-----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, SVuRIV6JkibBHhgp/Sxoz8m4jQZjYf4b0M/qv4h/JY2SC2qV/QDbUYmLsI2EW0/j ObqjUNDO0tlWiajrEHBxyw== 0000950129-03-003507.txt : 20030702 0000950129-03-003507.hdr.sgml : 20030702 20030702171543 ACCESSION NUMBER: 0000950129-03-003507 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030702 EFFECTIVENESS DATE: 20030702 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIM INTERNATIONAL FUNDS INC /MD/ CENTRAL INDEX KEY: 0000880859 IRS NUMBER: 760352823 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06463 FILM NUMBER: 03772851 BUSINESS ADDRESS: STREET 1: 11 GREENWAY PLAZA STE 100 CITY: HOUSTON STATE: TX ZIP: 77046 BUSINESS PHONE: 7136261919 MAIL ADDRESS: STREET 1: AIM INTERNATIONAL FUNDS INC STREET 2: 11 GREENWAY PLAZA SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: AIM INTERNATIONAL MUTUAL FUNDS DATE OF NAME CHANGE: 20000323 FORMER COMPANY: FORMER CONFORMED NAME: AIM INTERNATIONAL FUNDS INC DATE OF NAME CHANGE: 19920909 N-CSR 1 h07149bnvcsr.txt AIM INTERNATIONAL FUNDS, INC. - DATED 4/30/2003 ------------------------- OMB APPROVAL ------------------------- OMB Number: 3235-0570 Expires: Nov. 30, 2005 Estimated average burden hours per response: 5.0 ------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6463 --------------------------------------------------------------- AIM International Funds, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 11 Greenway Plaza, Suite 100 Houston, Texas 77046 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Robert H. Graham 11 Greenway Plaza, Suite 100 Houston, Texas 77046 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (713) 626-1919 ---------------------------- Date of fiscal year end: 10/31 ------------------ Date of reporting period: 4/30/03 ------------------ SEMIANNUAL REPORT TO SHAREHOLDERS / APRIL 30, 2003 AIM ASIA PACIFIC GROWTH FUND AIM Asia Pacific Growth Fund seeks to provide long-term growth of capital. The fund seeks to meet its objective by investing, normally, at least 80% of its assets in securities of companies in the Asia Pacific region (except Japanese companies). [COVER IMAGE] [AIM INVESTMENTS LOGO APPEARS HERE] --Servicemark-- YOUR GOALS. OUR SOLUTIONS. --Servicemark-- NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This report may be distributed only to shareholders or to persons who have received a current prospectus of the fund. FUND DATA ================================================================================ TOP COUNTRIES As of 4/30/03 - -------------------------------------------------------------------------------- [PIE CHART] SOUTH KOREA 11.4% AUSTRALIA 17.6% OTHER 16.5% CHINA 2.5% THAILAND 3.3% CAYMAN ISLANDS 3.4% BERMUDA 8.3% SINGAPORE 7.8% HONG KONG 8.2% INDIA 9.7% TAIWAN 11.3% TOTAL NUMBER OF HOLDINGS* 64 TOTAL NET ASSETS $96.6 MILLION ================================================================================ ================================================================================ AVERAGE ANNUAL TOTAL RETURNS As of 4/30/03, including sales charges CLASS A SHARES Inception (11/3/97) -3.84% 5 Years -2.65 1 Year -23.58 CLASS B SHARES Inception (11/3/97) -3.69% 5 Years -2.63 1 Year -23.66 CLASS C SHARES Inception (11/3/97) -3.56% 5 Years -2.28 1 Year -20.49 In addition to returns as of the close of the reporting period, industry regulations require us to provide average annual total returns (including sales charges) as of 3/31/03, the most recent calendar quarter-end, which were: Class A shares, inception (11/3/97), -4.50%; five years, -4.27%; one year, -25.84%. Class B shares, inception (11/3/97), -4.34%; five years, -4.28%; one year, - -25.89%. Class C shares, inception (11/3/97), -4.21; five years, -3.94%; one year, -22.82%. ================================================================================ ================================================================================ FUND VS. INDEXES Total Returns 10/31/02-4/30/03 excluding sales charges CLASS A SHARES -0.82% CLASS B SHARES -1.09 CLASS C SHARES -1.09 MSCI ALL COUNTRY (AC) ASIA PACIFIC FREE EX-JAPAN INDEX (Broad Market Index) 1.08 LIPPER PACIFIC EX-JAPAN FUND INDEX (Peer Group Index) -2.71 Source: Lipper, Inc. Past performance cannot guarantee comparable future results. DUE TO SIGNIFICANT MARKET VOLATILITY, RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN. CALL YOUR FINANCIAL ADVISOR FOR MORE CURRENT PERFORMANCE. ================================================================================
============================================================================================================================= TOP 10 EQUITY HOLDINGS* TOP 10 INDUSTRIES* - ----------------------------------------------------------------------------------------------------------------------------- 1. Samsung Electronics Co., Ltd. (South Korea) 2.6% 1. Banks 8.2% 2. Fountain Set (Holdings) Ltd. (Hong Kong) 2.6 2. Electronic Equipment & Instruments. 6.9 3. Ranbaxy Laboratories Ltd. (India) 2.5 3. Construction Materials 5.0 4. Venture Corp. Ltd. (Singapore) 2.4 4. Pharmaceuticals 4.7 5. ASM Pacific Technology Ltd. (Cayman Islands) 2.3 5. Semiconductors 4.1 6. Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) 2.3 6. Textiles 3.7 7. James Hardie Industries N.V. (Netherlands) 2.3 7. Food Retail 3.7 8. Amcor Ltd. (Australia) 2.2 8. Industrial Conglomerates 3.5 9. Esprit Holdings Ltd. (Bermuda) 2.2 9. Computer Hardware 3.2 10. Johnson Electric Holdings Ltd. (Bermuda) 2.2 10. Real Estate Management & Development 2.4 *Excludes money market fund holdings. The fund's holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security. =============================================================================================================================
ABOUT FUND INFORMATION THROUGHOUT THIS REPORT: o Unless otherwise stated, information presented here is as of 4/30/03 and is based on total net assets. o Effective July 1, 2002, AIM Asian Growth Fund was renamed AIM Asia Pacific Growth Fund. o AIM Asia Pacific Growth Fund's performance figures are historical, and they reflect fund expenses, the reinvestment of distributions and changes in net asset value. o When sales charges are included in performance figures, Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C 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 CDSC on Class C shares is 1% for the first year after purchase. The performance of the fund's share classes will differ due to different sales charge structures and class expenses. o Had the advisor not waived fees and/or reimbursed expenses, returns would have been lower. o International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values 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. o Investing in emerging markets may involve greater risk and potential reward than investing in more established markets. o Investing in a single-region mutual fund may involve greater risk and potential reward than investing in a more diversified fund. o Investing in small and mid-size companies may involve risks not associated with more established companies. Also, micro and small companies may have business risk, significant stock price fluctuations and illiquidity. o The fund's investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than their original cost. o In the Schedule of Investments in this report, the fund's portfolio holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o The MSCI All Country (AC) Asia Pacific Free ex-Japan Index is a group of developed and emerging Asian and Asia-Pacific markets (except Japan) covered by Morgan Stanley Capital International. A "free" index represents actual buyable opportunities for global investors. o The unmanaged Lipper Pacific ex-Japan Fund Index represents an average of the largest Pacific ex-Japan funds tracked by Lipper, Inc., an independent mutual fund performance monitor, and is considered representative of Pacific ex-Japan stocks. o A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of an index of funds reflects fund expenses. Performance of a market index does not. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, aiminvestments.com. FOR MORE INFORMATION, PLEASE VISIT AIMinvestments.com. TO OUR SHAREHOLDERS DEAR SHAREHOLDER: [PHOTO OF This is the report on AIM Asia Pacific Growth Fund for the ROBERT H. six months ended April 30, 2003. You will note that we have GRAHAM] adopted a more concise format for our semiannual reports. Important information such as top holdings and performance as of the close of the reporting period appear on the ON THE CURRENCY opposite page. This letter will provide an overview of the FRONT, THE U.S. markets and your fund during the six months covered by this DOLLAR WAS WEAK report. As always, timely information about your fund and COMPARED TO MANY the markets in general is available at our Web site, FOREIGN CURRENCIES. aiminvestments.com. ROBERT H. GRAHAM MARKET CONDITIONS International markets, as measured by the unmanaged MSCI Europe, Australasia and the Far East Index (the EAFE(R)), a group of foreign securities tracked by Morgan Stanley Capital International, produced negative returns for the first quarter of 2003. International markets, however, rallied in April. This rally helped push international market returns into positive territory for the six-month reporting period. European markets rallied toward the close of the reporting period, with the MSCI (Morgan Stanley Capital International) Europe Index, often considered representative of the European equity market, gaining 13.49% in April. In European monetary affairs, the European Central Bank (ECB) cut its benchmark interest rate 25 basis points to 2.50% in March. It remained at that level as the reporting period closed. As widely discussed, in Asia, the epidemic of severe acute respiratory syndrome (SARS) dealt a blow to local economies. However, the MSCI All Country (AC) Asia Pacific Free ex-Japan Index, a group of developed and emerging Asian and Asia-Pacific markets (except Japan) covered by Morgan Stanley Capital International, rallied in April and was positive for the six-month reporting period. On the currency front, the U.S. dollar was weak compared to many foreign currencies. In particular, the euro showed strength as it appreciated nearly 13% against the dollar during the reporting period. Other notable currencies that gained ground on the dollar included the Australian dollar, Swiss franc, British pound and Canadian dollar. YOUR FUND Throughout the reporting period, AIM Asia Pacific Growth fund managers Shuxin Cao and Barrett K. Sides sought to identify companies, that in their view, have experienced above-average long-term growth in earnings and prospects for future growth. As of April 30, 2003, the fund had its largest exposure in the information technology, consumer discretionary and financials sectors. Over the course of the reporting period, the fund's exposure to information technology and materials increased, while its weighting in consumer staples and financials decreased. The fund had 64 equity holdings at the end of the reporting period. IN CLOSING I thank you for your continued participation in AIM Asia Pacific Growth Fund, and I look forward to reporting to you again in six months. If you have any questions, please consult your financial advisor to help you with your investment choices. As always, members of our award-winning Client Services department are ready to help. They can be reached at 800-959-4246. Sincerely, /s/ ROBERT H. GRAHAM Robert H. Graham Chairman April 30, 2003 FINANCIALS SCHEDULE OF INVESTMENTS April 30, 2003 (Unaudited)
