferred SDR - Swedish Depositary Receipt
Notes to Schedule of Investments: (a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor's. (b) Non-income producing security. (c) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at April 30, 2009 represented 0.53% of the Fund's Net Assets. (d) The money market fund and the Fund are affiliated by having the same investment advisor. PORTFOLIO COMPOSITION By sector, based on Net Assets as of April 30, 2009 ------------------------------------------------------------------------- Consumer Staples 18.8% ------------------------------------------------------------------------- Industrials 18.5 ------------------------------------------------------------------------- Health Care 14.5 ------------------------------------------------------------------------- Consumer Discretionary 14.1 ------------------------------------------------------------------------- Financials 8.1 ------------------------------------------------------------------------- Energy 7.9 ------------------------------------------------------------------------- Telecommunication Services 4.5 ------------------------------------------------------------------------- Materials 4.1 ------------------------------------------------------------------------- Utilities 1.5 ------------------------------------------------------------------------- Information Technology 1.1 ------------------------------------------------------------------------- Money Market Funds Plus Other Assets Less Liabilities 6.9 _________________________________________________________________________ =========================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 6 AIM EUROPEAN GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) ASSETS: Investments, at value (Cost $632,574,196) $566,049,399 -------------------------------------------------------------------------------- Investments in affiliated money market funds, at value and cost 28,229,182 ================================================================================ Total investments (Cost $660,803,378) 594,278,581 ================================================================================ Foreign currencies, at value (Cost $5,576,524) 5,613,846 -------------------------------------------------------------------------------- Receivables for: Investments sold 6,111,724 -------------------------------------------------------------------------------- Fund shares sold 280,436 -------------------------------------------------------------------------------- Dividends 3,973,277 -------------------------------------------------------------------------------- Investment for trustee deferred compensation and retirement plans 47,813 -------------------------------------------------------------------------------- Other assets 43,750 ================================================================================ Total assets 610,349,427 ________________________________________________________________________________ ================================================================================ LIABILITIES: Payables for: Investments purchased 818,689 -------------------------------------------------------------------------------- Fund shares reacquired 931,165 -------------------------------------------------------------------------------- Accrued fees to affiliates 571,073 -------------------------------------------------------------------------------- Accrued other operating expenses 241,737 -------------------------------------------------------------------------------- Trustee deferred compensation and retirement plans 140,223 ================================================================================ Total liabilities 2,702,887 ================================================================================ Net assets applicable to shares outstanding $607,646,540 ________________________________________________________________________________ ================================================================================ NET ASSETS CONSIST OF: Shares of beneficial interest $763,869,212 -------------------------------------------------------------------------------- Undistributed net investment income 4,630,277 -------------------------------------------------------------------------------- Undistributed net realized gain (loss) (94,398,462) -------------------------------------------------------------------------------- Unrealized appreciation (depreciation) (66,454,487) ================================================================================ $607,646,540 ________________________________________________________________________________ ================================================================================ NET ASSETS: Class A $358,192,913 ________________________________________________________________________________ ================================================================================ Class B $ 35,096,381 ________________________________________________________________________________ ================================================================================ Class C $ 49,984,806 ________________________________________________________________________________ ================================================================================ Class R $ 14,610,832 ________________________________________________________________________________ ================================================================================ Class Y $ 7,519,519 ________________________________________________________________________________ ================================================================================ Investor Class $142,242,089 ________________________________________________________________________________ ================================================================================ SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES AUTHORIZED: Class A 17,668,109 ________________________________________________________________________________ ================================================================================ Class B 1,834,943 ________________________________________________________________________________ ================================================================================ Class C 2,611,116 ________________________________________________________________________________ ================================================================================ Class R 722,718 ________________________________________________________________________________ ================================================================================ Class Y 370,392 ________________________________________________________________________________ ================================================================================ Investor Class 7,031,109 ________________________________________________________________________________ ================================================================================ Class A: Net asset value per share $ 20.27 -------------------------------------------------------------------------------- Maximum offering price per share (Net asset value of $20.27 divided by 94.50%) $ 21.45 ________________________________________________________________________________ ================================================================================ Class B: Net asset value and offering price per share $ 19.13 ________________________________________________________________________________ ================================================================================ Class C: Net asset value and offering price per share $ 19.14 ________________________________________________________________________________ ================================================================================ Class R: Net asset value and offering price per share $ 20.22 ________________________________________________________________________________ ================================================================================ Class Y: Net asset value and offering price per share $ 20.30 ________________________________________________________________________________ ================================================================================ Investor Class: Net asset value and offering price per share $ 20.23 ________________________________________________________________________________ ================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 7 AIM EUROPEAN GROWTH FUND STATEMENT OF OPERATIONS For the six months ended April 30, 2009 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding taxes of $958,218) $ 10,256,655 ------------------------------------------------------------------------------------------------ Dividends from affiliated money market funds 143,826 ================================================================================================ Total investment income 10,400,481 ================================================================================================ EXPENSES: Advisory fees 2,762,623 ------------------------------------------------------------------------------------------------ Administrative services fees 94,175 ------------------------------------------------------------------------------------------------ Custodian fees 107,648 ------------------------------------------------------------------------------------------------ Distribution fees: Class A 447,242 ------------------------------------------------------------------------------------------------ Class B 192,341 ------------------------------------------------------------------------------------------------ Class C 260,258 ------------------------------------------------------------------------------------------------ Class R 33,100 ------------------------------------------------------------------------------------------------ Investor Class 160,189 ------------------------------------------------------------------------------------------------ Transfer agent fees 1,312,504 ------------------------------------------------------------------------------------------------ Trustees' and officers' fees and benefits 21,577 ------------------------------------------------------------------------------------------------ Other 242,144 ================================================================================================ Total expenses 5,633,801 ================================================================================================ Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (30,651) ================================================================================================ Net expenses 5,603,150 ================================================================================================ Net investment income 4,797,331 ================================================================================================ REALIZED AND UNREALIZED GAIN (LOSS) FROM: Net realized gain (loss) from: Investment securities (77,496,359) ------------------------------------------------------------------------------------------------ Foreign currencies (1,282,365) ================================================================================================ (78,778,724) ================================================================================================ Change in net unrealized appreciation of: Investment securities 54,655,085 ------------------------------------------------------------------------------------------------ Foreign currencies 543,996 ================================================================================================ 55,199,081 ================================================================================================ Net realized and unrealized gain (loss) (23,579,643) ================================================================================================ Net increase (decrease) in net assets resulting from operations $(18,782,312) ________________________________________________________________________________________________ ================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 8 AIM EUROPEAN GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2009 and the year ended October 31, 2008 (Unaudited)
APRIL 30, OCTOBER 31, 2009 2008 ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 4,797,331 $ 21,517,023 ----------------------------------------------------------------------------------------------------------- Net realized gain (loss) (78,778,724) 57,895,293 ----------------------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) 55,199,081 (884,129,681) =========================================================================================================== Net increase (decrease) in net assets resulting from operations (18,782,312) (804,717,365) =========================================================================================================== Distributions to shareholders from net investment income: Class A (14,054,590) (12,863,403) ----------------------------------------------------------------------------------------------------------- Class B (867,366) (1,030,323) ----------------------------------------------------------------------------------------------------------- Class C (1,170,988) (1,080,619) ----------------------------------------------------------------------------------------------------------- Class R (424,982) (257,858) ----------------------------------------------------------------------------------------------------------- Class Y (179,135) -- ----------------------------------------------------------------------------------------------------------- Investor Class (5,350,869) (4,389,824) =========================================================================================================== Total distributions from net investment income (22,047,930) (19,622,027) =========================================================================================================== Distributions to shareholders from net realized gains: Class A (24,532,230) (75,070,177) ----------------------------------------------------------------------------------------------------------- Class B (2,909,127) (12,762,593) ----------------------------------------------------------------------------------------------------------- Class C (3,927,463) (13,385,625) ----------------------------------------------------------------------------------------------------------- Class R (879,365) (1,824,238) ----------------------------------------------------------------------------------------------------------- Class Y (310,669) -- ----------------------------------------------------------------------------------------------------------- Investor Class (9,173,489) (25,620,101) =========================================================================================================== Total distributions from net realized gains (41,732,343) (128,662,734) =========================================================================================================== Share transactions-net: Class A (18,082,835) (98,203,135) ----------------------------------------------------------------------------------------------------------- Class B (7,337,593) (51,206,236) ----------------------------------------------------------------------------------------------------------- Class C (7,992,518) (24,754,581) ----------------------------------------------------------------------------------------------------------- Class R 2,089,576 4,876,993 ----------------------------------------------------------------------------------------------------------- Class Y 2,533,531 6,361,082 ----------------------------------------------------------------------------------------------------------- Investor Class 4,704,908 (26,960,849) =========================================================================================================== Net increase (decrease) in net assets resulting from share transactions (24,084,931) (189,886,726) =========================================================================================================== Net increase (decrease) in net assets (106,647,516) (1,142,888,852) =========================================================================================================== NET ASSETS: Beginning of period 714,294,056 1,857,182,908 =========================================================================================================== End of period (includes undistributed net investment income of $4,630,277 and $21,880,876, respectively) $ 607,646,540 $ 714,294,056 ___________________________________________________________________________________________________________ ===========================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 9 AIM EUROPEAN GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 2009 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM European Growth Fund (the "Fund") is a series portfolio of AIM International Mutual Funds (the "Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end series management investment company consisting of six separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The Fund's investment objective is long-term growth of capital. The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Investor Class. Investor Class shares of the Fund are offered only to certain grandfathered investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver shares may be subject to contingent deferred sales charges ("CDSC"). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y and Investor Class shares are sold at net asset value. Under certain circumstances, Class R shares are subject to a CDSC. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be valued base upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. 10 AIM EUROPEAN GROWTH FUND B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment advisor may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. D. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. G. ACCOUNTING ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. I. REDEMPTION FEES -- The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. J. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. K. 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 11 AIM EUROPEAN GROWTH FUND between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES The Trust has entered into a master investment advisory agreement with Invesco Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Advisor based on the annual rate of the Fund's average daily net assets as follows:
AVERAGE NET ASSETS RATE ------------------------------------------------------------------- First $250 million 0.935% ------------------------------------------------------------------- Next $250 million 0.91% ------------------------------------------------------------------- Next $500 million 0.885% ------------------------------------------------------------------- Next $1.5 billion 0.86% ------------------------------------------------------------------- Next $2.5 billion 0.835% ------------------------------------------------------------------- Next $2.5 billion 0.81% ------------------------------------------------------------------- Next $2.5 billion 0.785% ------------------------------------------------------------------- Over $10 billion 0.76% ___________________________________________________________________ ===================================================================
Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Advisor and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-Advisor(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Advisor(s). The Advisor has contractually agreed, through at least June 30, 2009, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Advisor receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the six months ended April 30, 2009, the Advisor waived advisory fees of $14,492. At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the AIM Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended April 30, 2009, Invesco reimbursed expenses of the Fund in the amount of $1,271. The Trust has entered into a master administrative services agreement with Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees. The Trust has entered into a transfer agency and service agreement with Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has agreed to pay IAIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the course of providing such services. IAIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IAIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust's Board of Trustees. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees. The Trust has entered into master distribution agreements with Invesco Aim Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y and Investor Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A, Class B, Class C, Class R and Investor Class shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays IADI compensation at the annual rate of 0.25% of the Fund's average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IADI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended April 30, 2009, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees. Front-end sales commissions and CDSC (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2009, IADI advised the Fund that IADI retained $17,950 in front-end sales commissions from the sale of Class A shares and $1,434, $44,298, $8,365 and $0 from Class A, Class B, Class C and Class R shares, respectively, for CDSC imposed on redemptions by shareholders. Certain officers and trustees of the Trust are officers and directors of Invesco Aim, IAIS and/or IADI. 12 AIM EUROPEAN GROWTH FUND NOTE 3--SUPPLEMENTAL INFORMATION The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level: Level 1 -- Prices are determined using quoted prices in an active market for identical assets. Level 2 -- Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level 3 -- Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. The following is a summary of the tiered valuation input levels, as of the end of the reporting period, April 30, 2009. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
INVESTMENTS IN INPUT LEVEL SECURITIES -------------------------------------- Level 1 $ 98,223,332 -------------------------------------- Level 2 496,055,249 -------------------------------------- Level 3 -- ====================================== $594,278,581 ______________________________________ ======================================
NOTE 4--EXPENSE OFFSET ARRANGEMENTS The expense offset arrangements are comprised of (i) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (ii) custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended April 30, 2009, the Fund received credits from these arrangements, which resulted in the reduction of the Fund's total expenses of $14,888. NOTE 5--TRUSTEES' AND OFFICERS' FEES AND BENEFITS "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and "Trustees' and Officers' Fees and Benefits" also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various AIM Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund. During the six months ended April 30, 2009, the Fund paid legal fees of $2,958 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. NOTE 6--CASH BALANCES The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco Aim, not to exceed the contractually agreed upon rate. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end. Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. 13 AIM EUROPEAN GROWTH FUND The Fund had a capital loss carryforward as of October 31, 2008 which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD* ----------------------------------------------------------------------------------------------- October 31, 2009 $15,589,322 _______________________________________________________________________________________________ ===============================================================================================
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2009 was $33,472,819 and $115,884,896, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS ------------------------------------------------------------------------------------------------ Aggregate unrealized appreciation of investment securities $ 84,013,736 ------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (150,538,533) ================================================================================================ Net unrealized appreciation (depreciation) of investment securities $ (66,524,797) ________________________________________________________________________________________________ ================================================================================================ Cost of investments is the same for tax and financial statement purposes.
14 AIM EUROPEAN GROWTH FUND NOTE 9--SHARE INFORMATION
SUMMARY OF SHARE ACTIVITY ------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED APRIL 30, 2009(a) OCTOBER 31, 2008 --------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------- Sold: Class A 655,328 $ 12,924,307 3,185,613 $ 125,356,023 ------------------------------------------------------------------------------------------------------------------------- Class B 87,218 1,609,280 349,883 12,996,414 ------------------------------------------------------------------------------------------------------------------------- Class C 121,933 2,297,026 572,829 21,478,824 ------------------------------------------------------------------------------------------------------------------------- Class R 164,524 3,215,793 331,350 12,586,181 ------------------------------------------------------------------------------------------------------------------------- Class Y(b) 139,591 2,447,902 227,374 6,384,402 ------------------------------------------------------------------------------------------------------------------------- Investor Class 158,166 3,072,991 371,888 14,365,709 ========================================================================================================================= Issued as reinvestment of dividends: Class A 1,836,997 35,894,921 1,929,620 80,986,148 ------------------------------------------------------------------------------------------------------------------------- Class B 193,377 3,575,537 326,385 12,892,190 ------------------------------------------------------------------------------------------------------------------------- Class C 255,673 4,732,512 334,603 13,223,510 ------------------------------------------------------------------------------------------------------------------------- Class R 66,693 1,301,182 49,697 2,075,369 ------------------------------------------------------------------------------------------------------------------------- Class Y 24,655 482,008 -- -- ------------------------------------------------------------------------------------------------------------------------- Investor Class 715,676 13,955,686 690,306 28,923,829 ========================================================================================================================= Automatic conversion of Class B shares to Class A shares: Class A 275,427 5,274,049 1,063,394 39,797,527 ------------------------------------------------------------------------------------------------------------------------- Class B (292,018) (5,274,049) (1,133,401) (39,797,527) ========================================================================================================================= Reacquired:(c) Class A(b) (3,759,341) (72,176,112) (9,785,932) (344,342,833) ------------------------------------------------------------------------------------------------------------------------- Class B (400,556) (7,248,361) (1,121,151) (37,297,313) ------------------------------------------------------------------------------------------------------------------------- Class C (817,386) (15,022,056) (1,790,312) (59,456,915) ------------------------------------------------------------------------------------------------------------------------- Class R (126,630) (2,427,399) (276,798) (9,784,557) ------------------------------------------------------------------------------------------------------------------------- Class Y (20,245) (396,379) (983) (23,320) ------------------------------------------------------------------------------------------------------------------------- Investor Class(b) (641,067) (12,323,769) (1,932,319) (70,250,387) ========================================================================================================================= Net increase (decrease) in share activity (1,361,985) $(24,084,931) (6,607,954) $(189,886,726) _________________________________________________________________________________________________________________________ =========================================================================================================================
(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 23% of the outstanding shares of the Fund. IADI has an agreement with these entities to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco Aim and/or Invesco Aim affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. (b) Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A and Investor Class into Class Y shares of the Fund:
CLASS SHARES AMOUNT ---------------------------------------------------------------------------------------------------- Class Y 226,468 $ 6,361,494 ---------------------------------------------------------------------------------------------------- Class A (216,596) (6,084,195) ---------------------------------------------------------------------------------------------------- Investor Class (9,886) (277,299) ____________________________________________________________________________________________________ ====================================================================================================
(c) Net of redemption fees of $6,311 and $52,812 allocated among the classes based on relative net assets of each class for the six months and year ended April 30, 2009 and October 31, 2008, respectively. 15 AIM EUROPEAN GROWTH FUND NOTE 10--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
NET GAINS (LOSSES) NET ASSET NET ON SECURITIES DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT (BOTH TOTAL FROM FROM NET FROM NET NET ASSET BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL VALUE, END OF PERIOD (LOSS)(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD(b) ----------------------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $22.86 $ 0.17 $ (0.59) $ (0.42) $(0.79) $(1.38) $(2.17) $20.27 Year ended 10/31/08 49.22 0.63 (23.02) (22.39) (0.58) (3.39) (3.97) 22.86 Year ended 10/31/07 39.83 0.56 11.52 12.08 (0.31) (2.38) (2.69) 49.22 Year ended 10/31/06 31.11 0.31 10.70 11.01 (0.21) (2.08) (2.29) 39.83 Year ended 10/31/05 26.23 0.21 4.70 4.91 (0.03) -- (0.03) 31.11 Year ended 10/31/04 20.02 0.05 6.17 6.22 (0.01) -- (0.01) 26.23 ----------------------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 21.37 0.09 (0.54) (0.45) (0.41) (1.38) (1.79) 19.13 Year ended 10/31/08 46.29 0.33 (21.59) (21.26) (0.27) (3.39) (3.66) 21.37 Year ended 10/31/07 37.63 0.22 10.87 11.09 (0.05) (2.38) (2.43) 46.29 Year ended 10/31/06 29.53 0.04 10.15 10.19 (0.01) (2.08) (2.09) 37.63 Year ended 10/31/05 25.03 0.01 4.49 4.50 -- -- -- 29.53 Year ended 10/31/04 19.23 (0.10) 5.90 5.80 -- -- -- 25.03 ----------------------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 21.39 0.09 (0.55) (0.46) (0.41) (1.38) (1.79) 19.14 Year ended 10/31/08 46.31 0.33 (21.59) (21.26) (0.27) (3.39) (3.66) 21.39 Year ended 10/31/07 37.65 0.22 10.87 11.09 (0.05) (2.38) (2.43) 46.31 Year ended 10/31/06 29.54 0.04 10.16 10.20 (0.01) (2.08) (2.09) 37.65 Year ended 10/31/05 25.05 0.01 4.48 4.49 -- -- -- 29.54 Year ended 10/31/04 19.24 (0.10) 5.91 5.81 -- -- -- 25.05 ----------------------------------------------------------------------------------------------------------------------------------- CLASS R Six months ended 04/30/09 22.70 0.14 (0.58) (0.44) (0.66) (1.38) (2.04) 20.22 Year ended 10/31/08 48.90 0.53 (22.86) (22.33) (0.48) (3.39) (3.87) 22.70 Year ended 10/31/07 39.60 0.45 11.45 11.90 (0.22) (2.38) (2.60) 48.90 Year ended 10/31/06 30.96 0.22 10.66 10.88 (0.16) (2.08) (2.24) 39.60 Year ended 10/31/05 26.13 0.16 4.68 4.84 (0.01) -- (0.01) 30.96 Year ended 10/31/04 19.98 0.01 6.14 6.15 -- -- -- 26.13 ----------------------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 22.87 0.19 (0.59) (0.40) (0.79) (1.38) (2.17) 20.30 Year ended 10/31/08(f) 28.09 0.03 (5.25) (5.22) -- -- -- 22.87 ----------------------------------------------------------------------------------------------------------------------------------- INVESTOR CLASS Six months ended 04/30/09 22.83 0.17 (0.59) (0.42) (0.80) (1.38) (2.18) 20.23 Year ended 10/31/08 49.14 0.64 (22.98) (22.34) (0.58) (3.39) (3.97) 22.83 Year ended 10/31/07 39.78 0.56 11.50 12.06 (0.32) (2.38) (2.70) 49.14 Year ended 10/31/06 31.08 0.32 10.69 11.01 (0.23) (2.08) (2.31) 39.78 Year ended 10/31/05 26.22 0.24 4.69 4.93 (0.07) -- (0.07) 31.08 Year ended 10/31/04 20.01 0.09 6.15 6.24 (0.03) -- (0.03) 26.22 ___________________________________________________________________________________________________________________________________ =================================================================================================================================== RATIO OF RATIO OF EXPENSES EXPENSES TO AVERAGE TO AVERAGE NET RATIO OF NET NET ASSETS ASSETS WITHOUT INVESTMENT NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME (LOSS) TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO RETURN(c) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(d) ------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 (1.51)% $ 358,193 1.74%(e) 1.75%(e) 1.71%(e) 6% Year ended 10/31/08 (49.17) 426,609 1.49 1.50 1.66 18 Year ended 10/31/07 31.84 1,095,988 1.47 1.49 1.28 20 Year ended 10/31/06 37.44 768,769 1.58 1.60 0.87 28 Year ended 10/31/05 18.74 496,328 1.70 1.72 0.71 48 Year ended 10/31/04 31.06 407,566 1.87 1.87 0.19 60 ------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 (1.83) 35,096 2.49(e) 2.50(e) 0.96(e) 6 Year ended 10/31/08 (49.56) 48,021 2.24 2.25 0.91 18 Year ended 10/31/07 30.87 177,053 2.22 2.24 0.53 20 Year ended 10/31/06 36.39 161,405 2.33 2.35 0.12 28 Year ended 10/31/05 17.98 144,211 2.39 2.41 0.02 48 Year ended 10/31/04 30.16 130,863 2.52 2.52 (0.46) 60 ------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 (1.88) 49,985 2.49(e) 2.50(e) 0.96(e) 6 Year ended 10/31/08 (49.53) 65,252 2.24 2.25 0.91 18 Year ended 10/31/07 30.84 182,178 2.22 2.24 0.53 20 Year ended 10/31/06 36.41 103,675 2.33 2.35 0.12 28 Year ended 10/31/05 17.92 63,806 2.39 2.41 0.02 48 Year ended 10/31/04 30.20 45,222 2.52 2.52 (0.46) 60 ------------------------------------------------------------------------------------------------------------------- CLASS R Six months ended 04/30/09 (1.61) 14,611 1.99(e) 2.00(e) 1.46(e) 6 Year ended 10/31/08 (49.28) 14,030 1.74 1.75 1.41 18 Year ended 10/31/07 31.53 25,129 1.72 1.74 1.03 20 Year ended 10/31/06 37.11 11,081 1.83 1.85 0.62 28 Year ended 10/31/05 18.52 4,767 1.89 1.91 0.52 48 Year ended 10/31/04 30.78 2,131 2.02 2.02 0.04 60 ------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 (1.39) 7,520 1.49(e) 1.50(e) 1.96(e) 6 Year ended 10/31/08(f) (18.58) 5,177 1.34(g) 1.35(g) 1.81(g) 18 ------------------------------------------------------------------------------------------------------------------- INVESTOR CLASS Six months ended 04/30/09 (1.49) 142,242 1.72(e) 1.73(e) 1.73(e) 6 Year ended 10/31/08 (49.14) 155,205 1.47 1.48 1.69 18 Year ended 10/31/07 31.80 376,835 1.47 1.49 1.28 20 Year ended 10/31/06 37.50 266,510 1.55 1.57 0.91 28 Year ended 10/31/05 18.82 202,323 1.63 1.65 0.78 48 Year ended 10/31/04 31.20 184,832 1.71 1.74 0.35 60 ___________________________________________________________________________________________________________________ ===================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. (c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. (d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. (e) Ratios are annualized and based on average daily net assets (000's omitted) of $360,759, $38,787, $52,483, $13,350, $5,441 and $137,490 for Class A, Class B, Class C, Class R, Class Y and Investor Class shares, respectively. (f) Commencement date of October 3, 2008. (g) Annualized. 16 AIM EUROPEAN GROWTH FUND NOTE 11--LEGAL PROCEEDINGS Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note. SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING On May 23, 2008, the Securities and Exchange Commission ("SEC") publicly posted its final approval of the Distribution Plans ("Distribution Plans") for the distribution of monies placed into two separate Fair Funds created pursuant to a settlement reached on October 8, 2004 between Invesco Funds Group, Inc. ("IFG"), Invesco Aim Advisors, Inc. ("Invesco Aim") and Invesco Aim Distributors, Inc. ("IADI") and the SEC (the "Order"). One of the Fair Funds consists of $325 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds formerly advised by IFG who may have been harmed by market timing and related activity. The second Fair Fund consists of $50 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds advised by Invesco Aim who may have been harmed by market timing and related activity. The Distribution Plans provide for the distribution to all eligible investors to compensate such investors for injury they may have suffered as a result of market timing in the affected funds. The Distribution Plans include a provision for any residual amounts in the Fair Funds to be distributed in the future to the affected funds. At this time, management of Invesco Aim and the Fund are unable to estimate the residual distribution to the Fund, if any. At the request of the trustees of the AIM Funds, Invesco Ltd. ("Invesco"), the parent company of IFG and Invesco Aim, has agreed to reimburse expenses incurred by the AIM Funds related to market timing matters. PENDING LITIGATION AND REGULATORY INQUIRIES Civil lawsuits, including purported class action and shareholder derivative suits, have been filed against certain of the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals alleging that the defendants permitted improper market timing and related activity in the AIM Funds. These lawsuits allege as theories of recovery, depending on the lawsuit, violations of various provisions of the Federal and state securities laws and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), negligence, breach of fiduciary duty and/or breach of contract. These lawsuits seek remedies that include, depending on the lawsuit, damages, restitution, injunctive relief, imposition of a constructive trust, removal of certain directors and/or employees, various corrective measures under ERISA, rescission of certain AIM Funds' advisory agreements and/or distribution plans and recovery of all fees paid. All lawsuits based on allegations of market timing, late trading and related issues were transferred to the United States District Court for the District of Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in these lawsuits consolidated their claims for pre-trial purposes into three amended complaints against various Invesco Aim- and IFG-related parties: (i) a Consolidated Amended Class Action Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly brought on behalf of participants in the Invesco 401(k) plan. Based on orders issued by the MDL Court, all claims asserted against the AIM Funds that have been transferred to the MDL Court have been dismissed, although certain Funds remain nominal defendants in the Consolidated Amended Fund Derivative Complaint. On January 5, 2008, the parties reached an agreement in principle to settle both the Consolidated Amended Class Action Complaint and Consolidated Amended Fund Derivative Complaint, subject to the MDL Court approval. Individual class members have the right to object. On December 15, 2008, the parties reached an agreement in principle to settle the Amended Class Action Complaint for Violations of ERISA, subject to the MDL Court approval. Individual class members have the right to object. No payments are required under the settlement; however, the parties agreed that certain limited changes to benefit plans and participants' accounts would be made. IFG, Invesco Aim, IADI and/or related entities and individuals have received inquiries from numerous regulators in the form of subpoenas or other oral or written requests for information and/or documents related to one or more of the following issues, among others, some of which concern one or more AIM Funds: market timing activity, late trading, fair value pricing, excessive or improper advisory and/or distribution fees, mutual fund sales practices, including revenue sharing and directed-brokerage arrangements, investments in securities of other registered investment companies, contractual plans, issues related to Section 529 college savings plans and procedures for locating lost security holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing full cooperation with respect to these inquiries. Regulatory actions and/or additional civil lawsuits related to these or other issues may be filed against the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in the future. 17 AIM EUROPEAN GROWTH FUND CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
--------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO --------------------------------------------------------------------------------------------------- A $1,000.00 984.50 $ 8.56 $1,016.17 $ 8.70 1.74% --------------------------------------------------------------------------------------------------- B 1,000.00 981.20 12.23 1,012.45 12.42 2.49 --------------------------------------------------------------------------------------------------- C 1,000.00 980.70 12.23 1,012.45 12.42 2.49 --------------------------------------------------------------------------------------------------- R 1,000.00 983.50 9.79 1,014.93 9.94 1.99 --------------------------------------------------------------------------------------------------- Y 1,000.00 986.10 7.34 1,017.41 7.45 1.49 --------------------------------------------------------------------------------------------------- Investor 1,000.00 984.70 8.46 1,016.27 8.60 1.72 ---------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. 18 AIM EUROPEAN GROWTH FUND [GO PAPERLESS GRAPHIC] ==================================================================================================================================== GO PAPERLESS WITH EDELIVERY Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all about eeees: o ENVIRONMENTALLY FRIENDLY. Go green by reducing the number of o EFFICIENT. Stop waiting for regular mail. Your documents will trees used to produce paper. be sent via email as soon as they're available. o ECONOMICAL. Help reduce your fund's printing and delivery o EASY. Download, save and print files using your home computer expenses and put more capital back in your fund's returns. with a few clicks of your mouse. This service is provided by Invesco Aim Investment Services, Inc. ==================================================================================================================================== FUND HOLDINGS AND PROXY VOTING INFORMATION The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-06463 and 033-44611. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov. If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim Quarterly Performance Review for the most recent quarter-end. Invesco Aim --SERVICE MARK-- is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund's prospectus for information on the fund's subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, [INVESCO AIM LOGO] Inc., Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco --SERVICE MARK-- Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com on or about the end of the fourth quarter of 2009. invescoaim.com EGR-SAR-1 Invesco Aim Distributors, Inc.
