-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B7VISQuqYQ1r/y16fR4FZsYGxx4ReKywbks8+Jfu2+rzzKhn2n17uK2MKI1x+4td Ax+VUoI5lt6leLEz6gWuQg== 0000950129-96-001437.txt : 19960703 0000950129-96-001437.hdr.sgml : 19960703 ACCESSION NUMBER: 0000950129-96-001437 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960702 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIM INTERNATIONAL FUNDS INC CENTRAL INDEX KEY: 0000880859 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 760352823 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06463 FILM NUMBER: 96590232 BUSINESS ADDRESS: STREET 1: 11 GREENWAY PLAZA STE 1919 CITY: HOUSTON STATE: TX ZIP: 77046 BUSINESS PHONE: 7136261919 MAIL ADDRESS: STREET 1: AIM INTERNATIONAL FUNDS INC STREET 2: 11 GREENWAY PLAZA SUITE 1919 CITY: HOUSTON STATE: TX ZIP: 77210-4333 N-30D 1 AIM INTERNATIONAL FUNDS - INT.'L EQUITY-SEMIANNUAL 1 [COVER PHOTO APPEARS HERE] AIM INTERNATIONAL EQUITY FUND [AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1996 2 AIM INTERNATIONAL EQUITY FUND For shareholders who seek long-term growth of capital. The Fund invests in a diversified portfolio of international equity securities which its investment advisor believes will have strong earnings momentum. ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT: o AIM International Equity Fund's performance figures are historical and reflect reinvestment of all distributions and changes in net asset value. Unless otherwise indicated, the Fund's performance is computed without a sales charge. o When sales charges are included in performance figures, Class A share performance reflects the maximum 5.50% sales charge, and Class B share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The performance of the Fund's Class B shares will differ from that of Class A shares due to differences in sales charge structure and Fund expenses. o The Fund's investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. o The Fund's portfolio composition is subject to change and there is no assurance the Fund will continue to hold any one particular security. o Past performance cannot guarantee comparable future results. o International investing presents certain risks not associated with investing solely in the U.S. These include risks relating to fluctuations in the value of the U.S. dollar relative to the value of other currencies, the custody arrangements made for the Fund's foreign holdings, differences in accounting, political risks, and the lesser degree of public information required to be provided by non-U.S. companies. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o Lipper Analytical Services, Inc. is an independent mutual fund performance monitor. The unmanaged Lipper International Fund Index represents an average of the performance of the 30 largest international mutual funds. o The Europe, Australia, and Far East Index (EAFE) is a group of unmanaged foreign securities tracked by Morgan Stanley Capital International. o An investment cannot be made in any index listed. Unless otherwise indicated, index results include reinvested dividends and do not reflect sales charges. This report may be distributed only to current shareholders or to persons who have received a current prospectus of the Fund. 3 A Message from the Chairman - --------------------------- At $3 trillion in assets, the industry has grown 1,500 times over the past 50 years. If we are to sustain that growth, we must have the public's confidence. - --------------------------- DEAR SHAREHOLDER: "Past performance cannot guarantee comparable future results." As a mutual fund investor, you've seen this disclaimer on every piece of mail you've ever received about your fund. You've seen it so often that you probably don't even think about it or question what it means. But you should. [PHOTO That sentence about past performance is true now more than Charles T. ever. These days it bluntly means: "Don't expect the 25% Bauer, to 35% returns you received last year." Don't automatically Chairman of expect the 15% to 20% returns of the past decade, either. the Board of History shows that the average annual return is about 9% to the Fund, 10%. If you're investing in mutual funds with expectations of APPEARS HERE] double-digit returns every year, you will be disappointed. Maybe not today, but sometime in the future. What is a realistic expectation for 1996? In this uncertain market, it is easier to discuss what is unrealistic. Last year's performance was an anomaly--the equivalent of euphoria. To expect a repeat is unrealistic. I realize I am sounding a warning bell during the mutual fund industry's best year ever. Investors like you poured $99 billion into stock mutual funds during the first four months of 1996--the highest inflows on record. At $3 trillion in assets, the industry has grown 1,500 times over the past 50 years. If we are to sustain that growth, we must have the public's confidence. Our industry has a long-standing reputation for honesty and integrity. To maintain that reputation as our assets swell into the trillions, we must make sure that we don't promise anything we can't produce. The industry's concern about investors' expectations goes beyond stamping all our advertising with a standard disclaimer about performance. Mutual fund leaders recently met for a conference in New York, and foremost on our minds was educating investors about market volatility. A whole generation of investors has seen nothing but a bull market, which started in 1982. Except for the 1987 market crash, they've enjoyed a heady rise. They may expect the same throughout this decade. I've been in the mutual fund industry for more than 25 years, and I have seen a 5% to 10% market correction about every five years. The last major correction was in 1990. If history is any kind of teacher, we are overdue. The challenge for investors is not to panic when the market takes a downturn. We have another saying in the industry: "Focus on time, not timing." Over time, the stock market has proven to be the only investment that consistently beats inflation. But investing in it takes a long-term view. Market timing--trying to play the market and "rescue" your money in a downturn--has proven to be an inefficient strategy for most investors. The challenge for the mutual fund industry is to keep your trust during a bear market. The industry has survived and thrived because of its built-in integrity: By law, we must operate in the best interests of our shareholders. The mutual fund industry is among the most regulated in the country. The Investment Company Act of 1940, which governs our industry, protects shareholders against self-dealing, conflicts of interest, misappropriation of funds, and other fraudulent activities. The industry also polices itself. At AIM we have an exhaustive code of ethics that governs each of our 1,150 employees. (continued) 4 A Message from the Chairman On a very basic level, it boils down to this: We are dealing with your money, and if we lose your trust, we lose our business. We are vulnerable to even the hint of impropriety. That's why the mutual fund industry is set up to avoid even the perception of self-dealing. Fund managers succeed to the extent that they attract and keep investors. If they lose your faith, managers ultimately will fail. Mutual funds are highly liquid investments. Any time you choose, you can pull out of a fund and receive a redemption price reflective of the market that day. If you become dissatisfied with a fund manager, it's easy to leave and go elsewhere. With more than 7,000 funds available, it's a buyers' market. The next time you read, "Past performance cannot guarantee comparable future results," think about your own expectations as an investor. We cannot promise you another year like 1995. But we can promise to manage your money with honesty and integrity. Respectfully submitted, /s/ CHARLES T. BAUER Charles T. Bauer Chairman On the following pages is a complete discussion of your Fund's performance and investment strategy. If you have any questions or comments about this report, please call our Client Services department at 800-959-4246 during normal business hours. For automated account information 24 hours a day, call the AIM Investor Line toll-free at 800-246-5463. 2 5 Management's Discussion & Analysis - ----------------------- AIM International Equity Fund was invested in 179 holdings spread across 54 industries in 29 countries as of April 30, 1996. - ----------------------- - ------------- [COVER PHOTO AIM INTERNATIONAL EQUITY FUND APPEARS HERE] INVESTS IN TOP WORLD MARKETS - ------------- MARKET RECAP Following a disappointing performance in 1995, foreign stocks bounced back in 1996. Adjusted for U.S. dollars, 15 foreign equity markets outperformed U.S. stocks in the first calendar quarter of 1996, according to Morgan Stanley Capital International. A number of positive developments in foreign economies distinguished 1996 from 1995. Declining interest rates, strengthening economies, and positive earnings trends encouraged investors to bid up stocks and currencies in several key markets. A rising U.S. dollar improved the profitability of European, Japanese, and Asian exports. Lower interest rates also encouraged investors to favor stocks over local fixed-income investments. Asia led world markets in performance during the six months covered by this report, based on U.S. dollars. Taiwan and Malaysia led the advance in Asian markets, closely followed by the Philippines and Indonesia. The top-performing industries in Asia were insurance, real estate, auto manufacturing and equipment, airlines, and selected retailers. Japan, which has the largest non-U.S. stock market--some 40% of the EAFE Index--rebounded sharply from 1995 lows amid signs that the specter of deflation had diminished. Encouraging economic reports, including an improving retail sector and declining unemployment levels, prompted a number of analysts to revise upward their growth projections for 1996. Spain and Italy were the top performing European markets in 1996 thanks to strong earnings projections. Much of Europe remained plagued by slow growth due to an absence of any meaningful recovery in consumer demand. Germany faced daunting labor pressures and political struggles over its climbing budget deficit. Nonetheless, continuing restructuring efforts throughout Europe have bolstered corporate profits and encouraged a surge in =================================================== [PHOTO OF WORLD GLOBE APPEARS HERE] A GLOBAL VIEW =================================================== TOP 10 WORLD MARKETS 10/31/95-4/30/96 AVERAGE ANNUAL TOTAL RETURN IN U.S. DOLLARS 1. Argentina 37.66% 2. Taiwan 32.40 3. Mexico 30.07 4. Indonesia 28.10 5. Malaysia 27.68 6. Spain 24.04 7. Peru 21.12 8. Japan 18.08 9. Italy 16.95 10. Hong Kong 15.97 Source: Morgan Stanley Capital International =================================================== mergers and acquisitions in such sectors as telecommunications, pharmaceuticals, and insurance. Energy and air freight industries were the leading performers, followed by leisure, home furnishings, advertising, and broadcasting. Latin American markets began to recover from the negative influence of Mexico's financial crisis in 1994. Argentina and Chile were the leading emerging markets in the first quarter of 1996, based on U.S. dollars. YOUR FUND'S INVESTMENT STRATEGY AIM International Equity Fund performed well during the six-month period ended April 30, 1996, tracking the performance of foreign stocks in general. Total return for the Fund was 13.44% and 12.99% for Class A and Class B 3 6 Management's Discussion & Analysis =============================================================================== LIPPER RANKINGS AS OF APRIL 30, 1996. =============================================================================== RANK VS. INTERNAT'L FUNDS