MARKET SHARES VALUE - -------------------------------------------------------------------------- FOREIGN STOCKS & OTHER EQUITY INTERESTS-87.01% AUSTRALIA-17.58% Amcor Ltd. (Paper Packaging) 414,400 $ 2,157,628 - -------------------------------------------------------------------------- BHP Billiton Ltd. (Diversified Metals & Mining) 334,400 1,894,046 - -------------------------------------------------------------------------- BHP Steel Ltd. (Steel) 24,740 52,548 - -------------------------------------------------------------------------- Boral Ltd. (Construction Materials) 261,000 778,401 - -------------------------------------------------------------------------- Coca-Cola Amatil Ltd. (Soft Drinks) 232,000 827,096 - -------------------------------------------------------------------------- Cochlear Ltd. (Health Care Equipment) 87,500 1,856,311 - -------------------------------------------------------------------------- Foodland Associated Ltd. (Food Retail) 156,376 1,930,154 - -------------------------------------------------------------------------- Ramsay Health Care Ltd. (Health Care Facilities) 759,200 1,650,598 - -------------------------------------------------------------------------- St. George Bank Ltd. (Banks) 81,700 1,013,545 - -------------------------------------------------------------------------- Toll Holdings Ltd. (Trucking) 425,800 1,883,502 - -------------------------------------------------------------------------- Wesfarmers Ltd. (Industrial Conglomerates) 96,900 1,487,461 - -------------------------------------------------------------------------- Woolworths Ltd. (Food Retail) 178,500 1,444,962 ========================================================================== 16,976,252 ========================================================================== BERMUDA-8.26% Esprit Holdings Ltd. (Apparel Retail) 1,079,000 2,116,758 - -------------------------------------------------------------------------- Johnson Electric Holdings Ltd. (Electrical Components & Equipment) 1,953,000 2,103,487 - -------------------------------------------------------------------------- Li & Fung Ltd. (Distributors) 1,406,000 1,577,436 - -------------------------------------------------------------------------- People's Food Holdings Ltd. (Packaged Foods & Meats) 737,000 365,705 - -------------------------------------------------------------------------- Texwinca Holdings Ltd. (Textiles) 1,385,000 1,065,514 - -------------------------------------------------------------------------- Wah Sang Gas Holdings Ltd. (Gas Utilities) 6,828,000 744,167 ========================================================================== 7,973,067 ========================================================================== CAYMAN ISLANDS-3.39% ASM Pacific Technology Ltd. (Semiconductor Equipment) 910,000 2,257,775 - -------------------------------------------------------------------------- Convenience Retail Asia Ltd. (Food Retail) (Acquired 03/21/01; Cost $113,601)(a)(b) 744,000 161,220 - -------------------------------------------------------------------------- Xinao Gas Holdings Ltd. (Gas Utilities)(a) 3,400,000 854,463 ========================================================================== 3,273,458 ========================================================================== CHINA-2.53% Anhui Conch Cement Co. Ltd.-Class H (Construction Materials) 2,790,000 1,287,849 - -------------------------------------------------------------------------- Travelsky Technology Ltd.-Class H (Diversified Commercial Services) (Acquired 02/01/01-01/14/03; $427,718)(b) 675,000 404,616 - -------------------------------------------------------------------------- Tsingtao Brewery Co. Ltd.-Class H (Brewers) 1,146,000 749,399 ========================================================================== 2,441,864 ==========================================================================
MARKET SHARES VALUE - -------------------------------------------------------------------------- HONG KONG-8.21% Cheung Kong (Holdings) Ltd. (Real Estate Management & Development) 109,000 $ 602,368 - -------------------------------------------------------------------------- China Pharmaceutical Enterprise and Investment Corp. Ltd. (Pharmaceuticals) 2,496,000 696,085 - -------------------------------------------------------------------------- CNOOC Ltd.-ADR (Oil & Gas Exploration & Production) 20,600 540,132 - -------------------------------------------------------------------------- Dah Sing Financial Group (Banks) 284,400 1,298,189 - -------------------------------------------------------------------------- Fountain Set (Holdings) Ltd. (Textiles) 3,654,000 2,483,148 - -------------------------------------------------------------------------- Sun Hung Kai Properties Ltd. (Real Estate Management & Development) 122,000 572,531 - -------------------------------------------------------------------------- Techtronic Industries Co. Ltd. (Household Appliances) (Acquired 04/29/02-08/09/02; Cost $1,077,163)(b) 1,378,000 1,731,544 ========================================================================== 7,923,997 ========================================================================== INDIA-9.71% Bajaj Auto Ltd. (Motorcycle Manufacturers)(a) 60,000 612,426 - -------------------------------------------------------------------------- Dr. Reddy's Laboratories Ltd. (Pharmaceuticals) 74,000 1,366,076 - -------------------------------------------------------------------------- HDFC Bank Ltd.-ADR (Banks) 125,700 2,058,966 - -------------------------------------------------------------------------- Hindustan Lever Ltd. (Household Products) 338,000 1,031,071 - -------------------------------------------------------------------------- Infosys Technologies Ltd. (IT Consulting & Services) 31,769 1,873,545 - -------------------------------------------------------------------------- Ranbaxy Laboratories Ltd. (Pharmaceuticals) 170,960 2,438,673 ========================================================================== 9,380,757 ========================================================================== INDONESIA-0.06% Lippo Bank (Banks)(a) 1,181,296 61,274 ========================================================================== NETHERLANDS-2.28% James Hardie Industries N.V. (Construction Materials) 534,600 2,197,296 ========================================================================== PHILIPPINES-1.15% SM Prime Holdings, Inc. (Real Estate Management & Development) 11,876,900 1,109,039 ========================================================================== SINGAPORE-7.80% Keppel Corp. Ltd. (Industrial Conglomerates) 769,000 1,933,937 - -------------------------------------------------------------------------- SembCorp Logistics Ltd. (Marine Ports & Services) 1,800,000 1,816,798 - -------------------------------------------------------------------------- United Overseas Bank Ltd. (Banks) 257,000 1,507,119 - -------------------------------------------------------------------------- Venture Corp. Ltd. (Electronic Equipment & Instruments) 273,000 2,278,271 ========================================================================== 7,536,125 ==========================================================================
F-1
MARKET SHARES VALUE - -------------------------------------------------------------------------- SOUTH KOREA-11.40% Cheil Communications Inc. (Advertising)(a) 8,740 $ 759,218 - -------------------------------------------------------------------------- CJ Corp. (Packaged Foods & Meats) 44,190 1,509,992 - -------------------------------------------------------------------------- Hana Bank (Banks) 88,600 762,347 - -------------------------------------------------------------------------- Hyundai Motor Co. Ltd. (Automobile Manufacturers) 22,400 529,337 - -------------------------------------------------------------------------- Kook Soon Dang Brewery Co., Ltd. (Brewers) 46,289 1,010,011 - -------------------------------------------------------------------------- Kookmin Bank (Banks)(a) 44,300 1,243,829 - -------------------------------------------------------------------------- LG Chem Ltd. (Commodity Chemicals) 49,530 1,643,523 - -------------------------------------------------------------------------- Samsung Electronics Co., Ltd. (Semiconductors)(a) 9,920 2,491,231 - -------------------------------------------------------------------------- Shinsegae Co., Ltd. (Department Stores)(a) 8,900 1,062,577 ========================================================================== 11,012,065 ========================================================================== TAIWAN-11.32% Ambit Microsystems Corp. (Computer Storage & Peripherals)(a) 566,000 1,615,983 - -------------------------------------------------------------------------- Compal Electronics Inc. (Computer Hardware) 1,915,000 2,066,112 - -------------------------------------------------------------------------- Hon Hai Precision Industry Co., Ltd. (Electronic Equipment & Instruments) 380,200 1,189,148 - -------------------------------------------------------------------------- MediaTeK Inc. (Semiconductors)(a) 216,000 1,766,427 - -------------------------------------------------------------------------- Nien Made Enterprise Co., Ltd. (Consumer Electronics)(a) 514,520 1,085,143 - -------------------------------------------------------------------------- Quanta Computer Inc. (Computer Hardware) 570,050 997,792 - -------------------------------------------------------------------------- Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors)(a) 1,609,544 2,207,638 ========================================================================== 10,928,243 ========================================================================== THAILAND-3.32% Advanced Info Service PCL (Wireless Telecommunication Services) 1,190,000 1,251,607 - --------------------------------------------------------------------------