[INVESCO AIM LOGO] AIM GLOBAL GROWTH FUND --SERVICE MARK-- Semiannual Report to Shareholders o April 30, 2009 [MOUNTAIN GRAPHIC] Fund Performance 2 Letters to Shareholders 4 Schedule of Investments 5 Financial Statements 7 Notes to Financial Statements 10 Financial Highlights 16 Fund Expenses 18
For the most current month-end Fund performance and commentary, please visit invescoaim.com. Unless otherwise noted, all data provided by Invesco Aim. THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE FUND PERFORMANCE ======================================================================================= PERFORMANCE SUMMARY FUND VS. INDEXES Cumulative total returns, 10/31/08 to 4/30/09, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. Class A Shares -3.67% Class B Shares -4.00 Class C Shares -4.06 Class Y Shares -3.53 MSCI World Index(Triangle) (Broad Market Index) -5.44 MSCI World Growth Index(Triangle) (Style-Specific Index) -4.13 Lipper Global Large-Cap Growth Funds Index(Triangle) (Peer Group Index) -3.17 (Triangle) Lipper Inc. The MSCI WORLD INDEX--SERVICE MARK-- is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. The MSCI WORLD GROWTH INDEX is a free float-adjusted market capitalization index that represents the growth segment in global developed market equity performance. The LIPPER GLOBAL LARGE-CAP GROWTH FUNDS INDEX is an equally weighted representation of the largest funds in the Lipper Global Large-Cap Growth Funds category. These funds typically have an above-average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P/Citigroup World BMI. The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group reflects fund expenses; performance of a market index does not. =======================================================================================
2 AIM GLOBAL GROWTH FUND ========================================== ========================================== AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS As of 4/30/09, including maximum As of 3/31/09, the most recent calendar applicable sales charges quarter-end, including maximum applicable sales charges CLASS A SHARES Inception (9/15/94) 3.82% CLASS A SHARES 10 Years -2.44 Inception (9/15/94) 3.44% 5 Years -0.93 10 Years -2.87 1 Year -40.27 5 Years -2.34 1 Year -41.11 CLASS B SHARES Inception (9/15/94) 3.91% CLASS B SHARES 10 Years -2.33 Inception (9/15/94) 3.53% 5 Years -0.90 10 Years -2.77 1 Year -40.38 5 Years -2.32 1 Year -41.26 CLASS C SHARES Inception (8/4/97) -0.45% CLASS C SHARES 10 Years -2.48 Inception (8/4/97) -0.92% 5 Years -0.51 10 Years -2.91 1 Year -37.90 5 Years -1.91 1 Year -38.74 CLASS Y SHARES 10 Years -1.86% CLASS Y SHARES 5 Years 0.23 10 Years -2.30% 1 Year -36.66 5 Years -1.19 1 Year -37.59 ========================================== ========================================== CLASS Y SHARES' INCEPTION DATE IS OCTOBER THE NET ANNUAL FUND OPERATING EXPENSE ANCE IS AT NET ASSET VALUE. THE 3, 2008; RETURNS SINCE THAT DATE ARE RATIO SET FORTH IN THE MOST RECENT FUND PERFORMANCE OF THE FUND'S SHARE CLASSES ACTUAL RETURNS. ALL OTHER RETURNS ARE PROSPECTUS AS OF THE DATE OF THIS REPORT WILL DIFFER PRIMARILY DUE TO DIFFERENT BLENDED RETURNS OF ACTUAL CLASS Y SHARE FOR CLASS A, CLASS B, CLASS C AND CLASS Y SALES CHARGE STRUCTURES AND CLASS PERFORMANCE AND RESTATED CLASS A SHARE SHARES WAS 1.60%, 2.35%, 2.35% AND 1.35%, EXPENSES. PERFORMANCE (FOR PERIODS PRIOR TO THE RESPECTIVELY.(1) THE TOTAL ANNUAL FUND INCEPTION DATE OF CLASS Y SHARES) AT NET OPERATING EXPENSE RATIO SET FORTH IN THE A REDEMPTION FEE OF 2% WILL BE IMPOSED ASSET VALUE. THE RESTATED CLASS A SHARE MOST RECENT FUND PROSPECTUS AS OF THE DATE ON CERTAIN REDEMPTIONS OR EXCHANGES OUT OF PERFORMANCE REFLECTS THE RULE 12B-1 FEES OF THIS REPORT FOR CLASS A, CLASS B, CLASS THE FUND WITHIN 31 DAYS OF PURCHASE. APPLICABLE TO CLASS A SHARES AS WELL AS C AND CLASS Y SHARES WAS 1.61%, 2.36%, EXCEPTIONS TO THE REDEMPTION FEE ARE ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS 2.36% AND 1.36%, RESPECTIVELY. THE EXPENSE LISTED IN THE FUND'S PROSPECTUS. RECEIVED BY CLASS A SHARES. CLASS A RATIOS PRESENTED ABOVE MAY VARY FROM THE SHARES' INCEPTION DATE IS SEPTEMBER EXPENSE RATIOS PRESENTED IN OTHER SECTIONS (1) Total annual operating expenses less 15,1994. OF THIS REPORT THAT ARE BASED ON EXPENSES any contractual fee waivers and/or INCURRED DURING THE PERIOD COVERED BY THIS expense reimbursements by the advisor THE PERFORMANCE DATA QUOTED REPRESENT REPORT. in effect through at least June PAST PERFORMANCE AND CANNOT GUARANTEE 30,2009. See current prospectus for COMPARABLE FUTURE RESULTS; CURRENT CLASS A SHARE PERFORMANCE REFLECTS THE more information. PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE MAXIMUM 5.50% SALES CHARGE, AND CLASS B VISIT INVESCOAIM.COM FOR THE MOST RECENT AND CLASS C SHARE PERFORMANCE REFLECTS THE MONTH-END PERFORMANCE. PERFORMANCE FIGURES APPLICABLE CONTINGENT DEFERRED SALES REFLECT REINVESTED DISTRIBUTIONS, CHANGES CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE IN NET ASSET VALUE AND THE EFFECT OF THE CDSC ON CLASS B SHARES DECLINES FROM 5% MAXIMUM SALES CHARGE UNLESS OTHERWISE BEGINNING AT THE TIME OF PURCHASE TO 0% AT STATED. PERFORMANCE FIGURES DO NOT REFLECT THE BEGINNING OF THE SEVENTH YEAR. THE DEDUCTION OF TAXES A SHAREHOLDER WOULD PAY CDSC ON CLASS C SHARES IS 1% FOR THE FIRST ON FUND DISTRIBUTIONS OR SALE OF FUND YEAR AFTER PURCHASE. CLASS Y SHARES DO NOT SHARES. INVESTMENT RETURN AND PRINCIPAL HAVE A FRONT-END SALES CHARGE OR A CDSC; VALUE WILL FLUCTUATE SO THAT YOU MAY HAVE THEREFORE, PERFORM- A GAIN OR LOSS WHEN YOU SELL SHARES.
3 AIM GLOBAL GROWTH FUND Dear Fellow Shareholders: Since my last letter, continuing troubles in the global economy and financial markets have negatively affected all investors. However, mutual funds generally are more diversified than other investments; as [CROCKETT PHOTO] shareholders we invest not in a single security but in a portfolio of multiple securities. Mutual fund investors also have the opportunity to diversify further among different types of funds that each deploy a Bruce Crockett different strategy and focus on different kinds of securities. To develop a diversified and disciplined investing plan that is right for you, I encourage you to consult an investment professional who has the knowledge and the tools to help you establish, implement, and monitor the plan. You may also visit the Invesco Aim website at invescoaim.com to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by Corporate Insight. As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring investment performance and streamlining the investment management process. Your Board has already begun the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most cost-effective ways for you to invest your hard-earned money. Please feel free to contact me in writing with your questions or concerns. You can send an email to me at bruce@brucecrockett.com. Sincerely, /s/ BRUCE L. CROCKETT Bruce L. Crockett Independent Chair, AIM Funds Board of Trustees Dear Shareholders: The past year was difficult to say the least for virtually all investors. Market indexes in the U.S. and around the globe declined sharply in 2008, and "market experts" remain divided on the markets' outlook. Recent history should have reminded all of us that investor sentiment can be fickle. This is why we [TAYLOR PHOTO] believe investors should work with their financial advisors to devise a goals-based financial strategy - a long-term plan with a reasonable prospect of achieving predetermined financial goals in line with individual Philip Taylor risk tolerance. Such a strategy cannot guarantee a profit or protect against loss in a declining market, but it may help investors avoid emotion-driven, short-term investment mistakes. None of us can control the markets, but we can control our own reaction to the unsettling volatility we're experiencing. Your financial advisor can work with you to create a specific, concrete investment plan consistent with your financial goals and risk tolerance - a long-term plan guided by logic, not emotion. Invesco Aim has worked on behalf of investors in both bull markets and bear markets. We're focused on doing one thing well: managing your money. If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246. I invite you to visit invescoaim.com, where you can check on your individual account and obtain long-term performance information for your fund. By clicking on the "more" link next to the "Investment Perspective" headline at the top of the page, you can also read my detailed market updates and my interview with Invesco's chief economist - as well as other market and fund commentaries by Invesco's investment professionals. As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind. Thank you for investing with us. All of us at Invesco Aim look forward to serving you. Sincerely, /s/ PHILIP TAYLOR Philip Taylor Senior Managing Director, Invesco Ltd. CEO, Invesco Aim
4 AIM GLOBAL GROWTH FUND SCHEDULE OF INVESTMENTS(a) April 30, 2009 (Unaudited)
SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS & OTHER EQUITY INTERESTS-89.82% AUSTRALIA-3.24% BHP Billiton Ltd. 158,437 $ 3,813,929 ------------------------------------------------------------------------------ Cochlear Ltd. 53,730 1,940,566 ------------------------------------------------------------------------------ QBE Insurance Group Ltd. 54,055 852,549 ============================================================================== 6,607,044 ============================================================================== BELGIUM-2.27% Anheuser-Busch InBev N.V. 152,009 4,638,758 ------------------------------------------------------------------------------ Anheuser-Busch InBev N.V.-Ctfs.(b) 97,344 257 ============================================================================== 4,639,015 ============================================================================== CANADA-1.27% Suncor Energy, Inc. 102,124 2,592,471 ============================================================================== DENMARK-1.97% Novo Nordisk A.S.-Class B 84,561 4,011,823 ============================================================================== FRANCE-4.65% Axa S.A. 49,769 829,165 ------------------------------------------------------------------------------ BNP Paribas 43,661 2,298,364 ------------------------------------------------------------------------------ Cap Gemini S.A. 40,655 1,519,295 ------------------------------------------------------------------------------ Total S.A. 96,810 4,840,366 ============================================================================== 9,487,190 ============================================================================== GERMANY-4.34% Bayer AG 73,487 3,644,911 ------------------------------------------------------------------------------ Merck KGaA 32,568 2,915,192 ------------------------------------------------------------------------------ Puma AG Rudolf Dassler Sport 10,747 2,293,892 ============================================================================== 8,853,995 ============================================================================== GREECE-0.62% OPAP S.A. 40,671 1,261,110 ============================================================================== HONG KONG-1.98% Hutchison Whampoa Ltd. 384,000 2,254,282 ------------------------------------------------------------------------------ Li & Fung Ltd. 632,000 1,778,992 ============================================================================== 4,033,274 ============================================================================== INDIA-1.63% Infosys Technologies Ltd. 36,747 1,113,503 ------------------------------------------------------------------------------ Infosys Technologies Ltd.-ADR 72,052 2,219,922 ============================================================================== 3,333,425 ============================================================================== INDONESIA-0.57% PT Astra International Tbk 686,000 1,157,422 ============================================================================== IRELAND-0.94% CRH PLC 73,645 1,914,892 ============================================================================== ISRAEL-3.34% Teva Pharmaceutical Industries Ltd.-ADR 155,282 6,815,327 ============================================================================== ITALY-3.69% Eni S.p.A. 186,001 4,030,218 ------------------------------------------------------------------------------ Finmeccanica S.p.A. 248,641 3,504,307 ============================================================================== 7,534,525 ============================================================================== JAPAN-4.04% Hoya Corp. 79,600 1,373,773 ------------------------------------------------------------------------------ Keyence Corp. 12,300 2,166,681 ------------------------------------------------------------------------------ Nidec Corp. 48,400 2,655,417 ------------------------------------------------------------------------------ Toyota Motor Corp. 52,500 2,055,440 ============================================================================== 8,251,311 ============================================================================== MEXICO-1.23% Grupo Televisa S.A.-ADR 162,606 2,517,141 ============================================================================== NETHERLANDS-0.75% TNT N.V. 82,498 1,519,447 ============================================================================== PHILIPPINES-1.31% Philippine Long Distance Telephone Co. 58,850 2,679,656 ============================================================================== SINGAPORE-0.68% United Overseas Bank Ltd. 181,000 1,393,258 ============================================================================== SPAIN-0.97% Telefonica S.A. 104,168 1,977,539 ============================================================================== SWITZERLAND-8.37% Nestle S.A. 159,326 5,181,103 ------------------------------------------------------------------------------ Roche Holding AG 44,117 5,584,675 ------------------------------------------------------------------------------ Sonova Holding AG 36,375 2,381,981 ------------------------------------------------------------------------------ Syngenta AG 18,458 3,937,555 ============================================================================== 17,085,314 ============================================================================== TAIWAN-0.99% Taiwan Semiconductor Manufacturing Co. Ltd. 1,208,387 2,016,597 ============================================================================== UNITED KINGDOM-12.23% Aviva PLC 203,150 926,678 ------------------------------------------------------------------------------ BG Group PLC 84,073 1,351,191 ------------------------------------------------------------------------------ British American Tobacco PLC 34,128 827,101 ------------------------------------------------------------------------------ Compass Group PLC 434,540 2,075,993 ------------------------------------------------------------------------------ Imperial Tobacco Group PLC 240,583 5,498,032 ------------------------------------------------------------------------------ Reckitt Benckiser Group PLC 102,146 4,020,829 ------------------------------------------------------------------------------ Reed Elsevier PLC 238,164 1,767,321 ------------------------------------------------------------------------------ Tesco PLC 531,385 2,636,908 ------------------------------------------------------------------------------
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 5 AIM GLOBAL GROWTH FUND
SHARES VALUE ------------------------------------------------------------------------------ UNITED KINGDOM-(CONTINUED) Vodafone Group PLC 1,516,092 $ 2,783,483 ------------------------------------------------------------------------------ WPP PLC 446,567 3,052,874 ============================================================================== 24,940,410 ============================================================================== UNITED STATES-28.74% Accenture Ltd.-Class A 33,622 989,495 ------------------------------------------------------------------------------ Apple Inc.(b) 8,901 1,120,013 ------------------------------------------------------------------------------ Baxter International Inc. 68,085 3,302,122 ------------------------------------------------------------------------------ Chubb Corp. (The) 54,623 2,127,566 ------------------------------------------------------------------------------ Cisco Systems, Inc.(b) 61,981 1,197,473 ------------------------------------------------------------------------------ Coca-Cola Co. (The) 93,787 4,037,530 ------------------------------------------------------------------------------ Colgate-Palmolive Co. 86,965 5,130,935 ------------------------------------------------------------------------------ Corning Inc. 48,067 702,739 ------------------------------------------------------------------------------ Exxon Mobil Corp. 10,500 700,035 ------------------------------------------------------------------------------ General Dynamics Corp. 25,116 1,297,744 ------------------------------------------------------------------------------ Gilead Sciences, Inc.(b) 69,461 3,181,314 ------------------------------------------------------------------------------ Google Inc.-Class A(b) 5,210 2,063,004 ------------------------------------------------------------------------------ Johnson & Johnson 108,804 5,696,977 ------------------------------------------------------------------------------ Kellogg Co. 72,282 3,043,795 ------------------------------------------------------------------------------ Kroger Co. (The) 150,040 3,243,865 ------------------------------------------------------------------------------ MasterCard, Inc.-Class A 11,444 2,099,402 ------------------------------------------------------------------------------ McDonald's Corp. 17,876 952,612 ------------------------------------------------------------------------------ Microsoft Corp. 190,545 3,860,442 ------------------------------------------------------------------------------ Monsanto Co. 9,158 777,423 ------------------------------------------------------------------------------ Occidental Petroleum Corp. 17,537 987,158 ------------------------------------------------------------------------------ PepsiCo, Inc. 78,781 3,920,142 ------------------------------------------------------------------------------ Procter & Gamble Co. (The) 67,545 3,339,425 ------------------------------------------------------------------------------ QUALCOMM Inc. 23,670 1,001,714 ------------------------------------------------------------------------------ Raytheon Co. 66,273 2,997,528 ------------------------------------------------------------------------------ St. Jude Medical, Inc.(b) 25,469 853,721 ============================================================================== 58,624,174 ============================================================================== Total Common Stocks & Other Equity Interests (Cost $201,923,610) 183,246,360 ============================================================================== PREFERRED STOCKS-0.91% GERMANY-0.91% Porsche Automobil Holding S.E.-Pfd. (Germany) 26,055 1,865,730 ============================================================================== Total Preferred Stocks (Cost $2,628,158) 1,865,730 ============================================================================== MONEY MARKET FUNDS-7.16% Liquid Assets Portfolio-Institutional Class(c) 7,298,778 7,298,778 ------------------------------------------------------------------------------ Premier Portfolio-Institutional Class(c) 7,298,778 7,298,778 ============================================================================== Total Money Market Funds (Cost $14,597,556) 14,597,556 ============================================================================== TOTAL INVESTMENTS-97.89% (Cost $219,149,324) 199,709,646 ============================================================================== OTHER ASSETS LESS LIABILITIES-2.11% 4,305,794 ============================================================================== NET ASSETS-100.00% $204,015,440 ______________________________________________________________________________ ==============================================================================
Investment Abbreviations: ADR - American Depositary Receipt Ctfs. - Certificates Pfd. - Preferred
Notes to Schedule of Investments: (a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor's. (b) Non-income producing security. (c) The money market fund and the Fund are affiliated by having the same investment advisor. PORTFOLIO COMPOSITION By sector, based on Net Assets as of April 30, 2009 ------------------------------------------------------------------------- Consumer Staples 22.3% ------------------------------------------------------------------------- Health Care 19.8 ------------------------------------------------------------------------- Information Technology 12.8 ------------------------------------------------------------------------- Consumer Discretionary 10.2 ------------------------------------------------------------------------- Energy 7.1 ------------------------------------------------------------------------- Industrials 5.7 ------------------------------------------------------------------------- Materials 5.1 ------------------------------------------------------------------------- Financials 4.1 ------------------------------------------------------------------------- Telecommunication Services 3.6 ------------------------------------------------------------------------- Money Market Funds Plus Other Assets Less Liabilities 9.3 _________________________________________________________________________ =========================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 6 AIM GLOBAL GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) ASSETS: Investments, at value (Cost $204,551,768) $ 185,112,090 --------------------------------------------------------------------------------- Investments in affiliated money market funds, at value and cost 14,597,556 ================================================================================= Total investments, at value (Cost $219,149,324) 199,709,646 ================================================================================= Foreign currencies, at value (Cost $3,564,767) 3,570,045 --------------------------------------------------------------------------------- Receivables for: Investments sold 3,828,170 --------------------------------------------------------------------------------- Fund shares sold 97,674 --------------------------------------------------------------------------------- Dividends 859,709 --------------------------------------------------------------------------------- Investment for trustee deferred compensation and retirement plans 32,166 --------------------------------------------------------------------------------- Other assets 27,552 ================================================================================= Total assets 208,124,962 _________________________________________________________________________________ ================================================================================= LIABILITIES: Payables for: Investments purchased 3,443,911 --------------------------------------------------------------------------------- Fund shares reacquired 277,253 --------------------------------------------------------------------------------- Accrued fees to affiliates 200,033 --------------------------------------------------------------------------------- Accrued other operating expenses 104,089 --------------------------------------------------------------------------------- Trustee deferred compensation and retirement plans 84,236 ================================================================================= Total liabilities 4,109,522 ================================================================================= Net assets applicable to shares outstanding $ 204,015,440 _________________________________________________________________________________ ================================================================================= NET ASSETS CONSIST OF: Shares of beneficial interest $ 443,387,554 --------------------------------------------------------------------------------- Undistributed net investment income 631,338 --------------------------------------------------------------------------------- Undistributed net realized gain (loss) (220,570,282) --------------------------------------------------------------------------------- Unrealized appreciation (depreciation) (19,433,170) ================================================================================= $ 204,015,440 _________________________________________________________________________________ ================================================================================= NET ASSETS: Class A $ 172,427,690 _________________________________________________________________________________ ================================================================================= Class B $ 18,335,496 _________________________________________________________________________________ ================================================================================= Class C $ 11,375,069 _________________________________________________________________________________ ================================================================================= Class Y $ 996,124 _________________________________________________________________________________ ================================================================================= Institutional Class $ 881,061 _________________________________________________________________________________ ================================================================================= SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES AUTHORIZED: Class A 10,966,492 _________________________________________________________________________________ ================================================================================= Class B 1,238,885 _________________________________________________________________________________ ================================================================================= Class C 768,399 _________________________________________________________________________________ ================================================================================= Class Y 63,237 _________________________________________________________________________________ ================================================================================= Institutional Class 55,999 _________________________________________________________________________________ ================================================================================= Class A: Net asset value per share $ 15.72 --------------------------------------------------------------------------------- Maximum offering price per share (Net asset value of $15.72 divided by 94.50%) $ 16.63 _________________________________________________________________________________ ================================================================================= Class B: Net asset value and offering price per share $ 14.80 _________________________________________________________________________________ ================================================================================= Class C: Net asset value and offering price per share $ 14.80 _________________________________________________________________________________ ================================================================================= Class Y: Net asset value and offering price per share $ 15.75 _________________________________________________________________________________ ================================================================================= Institutional Class: Net asset value and offering price per share $ 15.73 _________________________________________________________________________________ =================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 7 AIM GLOBAL GROWTH FUND STATEMENT OF OPERATIONS For the six months ended April 30, 2009 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding taxes of $228,212) $ 2,703,253 ------------------------------------------------------------------------------------------------ Dividends from affiliated money market funds 41,726 ================================================================================================ Total investment income 2,744,979 ================================================================================================ EXPENSES: Advisory fees 816,413 ------------------------------------------------------------------------------------------------ Administrative services fees 24,794 ------------------------------------------------------------------------------------------------ Custodian fees 45,301 ------------------------------------------------------------------------------------------------ Distribution fees: Class A 212,634 ------------------------------------------------------------------------------------------------ Class B 104,382 ------------------------------------------------------------------------------------------------ Class C 57,123 ------------------------------------------------------------------------------------------------ Transfer agent fees -- A, B, C and Y 609,161 ------------------------------------------------------------------------------------------------ Transfer agent fees -- Institutional 157 ------------------------------------------------------------------------------------------------ Trustees' and officers' fees and benefits 12,790 ------------------------------------------------------------------------------------------------ Other 138,735 ================================================================================================ Total expenses 2,021,490 ================================================================================================ Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (14,689) ================================================================================================ Net expenses 2,006,801 ================================================================================================ Net investment income 738,178 ================================================================================================ REALIZED AND UNREALIZED GAIN (LOSS) FROM: Net realized gain (loss) from: Investment securities (includes net gains (losses) from securities sold to affiliates of $(6,297)) (19,966,942) ------------------------------------------------------------------------------------------------ Foreign currencies (206,812) ================================================================================================ (20,173,754) ================================================================================================ Change in net unrealized appreciation of: Investment securities 10,006,240 ------------------------------------------------------------------------------------------------ Foreign currencies 87,671 ================================================================================================ 10,093,911 ================================================================================================ Net realized and unrealized gain (loss) (10,079,843) ================================================================================================ Net increase (decrease) in net assets resulting from operations $ (9,341,665) ________________________________________________________________________________________________ ================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 8 AIM GLOBAL GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2009 and the year ended October 31, 2008 (Unaudited)
APRIL 30, OCTOBER 31, 2009 2008 --------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 738,178 $ 3,145,934 --------------------------------------------------------------------------------------------------------- Net realized gain (loss) (20,173,754) 13,724,162 --------------------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) 10,093,911 (191,957,603) ========================================================================================================= Net increase (decrease) in net assets resulting from operations (9,341,665) (175,087,507) ========================================================================================================= Distributions to shareholders from net investment income: Class A (2,660,193) (734,900) --------------------------------------------------------------------------------------------------------- Class B (5,525) -- --------------------------------------------------------------------------------------------------------- Class C (2,860) -- --------------------------------------------------------------------------------------------------------- Class Y (11,795) -- --------------------------------------------------------------------------------------------------------- Institutional Class (20,615) (24) ========================================================================================================= Total distributions from net investment income (2,700,988) (734,924) ========================================================================================================= Share transactions-net: Class A (7,700,314) (24,085,270) --------------------------------------------------------------------------------------------------------- Class B (5,831,738) (29,896,760) --------------------------------------------------------------------------------------------------------- Class C (789,295) (5,039,894) --------------------------------------------------------------------------------------------------------- Class Y 195,740 942,705 --------------------------------------------------------------------------------------------------------- Institutional Class (67,715) 1,394,081 ========================================================================================================= Net increase (decrease) in net assets resulting from share transactions (14,193,322) (56,685,138) ========================================================================================================= Net increase (decrease) in net assets (26,235,975) (232,507,569) ========================================================================================================= NET ASSETS: Beginning of period 230,251,415 462,758,984 --------------------------------------------------------------------------------------------------------- End of period (includes undistributed net investment income of $631,338 and $2,594,148, respectively) $204,015,440 $ 230,251,415 _________________________________________________________________________________________________________ =========================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 9 AIM GLOBAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 2009 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM Global Growth Fund (the "Fund") is a series portfolio of AIM International Mutual Funds (the "Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end series management investment company consisting of six separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The Fund's investment objective is long-term growth of capital. The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver shares may be subject to contingent deferred sales charges ("CDSC"). Class B shares and Class C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. 10 AIM GLOBAL GROWTH FUND B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment advisor may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. D. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. G. ACCOUNTING ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. I. REDEMPTION FEES -- The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. J. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. K. 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 11 AIM GLOBAL GROWTH FUND between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES The Trust has entered into a master investment advisory agreement with Invesco Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Advisor based on the annual rate of the Fund's average daily net assets as follows:
AVERAGE NET ASSETS RATE ------------------------------------------------------------------- First $250 million 0.80% ------------------------------------------------------------------- Next $250 million 0.78% ------------------------------------------------------------------- Next $500 million 0.76% ------------------------------------------------------------------- Next $1.5 billion 0.74% ------------------------------------------------------------------- Next $2.5 billion 0.72% ------------------------------------------------------------------- Next $2.5 billion 0.70% ------------------------------------------------------------------- Next $2.5 billion 0.68% ------------------------------------------------------------------- Over $10 billion 0.66% ___________________________________________________________________ ===================================================================
Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Advisor and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-Advisor(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Advisor(s). The Advisor has contractually agreed, through at least June 30, 2009, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Advisor receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the six months ended April 30, 2009, the Advisor waived advisory fees of $4,136. At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the AIM Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended April 30, 2009, Invesco reimbursed expenses of the Fund in the amount of $693. The Trust has entered into a transfer agency and service agreement with Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has agreed to pay IAIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the course of providing such services. IAIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IAIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust's Board of Trustees. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees. The Trust has entered into a master administrative services agreement with Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees. The Trust has entered into master distribution agreements with Invesco Aim Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class B, Class C, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A, Class B and Class C shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays IADI compensation at the annual rate of 0.25% of the Fund's average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended April 30, 2009, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees. Front-end sales commissions and CDSC (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2009, IADI advised the Fund that IADI retained $7,524 in front-end sales commissions from the sale of Class A shares and $491, $16,965 and $402 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. Certain officers and trustees of the Trust are officers and directors of Invesco Aim, IAIS and/or IADI. 12 AIM GLOBAL GROWTH FUND NOTE 3--SUPPLEMENTAL INFORMATION The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level: Level 1 -- Prices are determined using quoted prices in an active market for identical assets. Level 2 -- Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level 3 -- Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. The following is a summary of the tiered valuation input levels, as of the end of the reporting period, April 30, 2009. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
INVESTMENTS IN INPUT LEVEL SECURITIES -------------------------------------- Level 1 $106,200,977 -------------------------------------- Level 2 93,508,669 -------------------------------------- Level 3 -- ====================================== $199,709,646 ______________________________________ ======================================
NOTE 4--SECURITY TRANSACTIONS WITH AFFILIATED FUNDS The Fund is permitted to purchase or sell securities from or to certain other AIM Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment advisor (or affiliated investment advisors), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended April 30, 2009, the Fund engaged in securities purchases of $4,530,398 and securities sales of $13,127, which resulted in net realized gains (losses) of $ (6,297). NOTE 5--EXPENSE OFFSET ARRANGEMENTS The expense offset arrangements are comprised of (i) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (ii) custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended April 30, 2009, the Fund received credits from these arrangements, which resulted in the reduction of the Fund's total expenses of $9,860. NOTE 6--TRUSTEES' AND OFFICERS' FEES AND BENEFITS "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and "Trustees' and Officers' Fees and Benefits" also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various AIM Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund. During the six months ended April 30, 2009, the Fund paid legal fees of $2,152 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. NOTE 7--CASH BALANCES The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco Aim, not to exceed the contractually agreed upon rate. 13 AIM GLOBAL GROWTH FUND NOTE 8--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end. Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. The Fund had a capital loss carryforward as of October 31, 2008 which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD* ----------------------------------------------------------------------------------------------- October 31, 2009 $ 88,020,792 ----------------------------------------------------------------------------------------------- October 31, 2010 101,042,257 ----------------------------------------------------------------------------------------------- October 31, 2011 11,321,620 =============================================================================================== Total capital loss carryforward $200,384,669 _______________________________________________________________________________________________ ===============================================================================================
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. NOTE 9--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2009 was $29,972,610 and $53,148,837, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS ------------------------------------------------------------------------------------------------ Aggregate unrealized appreciation of investment securities $ 21,702,761 ------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (41,154,298) ================================================================================================ Net unrealized appreciation (depreciation) of investment securities $(19,451,537) ________________________________________________________________________________________________ ================================================================================================ Cost of investments for tax purposes is $219,161,183.