TRACKED PERCENTILE RANK BY LIPPER RANK ---- ---------- ---------- 1 year 14 of 281 5% 3 years 8 of 125 6 - ------------------------------------------------------------------------------- The Fund's Class B shares ranked 21 of 281 international funds, which ranked in the top 7% over the one-year period ended 4/30/96. Total return performance rankings are vs. all international funds tracked by Lipper, excluding all sales charges, and including fees and expenses. =============================================================================== shares, respectively. Foreign company stocks gained 13.21%, as measured by Morgan Stanley's unmanaged Europe, Australia, and Far East Index (EAFE). The Fund's favorable market performance contributed to an increase in net assets from $706.7 million to $1.15 billion. The Fund invested in some of the better-performing Asian markets including Hong Kong and Malaysia, and top European markets including France, the Netherlands, Spain, and Italy. As of April 30, 1996, the Fund's bottom-up investment strategy had resulted in 179 holdings spread across 54 industries in 29 countries. Given the strength of the U.S. dollar during the reporting period, the Fund emphasized foreign companies that were generating revenue in U.S. dollars. For example, a surging dollar benefits Japan's export businesses. Keep in mind, the Fund's portfolio composition may change and there is no assurance the Fund will continue to hold specific securities in any particular country. PACIFIC BASIN AND LATIN AMERICA. The Fund's Japanese holdings--which comprised 21% of the portfolio--emphasized selected electronics companies including Yamaha Corp. and Sony Corp., and machinery companies Okuma Corp. and Komatsu Ltd. Among the Fund's largest holdings were Japan's Honda Motor Company and Toyota Motor Corp. The Fund increased holdings in real estate companies, including Cheung Kong Holdings Ltd. and Sun Hung Kai Properties Ltd. in Hong Kong, and added Singapore's DBS Land Ltd. The Fund's foreign bank holdings emphasized Thailand banks including Krung Thai Bank PLC, Malaysia's Malayan Banking Berhad, and Indonesia's PT Bank International Indonesia. The Fund added to positions in Argentina, Brazil, and Chile. EUROPE. The Fund increased weightings in telecommunications companies, including Italy's Telecom Italia Mobile S.p.A., United Kingdom retailer Next PLC was added, and holdings in Dixons Group PLC were increased. Also new to the Fund were business services vendor Sodexho SA and electronics maker Schneider SA from France. Among the Fund's largest holdings were in Switzerland pharmaceutical companies Ciba-Geigy Ltd. and Sandoz Ltd., and French retailer Pinault-Printemps-Redoute, S.A. OUTLOOK FOR THE FUTURE Japan's financial position has been strengthened by the strong U.S. dollar. If that country can manage to realize analysts' projections for 3% annual economic growth, it could possibly ==================================== =================================== TOP 10 EQUITY HOLDINGS TOP 10 COUNTRIES As of April 30, 1996 As of April 30, 1996 ==================================== =================================== 1. Honda Motor Company 1. Japan 21.21% 2. Ciba-Geigy Ltd. 2. United Kingdom 12.57 3. Canon, Inc. 3. France 8.37 4. Autoliv AB 4. Hong Kong 5.38 5. Pinault-Printemps-Redoute, S.A. 5. Netherlands 4.76 6. Toyota Motor Corp. 6. Spain 4.53 7. Sandoz Ltd. 7. Germany 3.75 8. NTT Data Comm. Systems Co. 8. Switzerland 3.42 9. Gas Natural SDG - E.S.A. 9. Singapore 3.09 10. DDI Corp. 10. Sweden 2.69 ==================================== =================================== 4 7 Long-Term Performance emerge from recession later in the year. However, Japan is still troubled by a weak real estate market and a fragile banking system. Many Southeast Asian economies continue to grow rapidly. Singapore recently reported that its economy grew at an annual rate of 10.7% in the first quarter of 1996. Low interest rates and the benefits of restructuring have begun to bear fruit in the larger European economies such as the United Kingdom. Germany recently released encouraging economic reports that suggest the jobless rate has slipped and that manufacturers orders are rising. Analysts have projected strong earnings growth to continue for France, Italy, Spain, and Portugal. Inflation has been mild, but rising interest rates are a greater possibility for 1996. Uncertainty over the economic outlook for the U.S. could initiate an increase in interest rates worldwide, and that could arrest the fragile economic expansion underway in Europe and Japan, and the rapid growth of Southeast Asian economies. =============================================================================== Growth of a $10,000 Investment =============================================================================== As of April 30, 1996 Past performance cannot guarantee comparable future results. Lipper AIM International Equity Fund Europe, Australia, and International Class A Shares Far East Index Fund Index ----------------------------- ---------------------- ------------- 4/92 $9,454 $10,000 $10,000 4/93 11,044 12,267 11,158 4/94 13,993 14,346 13,809 4/95 14,146 15,190 13,647 4/96 17,484 16,973 16,011 - ------------------------------------------------------------------------------- Sources: Lipper Analytical Services and Towers Data Systems HYPO(R) =============================================================================== Your Fund's total return includes sales charges, expenses, and management fees. For Fund performance calculations and descriptions of indexes cited on this page, please refer to the inside front cover. - ------------------------------------------ AVERAGE ANNUAL TOTAL RETURNS As of March 31, 1996 (the most recent calendar quarter) CLASS A SHARES 1 YEAR 16.69%* INCEPTION (4/7/92) 14.16 *23.48% EXCLUDING SALES CHARGE CLASS B SHARES 1 YEAR 17.51%* INCEPTION (9/15/94) 6.99 *22.51% EXCLUDING SALES CHARGE - ------------------------------------------ 5 8 Investor Awareness - ------------------------- Your financial consult- ant can assist you in developing an asset allocation strategy and selecting the appropriate investments to help you meet your long-term investment goals. - ------------------------- ASSET ALLOCATION HELPS YOU MANAGE YOUR INVESTMENTS IN CHANGING MARKETS Every mutual fund investor would like to invest in a market that only goes up--a tide that floats all ships. The truth is, markets also decline. But market changes do not affect all investments the same way--some investments may benefit from a market trend when others do not. And market changes are not the only factors an investor must manage. There are a number of important considerations with every investment including investment risk, and investment risk takes many forms: o MARKET RISK. The prices of some investments will fluctuate according to changes in the market. o INTEREST RATE RISK. The value of some investments, such as fixed-income securities, will rise and fall as interest rates change. o REINVESTMENT RISK. When interest rates fall, investors face the possibility that investment income cannot be reinvested at higher rates previously available. o INFLATION RISK. Inflation can cause the value of some investments to erode as the cost of living increases. o CURRENCY RATE RISK. Investments valued in U.S. dollars will rise and fall according to the dollar's value against other world currencies. To manage these changing conditions, investors have learned to diversify their assets across a wide variety of investments. For most investors, mutual funds offer convenient and affordable methods to diversify their assets. For as little as $500, an investor has access to a portfolio of hundreds of professionally selected securities. When you invest in more than one fund, you increase the level of diversification. You also gain another important benefit. Since mutual funds are managed according to specific investment objectives, such as growth or income, you can invest in mutual funds with different investment objectives to create a personalized investment plan which suits your unique financial objectives. This investment strategy is called asset allocation. Mutual fund investors tend to seek growth, or current income, or some combination of both. Generally, investors who choose to assume more investment risk get the potential for a higher return. With asset allocation, you can fine-tune your investment plan to be more conservative, or more aggressive, depending on your personal financial goals and risk tolerance. Your financial consultant can assist you in developing an asset allocation strategy and selecting the appropriate investments to help you meet your long-term investment goals. 6 9 THE AIM FAMILY OF FUNDS(R) AIM offers a wide variety of funds suitable for many asset allocation strategies:
RELATIVELY AGGRESSIVE OBJECTIVE FUND - ------------------------------------------------------------------------------------------------------------------------------ Aggressive Growth AIM Global Aggressive Growth Fund AIM Aggressive Growth Fund* AIM Constellation Fund AIM Capital Development Fund - ------------------------------------------------------------------------------------------------------------------------------ Growth AIM Growth Fund AIM International Equity Fund AIM Global Growth Fund AIM Blue Chip Fund AIM Weingarten Fund AIM Value Fund - ------------------------------------------------------------------------------------------------------------------------------ Growth and Income AIM Charter Fund AIM Balanced Fund - ------------------------------------------------------------------------------------------------------------------------------ Income and Growth AIM Global Utilities Fund - ------------------------------------------------------------------------------------------------------------------------------ High Current Income AIM High Yield Fund - ------------------------------------------------------------------------------------------------------------------------------ Current Income AIM Global Income Fund AIM Income Fund - ------------------------------------------------------------------------------------------------------------------------------ Current Tax-Free Income AIM Municipal Bond Fund AIM Tax-Exempt Bond Fund of Conn. AIM Tax-Free Intermediate Shares - ------------------------------------------------------------------------------------------------------------------------------ Current Income and High Degree of Safety AIM Intermediate Government Fund** - ------------------------------------------------------------------------------------------------------------------------------ High Degree of Safety and Current Income AIM Limited Maturity Treasury Shares - ------------------------------------------------------------------------------------------------------------------------------ Stability, Liquidity and Current Income AIM Money Market Fund - ------------------------------------------------------------------------------------------------------------------------------ Stability, Liquidity and Current Tax-Free Income AIM Tax-Exempt Cash Fund - ------------------------------------------------------------------------------------------------------------------------------ RELATIVELY CONSERVATIVE *AIM Aggressive Growth Fund closed to new investors on July 18, 1995. **On September 25, 1995, AIM Government Securities Fund was renamed AIM Intermediate Government Fund. For more complete information about any of AIM's Funds, including sales charges and expenses, ask your financial consultant for a free prospectus(es). Please read the prospectus(es) carefully before you invest or send money. An investment in an AIM Fund is not insured or guaranteed by the U.S. government, is not an obligation of or insured by any bank or FDIC and is subject to risks disclosed in the Funds' prospectus.