MARKET SHARES VALUE - -------------------------------------------------------------------------- THAILAND-(CONTINUED) Delta Electronics (Thailand) PCL (Electronic Equipment & Instruments) (Acquired 01/07/02; Cost $792,056)(b)(c) 1,102,000 $ 734,066 - -------------------------------------------------------------------------- Land and Houses PCL (Homebuilding) 3,630,000 653,290 - -------------------------------------------------------------------------- Siam Cement PCL (The) (Construction Materials)(a) 190,000 563,983 ========================================================================== 3,202,946 ========================================================================== Total Foreign Stocks & Other Equity Interests (Cost $75,302,036) 84,016,383 ========================================================================== MONEY MARKET FUNDS-8.97% STIC Liquid Assets Portfolio(d) 4,329,440 4,329,440 - -------------------------------------------------------------------------- STIC Prime Portfolio(d) 4,329,440 4,329,440 ========================================================================== Total Money Market Funds (Cost $8,658,880) 8,658,880 ========================================================================== TOTAL INVESTMENTS-95.98% (excluding investments purchased with cash collateral from securities loaned) (Cost $83,960,916) 92,675,263 ========================================================================== INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS-9.10% STIC Liquid Assets Portfolio(d)(e) 4,393,989 4,393,989 - -------------------------------------------------------------------------- STIC Prime Portfolio(d)(e) 4,393,988 4,393,988 ========================================================================== Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $8,787,977) 8,787,977 ========================================================================== TOTAL INVESTMENTS-105.08% (Cost $92,748,893) 101,463,240 ========================================================================== OTHER ASSETS LESS LIABILITIES-(5.08%) (4,903,238) ========================================================================== NET ASSETS-100.00% $ 96,560,002 __________________________________________________________________________ ==========================================================================
Investment Abbreviations: ADR - American Depositary Receipt
Notes to Schedule of Investments: (a) Non-income producing security. (b) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction); the security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at 04/30/03 was $3,031,446, which represented 3.14% of the Fund's net assets. These securities are not considered to be illiquid. (c) Security fair valued in accordance with the procedures established by the Board of Directors. (d) The money market fund and the Fund are affiliated by having the same investment advisor. (e) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Notes to Financial Statements. F-2 STATEMENT OF ASSETS AND LIABILITIES April 30, 2003 (Unaudited) ASSETS: Investments, at market value (cost $92,748,893)* $101,463,240 - ----------------------------------------------------------- Foreign currencies, at value (cost $1,008,831) 1,005,167 - ----------------------------------------------------------- Receivables for: Investments sold 743,465 - ----------------------------------------------------------- Capital stock sold 4,749,700 - ----------------------------------------------------------- Dividends 226,907 - ----------------------------------------------------------- Investment for deferred compensation plan 21,858 - ----------------------------------------------------------- Other assets 42,922 =========================================================== Total assets 108,253,259 ___________________________________________________________ =========================================================== LIABILITIES: Payables for: Investments purchased 797,590 - ----------------------------------------------------------- Capital stock reacquired 1,818,572 - ----------------------------------------------------------- Deferred compensation plan 21,858 - ----------------------------------------------------------- Collateral upon return of securities loaned 8,787,977 - ----------------------------------------------------------- Accrued distribution fees 65,239 - ----------------------------------------------------------- Accrued directors' fees 700 - ----------------------------------------------------------- Accrued transfer agent fees 102,901 - ----------------------------------------------------------- Accrued operating expenses 98,420 =========================================================== Total liabilities 11,693,257 =========================================================== Net assets applicable to shares outstanding $ 96,560,002 ___________________________________________________________ =========================================================== NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $173,924,695 - ----------------------------------------------------------- Undistributed net investment income (loss) (14,158) - ----------------------------------------------------------- Undistributed net realized gain (loss) from investment securities and foreign currencies (86,063,096) - ----------------------------------------------------------- Unrealized appreciation of investment securities and foreign currencies 8,712,561 =========================================================== $ 96,560,002 ___________________________________________________________ =========================================================== NET ASSETS: Class A $ 74,643,898 ___________________________________________________________ =========================================================== Class B $ 17,161,024 ___________________________________________________________ =========================================================== Class C $ 4,755,080 ___________________________________________________________ =========================================================== CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 240,000,000 - ----------------------------------------------------------- Outstanding 8,819,953 ___________________________________________________________ =========================================================== Class B: Authorized 240,000,000 - ----------------------------------------------------------- Outstanding 2,097,335 ___________________________________________________________ =========================================================== Class C: Authorized 240,000,000 - ----------------------------------------------------------- Outstanding 583,109 ___________________________________________________________ =========================================================== Class A: Net asset value per share $ 8.46 - ----------------------------------------------------------- Offering price per share: (Net asset value of $8.46 divided by 94.50%) $ 8.95 ___________________________________________________________ =========================================================== Class B: Net asset value and offering price per share $ 8.18 ___________________________________________________________ =========================================================== Class C: Net asset value and offering price per share $ 8.15 ___________________________________________________________ ===========================================================
* At April 30, 2003, securities with an aggregate market value of $8,325,656 were on loan to brokers. See Notes to Financial Statements. F-3 STATEMENT OF OPERATIONS For the six months ended April 30, 2003 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding tax of $60,194) $1,076,716 - -------------------------------------------------------------------------- Dividends from affiliated money market funds 37,816 - -------------------------------------------------------------------------- Interest 4,952 - -------------------------------------------------------------------------- Security lending income 5,424 ========================================================================== Total investment income 1,124,908 ========================================================================== EXPENSES: Advisory fees 435,847 - -------------------------------------------------------------------------- Administrative services fees 24,795 - -------------------------------------------------------------------------- Custodian fees 90,303 - -------------------------------------------------------------------------- Distribution fees -- Class A 117,894 - -------------------------------------------------------------------------- Distribution fees -- Class B 93,546 - -------------------------------------------------------------------------- Distribution fees -- Class C 28,401 - -------------------------------------------------------------------------- Transfer agent fees 345,203 - -------------------------------------------------------------------------- Directors' fees 4,243 - -------------------------------------------------------------------------- Other 129,213 ========================================================================== Total expenses 1,269,445 ========================================================================== Less: Fees waived and expenses paid indirectly (156,571) ========================================================================== Net expenses 1,112,874 ========================================================================== Net investment income 12,034 ========================================================================== REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND FOREIGN CURRENCIES: Net realized gain (loss) from: Investment securities (879,505) - -------------------------------------------------------------------------- Foreign currencies (24,615) ========================================================================== (904,120) ========================================================================== Change in net unrealized appreciation of: Investment securities 2,815,597 - -------------------------------------------------------------------------- Foreign currencies 23,516 ========================================================================== 2,839,113 ========================================================================== Net gain from investment securities and foreign currencies 1,934,993 ========================================================================== Net increase in net assets resulting from operations $1,947,027 __________________________________________________________________________ ==========================================================================
See Notes to Financial Statements. F-4 STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2003 and the year ended October 31, 2002 (Unaudited)
APRIL 30, OCTOBER 31, 2003 2002 - ------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $ 12,034 $ (644,688) - ------------------------------------------------------------------------------------------ Net realized gain (loss) from investment securities and foreign currencies (904,120) (1,874,392) - ------------------------------------------------------------------------------------------ Change in net unrealized appreciation of investment securities and foreign currencies 2,839,113 6,142,476 ========================================================================================== Net increase in net assets resulting from operations 1,947,027 3,623,396 ========================================================================================== Share transactions-net: Class A 10,078,141 (1,562,080) - ------------------------------------------------------------------------------------------ Class B (2,645,723) (5,905,946) - ------------------------------------------------------------------------------------------ Class C (1,560,540) 686,025 ========================================================================================== Net increase (decrease) in net assets resulting from share transactions 5,871,878 (6,782,001) ========================================================================================== Net increase (decrease) in net assets 7,818,905 (3,158,605) ========================================================================================== NET ASSETS: Beginning of period 88,741,097 91,899,702 ========================================================================================== End of period $ 96,560,002 $ 88,741,097 __________________________________________________________________________________________ ==========================================================================================
NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM Asia Pacific Growth 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 series management investment company consisting of six separate portfolios. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be 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 long-term growth of capital. Companies are listed in the Schedule of Investments based on the country in which they are organized. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued at the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors of the Company. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, F-5 futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Occasionally, events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not be reflected in the computation of the Fund's net asset value. If a development/event is so significant that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Directors. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes. D. 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 gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. E. FOREIGN CURRENCY TRANSLATIONS -- Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. 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. G. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses are charged to each class pursuant to a transfer agency and service agreement adopted by the Fund with respect to such class. All other expenses are allocated among the classes based on relative net assets. 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 investment advisory agreement, the Fund pays an advisory fee to AIM 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. AIM has voluntarily agreed to waive fees and/or reimburse expenses (excluding interest, taxes, dividends on short sales, extraordinary items and increases in expenses due to expense offset arrangements, if any) for Class A, Class B and Class C shares to the extent necessary to limit the total annual fund operating expenses of Class A to 2.25%. Voluntary expense limitations may be rescinded, terminated or modified at any time without further notice to investors. During periods of voluntary waivers or reimbursements to the extent the annualized expense ratio does not exceed the limit, AIM will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. Further, AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds in which the Fund has invested (excluding investments made in affiliated money market funds with cash collateral from securities loaned by the Fund). For the six months ended April 30, 2003, AIM waived fees of $155,836. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2003, AIM was paid $24,795 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and shareholder services to the Fund. During the six months ended April 30, 2003, AFS retained $200,518 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, Class B and Class C shares of the Fund. The Company has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares, Class B shares and Class C shares F-6 (collectively the "Plans"). The Fund, pursuant to the Plans, pays AIM Distributors compensation at the annual rate of 0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of these amounts, the Fund may pay a service fee of 0.25% of the average daily net assets of the Class A, Class B or Class C shares to selected dealers and financial institutions who furnish continuing personal shareholder services to their customers who purchase and own the appropriate class of shares of the Fund. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the six months ended April 30, 2003, the Class A, Class B and Class C shares paid $117,894, $93,546, and $28,401, respectively. Front-end sales commissions and contingent deferred sales charges (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. Contingent deferred sales charges ("CDSCs") are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2003, AIM Distributors retained $0 in front-end sales commissions from the sale of Class A shares and $69,163, $0 and $2,985 for Class A, Class B shares and Class C shares, respectively, for CDSCs imposed upon redemptions by shareholders. Certain officers and directors of the Company are officers and directors of AIM, AFS and/or AIM Distributors. During the six months ended April 30, 2003, the Fund paid legal fees of $1,241 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Company's directors. A member of that firm is a director of the Company. NOTE 3--INDIRECT EXPENSES For the six months ended April 30, 2003, the Fund received reductions in transfer agency fees from AFS (an affiliate of AIM) of $735 under an expense offset arrangement which resulted in a reduction of the Fund's total expenses of $735. NOTE 4--DIRECTORS' FEES Directors' fees represent remuneration paid to each director who is not an "interested person" of AIM. Directors have the option to defer compensation payable by the Company. The Directors deferring compensation have the option to select various AIM Funds in which all or part of their deferral accounts shall be deemed to be invested. NOTE 5--BORROWINGS AIM has established an interfund lending facility for temporary borrowings by the AIM Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. During the reporting period, the Fund was a participant in a committed line of credit facility with a syndicate administered by Citibank, N.A. The Fund could borrow up to the lesser of (i) $500,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which were parties to the line of credit could borrow on a first come, first served basis. The funds which were party to the line of credit were charged a commitment fee of 0.09% on the unused balance of the committed line. The commitment fee was allocated among the funds based on their respective average net assets for the period. The committed line of credit facility expired May 20, 2003. During the six months ended April 30, 2003, the Fund did not borrow under the interfund lending or the committed line of credit facility. NOTE 6--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities to the extent of one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value, determined daily, of the loaned securities. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral pursuant to these loans is invested in short-term money market instruments or affiliated money market funds. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral may be temporarily less than the value of the securities on loan. At April 30, 2003, securities with an aggregate value of $8,325,656 were on loan to brokers. The loans were secured by cash collateral of $8,787,977 received by the Fund and invested in affiliated money market funds. For the six months ended April 30, 2003, the Fund received fees of $5,424 for securities lending. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of distributable earnings will be updated at the Fund's fiscal year-end. The Fund has a capital loss carryforward for tax purposes which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD - ---------------------------------------------------------- October 31, 2005 $54,943,768 - ---------------------------------------------------------- October 31, 2009 27,317,937 - ---------------------------------------------------------- October 31, 2010 1,617,552 ========================================================== Total capital loss carryforward $83,879,257 __________________________________________________________ ==========================================================
F-7 NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended April 30, 2003 was $26,689,265 and $28,014,420, respectively. The amount of unrealized appreciation (depreciation) of investment securities, for tax purposes, as of April 30, 2003 is as follows: Aggregate unrealized appreciation of investment securities $12,840,574 - --------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (5,103,810) =========================================================================== Net unrealized appreciation of investment securities $ 7,736,764 ___________________________________________________________________________ =========================================================================== Cost of investments for tax purposes is $93,726,476.
NOTE 9--CAPITAL STOCK The Fund currently offers three different classes of shares: Class A shares, Class B shares and Class C shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with a CDSC. Under some circumstances, Class A shares are subject to CDSCs. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Changes in capital stock outstanding during the six months ended April 30, 2003 and the year ended October 31, 2002 were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 31, 2003 OCTOBER 31, 2002 ---------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Sold: Class A 24,736,984 $ 211,132,523 36,470,984 $ 349,896,882 - -------------------------------------------------------------------------------------------------------------------------- Class B 820,878 6,773,895 2,963,386 28,352,153 - -------------------------------------------------------------------------------------------------------------------------- Class C 4,762,802 39,429,407 10,574,444 98,792,151 ========================================================================================================================== Conversion of Class B shares to Class A shares: Class A 88,314 759,047 369,580 3,681,223 - -------------------------------------------------------------------------------------------------------------------------- Class B (91,521) (759,047) (381,540) (3,681,223) ========================================================================================================================== Reacquired: Class A (23,366,270) (201,813,429) (36,664,943) (355,140,185) - -------------------------------------------------------------------------------------------------------------------------- Class B (1,039,404) (8,660,571) (3,215,765) (30,576,876) - -------------------------------------------------------------------------------------------------------------------------- Class C (4,909,034) (40,989,947) (10,405,450) (98,106,126) ========================================================================================================================== 1,002,749 $ 5,871,878 (289,304) $ (6,782,001) __________________________________________________________________________________________________________________________ ==========================================================================================================================