14 AIM GLOBAL GROWTH FUND NOTE 10--SHARE INFORMATION
SUMMARY OF SHARE ACTIVITY ------------------------------------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED APRIL 30, 2009(a) OCTOBER 31, 2008 --------------------------- --------------------------- SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------ Sold: Class A 242,172 $ 3,695,205 1,497,410 $ 38,052,010 ------------------------------------------------------------------------------------------------------------------------ Class B 71,987 1,030,844 165,799 3,692,774 ------------------------------------------------------------------------------------------------------------------------ Class C 60,110 871,620 92,945 2,106,168 ------------------------------------------------------------------------------------------------------------------------ Class Y(b) 14,052 200,089 50,102 951,733 ------------------------------------------------------------------------------------------------------------------------ Institutional Class 8,023 121,405 63,782 1,460,315 ======================================================================================================================== Issued as reinvestment of dividends: Class A 161,771 2,484,805 26,223 694,393 ------------------------------------------------------------------------------------------------------------------------ Class B 370 5,363 -- -- ------------------------------------------------------------------------------------------------------------------------ Class C 188 2,724 -- -- ------------------------------------------------------------------------------------------------------------------------ Class Y 761 11,703 -- -- ------------------------------------------------------------------------------------------------------------------------ Institutional Class 1,346 20,615 1 24 ======================================================================================================================== Automatic conversion of Class B shares to Class A shares: Class A 278,841 4,243,338 883,035 20,709,283 ------------------------------------------------------------------------------------------------------------------------ Class B (296,529) (4,243,338) (945,599) (20,709,283) ======================================================================================================================== Reacquired:(c) Class A(b) (1,203,823) (18,123,662) (3,536,798) (83,540,956) ------------------------------------------------------------------------------------------------------------------------ Class B (186,214) (2,624,607) (579,696) (12,880,251) ------------------------------------------------------------------------------------------------------------------------ Class C (116,697) (1,663,639) (325,092) (7,146,062) ------------------------------------------------------------------------------------------------------------------------ Class Y (1,103) (16,052) (575) (9,028) ------------------------------------------------------------------------------------------------------------------------ Institutional Class (14,011) (209,735) (3,511) (66,258) ======================================================================================================================== Net decrease in share activity (978,756) $(14,193,322) (2,611,974) $(56,685,138) ________________________________________________________________________________________________________________________ ========================================================================================================================
(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 19% of the outstanding shares of the Fund. IADI has an agreement with these entities to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco Aim and/or Invesco Aim affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. (c) Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A and Investor Class shares into Class Y shares of the Fund:
CLASS FUND SHARES AMOUNT --------------------------------------------------------------------------------------------------- Class Y 49,496 $ 940,433 --------------------------------------------------------------------------------------------------- Class A (49,496) $(940,433) ___________________________________________________________________________________________________ ===================================================================================================
(c) Net of redemption fees of $849 and $2,905 which were allocated among the classes based on relative net assets of each class for the six months ended April 30, 2009 and the year ended October 31 2008, respectively. 15 AIM GLOBAL GROWTH FUND NOTE 11--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
NET GAINS (LOSSES) ON NET ASSET NET SECURITIES DIVIDENDS VALUE, INVESTMENT (BOTH TOTAL FROM FROM NET NET ASSET NET ASSETS, BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT VALUE, END OF TOTAL END OF PERIOD OF PERIOD (LOSS)(a) UNREALIZED) OPERATIONS INCOME PERIOD(b) RETURN(c) (000S OMITTED) -------------------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $16.56 $ 0.06 $ (0.67)(e) $ (0.60) $(0.24) $15.72 $ (3.62)(e) 172,428 Year ended 10/31/08 28.18 0.24 (11.80) (11.56) (0.06) 16.56 (41.11) 190,275 Year ended 10/31/07 22.94 0.12 5.22 5.34 (0.10) 28.18 23.35 355,538 Year ended 10/31/06 19.02 0.06 3.99 4.05 (0.13) 22.94 21.39 310,028 Year ended 10/31/05 16.65 0.08(g) 2.29 2.37 -- 19.02 14.23 284,122 Year ended 10/31/04 14.91 (0.04) 1.78 1.74 -- 16.65 11.67 286,068 CLASS B Six months ended 04/30/09 15.42 0.00 (0.62)(e) (0.62) 0.00 14.80 (4.00)(e) 18,335 Year ended 10/31/08 26.37 0.06 (11.01) (10.95) -- 15.42 (41.52) 25,426 Year ended 10/31/07 21.54 (0.07) 4.90 4.83 -- 26.37 22.42 79,333 Year ended 10/31/06 17.87 (0.09) 3.76 3.67 -- 21.54 20.54 90,571 Year ended 10/31/05 15.76 (0.04)(g) 2.15 2.11 -- 17.87 13.39 105,368 Year ended 10/31/04 14.18 (0.11) 1.69 1.58 -- 15.76 11.14 139,061 CLASS C Six months ended 04/30/09 15.42 0.00 (0.62)(e) (0.62) 0.00 14.80 (4.00)(e) 11,375 Year ended 10/31/08 26.38 0.06 (11.02) (10.96) -- 15.42 (41.55) 12,719 Year ended 10/31/07 21.55 (0.07) 4.90 4.83 -- 26.38 22.41 27,878 Year ended 10/31/06 17.88 (0.09) 3.76 3.67 -- 21.55 20.52 24,565 Year ended 10/31/05 15.77 (0.04)(g) 2.15 2.11 -- 17.88 13.38 23,619 Year ended 10/31/04 14.18 (0.11) 1.70 1.59 -- 15.77 11.21 27,649 CLASS Y Six months ended 04/30/09 16.57 0.08 (0.66)(e) (0.58) (0.24) 15.75 (3.48)(e) 996 Year ended 10/31/08(h) 19.00 0.01 (2.44) (2.43) -- 16.57 (12.79) 821 INSTITUTIONAL CLASS Six months ended 04/30/09 16.65 0.12 (0.67)(e) (0.55) (0.37) 15.73 (3.25)(e) 881 Year ended 10/31/08 28.19 0.30 (11.77) (11.47) (0.07) 16.65 (40.79) 1,010 Year ended 10/31/07(h) 27.11 0.02 1.06 1.08 -- 28.19 3.98 10 ________________________________________________________________________________________________________________________________ ================================================================================================================================ RATIO OF RATIO OF EXPENSES EXPENSES TO AVERAGE TO AVERAGE RATIO OF NET NET ASSETS NET ASSETS INVESTMENT WITH FEE WAIVERS WITHOUT FEE WAIVERS INCOME (LOSS) AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO ABSORBED ABSORBED NET ASSETS TURNOVER(d) -------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $1.87(f) 1.87%(f) 0.84%(f) 17% Year ended 10/31/08 1.59 1.60 1.00 48 Year ended 10/31/07 1.53 1.57 0.47 38 Year ended 10/31/06 1.62 1.68 0.28 42 Year ended 10/31/05 1.77 1.82 0.44(g) 51 Year ended 10/31/04 1.96 1.97 (0.24) 56 CLASS B Six months ended 04/30/09 2.62(f) 2.62(f) 0.09(f) 17 Year ended 10/31/08 2.34 2.35 0.25 48 Year ended 10/31/07 2.28 2.32 (0.28) 38 Year ended 10/31/06 2.37 2.43 (0.47) 42 Year ended 10/31/05 2.43 2.48 (0.22)(g) 51 Year ended 10/31/04 2.46 2.47 (0.74) 56 CLASS C Six months ended 04/30/09 2.62(f) 2.62(f) 0.09(f) 17 Year ended 10/31/08 2.34 2.35 0.25 48 Year ended 10/31/07 2.28 2.32 (0.28) 38 Year ended 10/31/06 2.37 2.43 (0.47) 42 Year ended 10/31/05 2.43 2.48 (0.22)(g) 51 Year ended 10/31/04 2.46 2.47 (0.74) 56 CLASS Y Six months ended 04/30/09 1.62(f) 1.62(f) 1.09(f) 17 Year ended 10/31/08(h) 1.45(i) 1.46(i) 1.14(i) 48 INSTITUTIONAL CLASS Six months ended 04/30/09 1.05(f) 1.05(f) 1.66(f) 17 Year ended 10/31/08 1.08 1.09 1.51 48 Year ended 10/31/07(h) 1.05(i) 1.05(i) 0.94(i) 38 ____________________________________________________________________________________________ ============================================================================================
(a) Calculated using average shares outstanding. (b) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. (c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. (d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. (e) Includes litigation proceeds received during the period. Had the litigation proceeds not been received, net gains (losses) on securities (both realized and unrealized) per share would have been $(0.77), $(0.72), $(0.76) and $(0.78) for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively and total return would have been lower. (f) Ratios are annualized and based on average daily net assets (000's omitted) of $171,517, $21,049, $11,519, $829 and $880 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively. (g) Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets include a special cash dividend received of $3.00 per share owned of Microsoft Corp. on December 2, 2004. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the special dividend are $0.05 and 0.27%, $(0.07) and (0.39)% and $(0.07) and (0.39)% for Class A, Class B, and Class C shares, respectively. (h) Commencement date of October 3, 2008 and September 28, 2007 for Class Y and Institutional Class shares, respectively. (i) Annualized. 16 AIM GLOBAL GROWTH FUND NOTE 12--LEGAL PROCEEDINGS Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note. SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING On May 23, 2008, the Securities and Exchange Commission ("SEC") publicly posted its final approval of the Distribution Plans ("Distribution Plans") for the distribution of monies placed into two separate Fair Funds created pursuant to a settlement reached on October 8, 2004 between Invesco Funds Group, Inc. ("IFG"), Invesco Aim Advisors, Inc. ("Invesco Aim") and Invesco Aim Distributors, Inc. ("IADI") and the SEC (the "Order"). One of the Fair Funds consists of $325 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds formerly advised by IFG who may have been harmed by market timing and related activity. The second Fair Fund consists of $50 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds advised by Invesco Aim who may have been harmed by market timing and related activity. The Distribution Plans provide for the distribution to all eligible investors to compensate such investors for injury they may have suffered as a result of market timing in the affected funds. The Distribution Plans include a provision for any residual amounts in the Fair Funds to be distributed in the future to the affected funds. At this time, management of Invesco Aim and the Fund are unable to estimate the residual distribution to the Fund, if any. At the request of the trustees of the AIM Funds, Invesco Ltd. ("Invesco"), the parent company of IFG and Invesco Aim, has agreed to reimburse expenses incurred by the AIM Funds related to market timing matters. PENDING LITIGATION AND REGULATORY INQUIRIES Civil lawsuits, including purported class action and shareholder derivative suits, have been filed against certain of the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals alleging that the defendants permitted improper market timing and related activity in the AIM Funds. These lawsuits allege as theories of recovery, depending on the lawsuit, violations of various provisions of the Federal and state securities laws and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), negligence, breach of fiduciary duty and/or breach of contract. These lawsuits seek remedies that include, depending on the lawsuit, damages, restitution, injunctive relief, imposition of a constructive trust, removal of certain directors and/or employees, various corrective measures under ERISA, rescission of certain AIM Funds' advisory agreements and/or distribution plans and recovery of all fees paid. All lawsuits based on allegations of market timing, late trading and related issues were transferred to the United States District Court for the District of Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in these lawsuits consolidated their claims for pre-trial purposes into three amended complaints against various Invesco Aim- and IFG-related parties: (i) a Consolidated Amended Class Action Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly brought on behalf of participants in the Invesco 401(k) plan. Based on orders issued by the MDL Court, all claims asserted against the AIM Funds that have been transferred to the MDL Court have been dismissed, although certain Funds remain nominal defendants in the Consolidated Amended Fund Derivative Complaint. On January 5, 2008, the parties reached an agreement in principle to settle both the Consolidated Amended Class Action Complaint and Consolidated Amended Fund Derivative Complaint, subject to the MDL Court approval. Individual class members have the right to object. On December 15, 2008, the parties reached an agreement in principle to settle the Amended Class Action Complaint for Violations of ERISA, subject to the MDL Court approval. Individual class members have the right to object. No payments are required under the settlement; however, the parties agreed that certain limited changes to benefit plans and participants' accounts would be made. IFG, Invesco Aim, IADI and/or related entities and individuals have received inquiries from numerous regulators in the form of subpoenas or other oral or written requests for information and/or documents related to one or more of the following issues, among others, some of which concern one or more AIM Funds: market timing activity, late trading, fair value pricing, excessive or improper advisory and/or distribution fees, mutual fund sales practices, including revenue sharing and directed-brokerage arrangements, investments in securities of other registered investment companies, contractual plans, issues related to Section 529 college savings plans and procedures for locating lost security holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing full cooperation with respect to these inquiries. Regulatory actions and/or additional civil lawsuits related to these or other issues may be filed against the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in the future. 17 AIM GLOBAL GROWTH FUND CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
--------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO --------------------------------------------------------------------------------------------------- A $1,000.00 $963.30 $ 9.10 $1,015.52 $ 9.35 1.87% --------------------------------------------------------------------------------------------------- B 1,000.00 960.00 12.73 1,011.80 13.07 2.62 --------------------------------------------------------------------------------------------------- C 1,000.00 959.40 12.73 1,011.80 13.07 2.62 --------------------------------------------------------------------------------------------------- Y 1,000.00 964.70 7.89 1,016.76 8.10 1.62 ---------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. 18 AIM GLOBAL GROWTH FUND Supplement to Semiannual Report dated 4/30/09 AIM GLOBAL GROWTH FUND ========================================== INSTITUTIONAL CLASS SHARES AVERAGE ANNUAL TOTAL RETURNS Fund operating expense ratio set forth in For periods ended 4/30/09 the most recent Fund prospectus as of the The following information has been date of this supplement for Institutional prepared to provide Institutional Class 10 Years -1.77% Class shares was 1.10%. The expense ratios shareholders with a performance overview 5 Years 0.42 presented above may vary from the expense specific to their holdings. Institutional 1 Year -36.50 ratios presented in other sections of the Class shares are offered exclusively to 6 Months* -3.25 actual report that are based on expenses institutional investors, including defined ========================================== incurred during the period covered by the contribution plans that meet certain report. criteria. ========================================== AVERAGE ANNUAL TOTAL RETURNS A redemption fee of 2% will be imposed For periods ended 3/31/09, most recent on certain redemptions or exchanges out of calendar quarter-end the Fund within 31 days of purchase. Exceptions to the redemption fee are 10 Years -2.22% listed in the Fund's prospectus. 5 Years -1.03 1 Year -37.44 Please note that past performance is 6 Months* -24.83 not indicative of future results. More recent returns may be more or less than * Cumulative total return that has not those shown. All returns assume been annualized reinvestment of distributions at NAV. ========================================== Investment return and principal value will fluctuate so your shares, when redeemed, Institutional Class shares' inception date may be worth more or less than their is September 28, 2007. Returns since that original cost. See full report for date are historical returns. All other information on comparative benchmarks. returns are blended returns of historical Please consult your Fund prospectus for Institutional Class share performance and more information. For the most current restated Class A share performance (for month-end performance, please call periods prior to the inception date of 800 451 4246 or visit invescoaim.com. Institutional Class shares) at net asset value (NAV) and reflect the Rule 12b-1 (1) Total annual operating expenses less fees applicable to Class A shares. Class A any contractual fee waivers and/or shares' inception date is September 15, expense reimbursements by the advisor 1994. in effect through at least June 30, 2009. See current prospectus for more Institutional Class shares have no information. sales charge; therefore, performance is at NAV. Performance of Institutional Class shares will differ from performance of other share classes primarily due to differing sales charges and class expenses. The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this supplement for Institutional Class shares was 1.09%.(1) The total annual Over for information on your Fund's expenses. THIS SUPPLEMENT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. FOR INSTITUTIONAL INVESTOR USE ONLY This material is for institutional investor use only and may not be quoted, reproduced or shown to the public, nor used in written form as sales literature for public use. [INVESCO AIM LOGO] invescoaim.com GLG-INS-2 Invesco Aim Distributors, Inc. --SERVICE MARK--
CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
----------------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO ----------------------------------------------------------------------------------------------------------- Institutional $1,000.00 $967,50 $5.12 $1,019.59 $5.26 1.05% -----------------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. AIM GLOBAL GROWTH FUND [GO PAPERLESS GRAPHIC] ==================================================================================================================================== GO PAPERLESS WITH EDELIVERY Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all about eeees: o ENVIRONMENTALLY FRIENDLY. Go green by reducing the number of o EFFICIENT. Stop waiting for regular mail. Your documents will trees used to produce paper. be sent via email as soon as they're available. o ECONOMICAL. Help reduce your fund's printing and delivery o EASY. Download, save and print files using your home computer expenses and put more capital back in your fund's returns. with a few clicks of your mouse. This service is provided by Invesco Aim Investment Services, Inc. ==================================================================================================================================== FUND HOLDINGS AND PROXY VOTING INFORMATION The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-06463 and 033-44611. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov. If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim Quarterly Performance Review for the most recent quarter-end. Invesco Aim --SERVICE MARK-- is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund's prospectus for information on the fund's subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, [INVESCO AIM LOGO] Inc., Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco --SERVICE MARK-- Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com on or about the end of the fourth quarter of 2009. invescoaim.com GLG-SAR-1 Invesco Aim Distributors, Inc.
[INVESCO AIM LOGO] AIM GLOBAL SMALL & MID CAP GROWTH FUND --SERVICE MARK-- Semiannual Report to Shareholders o April 30,2009 [MOUNTAIN GRAPHIC] Fund Performance 2 Letters to Shareholders 4 Schedule of Investments 5 Financial Statements 8 Notes to Financial Statements 11 Financial Highlights 17 Fund Expenses 19
For the most current month-end Fund performance and commentary, please visit invescoaim.com. Unless otherwise noted, all data provided by Invesco Aim. THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE FUND PERFORMANCE ======================================================================================= PERFORMANCE SUMMARY FUND VS. INDEXES Cumulative total returns, 10/31/08 to 4/30/09, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. Class A Shares 1.71% Class B Shares 1.32 Class C Shares 1.31 Class Y Shares 1.91 MSCI World Index(Triangle) (Broad Market Index) -5.44 MSCI World Growth Index(Triangle) (Style-Specific Index) -4.13 Lipper Global Small/Mid-Cap Funds Category Average(Triangle)* (Peer Group) 0.13 (Triangle) Lipper Inc. * The Fund has elected to use the Lipper Global Small/Mid Cap Funds Category Average as its peer group benchmark because Lipper has discontinued the Fund's former peer group benchmark, the Lipper Global Small/Mid Cap Growth Funds Category Average. The MSCI WORLD INDEX --SERVICE MARK-- is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. The MSCI WORLD GROWTH INDEX is a free float-adjusted market capitalization index that represents the growth segment in global developed market equity performance. The LIPPER GLOBAL SMALL/MID-CAP FUNDS CATEGORY AVERAGE represents an average of all the funds in the Lipper Global Small/Mid-Cap Funds category. These funds invest at least 75% of their equity assets in companies both inside and outside the U.S. with market capitalizations (on a three-year weighted basis) below Lipper's global large-cap floor. The LIPPER GLOBAL SMALL/MID-CAP GROWTH CATEGORY AVERAGE represents an average of all of the funds in the Lipper Global Small/Mid-Cap Growth Funds category. These funds typically have an above-average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P/Citigroup World BMI. The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group reflects fund expenses; performance of a market index does not. =======================================================================================
2 AIM GLOBAL SMALL & MID CAP GROWTH FUND ========================================== ========================================== AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS As of 4/30/09, including maximum As of 3/31/09, the most recent calendar applicable sales charges quarter-end, including maximum applicable sales charges CLASS A SHARES Inception (9/15/94) 5.79% CLASS A SHARES 10 Years 2.21 Inception (9/15/94) 4.89% 5 Years 1.36 10 Years 1.30 1 Year -43.36 5 Years -1.83 1 Year -48.22 CLASS B SHARES Inception (9/15/94) 5.89% CLASS B SHARES 10 Years 2.32 Inception (9/15/94) 4.98% 5 Years 1.52 10 Years 1.40 1 Year -43.22 5 Years -1.67 1 Year -48.07 CLASS C SHARES Inception (8/4/97) 1.55% CLASS C SHARES 10 Years 2.16 Inception (8/4/97) 0.44% 5 Years 1.79 10 Years 1.24 1 Year -41.04 5 Years -1.42 1 Year -46.16 CLASS Y SHARES 10 Years 2.82% CLASS Y SHARES 5 Years 2.56 10 Years 1.88% 1 Year -39.90 5 Years -0.69 1 Year -45.15 ========================================== ========================================== CLASS Y SHARES' INCEPTION DATE IS OCTOBER THE NET ANNUAL FUND OPERATING EXPENSE THE PERFORMANCE OF THE FUND'S SHARE 3,2008; RETURNS SINCE THAT DATE ARE ACTUAL RATIO SET FORTH IN THE MOST RECENT FUND CLASSES WILL DIFFER PRIMARILY DUE TO RETURNS. ALL OTHER RETURNS ARE BLENDED PROSPECTUS AS OF THE DATE OF THIS REPORT DIFFERENT SALES CHARGE STRUCTURES AND RETURNS OF ACTUAL CLASS Y SHARE FOR CLASS A, CLASS B, CLASS C AND CLASS Y CLASS EXPENSES. PERFORMANCE AND RESTATED CLASS A SHARE SHARES WAS 1.46%, 2.21%, 2.21% AND 1.21%, PERFORMANCE (FOR PERIODS PRIOR TO THE RESPECTIVELY.(1) THE TOTAL ANNUAL FUND A REDEMPTION FEE OF 2% WILL BE IMPOSED INCEPTION DATE OF CLASS Y SHARES) AT NET OPERATING EXPENSE RATIO SET FORTH IN THE ON CERTAIN REDEMPTIONS OR EXCHANGES OUT OF ASSET VALUE. THE RESTATED CLASS A SHARE MOST RECENT FUND PROSPECTUS AS OF THE DATE THE FUND WITHIN 31 DAYS OF PURCHASE. PERFORMANCE REFLECTS THE RULE 12B-1 FEES OF THIS REPORT FOR CLASS A, CLASS B, CLASS EXCEPTIONS TO THE REDEMPTION FEE ARE APPLICABLE TO CLASS A SHARES AS WELL AS C AND CLASS Y SHARES WAS 1.47%, 2.22%, LISTED IN THE FUND'S PROSPECTUS. ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS 2.22% AND 1.22%, RESPECTIVELY. THE EXPENSE RECEIVED BY CLASS A SHARES. CLASS A RATIOS PRESENTED ABOVE MAY VARY FROM THE (1) Total annual operating expenses less SHARES' INCEPTION DATE IS SEPTEMBER 15, EXPENSE RATIOS PRESENTED IN OTHER SECTIONS any contractual fee waivers and/or 1994. OF THIS REPORT THAT ARE BASED ON EXPENSES expense reimbursements by the advisor INCURRED DURING THE PERIOD COVERED BY THIS in effect through at least June THE PERFORMANCE DATA QUOTED REPRESENT REPORT. 30, 2009. See current prospectus for PAST PERFORMANCE AND CANNOT GUARANTEE more information. COMPARABLE FUTURE RESULTS; CURRENT CLASS A SHARE PERFORMANCE REFLECTS THE PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE MAXIMUM 5.50% SALES CHARGE, AND CLASS B VISIT INVESCOAIM.COM FOR THE MOST RECENT AND CLASS C SHARE PERFORMANCE REFLECTS THE MONTH-END PERFORMANCE. PERFORMANCE FIGURES APPLICABLE CONTINGENT DEFERRED SALES REFLECT REINVESTED DISTRIBUTIONS, CHANGES CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE IN NET ASSET VALUE AND THE EFFECT OF THE CDSC ON CLASS B SHARES DECLINES FROM 5% MAXIMUM SALES CHARGE UNLESS OTHERWISE BEGINNING AT THE TIME OF PURCHASE TO 0% AT STATED. PERFORMANCE FIGURES DO NOT REFLECT THE BEGINNING OF THE SEVENTH YEAR. THE DEDUCTION OF TAXES A SHAREHOLDER WOULD PAY CDSC ON CLASS C SHARES IS 1% FOR THE ON FUND DISTRIBUTIONS OR SALE OF FUND FIRST YEAR AFTER PURCHASE. CLASS Y SHARES SHARES. INVESTMENT RETURN AND PRINCIPAL DO NOT HAVE A FRONT-END SALES CHARGE OR A VALUE WILL FLUCTUATE SO THAT YOU MAY HAVE CDSC; THEREFORE, PERFORMANCE IS AT NET A GAIN OR LOSS WHEN YOU SELL SHARES. ASSET VALUE.