7 10 Financials SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited)
SHARES MARKET VALUE FOREIGN STOCKS & OTHER EQUITY INTERESTS-92.83% ARGENTINA-1.59% 205,700 Banco de Galicia Y Buenos Aires S.A. de C.V.-ADR (Banking) $ 4,833,950 - --------------------------------------------------------------------------------------------- 567,000 Perez Companc S.A.-Class B (Oil & Gas-Services)(a) 3,527,093 - --------------------------------------------------------------------------------------------- 101,000 Telefonica de Argentina S.A.-ADR (Telephone) 2,954,250 - --------------------------------------------------------------------------------------------- 318,300 YPF Sociedad Anonima-ADR (Oil & Gas-Services) 6,962,813 - --------------------------------------------------------------------------------------------- 18,278,106 - --------------------------------------------------------------------------------------------- AUSTRALIA-2.46% 340,900 News Corp. Ltd. (The)-ADR (Publishing) 6,945,838 - --------------------------------------------------------------------------------------------- 1,232,221 QBE Insurance Group, Ltd. (Insurance-Broker) 6,466,014 - --------------------------------------------------------------------------------------------- 2,694,400 QNI Ltd. (Metals-Miscellaneous) 6,667,211 - --------------------------------------------------------------------------------------------- 1,123,100 Western Mining Corp. Holding Ltd. (Metals-Miscellaneous) 8,187,249 - --------------------------------------------------------------------------------------------- 28,266,312 - --------------------------------------------------------------------------------------------- AUSTRIA-0.63% 29,650 Oesterreichisch Elektrizitatswirtschafts AG (Verbundgesellschaft)-Class A (Electric Services) 2,096,020 - --------------------------------------------------------------------------------------------- 52,000 OMV AG (Oil & Gas-Exploration & Production) 5,168,602 - --------------------------------------------------------------------------------------------- 7,264,622 - --------------------------------------------------------------------------------------------- BELGIUM-0.85% 14,600 Colruyt S.A. (Retail-Food & Drug) 4,549,746 - --------------------------------------------------------------------------------------------- 3,100 UCB S.A. (Medical-Drugs) 5,219,187 - --------------------------------------------------------------------------------------------- 9,768,933 - --------------------------------------------------------------------------------------------- BRAZIL-0.70% 147,900 Telecomunicacoes Brasileiras S/A-Telebras-ADR (Telecommunications) 8,005,088 - --------------------------------------------------------------------------------------------- CANADA-1.95% 536,000 Bombardier, Inc.-Class B (Transportation-Miscellaneous) 7,539,038 - --------------------------------------------------------------------------------------------- 94,000 Newbridge Networks Corp.(a) (Computer Networking) 6,051,250 - --------------------------------------------------------------------------------------------- 99,000 Northern Telecom Ltd. (Telecommunications) 5,098,500 - --------------------------------------------------------------------------------------------- 285,450 TELUS Corp. (Telecommunications) 3,752,887 - --------------------------------------------------------------------------------------------- 22,441,675 - --------------------------------------------------------------------------------------------- CHILE-0.49% 62,100 Compania de Telefonos de Chile S.A.-ADR (Telephone) 5,666,625 - --------------------------------------------------------------------------------------------- DENMARK-1.05% 79,300 Danisco A/S (Food/Processing) 3,869,604 - --------------------------------------------------------------------------------------------- 41,200 Novo Nordisk A/S-Class B (Medical-Drugs) 5,354,185 - --------------------------------------------------------------------------------------------- 23,000 Sophus Berendsen A/S-Class B (Retail-Stores) 2,821,416 - --------------------------------------------------------------------------------------------- 12,045,205 - --------------------------------------------------------------------------------------------- FRANCE-8.37% 9,500 Carrefour Supermarche (Retail-Stores) 7,423,512 - --------------------------------------------------------------------------------------------- 42,500 Castorama Dubois (Retail-Stores) 8,134,011 - --------------------------------------------------------------------------------------------- 22,400 Cetelem (Finance-Consumer Credit) 4,807,276 - ---------------------------------------------------------------------------------------------
8 11 Financials
SHARES MARKET VALUE France-continued 58,000 Christian Dior S.A. (Consumer Non-Durables) $ 7,733,333 - --------------------------------------------------------------------------------------------- 59,000 Compagnie Francaise d'Etudes et de Construction Technip (Engineering & Construction) 5,308,002 - --------------------------------------------------------------------------------------------- 24,000 Ecco S.A. (Business Services) 5,392,163 - --------------------------------------------------------------------------------------------- 24,940 Essilor International-Compagnie Generale d'Optique (Medical Instruments/Products) 6,312,824 - --------------------------------------------------------------------------------------------- 9,700 LVMH Moet Hennessy Louis Vuitton (Beverages-Alcoholic) 2,481,548 - --------------------------------------------------------------------------------------------- 34,800 Pinault-Printemps-Redoute, S.A. (Retail-Food & Drug) 10,566,270 - --------------------------------------------------------------------------------------------- 23,200 Rexel S.A. (Transportation-Miscellaneous) 5,562,612 - --------------------------------------------------------------------------------------------- 24,000 Roussel-Uclaf (Medical-Drugs) 5,656,894 - --------------------------------------------------------------------------------------------- 112,000 Schneider S.A. (Electronic Components/Miscellaneous) 5,219,081 - --------------------------------------------------------------------------------------------- 130,000 SGS-Thomson Microelectronics N.V. New York Shares-ADR(a) (Electronic Components/Miscellaneous) 6,110,000 - --------------------------------------------------------------------------------------------- 20,000 Sodexho S.A. (Business Services) 7,930,334 - --------------------------------------------------------------------------------------------- 111,000 Total S.A.-Class B (Oil & Gas-Exploration & Production) 7,533,179 - --------------------------------------------------------------------------------------------- 96,171,039 - --------------------------------------------------------------------------------------------- GERMANY-3.75% 76,600 Adidas A.G.(a) (Shoes & Related Apparel) 5,829,185 - --------------------------------------------------------------------------------------------- 285,000 Continental A.G. (Automobile/Truck Parts & Tires) 4,924,064 - --------------------------------------------------------------------------------------------- 6,300 Gehe A.G. (Medical-Drugs) 3,637,860 - --------------------------------------------------------------------------------------------- 14,300 Hoechst A.G. (Chemicals) 4,816,173 - --------------------------------------------------------------------------------------------- 42,000 SAP A.G.-Preferred (Computer Software/Services) 5,577,503 - --------------------------------------------------------------------------------------------- 50,500 SGL Carbon A.G. (Metals-Miscellaneous) 4,766,641 - --------------------------------------------------------------------------------------------- 10,800 Siemens A.G. (Electric Services) 5,913,933 - --------------------------------------------------------------------------------------------- 155,000 Veba A.G. (Electric Services) 7,704,945 - --------------------------------------------------------------------------------------------- 43,170,304 - --------------------------------------------------------------------------------------------- HONG KONG-5.38% 948,000 Cheung Kong Holdings Ltd. (Real Estate) 6,770,991 - --------------------------------------------------------------------------------------------- 8,028,000 Cosco Pacific Ltd. (Transportation-Miscellaneous) 5,656,079 - --------------------------------------------------------------------------------------------- 5,211,908 First Pacific Co. Ltd. (Conglomerates) 6,939,778 - --------------------------------------------------------------------------------------------- 679,100 Hang Seng Bank Ltd. (Banking) 6,891,520 - --------------------------------------------------------------------------------------------- 4,428,000 Hong Kong & China Gas Company Ltd. (Electric Power) 7,269,808 - --------------------------------------------------------------------------------------------- 532,000 HSBC Holdings PLC (Banking) 7,943,378 - --------------------------------------------------------------------------------------------- 686,000 Hutchison Whampoa Ltd. (Conglomerates) 4,256,738 - --------------------------------------------------------------------------------------------- 2,554,000 New World Infrastructure(a) (Building Materials) 5,678,857 - --------------------------------------------------------------------------------------------- 6,000,000 Shanghai Petrochemical Co., Ltd. (Chemicals) 1,783,983 - --------------------------------------------------------------------------------------------- 723,100 Sun Hung Kai Properties Ltd. (Real Estate) 6,894,011 - --------------------------------------------------------------------------------------------- 979,000 Varitronix International (Electronic Components/Miscellaneous) 1,797,143 - --------------------------------------------------------------------------------------------- 61,882,286 - --------------------------------------------------------------------------------------------- INDIA-0.14% 95,000 Reliance Industries Ltd.(a) (Chemicals) 1,567,500 - --------------------------------------------------------------------------------------------- INDONESIA-0.76% 1,770,000 PT Bank International Indonesia (Banking) 8,703,985 - --------------------------------------------------------------------------------------------- IRELAND-0.46% 79,400 Elan Corp. PLC-ADR(a) (Medical-Drugs) 5,250,325 - ---------------------------------------------------------------------------------------------
9 12 Financials