F-8 NOTE 10--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
CLASS A --------------------------------------------------------------------------------- NOVEMBER 3, 1997 SIX MONTHS (DATE OPERATIONS ENDED YEAR ENDED OCTOBER 31, COMMENCED) TO APRIL 30, -------------------------------------------- OCTOBER 31, 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.53 $ 8.59 $ 10.70 $ 10.76 $ 7.69 $ 10.00 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.01 (0.04)(a) (0.01)(a) (0.07)(a) (0.03)(a) 0.05 - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) (0.08) (0.02) (2.06) 0.01 3.14 (2.36) ================================================================================================================================= Total from investment operations (0.07) (0.06) (2.07) (0.06) 3.11 (2.31) ================================================================================================================================= Less distributions: Dividends from net investment income -- -- -- -- (0.04) -- - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gains -- -- (0.04) -- -- -- ================================================================================================================================= Net asset value, end of period $ 8.46 $ 8.53 $ 8.59 $ 10.70 $ 10.76 $ 7.69 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) (0.82)% (0.70)% (19.46)% (0.56)% 40.66% (23.10)% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $74,644 $62,806 $61,729 $93,755 $25,420 $ 7,716 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets: With fee waivers 2.25%(c) 2.25% 2.02% 1.92% 1.92% 1.92%(d) - --------------------------------------------------------------------------------------------------------------------------------- Without fee waivers 2.59%(c) 2.49% 2.37% 2.06% 2.72% 4.88%(d) ================================================================================================================================= Ratio of net investment income (loss) to average net assets 0.20%(c) (0.41)% (0.06)% (0.57)% (0.50)% 0.70%(d) _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 32% 114% 73% 64% 142% 79% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratio are annualized and based on average daily net assets of $67,926,280. (d) Annualized. (e) Not annualized for periods less than one year. F-9 NOTE 10--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS B ----------------------------------------------------------------------------------------- NOVEMBER 3, 1997 SIX MONTHS (DATE OPERATIONS ENDED YEAR ENDED OCTOBER 31, COMMENCED) TO APRIL 30, ------------------------------------------------- OCTOBER 31, 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.27 $ 8.38 $ 10.50 $ 10.65 $ 7.63 $10.00 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.02) (0.10)(a) (0.07)(a) (0.17)(a) (0.13)(a) (0.01) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) (0.07) (0.01) (2.01) 0.02 3.16 (2.36) ================================================================================================================================= Total from investment operations (0.09) (0.11) (2.08) (0.15) 3.03 (2.37) ================================================================================================================================= Less distributions: Dividends from net investment income -- -- -- -- (0.01) -- - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gains -- -- (0.04) -- -- -- ================================================================================================================================= Net asset value, end of period $ 8.18 $ 8.27 $ 8.38 $ 10.50 $ 10.65 $ 7.63 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) (1.09)% (1.31)% (19.92)% (1.41)% 39.76% (23.70)% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $17,161 $19,916 $25,479 $39,852 $12,070 $3,030 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets: With fee waivers 2.90%(c) 2.90% 2.67% 2.67% 2.79% 2.80%(d) - --------------------------------------------------------------------------------------------------------------------------------- Without fee waivers 3.24%(c) 3.14% 3.02% 2.76% 3.59% 5.75%(d) ================================================================================================================================= Ratio of net investment income (loss) to average net assets (0.45)%(c) (1.06)% (0.72)% (1.32)% (1.37)% (0.18)%(d) _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 32% 114% 73% 64% 142% 79% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $18,864,273. (d) Annualized. (e) Not annualized for periods less than one year. F-10 NOTE 10--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS C ---------------------------------------------------------------------------------- NOVEMBER 3, 1997 SIX MONTHS (DATE OPERATIONS ENDED YEAR ENDED OCTOBER 31, COMMENCED) TO APRIL 30, ------------------------------------------- OCTOBER 31, 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.25 $ 8.37 $ 10.49 $10.63 $ 7.61 $ 10.00 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.02) (0.10)(a) (0.07)(a) (0.17)(a) (0.13)(a) (0.01) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) (0.08) (0.02) (2.01) 0.03 3.16 (2.38) ================================================================================================================================= Total from investment operations (0.10) (0.12) (2.08) (0.14) 3.03 (2.39) ================================================================================================================================= Less distributions: Dividends from net investment income -- -- -- -- (0.01) -- - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gains -- -- (0.04) -- -- -- ================================================================================================================================= Net asset value, end of period $ 8.15 $ 8.25 $ 8.37 $10.49 $10.63 $ 7.61 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) (1.21)% (1.43)% (19.94)% (1.32)% 39.86% (23.90)% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $4,755 $6,019 $ 4,692 $6,797 $5,008 $ 686 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets: With fee waivers 2.90%(c) 2.90% 2.67% 2.67% 2.79% 2.80%(d) - --------------------------------------------------------------------------------------------------------------------------------- Without fee waivers 3.24%(c) 3.14% 3.02% 2.76% 3.59% 5.75%(d) ================================================================================================================================= Ratio of net investment income (loss) to average net assets (0.45)%(c) (1.06)% (0.72)% (1.32)% (1.37)% (0.18)%(d) _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 32% 114% 73% 64% 142% 79% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $5,727,217. (d) Annualized. (e) Not annualized for periods less than one year. F-11 OTHER INFORMATION DIRECTORS AND OFFICERS BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND Robert H. Graham Robert H. Graham 11 Greenway Plaza Mark H. Williamson Chairman and President Suite 100 Frank S. Bayley Houston, TX 77046 Bruce L. Crockett Mark H. Williamson Albert R. Dowden Executive Vice President INVESTMENT ADVISOR Edward K. Dunn Jr. A I M Advisors, Inc. Jack M. Fields Kevin M. Carome 11 Greenway Plaza Carl Frischling Senior Vice President Suite 100 Prema Mathai-Davis Houston, TX 77046 Lewis F. Pennock Gary T. Crum Ruth H. Quigley Senior Vice President TRANSFER AGENT Louis S. Sklar A I M Fund Services, Inc. Dana R. Sutton P.O. Box 4739 Vice President and Treasurer Houston, TX 77210-4739 Robert G. Alley CUSTODIAN Vice President State Street Bank and Trust Company 225 Franklin Street Stuart W. Coco Boston, MA 02110 Vice President COUNSEL TO THE FUND Melville B. Cox Ballard Spahr Vice President Andrews & Ingersoll, LLP 1735 Market Street Edgar M. Larsen Philadelphia, PA 19103 Vice President COUNSEL TO THE TRUSTEES Nancy L. Martin Kramer, Levin, Naftalis & Frankel LLP Secretary 919 Third Avenue New York, NY 10022 DISTRIBUTOR A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046
THE AIM FAMILY OF FUNDS--Registered Trademark-- DOMESTIC EQUITY INTERNATIONAL/GLOBAL EQUITY FIXED INCOME AIM Aggressive Growth Fund AIM Asia Pacific Growth Fund(2) TAXABLE AIM Balanced Fund* AIM Developing Markets Fund AIM Basic Balanced Fund* AIM European Growth Fund(2) AIM Floating Rate Fund AIM Basic Value Fund AIM European Small Company Fund AIM High Yield Fund AIM Blue Chip Fund AIM Global Aggressive Growth Fund AIM Income Fund AIM Capital Development Fund AIM Global Growth Fund AIM Intermediate Government Fund AIM Charter Fund AIM Global Trends Fund AIM Limited Maturity Treasury Fund(6,7) AIM Constellation Fund AIM Global Value Fund(5) AIM Money Market Fund AIM Dent Demographic Trends Fund AIM International Core Equity Fund(2) AIM Short-Term Bond Fund AIM Diversified Dividend Fund(1) AIM International Emerging Growth Fund AIM Total Return Bond Fund AIM Emerging Growth Fund AIM International Growth Fund(2) AIM Large Cap Basic Value Fund TAX-FREE AIM Large Cap Growth Fund SECTOR EQUITY AIM Libra Fund AIM High Income Municipal Fund AIM Mid Cap Basic Value Fund AIM Global Energy Fund AIM Municipal Bond Fund AIM Mid Cap Core Equity Fund(2) AIM Global Financial Services Fund AIM Tax-Exempt Cash Fund AIM Mid Cap Growth Fund AIM Global Health Care Fund AIM Tax-Free Intermediate Fund(6,7) AIM Opportunities I Fund(2,3) AIM Global Science and Technology Fund(2) AIM Opportunities II Fund(2,3) AIM Global Utilities Fund AIM Opportunities III Fund(2,3) AIM New Technology Fund AIM Premier Equity Fund(2) AIM Real Estate Fund AIM Premier Equity II Fund(2) AIM Select Equity Fund AIM Small Cap Equity Fund AIM Small Cap Growth Fund(4) AIM Weingarten Fund *Domestic equity and income fund
(1) Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. (2) The following fund name changes became effective July 1, 2002: AIM Asian Growth Fund renamed AIM Asia Pacific Growth Fund; AIM European Development Fund renamed AIM European Growth Fund; AIM Global Telecommunications and Technology Fund renamed AIM Global Science and Technology Fund; AIM International Equity Fund renamed AIM International Growth Fund; AIM International Value Fund renamed AIM International Core Equity Fund; AIM Large Cap Opportunities Fund renamed AIM Opportunities III Fund; AIM Mid Cap Equity Fund renamed AIM Mid Cap Core Equity Fund; AIM Mid Cap Opportunities Fund renamed AIM Opportunities II Fund; AIM Small Cap Opportunities Fund renamed AIM Opportunities I Fund; AIM Value Fund renamed AIM Premier Equity Fund; AIM Value II Fund renamed AIM Premier Equity II Fund. (3) Effective October 1, 2002, the fund was reopened to new investors. (4) AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. (5) Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. (6) Class A shares closed to new investors on October 30, 2002. (7) Class A3 shares were first offered on October 31, 2002. For more complete information about any AIM fund, including sales charges and expenses, ask your financial advisor for a prospectus. Please read it carefully before investing. This brochure is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Please read it carefully before investing. If used after July 20, 2003, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual Funds distributed by A I M Distributors, Inc. A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $115 billion in assets for approximately 9 million shareholders, including individual investors, corporate clients and financial institutions. The AIM Family of Funds--Registered Trademark-- is distributed nationwide. AIM is a subsidiary of AMVESCAP PLC, one of the world's largest independent financial services companies with $319 billion in assets under management. Data as of March 31, 2003. Mutual Retirement Annuities College Separately Offshore Alternative Cash Funds Products Savings Managed Products Investments Management Plans Accounts