3 AIM GLOBAL SMALL & MID CAP GROWTH FUND Dear Fellow Shareholders: Since my last letter, continuing troubles in the global economy and financial markets have negatively [CROCKETT affected all investors. However, mutual funds generally are more diversified than other investments; as PHOTO] shareholders we invest not in a single security but in a portfolio of multiple securities. Mutual fund investors also have the opportunity to diversify further among different types of funds that each deploy a different strategy and focus on different kinds of securities. To develop a diversified and disciplined investing plan that is right for you, I encourage you to consult an investment professional who has the knowledge and the tools to help you establish, implement, and monitor the plan. You may also visit the Bruce Crockett Invesco Aim website at invescoaim.com to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by Corporate Insight. As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring investment performance and streamlining the investment management process. Your Board has already begun the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most cost-effective ways for you to invest your hard-earned money. Please feel free to contact me in writing with your questions or concerns. You can send an email to meat bruce@brucecrockett.com. Sincerely, /s/ BRUCE L. CROCKETT Bruce L. Crockett Independent Chair, AIM Funds Board of Trustees Dear Shareholders: The past year was difficult to say the least for virtually all investors. Market indexes in the U.S. and around the globe declined sharply in 2008, and "market experts" remain divided on the markets' outlook. [TAYLOR Recent history should have reminded all of us that investor sentiment can be fickle. This is why we PHOTO] believe investors should work with their financial advisors to devise a goals-based financial strategy -- a long-term plan with a reasonable prospect of achieving predetermined financial goals in line with individual risk tolerance. Such a strategy cannot guarantee a profit or protect against loss in a declining market, but it may help investors avoid emotion-driven, short-term investment mistakes. Philip Taylor None of us can control the markets, but we can control our own reaction to the unsettling volatility we're experiencing. Your financial advisor can work with you to create a specific, concrete investment plan consistent with your financial goals and risk tolerance -- a long-term plan guided by logic, not emotion. Invesco Aim has worked on behalf of investors in both bull markets and bear markets. We're focused on doing one thing well: managing your money. If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246. I invite you to visit invescoaim.com, where you can check on your individual account and obtain long-term performance information for your fund. By clicking on the "more" link next to the "Investment Perspective" headline at the top of the page, you can also read my detailed market updates and my interview with Invesco's chief economist -- as well as other market and fund commentaries by Invesco's investment professionals. As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind. Thank you for investing with us. All of us at Invesco Aim look forward to serving you. Sincerely, /s/ PHILIP TAYLOR Philip Taylor Senior Managing Director, Invesco Ltd. CEO, Invesco Aim
4 AIM GLOBAL SMALL & MID CAP GROWTH FUND SCHEDULE OF INVESTMENTS(a) April 30, 2009 (Unaudited)
SHARES VALUE ------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS-90.41% CANADA-5.56% Addax Petroleum Corp. 33,094 $ 910,834 ------------------------------------------------------------------------------- Astral Media Inc. 158,400 4,183,024 ------------------------------------------------------------------------------- Fairfax Financial Holdings Ltd. 15,058 3,997,210 ------------------------------------------------------------------------------- Gildan Activewear Inc.(b) 109,957 1,258,810 ------------------------------------------------------------------------------- Groupe Aeroplan, Inc. 633,900 3,984,454 ------------------------------------------------------------------------------- Onex Corp. 306,300 4,928,729 ------------------------------------------------------------------------------- Power Financial Corp. 263,200 5,276,353 ------------------------------------------------------------------------------- Shoppers Drug Mart Corp.(b)(c) 101,284 3,650,027 =============================================================================== 28,189,441 =============================================================================== GERMANY-5.08% Deutsche Boerse AG 150,400 11,099,579 ------------------------------------------------------------------------------- Puma AG Rudolf Dassler Sport(c) 3,935 839,906 ------------------------------------------------------------------------------- Puma AG Rudolf Dassler Sport 38,700 8,260,316 ------------------------------------------------------------------------------- Symrise AG 404,510 5,524,318 =============================================================================== 25,724,119 =============================================================================== GREECE-3.26% Intralot S.A. 1,953,016 11,536,373 ------------------------------------------------------------------------------- OPAP S.A.(c) 159,941 4,959,387 =============================================================================== 16,495,760 =============================================================================== HONG KONG-1.22% Hongkong Land Holdings Ltd. 1,297,000 3,215,214 ------------------------------------------------------------------------------- Regal Hotels International Holdings Ltd. 15,416,200 2,970,037 =============================================================================== 6,185,251 =============================================================================== INDONESIA-2.08% PT Astra International Tbk 6,239,500 10,527,309 =============================================================================== IRELAND-1.31% DCC PLC 366,961 6,645,111 =============================================================================== JAPAN-1.70% EXEDY Corp. 467,200 8,623,117 =============================================================================== MALI-0.65% Playtech Ltd. 488,000 3,281,958 =============================================================================== MEXICO-1.13% America Movil S.A.B. de C.V.-Series L-ADR 173,500 5,699,475 =============================================================================== NETHERLANDS-1.59% Koninklijke BAM Groep N.V. 507,099 4,981,852 ------------------------------------------------------------------------------- USG People N.V. 329,040 3,091,402 =============================================================================== 8,073,254 =============================================================================== NORWAY-0.47% Petroleum Geo-Services A.S.A.(b) 495,240 2,394,897 =============================================================================== PHILIPPINES-3.50% Ayala Corp. 2,905,864 13,283,609 ------------------------------------------------------------------------------- PNOC Energy Development Corp.(c) 5,262,000 393,299 ------------------------------------------------------------------------------- PNOC Energy Development Corp. 54,457,000 4,070,296 =============================================================================== 17,747,204 =============================================================================== RUSSIA-0.67% Vimpel-Communications-ADR 362,136 3,411,321 =============================================================================== SOUTH AFRICA-0.49% AngloGold Ashanti Ltd.-ADR 79,843 2,459,164 =============================================================================== SOUTH KOREA-0.54% Hyundai Development Co. 88,880 2,759,383 =============================================================================== SWEDEN-1.65% Oriflame Cosmetics S.A.-SDR 193,275 8,364,611 =============================================================================== SWITZERLAND-7.18% Aryzta AG(b) 217,713 6,356,196 ------------------------------------------------------------------------------- Galenica AG 14,285 4,103,648 ------------------------------------------------------------------------------- Sonova Holding AG 173,455 11,358,529 ------------------------------------------------------------------------------- Syngenta AG 52,542 11,208,530 ------------------------------------------------------------------------------- Weatherford International Ltd.(b) 201,111 3,344,476 =============================================================================== 36,371,379 =============================================================================== TAIWAN-1.35% Taiwan Mobile Co., Ltd. 4,278,079 6,814,111 =============================================================================== THAILAND-1.14% Siam Commercial Bank PCL 3,392,900 5,794,691 =============================================================================== TURKEY-1.94% Haci Omer Sabanci Holding A.S. 1,520,724 3,861,301 ------------------------------------------------------------------------------- Tupras-Turkiye Petrol Rafinerileri A.S. 598,629 5,943,332 =============================================================================== 9,804,633 =============================================================================== UNITED KINGDOM-13.81% Bunzl PLC 720,469 5,827,518 ------------------------------------------------------------------------------- Capita Group PLC 485,260 4,884,306 ------------------------------------------------------------------------------- Chemring Group PLC 157,852 4,891,909 ------------------------------------------------------------------------------- Compass Group PLC 611,853 2,923,097 ------------------------------------------------------------------------------- Homeserve PLC 519,854 9,407,876 ------------------------------------------------------------------------------- IG Group Holdings PLC 1,623,859 5,256,745 ------------------------------------------------------------------------------- Informa PLC 1,187,305 5,172,634 ------------------------------------------------------------------------------- International Power PLC 2,300,903 8,328,578 ------------------------------------------------------------------------------- Shire PLC 789,500 9,856,775 -------------------------------------------------------------------------------
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 5 AIM GLOBAL SMALL & MID CAP GROWTH FUND
SHARES VALUE ------------------------------------------------------------------------------- UNITED KINGDOM-(CONTINUED) Ultra Electronics Holdings PLC 288,643 $ 5,048,417 ------------------------------------------------------------------------------- United Business Media Ltd. 338,848 2,297,990 ------------------------------------------------------------------------------- VT Group PLC 888,786 6,056,725 =============================================================================== 69,952,570 =============================================================================== UNITED STATES-34.09% Activision Blizzard, Inc.(b) 269,582 2,903,398 ------------------------------------------------------------------------------- Adobe Systems Inc.(b) 140,247 3,835,755 ------------------------------------------------------------------------------- Aeropostale, Inc.(b) 101,191 3,437,458 ------------------------------------------------------------------------------- Affiliated Managers Group, Inc.(b) 58,910 3,349,034 ------------------------------------------------------------------------------- Alliance Data Systems Corp.(b) 72,753 3,046,168 ------------------------------------------------------------------------------- Amdocs Ltd.(b) 136,707 2,861,278 ------------------------------------------------------------------------------- American Tower Corp.-Class A(b) 88,365 2,806,472 ------------------------------------------------------------------------------- Amphenol Corp.-Class A 47,405 1,604,185 ------------------------------------------------------------------------------- ANSYS, Inc.(b) 53,134 1,467,561 ------------------------------------------------------------------------------- Apollo Group Inc.-Class A(b) 36,121 2,273,817 ------------------------------------------------------------------------------- Best Buy Co., Inc. 90,174 3,460,878 ------------------------------------------------------------------------------- BJ Services Co. 158,644 2,203,565 ------------------------------------------------------------------------------- CA, Inc. 129,169 2,228,165 ------------------------------------------------------------------------------- Carter's, Inc.(b) 52,507 1,122,600 ------------------------------------------------------------------------------- Chattem, Inc.(b) 45,369 2,491,212 ------------------------------------------------------------------------------- Church & Dwight Co., Inc. 52,596 2,861,748 ------------------------------------------------------------------------------- Continental Resources, Inc.(b) 129,006 3,012,290 ------------------------------------------------------------------------------- Corrections Corp. of America(b) 185,996 2,628,124 ------------------------------------------------------------------------------- Crown Holdings, Inc.(b) 188,683 4,160,460 ------------------------------------------------------------------------------- DaVita, Inc.(b) 63,022 2,922,330 ------------------------------------------------------------------------------- Equifax Inc. 109,266 3,186,197 ------------------------------------------------------------------------------- Estee Lauder Cos. Inc. (The)-Class A 131,381 3,928,292 ------------------------------------------------------------------------------- Express Scripts, Inc.(b) 54,908 3,512,465 ------------------------------------------------------------------------------- Fastenal Co. 89,805 3,444,920 ------------------------------------------------------------------------------- Hanesbrands, Inc.(b) 337,151 5,549,505 ------------------------------------------------------------------------------- Heartland Express, Inc. 210,599 3,148,455 ------------------------------------------------------------------------------- Hewitt Associates, Inc.-Class A(b) 103,258 3,238,171 ------------------------------------------------------------------------------- Hunt (J.B.) Transport Services, Inc. 136,304 3,832,869 ------------------------------------------------------------------------------- IHS Inc.-Class A(b) 61,763 2,554,518 ------------------------------------------------------------------------------- IntercontinentalExchange Inc.(b) 27,816 2,436,682 ------------------------------------------------------------------------------- ITT Educational Services, Inc.(b) 23,165 2,334,337 ------------------------------------------------------------------------------- Jarden Corp.(b) 264,197 5,310,360 ------------------------------------------------------------------------------- KLA-Tencor Corp. 130,820 3,628,947 ------------------------------------------------------------------------------- Landstar System, Inc. 85,183 3,033,367 ------------------------------------------------------------------------------- LKQ Corp.(b) 191,312 3,248,478 ------------------------------------------------------------------------------- McAfee Inc.(b) 73,726 2,767,674 ------------------------------------------------------------------------------- Mettler-Toledo International Inc.(b) 21,296 1,312,472 ------------------------------------------------------------------------------- Morgan Stanley 119,569 2,826,611 ------------------------------------------------------------------------------- Mylan, Inc.(b) 101,990 1,351,368 ------------------------------------------------------------------------------- NetApp, Inc.(b) 158,186 2,894,804 ------------------------------------------------------------------------------- Northern Trust Corp. 54,641 2,970,285 ------------------------------------------------------------------------------- O'Reilly Automotive, Inc.(b) 73,804 2,867,285 ------------------------------------------------------------------------------- Omnicare, Inc. 110,234 2,834,116 ------------------------------------------------------------------------------- ON Semiconductor Corp.(b) 601,636 3,260,867 ------------------------------------------------------------------------------- Pactiv Corp.(b) 179,241 3,918,208 ------------------------------------------------------------------------------- Petrohawk Energy Corp.(b) 139,905 3,301,758 ------------------------------------------------------------------------------- Pharmaceutical Product Development, Inc. 61,548 1,206,956 ------------------------------------------------------------------------------- Republic Services, Inc. 120,702 2,534,742 ------------------------------------------------------------------------------- Robert Half International, Inc. 145,872 3,503,845 ------------------------------------------------------------------------------- Scientific Games Corp.-Class A(b) 193,609 3,386,221 ------------------------------------------------------------------------------- Shaw Group Inc. (The)(b) 111,555 3,740,439 ------------------------------------------------------------------------------- Solera Holdings Inc.(b) 112,277 2,562,161 ------------------------------------------------------------------------------- Southwestern Energy Co.(b) 86,606 3,105,691 ------------------------------------------------------------------------------- State Street Corp. 39,854 1,360,217 ------------------------------------------------------------------------------- TD Ameritrade Holding Corp.(b) 170,903 2,719,067 ------------------------------------------------------------------------------- Thermo Fisher Scientific, Inc.(b) 87,484 3,068,939 ------------------------------------------------------------------------------- Ulta Salon, Cosmetics & Fragrance, Inc.(b) 345,555 3,023,606 ------------------------------------------------------------------------------- VCA Antech, Inc.(b) 99,648 2,493,193 ------------------------------------------------------------------------------- Western Digital Corp.(b) 112,077 2,636,051 =============================================================================== 172,710,637 =============================================================================== Total Common Stocks & Other Equity Interests (Cost $498,815,410) 458,029,396 =============================================================================== MONEY MARKET FUNDS-9.13% Liquid Assets Portfolio-Institutional Class(d) 23,128,149 23,128,149 ------------------------------------------------------------------------------- Premier Portfolio-Institutional Class(d) 23,128,149 23,128,149 =============================================================================== Total Money Market Funds (Cost $46,256,298) 46,256,298 =============================================================================== TOTAL INVESTMENTS-99.54% (Cost $545,071,708) 504,285,694 =============================================================================== OTHER ASSETS LESS LIABILITIES-0.46% 2,355,510 =============================================================================== NET ASSETS-100.00% $506,641,204 _______________________________________________________________________________ ===============================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 6 AIM GLOBAL SMALL & MID CAP GROWTH FUND Investment Abbreviations: ADR - American Depositary Receipt SDR - Swedish Depositary Receipt
Notes to Schedule of Investments: (a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor's. (b) Non-income producing security. (c) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2009 was $9,842,619, which represented 1.94% of the Fund's Net Assets. (d) The money market fund and the Fund are affiliated by having the same investment advisor. PORTFOLIO COMPOSITION By sector, based on Net Assets as of April 30, 2009 ------------------------------------------------------------------------- Consumer Discretionary 20.4% ------------------------------------------------------------------------- Industrials 16.8 ------------------------------------------------------------------------- Financials 14.3 ------------------------------------------------------------------------- Information Technology 8.6 ------------------------------------------------------------------------- Health Care 8.4 ------------------------------------------------------------------------- Consumer Staples 5.5 ------------------------------------------------------------------------- Materials 5.4 ------------------------------------------------------------------------- Energy 4.8 ------------------------------------------------------------------------- Telecommunication Services 3.7 ------------------------------------------------------------------------- Utilities 2.5 ------------------------------------------------------------------------- Money Market Funds Plus Other Assets Less Liabilities 9.6 _________________________________________________________________________ =========================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 7 AIM GLOBAL SMALL & MID CAP GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) ASSETS: Investments, at value (Cost $498,815,410) $458,029,396 -------------------------------------------------------------------------------- Investments in affiliated money market funds, at value and cost 46,256,298 ================================================================================ Total investments, at value (Cost $545,071,708) 504,285,694 ================================================================================ Foreign currencies, at value (Cost $4,497,219) 4,595,274 -------------------------------------------------------------------------------- Receivables for: Investments sold 3,858,517 -------------------------------------------------------------------------------- Fund shares sold 187,719 -------------------------------------------------------------------------------- Dividends 896,786 -------------------------------------------------------------------------------- Investment for trustee deferred compensation and retirement plans 42,484 -------------------------------------------------------------------------------- Other assets 32,475 ================================================================================ Total assets 513,898,949 ________________________________________________________________________________ ================================================================================ LIABILITIES: Payables for: Investments purchased 5,578,841 -------------------------------------------------------------------------------- Fund shares reacquired 539,207 -------------------------------------------------------------------------------- Accrued fees to affiliates 391,179 -------------------------------------------------------------------------------- Accrued other operating expenses 589,903 -------------------------------------------------------------------------------- Trustee deferred compensation and retirement plans 158,615 ================================================================================ Total liabilities 7,257,745 ================================================================================ Net assets applicable to shares outstanding $506,641,204 ________________________________________________________________________________ ================================================================================ NET ASSETS CONSIST OF: Shares of beneficial interest $632,138,902 -------------------------------------------------------------------------------- Undistributed net investment income 133,068 -------------------------------------------------------------------------------- Undistributed net realized gain (loss) (84,921,436) -------------------------------------------------------------------------------- Unrealized appreciation (depreciation) (40,709,330) ================================================================================ $506,641,204 ________________________________________________________________________________ ================================================================================ NET ASSETS: Class A $433,729,316 ________________________________________________________________________________ ================================================================================ Class B $ 35,431,275 ________________________________________________________________________________ ================================================================================ Class C $ 17,003,045 ________________________________________________________________________________ ================================================================================ Class Y $ 1,908,939 ________________________________________________________________________________ ================================================================================ Institutional Class $ 18,568,629 ________________________________________________________________________________ ================================================================================ SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES AUTHORIZED: Class A 36,966,640 ________________________________________________________________________________ ================================================================================ Class B 3,405,394 ________________________________________________________________________________ ================================================================================ Class C 1,633,295 ________________________________________________________________________________ ================================================================================ Class Y 162,393 ________________________________________________________________________________ ================================================================================ Institutional Class 1,585,560 ________________________________________________________________________________ ================================================================================ Class A: Net asset value per share $ 11.73 -------------------------------------------------------------------------------- Maximum offering price per share (Net asset value of $11.73 divided by 94.50%) $ 12.41 ________________________________________________________________________________ ================================================================================ Class B: Net asset value and offering price per share $ 10.40 ________________________________________________________________________________ ================================================================================ Class C: Net asset value and offering price per share $ 10.41 ________________________________________________________________________________ ================================================================================ Class Y: Net asset value and offering price per share $ 11.76 ________________________________________________________________________________ ================================================================================ Institutional Class: Net asset value and offering price per share $ 11.71 ________________________________________________________________________________ ================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 8 AIM GLOBAL SMALL & MID CAP GROWTH FUND STATEMENT OF OPERATIONS For the six months ended April 30, 2009 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding taxes of $367,875) $ 4,066,017 ------------------------------------------------------------------------------------------------ Dividends from affiliated money market funds 396,796 ================================================================================================ Total investment income 4,462,813 ================================================================================================ EXPENSES: Advisory fees 1,852,299 ------------------------------------------------------------------------------------------------ Administrative services fees 73,723 ------------------------------------------------------------------------------------------------ Custodian fees 62,045 ------------------------------------------------------------------------------------------------ Distribution fees: Class A 497,822 ------------------------------------------------------------------------------------------------ Class B 180,334 ------------------------------------------------------------------------------------------------ Class C 81,656 ------------------------------------------------------------------------------------------------ Transfer agent fees -- A, B, C and Y 1,140,198 ------------------------------------------------------------------------------------------------ Transfer agent fees -- Institutional 3,271 ------------------------------------------------------------------------------------------------ Trustees' and officers' fees and benefits 17,581 ------------------------------------------------------------------------------------------------ Other 288,422 ================================================================================================ Total expenses 4,197,351 ================================================================================================ Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (57,365) ================================================================================================ Net expenses 4,139,986 ================================================================================================ Net investment income 322,827 ================================================================================================ REALIZED AND UNREALIZED GAIN (LOSS) FROM: Net realized gain (loss) from: Investment securities (includes net gains from securities sold to affiliates of $3,978) (83,331,034) ------------------------------------------------------------------------------------------------ Foreign currencies (479,940) ================================================================================================ (83,810,974) ================================================================================================ Change in net unrealized appreciation of: Investment securities (net of foreign taxes on holdings of $(87,541)) 86,389,622 ------------------------------------------------------------------------------------------------ Foreign currencies 421,276 ================================================================================================ 86,810,898 ================================================================================================ Net realized and unrealized gain 2,999,924 ================================================================================================ Net increase in net assets resulting from operations $ 3,322,751 ________________________________________________________________________________________________ ================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 9 AIM GLOBAL SMALL & MID CAP GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2009 and the year ended October 31, 2008 (Unaudited)
APRIL 30, OCTOBER 31, 2009 2008 ---------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 322,827 $ 5,795,760 ---------------------------------------------------------------------------------------------------------- Net realized gain (loss) (83,810,974) 42,233,445 ---------------------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) 86,810,898 (622,072,159) ========================================================================================================== Net increase (decrease) in net assets resulting from operations 3,322,751 (574,042,954) ========================================================================================================== Distributions to shareholders from net investment income: Class A (5,471,181) (3,279,248) ---------------------------------------------------------------------------------------------------------- Class Y (19,418) -- ---------------------------------------------------------------------------------------------------------- Institutional Class (376,278) (38) ========================================================================================================== Total distributions from net investment income (5,866,877) (3,279,286) ========================================================================================================== Distributions to shareholders from net realized gains: Class A (36,796,855) (124,528,488) ---------------------------------------------------------------------------------------------------------- Class B (3,911,833) (18,165,019) ---------------------------------------------------------------------------------------------------------- Class C (1,722,323) (5,926,773) ---------------------------------------------------------------------------------------------------------- Class Y (127,804) -- ---------------------------------------------------------------------------------------------------------- Institutional Class (1,434,515) (1,295) ========================================================================================================== Total distributions from net realized gains (43,993,330) (148,621,575) ========================================================================================================== Share transactions-net: Class A 8,651,228 54,639,250 ---------------------------------------------------------------------------------------------------------- Class B (4,597,624) (19,773,676) ---------------------------------------------------------------------------------------------------------- Class C (899,087) 3,273,208 ---------------------------------------------------------------------------------------------------------- Class Y 373,799 1,887,143 ---------------------------------------------------------------------------------------------------------- Institutional Class 2,336,103 29,962,298 ========================================================================================================== Net increase in net assets resulting from share transactions 5,864,419 69,988,223 ========================================================================================================== Net increase (decrease) in net assets (40,673,037) (655,955,592) ========================================================================================================== NET ASSETS: Beginning of period 547,314,241 1,203,269,833 ========================================================================================================== End of period (includes undistributed net investment income of $133,068 and $5,677,118, respectively) $506,641,204 $ 547,314,241 __________________________________________________________________________________________________________ ==========================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 10 AIM GLOBAL SMALL & MID CAP GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 2009 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM Global Small & Mid Cap Growth Fund (the "Fund") is a series portfolio of AIM International Mutual Funds (the "Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end series management investment company consisting of six separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The Fund's investment objective is above-average long-term growth of capital. The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver shares may be subject to contingent deferred sales charges ("CDSC"). Class B shares and Class C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. 11 AIM GLOBAL SMALL & MID CAP GROWTH FUND B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment advisor may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. D. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. G. ACCOUNTING ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. I. REDEMPTION FEES -- The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. J. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. 12 AIM GLOBAL SMALL & MID CAP GROWTH FUND K. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES The Trust has entered into a master investment advisory agreement with Invesco Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Advisor based on the annual rate of the Fund's average daily net assets as follows:
AVERAGE NET ASSETS RATE ------------------------------------------------------------------- First $250 million 0.80% ------------------------------------------------------------------- Next $250 million 0.78% ------------------------------------------------------------------- Next $500 million 0.76% ------------------------------------------------------------------- Next $1.5 billion 0.74% ------------------------------------------------------------------- Next $2.5 billion 0.72% ------------------------------------------------------------------- Next $2.5 billion 0.70% ------------------------------------------------------------------- Next $2.5 billion 0.68% ------------------------------------------------------------------- Over $10 billion 0.66% ___________________________________________________________________ ===================================================================
Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Advisor and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-Advisor(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Advisor(s). The Advisor has contractually agreed, through at least June 30, 2009, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Advisor receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the six months ended April 30, 2009, the Advisor waived advisory fees of $40,629. At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the AIM Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended April 30, 2009, Invesco reimbursed expenses of the Fund in the amount of $1,282. The Trust has entered into a master administrative services agreement with Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees. The Trust has entered into a transfer agency and service agreement with Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has agreed to pay IAIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the course of providing such services. IAIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IAIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust's Board of Trustees. For the six months ended April 30, 2009, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees. The Trust has entered into master distribution agreements with Invesco Aim Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class B, Class C and Class Y shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A, Class B and Class C shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays IADI compensation at the annual rate of 0.25% of the Fund's average daily net assets of Class A shares and 1.00% of the average daily net assets of each class of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") impose a cap on the total sales charges, including asset- based sales charges that may be paid by any class of shares of the Fund. For the six months ended April 30, 2009, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees. Front-end sales commissions and CDSC (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2009, IADI advised the Fund that IADI retained $18,216 in front-end sales commissions from the sale of Class A shares and $1, $23,635 and $2,282 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. Certain officers and trustees of the Trust are officers and directors of Invesco Aim, IAIS and/or IADI. 13 AIM GLOBAL SMALL & MID CAP GROWTH FUND NOTE 3--SUPPLEMENTAL INFORMATION The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level: Level 1 -- Prices are determined using quoted prices in an active market for identical assets. Level 2 -- Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level 3 -- Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. The following is a summary of the tiered valuation input levels, as of the end of the reporting period, April 30, 2009. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
INVESTMENTS IN INPUT LEVEL SECURITIES -------------------------------------- Level 1 $319,091,453 -------------------------------------- Level 2 185,194,241 -------------------------------------- Level 3 -- ====================================== $504,285,694 ______________________________________ ======================================
NOTE 4--SECURITY TRANSACTIONS WITH AFFILIATED FUNDS The Fund is permitted to purchase or sell securities from or to certain other AIM Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment advisor (or affiliated investment advisors), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended April 30, 2009, the Fund engaged in securities sales of $10,355, which resulted in net realized gains of $3,978. NOTE 5--EXPENSE OFFSET ARRANGEMENTS The expense offset arrangements are comprised of (i) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (ii) custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended April 30, 2009, the Fund received credits from these arrangements, which resulted in the reduction of the Fund's total expenses of $15,454. NOTE 6--TRUSTEES' AND OFFICERS' FEES AND BENEFITS "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and "Trustees' and Officers' Fees and Benefits" also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various AIM Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund. During the six months ended April 30, 2009, the Fund paid legal fees of $2,661 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. NOTE 7--CASH BALANCES The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco Aim, not to exceed the contractually agreed upon rate. 14 AIM GLOBAL SMALL & MID CAP GROWTH FUND NOTE 8--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end. The Fund did not have a capital loss carryforward as of October 31, 2008. NOTE 9--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2009 was $114,398,360 and $133,866,614, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS ------------------------------------------------------------------------------------------------ Aggregate unrealized appreciation of investment securities $ 70,795,381 ------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (112,678,607) ================================================================================================ Net unrealized appreciation (depreciation) of investment securities $ (41,883,226) ________________________________________________________________________________________________ ================================================================================================ Cost of investments for tax purposes is $546,168,920.