SHARES MARKET VALUE ISRAEL-0.50% 127,000 Teva Pharmaceutical Industries Ltd.-ADR (Medical-Drugs) $ 5,699,125 - --------------------------------------------------------------------------------------------- ITALY-1.94% 670,000 Ente Nazionale Idrocarburi S.p.A.(a) (Oil & Gas-Exploration & Production) 2,890,608 - --------------------------------------------------------------------------------------------- 533,450 Istituto Mobiliare Italiano S.p.A. (Banking) 4,229,009 - --------------------------------------------------------------------------------------------- 2,283,000 Telecom Italia Mobile S.p.A.(a) (Telecommunications) 5,007,399 - --------------------------------------------------------------------------------------------- 5,000,000 Telecom Italia S.p.A. (Telecommunications) 10,166,453 - --------------------------------------------------------------------------------------------- 22,293,469 - --------------------------------------------------------------------------------------------- JAPAN-21.21% 55,770 Advantest Corp. (Electronic Components/Miscellaneous) 2,767,041 - --------------------------------------------------------------------------------------------- 367,700 Bank of Tokyo-Mitsubishi (Banking-Money Center) 8,506,611 - --------------------------------------------------------------------------------------------- 496,000 Bridgestone Corp. (Automobile/Truck Parts & Tires) 9,198,795 - --------------------------------------------------------------------------------------------- 567,000 Canon, Inc. (Office Products) 11,274,413 - --------------------------------------------------------------------------------------------- 83,600 Daiichi Corp. (Electronic Components/Miscellaneous) 2,117,872 - --------------------------------------------------------------------------------------------- 1,208 DDI Corp. (Telecommunications) 10,381,836 - --------------------------------------------------------------------------------------------- 536,000 Honda Motor Co. (Automobile-Manufacturers) 12,246,451 - --------------------------------------------------------------------------------------------- 153,000 Hoya Corp. (Electronic Components/Miscellaneous) 5,411,787 - --------------------------------------------------------------------------------------------- 304,000 Isetan (Retail-Stores) 4,504,565 - --------------------------------------------------------------------------------------------- 124,000 Jusco Co. (Retail-Stores) 3,840,734 - --------------------------------------------------------------------------------------------- 820,000 Kajima Corp. (Engineering & Construction) 9,250,036 - --------------------------------------------------------------------------------------------- 583,000 Komatsu Ltd. (Machinery-Heavy) 5,629,081 - --------------------------------------------------------------------------------------------- 26,400 Nemic-Lambda K.K. (Electronic Components/Miscellaneous) 1,183,653 - --------------------------------------------------------------------------------------------- 46,000 Nichiei Co., Ltd. (Business Services) 3,078,247 - --------------------------------------------------------------------------------------------- 346,000 Nikon Corp. (Conglomerates) 4,663,831 - --------------------------------------------------------------------------------------------- 2,664,000 Nippon Steel Co. (Steel) 9,626,614 - --------------------------------------------------------------------------------------------- 26,530 Nippon Television Network (Advertising/Broadcasting) 8,344,123 - --------------------------------------------------------------------------------------------- 437,000 Nippon Zeon Co., Ltd. (Chemicals) 2,790,650 - --------------------------------------------------------------------------------------------- 3,107,000 NKK Corp.(a) (Steel) 9,742,326 - --------------------------------------------------------------------------------------------- 345,000 Nomura Securities Co., Ltd. (Finance-Asset Management) 7,519,717 - --------------------------------------------------------------------------------------------- 1,015,000 NSK Ltd. (Metals-Miscellaneous) 8,199,178 - --------------------------------------------------------------------------------------------- 2,980 NTT Data Communications Systems Co. (Computer Software/Services) 10,426,653 - --------------------------------------------------------------------------------------------- 871,000 Okuma Corp.(a) (Machine Tools) 9,575,546 - --------------------------------------------------------------------------------------------- 256,000 Omron Corp. (Electronic Components/Miscellaneous) 5,775,632 - --------------------------------------------------------------------------------------------- 5,800 Plenus Co., Ltd. (Restaurants) 242,856 - --------------------------------------------------------------------------------------------- 664,000 Ricoh Co., Ltd. (Office Products) 7,807,657 - --------------------------------------------------------------------------------------------- 142,000 Rohm Co., Ltd. (Electronic Components/Miscellaneous) 9,040,868 - --------------------------------------------------------------------------------------------- 430,000 Shizuoka Bank (Banking) 5,837,197 - --------------------------------------------------------------------------------------------- 100,000 SMC (Machinery-Miscellaneous) 7,791,214 - --------------------------------------------------------------------------------------------- 147,000 Sony Corp. (Electronic Components/Miscellaneous) 9,555,949 - --------------------------------------------------------------------------------------------- 100,000 TDK Corp. (Electronic Components/Miscellaneous) 5,726,304 - --------------------------------------------------------------------------------------------- 71,000 Tokyo Electron Ltd. (Electronic Components/Miscellaneous) 2,640,314 - --------------------------------------------------------------------------------------------- 459,000 Toyota Motor Corp. (Automobile-Manufactures) 10,487,166 - --------------------------------------------------------------------------------------------- 566,000 Yamaha Corp. (Electronic Components/Miscellaneous) 10,172,363 - --------------------------------------------------------------------------------------------- 449,000 Yamatake-Honeywell (Airlines) 8,498,829 - --------------------------------------------------------------------------------------------- 243,856,109 - ---------------------------------------------------------------------------------------------
10 13 Financials
SHARES MARKET VALUE MALAYSIA-2.25% 592,000 Commerce Asset Holdings Berhad (Finance-Asset Management) $ 4,036,418 - --------------------------------------------------------------------------------------------- 618,000 Edaran Otomobil Nasional Berhad (Retail-Stores) 5,279,509 - --------------------------------------------------------------------------------------------- 385,000 Genting Berhad (Leisure & Recreation) 3,458,870 - --------------------------------------------------------------------------------------------- 679,000 Malayan Banking Berhad (Banking) 6,617,615 - --------------------------------------------------------------------------------------------- 1,437,000 Technology Resources Industries Berhad(a) (Conglomerates) 4,898,929 - --------------------------------------------------------------------------------------------- 405,000 YTL Corp. Berhad, expiring 1997-Warrants (Engineering & Construction) 1,648,718 - --------------------------------------------------------------------------------------------- 25,940,059 - --------------------------------------------------------------------------------------------- MEXICO-1.33% 6,076,000 Grupo Industrial Maseca S.A. de CV-Class B (Food/Processing) 5,936,980 - --------------------------------------------------------------------------------------------- 32,000 Kimberly-Clark de Mexico S.A. de C.V. (Paper & Forest Products) 585,734 - --------------------------------------------------------------------------------------------- 199,100 Panamerican Beverages, Inc. (Beverages-Soft Drinks) 8,735,513 - --------------------------------------------------------------------------------------------- 15,258,227 - --------------------------------------------------------------------------------------------- NETHERLANDS-4.76% 49,500 Akzo Nobel (Conglomerates) 5,748,760 - --------------------------------------------------------------------------------------------- 383,000 Elsevier N.V. (Publishing) 5,766,793 - --------------------------------------------------------------------------------------------- 27,050 Heineken N.V. (Beverages-Alcoholic) 5,661,004 - --------------------------------------------------------------------------------------------- 142,000 Koninklijke Ahold N.V. (Retail-Food & Drug) 7,002,626 - --------------------------------------------------------------------------------------------- 53,100 Nutricia Verenigde Bedrijven N.V. (Food/Processing) 5,674,123 - --------------------------------------------------------------------------------------------- 60,000 Oce-Van Der Grinten N.V.-V (Office Automation) 5,515,028 - --------------------------------------------------------------------------------------------- 52,000 Royal Dutch Petroleum Co. (Oil & Gas-Services) 7,407,762 - --------------------------------------------------------------------------------------------- 332,000 Ver Ned Uitgevuer Bezit N.V. (Publishing) 5,580,158 - --------------------------------------------------------------------------------------------- 58,000 Wolters Kluwer N.V. (Publishing) 6,339,889 - --------------------------------------------------------------------------------------------- 54,696,143 - --------------------------------------------------------------------------------------------- NORWAY-0.65% 86,000 Norsk Hydro A.S. (Chemicals) 3,927,180 - --------------------------------------------------------------------------------------------- 750,000 UNI Storebrand A.S.(a) (Insurance-Life & Health) 3,573,277 - --------------------------------------------------------------------------------------------- 7,500,457 - --------------------------------------------------------------------------------------------- PHILIPPINES-2.21% 7,807,000 C & P Homes, Inc.(a) (Homebuilding) 6,712,170 - --------------------------------------------------------------------------------------------- 8,495,000 Filinvest Land Inc.(a) (Real Estate) 4,382,212 - --------------------------------------------------------------------------------------------- 28,997,000 Metro Pacific Corp. (Conglomerates) 6,869,752 - --------------------------------------------------------------------------------------------- 211,600 Metropolitan Banks & Trust Co. (Banking) 5,700,344 - --------------------------------------------------------------------------------------------- 12,144,000 Southeast Asia Cement Holdings, Inc.(a) (Building Materials) 1,786,565 - --------------------------------------------------------------------------------------------- 25,451,043 - --------------------------------------------------------------------------------------------- PORTUGAL-0.42% 220,000 Portugal Telecom S.A.(a) (Telecommunications) 4,785,414 - --------------------------------------------------------------------------------------------- SINGAPORE-3.09% 528,000 Cerebos Pacific Ltd. (Food/Processing) 4,769,953 - --------------------------------------------------------------------------------------------- 828,000 City Developments Ltd. (Real Estate) 7,244,558 - --------------------------------------------------------------------------------------------- 2,059,000 DBS Land Ltd. (Real Estate) 8,348,485 - --------------------------------------------------------------------------------------------- 1,269,000 Far East Levingston Shipbuilding Ltd. (Transportation-Miscellaneous) 7,402,048 - --------------------------------------------------------------------------------------------- 996,000 Overseas Union Bank Ltd. (Banking) 7,722,578 - --------------------------------------------------------------------------------------------- 35,487,622 - ---------------------------------------------------------------------------------------------