[AIM INVESTMENTS LOGO APPEARS HERE] --SERVICEMARK-- YOUR GOALS. OUR SOLUTIONS. --SERVICEMARK-- AIMinvestment.com APG-SAR-1 SEMIANNUAL REPORT TO SHAREHOLDERS / APRIL 30, 2003 AIM EUROPEAN GROWTH FUND (COVER IMAGE) (AIM INVESTMENTS LOGO APPEARS HERE) --Servicemark-- YOUR GOALS. OUR SOLUTIONS.--Servicemark-- AIM European Growth Fund seeks to provide long-term growth of capital. It invests primarily in securities of European companies. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This report may be distributed only to shareholders or to persons who have received a current prospectus of the fund. FUND DATA ================================================================================ TOP COUNTRIES* As of 4/30/03 - -------------------------------------------------------------------------------- (PIE CHART) UNITED KINGDOM 25.6% OTHER 19.5% BERMUDA 2.1% HUNGARY 2.2% SWITZERLAND 2.5% BELGIUM 2.8% FRANCE 6.7% GERMANY 7.6% ITALY 8.6% IRELAND 11.0% SPAIN 11.4% TOTAL NUMBER OF HOLDINGS* 91 TOTAL NET ASSETS $429.9 MILLION ================================================================================ ================================================================================ AVERAGE ANNUAL TOTAL RETURNS As of 4/30/03, including sales charges CLASS A SHARES Inception (11/3/97) 8.26% 5 Years 2.49 1 Year -14.23 CLASS B SHARES Inception (11/3/97) 8.49% 5 Years 2.59 1 Year -14.31 CLASS C SHARES Inception (11/3/97) 8.62% 5 Years 2.95 1 Year -10.80 CLASS R SHARES** 5 Years 3.50% 1 Year -9.40 **Class R shares are generally only available to retirement plans such as section 401 and 457 plans, section 403 plans sponsored by a section 501(c)(3) organization and IRA rollovers from such plans if an AIM fund was offered. They are sold at net asset value, that is, without up-front sales charges. Class R shares were first offered on June 3, 2002. Returns prior to that date are hypothetical results based on Class A share performance (inception date 10/3/97) at net asset value, adjusted to reflect Class R 12b-1 fees. Class R share returns do not include a 0.75% contingent deferred sales charge that may be imposed on a total redemption of retirement plan assets within the first year. ================================================================================ ================================================================================ FUND VS. INDEXES Total Returns 10/31/02-4/30/03 excluding sales charges CLASS A SHARES 4.74% CLASS B SHARES 4.38 CLASS C SHARES 4.31 CLASS R SHARES 4.62 MSCI EUROPE INDEX (Broad Market Index and Style Specific Index) 4.17 LIPPER EUROPEAN FUND INDEX (Peer Group Index) 3.17 Source: Lipper, Inc. In addition to returns as of the close of the reporting period, industry regulations require us to provide average annual total returns (including sales charges) as of 3/31/03, the most recent calendar quarter-end, which were: Class A shares, inception (11/3/97), 6.82%; five years, 2.09%; one year, -19.42%. Class B shares, inception (11/3/97), 7.06%; five years, 2.17%; one year, - -19.54%. Class C shares, inception (11/3/97), 7.21%; five years, 2.54%; one year, -16.14%. Class R shares, five years, 3.09%; one year, -14.87%. Past performance cannot guarantee comparable future results. DUE TO SIGNIFICANT MARKET VOLATILITY, RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN. CALL YOUR FINANCIAL ADVISOR FOR MORE CURRENT PERFORMANCE. ================================================================================
====================================================================================================== TOP 10 Equity Holdings* TOP 10 INDUSTRIES* - ------------------------------------------------------------------------------------------------------ 1. Anglo Irish Bank Corp. PLC (Ireland) 3.5% 1. Banks 12.6% 2. Puma A.G. Rudolf Dassler Sport (Germany) 2.7 2. Pharmaceuticals 7.7 3. Grupo Ferrovial, S.A. (Spain) 2.5 3. Wireless Telecommunication Services 4.5 4. Merloni Elettrodomestici S.p.A. (Italy) 2.2 4. Integrated Oil & Gas 4.3 5. Willis Group Holdings Ltd. (Bermuda) 2.1 5. Construction & Engineering 4.3 6. Eni S.p.A. (Italy) 2.0 6. Tobacco 3.8 7. Total S.A. (France) 1.9 7. Diversified Financial Services 3.7 8. Grafton Group PLC-Units (Ireland) 1.8 8. Food Retail 3.6 9. Imperial Tobacco Group PLC (United Kingdom) 1.7 9. Household Appliances 3.3 10. Banco Popular Espanol S.A. (Spain) 1.6 10. Insurance Brokers 3.3 *Excludes money market fund holdings. The fund's holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security. ======================================================================================================
ABOUT FUND INFORMATION THROUGHOUT THIS REPORT: o Unless otherwise stated, information presented here is as of 4/30/03 and is based on total net assets. o Effective July 1, 2002, AIM European Development Fund was renamed AIM European Growth Fund. o AIM European Growth Fund's performance figures are historical, and they reflect fund expenses, the reinvestment of distributions and changes in net asset value. o When sales charges are included in performance figures, Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C 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 CDSC on Class C shares is 1% for the first year after purchase. The performance of the fund's share classes will differ due to different sales charge structures and class expenses. o International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values 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. o Investing in a single-region mutual fund may involve greater risk and potential reward than investing in a more diversified fund. o The fund may participate in the initial public offering (IPO) market in some market cycles. Because of the fund's small asset base, any investment the fund may make in IPOs may significantly affect the fund's total return. As the fund's assets grow, the impact of IPO investments will decline, which may reduce the effect of IPO investments on the fund's total return. o The fund's investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than their original cost. o In the Schedule of Investments in this report, the fund's portfolio holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o The unmanaged MSCI Europe Index is a group of European securities tracked by Morgan Stanley Capital International. o The unmanaged Lipper European Fund Index represents an average of the 30 largest European funds tracked by Lipper, Inc., an independent mutual fund performance monitor. o A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not include sales charges. Performance of an index of funds reflects fund expenses. Performance of a market index does not. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, aiminvestments.com. FOR MORE INFORMATION, PLEASE VISIT aiminvestments.com. TO OUR SHAREHOLDERS ================================================================================ IN EUROPEAN MONETARY AFFAIRS, THE EUROPEAN CENTRAL BANK (ECB) CUT ITS BENCHMARK INTEREST RATE 25 BASIS POINTS TO 2.50% IN MARCH. ROBERT H. GRAHAM ================================================================================ DEAR SHAREHOLDER: [PHOTO OF This is the report on AIM European Growth Fund for the six ROBERT H. months ended April 30, 2003. You will note that we have GRAHAM] adopted a more concise format for our semiannual reports. Important information such as top holdings and performance as of the close of the reporting period appear on the opposite page. This letter will provide an overview of the markets and your fund during the six months covered by this report. As always, timely information about your fund and the markets in general is available at our Web site, aiminvestments.com. MARKET CONDITIONS International markets, as measured by the unmanaged MSCI Europe, Australasia and the Far East Index (the EAFE--Registered Trademark--), a group of foreign securities tracked by Morgan Stanley Capital International, produced negative returns for the first quarter of 2003. International markets, however, rallied in April. This rally helped push international market returns into positive territory for the six-month reporting period. European markets rallied toward the close of the reporting period, with the MSCI (Morgan Stanley Capital International) Europe Index, often considered representative of the European equity market, gaining 13.49% in April. In European monetary affairs, the European Central Bank (ECB) cut its benchmark interest rate 25 basis points to 2.50% in March. It remained at that level as the reporting period closed. As widely discussed, in Asia, the epidemic of severe acute respiratory syndrome (SARS) dealt a blow to local economies. However, the MSCI All Country (AC) Asia Pacific Free ex-Japan Index, a group of developed and emerging Asian and Asia-Pacific markets (except Japan) covered by Morgan Stanley Capital International, rallied in April and was positive for the six-month reporting period. On the currency front, the U.S. dollar was weak compared to many foreign currencies. In particular, the euro showed strength as it appreciated nearly 13% against the dollar during the reporting period. Other notable currencies that gained ground on the dollar included the Australian dollar, Swiss franc, British pound and Canadian dollar. YOUR FUND Like the MSCI Europe Index, AIM European Growth Fund Class A shares, at net asset value, posted positive returns for the six months ended April 30, 2003. Throughout the reporting period, fund managers Jason T. Holzer and Clas G. Olsson sought to identify companies that, in their view, have the potential for above-average long-term growth in earnings and prospects for future growth. As of April 30, 2003, the fund had its largest exposure in the financials, consumer discretionary and consumer staples sectors. Over the course of the reporting period, the fund's exposure to consumer staples and telecommunications services increased, while its weighting in consumer discretionary, energy and industrials decreased. IN CLOSING I thank you for your continued participation in AIM European Growth Fund, and I look forward to reporting to you again in six months. If you have any questions, please consult your financial advisor to help you with your investment choices. As always, members of our award-winning Client Services department are ready to help. They can be reached at 800-959-4246. Sincerely, /s/ ROBERT H. GRAHAM Robert H. Graham Chairman April 30, 2003 FINANCIALS SCHEDULE OF INVESTMENTS April 30, 2003 (Unaudited)