15 AIM GLOBAL SMALL & MID CAP GROWTH FUND NOTE 10--SHARE INFORMATION
SUMMARY OF SHARE ACTIVITY ------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED APRIL 30, 2009(a) OCTOBER 31, 2008 --------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------- Sold: Class A 950,193 $ 10,192,202 3,396,688 $ 73,505,607 ------------------------------------------------------------------------------------------------------------------------- Class B 178,541 1,718,622 619,633 12,261,678 ------------------------------------------------------------------------------------------------------------------------- Class C 133,359 1,249,396 574,014 11,574,066 ------------------------------------------------------------------------------------------------------------------------- Class Y(b) 48,887 475,554 123,048 1,892,082 ------------------------------------------------------------------------------------------------------------------------- Institutional Class 138,280 1,482,828 1,431,392 31,168,520 ========================================================================================================================= Issued as reinvestment of dividends: Class A 3,902,477 40,468,692 5,040,494 121,173,499 ------------------------------------------------------------------------------------------------------------------------- Class B 410,407 3,783,956 768,768 16,528,499 ------------------------------------------------------------------------------------------------------------------------- Class C 179,525 1,657,017 224,268 4,821,771 ------------------------------------------------------------------------------------------------------------------------- Class Y 14,091 146,263 -- -- ------------------------------------------------------------------------------------------------------------------------- Institutional Class 175,464 1,810,793 56 1,333 ========================================================================================================================= Automatic conversion of Class B shares to Class A shares: Class A 529,251 5,635,257 1,373,312 28,439,129 ------------------------------------------------------------------------------------------------------------------------- Class B (596,021) (5,635,257) (1,539,739) (28,439,129) ========================================================================================================================= Reacquired:(c) Class A(b) (4,486,505) (47,644,923) (8,391,072) (168,478,985) ------------------------------------------------------------------------------------------------------------------------- Class B (472,315) (4,464,945) (1,082,487) (20,124,724) ------------------------------------------------------------------------------------------------------------------------- Class C (401,845) (3,805,500) (712,803) (13,122,629) ------------------------------------------------------------------------------------------------------------------------- Class Y (23,273) (248,018) (360) (4,939) ------------------------------------------------------------------------------------------------------------------------- Institutional Class (88,447) (957,518) (71,544) (1,207,555) ========================================================================================================================= Net increase in share activity 592,069 $ 5,864,419 1,753,668 $ 69,988,223 _________________________________________________________________________________________________________________________ =========================================================================================================================
(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 18% of the outstanding shares of the Fund. IADI has an agreement with these entities to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco Aim and/or Invesco Aim affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. (b) Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A into Class Y shares of the Fund:
CLASS SHARES AMOUNT ---------------------------------------------------------------------------------------------------- Class Y 122,242 $ 1,880,082 ---------------------------------------------------------------------------------------------------- Class A (122,242) (1,880,082) ____________________________________________________________________________________________________ ====================================================================================================
(c) Net of redemption fees of $8,562 and $22,457 allocated among the classes based on relative net assets of each class for the six months ended April 30, 2009 and the year ended October 31, 2008, respectively. 16 AIM GLOBAL SMALL & MID CAP GROWTH FUND NOTE 11--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
NET GAINS (LOSSES) NET ASSET NET ON SECURITIES DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT (BOTH TOTAL FROM FROM NET FROM NET BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL OF PERIOD (LOSS) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS ---------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $12.87 $ 0.01(d) $ 0.05 $ 0.06 $(0.15) $(1.05) $(1.20) Year ended 10/31/08 29.51 0.15(d) (13.09) (12.94) (0.10) (3.60) (3.70) Year ended 10/31/07 25.10 0.12 7.68 7.80 (0.04) (3.35) (3.39) Year ended 10/31/06 20.60 0.13(d) 5.39 5.52 (0.07) (0.95) (1.02) Year ended 10/31/05 16.99 (0.00)(d) 3.61 3.61 -- -- -- Year ended 10/31/04 14.28 (0.13)(d) 2.84 2.71 -- -- -- ---------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 11.43 (0.03)(d) 0.05 0.02 -- (1.05) (1.05) Year ended 10/31/08 26.73 (0.01)(d) (11.69) (11.70) -- (3.60) (3.60) Year ended 10/31/07 23.15 (0.07) 7.00 6.93 -- (3.35) (3.35) Year ended 10/31/06 19.18 (0.04)(d) 5.01 4.97 (0.05) (0.95) (1.00) Year ended 10/31/05 15.93 (0.12)(d) 3.37 3.25 -- -- -- Year ended 10/31/04 13.45 (0.19)(d) 2.67 2.48 -- -- -- ---------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 11.43 (0.03)(d) 0.06 0.03 -- (1.05) (1.05) Year ended 10/31/08 26.74 (0.01)(d) (11.70) (11.71) -- (3.60) (3.60) Year ended 10/31/07 23.16 (0.07) 7.00 6.93 -- (3.35) (3.35) Year ended 10/31/06 19.19 (0.04)(d) 5.01 4.97 (0.05) (0.95) (1.00) Year ended 10/31/05 15.93 (0.12)(d) 3.38 3.26 -- -- -- Year ended 10/31/04 13.46 (0.19)(d) 2.66 2.47 -- -- -- ---------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 12.87 0.02(d) 0.08 0.10 (0.16) (1.05) (1.21) Year ended 10/31/08(f) 15.38 0.01(d) (2.52) (2.51) -- -- -- ---------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL CLASS Six months ended 04/30/09 12.93 0.05(d) 0.05 0.10 (0.27) (1.05) (1.32) Year ended 10/31/08 29.53 0.23(d) (13.12) (12.89) (0.11) (3.60) (3.71) Year ended 10/31/07(f) 27.82 0.02 1.69 1.71 -- -- -- ______________________________________________________________________________________________________________________ ====================================================================================================================== RATIO OF RATIO OF EXPENSES EXPENSES TO AVERAGE TO AVERAGE NET RATIO OF NET NET ASSETS ASSETS WITHOUT INVESTMENT NET ASSET NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME (LOSS) VALUE, END TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO OF PERIOD(a) RETURN(b) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(c) --------------------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $11.73 1.71% $ 433,729 1.72%(e) 1.74%(e) 0.19%(e) 27% Year ended 10/31/08 12.87 (49.68) 464,060 1.45 1.46 0.70 74 Year ended 10/31/07 29.51 34.57 1,022,682 1.42 1.50 0.47 43 Year ended 10/31/06 25.10 27.71 809,309 1.51 1.64 0.56 64 Year ended 10/31/05 20.60 21.25 676,291 1.65 1.76 (0.02) 67 Year ended 10/31/04 16.99 18.98 566,573 2.02 2.03 (0.81) 68 --------------------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 10.40 1.32 35,431 2.47(e) 2.49(e) (0.56)(e) 27 Year ended 10/31/08 11.43 (50.07) 44,392 2.20 2.21 (0.05) 74 Year ended 10/31/07 26.73 33.58 136,818 2.17 2.25 (0.28) 43 Year ended 10/31/06 23.15 26.80 132,391 2.26 2.39 (0.19) 64 Year ended 10/31/05 19.18 20.40 152,878 2.31 2.42 (0.68) 67 Year ended 10/31/04 15.93 18.44 257,230 2.52 2.53 (1.31) 68 --------------------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 10.41 1.40 17,003 2.47(e) 2.49(e) (0.56)(e) 27 Year ended 10/31/08 11.43 (50.09) 19,690 2.20 2.21 (0.05) 74 Year ended 10/31/07 26.74 33.56 43,760 2.17 2.25 (0.28) 43 Year ended 10/31/06 23.16 26.79 28,619 2.26 2.39 (0.19) 64 Year ended 10/31/05 19.19 20.47 22,488 2.31 2.42 (0.68) 67 Year ended 10/31/04 15.93 18.35 21,059 2.52 2.53 (1.31) 68 --------------------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 11.76 1.99 1,909 1.47(e) 1.49(e) 0.44(e) 27 Year ended 10/31/08(f) 12.87 (16.32) 1,580 1.24(g) 1.26(g) 0.91(g) 74 --------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL CLASS Six months ended 04/30/09 11.71 2.16 18,569 1.00(e) 1.02(e) 0.91(e) 27 Year ended 10/31/08 12.93 (49.46) 17,593 0.93 0.94 1.22 74 Year ended 10/31/07(f) 29.53 6.15 11 1.00(g) 1.00(g) 0.90(g) 43 _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. (c) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. (d) Calculated using average shares outstanding. (e) Ratios are annualized and based on average daily net assets (000's omitted) of $401,558, $36,366, $16,466, $1,474 and $16,610 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively. (f) Commencement date of October 3, 2008 and September 28, 2007 for Class Y and Institutional Class shares, respectively. (g) Annualized. 17 AIM GLOBAL SMALL & MID CAP GROWTH FUND NOTE 12--LEGAL PROCEEDINGS Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note. SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING On May 23, 2008, the Securities and Exchange Commission ("SEC") publicly posted its final approval of the Distribution Plans ("Distribution Plans") for the distribution of monies placed into two separate Fair Funds created pursuant to a settlement reached on October 8, 2004 between Invesco Funds Group, Inc. ("IFG"), Invesco Aim Advisors, Inc. ("Invesco Aim") and Invesco Aim Distributors, Inc. ("IADI") and the SEC (the "Order"). One of the Fair Funds consists of $325 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds formerly advised by IFG who may have been harmed by market timing and related activity. The second Fair Fund consists of $50 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds advised by Invesco Aim who may have been harmed by market timing and related activity. The Distribution Plans provide for the distribution to all eligible investors to compensate such investors for injury they may have suffered as a result of market timing in the affected funds. The Distribution Plans include a provision for any residual amounts in the Fair Funds to be distributed in the future to the affected funds. At this time, management of Invesco Aim and the Fund are unable to estimate the residual distribution to the Fund, if any. At the request of the trustees of the AIM Funds, Invesco Ltd. ("Invesco"), the parent company of IFG and Invesco Aim, has agreed to reimburse expenses incurred by the AIM Funds related to market timing matters. PENDING LITIGATION AND REGULATORY INQUIRIES Civil lawsuits, including purported class action and shareholder derivative suits, have been filed against certain of the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals alleging that the defendants permitted improper market timing and related activity in the AIM Funds. These lawsuits allege as theories of recovery, depending on the lawsuit, violations of various provisions of the Federal and state securities laws and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), negligence, breach of fiduciary duty and/or breach of contract. These lawsuits seek remedies that include, depending on the lawsuit, damages, restitution, injunctive relief, imposition of a constructive trust, removal of certain directors and/or employees, various corrective measures under ERISA, rescission of certain AIM Funds' advisory agreements and/or distribution plans and recovery of all fees paid. All lawsuits based on allegations of market timing, late trading and related issues were transferred to the United States District Court for the District of Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in these lawsuits consolidated their claims for pre-trial purposes into three amended complaints against various Invesco Aim- and IFG-related parties: (i) a Consolidated Amended Class Action Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly brought on behalf of participants in the Invesco 401(k) plan. Based on orders issued by the MDL Court, all claims asserted against the AIM Funds that have been transferred to the MDL Court have been dismissed, although certain Funds remain nominal defendants in the Consolidated Amended Fund Derivative Complaint. On January 5, 2008, the parties reached an agreement in principle to settle both the Consolidated Amended Class Action Complaint and Consolidated Amended Fund Derivative Complaint, subject to the MDL Court approval. Individual class members have the right to object. On December 15, 2008, the parties reached an agreement in principle to settle the Amended Class Action Complaint for Violations of ERISA, subject to the MDL Court approval. Individual class members have the right to object. No payments are required under the settlement; however, the parties agreed that certain limited changes to benefit plans and participants' accounts would be made. IFG, Invesco Aim, IADI and/or related entities and individuals have received inquiries from numerous regulators in the form of subpoenas or other oral or written requests for information and/or documents related to one or more of the following issues, among others, some of which concern one or more AIM Funds: market timing activity, late trading, fair value pricing, excessive or improper advisory and/or distribution fees, mutual fund sales practices, including revenue sharing and directed-brokerage arrangements, investments in securities of other registered investment companies, contractual plans, issues related to Section 529 college savings plans and procedures for locating lost security holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing full cooperation with respect to these inquiries. Regulatory actions and/or additional civil lawsuits related to these or other issues may be filed against the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in the future. 18 AIM GLOBAL SMALL & MID CAP GROWTH FUND CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
--------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO --------------------------------------------------------------------------------------------------- A $1,000.00 $1,017.10 $ 8.60 $1,016.27 $ 8.60 1.72% --------------------------------------------------------------------------------------------------- B 1,000.00 1,013.20 12.33 1,012.55 12.33 2.47 --------------------------------------------------------------------------------------------------- C 1,000.00 1,013.10 12.33 1,012.55 12.33 2.47 --------------------------------------------------------------------------------------------------- Y 1,000.00 1,019.10 7.36 1,017.50 7.35 1.47 ---------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. 19 AIM GLOBAL SMALL & MID CAP GROWTH FUND Supplement to Semiannual Report dated 4/30/09 AIM GLOBAL SMALL & MID CAP GROWTH FUND ========================================== INSTITUTIONAL CLASS SHARES AVERAGE ANNUAL TOTAL RETURNS expense ratio set forth in the most recent For periods ended 4/30/09 Fund prospectus as of the date of this The following information has been supplement for Institutional Class shares prepared to provide Institutional Class 10 Years 2.90% was 0.95%. The expense ratios presented shareholders with a performance overview 5 Years 2.72 above may vary from the expense ratios specific to their holdings. Institutional 1 Year -39.69 presented in other sections of the actual Class shares are offered exclusively to 6 Months* 2.08 report that are based on expenses incurred institutional investors, including defined ========================================== during the period covered by the report. contribution plans that meet certain criteria. ========================================== A redemption fee of 2% will be imposed AVERAGE ANNUAL TOTAL RETURNS on certain redemptions or exchanges out of For periods ended 3/31/09, most recent the Fund within 31 days of purchase. calendar quarter-end Exceptions to the redemption fee are listed in the Fund's prospectus. 10 Years 1.97% 5 Years -0.53 Please note that past performance is 1 Year -44.89 not indicative of future results. More 6 Months* -30.30 recent returns may be more or less than those shown. All returns assume * Cumulative total return that has not reinvestment of distributions at NAV. been annualized Investment return and principal value will ========================================== fluctuate so your shares, when redeemed, may be worth more or less than their Institutional Class shares' inception date original cost. See full report for is September 28,2007. Returns since that information on comparative benchmarks. date are historical returns. All other Please consult your Fund prospectus for returns are blended returns of historical more information. For the most current Institutional Class share performance and month-end performance, please call 800 restated Class A share performance (for 4514246 or visit invescoaim.com. periods prior to the inception date of Institutional Class shares) at net asset (1) Total annual operating expenses less value (NAV) and reflect the Rule 12b-1 any contractual fee waivers and/or fees applicable to Class A shares. Class A expense reimbursements by the advisor shares' inception date is September in effect through at least June 15,1994. 30,2009. See current prospectus for more information. Institutional Class shares have no sales charge; therefore, performance is at NAV. Performance of Institutional Class shares will differ from performance of other share classes primarily due to differing sales charges and class expenses. The net Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this supplement for Institutional Class shares was 0.94%.(1) The total annual Fund operating Over for information on your Fund's expenses. THIS SUPPLEMENT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. FOR INSTITUTIONAL INVESTOR USE ONLY This material is for institutional investor use only and may not be quoted, reproduced or shown to the public, nor used in written form as sales literature for public use. [INVESCO AIM LOGO] invescoaim.com GSMG-INS-2 Invesco Aim Distributors, Inc. --SERVICE MARK--
CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
----------------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO ----------------------------------------------------------------------------------------------------------- Institutional $1,000.00 $1,020.80 $5.01 $1,019.84 $5.01 1.00% -----------------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. AIM GLOBAL SMALL & MID CAP GROWTH FUND [GO PAPERLESS GRAPHIC] ==================================================================================================================================== GO PAPERLESS WITH EDELIVERY Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all about eeees: o ENVIRONMENTALLY FRIENDLY. Go green by reducing the number of o EFFICIENT. Stop waiting for regular mail. Your documents will trees used to produce paper. be sent via email as soon as they're available. o ECONOMICAL. Help reduce your fund's printing and delivery o EASY. Download, save and print files using your home computer expenses and put more capital back in your fund's returns. with a few clicks of your mouse. This service is provided by Invesco Aim Investment Services, Inc. ==================================================================================================================================== FUND HOLDINGS AND PROXY VOTING INFORMATION The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-06463 and 033-44611. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov. If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim Quarterly Performance Review for the most recent quarter-end. Invesco Aim --SERVICE MARK-- is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco Power Shares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund's prospectus for information on the fund's sub advisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, [INVESCO AIM LOGO] Inc., Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco --SERVICE MARK-- Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com on or about the end of the fourth quarter of 2009. invescoaim.com GSMG-SAR-1 Invesco Aim Distributors, Inc.
[INVESCO AIM LOGO] AIM INTERNATIONAL CORE EQUITY FUND --SERVICE MARK-- Semiannual Report to Shareholders o April 30, 2009 [MOUNTAIN GRAPHIC] Fund Performance 2 Letters to Shareholders 4 Schedule of Investments 5 Financial Statements 8 Notes to Financial Statements 11 Financial Highlights 17 Fund Expenses 19
For the most current month-end Fund performance and commentary, please visit invescoaim.com. Unless otherwise noted, all data provided by Invesco Aim. THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE FUND PERFORMANCE ======================================================================================= PERFORMANCE SUMMARY FUND VS. INDEXES Cumulative total returns, 10/31/08 to 4/30/09, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. Class A Shares -2.71% Class B Shares -3.19 Class C Shares -3.15 Class R Shares -2.87 Class Y Shares -2.54 Investor Class Shares -2.68 MSCI EAFE Index(Triangle) (Broad Market/Style-Specific Index) -2.64 Lipper International Large-Cap Core Funds Index(Triangle) (Peer Group Index) -4.55 (Triangle) Lipper Inc. The MSCI EAFE --REGISTERED TRADEMARK-- INDEX is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The LIPPER INTERNATIONAL LARGE-CAP CORE FUNDS INDEX is an equally weighted representation of the largest funds in the Lipper International Large-Cap Core Funds category. These funds typically have an average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P/Citigroup World ex-U.S. BMI. The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group reflects fund expenses; performance of a market index does not. =======================================================================================
2 AIM INTERNATIONAL CORE EQUITY FUND ========================================== ========================================== AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS As of 4/30/09, including maximum As of 3/31/09, the most recent calendar applicable sales charges quarter-end, including maximum applicable sales charges CLASS A SHARES Inception (3/28/02) 0.97% CLASS A SHARES 5 Years -0.53 Inception (3/28/02) -0.73% 1 Year -42.30 5 Years -3.22 1 Year -45.37 CLASS B SHARES Inception (3/28/02) 1.14% CLASS B SHARES 5 Years -0.46 Inception (3/28/02) -0.55% 1 Year -42.35 5 Years -3.16 1 Year -45.44 CLASS C SHARES Inception (2/14/00) -1.58% CLASS C SHARES 5 Years -0.12 Inception (2/14/00) -2.88% 1 Year -39.98 5 Years -2.83 1 Year -43.21 CLASS R SHARES Inception (11/24/03) 2.18% CLASS R SHARES 5 Years 0.39 Inception (11/24/03) -0.07% 1 Year -39.04 5 Years -2.34 1 Year -42.35 CLASS Y SHARES 10 Years 0.92% CLASS Y SHARES 5 Years 0.68 10 Years -0.09% 1 Year -38.82 5 Years -2.08 1 Year -42.09 INVESTOR CLASS SHARES Inception (10/28/98) 1.41% INVESTOR CLASS SHARES 10 Years 0.90 Inception (10/28/98) 0.26% 5 Years 0.65 10 Years -0.10 1 Year -38.91 5 Years -2.11 1 Year -42.18 ========================================== ========================================== CLASS Y SHARES' INCEPTION DATE IS OCTOBER RETURN AND PRINCIPAL VALUE WILL FLUCTUATE VALUE AND DO NOT REFLECT A 0.75% CDSC THAT 3, 2008; RETURNS SINCE THAT DATE ARE SO THAT YOU MAY HAVE A GAIN OR LOSS WHEN MAY BE IMPOSED ON A TOTAL REDEMPTION OF ACTUAL RETURNS. ALL OTHER RETURNS ARE YOU SELL SHARES. RETIREMENT PLAN ASSETS WITHIN THE FIRST BLENDED RETURNS OF ACTUAL CLASS Y SHARE YEAR. CLASS Y SHARES AND INVESTOR CLASS PERFORMANCE AND RESTATED INVESTOR CLASS THE TOTAL ANNUAL FUND OPERATING EXPENSE SHARES DO NOT HAVE A FRONT-END SALES SHARE PERFORMANCE (FOR PERIODS PRIOR TO RATIO SET FORTH IN THE MOST RECENT FUND CHARGE OR A CDSC; THEREFORE, PERFORMANCE THE INCEPTION DATE OF CLASS Y SHARES) AT PROSPECTUS AS OF THE DATE OF THIS REPORT IS AT NET ASSET VALUE. NET ASSET VALUE. THE RESTATED INVESTOR FOR CLASS A, CLASS B, CLASS C, CLASS R, CLASS SHARE PERFORMANCE REFLECTS THE RULE CLASS Y AND INVESTOR CLASS SHARES WAS THE PERFORMANCE OF THE FUND'S SHARE 12B-1 FEES APPLICABLE TO INVESTOR CLASS 1.45%, 2.20%, 2.20%, 1.70%, 1.20% AND CLASSES WILL DIFFER PRIMARILY DUE TO SHARES AS WELL AS ANY FEE WAIVERS OR 1.45%, RESPECTIVELY. THE EXPENSE RATIOS DIFFERENT SALES CHARGE STRUCTURES AND EXPENSE REIMBURSEMENTS RECEIVED BY PRESENTED ABOVE MAY VARY FROM THE EXPENSE CLASS EXPENSES. INVESTOR CLASS SHARES. INVESTOR CLASS RATIOS PRESENTED IN OTHER SECTIONS OF THIS SHARES' INCEPTION DATE IS OCTOBER 28, REPORT THAT ARE BASED ON EXPENSES INCURRED HAD THE ADVISOR NOT WAIVED FEES AND/OR 1998. DURING THE PERIOD COVERED BY THIS REPORT. REIMBURSED EXPENSES IN THE PAST ON CLASS C SHARES, PERFORMANCE WOULD HAVE BEEN LOWER. THE PERFORMANCE DATA QUOTED REPRESENT CLASS A SHARE PERFORMANCE REFLECTS THE PAST PERFORMANCE AND CANNOT GUARANTEE MAXIMUM 5.50% SALES CHARGE, AND CLASS B A REDEMPTION FEE OF 2% WILL BE IMPOSED COMPARABLE FUTURE RESULTS; CURRENT AND CLASS C SHARE PERFORMANCE REFLECTS THE ON CERTAIN REDEMPTIONS OR EXCHANGES OUT OF PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE APPLICABLE CONTINGENT DEFERRED SALES THE FUND WITHIN 31 DAYS OF PURCHASE. VISIT INVESCOAIM.COM FOR THE MOST RECENT CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE EXCEPTIONS TO THE REDEMPTION FEE ARE MONTH-END PERFORMANCE. PERFORMANCE FIGURES CDSC ON CLASS B SHARES DECLINES FROM 5% LISTED IN THE FUND'S PROSPECTUS. REFLECT REINVESTED DISTRIBUTIONS, CHANGES BEGINNING AT THE TIME OF PURCHASE TO 0% AT IN NET ASSET VALUE AND THE EFFECT OF THE THE BEGINNING OF THE SEVENTH YEAR. THE MAXIMUM SALES CHARGE UNLESS OTHERWISE CDSC ON CLASS C SHARES IS 1% FOR THE FIRST STATED. PERFORMANCE FIGURES DO NOT REFLECT YEAR AFTER PURCHASE. CLASS R SHARES DO NOT DEDUCTION OF TAXES A SHAREHOLDER WOULD PAY HAVE A FRONT-END SALES CHARGE; RETURNS ON FUND DISTRIBUTIONS OR SALE OF FUND SHOWN ARE AT NET ASSET SHARES. INVESTMENT
3 AIM INTERNATIONAL CORE EQUITY FUND Dear Fellow Shareholders: Since my last letter, continuing troubles in the global economy and financial markets have negatively affected all investors. However, mutual funds generally are more diversified than other investments; as shareholders we invest not in a single security but in a portfolio of multiple securities. Mutual fund [CROCKETT PHOTO] investors also have the opportunity to diversify further among different types of funds that each deploy a different strategy and focus on different kinds of securities. To develop a diversified and disciplined investing plan that is right for you, I encourage you to consult an investment professional who has the Bruce Crockett knowledge and the tools to help you establish, implement, and monitor the plan. You may also visit the Invesco Aim website at invescoaim.com to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by Corporate Insight. As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring investment performance and streamlining the investment management process. Your Board has already begun the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most cost-effective ways for you to invest your hard-earned money. Please feel free to contact me in writing with your questions or concerns. You can send an email to me at bruce@brucecrockett.com. Sincerely, /s/ BRUCE L. CROCKETT Bruce L. Crockett Independent Chair, AIM Funds Board of Trustees Dear Shareholders: The past year was difficult to say the least for virtually all investors. Market indexes in the U.S. and around the globe declined sharply in 2008, and "market experts" remain divided on the markets' outlook. [TAYLOR PHOTO] Recent history should have reminded all of us that investor sentiment can be fickle. This is why we believe investors should work with their financial advisors to devise a goals-based financial strategy - a long-term plan with a reasonable prospect of achieving predetermined financial goals in line with individual Philip Taylor risk tolerance. Such a strategy cannot guarantee a profit or protect against loss in a declining market, but it may help investors avoid emotion-driven, short-term investment mistakes. None of us can control the markets, but we can control our own reaction to the unsettling volatility we're experiencing. Your financial advisor can work with you to create a specific, concrete investment plan consistent with your financial goals and risk tolerance - a long-term plan guided by logic, not emotion. Invesco Aim has worked on behalf of investors in both bull markets and bear markets. We're focused on doing one thing well: managing your money. If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246. I invite you to visit invescoaim.com, where you can check on your individual account and obtain long-term performance information for your fund. By clicking on the "more" link next to the "Investment Perspective" headline at the top of the page, you can also read my detailed market updates and my interview with Invesco's chief economist - as well as other market and fund commentaries by Invesco's investment professionals. As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind. Thank you for investing with us. All of us at Invesco Aim look forward to serving you. Sincerely, /s/ PHILIP TAYLOR Philip Taylor Senior Managing Director, Invesco Ltd. CEO, Invesco Aim
4 AIM INTERNATIONAL CORE EQUITY FUND SCHEDULE OF INVESTMENTS(a) April 30, 2009 (Unaudited)
SHARES VALUE ------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS-97.86% AUSTRALIA-2.19% BHP Billiton Ltd. 250,828 $ 6,037,984 =============================================================================== BRAZIL-0.70% Companhia Energetica de Minas Gerais S.A.-ADR 32,459 488,508 ------------------------------------------------------------------------------- Companhia Vale do Rio Doce-ADR 23,702 391,320 ------------------------------------------------------------------------------- Empresa Brasileira de Aeronautica S.A.-ADR 16,463 267,030 ------------------------------------------------------------------------------- Natura Cosmeticos S.A. 21,700 258,144 ------------------------------------------------------------------------------- Petroleo Brasileiro S.A.-ADR 15,688 526,646 =============================================================================== 1,931,648 =============================================================================== CANADA-1.08% EnCana Corp. 65,133 2,972,799 =============================================================================== CHINA-0.65% China Construction Bank Corp.-Class H 735,000 425,127 ------------------------------------------------------------------------------- China COSCO Holdings Co. Ltd.-Class H 384,000 311,406 ------------------------------------------------------------------------------- CNOOC Ltd. 649,800 723,732 ------------------------------------------------------------------------------- Soho China Ltd. 663,000 318,818 =============================================================================== 1,779,083 =============================================================================== EGYPT-0.12% Orascom Telecom Holding S.A.E.-GDR 11,523 318,282 =============================================================================== FINLAND-2.13% Nokia Oyj(b) 412,554 5,878,809 =============================================================================== FRANCE-10.35% Credit Agricole S.A. 246,079 3,568,857 ------------------------------------------------------------------------------- Publicis Groupe(b) 160,197 4,912,096 ------------------------------------------------------------------------------- Sanofi-Aventis S.A. 136,002 7,826,400 ------------------------------------------------------------------------------- Societe Generale-ADR 313,715 3,181,070 ------------------------------------------------------------------------------- Total S.A.-ADR 119,430 5,938,060 ------------------------------------------------------------------------------- Unibail-Rodamco-REIT(b) 20,814 3,090,381 =============================================================================== 28,516,864 =============================================================================== GERMANY-6.89% BASF S.E.(b) 141,333 5,312,612 ------------------------------------------------------------------------------- Bayerische Motoren Werke AG(b) 116,560 4,026,501 ------------------------------------------------------------------------------- E.ON AG 204,861 6,917,925 ------------------------------------------------------------------------------- Muenchener Rueckversicherungs-Gesellschaft AG(b) 19,643 2,710,777 =============================================================================== 18,967,815 =============================================================================== HONG KONG-4.57% Cheung Kong (Holdings) Ltd. 317,000 3,274,096 ------------------------------------------------------------------------------- Denway Motors Ltd. 1,484,000 621,984 ------------------------------------------------------------------------------- Esprit Holdings Ltd. 729,600 4,472,135 ------------------------------------------------------------------------------- Hutchison Whampoa Ltd. 716,100 4,203,883 =============================================================================== 12,572,098 =============================================================================== INDIA-0.42% Mahindra & Mahindra Ltd. 37,262 364,705 ------------------------------------------------------------------------------- Reliance Communications Ltd. 65,691 292,066 ------------------------------------------------------------------------------- State Bank of India-GDR 8,915 491,754 =============================================================================== 1,148,525 =============================================================================== INDONESIA-0.40% PT Astra International Tbk 349,500 589,678 ------------------------------------------------------------------------------- PT Telekomunikasi Indonesia 710,500 524,934 =============================================================================== 1,114,612 =============================================================================== ISRAEL-0.15% Makhteshim-Agan Industries Ltd. 90,563 399,410 =============================================================================== ITALY-2.05% Eni S.p.A-ADR 132,367 5,650,747 =============================================================================== JAPAN-23.61% Canon Inc. 180,800 5,453,164 ------------------------------------------------------------------------------- East Japan Railway Co. 31,700 1,787,410 ------------------------------------------------------------------------------- FUJIFILM Holdings Corp. 244,200 6,274,132 ------------------------------------------------------------------------------- Mitsubishi Corp. 181,000 2,782,433 ------------------------------------------------------------------------------- Mitsubishi UFJ Financial Group, Inc. 1,232,100 6,711,393 ------------------------------------------------------------------------------- Murata Manufacturing Co., Ltd.(b) 95,100 3,816,051 ------------------------------------------------------------------------------- Nippon Telegraph and Telephone Corp. 90,900 3,407,611 ------------------------------------------------------------------------------- Nissan Motor Co., Ltd. 829,600 4,314,642 ------------------------------------------------------------------------------- NOK Corp.(b) 224,400 2,594,285 ------------------------------------------------------------------------------- NTT DoCoMo, Inc. 2,479 3,454,296 ------------------------------------------------------------------------------- Seven & I Holdings Co., Ltd. 121,200 2,734,782 ------------------------------------------------------------------------------- SMC Corp. 23,900 2,319,436 ------------------------------------------------------------------------------- Sony Corp.-ADR 152,559 3,945,176 ------------------------------------------------------------------------------- Sumitomo Chemical Co., Ltd. 1,190,000 4,663,315 ------------------------------------------------------------------------------- Takeda Pharmaceutical Co. Ltd. 85,700 3,041,858 ------------------------------------------------------------------------------- Tokyo Electron Ltd.(b) 98,800 4,503,738 ------------------------------------------------------------------------------- Toyota Motor Corp. 82,000 3,210,402 =============================================================================== 65,014,124 =============================================================================== MEXICO-0.41% America Movil S.A.B de C.V.-Series L 232,500 380,044 ------------------------------------------------------------------------------- Cemex S.A.B. de C.V.-CPO(c) 266,600 197,030 -------------------------------------------------------------------------------
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 5 AIM INTERNATIONAL CORE EQUITY FUND
SHARES VALUE ------------------------------------------------------------------------------- MEXICO-(CONTINUED) Fomento Economico Mexicano, S.A.B. de C.V.-ADR 6,519 $ 184,553 ------------------------------------------------------------------------------- Grupo Financiero Banorte S.A.B. de C.V.-Class O 236,900 365,609 =============================================================================== 1,127,236 =============================================================================== NETHERLANDS-8.59% Heineken N.V.(b) 269,319 8,007,573 ------------------------------------------------------------------------------- Koninklijke (Royal) Philips Electronics N.V. 247,659 4,464,625 ------------------------------------------------------------------------------- TNT N.V. 307,960 5,671,995 ------------------------------------------------------------------------------- Unilever N.V. 279,199 5,520,148 =============================================================================== 23,664,341 =============================================================================== NORWAY-0.92% StatoilHydro A.S.A. 136,050 2,547,523 =============================================================================== RUSSIA-0.34% Gazprom-ADR 22,670 398,308 ------------------------------------------------------------------------------- LUKOIL-ADR 12,055 531,867 =============================================================================== 930,175 =============================================================================== SOUTH AFRICA-0.53% Barloworld Ltd. 69,822 295,144 ------------------------------------------------------------------------------- Sasol Ltd. 10,654 322,460 ------------------------------------------------------------------------------- Standard Bank Group Ltd. 46,651 451,029 ------------------------------------------------------------------------------- Steinhoff International Holdings Ltd.(d) 321,135 385,280 =============================================================================== 1,453,913 =============================================================================== SOUTH KOREA-0.94% Daelim Industrial Co., Ltd. 7,716 373,356 ------------------------------------------------------------------------------- Hyundai Mobis 5,689 434,173 ------------------------------------------------------------------------------- LG Electronics Inc. 2,700 222,311 ------------------------------------------------------------------------------- Lotte Shopping Co., Ltd. 2,030 353,662 ------------------------------------------------------------------------------- POSCO 1,985 614,244 ------------------------------------------------------------------------------- Samsung Electronics Co., Ltd. 1,291 595,715 =============================================================================== 2,593,461 =============================================================================== SPAIN-3.42% Banco Santander S.A.(b) 693,138 6,542,384 ------------------------------------------------------------------------------- Repsol YPF, S.A.-ADR(b) 152,797 2,878,695 =============================================================================== 9,421,079 =============================================================================== SWEDEN-1.38% Telefonaktiebolaget LM Ericsson-Class B(b) 439,064 3,786,893 =============================================================================== SWITZERLAND-7.86% Credit Suisse Group AG(b) 75,986 2,903,513 ------------------------------------------------------------------------------- Holcim Ltd.(b) 85,356 4,315,018 ------------------------------------------------------------------------------- Novartis AG 56,702 2,141,232 ------------------------------------------------------------------------------- Swisscom AG(b) 20,822 5,419,448 ------------------------------------------------------------------------------- Zurich Financial Services AG(b) 37,169 6,863,827 =============================================================================== 21,643,038 =============================================================================== TAIWAN-0.40% AU Optronics Corp.-ADR(b) 40,234 436,539 ------------------------------------------------------------------------------- HTC Corp. 49,300 667,727 =============================================================================== 1,104,266 =============================================================================== THAILAND-0.32% Bangkok Bank PCL-NVDR 88,600 212,181 ------------------------------------------------------------------------------- Banpu PCL 30,700 244,317 ------------------------------------------------------------------------------- Banpu PCL-NVDR 11,400 90,501 ------------------------------------------------------------------------------- PTT PCL 60,700 323,854 =============================================================================== 870,853 =============================================================================== TURKEY-0.18% Tupras-Turkiye Petrol Rafinerileri A.S. 24,160 239,867 ------------------------------------------------------------------------------- Turkiye Is Bankasi-Class C 91,093 260,882 =============================================================================== 500,749 =============================================================================== UNITED KINGDOM-17.26% AstraZeneca PLC 70,833 2,482,745 ------------------------------------------------------------------------------- BAE Systems PLC 749,283 3,939,576 ------------------------------------------------------------------------------- BP PLC 675,199 4,785,578 ------------------------------------------------------------------------------- Centrica PLC 1,328,701 4,452,848 ------------------------------------------------------------------------------- GlaxoSmithKline PLC 353,432 5,455,214 ------------------------------------------------------------------------------- HSBC Holdings PLC-ADR(b) 138,778 4,940,497 ------------------------------------------------------------------------------- Imperial Tobacco Group PLC 183,227 4,187,278 ------------------------------------------------------------------------------- National Grid PLC 610,125 5,092,742 ------------------------------------------------------------------------------- Royal Dutch Shell PLC-ADR 124,231 5,674,872 ------------------------------------------------------------------------------- Vodafone Group PLC 3,559,421 6,534,951 =============================================================================== 47,546,301 =============================================================================== Total Common Stocks & Other Equity Interests (Cost $326,122,401) 269,492,628 =============================================================================== PREFERRED STOCKS-0.09% BRAZIL-0.09% Banco Bradesco S.A.-Pfd. (Cost $273,549) 20,596 256,319 =============================================================================== MONEY MARKET FUNDS-1.09% Liquid Assets Portfolio-Institutional Class(e) 1,500,184 1,500,184 ------------------------------------------------------------------------------- Premier Portfolio-Institutional Class(e) 1,500,185 1,500,185 =============================================================================== Total Money Market Funds (Cost $3,000,369) 3,000,369 =============================================================================== TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)-99.04% (Cost $329,396,319) 272,749,316 ===============================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 6 AIM INTERNATIONAL CORE EQUITY FUND
SHARES VALUE ------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES ON LOAN MONEY MARKET FUNDS-18.20% Liquid Assets Portfolio-Institutional Class (Cost $50,134,759)(e)(f) 50,134,759 $ 50,134,759 =============================================================================== TOTAL INVESTMENTS-117.24% (Cost $379,531,078) 322,884,075 =============================================================================== OTHER ASSETS LESS LIABILITIES-(17.24)% (47,487,956) =============================================================================== NET ASSETS-100.00% $275,396,119 _______________________________________________________________________________ ===============================================================================
Investment Abbreviations: ADR - American Depositary Receipt CPO - Certificates of Ordinary Participation GDR - Global Depositary Receipt NVDR - Non-Voting Depositary Receipt Pfd. - Preferred REIT - Real Estate Investment Trust