11 14 Financials
SHARES MARKET VALUE SOUTH AFRICA-0.38% 421,700 Sasol Ltd. (Oil & Gas-Exploration & Production) $ 4,392,708 - --------------------------------------------------------------------------------------------- SPAIN-4.53% 228,000 Centros Comerciales Pryca, S.A. (Retail-Food & Drug) 5,260,849 - --------------------------------------------------------------------------------------------- 95,000 Corporacion Mapfre Compania Internacional De Reaseguros S.A. (Insurance-Broker) 4,779,874 - --------------------------------------------------------------------------------------------- 139,000 Empresa Nacional de Electricidad, S.A. (Telephone) 8,731,211 - --------------------------------------------------------------------------------------------- 57,200 Gas Natural SDG-E.S.A. (Natural Gas Pipeline) 10,396,730 - --------------------------------------------------------------------------------------------- 745,000 Iberdrola S.A. (Electric Power) 7,291,863 - --------------------------------------------------------------------------------------------- 200,000 Repsol S.A. (Oil & Gas-Services) 7,334,906 - --------------------------------------------------------------------------------------------- 182,000 Tabacalera S.A. (Tobacco) 8,298,742 - --------------------------------------------------------------------------------------------- 52,094,175 - --------------------------------------------------------------------------------------------- SWEDEN-2.69% 129,000 Astra AB-Class A (Medical-Drugs) 5,697,107 - --------------------------------------------------------------------------------------------- 200,000 Autoliv AB (Automobile/Trucks Parts & Tires) 10,911,879 - --------------------------------------------------------------------------------------------- 89,000 Securitas A.B. (Security & Safety Services) 5,118,261 - --------------------------------------------------------------------------------------------- 160,000 Skandia Forsakrings AB (Insurance-Multi-Line Property) 3,656,954 - --------------------------------------------------------------------------------------------- 269,280 Telefonakiebolaget L.M. Ericsson-ADR (Telecommunications) 5,486,580 - --------------------------------------------------------------------------------------------- 30,870,781 - --------------------------------------------------------------------------------------------- SWITZERLAND-3.42% 25,000 ADIA SA (Business Services) 5,476,804 - --------------------------------------------------------------------------------------------- 10,000 Ciba-Geigy Ltd. (Chemicals) 11,605,992 - --------------------------------------------------------------------------------------------- 280 Roche Holdings A.G. (Medical-Drugs) 2,202,159 - --------------------------------------------------------------------------------------------- 9,600 Sandoz A.G. (Chemicals) 10,484,536 - --------------------------------------------------------------------------------------------- 4,250 Schindler Holding A.G. (Engineering & Construction) 4,655,284 - --------------------------------------------------------------------------------------------- 5,000 Swissair A.G.(a) (Airlines) 4,941,205 - --------------------------------------------------------------------------------------------- 39,365,980 - --------------------------------------------------------------------------------------------- THAILAND-2.30% 526,100 Bank of Ayudhya Ltd. (Banking) 3,105,187 - --------------------------------------------------------------------------------------------- 1,502,920 Krung Thai Bank PLC (Banking) 7,382,284 - --------------------------------------------------------------------------------------------- 276,500 Siam Commercial Bank Public Co. Ltd. (Banking) 4,074,472 - --------------------------------------------------------------------------------------------- 357,600 Thai Farmers Bank PLC (Banking) 4,107,984 - --------------------------------------------------------------------------------------------- 887,000 Total Access Communication Public Co. Ltd. (Telecommunications) 7,805,600 - --------------------------------------------------------------------------------------------- 26,475,527 - --------------------------------------------------------------------------------------------- UNITED KINGDOM-12.57% 700,000 Argos PLC (Retail-Stores) 6,833,509 - --------------------------------------------------------------------------------------------- 500,000 Bank of Ireland (Banking) 3,612,826 - --------------------------------------------------------------------------------------------- 650,000 Bass PLC (Beverages-Alcoholic) 7,666,341 - --------------------------------------------------------------------------------------------- 1,065,000 B.A.T. Industries PLC (Tobacco) 8,056,036 - --------------------------------------------------------------------------------------------- 330,000 BOC Group PLC (Chemicals-Specialty) 4,590,095 - --------------------------------------------------------------------------------------------- 840,000 British Petroleum Co. PLC (Oil & Gas-Exploration & Production) 7,580,611 - --------------------------------------------------------------------------------------------- 3,140,000 Burton Group PLC (Retail-Stores) 7,397,411 - --------------------------------------------------------------------------------------------- 970,000 Compass Group PLC (Food/Processing) 7,987,205 - --------------------------------------------------------------------------------------------- 1,150,000 Cookson Group PLC (Conglomerates) 5,392,518 - --------------------------------------------------------------------------------------------- 980,000 Dixons Group PLC (Retail-Stores) 7,272,919 - ---------------------------------------------------------------------------------------------
12 15 Financials
SHARES MARKET VALUE United Kingdom-continued 530,000 GKN PLC (Automobile/Truck Parts & Tires) $ 7,838,702 - --------------------------------------------------------------------------------------------- 590,000 Granada Group PLC (Leisure & Recreation) 7,313,939 - --------------------------------------------------------------------------------------------- 1,490,000 Medeva PLC (Medical-Drugs) 5,753,199 - --------------------------------------------------------------------------------------------- 1,010,000 Next PLC (Retail-Stores) 8,058,106 - --------------------------------------------------------------------------------------------- 285,800 Orange PLC-ADR(a) (Telecommunications) 5,144,400 - --------------------------------------------------------------------------------------------- 360,000 Premier Farnell PLC (Electronic Components/Miscellaneous) 3,988,559 - --------------------------------------------------------------------------------------------- 402,181 Provident Financial PLC (Finance-Consumer Credit) 5,812,038 - --------------------------------------------------------------------------------------------- 975,000 Rentokil Group PLC (Business Services) 5,636,008 - --------------------------------------------------------------------------------------------- 370,000 Siebe PLC (Electronic Components/Miscellaneous) 4,784,435 - --------------------------------------------------------------------------------------------- 256,000 Smiths Industries PLC (Electronics/Defense) 2,724,552 - --------------------------------------------------------------------------------------------- 645,000 Standard Chartered PLC (Banking) 6,039,289 - --------------------------------------------------------------------------------------------- 259,100 Thorn EMI PLC (Leisure & Recreation) 7,186,388 - --------------------------------------------------------------------------------------------- 2,575,000 WPP Group (Advertising/Broadcasting) 7,888,191 - --------------------------------------------------------------------------------------------- 144,557,277 - --------------------------------------------------------------------------------------------- Total Foreign Stocks & Other Equity Interests 1,067,206,121 - --------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT CONVERTIBLE BONDS-0.59% $ 4,780,000 MBL International Finance Bermuda, Conv. Yankee Bonds, 3.00%, 11/30/02 5,556,750 - --------------------------------------------------------------------------------------------- 1,212,000 Metro Pacific Corp., Yankee Bonds, 2.50%, 04/11/03 (Consumer Non-Durables) (Acquired 04/15/96; cost $1,239,270)(b) 1,265,025 - --------------------------------------------------------------------------------------------- Total Convertible Bonds 6,821,775 - --------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT-1.56%(c) 17,897,656 Daiwa Securities America Inc., 5.34%, 05/01/96(d) 17,897,656 - --------------------------------------------------------------------------------------------- TOTAL INVESTMENTS-94.98% 1,091,925,552 - --------------------------------------------------------------------------------------------- OTHER ASSETS LESS LIABILITIES-5.02% 57,757,330 - --------------------------------------------------------------------------------------------- NET ASSETS-100.00% $1,149,682,882 =============================================================================================
Abbreviations: ADR-American Depository Receipt Conv.-Convertible Notes to Schedule of Investments: (a) Non-income producing security. (b) Restricted security. May be resold to qualified institutional buyers in accordance with the provisions of Rule 144A under the Securities Act of 1933, as amended. The valuation of this security has been determined in accordance with procedures established by the Board of Directors. The aggregate market value of this security at April 30, 1996 was $1,265,025. (c) Collateral on repurchase agreements, including the Fund's pro-rata interest in joint repurchase agreements, is taken into possession by the Fund upon entering into the repurchase agreement. The collateral is marked to market daily to ensure its market value as being 102% of the sales price of the repurchase agreement. The investments in some repurchase agreements are through participation in joint accounts with other mutual funds, private accounts and certain non-registered investment companies managed by the investment advisor or its affiliates. (d) Joint repurchase agreement entered into 04/30/96 with a maturing value of $767,124,680. Collateralized by $737,151,000 U.S. Treasury obligations, 0% to 11.25% due 05/15/96 to 02/15/21. See Notes to Financial Statements. 