MARKET SHARES VALUE - ------------------------------------------------------------------------ FOREIGN STOCKS & OTHER EQUITY INTERESTS-90.34% BELGIUM-2.84% Colruyt N.V. (Food Retail) 86,400 $ 5,656,155 - ------------------------------------------------------------------------ Mobistar S.A. (Wireless Telecommunication Services)(a) 201,334 6,573,257 ======================================================================== 12,229,412 ======================================================================== BERMUDA-2.05% Willis Group Holdings Ltd. (Insurance Brokers) 282,600 8,814,294 ======================================================================== CZECH REPUBLIC-0.78% Komercni Banka A.S. (Banks) 47,870 3,343,031 ======================================================================== DENMARK-0.52% Novo Nordisk A.S.-Class B (Pharmaceuticals) 61,600 2,233,933 ======================================================================== FRANCE-6.74% Autoroutes du Sud de la France (Highways & Railtracks)(a) 90,000 2,465,410 - ------------------------------------------------------------------------ Aventis S.A. (Pharmaceuticals) 48,533 2,469,589 - ------------------------------------------------------------------------ CNP Assurances (Life & Health Insurance) 28,400 1,143,780 - ------------------------------------------------------------------------ Pernod-Ricard S.A. (Distillers & Vintners) 46,425 4,082,548 - ------------------------------------------------------------------------ PSA Peugeot Citroen (Automobile Manufacturers) 42,905 2,011,949 - ------------------------------------------------------------------------ Sanofi-Synthelabo S.A. (Pharmaceuticals) 75,250 4,497,124 - ------------------------------------------------------------------------ Total S.A. (Integrated Oil & Gas) 61,369 8,062,460 - ------------------------------------------------------------------------ Vinci S.A. (Construction & Engineering) 65,000 4,240,674 ======================================================================== 28,973,534 ======================================================================== GERMANY-7.59% Adidas-Salomon A.G. (Apparel, Accessories & Luxury Goods) 42,875 3,696,061 - ------------------------------------------------------------------------ Altana A.G. (Pharmaceuticals) 87,400 4,311,492 - ------------------------------------------------------------------------ Continental A.G. (Tires & Rubber) 126,940 2,275,164 - ------------------------------------------------------------------------ Deutsche Boerse A.G. (Diversified Financial Services) 122,000 5,729,144 - ------------------------------------------------------------------------ Porsche A.G.-Pfd. (Automobile Manufacturers) 5,730 2,114,215 - ------------------------------------------------------------------------ Puma A.G. Rudolf Dassler Sport (Footwear) 119,000 11,447,957 - ------------------------------------------------------------------------ Stada Arzneimittel A.G. (Pharmaceuticals) 58,400 3,062,431 ======================================================================== 32,636,464 ========================================================================
MARKET SHARES VALUE - ------------------------------------------------------------------------ GREECE-1.90% Coca-Cola Hellenic Bottling Co. S.A. (Soft Drinks) 74,000 1,083,886 - ------------------------------------------------------------------------ Cosmote Mobile Communications S.A. (Wireless Telecommunication Services) 184,700 $ 1,916,442 - ------------------------------------------------------------------------ Vodafone Panafon S.A. (Wireless Telecommunication Services) 812,700 5,161,302 ======================================================================== 8,161,630 ======================================================================== HUNGARY-2.16% Gedeon Richter Rt. (Pharmaceuticals)(a) 62,600 4,544,465 - ------------------------------------------------------------------------ OTP Bank Rt. (Banks) 439,900 4,720,343 ======================================================================== 9,264,808 ======================================================================== IRELAND-11.04% Anglo Irish Bank Corp. PLC (Banks) 2,008,250 15,134,160 - ------------------------------------------------------------------------ Bank of Ireland (Banks) 425,300 5,207,031 - ------------------------------------------------------------------------ DCC PLC (Industrial Conglomerates) 333,000 4,132,833 - ------------------------------------------------------------------------ Fyffes PLC (Food Distributors) 2,377,100 3,694,391 - ------------------------------------------------------------------------ Grafton Group PLC-Units (Trading Companies & Distributors)(b) 1,975,680 7,775,707 - ------------------------------------------------------------------------ IAWS Group PLC (Agricultural Products) 431,600 3,498,647 - ------------------------------------------------------------------------ Jurys Doyle Hotel Group PLC (Hotels, Resorts & Cruise Lines) 182,500 1,444,697 - ------------------------------------------------------------------------ Kerry Group PLC-Class A (Packaged Foods & Meats) 85,000 1,259,260 - ------------------------------------------------------------------------ Ryanair Holdings PLC-ADR (Airlines)(a) 134,100 5,319,747 ======================================================================== 47,466,473 ======================================================================== ISRAEL-0.85% Taro Pharmaceutical Industries Ltd. (Pharmaceuticals)(a) 54,000 2,471,040 - ------------------------------------------------------------------------ Teva Pharmaceutical Industries Ltd.-ADR (Pharmaceuticals) 25,000 1,167,500 ======================================================================== 3,638,540 ======================================================================== ITALY-8.57% Banco Popolare di Verona e Novara Scrl (Banks) 420,000 5,715,056 - ------------------------------------------------------------------------ Davide Campari-Milano S.p.A. (Distillers & Vintners)(a) 131,300 4,536,322 - ------------------------------------------------------------------------ Eni S.p.A. (Integrated Oil & Gas) 593,214 8,469,991 - ------------------------------------------------------------------------ Merloni Elettrodomestici S.p.A. (Household Appliances) 779,600 9,501,211 - ------------------------------------------------------------------------
F-1
MARKET SHARES VALUE - ------------------------------------------------------------------------ ITALY-(CONTINUED) Saeco International Group S.p.A. (Household Appliances)(a) 1,228,400 $ 4,711,016 - ------------------------------------------------------------------------ UniCredito Italiano S.p.A. (Banks) 888,900 3,896,006 ======================================================================== 36,829,602 ======================================================================== NETHERLANDS-1.38% Koninklijke (Royal) KPN N.V. (Integrated Telecommunications Services)(a) 687,000 4,578,083 - ------------------------------------------------------------------------ Sligro Food Group N.V. (Food Distributors) 28,900 1,337,762 ======================================================================== 5,915,845 ======================================================================== NORWAY-0.97% Ekornes A.S.A. (Home Furnishings) 310,400 4,169,658 ======================================================================== PORTUGAL-0.41% Portugal Telecom, SGPS, S.A. (Integrated Telecommunications Services) 247,700 1,775,271 ======================================================================== RUSSIA-1.11% AO VimpelCom-ADR (Wireless Telecommunication Services)(a) 120,200 4,791,172 ======================================================================== SPAIN-11.39% Altadis, S.A. (Tobacco) 214,300 5,534,964 - ------------------------------------------------------------------------ Amadeus Global Travel Distribution S.A.-Class A (Data Processing Services) 631,950 3,165,493 - ------------------------------------------------------------------------ Banco Popular Espanol S.A. (Banks) 144,600 7,023,260 - ------------------------------------------------------------------------ Compania de Distribucion Integral Logista, S.A. (Publishing) 131,900 2,949,548 - ------------------------------------------------------------------------ Corporacion Mapfre S.A. (Multi-Line Insurance) 648,000 6,086,042 - ------------------------------------------------------------------------ Enagas (Gas Utilities) (Acquired 06/25/02-04/23/03; Cost $2,316,349)(c) 358,400 2,600,718 - ------------------------------------------------------------------------ Gamesa Corporacion Tecnologica, S.A. (Electric Utilities)(a) 170,000 3,491,714 - ------------------------------------------------------------------------ Grupo Dragados, S.A. (Construction & Engineering) 170,230 3,258,521 - ------------------------------------------------------------------------ Grupo Ferrovial, S.A. (Construction & Engineering) 407,900 10,845,416 - ------------------------------------------------------------------------ NH Hoteles, S.A. (Hotels, Resorts & Cruise Lines) 224,000 2,016,158 - ------------------------------------------------------------------------ Repsol YPF, S.A. (Integrated Oil & Gas) 136,500 1,991,699 ======================================================================== 48,963,533 ======================================================================== SWEDEN-1.98% Axfood A.B. (Food Retail) 116,100 2,178,744 - ------------------------------------------------------------------------ Elekta A.B.-Class B (Health Care Equipment)(a) 248,100 2,708,316 - ------------------------------------------------------------------------ Swedish Match A.B. (Tobacco) 488,350 3,623,841 ======================================================================== 8,510,901 ========================================================================