Notes to Schedule of Investments: (a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor's. (b) All or a portion of this security was out on loan at April 30, 2009. (c) Each unit represents two Series A shares and one Series B share. (d) Non-income producing security. (e) The money market fund and the Fund are affiliated by having the same investment advisor. (f) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 1J. PORTFOLIO COMPOSITION By sector, based on Net Assets as of April 30, 2009 ------------------------------------------------------------------------- Financials 16.9% ------------------------------------------------------------------------- Energy 12.3 ------------------------------------------------------------------------- Information Technology 11.4 ------------------------------------------------------------------------- Consumer Discretionary 11.1 ------------------------------------------------------------------------- Industrials 9.6 ------------------------------------------------------------------------- Materials 8.0 ------------------------------------------------------------------------- Consumer Staples 7.6 ------------------------------------------------------------------------- Health Care 7.6 ------------------------------------------------------------------------- Telecommunication Services 7.4 ------------------------------------------------------------------------- Utilities 6.1 ------------------------------------------------------------------------- Money Market Funds Plus Other Assets Less Liabilities 2.0 _________________________________________________________________________ =========================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 7 AIM INTERNATIONAL CORE EQUITY FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) ASSETS: Investments, at value (Cost $326,395,950)* $269,748,947 -------------------------------------------------------------------------------- Investments in affiliated money market funds, at value and cost 53,135,128 ================================================================================ Total investments, at value (Cost $379,531,078) 322,884,075 ================================================================================ Foreign currencies, at value (Cost $206,680) 210,467 -------------------------------------------------------------------------------- Receivables for: Investments sold 878,096 -------------------------------------------------------------------------------- Fund shares sold 215,604 -------------------------------------------------------------------------------- Dividends 1,979,761 -------------------------------------------------------------------------------- Investment for trustee deferred compensation and retirement plans 25,578 -------------------------------------------------------------------------------- Other assets 46,724 ================================================================================ Total assets 326,240,305 ________________________________________________________________________________ ================================================================================ LIABILITIES: Payables for: Investments purchased 166,401 -------------------------------------------------------------------------------- Fund shares reacquired 205,274 -------------------------------------------------------------------------------- Collateral upon return of securities loaned 50,134,759 -------------------------------------------------------------------------------- Accrued fees to affiliates 101,305 -------------------------------------------------------------------------------- Accrued other operating expenses 177,723 -------------------------------------------------------------------------------- Trustee deferred compensation and retirement plans 58,724 ================================================================================ Total liabilities 50,844,186 ================================================================================ Net assets applicable to shares outstanding $275,396,119 ________________________________________________________________________________ ================================================================================ NET ASSETS CONSIST OF: Shares of beneficial interest $409,112,881 -------------------------------------------------------------------------------- Undistributed net investment income 2,274,072 -------------------------------------------------------------------------------- Undistributed net realized gain (loss) (79,347,894) -------------------------------------------------------------------------------- Unrealized appreciation (depreciation) (56,642,940) ================================================================================ $275,396,119 ________________________________________________________________________________ ================================================================================ NET ASSETS: Class A $ 39,771,042 ________________________________________________________________________________ ================================================================================ Class B $ 8,368,679 ________________________________________________________________________________ ================================================================================ Class C $ 19,086,621 ________________________________________________________________________________ ================================================================================ Class R $ 2,058,536 ________________________________________________________________________________ ================================================================================ Class Y $ 623,061 ________________________________________________________________________________ ================================================================================ Investor Class $ 17,284,761 ________________________________________________________________________________ ================================================================================ Institutional Class $188,203,419 ________________________________________________________________________________ ================================================================================ SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES AUTHORIZED: Class A 4,915,405 ________________________________________________________________________________ ================================================================================ Class B 1,034,300 ________________________________________________________________________________ ================================================================================ Class C 2,419,865 ________________________________________________________________________________ ================================================================================ Class R 254,239 ________________________________________________________________________________ ================================================================================ Class Y 75,836 ________________________________________________________________________________ ================================================================================ Investor Class 2,106,127 ________________________________________________________________________________ ================================================================================ Institutional Class 23,253,962 ________________________________________________________________________________ ================================================================================ Class A: Net asset value per share $ 8.09 -------------------------------------------------------------------------------- Maximum offering price per share (Net asset value of $8.09 divided by 94.50%) $ 8.56 ________________________________________________________________________________ ================================================================================ Class B: Net asset value and offering price per share $ 8.09 ________________________________________________________________________________ ================================================================================ Class C: Net asset value and offering price per share $ 7.89 ________________________________________________________________________________ ================================================================================ Class R: Net asset value and offering price per share $ 8.10 ________________________________________________________________________________ ================================================================================ Class Y: Net asset value and offering price per share $ 8.22 ________________________________________________________________________________ ================================================================================ Investor Class: Net asset value and offering price per share $ 8.21 ________________________________________________________________________________ ================================================================================ Institutional Class: Net asset value and offering price per share $ 8.09 ________________________________________________________________________________ ================================================================================
* At April 30, 2009, securities with an aggregate value of $49,133,327 were on loan to brokers. See accompanying Notes to Financial Statements which are an integral part of the financial statements. 8 AIM INTERNATIONAL CORE EQUITY FUND STATEMENT OF OPERATIONS For the six months ended April 30, 2009 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding taxes of $464,197) $ 4,312,086 ------------------------------------------------------------------------------------------------ Dividends from affiliated money market funds (includes securities lending income of $245,169) 278,613 ================================================================================================ Total investment income 4,590,699 ================================================================================================ EXPENSES: Advisory fees 997,458 ------------------------------------------------------------------------------------------------ Administrative services fees 60,342 ------------------------------------------------------------------------------------------------ Custodian fees 92,698 ------------------------------------------------------------------------------------------------ Distribution fees: Class A 47,812 ------------------------------------------------------------------------------------------------ Class B 44,646 ------------------------------------------------------------------------------------------------ Class C 91,637 ------------------------------------------------------------------------------------------------ Class R 4,461 ------------------------------------------------------------------------------------------------ Investor Class 21,268 ------------------------------------------------------------------------------------------------ Transfer agent fees -- A, B, C, R, Y and Investor 233,252 ------------------------------------------------------------------------------------------------ Transfer agent fees -- Institutional 3,305 ------------------------------------------------------------------------------------------------ Trustees' and officers' fees and benefits 14,422 ------------------------------------------------------------------------------------------------ Other 132,863 ================================================================================================ Total expenses 1,744,164 ================================================================================================ Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (4,906) ================================================================================================ Net expenses 1,739,258 ================================================================================================ Net investment income 2,851,441 ================================================================================================ REALIZED AND UNREALIZED GAIN (LOSS) FROM: Net realized gain (loss) from: Investment securities (net of foreign taxes of $2,389) (50,430,320) ------------------------------------------------------------------------------------------------ Foreign currencies (798,629) ================================================================================================ (51,228,949) ================================================================================================ Change in net unrealized appreciation of: Investment securities (net of foreign taxes on holdings of $(43,071)) 38,073,278 ------------------------------------------------------------------------------------------------ Foreign currencies 193,825 ================================================================================================ 38,267,103 ================================================================================================ Net realized and unrealized gain (loss) (12,961,846) ================================================================================================ Net increase (decrease) in net assets resulting from operations $(10,110,405) ________________________________________________________________________________________________ ================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 9 AIM INTERNATIONAL CORE EQUITY FUND STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2009 and the year ended October 31, 2008 (Unaudited)
APRIL 30, OCTOBER 31, 2009 2008 ---------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 2,851,441 $ 12,641,788 ---------------------------------------------------------------------------------------------------------- Net realized gain (loss) (51,228,949) (25,612,690) ---------------------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) 38,267,103 (249,384,437) ========================================================================================================== Net increase (decrease) in net assets resulting from operations (10,110,405) (262,355,339) ========================================================================================================== Distributions to shareholders from net investment income: Class A (1,477,198) (1,010,463) ---------------------------------------------------------------------------------------------------------- Class B (214,660) (116,149) ---------------------------------------------------------------------------------------------------------- Class C (436,611) (190,541) ---------------------------------------------------------------------------------------------------------- Class R (58,103) (35,689) ---------------------------------------------------------------------------------------------------------- Class Y (6,890) -- ---------------------------------------------------------------------------------------------------------- Investor Class (664,153) (445,058) ---------------------------------------------------------------------------------------------------------- Institutional Class (9,199,911) (6,488,116) ========================================================================================================== Total distributions from net investment income (12,057,526) (8,286,016) ========================================================================================================== Distributions to shareholders from net realized gains: Class A -- (7,093,976) ---------------------------------------------------------------------------------------------------------- Class B -- (2,367,978) ---------------------------------------------------------------------------------------------------------- Class C -- (3,884,583) ---------------------------------------------------------------------------------------------------------- Class R -- (320,786) ---------------------------------------------------------------------------------------------------------- Investor Class -- (3,124,071) ---------------------------------------------------------------------------------------------------------- Institutional Class -- (30,160,311) ========================================================================================================== Total distributions from net realized gains -- (46,951,705) ========================================================================================================== Share transactions-net: Class A (2,069,172) (4,997,804) ---------------------------------------------------------------------------------------------------------- Class B (1,776,313) (7,914,020) ---------------------------------------------------------------------------------------------------------- Class C (1,043,401) (5,450,831) ---------------------------------------------------------------------------------------------------------- Class R 78,557 (127,497) ---------------------------------------------------------------------------------------------------------- Class Y 377,050 220,834 ---------------------------------------------------------------------------------------------------------- Investor Class (1,071,357) (4,636,476) ---------------------------------------------------------------------------------------------------------- Institutional Class (5,694,241) 15,254,153 ========================================================================================================== Net increase (decrease) in net assets resulting from share transactions (11,198,877) (7,651,641) ========================================================================================================== Net increase (decrease) in net assets (33,366,808) (325,244,701) ========================================================================================================== NET ASSETS: Beginning of period 308,762,927 634,007,628 ========================================================================================================== End of period (includes undistributed net investment income of $2,274,072 and $11,480,157, respectively) $275,396,119 $ 308,762,927 __________________________________________________________________________________________________________ ==========================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 10 AIM INTERNATIONAL CORE EQUITY FUND NOTES TO FINANCIAL STATEMENTS April 30, 2009 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM International Core Equity Fund (the "Fund") is a series portfolio of AIM International Mutual Funds (the "Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end series management investment company consisting of six separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The Fund's investment objective is total return. The Fund currently consists of seven different classes of shares: Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class. Investor Class shares of the Fund are offered only to certain grandfathered investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver shares may be subject to contingent deferred sales charges ("CDSC"). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y, Investor Class and Institutional Class shares are sold at net asset value. Under certain circumstances, Class R shares are subject to a CDSC. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. 11 AIM INTERNATIONAL CORE EQUITY FUND B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment advisor may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. D. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. G. ACCOUNTING ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. I. REDEMPTION FEES -- The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. J. SECURITIES LENDING -- The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. 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. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any. 12 AIM INTERNATIONAL CORE EQUITY FUND K. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. L. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES The Trust has entered into a master investment advisory agreement with Invesco Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Advisor based on the annual rate of the Fund's average daily net assets as follows:
AVERAGE NET ASSETS RATE ------------------------------------------------------------------- First $500 million 0.75% ------------------------------------------------------------------- Next $500 million 0.65% ------------------------------------------------------------------- From $1 billion 0.55% ------------------------------------------------------------------- From $2 billion 0.45% ------------------------------------------------------------------- From $4 billion 0.40% ------------------------------------------------------------------- From $6 billion 0.375% ------------------------------------------------------------------- Over $8 billion 0.35% ___________________________________________________________________ ===================================================================
Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Advisor and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-Advisor(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Advisor(s). The Advisor has contractually agreed, through at least June 30, 2009, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Advisor receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. For the six months ended April 30, 2009, the Advisor waived advisory fees of $3,031. At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the AIM Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended April 30, 2009, Invesco reimbursed expenses of the Fund in the amount of $240. The Trust has entered into a master administrative services agreement with Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees. The Trust has entered into a transfer agency and service agreement with Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has agreed to pay IAIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the course of providing such services. IAIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IAIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust's Board of Trustees. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees. 13 AIM INTERNATIONAL CORE EQUITY FUND The Trust has entered into master distribution agreements with Invesco Aim Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A, Class B, Class C, Class R and Investor Class shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays IADI compensation at the annual rate of 0.25% of the Fund's average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares, 0.50% of the average daily net assets of Class R shares and 0.25% of the average daily net assets of Investor Class shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended April 30, 2009, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees. Front-end sales commissions and CDSC (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2009, IADI advised the Fund that IADI retained $4,344 in front-end sales commissions from the sale of Class A shares and $0, $6,317, $2,457 and $0 from Class A, Class B, Class C and Class R shares, respectively, for CDSC imposed on redemptions by shareholders. Certain officers and trustees of the Trust are officers and directors of Invesco Aim, IAIS and/or IADI. NOTE 3--SUPPLEMENTAL INFORMATION The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level: Level 1 -- Prices are determined using quoted prices in an active market for identical assets. Level 2 -- Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level 3 -- Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. The following is a summary of the tiered valuation input levels, as of the end of the reporting period, April 30, 2009. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
INVESTMENTS IN INPUT LEVEL SECURITIES -------------------------------------- Level 1 $110,254,350 -------------------------------------- Level 2 212,629,725 -------------------------------------- Level 3 -- ====================================== $322,884,075 ______________________________________ ======================================
NOTE 4--EXPENSE OFFSET ARRANGEMENT The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2009, the Fund received credits from this arrangement, which resulted in the reduction of the Fund's total expenses of $1,635. NOTE 5--TRUSTEES' AND OFFICERS' FEES AND BENEFITS "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and "Trustees' and Officers' Fees and Benefits" also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various AIM Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund. During the six months ended April 30, 2009, the Fund paid legal fees of $2,286 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. 14 AIM INTERNATIONAL CORE EQUITY FUND NOTE 6--CASH BALANCES The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco Aim, not to exceed the contractually agreed upon rate. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end. Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. The Fund had a capital loss carryforward as of October 31, 2008 which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD* ----------------------------------------------------------------------------------------------- October 31, 2016 $20,482,698 _______________________________________________________________________________________________ ===============================================================================================
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2009 was $54,701,813 and $66,909,178, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS ------------------------------------------------------------------------------------------------ Aggregate unrealized appreciation of investment securities $ 12,645,333 ------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (76,928,582) ================================================================================================ Net unrealized appreciation (depreciation) of investment securities $(64,283,249) ________________________________________________________________________________________________ ================================================================================================ Cost of investments for tax purposes is $387,167,324.
15 AIM INTERNATIONAL CORE EQUITY FUND NOTE 9--SHARE INFORMATION
SUMMARY OF SHARE ACTIVITY ------------------------------------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED APRIL 30, 2009(a) OCTOBER 31, 2008 --------------------------- --------------------------- SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------ Sold: Class A 725,701 $ 5,574,494 1,258,513 $ 15,391,387 ------------------------------------------------------------------------------------------------------------------------ Class B 59,726 459,649 195,522 2,626,561 ------------------------------------------------------------------------------------------------------------------------ Class C 247,111 1,821,857 413,950 5,368,044 ------------------------------------------------------------------------------------------------------------------------ Class R 65,651 495,399 87,512 1,134,582 ------------------------------------------------------------------------------------------------------------------------ Class Y(b) 61,634 427,762 21,147 220,834 ------------------------------------------------------------------------------------------------------------------------ Investor Class 94,542 747,610 221,379 3,011,516 ------------------------------------------------------------------------------------------------------------------------ Institutional Class 733,941 5,818,627 2,334,532 31,993,859 ======================================================================================================================== Issued as reinvestment of dividends: Class A 176,691 1,406,457 540,511 7,691,470 ------------------------------------------------------------------------------------------------------------------------ Class B 25,633 6,806 165,714 2,346,512 ------------------------------------------------------------------------------------------------------------------------ Class C 49,825 388,141 266,194 3,676,142 ------------------------------------------------------------------------------------------------------------------------ Class R 7,265 57,974 25,086 356,475 ------------------------------------------------------------------------------------------------------------------------ Class Y 847 6,848 -- -- ------------------------------------------------------------------------------------------------------------------------ Investor Class 73,855 596,745 243,237 3,507,479 ------------------------------------------------------------------------------------------------------------------------ Institutional Class 1,158,679 9,199,911 2,570,016 36,648,427 ======================================================================================================================== Automatic conversion of Class B shares to Class A shares: Class A 78,997 600,802 348,838 4,453,923 ------------------------------------------------------------------------------------------------------------------------ Class B (79,083) (600,802) (351,740) (4,453,923) ======================================================================================================================== Reacquired:(c) Class A(b) (1,289,401) (9,650,925) (2,707,360) (32,534,584) ------------------------------------------------------------------------------------------------------------------------ Class B (245,931) (1,641,966) (700,875) (8,433,170) ------------------------------------------------------------------------------------------------------------------------ Class C (438,215) (3,253,399) (1,218,068) (14,495,017) ------------------------------------------------------------------------------------------------------------------------ Class R (59,949) (474,816) (127,697) (1,618,554) ------------------------------------------------------------------------------------------------------------------------ Class Y (7,792) (57,560) -- -- ------------------------------------------------------------------------------------------------------------------------ Investor Class(b) (313,846) (2,415,712) (830,023) (11,155,471) ------------------------------------------------------------------------------------------------------------------------ Institutional Class (2,716,577) (20,712,779) (4,833,881) (53,388,133) ======================================================================================================================== Net increase (decrease) in share activity (1,590,696) $(11,198,877) (2,077,493) $ (7,651,641) ________________________________________________________________________________________________________________________ ========================================================================================================================
(a) There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund that owns 6% of the outstanding shares of the Fund. IADI has an agreement with this entity to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco Aim and/or Invesco Aim affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity is also owned beneficially. In addition, 64% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco Aim. (b) Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A and Investor Class shares into Class Y shares of the Fund:
CLASS SHARES AMOUNT -------------------------------------------------------------------------------------------------- Class Y 20,128 $ 210,334 -------------------------------------------------------------------------------------------------- Class A (8,830) (91,033) -------------------------------------------------------------------------------------------------- Investor Class (11,416) (119,301) __________________________________________________________________________________________________ ==================================================================================================
(c) Net of redemption fees of $953 and $3,240 which were allocated among the classes based on relative net assets of each class for the six months ended April 30, 2009 and the year ended October 31, 2008. 16 AIM INTERNATIONAL CORE EQUITY FUND NOTE 10--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
NET GAINS (LOSSES) NET ASSET ON SECURITIES DIVIDENDS DISTRIBUTIONS VALUE, NET (BOTH TOTAL FROM FROM NET FROM NET NET ASSET BEGINNING INVESTMENT REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL VALUE, END OF PERIOD INCOME(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD(b) ----------------------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $ 8.63 $0.06 $(0.30) $(0.24) $(0.30) $ -- $(0.30) $ 8.09 Year ended 10/31/08 16.77 0.28 (7.01) (6.73) (0.18) (1.23) (1.41) 8.63 Year ended 10/31/07 14.44 0.22 2.75 2.97 (0.22) (0.42) (0.64) 16.77 Year ended 10/31/06 11.90 0.25 2.77 3.02 (0.10) (0.38) (0.48) 14.44 Year ended 10/31/05 10.52 0.14 1.32 1.46 (0.08) -- (0.08) 11.90 Year ended 10/31/04 8.74 0.09 1.72 1.81 (0.03) -- (0.03) 10.52 ----------------------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 8.54 0.04 (0.31) (0.27) (0.18) -- (0.18) 8.09 Year ended 10/31/08 16.58 0.18 (6.93) (6.75) (0.06) (1.23) (1.29) 8.54 Year ended 10/31/07 14.30 0.11 2.71 2.82 (0.12) (0.42) (0.54) 16.58 Year ended 10/31/06 11.79 0.14 2.76 2.90 (0.01) (0.38) (0.39) 14.30 Year ended 10/31/05 10.43 0.06 1.31 1.37 (0.01) -- (0.01) 11.79 Year ended 10/31/04 8.72 0.02 1.71 1.73 (0.02) -- (0.02) 10.43 ----------------------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 8.33 0.03 (0.29) (0.26) (0.18) -- (0.18) 7.89 Year ended 10/31/08 16.21 0.18 (6.77) (6.59) (0.06) (1.23) (1.29) 8.33 Year ended 10/31/07 13.98 0.11 2.66 2.77 (0.12) (0.42) (0.54) 16.21 Year ended 10/31/06 11.54 0.14 2.69 2.83 (0.01) (0.38) (0.39) 13.98 Year ended 10/31/05 10.22 0.06 1.28 1.34 (0.02) -- (0.02) 11.54 Year ended 10/31/04 8.53 0.04 1.67 1.71 (0.02) -- (0.02) 10.22 ----------------------------------------------------------------------------------------------------------------------------------- CLASS R Six months ended 04/30/09 8.61 0.05 (0.30) (0.25) (0.26) -- (0.26) 8.10 Year ended 10/31/08 16.72 0.24 (6.98) (6.74) (0.14) (1.23) (1.37) 8.61 Year ended 10/31/07 14.40 0.18 2.74 2.92 (0.18) (0.42) (0.60) 16.72 Year ended 10/31/06 11.87 0.21 2.77 2.98 (0.07) (0.38) (0.45) 14.40 Year ended 10/31/05 10.51 0.12 1.31 1.43 (0.07) -- (0.07) 11.87 Year ended 10/31/04(f) 8.90 0.08 1.56 1.64 (0.03) -- (0.03) 10.51 ----------------------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 8.75 0.07 (0.30) (0.23) (0.30) -- (0.30) 8.22 Year ended 10/31/08(f) 10.45 0.01 (1.71) (1.70) -- -- -- 8.75 ----------------------------------------------------------------------------------------------------------------------------------- INVESTOR CLASS Six months ended 04/30/09 8.75 0.07 (0.31) (0.24) (0.30) -- (0.30) 8.21 Year ended 10/31/08 16.98 0.28 (7.10) (6.82) (0.18) (1.23) (1.41) 8.75 Year ended 10/31/07 14.61 0.23 2.78 3.01 (0.22) (0.42) (0.64) 16.98 Year ended 10/31/06 12.04 0.25 2.80 3.05 (0.10) (0.38) (0.48) 14.61 Year ended 10/31/05 10.64 0.15 1.33 1.48 (0.08) -- (0.08) 12.04 Year ended 10/31/04 8.83 0.09 1.75 1.84 (0.03) -- (0.03) 10.64 ----------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL CLASS Six months ended 04/30/09 8.70 0.09 (0.31) (0.22) (0.39) -- (0.39) 8.09 Year ended 10/31/08 16.89 0.35 (7.05) (6.70) (0.26) (1.23) (1.49) 8.70 Year ended 10/31/07 14.54 0.31 2.75 3.06 (0.29) (0.42) (0.71) 16.89 Year ended 10/31/06 11.97 0.33 2.78 3.11 (0.16) (0.38) (0.54) 14.54 Year ended 10/31/05 10.56 0.21 1.32 1.53 (0.12) -- (0.12) 11.97 Year ended 10/31/04(f) 9.78 0.09 0.69 0.78 -- -- -- 10.56 ___________________________________________________________________________________________________________________________________ =================================================================================================================================== RATIO OF RATIO OF EXPENSES EXPENSES TO AVERAGE TO AVERAGE NET RATIO OF NET NET ASSETS ASSETS WITHOUT INVESTMENT NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO RETURN(c) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(d) ------------------------------------------------------------------------------------------------------------------ CLASS A Six months ended 04/30/09 (2.71)% $ 39,771 1.78%(e) 1.78%(e) 1.67%(e) 21% Year ended 10/31/08 (43.45) 45,100 1.45 1.45 2.13 38 Year ended 10/31/07 21.26 96,961 1.41 1.41 1.46 27 Year ended 10/31/06 26.12 118,943 1.52 1.52 1.88 21 Year ended 10/31/05 13.89 90,022 1.56 1.56 1.20 21 Year ended 10/31/04 20.78 60,603 1.84 1.86 0.94 69 ------------------------------------------------------------------------------------------------------------------ CLASS B Six months ended 04/30/09 (3.19) 8,369 2.53(e) 2.53(e) 0.92(e) 21 Year ended 10/31/08 (43.79) 10,873 2.20 2.20 1.38 38 Year ended 10/31/07 20.25 32,592 2.16 2.16 0.71 27 Year ended 10/31/06 25.28 31,818 2.27 2.27 1.13 21 Year ended 10/31/05 13.11 28,785 2.25 2.25 0.51 21 Year ended 10/31/04 19.92 23,812 2.53 2.57 0.25 69 ------------------------------------------------------------------------------------------------------------------ CLASS C Six months ended 04/30/09 (3.15) 19,087 2.53(e) 2.53(e) 0.92(e) 21 Year ended 10/31/08 (43.80) 21,323 2.20 2.20 1.38 38 Year ended 10/31/07 20.36 50,234 2.16 2.16 0.71 27 Year ended 10/31/06 25.22 42,906 2.27 2.27 1.13 21 Year ended 10/31/05 13.11 38,108 2.25 2.25 0.51 21 Year ended 10/31/04 20.13 36,490 2.41 2.46 0.37 69 ------------------------------------------------------------------------------------------------------------------ CLASS R Six months ended 04/30/09 (2.87) 2,059 2.03(e) 2.03(e) 1.42(e) 21 Year ended 10/31/08 (43.55) 2,077 1.70 1.70 1.88 38 Year ended 10/31/07 20.97 4,286 1.66 1.66 1.21 27 Year ended 10/31/06 25.86 3,560 1.77 1.77 1.63 21 Year ended 10/31/05 13.64 2,622 1.75 1.75 1.01 21 Year ended 10/31/04(f) 18.49 2,118 1.91(g) 1.93(g) 0.87(g) 69 ------------------------------------------------------------------------------------------------------------------ CLASS Y Six months ended 04/30/09 (2.54) 623 1.53(e) 1.53(e) 1.92(e) 21 Year ended 10/31/08(f) (16.27) 185 1.30(g) 1.30(g) 2.28(g) 38 ------------------------------------------------------------------------------------------------------------------ INVESTOR CLASS Six months ended 04/30/09 (2.68) 17,285 1.78(e) 1.78(e) 1.67(e) 21 Year ended 10/31/08 (43.44) 19,710 1.45 1.45 2.13 38 Year ended 10/31/07 21.29 44,428 1.41 1.41 1.46 27 Year ended 10/31/06 26.11 44,674 1.52 1.52 1.88 21 Year ended 10/31/05 13.92 46,988 1.50 1.50 1.26 21 Year ended 10/31/04 20.84 44,345 1.84 1.89 0.94 69 ------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL CLASS Six months ended 04/30/09 (2.41) 188,203 0.98(e) 0.98(e) 2.47(e) 21 Year ended 10/31/08 (43.08) 209,494 0.87 0.87 2.71 38 Year ended 10/31/07 21.89 405,507 0.88 0.88 1.99 27 Year ended 10/31/06 26.86 193,959 0.95 0.95 2.45 21 Year ended 10/31/05 14.53 73,018 0.98 0.98 1.78 21 Year ended 10/31/04(f) 7.97 16,421 1.07(g) 1.07(g) 1.71(g) 69 __________________________________________________________________________________________________________________ ==================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. (c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. (d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. (e) Ratios are annualized and based on average daily net assets (000's omitted) of $38,567, $9,003, $18,479, $1,799, $317, $17,155 and $182,873 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively. (f) Commencement date of November 24, 2003, October 3, 2008 and April 30, 2004 for Class R, Class Y and Institutional Class shares, respectively. (g) Annualized. 17 AIM INTERNATIONAL CORE EQUITY FUND NOTE 11--LEGAL PROCEEDINGS Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note. SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING On May 23, 2008, the Securities and Exchange Commission ("SEC") publicly posted its final approval of the Distribution Plans ("Distribution Plans") for the distribution of monies placed into two separate Fair Funds created pursuant to a settlement reached on October 8, 2004 between Invesco Funds Group, Inc. ("IFG"), Invesco Aim Advisors, Inc. ("Invesco Aim") and Invesco Aim Distributors, Inc. ("IADI") and the SEC (the "Order"). One of the Fair Funds consists of $325 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds formerly advised by IFG who may have been harmed by market timing and related activity. The second Fair Fund consists of $50 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds advised by Invesco Aim who may have been harmed by market timing and related activity. The Distribution Plans provide for the distribution to all eligible investors to compensate such investors for injury they may have suffered as a result of market timing in the affected funds. The Distribution Plans include a provision for any residual amounts in the Fair Funds to be distributed in the future to the affected funds. At this time, management of Invesco Aim and the Fund are unable to estimate the residual distribution to the Fund, if any. At the request of the trustees of the AIM Funds, Invesco Ltd. ("Invesco"), the parent company of IFG and Invesco Aim, has agreed to reimburse expenses incurred by the AIM Funds related to market timing matters. PENDING LITIGATION AND REGULATORY INQUIRIES Civil lawsuits, including purported class action and shareholder derivative suits, have been filed against certain of the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals alleging that the defendants permitted improper market timing and related activity in the AIM Funds. These lawsuits allege as theories of recovery, depending on the lawsuit, violations of various provisions of the Federal and state securities laws and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), negligence, breach of fiduciary duty and/or breach of contract. These lawsuits seek remedies that include, depending on the lawsuit, damages, restitution, injunctive relief, imposition of a constructive trust, removal of certain directors and/or employees, various corrective measures under ERISA, rescission of certain AIM Funds' advisory agreements and/or distribution plans and recovery of all fees paid. All lawsuits based on allegations of market timing, late trading and related issues were transferred to the United States District Court for the District of Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in these lawsuits consolidated their claims for pre-trial purposes into three amended complaints against various Invesco Aim- and IFG-related parties: (i) a Consolidated Amended Class Action Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly brought on behalf of participants in the Invesco 401(k) plan. Based on orders issued by the MDL Court, all claims asserted against the AIM Funds that have been transferred to the MDL Court have been dismissed, although certain Funds remain nominal defendants in the Consolidated Amended Fund Derivative Complaint. On January 5, 2008, the parties reached an agreement in principle to settle both the Consolidated Amended Class Action Complaint and Consolidated Amended Fund Derivative Complaint, subject to the MDL Court approval. Individual class members have the right to object. On December 15, 2008, the parties reached an agreement in principle to settle the Amended Class Action Complaint for Violations of ERISA, subject to the MDL Court approval. Individual class members have the right to object. No payments are required under the settlement; however, the parties agreed that certain limited changes to benefit plans and participants' accounts would be made. IFG, Invesco Aim, IADI and/or related entities and individuals have received inquiries from numerous regulators in the form of subpoenas or other oral or written requests for information and/or documents related to one or more of the following issues, among others, some of which concern one or more AIM Funds: market timing activity, late trading, fair value pricing, excessive or improper advisory and/or distribution fees, mutual fund sales practices, including revenue sharing and directed-brokerage arrangements, investments in securities of other registered investment companies, contractual plans, issues related to Section 529 college savings plans and procedures for locating lost security holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing full cooperation with respect to these inquiries. Regulatory actions and/or additional civil lawsuits related to these or other issues may be filed against the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in the future. 18 AIM INTERNATIONAL CORE EQUITY FUND CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
--------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO --------------------------------------------------------------------------------------------------- A $1,000.00 $972.90 $ 8.71 $1,015.97 $ 8.90 1.78% --------------------------------------------------------------------------------------------------- B 1,000.00 968.10 12.35 1,012.25 12.62 2.53 --------------------------------------------------------------------------------------------------- C 1,000.00 968.50 12.35 1,012.25 12.62 2.53 --------------------------------------------------------------------------------------------------- R 1,000.00 971.30 9.92 1,014.73 10.14 2.03 --------------------------------------------------------------------------------------------------- Y 1,000.00 974.60 7.49 1,017.21 7.65 1.53 --------------------------------------------------------------------------------------------------- Investor 1,000.00 973.20 8.71 1,015.97 8.90 1.78 ---------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. 19 AIM INTERNATIONAL CORE EQUITY FUND Supplement to Semiannual Report dated 4/30/09 AIM INTERNATIONAL CORE EQUITY FUND ========================================== INSTITUTIONAL CLASS SHARES AVERAGE ANNUAL TOTAL RETURNS Please note that past performance is For periods ended 4/30/09 not indicative of future results. More The following information has been recent returns may be more or less than prepared to provide Institutional Class Inception (4/30/04) 1.21% those shown. All returns assume shareholders with a performance overview 5 Years 1.21 reinvestment of distributions at NAV. specific to their holdings. Institutional 1 Year -38.52 Investment return and principal value will Class shares are offered exclusively to 6 Months* -2.41 fluctuate so your shares, when redeemed, institutional investors, including defined ========================================== may be worth more or less than their contribution plans that meet certain original cost. See full report for criteria. ========================================== information on comparative benchmarks. AVERAGE ANNUAL TOTAL RETURNS Please consult your Fund prospectus for For periods ended 3/31/09, most recent more information. For the most current calendar quarter-end month-end performance, please call 800 451 4246 or visit invescoaim.com. Inception (4/30/04) -1.22% 1 Year -41.85 6 Months* -30.39 * Cumulative total return that has not been annualized ========================================== Institutional Class shares have no sales charge; therefore, performance is at net asset value (NAV). Performance of Institutional Class shares will differ from performance of other share classes primarily due to differing sales charges and class expenses. The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this supplement for Institutional Class shares was 0.87%. The expense ratios presented above may vary from the expense ratios presented in other sections of the actual report that are based on expenses incurred during the period covered by the report. A redemption fee of 2% will be imposed on certain redemptions or exchanges out of the Fund within 31 days of purchase. Exceptions to the redemption fee are listed in the Fund's prospectus. Over for information on your Fund's expenses. THIS SUPPLEMENT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. FOR INSTITUTIONAL INVESTOR USE ONLY This material is for institutional investor use only and may not be quoted, reproduced or shown to the public, nor used in written form as sales literature for public use. [INVESCO AIM LOGO] invescoaim.com I-ICE-INS-2 Invesco Aim Distributors, Inc. --SERVICE MARK--
CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
----------------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO ----------------------------------------------------------------------------------------------------------- Institutional $1,000.00 $975.90 $4.80 $1,019.93 $4.91 0.98% -----------------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. AIM INTERNATIONAL CORE EQUITY FUND [GO PAPERLESS GRAPHIC] ==================================================================================================================================== GO PAPERLESS WITH EDELIVERY Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all about eeees: o ENVIRONMENTALLY FRIENDLY. Go green by reducing the number of o EFFICIENT. Stop waiting for regular mail. Your documents will trees used to produce paper. be sent via email as soon as they're available. o ECONOMICAL. Help reduce your fund's printing and delivery o EASY. Download, save and print files using your home computer expenses and put more capital back in your fund's returns. with a few clicks of your mouse. This service is provided by Invesco Aim Investment Services, Inc. ==================================================================================================================================== FUND HOLDINGS AND PROXY VOTING INFORMATION The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-06463 and 033-44611. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov. If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim Quarterly Performance Review for the most recent quarter-end. Invesco Aim --SERVICE MARK-- is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund's prospectus for information on the fund's subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, [INVESCO AIM LOGO] Inc., Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco --SERVICE MARK-- Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com on or about the end of the fourth quarter of 2009. invescoaim.com I-ICE-SAR-1 Invesco Aim Distributors, Inc.