13 16 Financials STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (Unaudited) ASSETS: Investments, at market value (cost $904,887,736) $1,091,925,552 - ----------------------------------------------------------------------------------------- Foreign currencies, at market value (cost $51,987,707) 51,942,915 - ----------------------------------------------------------------------------------------- Receivables for: Investments sold 27,457,385 - ----------------------------------------------------------------------------------------- Capital stock sold 10,018,831 - ----------------------------------------------------------------------------------------- Dividends and interest 4,250,080 - ----------------------------------------------------------------------------------------- Investment for deferred compensation plan 13,236 - ----------------------------------------------------------------------------------------- Other assets 115,720 - ----------------------------------------------------------------------------------------- Total assets 1,185,723,719 - ----------------------------------------------------------------------------------------- LIABILITIES: Payables for: Investments purchased 33,033,726 - ----------------------------------------------------------------------------------------- Capital stock reacquired 984,502 - ----------------------------------------------------------------------------------------- Deferred compensation 13,236 - ----------------------------------------------------------------------------------------- Accrued advisory fees 831,068 - ----------------------------------------------------------------------------------------- Accrued administrative services fees 7,007 - ----------------------------------------------------------------------------------------- Accrued directors' fees 3,195 - ----------------------------------------------------------------------------------------- Accrued distribution fees 534,713 - ----------------------------------------------------------------------------------------- Accrued transfer agent fees 309,392 - ----------------------------------------------------------------------------------------- Accrued operating expenses 323,998 - ----------------------------------------------------------------------------------------- Total liabilities 36,040,837 - ----------------------------------------------------------------------------------------- Net assets applicable to shares outstanding $1,149,682,882 ========================================================================================= NET ASSETS: Class A $ 935,340,868 ========================================================================================= Class B $ 214,342,014 ========================================================================================= CAPITAL STOCK, $.001 PAR VALUE PER SHARE: Class A: Authorized 200,000,000 - ----------------------------------------------------------------------------------------- Outstanding 62,119,975 ========================================================================================= Class B: Authorized 200,000,000 - ----------------------------------------------------------------------------------------- Outstanding 14,400,207 ========================================================================================= Class A: Net asset value and redemption price per share $ 15.06 ========================================================================================= Offering price per share: (Net asset value of $15.06 divided by 94.50%) $ 15.94 ========================================================================================= Class B: Net asset value and offering price per share $ 14.88 =========================================================================================
See Notes to Financial Statements. 14 17 Financials STATEMENT OF OPERATIONS For the six months ended April 30, 1996 (Unaudited) INVESTMENT INCOME: Dividends (net of $970,287 foreign withholding tax) $ 6,153,698 - ----------------------------------------------------------------------------------------- Interest 1,510,342 - ----------------------------------------------------------------------------------------- Total investment income 7,664,040 - ----------------------------------------------------------------------------------------- EXPENSES: Advisory fees 4,180,652 - ----------------------------------------------------------------------------------------- Administrative services fees 45,886 - ----------------------------------------------------------------------------------------- Directors' fees 5,415 - ----------------------------------------------------------------------------------------- Distribution fees-Class A 1,146,857 - ----------------------------------------------------------------------------------------- Distribution fees-Class B 577,833 - ----------------------------------------------------------------------------------------- Custodian fees 351,078 - ----------------------------------------------------------------------------------------- Transfer agent fees-Class A 899,827 - ----------------------------------------------------------------------------------------- Transfer agent fees-Class B 168,171 - ----------------------------------------------------------------------------------------- Other 266,312 - ----------------------------------------------------------------------------------------- Total expenses 7,642,031 - ----------------------------------------------------------------------------------------- Less advisory fees waived (96,061) - ----------------------------------------------------------------------------------------- Net expenses 7,545,970 - ----------------------------------------------------------------------------------------- Net investment income 118,070 - ----------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCIES: Net realized gain (loss) on sales of: Investment securities 24,418,177 - ----------------------------------------------------------------------------------------- Foreign currencies (191,807) - ----------------------------------------------------------------------------------------- 24,226,370 - ----------------------------------------------------------------------------------------- Unrealized appreciation of: Investment securities 90,903,191 - ----------------------------------------------------------------------------------------- Foreign currencies 259,983 - ----------------------------------------------------------------------------------------- 91,163,174 - ----------------------------------------------------------------------------------------- Net gain on investment securities and foreign currencies 115,389,544 - ----------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $115,507,614 =========================================================================================
See Notes to Financial Statements. 15 18 Financials STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 1996 and the year ended October 31, 1995 (Unaudited)
APRIL 30, OCTOBER 31, 1996 1995 -------------- -------------- OPERATIONS: Net investment income $ 118,070 $ 468,936 - ---------------------------------------------------------------------------------------------- Net realized gain on sales of investment securities and foreign currencies 24,226,370 19,301,818 - ---------------------------------------------------------------------------------------------- Net unrealized appreciation of investment securities and foreign currencies 91,163,174 8,812,756 - ---------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 115,507,614 28,583,510 - ---------------------------------------------------------------------------------------------- Dividends to shareholders from net investment income: Class A (295,950) (2,166,421) - ---------------------------------------------------------------------------------------------- Class B -- (19,050) - ---------------------------------------------------------------------------------------------- Distributions to shareholders from net realized capital gains: Class A (18,468,237) (23,092,160) - ---------------------------------------------------------------------------------------------- Class B (1,875,142) (287,957) - ---------------------------------------------------------------------------------------------- Share transactions-net: Class A 199,654,186 (54,671,896) - ---------------------------------------------------------------------------------------------- Class B 148,432,942 45,389,211 - ---------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 442,955,413 (6,264,763) - ---------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 706,727,469 712,992,232 - ---------------------------------------------------------------------------------------------- End of period $1,149,682,882 $ 706,727,469 ============================================================================================== NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $ 938,973,414 $ 590,886,286 - ---------------------------------------------------------------------------------------------- Undistributed net investment income 59,291 237,171 - ---------------------------------------------------------------------------------------------- Undistributed net realized gain on sales of investment securities and foreign currencies 23,387,985 19,504,994 - ---------------------------------------------------------------------------------------------- Unrealized appreciation of investment securities and foreign currencies 187,262,192 96,099,018 - ---------------------------------------------------------------------------------------------- $1,149,682,882 $ 706,727,469 ==============================================================================================
See Notes to Financial Statements. 16 19 Financials NOTES TO FINANCIAL STATEMENTS April 30, 1996 (Unaudited) NOTE 1-SIGNIFICANT ACCOUNTING POLICIES AIM International Equity Fund (the "Fund") is a series portfolio of AIM International Funds, Inc. (the "Company"). The Company is a Maryland corporation registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company consisting of four separate series portfolios: AIM International Equity Fund, AIM Global Aggressive Growth Fund, AIM Global Growth Fund and AIM Global Income Fund. The Fund currently offers two different classes of shares: Class A shares and Class B shares. Class A shares are sold with a front-end sales charge. Class B shares are sold with a contingent deferred sales charge. Matters affecting each portfolio or class are voted on exclusively by the shareholders of such portfolio or class. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. The Fund's investment objective is to provide long-term growth of capital. The Fund seeks to achieve its objective by investing in a diversified portfolio of international equity securities, the issuers of which are considered by AIM to have strong earnings momentum. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A. Security Valuations -- Except as provided in the next sentence, a security listed or traded on an exchange is valued at the last sales price on the exchange where the security is principally traded or, lacking any sales, at the mean between the closing bid and asked prices on the day of valuation. Exchange listed convertible bonds are valued at the mean between the closing bid and asked prices obtained from a broker-dealer. If a mean is not available, as is the case in some foreign markets, the closing bid will be used absent a last sales price. Securities traded in the over-the-counter market (but not including securities reported on the NASDAQ National Market System) are valued at the mean between the closing bid and asked prices on valuation date. Securities reported on the NASDAQ National Market System are valued at the last sales price on the valuation date or absent a last sales price, at the mean of the closing bid and asked prices. Securities for which market quotations are either not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors. Investments with maturities of 60 days or less are valued on the basis of amortized cost which approximates market value. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange. The values of such securities used in computing the net asset value of the Fund's shares are determined as of such times. Foreign currency exchange rates are also generally determined prior to the close of the New York Stock Exchange. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of the New York Stock Exchange which will not be reflected in the computation of the Fund's net asset value. If events materially affecting the value of such securities occur during such period, then these securities will be valued at their fair value as determined in good faith by or under the supervision of the Board of Directors. B. Foreign Currency Translations -- Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. C. Foreign Currency Contracts -- A forward currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a forward contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a forward contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. D. Securities Transactions, Investment Income and Distributions -- Securities transactions are accounted for on a trade date basis. Realized gains or losses are computed on the basis of specific identification of the securities sold. Interest income is recorded as earned from settlement date and is recorded on an accrual basis. Dividend income and distributions to shareholders are recorded on the ex-dividend date. 17 20 Financials NOTE 1-SIGNIFICANT ACCOUNTING POLICIES (continued) E. Federal Income Taxes -- The Fund intends to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized capital gains) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. F. Organizational Costs -- Organizational costs of $23,098 were borne by the Fund. Such costs are amortized to operations over sixty months. Prior to full amortization of the organizational costs, the proceeds of any redemption of the shares related to the Fund's initial formation (10,000 Class A shares) will be reduced by a pro rata share of such unamortized organizational expenses. The pro rata share of organizational expenses will be calculated by dividing the number of initial shares redeemed by the remaining number of initial shares outstanding at the time of the redemption and multiplying the result by the unamortized organizational expenses. G. Expenses -- Operating expenses directly attributable to a class of shares are charged to that class' operations. Expenses which are applicable to both classes, e.g. advisory fees, are allocated between them. NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Company has entered into a master investment advisory agreement with A I M Advisors, Inc. ("AIM"). Under the terms of the master investment advisory agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.95% of the first $1 billion of the Fund's average daily net assets, plus 0.90% of the Fund's average daily net assets in excess of $1 billion. AIM is currently voluntarily waiving a portion of its advisory fees paid by the Fund to AIM to the extent necessary to reduce the fees paid by the Fund at net asset levels higher than those currently incorporated in the present advisory fee schedule. AIM will receive a fee calculated at the annual rate of 0.95% of the first $500 million of the Fund's average daily net assets, plus 0.90% of the Fund's average daily net assets in excess of $500 million to and including $1 billion, plus 0.85% of the Fund's average daily net assets in excess of $1 billion. The waiver of fees is voluntary and the Board of Directors of the Company would be advised of any decision by AIM to discontinue the waiver. During the six months ended April 30, 1996, AIM waived fees of $96,061. Under the terms of the advisory agreement, AIM will, if necessary, reduce its fee or make payments to the Fund to the extent necessary to satisfy any expense limitations imposed by the securities laws or regulations thereunder of any state in which the Fund's shares are qualified for sale. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to reimburse AIM for certain administrative costs incurred in providing accounting services to the Fund. During the six months ended April 30, 1996, AIM was reimbursed $45,886 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing transfer agency services to the Fund. During the six months ended April 30, 1996, the Fund paid AFS $532,945 for such services. The Company has entered into master distribution agreements with A I M Distributors, Inc. ("AIM Distributors") to serve as the distributor for the Class A shares and the Class B shares of the Fund. The Company has adopted distribution Plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares (the "Class A Plan") and with respect to the Fund's Class B shares (the "Class B Plan") (collectively the "Plans"). The Fund, pursuant to the Class A Plan, pays AIM Distributors at an annual rate of 0.30% of the average daily net assets attributable to the Class A shares. The Class A Plan is designed to compensate AIM Distributors for certain promotional and other sales related costs. Of the compensation payable, the Fund pays a service fee of 0.25% to selected dealers and financial institutions, who furnish continuing personal shareholder services to their customers who purchase and own Class A shares of the Fund. The Fund, pursuant to the Class B Plan, pays AIM Distributors an annual rate of 1.00% of the average daily net assets attributable to the Class B shares. Of this amount, the Fund may pay a service fee of 0.25% of the average daily net assets of the Class B shares to selected dealers and financial institutions who furnish continuing personal shareholder services to their customers who purchase and own Class B shares of the Fund. Any amounts not paid as a service fee under such Plans would constitute an asset-based sales charge. The Plans also impose a cap on the total sales charges, including asset-based sales charges, that may be paid by the respective classes. AIM Distributors may, from time to time, assign, transfer or pledge to one or more designees, its rights to all or a designated portion of (a) compensation received by AIM Distributors from the Fund pursuant to the Class B Plan (but not AIM Distributors duties and obligations pursuant to the Class B Plan) and (b) any contingent deferred sales charges received by AIM Distributors related to the Class B shares. During the six months ended April 30, 1996, the Class A shares and the Class B shares paid AIM Distributors $1,146,857 and $577,833, respectively, as compensation under the Plans. 18 21 Financials NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued) AIM Distributors received commissions of $782,904 from sales of the Class A shares of the Fund during the six months ended April 30, 1996. Such commissions are not an expense of the Fund. They are deducted from, and are not included in, the proceeds from sales of Class A shares. During the six months ended April 30, 1996, AIM Distributors received commissions of $20,519 in contingent deferred sales charges imposed on redemptions of Fund shares. Certain officers and directors of the Company are officers and directors of AIM, AFS and AIM Distributors. During the six months ended April 30, 1996, the Fund incurred legal fees of $2,764 for services rendered by the law firm of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as counsel to the Company's directors. A member of that firm is a director of the Company. NOTE 3-DIRECTORS' FEES Directors' fees represent remuneration paid or accrued to each director who is not an "interested person" of AIM. The Company may invest directors' fees, if so elected by a director, in mutual fund shares in accordance with a deferred compensation plan. NOTE 4-BANK BORROWINGS The Fund may borrow $10,800,000 under a committed line of credit with a financial institution syndicate with Chemical Bank of New York as the administrative agent. Interest on borrowings under the line of credit is payable on maturity or prepayment date. During the six months ended April 30, 1996, the Fund did not borrow under the line of credit agreement. The Fund is charged a commitment fee, payable quarterly, at the rate of 1/10 of 1% per annum on the unused balance of the Fund's commitment. NOTE 5-INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities) purchased and sold by the Fund during the six months ended April 30, 1996 was $646,507,972 and $321,781,686, respectively. The amount of unrealized appreciation (depreciation) of investment securities, on a tax basis, as of April 30, 1996 is as follows: Aggregate unrealized appreciation of investment securities $193,729,904 - ------------------------------------------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (6,692,088) - ------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation of investment securities $187,037,816 ================================================================================================================== Investments have the same cost for tax and financial statement purposes.
NOTE 6-CAPITAL STOCK Changes in the Fund's capital stock outstanding during the six months ended April 30, 1996 and the year ended October 31, 1995 were as follows:
APRIL 30, 1996 OCTOBER 31, 1995 ------------------------------ ------------------------------ SHARES AMOUNT SHARES AMOUNT ----------- ------------- ----------- ------------- Sold: Class A 19,603,583 $ 277,153,025 19,941,452 $ 256,345,253 - ------------------------------------------------------------------------------------------------------------------------------- Class B 10,871,894 152,849,244 3,764,258 49,112,660 - ------------------------------------------------------------------------------------------------------------------------------- Issued as reinvestment of dividends: Class A 1,305,826 17,576,422 1,330,022 15,787,364 - ------------------------------------------------------------------------------------------------------------------------------- Class B 130,599 1,742,057 24,816 294,807 - ------------------------------------------------------------------------------------------------------------------------------- Reacquired: Class A (6,742,309) (95,075,261) (25,762,596) (326,804,513) - ------------------------------------------------------------------------------------------------------------------------------- Class B (438,907) (6,158,359) (310,613) (4,018,256) - ------------------------------------------------------------------------------------------------------------------------------- 24,730,686 $ 348,087,128 (1,012,661) $ (9,282,685) ===============================================================================================================================
19 22 Financials NOTE 7-FINANCIAL HIGHLIGHTS Shown below are the condensed financial highlights for a Class A share outstanding during the six months ended April 30, 1996, each of the years in the three-year period ended October 31, 1995 and the period November 5, 1991 (date operations commenced) through October 31, 1992 and for a Class B share outstanding during the six months ended April 30, 1996, the year ended October 31, 1995 and the period September 15, 1994 (date sales commenced) through October 31, 1994.