[INVESCO AIM LOGO] AIM INTERNATIONAL GROWTH FUND --SERVICE MARK-- Semiannual Report to Shareholders o April 30, 2009 [MOUNTAIN GRAPHIC] Fund Performance 2 Letters to Shareholders 4 Schedule of Investments 5 Financial Statements 8 Notes to Financial Statements 11 Financial Highlights 17 Fund Expenses 19
For the most current month-end Fund performance and commentary, please visit invescoaim.com. Unless otherwise noted, all data provided by Invesco Aim. THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE FUND PERFORMANCE ======================================================================================= PERFORMANCE SUMMARY FUND VS. INDEXES Cumulative total returns, 10/31/08 to 4/30/09, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. Class A Shares -0.06% Class B Shares -0.42 Class C Shares -0.36 Class R Shares -0.16 Class Y Shares 0.12 MSCI EAFE Index(Triangle) (Broad Market Index) -2.64 MSCI EAFE Growth Index(Triangle) (Style-Specific Index) -5.22 Lipper International Multi-Cap Growth Funds Index(Triangle) (Peer Group Index) 2.24 (Triangle) Lipper Inc. The MSCI EAFE --REGISTERED TRADEMARK-- INDEX is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE --REGISTERED TRADEMARK-- GROWTH INDEX is an unmanaged index considered representative of growth stocks of Europe, Australasia and the Far East. The LIPPER INTERNATIONAL MULTI-CAP GROWTH FUNDS INDEX is an equally weighted representation of the largest funds in the Lipper International Multi-Cap Growth Funds category. These funds typically have an above-average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P/ Citigroup World ex-U.S. BMI. The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group reflects fund expenses; performance of a market index does not. =======================================================================================
2 AIM INTERNATIONAL GROWTH FUND ========================================== ========================================== CLASS A SHARE PERFORMANCE REFLECTS THE AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS MAXIMUM 5.50% SALES CHARGE, AND CLASS B AND CLASS C SHARE PERFORMANCE REFLECTS THE As of 4/30/09, including maximum As of 3/31/09, the most recent calendar APPLICABLE CONTINGENT DEFERRED SALES applicable sales charges quarter-end, including maximum applicable CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE sales charges CDSC ON CLASS B SHARES DECLINES FROM 5% CLASS A SHARES BEGINNING AT THE TIME OF PURCHASE TO 0% AT Inception (4/7/92) 6.24% CLASS A SHARES THE BEGINNING OF THE SEVENTH YEAR. THE 10 Years 1.45 Inception (4/7/92) 5.85% CDSC ON CLASS C SHARES IS 1% FOR THE FIRST 5 Years 2.90 10 Years 1.09 YEAR AFTER PURCHASE. CLASS R SHARES DO NOT 1 Year -40.50 5 Years 1.09 HAVE A FRONT-END SALES CHARGE; RETURNS 1 YEAR -42.49 SHOWN ARE AT NET ASSET VALUE AND DO NOT CLASS B SHARES REFLECT A 0.75% CDSC THAT MAY BE IMPOSED Inception (9/15/94) 4.17% CLASS B SHARES ON A TOTAL REDEMPTION OF RETIREMENT PLAN 10 Years 1.44 Inception (9/15/94) 3.72% ASSETS WITHIN THE FIRST YEAR. CLASS Y 5 Years 2.95 10 Years 1.08 SHARES DO NOT HAVE A FRONT-END SALES 1 Year -40.59 5 Years 1.12 CHARGE OR A CDSC; THEREFORE, PERFORMANCE 1 YEAR -42.57 IS AT NET ASSET VALUE. CLASS C SHARES Inception (8/4/97) 1.57% CLASS C SHARES THE PERFORMANCE OF THE FUND'S SHARE 10 Years 1.29 Inception (8/4/97) 1.00% CLASSES WILL DIFFER PRIMARILY DUE TO 5 Years 3.30 10 Years 0.93 DIFFERENT SALES CHARGE STRUCTURES AND 1 Year -38.11 5 Years 1.49 CLASS EXPENSES. 1 YEAR -40.20 CLASS R SHARES A REDEMPTION FEE OF 2% WILL BE IMPOSED 10 Years 1.76% CLASS R SHARES ON CERTAIN REDEMPTIONS OR EXCHANGES OUT OF 5 Years 3.81 10 Years 1.40% THE FUND WITHIN 31 DAYS OF PURCHASE. 1 Year -37.18 5 Years 1.99 EXCEPTIONS TO THE REDEMPTION FEE ARE 1 YEAR -39.28 LISTED IN THE FUND'S PROSPECTUS. CLASS Y SHARES 10 Years 2.04% CLASS Y SHARES (1) Total annual operating expenses less 5 Years 4.10 10 Years 1.68% any contractual fee waivers and/or 1 Year -36.92 5 Years 2.26 expense reimbursements by the advisor ========================================== 1 YEAR -39.07 in effect through at least June 30, ========================================== 2009. See current prospectus for more information. CLASS R SHARES' INCEPTION DATE IS JUNE 3, THE MOST RECENT MONTH-END PERFORMANCE. 2002. RETURNS SINCE THAT DATE ARE PERFORMANCE FIGURES REFLECT REINVESTED HISTORICAL RETURNS. ALL OTHER RETURNS ARE DISTRIBUTIONS, CHANGES IN NET ASSET VALUE BLENDED RETURNS OF HISTORICAL CLASS R AND THE EFFECT OF THE MAXIMUM SALES CHARGE SHARE PERFORMANCE AND RESTATED CLASS A UNLESS OTHERWISE STATED. PERFORMANCE SHARE PERFORMANCE (FOR PERIODS PRIOR TO FIGURES DO NOT REFLECT DEDUCTION OF TAXES THE INCEPTION DATE OF CLASS R SHARES) AT A SHAREHOLDER WOULD PAY ON FUND NET ASSET VALUE, ADJUSTED TO REFLECT THE DISTRIBUTIONS OR SALE OF FUND SHARES. HIGHER RULE 12B-1 FEES APPLICABLE TO CLASS INVESTMENT RETURN AND PRINCIPAL VALUE WILL R SHARES. CLASS A SHARES' INCEPTION DATE FLUCTUATE SO THAT YOU MAY HAVE A GAIN OR IS APRIL 7, 1992. LOSS WHEN YOU SELL SHARES. CLASS Y SHARES' INCEPTION DATE IS THE NET ANNUAL FUND OPERATING EXPENSE OCTOBER 3, 2008; RETURNS SINCE THAT DATE RATIO SET FORTH IN THE MOST RECENT FUND ARE ACTUAL RETURNS. ALL OTHER RETURNS ARE PROSPECTUS AS OF THE DATE OF THIS REPORT BLENDED RETURNS OF ACTUAL CLASS Y SHARE FOR CLASS A, CLASS B, CLASS C, CLASS R AND PERFORMANCE AND RESTATED CLASS A SHARE CLASS Y SHARES WAS 1.45%, 2.20%, 2.20%, PERFORMANCE (FOR PERIODS PRIOR TO THE 1.70% AND 1.20%, RESPECTIVELY.(1) THE INCEPTION DATE OF CLASS Y SHARES) AT NET TOTAL ANNUAL FUND OPERATING EXPENSE RATIO ASSET VALUE. THE RESTATED CLASS A SHARE SET FORTH IN THE MOST RECENT FUND PERFORMANCE REFLECTS THE RULE 12B-1 FEES PROSPECTUS AS OF THE DATE OF THIS REPORT APPLICABLE TO CLASS A SHARES AS WELL AS FOR CLASS A, CLASS B, CLASS C, CLASS R AND ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS CLASS Y SHARES WAS 1.46%, 2.21%, 2.21%, RECEIVED BY CLASS A SHARES. CLASS A 1.71% AND 1.21%, RESPECTIVELY. THE EXPENSE SHARES' INCEPTION DATE IS APRIL 7, 1992. RATIOS PRESENTED ABOVE MAY VARY FROM THE EXPENSE RATIOS PRESENTED IN OTHER SECTIONS THE PERFORMANCE DATA QUOTED REPRESENT OF THIS REPORT THAT ARE BASED ON EXPENSES PAST PERFORMANCE AND CANNOT GUARANTEE INCURRED DURING THE PERIOD COVERED BY THIS COMPARABLE FUTURE RESULTS; CURRENT REPORT. PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE VISIT INVESCOAIM.COM FOR
3 AIM INTERNATIONAL GROWTH FUND Dear Fellow Shareholders: [CROCKETT PHOTO] Since my last letter, continuing troubles in the global economy and financial markets have negatively affected all investors. However, mutual funds generally are more diversified than other investments; as shareholders we invest not in a single security but in a portfolio of multiple securities. Mutual fund Bruce Crockett investors also have the opportunity to diversify further among different types of funds that each deploy a different strategy and focus on different kinds of securities. To develop a diversified and disciplined investing plan that is right for you, I encourage you to consult an investment professional who has the knowledge and the tools to help you establish, implement, and monitor the plan. You may also visit the Invesco Aim website at invescoaim.com to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by Corporate Insight. As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring investment performance and streamlining the investment management process. Your Board has already begun the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most cost-effective ways for you to invest your hard-earned money. Please feel free to contact me in writing with your questions or concerns. You can send an email to me at bruce@brucecrockett.com. Sincerely, /S/ BRUCE L. CROCKETT Bruce L.Crockett Independent Chair, AIM Funds Board of Trustees Dear Shareholders: The past year was difficult to say the least for virtually all investors. Market indexes in the U.S. and around the globe declined sharply in 2008, and "market experts" remain divided on the markets' outlook. Recent history should have reminded all of us that investor sentiment can be fickle. This is why we believe [TAYLOR PHOTO] investors should work with their financial advisors to devise a goals-based financial strategy - a long-term plan with a reasonable prospect of achieving predetermined financial goals in line with individual risk tolerance. Such a strategy cannot guarantee a profit or protect against loss in a declining market, but it Philip Taylor may help investors avoid emotion-driven, short-term investment mistakes. None of us can control the markets, but we can control our own reaction to the unsettling volatility we're experiencing. Your financial advisor can work with you to create a specific, concrete investment plan consistent with your financial goals and risk tolerance - a long-term plan guided by logic, not emotion. Invesco Aim has worked on behalf of investors in both bull markets and bear markets. We're focused on doing one thing well: managing your money. If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246. I invite you to visit invescoaim.com, where you can check on your individual account and obtain long-term performance information for your fund. By clicking on the "more" link next to the "Investment Perspective" headline at the top of the page, you can also read my detailed market updates and my interview with Invesco's chief economist - as well as other market and fund commentaries by Invesco's investment professionals. As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind. Thank you for investing with us. All of us at Invesco Aim look forward to serving you. Sincerely, /S/ PHILIP TAYLOR Philip Taylor Senior Managing Director, Invesco Ltd. CEO, Invesco Aim
4 AIM INTERNATIONAL GROWTH FUND SCHEDULE OF INVESTMENTS(a) April 30, 2009 (Unaudited)
SHARES VALUE ---------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS-84.11% AUSTRALIA-3.27% BHP Billiton Ltd. 1,611,179 $ 38,784,640 ---------------------------------------------------------------------------------- Cochlear Ltd. 681,139 24,600,690 ---------------------------------------------------------------------------------- QBE Insurance Group Ltd. 559,480 8,824,052 ================================================================================== 72,209,382 ================================================================================== BELGIUM-2.50% Anheuser-Busch InBev N.V.(b) 1,113,912 2,947 ---------------------------------------------------------------------------------- Anheuser-Busch InBev N.V.-Ctfs. 1,810,109 55,237,898 ================================================================================== 55,240,845 ================================================================================== CANADA-3.43% Canadian National Railway Co. 446,166 18,034,350 ---------------------------------------------------------------------------------- Canadian Natural Resources Ltd. 391,700 18,071,644 ---------------------------------------------------------------------------------- EnCana Corp. 359,753 16,419,836 ---------------------------------------------------------------------------------- Suncor Energy, Inc. 913,800 23,197,286 ================================================================================== 75,723,116 ================================================================================== DENMARK-1.79% Novo Nordisk A.S.-Class B 834,517 39,591,949 ================================================================================== FINLAND-0.65% Nokia Oyj 1,004,211 14,309,799 ================================================================================== FRANCE-3.71% Axa S.A. 513,516 8,555,317 ---------------------------------------------------------------------------------- BNP Paribas 450,351 23,706,986 ---------------------------------------------------------------------------------- Cap Gemini S.A. 278,744 10,416,783 ---------------------------------------------------------------------------------- Total S.A. 785,273 39,262,558 ================================================================================== 81,941,644 ================================================================================== GERMANY-5.51% Bayer AG 866,808 42,993,157 ---------------------------------------------------------------------------------- Deutsche Boerse AG 158,244 11,678,469 ---------------------------------------------------------------------------------- Merck KGaA 441,214 39,493,479 ---------------------------------------------------------------------------------- Puma AG Rudolf Dassler Sport 128,530 27,434,067 ================================================================================== 121,599,172 ================================================================================== GREECE-0.68% OPAP S.A. 483,355 14,987,681 ================================================================================== HONG KONG-3.24% Esprit Holdings Ltd. 3,116,000 19,099,744 ---------------------------------------------------------------------------------- Hutchison Whampoa Ltd. 5,753,000 33,773,131 ---------------------------------------------------------------------------------- Li & Fung Ltd. 6,634,000 18,673,789 ================================================================================== 71,546,664 ================================================================================== INDIA-2.84% Bharat Heavy Electricals Ltd. 806,512 26,765,099 ---------------------------------------------------------------------------------- Infosys Technologies Ltd. 1,185,006 35,907,915 ================================================================================== 62,673,014 ================================================================================== IRELAND-0.81% CRH PLC 689,585 17,930,348 ================================================================================== ISRAEL-3.01% Teva Pharmaceutical Industries Ltd.-ADR 1,512,906 66,401,444 ================================================================================== ITALY-3.54% Eni S.p.A. 1,663,601 36,046,447 ---------------------------------------------------------------------------------- Finmeccanica S.p.A. 2,978,742 41,981,919 ================================================================================== 78,028,366 ================================================================================== JAPAN-6.07% Denso Corp. 715,300 16,835,307 ---------------------------------------------------------------------------------- Fanuc Ltd. 311,200 22,405,094 ---------------------------------------------------------------------------------- Hoya Corp. 1,223,100 21,108,811 ---------------------------------------------------------------------------------- Keyence Corp. 132,100 23,269,802 ---------------------------------------------------------------------------------- Nidec Corp. 519,700 28,512,811 ---------------------------------------------------------------------------------- Toyota Motor Corp. 555,500 21,748,519 ================================================================================== 133,880,344 ================================================================================== MEXICO-3.02% America Movil S.A.B de C.V.-Series L-ADR 1,234,799 40,563,147 ---------------------------------------------------------------------------------- Grupo Televisa S.A.-ADR 1,681,764 26,033,707 ================================================================================== 66,596,854 ================================================================================== NETHERLANDS-2.78% Heineken Holding N.V. 648,455 15,316,846 ---------------------------------------------------------------------------------- Koninklijke (Royal) KPN N.V. 2,520,615 30,278,397 ---------------------------------------------------------------------------------- TNT N.V. 853,145 15,713,187 ================================================================================== 61,308,430 ================================================================================== NORWAY-0.33% Petroleum Geo-Services A.S.A.(b) 1,486,138 7,186,713 ================================================================================== PHILIPPINES-1.71% Philippine Long Distance Telephone Co. 829,050 37,749,678 ================================================================================== SINGAPORE-3.48% Keppel Corp. Ltd. 7,058,000 28,221,167 ---------------------------------------------------------------------------------- Singapore Technologies Engineering Ltd. 11,518,000 19,872,272 ---------------------------------------------------------------------------------- United Overseas Bank Ltd. 3,729,000 28,704,196 ================================================================================== 76,797,635 ==================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 5 AIM INTERNATIONAL GROWTH FUND
SHARES VALUE ---------------------------------------------------------------------------------- SPAIN-1.92% Telefonica S.A. 2,227,715 $ 42,291,236 ================================================================================== SWITZERLAND-8.72% Nestle S.A. 1,689,454 54,939,147 ---------------------------------------------------------------------------------- Roche Holding AG 515,527 65,259,440 ---------------------------------------------------------------------------------- Sonova Holding AG 478,244 31,317,336 ---------------------------------------------------------------------------------- Syngenta AG 191,896 40,936,241 ================================================================================== 192,452,164 ================================================================================== TAIWAN-1.36% Taiwan Semiconductor Manufacturing Co. Ltd. 18,014,548 30,063,287 ================================================================================== TURKEY-0.62% Akbank T.A.S. 3,575,363 13,746,906 ================================================================================== UNITED KINGDOM-19.12% Aviva PLC 1,751,997 7,991,815 ---------------------------------------------------------------------------------- BG Group PLC 1,412,112 22,694,958 ---------------------------------------------------------------------------------- British American Tobacco PLC 1,049,994 25,446,888 ---------------------------------------------------------------------------------- Capita Group PLC 1,905,118 19,175,657 ---------------------------------------------------------------------------------- Compass Group PLC 7,738,953 36,972,465 ---------------------------------------------------------------------------------- Imperial Tobacco Group PLC 2,393,737 54,703,959 ---------------------------------------------------------------------------------- Informa PLC 3,652,069 15,910,668 ---------------------------------------------------------------------------------- International Power PLC 7,756,605 28,076,581 ---------------------------------------------------------------------------------- Reckitt Benckiser Group PLC 970,628 38,207,364 ---------------------------------------------------------------------------------- Reed Elsevier PLC 2,940,276 21,818,622 ---------------------------------------------------------------------------------- Shire PLC 3,133,985 39,127,275 ---------------------------------------------------------------------------------- Smith & Nephew PLC 1,406,322 9,935,783 ---------------------------------------------------------------------------------- Tesco PLC 7,544,730 37,439,437 ---------------------------------------------------------------------------------- Vodafone Group PLC 23,561,422 43,257,807 ---------------------------------------------------------------------------------- WPP PLC 3,086,436 21,099,858 ================================================================================== 421,859,137 ================================================================================== Total Common Stocks & Other Equity Interests (Cost $1,965,353,321) 1,856,115,808 ================================================================================== PREFERRED STOCKS-1.75% BRAZIL-0.86% Petroleo Brasileiro S.A.-ADR-Pfd. 703,566 18,982,211 ================================================================================== GERMANY-0.89% Porsche Automobil Holding S.E.-Pfd. 275,038 19,694,741 ================================================================================== Total Preferred Stocks (Cost $32,105,630) 38,676,952 ================================================================================== MONEY MARKET FUNDS-11.55% Liquid Assets Portfolio-Institutional Class(c) 127,409,205 127,409,205 ---------------------------------------------------------------------------------- Premier Portfolio-Institutional Class(c) 127,409,205 127,409,205 ================================================================================== Total Money Market Funds (Cost $254,818,410) 254,818,410 ================================================================================== TOTAL INVESTMENTS-97.41% (Cost $2,252,277,361) 2,149,611,170 ================================================================================== OTHER ASSETS LESS LIABILITIES-2.59% 57,244,010 ================================================================================== NET ASSETS-100.00% $2,206,855,180 __________________________________________________________________________________ ==================================================================================
Investment Abbreviations: ADR - American Depositary Receipt Ctfs. - Certificates Pfd. - Preferred
Notes to Schedule of Investments: (a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor's. (b) Non-income producing security. (c) The money market fund and the Fund are affiliated by having the same investment advisor. See accompanying Notes to Financial Statements which are an integral part of the financial statements. 6 AIM INTERNATIONAL GROWTH FUND PORTFOLIO COMPOSITION By sector, based on Net Assets as of April 30, 2009 ------------------------------------------------------------------------- Health Care 16.3% ------------------------------------------------------------------------- Consumer Staples 12.8 ------------------------------------------------------------------------- Consumer Discretionary 11.8 ------------------------------------------------------------------------- Industrials 10.2 ------------------------------------------------------------------------- Telecommunication Services 8.8 ------------------------------------------------------------------------- Energy 8.2 ------------------------------------------------------------------------- Information Technology 7.4 ------------------------------------------------------------------------- Financials 4.7 ------------------------------------------------------------------------- Materials 4.4 ------------------------------------------------------------------------- Utilities 1.3 ------------------------------------------------------------------------- Money Market Funds Plus Other Assets Less Liabilities 14.1 _________________________________________________________________________ =========================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 7 AIM INTERNATIONAL GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) ASSETS: Investments, at value (Cost $1,997,458,951) $1,894,792,760 ---------------------------------------------------------------------------------- Investments in affiliated money market funds, at value and cost 254,818,410 ================================================================================== Total investments, at value (Cost $2,252,277,361) 2,149,611,170 ================================================================================== Foreign currencies, at value (Cost $45,350,778) 45,715,439 ---------------------------------------------------------------------------------- Receivables for: Investments sold 12,961,305 ---------------------------------------------------------------------------------- Fund shares sold 15,207,230 ---------------------------------------------------------------------------------- Dividends 11,837,444 ---------------------------------------------------------------------------------- Investment for trustee deferred compensation and retirement plans 61,095 ---------------------------------------------------------------------------------- Other assets 64,347 ================================================================================== Total assets 2,235,458,030 __________________________________________________________________________________ ================================================================================== LIABILITIES: Payables for: Investments purchased 22,230,408 ---------------------------------------------------------------------------------- Fund shares reacquired 3,377,807 ---------------------------------------------------------------------------------- Accrued fees to affiliates 1,636,961 ---------------------------------------------------------------------------------- Accrued other operating expenses 1,047,897 ---------------------------------------------------------------------------------- Trustee deferred compensation and retirement plans 309,777 ================================================================================== Total liabilities 28,602,850 ================================================================================== Net assets applicable to shares outstanding $2,206,855,180 __________________________________________________________________________________ ================================================================================== NET ASSETS CONSIST OF: Shares of beneficial interest $2,500,099,730 ---------------------------------------------------------------------------------- Undistributed net investment income 13,621,412 ---------------------------------------------------------------------------------- Undistributed net realized gain (loss) (204,471,859) ---------------------------------------------------------------------------------- Unrealized appreciation (depreciation) (102,394,103) ================================================================================== $2,206,855,180 __________________________________________________________________________________ ================================================================================== NET ASSETS: Class A $1,413,140,357 __________________________________________________________________________________ ================================================================================== Class B $ 57,942,041 __________________________________________________________________________________ ================================================================================== Class C $ 107,441,388 __________________________________________________________________________________ ================================================================================== Class R $ 39,806,928 __________________________________________________________________________________ ================================================================================== Class Y $ 10,760,683 __________________________________________________________________________________ ================================================================================== Institutional Class $ 577,763,783 __________________________________________________________________________________ ================================================================================== SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES AUTHORIZED: Class A 75,885,216 __________________________________________________________________________________ ================================================================================== Class B 3,347,227 __________________________________________________________________________________ ================================================================================== Class C 6,201,088 __________________________________________________________________________________ ================================================================================== Class R 2,157,026 __________________________________________________________________________________ ================================================================================== Class Y 577,070 __________________________________________________________________________________ ================================================================================== Institutional Class 30,635,756 __________________________________________________________________________________ ================================================================================== Class A: Net asset value per share $ 18.62 ---------------------------------------------------------------------------------- Maximum offering price per share (Net asset value of $18.62 divided by 94.50%) $ 19.70 __________________________________________________________________________________ ================================================================================== Class B: Net asset value and offering price per share $ 17.31 __________________________________________________________________________________ ================================================================================== Class C: Net asset value and offering price per share $ 17.33 __________________________________________________________________________________ ================================================================================== Class R: Net asset value and offering price per share $ 18.45 __________________________________________________________________________________ ================================================================================== Class Y: Net asset value and offering price per share $ 18.65 __________________________________________________________________________________ ================================================================================== Institutional Class: Net asset value and offering price per share $ 18.86 __________________________________________________________________________________ ==================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 8 AIM INTERNATIONAL GROWTH FUND STATEMENT OF OPERATIONS For the six months ended April 30, 2009 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding taxes of $2,761,645) $ 28,030,429 ------------------------------------------------------------------------------------------------ Dividends from affiliated money market funds 1,678,801 ================================================================================================ Total investment income 29,709,230 ================================================================================================ EXPENSES: Advisory fees 9,143,268 ------------------------------------------------------------------------------------------------ Administrative services fees 234,111 ------------------------------------------------------------------------------------------------ Custodian fees 477,641 ------------------------------------------------------------------------------------------------ Distribution fees: Class A 1,686,294 ------------------------------------------------------------------------------------------------ Class B 319,382 ------------------------------------------------------------------------------------------------ Class C 538,684 ------------------------------------------------------------------------------------------------ Class R 86,099 ------------------------------------------------------------------------------------------------ Transfer agent fees -- A, B, C, R and Y 2,714,323 ------------------------------------------------------------------------------------------------ Transfer agent fees -- Institutional 228,756 ------------------------------------------------------------------------------------------------ Trustees' and officers' fees and benefits 45,611 ------------------------------------------------------------------------------------------------ Other 433,581 ================================================================================================ Total expenses 15,907,750 ================================================================================================ Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (183,519) ================================================================================================ Net expenses 15,724,231 ================================================================================================ Net investment income 13,984,999 ================================================================================================ REALIZED AND UNREALIZED GAIN (LOSS) FROM: Net realized gain (loss) from: Investment securities (169,464,558) ------------------------------------------------------------------------------------------------ Foreign currencies (2,076,670) ================================================================================================ (171,541,228) ================================================================================================ Change in net unrealized appreciation of: Investment securities (net of foreign taxes on holdings of $(292,143)) 150,420,530 ------------------------------------------------------------------------------------------------ Foreign currencies 1,499,886 ================================================================================================ 151,920,416 ================================================================================================ Net realized and unrealized gain (loss) (19,620,812) ================================================================================================ Net increase (decrease) in net assets resulting from operations $ (5,635,813) ________________________________________________________________________________________________ ================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 9 AIM INTERNATIONAL GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2009 and the year ended October 31, 2008 (Unaudited)
APRIL 30, OCTOBER 31, 2009 2008 ------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income $ 13,984,999 $ 49,256,440 ------------------------------------------------------------------------------------------------------------ Net realized gain (loss) (171,541,228) (22,798,387) ------------------------------------------------------------------------------------------------------------ Change in net unrealized appreciation (depreciation) 151,920,416 (1,917,530,578) ============================================================================================================ Net increase (decrease) in net assets resulting from operations (5,635,813) (1,891,072,525) ============================================================================================================ Distributions to shareholders from net investment income: Class A (30,050,901) (13,953,858) ------------------------------------------------------------------------------------------------------------ Class B (549,705) -- ------------------------------------------------------------------------------------------------------------ Class C (889,900) -- ------------------------------------------------------------------------------------------------------------ Class R (569,057) (166,196) ------------------------------------------------------------------------------------------------------------ Class Y (53,454) -- ------------------------------------------------------------------------------------------------------------ Institutional Class (14,874,375) (6,882,893) ============================================================================================================ Total distributions from net investment income (46,987,392) (21,002,947) ============================================================================================================ Distributions to shareholders from net realized gains: Class A -- (147,126,696) ------------------------------------------------------------------------------------------------------------ Class B -- (13,395,707) ------------------------------------------------------------------------------------------------------------ Class C -- (15,052,389) ------------------------------------------------------------------------------------------------------------ Class R -- (2,583,518) ------------------------------------------------------------------------------------------------------------ Institutional Class -- (42,444,892) ============================================================================================================ Total distributions from net realized gains -- (220,603,202) ============================================================================================================ Share transactions-net: Class A (4,383,954) (35,569,162) ------------------------------------------------------------------------------------------------------------ Class B (17,425,356) (76,697,974) ------------------------------------------------------------------------------------------------------------ Class C (14,989,245) (17,905,343) ------------------------------------------------------------------------------------------------------------ Class R 5,341,018 15,737,049 ------------------------------------------------------------------------------------------------------------ Class Y 7,459,721 2,980,628 ------------------------------------------------------------------------------------------------------------ Institutional Class 64,367,038 154,809,196 ============================================================================================================ Net increase in net assets resulting from share transactions 40,369,222 43,354,394 ============================================================================================================ Net increase (decrease) in net assets (12,253,983) (2,089,324,280) ============================================================================================================ NET ASSETS: Beginning of period 2,219,109,163 4,308,433,443 ============================================================================================================ End of period (includes undistributed net investment income of $13,621,412 and $46,623,805, respectively) $2,206,855,180 $ 2,219,109,163 ____________________________________________________________________________________________________________ ============================================================================================================
See accompanying Notes to Financial Statements which are an integral part of the financial statements. 10 AIM INTERNATIONAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 2009 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM International Growth Fund (the "Fund") is a series portfolio of AIM International Mutual Funds (the "Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end series management investment company consisting of six separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The Fund's investment objective is long-term growth of capital. The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver shares may be subject to contingent deferred sales charges ("CDSC"). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y and Institutional Class shares are sold at net asset value. Under certain circumstances, Class R shares are subject to a CDSC. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities and Corporate Loans. The mean between the last bid and asked prices may be used to value debt obligations other than Corporate Loans. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. 11 AIM INTERNATIONAL GROWTH FUND B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COUNTRY DETERMINATION -- For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment advisor may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. D. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. G. ACCOUNTING ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. I. REDEMPTION FEES -- The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. J. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. 12 AIM INTERNATIONAL GROWTH FUND K. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. Fluctuations in the value of these contracts are recorded as unrealized appreciation (depreciation) until the contracts are closed. When these contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. The Fund could be exposed to risk, which may be in excess of the amount reflected in the Statement of Assets and Liabilities, if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES The Trust has entered into a master investment advisory agreement with Invesco Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Advisor based on the annual rate of the Fund's average daily net assets as follows:
AVERAGE NET ASSETS RATE ------------------------------------------------------------------- First $250 million 0.935% ------------------------------------------------------------------- Next $250 million 0.91% ------------------------------------------------------------------- Next $500 million 0.885% ------------------------------------------------------------------- Next $1.5 billion 0.86% ------------------------------------------------------------------- Next $2.5 billion 0.835% ------------------------------------------------------------------- Next $2.5 billion 0.81% ------------------------------------------------------------------- Next $2.5 billion 0.785% ------------------------------------------------------------------- Over $10 billion 0.76% ___________________________________________________________________ ===================================================================
Under the terms of a master sub-advisory agreement approved by shareholders of the Fund between the Advisor and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-Advisor(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Advisor(s). Further, the Advisor has contractually agreed, through at least June 30, 2009, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Advisor receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. For the six months ended April 30, 2009, the Advisor waived advisory fees of $168,776. At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the AIM Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended April 30, 2009, Invesco reimbursed expenses of the Fund in the amount of $1,819. The Trust has entered into a master administrative services agreement with Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees. The Trust has entered into a transfer agency and service agreement with Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has agreed to pay IAIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the course of providing such services. IAIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IAIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust's Board of Trustees. For the six months ended April 30, 2009, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees. The Trust has entered into master distribution agreements with Invesco Aim Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A, Class B, Class C and Class R shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays IADI compensation at the annual rate of 0.25% of the Fund's average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended April 30, 2009, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees. Front-end sales commissions and CDSC (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2009, IADI advised the Fund that IADI retained $40,933 in front-end sales commissions from the sale 13 AIM INTERNATIONAL GROWTH FUND of Class A shares and $12,828, $70,477, $11,071 and $0 from Class A, Class B, Class C and Class R shares, respectively, for CDSC imposed on redemptions by shareholders. Certain officers and trustees of the Trust are officers and directors of Invesco Aim, IAIS and/or IADI. NOTE 3--SUPPLEMENTAL INFORMATION The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level: Level 1 -- Prices are determined using quoted prices in an active market for identical assets. Level 2 -- Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level 3 -- Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. The following is a summary of the tiered valuation input levels, as of the end of the reporting period, April 30, 2009. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
INVESTMENTS IN INPUT LEVEL SECURITIES -------------------------------------- Level 1 $ 725,982,918 -------------------------------------- Level 2 1,423,628,252 -------------------------------------- Level 3 -- ====================================== $2,149,611,170 ______________________________________ ======================================
NOTE 4--EXPENSE OFFSET ARRANGEMENT The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2009, the Fund received credits from this arrangement, which resulted in the reduction of the Fund's total expenses of $12,924. NOTE 5--TRUSTEES' AND OFFICERS' FEES AND BENEFITS "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and "Trustees' and Officers' Fees and Benefits" also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various AIM Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. "Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund. During the six months ended April 30, 2009, the Fund paid legal fees of $5,492 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. NOTE 6--CASH BALANCES The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco Aim, not to exceed the contractually agreed upon rate. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end. 14 AIM INTERNATIONAL GROWTH FUND Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. Under these limitation rules, the Fund is limited to utilizing $29,246,801 of capital loss carryforward in the fiscal year ending October 31, 2009. The Fund had a capital loss carryforward as of October 31, 2008 which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD* ----------------------------------------------------------------------------------------------- October 31, 2009 $ 5,995,076 ----------------------------------------------------------------------------------------------- October 31, 2016 23,251,725 =============================================================================================== Total capital loss carryforward $29,246,801 _______________________________________________________________________________________________ ===============================================================================================
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2009 was $285,293,232 and $316,855,807, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS ------------------------------------------------------------------------------------------------ Aggregate unrealized appreciation of investment securities $ 240,546,244 ------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (346,896,264) ================================================================================================ Net unrealized appreciation (depreciation) of investment securities $(106,350,020) ________________________________________________________________________________________________ ================================================================================================ Cost of investments for tax purposes is $2,255,961,190.
15 AIM INTERNATIONAL GROWTH FUND NOTE 9--SHARE INFORMATION
SUMMARY OF SHARE ACTIVITY -------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED APRIL 30, 2009(a) OCTOBER 31, 2008 ----------------------------- ----------------------------- SHARES AMOUNT SHARES AMOUNT -------------------------------------------------------------------------------------------------------------------------- Sold: Class A 13,976,598 $ 247,386,546 19,910,599 $ 565,878,754 -------------------------------------------------------------------------------------------------------------------------- Class B 181,007 2,976,862 709,506 18,970,270 -------------------------------------------------------------------------------------------------------------------------- Class C 564,537 9,343,885 1,508,599 41,270,149 -------------------------------------------------------------------------------------------------------------------------- Class R 678,476 11,849,757 1,103,116 31,288,523 -------------------------------------------------------------------------------------------------------------------------- Class Y(b) 475,377 8,011,127 134,135 2,998,043 -------------------------------------------------------------------------------------------------------------------------- Institutional Class 7,320,100 130,394,476 10,030,019 289,520,256 ========================================================================================================================== Issued as reinvestment of dividends: Class A 1,521,665 27,146,521 4,687,277 147,930,456 -------------------------------------------------------------------------------------------------------------------------- Class B 31,079 516,839 426,643 12,470,766 -------------------------------------------------------------------------------------------------------------------------- Class C 49,591 825,695 477,714 13,977,906 -------------------------------------------------------------------------------------------------------------------------- Class R 32,142 568,908 87,982 2,748,565 -------------------------------------------------------------------------------------------------------------------------- Class Y 2,893 51,635 -- -- -------------------------------------------------------------------------------------------------------------------------- Institutional Class 800,447 14,432,059 1,506,370 48,158,659 ========================================================================================================================== Automatic conversion of Class B shares to Class A shares: Class A 611,974 10,800,604 2,175,520 61,688,875 -------------------------------------------------------------------------------------------------------------------------- Class B (658,856) (10,800,604) (2,356,007) (61,688,875) ========================================================================================================================== Reacquired:(c) Class A(b) (16,526,897) (289,717,625) (29,755,552) (811,067,247) -------------------------------------------------------------------------------------------------------------------------- Class B (628,000) (10,118,453) (1,802,439) (46,450,135) -------------------------------------------------------------------------------------------------------------------------- Class C (1,552,426) (25,158,825) (2,935,314) (73,153,398) -------------------------------------------------------------------------------------------------------------------------- Class R (405,399) (7,077,647) (675,005) (18,300,039) -------------------------------------------------------------------------------------------------------------------------- Class Y (34,456) (603,041) (879) (17,415) -------------------------------------------------------------------------------------------------------------------------- Institutional Class (4,689,540) (80,459,497) (6,783,940) (182,869,719) ========================================================================================================================== Net increase (decrease) in share activity 1,750,312 $ 40,369,222 (1,551,656) $ 43,354,394 __________________________________________________________________________________________________________________________ ==========================================================================================================================
(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 29% of the outstanding shares of the Fund. IADI has an agreement with these entities to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco Aim and/or Invesco Aim affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. In addition, 7% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco Aim. (b) Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A shares into Class Y shares of the Fund:
CLASS SHARES AMOUNT ---------------------------------------------------------------------------------------------------- Class Y 133,308 $ 2,980,767 ---------------------------------------------------------------------------------------------------- Class A (133,308) (2,980,767) ____________________________________________________________________________________________________ ====================================================================================================
(c) Net of redemption fees of $76,242 and $146,051 which were allocated among the classes based on relative net assets of each class for the six months ended April 30, 2009 and the year ended October 31, 2008, respectively. 16 AIM INTERNATIONAL GROWTH FUND NOTE 10--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
NET GAINS (LOSSES) NET ASSET NET ON SECURITIES DIVIDENDS DISTRIBUTIONS VALUE, INVESTMENT (BOTH TOTAL FROM FROM NET FROM NET NET ASSET BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL VALUE, END OF PERIOD (LOSS)(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD(b) ----------------------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 $19.04 $ 0.11 $ (0.14) $ (0.03) $(0.39) $ -- $(0.39) $18.62 Year ended 10/31/08 36.57 0.40 (15.91) (15.51) (0.18) (1.84) (2.02) 19.04 Year ended 10/31/07 27.85 0.28 8.72 9.00 (0.19) (0.09) (0.28) 36.57 Year ended 10/31/06 21.63 0.14 6.26 6.40 (0.18) -- (0.18) 27.85 Year ended 10/31/05 18.16 0.11 3.36 3.47 -- -- -- 21.63 Year ended 10/31/04 15.23 0.05 2.90 2.95 (0.02) -- (0.02) 18.16 ----------------------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 17.52 0.04 (0.12) (0.08) (0.13) -- (0.13) 17.31 Year ended 10/31/08 33.88 0.17 (14.69) (14.52) -- (1.84) (1.84) 17.52 Year ended 10/31/07 25.84 0.03 8.10 8.13 -- (0.09) (0.09) 33.88 Year ended 10/31/06 20.08 (0.05) 5.83 5.78 (0.02) -- (0.02) 25.84 Year ended 10/31/05 16.99 (0.03) 3.12 3.09 -- -- -- 20.08 Year ended 10/31/04 14.32 (0.07) 2.74 2.67 -- -- -- 16.99 ----------------------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 17.53 0.04 (0.11) (0.07) (0.13) -- (0.13) 17.33 Year ended 10/31/08 33.91 0.17 (14.71) (14.54) -- (1.84) (1.84) 17.53 Year ended 10/31/07 25.86 0.03 8.11 8.14 -- (0.09) (0.09) 33.91 Year ended 10/31/06 20.10 (0.05) 5.83 5.78 (0.02) -- (0.02) 25.86 Year ended 10/31/05 17.00 (0.03) 3.13 3.10 -- -- -- 20.10 Year ended 10/31/04 14.33 (0.07) 2.74 2.67 -- -- -- 17.00 ----------------------------------------------------------------------------------------------------------------------------------- CLASS R Six months ended 04/30/09 18.80 0.09 (0.13) (0.04) (0.31) -- (0.31) 18.45 Year ended 10/31/08 36.18 0.32 (15.74) (15.42) (0.12) (1.84) (1.96) 18.80 Year ended 10/31/07 27.58 0.20 8.63 8.83 (0.14) (0.09) (0.23) 36.18 Year ended 10/31/06 21.43 0.07 6.21 6.28 (0.13) -- (0.13) 27.58 Year ended 10/31/05 18.04 0.07 3.32 3.39 -- -- -- 21.43 Year ended 10/31/04 15.14 0.01 2.89 2.90 -- -- -- 18.04 ----------------------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 19.04 0.13 (0.12) 0.01 (0.40) -- (0.40) 18.65 Year ended 10/31/08(f) 22.36 0.02 (3.34) (3.32) -- -- -- 19.04 ----------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL CLASS Six months ended 04/30/09 19.36 0.16 (0.14) 0.02 (0.52) -- (0.52) 18.86 Year ended 10/31/08 37.14 0.52 (16.17) (15.65) (0.29) (1.84) (2.13) 19.36 Year ended 10/31/07 28.26 0.42 8.84 9.26 (0.29) (0.09) (0.38) 37.14 Year ended 10/31/06 21.97 0.25 6.35 6.60 (0.31) -- (0.31) 28.26 Year ended 10/31/05 18.34 0.25 3.38 3.63 -- -- -- 21.97 Year ended 10/31/04 15.37 0.15 2.93 3.08 (0.11) -- (0.11) 18.34 ___________________________________________________________________________________________________________________________________ =================================================================================================================================== RATIO OF RATIO OF EXPENSES EXPENSES TO AVERAGE TO AVERAGE NET RATIO OF NET NET ASSETS ASSETS WITHOUT INVESTMENT NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME (LOSS) TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO RETURN(c) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(d) -------------------------------------------------------------------------------------------------------------------- CLASS A Six months ended 04/30/09 (0.06)% $1,413,140 1.57%(e) 1.59%(e) 1.29%(e) 16% Year ended 10/31/08 (47.34) 1,452,469 1.44 1.45 1.38 38 Year ended 10/31/07 32.55 2,899,666 1.44 1.47 0.87 22 Year ended 10/31/06 29.73 1,908,453 1.54 1.58 0.53 37 Year ended 10/31/05 19.11 1,447,049 1.69 1.74 0.54 37 Year ended 10/31/04 19.40 1,288,548 1.70 1.74 0.27 54 -------------------------------------------------------------------------------------------------------------------- CLASS B Six months ended 04/30/09 (0.42) 57,942 2.32(e) 2.34(e) 0.54(e) 16 Year ended 10/31/08 (45.03) 77,465 2.19 2.20 0.63 38 Year ended 10/31/07 31.55 252,203 2.19 2.22 0.12 22 Year ended 10/31/06 28.80 247,939 2.29 2.33 (0.22) 37 Year ended 10/31/05 18.19 250,056 2.41 2.46 (0.18) 37 Year ended 10/31/04 18.64 301,380 2.40 2.44 (0.43) 54 -------------------------------------------------------------------------------------------------------------------- CLASS C Six months ended 04/30/09 (0.36) 107,441 2.32(e) 2.34(e) 0.54(e) 16 Year ended 10/31/08 (45.05) 125,172 2.19 2.20 0.63 38 Year ended 10/31/07 31.57 274,266 2.19 2.22 0.12 22 Year ended 10/31/06 28.78 183,360 2.29 2.33 (0.22) 37 Year ended 10/31/05 18.24 132,387 2.41 2.46 (0.18) 37 Year ended 10/31/04 18.63 116,136 2.40 2.44 (0.43) 54 -------------------------------------------------------------------------------------------------------------------- CLASS R Six months ended 04/30/09 (0.16) 39,807 1.82(e) 1.84(e) 1.04(e) 16 Year ended 10/31/08 (44.78) 34,821 1.69 1.70 1.13 38 Year ended 10/31/07 32.21 48,321 1.69 1.72 0.62 22 Year ended 10/31/06 29.41 19,070 1.79 1.83 0.28 37 Year ended 10/31/05 18.79 8,700 1.91 1.96 0.32 37 Year ended 10/31/04 19.15 2,450 1.90 1.94 0.07 54 -------------------------------------------------------------------------------------------------------------------- CLASS Y Six months ended 04/30/09 0.12 10,761 1.32(e) 1.34(e) 1.54(e) 16 Year ended 10/31/08(f) (14.85) 2,537 1.25(g) 1.27(g) 1.57(g) 38 -------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL CLASS Six months ended 04/30/09 0.23 577,764 1.06(e) 1.08(e) 1.80(e) 16 Year ended 10/31/08 (44.38) 526,647 1.03 1.04 1.79 38 Year ended 10/31/07 33.13 833,977 1.02 1.05 1.30 22 Year ended 10/31/06 30.32 288,408 1.08 1.12 0.99 37 Year ended 10/31/05 19.79 98,912 1.07 1.12 1.16 37 Year ended 10/31/04 20.15 13,345 1.13 1.17 0.84 54 ____________________________________________________________________________________________________________________ ====================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. (c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. (d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. (e) Ratios are annualized and based on average daily net assets (000's omitted) of $1,360,215, $64,406, $108,630, $34,725, $4,830 and $520,286 for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively. (f) Commencement date of October 3, 2008. (g) Annualized. 17 AIM INTERNATIONAL GROWTH FUND NOTE 11--LEGAL PROCEEDINGS Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note. SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING On May 23, 2008, the Securities and Exchange Commission ("SEC") publicly posted its final approval of the Distribution Plans ("Distribution Plans") for the distribution of monies placed into two separate Fair Funds created pursuant to a settlement reached on October 8, 2004 between Invesco Funds Group, Inc. ("IFG"), Invesco Aim Advisors, Inc. ("Invesco Aim") and Invesco Aim Distributors, Inc. ("IADI") and the SEC (the "Order"). One of the Fair Funds consists of $325 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds formerly advised by IFG who may have been harmed by market timing and related activity. The second Fair Fund consists of $50 million, plus interest and any contributions by other settling parties, for distribution to shareholders of certain mutual funds advised by Invesco Aim who may have been harmed by market timing and related activity. The Distribution Plans provide for the distribution to all eligible investors to compensate such investors for injury they may have suffered as a result of market timing in the affected funds. The Distribution Plans include a provision for any residual amounts in the Fair Funds to be distributed in the future to the affected funds. At this time, management of Invesco Aim and the Fund are unable to estimate the residual distribution to the Fund, if any. At the request of the trustees of the AIM Funds, Invesco Ltd. ("Invesco"), the parent company of IFG and Invesco Aim, has agreed to reimburse expenses incurred by the AIM Funds related to market timing matters. PENDING LITIGATION AND REGULATORY INQUIRIES Civil lawsuits, including purported class action and shareholder derivative suits, have been filed against certain of the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals alleging that the defendants permitted improper market timing and related activity in the AIM Funds. These lawsuits allege as theories of recovery, depending on the lawsuit, violations of various provisions of the Federal and state securities laws and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), negligence, breach of fiduciary duty and/or breach of contract. These lawsuits seek remedies that include, depending on the lawsuit, damages, restitution, injunctive relief, imposition of a constructive trust, removal of certain directors and/or employees, various corrective measures under ERISA, rescission of certain AIM Funds' advisory agreements and/or distribution plans and recovery of all fees paid. All lawsuits based on allegations of market timing, late trading and related issues were transferred to the United States District Court for the District of Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in these lawsuits consolidated their claims for pre-trial purposes into three amended complaints against various Invesco Aim- and IFG-related parties: (i) a Consolidated Amended Class Action Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly brought on behalf of participants in the Invesco 401(k) plan. Based on orders issued by the MDL Court, all claims asserted against the AIM Funds that have been transferred to the MDL Court have been dismissed, although certain Funds remain nominal defendants in the Consolidated Amended Fund Derivative Complaint. On January 5, 2008, the parties reached an agreement in principle to settle both the Consolidated Amended Class Action Complaint and Consolidated Amended Fund Derivative Complaint, subject to the MDL Court approval. Individual class members have the right to object. On December 15, 2008, the parties reached an agreement in principle to settle the Amended Class Action Complaint for Violations of ERISA, subject to the MDL Court approval. Individual class members have the right to object. No payments are required under the settlement; however, the parties agreed that certain limited changes to benefit plans and participants' accounts would be made. IFG, Invesco Aim, IADI and/or related entities and individuals have received inquiries from numerous regulators in the form of subpoenas or other oral or written requests for information and/or documents related to one or more of the following issues, among others, some of which concern one or more AIM Funds: market timing activity, late trading, fair value pricing, excessive or improper advisory and/or distribution fees, mutual fund sales practices, including revenue sharing and directed-brokerage arrangements, investments in securities of other registered investment companies, contractual plans, issues related to Section 529 college savings plans and procedures for locating lost security holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing full cooperation with respect to these inquiries. Regulatory actions and/or additional civil lawsuits related to these or other issues may be filed against the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in the future. 18 AIM INTERNATIONAL GROWTH FUND CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
--------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO --------------------------------------------------------------------------------------------------- A $1,000.00 $ 999.40 $ 7.78 $1,017.01 $ 7.85 1.57% --------------------------------------------------------------------------------------------------- B 1,000.00 995.80 11.48 1,013.29 11.58 2.32 --------------------------------------------------------------------------------------------------- C 1,000.00 996.40 11.48 1,013.29 11.58 2.32 --------------------------------------------------------------------------------------------------- R 1,000.00 998.40 9.02 1,015.77 9.10 1.82 --------------------------------------------------------------------------------------------------- Y 1,000.00 1,001.20 6.55 1,018.25 6.61 1.32 ---------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. 19 AIM INTERNATIONAL GROWTH FUND Supplement to Semiannual Report dated 4/30/09 AIM INTERNATIONAL GROWTH FUND ========================================== AVERAGE ANNUAL TOTAL RETURNS A redemption fee of 2% will be imposed INSTITUTIONAL CLASS SHARES For periods ended 4/30/09 on certain redemptions or exchanges out of the Fund within 31 days of purchase. The following information has been Inception (3/15/02) 5.02% Exceptions to the redemption fee are prepared to provide Institutional Class 5 Years 4.57 listed in the Fund's prospectus. shareholders with a performance overview 1 Year -36.71 specific to their holdings. Institutional 6 Months* 0.23 Please note that past performance is Class shares are offered exclusively to ========================================== not indicative of future results. More institutional investors, including defined recent returns may be more or less than contribution plans that meet certain ========================================== those shown. All returns assume criteria. AVERAGE ANNUAL TOTAL RETURNS reinvestment of distributions at NAV. For periods ended 3/31/09, most recent Investment return and principal value will calendar quarter-end fluctuate so your shares, when redeemed, may be worth more or less than their Inception (3/15/02) 4.08% original cost. See full report for 5 Years 2.74 information on comparative benchmarks. 1 Year -38.85 Please consult your Fund prospectus for 6 Months* -24.46 more information. For the most current month-end performance, please call 800 * Cumulative total return that has not 4514246 or visit invescoaim.com. been annualized ========================================== (1) Total annual operating expenses less any contractual fee waivers and/or Institutional Class shares have no sales expense reimbursements by the advisor charge; therefore, performance is at net in effect through at least June asset value (NAV). Performance of 30,2009. See current prospectus for Institutional Class shares will differ more information. from performance of other share classes primarily due to differing sales charges and class expenses. The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this supplement for Institutional Class shares was 1.04%.(1) The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this supplement for Institutional Class shares was 1.05%. The expense ratios presented above may vary from the expense ratios presented in other sections of the actual report that are based on expenses incurred during the period covered by the report. Over for information on your Fund's expenses. THIS SUPPLEMENT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. FOR INSTITUTIONAL INVESTOR USE ONLY This material is for institutional investor use only and may not be quoted, reproduced or shown to the public, nor used in written form as sales literature for public use. [INVESCO AIM LOGO] invescoaim.com IGR-INS-2 Invesco Aim Distributors, Inc. --SERVICE MARK--
CALCULATING YOUR ONGOING FUND EXPENSES EXAMPLE As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2008, through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
----------------------------------------------------------------------------------------------------------- HYPOTHETICAL (5% ANNUAL RETURN BEFORE ACTUAL EXPENSES) ------------------------------------------------------ BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE CLASS (11/01/08) (04/30/09)(1) PERIOD(2) (04/30/09) PERIOD(2) RATIO ----------------------------------------------------------------------------------------------------------- Institutional $1,000.00 $1,002.30 $5.26 $1,019.54 $5.31 1.06% -----------------------------------------------------------------------------------------------------------
(1) The actual ending account value is based on the actual total return of the Fund for the period November 1, 2008, through April 30, 2009, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio and a hypothetical annual return of 5% before expenses. (2) Expenses are equal to the Fund's annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. AIM INTERNATIONAL GROWTH FUND [GO PAPERLESS GRAPHIC] ==================================================================================================================================== GO PAPERLESS WITH EDELIVERY Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all about eeees: o ENVIRONMENTALLY FRIENDLY. Go green by reducing the number of o EFFICIENT. Stop waiting for regular mail. Your documents trees used to produce paper. will be sent via email as soon as they're available. o ECONOMICAL. Help reduce your fund's printing and delivery o EASY. Download, save and print files using your home expenses and put more capital back in your fund's returns. computer with a few clicks of your mouse. This service is provided by Invesco Aim Investment Services, Inc. ==================================================================================================================================== FUND HOLDINGS AND PROXY VOTING INFORMATION The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-06463 and 033-44611. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov. If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim Quarterly Performance Review for the most recent quarter-end. Invesco Aim --SERVICE MARK-- is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund's prospectus for information on the fund's subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, [INVESCO AIM LOGO] Inc., Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco --SERVICE MARK-- Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com on or about the end of the fourth quarter of 2009. invescoaim.com IGR-SAR-1 Invesco Aim Distributors, Inc.
ITEM 2. CODE OF ETHICS. There were no amendments to the Code of Ethics (the "Code") that applies to the Registrant's Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO") during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. None. ITEM 11. CONTROLS AND PROCEDURES. (a) As of June 15, 2009, 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 (the "Act"), as amended. Based on that evaluation, the Registrant's officers, including the PEO and PFO, concluded that, as of June 15, 2009, the Registrant's disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR 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 second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 12. EXHIBITS. 12(a) (1) Not applicable. 12(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. 12(a) (3) Not applicable. 12(b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) 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 International Mutual Funds By: /s/ Philip A. Taylor -------------------------------- Philip A. Taylor Principal Executive Officer Date: July 6, 2009 Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ Philip A. Taylor -------------------------------- Philip A. Taylor Principal Executive Officer Date: July 6, 2009 By: /s/ Sheri Morris -------------------------------- Sheri Morris Principal Financial Officer Date: July 6, 2009 EXHIBIT INDEX 12(a) (1) Not applicable. 12(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. 12(a) (3) Not applicable. 12(b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.