OCTOBER 31, APRIL 30, --------------------------------------------------------------- 1996 1995 1994 1993 1992 ---------- ------------ ------------ -------- -------- CLASS A: Net asset value, beginning of period $ 13.65 $ 13.50 $ 12.18 $ 8.88 $ 8.61(a) - -------------------------------------------- ---------- ------------ ------------ -------- -------- Income from investment operations: Net investment income 0.01(b) 0.01 0.02 0.02 0.03 - -------------------------------------------- ---------- ------------ ------------ -------- -------- Net gains on securities (both realized and unrealized) 1.79 0.62 1.31 3.29 0.26 - -------------------------------------------- ---------- ------------ ------------ -------- -------- Total from investment operations 1.80 0.63 1.33 3.31 0.29 - -------------------------------------------- ---------- ------------ ------------ -------- -------- Less distributions: Dividends from net investment income (0.01) (0.04) (0.01) (0.01) (0.02) - -------------------------------------------- ---------- ------------ ------------ -------- -------- Distributions from capital gains (0.38) (0.44) -- -- -- - -------------------------------------------- ---------- ------------ ------------ -------- -------- Total distributions (0.39) (0.48) (0.01) (0.01) (0.02) - -------------------------------------------- ---------- ------------ ------------ -------- -------- Net asset value, end of period $ 15.06 $ 13.65 $ 13.50 $ 12.18 $ 8.88 ============================================ ========== ============ ============ ======== ======== Total return(c) 13.44% 5.24% 10.94% 37.36% 3.36% ============================================ ========== ============ ============ ======== ======== Ratios/supplemental data: Net assets, end of period (000s omitted) $935,341 $654,764 $708,159 $372,282 $122,663 ============================================ ========== ============ ============ ======== ======== Ratio of expenses to average net assets 1.61%(d)(e) 1.67%(e) 1.64% 1.78% 1.80%(e) ============================================ ========== ============ ============ ======== ======== Ratio of net investment income to average net assets 0.12%(d)(f) 0.10%(f) 0.22% 0.28% 0.30%(f) ============================================ ========== ============ ============ ======== ======== Portfolio turnover rate 39% 68% 67% 62% 41% ============================================ ========== ============ ============ ======== ========
(a) Net asset value at the beginning of the period has been restated to reflect a 1.1619 for 1 stock split, effected in the form of a dividend, on May 21, 1992. (b) Calculated using average shares outstanding. (c) Does not deduct sales charges and for periods less than one year, total returns are not annualized. (d) Ratios are annualized and based on average net assets of $770,907,286. (e) After fee waivers and expense reimbursements. Ratios of expenses to average net assets before fee waivers and expense reimbursements are 1.63% (annualized), 1.68% and 1.89% (annualized), respectively for 1996, 1995 and 1992. (f) After fee waivers and expense reimbursements. Ratios of net investment income to average net assets before fee waivers and expense reimbursements are 0.10% (annualized), 0.09% and 0.22% (annualized), respectively for 1996, 1995 and 1992.
OCTOBER 31, APRIL 30, ----------------------- 1996 1995 1994 ---------- -------- -------- CLASS B: Net asset value, beginning of period $ 13.54 $ 13.49 $ 13.42 - ------------------------------------------------------------------------------------ ---------- -------- -------- Income from investment operations: Net investment income (loss) (0.04)(b) (0.09) (0.01) - ------------------------------------------------------------------------------------ ---------- -------- -------- Net gains on securities (both realized and unrealized) 1.76 0.61 0.08 - ------------------------------------------------------------------------------------ ---------- -------- -------- Total from investment operations 1.72 0.52 0.07 - ------------------------------------------------------------------------------------ ---------- -------- -------- Less distributions: Dividends from net investment income -- (0.03) -- - ------------------------------------------------------------------------------------ ---------- -------- -------- Distributions from capital gains (0.38) (0.44) -- - ------------------------------------------------------------------------------------ ---------- -------- -------- Total distributions (0.38) (0.47) -- - ------------------------------------------------------------------------------------ ---------- -------- -------- Net asset value, end of period $ 14.88 $ 13.54 $ 13.49 ==================================================================================== ========== ======== ======== Total return(a) 12.99% 4.35% 0.52% ==================================================================================== ========== ======== ======== Ratios/supplemental data: Net assets, end of period (000s omitted) $214,342 $ 51,964 $ 4,833 ==================================================================================== ========== ======== ======== Ratio of expenses to average net assets 2.32%(c)(d) 2.55%(d) 2.53%(f) ==================================================================================== ========== ======== ======== Ratio of net investment income (loss) to average net assets (0.59)%(c)(e) (0.78)%(e) (0.67)%(f) ==================================================================================== ========== ======== ======== Portfolio turnover rate 39% 68% 67% ==================================================================================== ========== ======== ========
(a) Does not deduct contingent deferred sales charges and for periods less than one year, total returns are not annualized. (b) Calculated using average shares outstanding. (c) Ratios are annualized and based on average net assets of $116,524,386. (d) After fee waivers and expense reimbursements. Ratios of expenses to average net assets before fee waivers are 2.35% (annualized) and 2.56%, respectively for 1996 and 1995. (e) After fee waivers and expense reimbursements. Ratios of net investment income (loss) to average net assets before fee waivers are (0.62%) (annualized) and (0.79)%, respectively for 1996 and 1995. (f) Annualized. 20 23 Directors & Officers BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND 11 Greenway Plaza Charles T. Bauer Charles T. Bauer Suite 1919 Chairman and Chief Executive Officer Chairman Houston, TX 77046 A I M Management Group Inc. Robert H. Graham INVESTMENT ADVISOR Bruce L. Crockett President A I M Advisors, Inc. Director, President, and Chief 11 Greenway Plaza Executive Officer John J. Arthur Suite 1919 COMSAT Corporation Senior Vice President and Treasurer Houston, TX 77046 Owen Daly II Gary T. Crum TRANSFER AGENT Director Senior Vice President A I M Fund Services, Inc. Cortland Trust Inc. P.O. Box 4739 Scott G. Lucas Houston, TX 77210-4739 Carl Frischling Senior Vice President Partner CUSTODIAN Kramer, Levin, Naftalis, Nessen, Carol F. Relihan State Street Bank & Trust Company Kamin & Frankel Senior Vice President and Secretary 225 Franklin Street Boston, MA 02110 Robert H. Graham Dana R. Sutton President and Chief Operating Officer Vice President and Assistant Treasurer COUNSEL TO THE FUND A I M Management Group Inc. Ballard Spahr Robert G. Alley Andrews & Ingersoll John F. Kroeger Vice President 1735 Market Street Formerly, Consultant Philadelphia, PA 19103 Wendell & Stockel Associates, Inc. Melville B. Cox Vice President COUNSEL TO THE DIRECTORS Lewis F. Pennock Kramer, Levin, Naftalis, Attorney Jonathan C. Schoolar Nessen, Kamin & Frankel Vice President 919 Third Avenue Ian W. Robinson New York, NY 10022 Consultant; Formerly Executive P. Michelle Grace Vice President and Assistant Secretary DISTRIBUTOR Chief Financial Officer A I M Distributors, Inc. Bell Atlantic Management David L. Kite 11 Greenway Plaza Services, Inc. Assistant Secretary Suite 1919 Houston, TX 77046 Louis S. Sklar Nancy L. Martin Executive Vice President Assistant Secretary Hines Interests Limited Partnership Ofelia M. Mayo Assistant Secretary Kathleen J. Pflueger Assistant Secretary Samuel D. Sirko Assistant Secretary Stephen I. Winer Assistant Secretary Mary J. Benson Assistant Treasurer
24 [PHOTO OF 11 GREENWAY PLAZA] THE AIM FAMILY OF FUNDS(R) AGGRESSIVE GROWTH AIM Aggressive Growth Fund* AIM Capital Development Fund AIM Constellation Fund AIM Global Aggressive Growth Fund GROWTH AIM Blue Chip Fund AIM Global Growth Fund AIM Growth Fund AIM International Equity Fund AIM Value Fund AIM Weingarten Fund GROWTH AND INCOME AIM Balanced Fund AIM Charter Fund INCOME AND GROWTH AIM Global Utilities Fund HIGH CURRENT INCOME AIM High Yield Fund CURRENT INCOME AIM Global Income Fund AIM Income Fund CURRENT TAX-FREE INCOME AIM Municipal Bond Fund AIM Tax-Exempt Bond Fund of CT AIM Tax-Free Intermediate Shares CURRENT INCOME AND HIGH DEGREE OF SAFETY AIM Intermediate Government Fund** HIGH DEGREE OF SAFETY AND CURRENT INCOME AIM Limited Maturity Treasury Shares STABILITY, LIQUIDITY, AND CURRENT INCOME AIM Money Market Fund STABILITY, LIQUIDITY, AND CURRENT TAX-FREE INCOME AIM Tax-Exempt Cash Fund AIM Management Group has provided leadership in the mutual fund industry since 1976 and currently manages approximately $54 billion *AIM Aggressive Growth Fund was closed to new in assets for more than 2.3 million investors on July 18, 1995. **On September 25, shareholders, including individual investors, 1995, AIM Government Securities Fund became AIM corporate clients, and financial institutions. Intermediate Government Fund. For more complete The AIM Family of Funds(R) is distributed information about any AIM Fund(s), including nationwide, and AIM today ranks among the sales charges and expenses, ask your financial nation's top 15 mutual fund companies in consultant or securities dealer for a free prospectus(es). assets under management, according to Please read the prospectus(es) carefully before you Lipper Analytical Services, Inc. invest or send money. --------------- BULK RATE U.S. POSTAGE [AIM LOGO APPEARS HERE] PAID HOUSTON, TX A I M Distributors, Inc. Permit No. 1919 11 Greenway Plaza, Suite 1919 --------------- Houston, TX 77046
-----END PRIVACY-ENHANCED MESSAGE-----