MARKET SHARES VALUE - ------------------------------------------------------------------------ SWITZERLAND-2.49% Actelion Ltd. (Biotechnology)(a) 35,000 $ 2,244,683 - ------------------------------------------------------------------------ Centerpulse A.G. (Health Care Equipment)(a) 22,800 4,992,025 - ------------------------------------------------------------------------ Synthes-Stratec, Inc. (Health Care Equipment)(a) 2,023 1,277,260 - ------------------------------------------------------------------------ UBS A.G. (Banks) 46,400 2,204,874 ======================================================================== 10,718,842 ======================================================================== UNITED KINGDOM-25.57% Barratt Developments PLC (Homebuilding) 273,000 1,825,653 - ------------------------------------------------------------------------ Bunzl PLC (Diversified Commercial Services) 187,100 1,348,490 - ------------------------------------------------------------------------ Cattles PLC (Consumer Finance) 1,158,900 5,895,930 - ------------------------------------------------------------------------ Centrica PLC (Gas Utilities) 2,202,200 5,857,303 - ------------------------------------------------------------------------ Cranswick PLC (Packaged Foods & Meats) 138,000 996,818 - ------------------------------------------------------------------------ Enterprise Inns PLC (Restaurants) 627,450 6,153,453 - ------------------------------------------------------------------------ Galen Holdings PLC (Pharmaceuticals) 646,120 4,512,699 - ------------------------------------------------------------------------ ICAP PLC (Diversified Financial Services) 331,200 5,152,915 - ------------------------------------------------------------------------ Imperial Tobacco Group PLC (Tobacco) 432,030 7,236,688 - ------------------------------------------------------------------------ Jardine Lloyd Thompson Group PLC (Insurance Brokers) 567,700 5,179,527 - ------------------------------------------------------------------------ Johnston Press PLC (Publishing) 813,100 4,884,647 - ------------------------------------------------------------------------ Man Group PLC (Diversified Financial Services) 286,300 4,832,291 - ------------------------------------------------------------------------ New Look Group PLC (Apparel Retail) 287,125 1,125,985 - ------------------------------------------------------------------------ Next PLC (Department Stores) 237,300 3,581,945 - ------------------------------------------------------------------------ Northern Rock PLC (Banks) 105,500 1,207,651 - ------------------------------------------------------------------------ Reckitt Benckiser PLC (Household Products) 289,165 5,105,019 - ------------------------------------------------------------------------ Rentokil Initial PLC (Diversified Commercial Services) 708,700 2,120,232 - ------------------------------------------------------------------------ Royal Bank of Scotland Group PLC (Banks) 215,000 5,644,511 - ------------------------------------------------------------------------ Shire Pharmaceuticals Group PLC (Pharmaceuticals)(a) 573,000 3,685,190 - ------------------------------------------------------------------------ Smith & Nephew PLC (Health Care Supplies) 790,150 5,274,547 - ------------------------------------------------------------------------ Tesco PLC (Food Retail) 1,307,100 4,140,505 - ------------------------------------------------------------------------ Travis Perkins PLC (Home Improvement Retail) 297,750 5,335,180 - ------------------------------------------------------------------------ Ultra Electronics Holdings PLC (Aerospace & Defense) 530,100 3,879,544 - ------------------------------------------------------------------------ Unilever PLC (Packaged Foods & Meats) 567,600 5,584,660 - ------------------------------------------------------------------------ Vodafone Group PLC (Wireless Telecommunication Services) 3,001,300 5,930,013 - ------------------------------------------------------------------------ William Morrison Supermarkets PLC (Food Retail) 1,145,550 3,418,001 ======================================================================== 109,909,397 ======================================================================== Total Foreign Stocks & Other Equity Interests (Cost $322,177,552) 388,346,340 ========================================================================
F-2
MARKET SHARES VALUE - ------------------------------------------------------------------------ MONEY MARKET FUNDS-12.42% STIC Liquid Assets Portfolio(d) 26,706,013 $ 26,706,013 - ------------------------------------------------------------------------ STIC Prime Portfolio(d) 26,706,013 26,706,013 ======================================================================== Total Money Market Funds (Cost $53,412,026) 53,412,026 ======================================================================== TOTAL INVESTMENTS-102.76% (excluding investments purchased with cash collateral from securities loaned) (Cost $375,589,578) 441,758,366 ========================================================================
MARKET SHARES VALUE - ------------------------------------------------------------------------ INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS-12.96% STIC Liquid Assets Portfolio(d)(e) 55,715,550 $ 55,715,550 ======================================================================== Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $55,715,550) 55,715,550 ======================================================================== TOTAL INVESTMENTS-115.72% (Cost $431,305,128) 497,473,916 ======================================================================== OTHER ASSETS LESS LIABILITIES-(15.72%) (67,585,462) ======================================================================== NET ASSETS-100.00% $429,888,454 ________________________________________________________________________ ========================================================================
Investment Abbreviations: ADR - American Depositary Receipt Pfd. - Preferred
Notes to Schedule of Investments: (a) Non-income producing security. (b) Consists of more than one class of securities traded together as a unit. (c) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction); the security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The market value of this security at 04/30/03 represented 0.60% of the Fund's net assets. This security is not considered to be illiquid. (d) The money market fund and the Fund are affiliated by having the same investment advisor. (e) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Notes to Financial Statements. F-3 STATEMENT OF ASSETS AND LIABILITIES April 30, 2003 (Unaudited) ASSETS: Investments, at market value (cost $431,305,128)* $497,473,916 - ------------------------------------------------------------ Foreign currencies, at value (cost $1,829,695) 1,856,341 - ------------------------------------------------------------ Receivables for: Investments sold 1,278,179 - ------------------------------------------------------------ Capital stock sold 5,431,698 - ------------------------------------------------------------ Dividends and interest 1,499,444 - ------------------------------------------------------------ Investment for deferred compensation plan 27,037 - ------------------------------------------------------------ Other assets 35,288 ============================================================ Total assets 507,601,903 ____________________________________________________________ ============================================================ LIABILITIES: Payables for: Investments purchased 9,520,830 - ------------------------------------------------------------ Capital stock reacquired 11,810,857 - ------------------------------------------------------------ Deferred compensation plan 27,037 - ------------------------------------------------------------ Collateral upon return of securities loaned 55,715,550 - ------------------------------------------------------------ Accrued distribution fees 291,263 - ------------------------------------------------------------ Accrued directors' fees 958 - ------------------------------------------------------------ Accrued transfer agent fees 275,243 - ------------------------------------------------------------ Accrued operating expenses 71,711 ============================================================ Total liabilities 77,713,449 ============================================================ Net assets applicable to shares outstanding $429,888,454 ____________________________________________________________ ============================================================ NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $544,546,979 - ------------------------------------------------------------ Undistributed net investment income (loss) (1,536,608) - ------------------------------------------------------------ Undistributed net realized gain (loss) from investment securities and foreign currencies (179,286,079) - ------------------------------------------------------------ Unrealized appreciation of investment securities and foreign currencies 66,164,162 ============================================================ $429,888,454 ____________________________________________________________ ============================================================ NET ASSETS: Class A $308,218,392 ____________________________________________________________ ============================================================ Class B $ 93,247,529 ____________________________________________________________ ============================================================ Class C $ 28,019,839 ____________________________________________________________ ============================================================ Class R $ 402,694 ____________________________________________________________ ============================================================ CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 18,865,083 ____________________________________________________________ ============================================================ Class B: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 5,923,963 ____________________________________________________________ ============================================================ Class C: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 1,779,381 ____________________________________________________________ ============================================================ Class R: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 24,686 ____________________________________________________________ ============================================================ Class A: Net asset value per share $ 16.34 - ------------------------------------------------------------ Offering price per share: (Net asset value of $16.34 divided by 94.50%) $ 17.29 ____________________________________________________________ ============================================================ Class B: Net asset value and offering price per share $ 15.74 ____________________________________________________________ ============================================================ Class C: Net asset value and offering price per share $ 15.75 ____________________________________________________________ ============================================================ Class R: Net asset value and offering price per share $ 16.31 ____________________________________________________________ ============================================================
* At April 30, 2003, securities with an aggregate market value of $53,007,304 were on loan to brokers. See Notes to Financial Statements. F-4 STATEMENT OF OPERATIONS For the six months ended April 30, 2003 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding tax of $309,119) $ 2,663,324 - -------------------------------------------------------------------------- Dividends from affiliated money market funds 155,712 - -------------------------------------------------------------------------- Security lending income 55,861 ========================================================================== Total investment income 2,874,897 ========================================================================== EXPENSES: Advisory fees 1,841,124 - -------------------------------------------------------------------------- Administrative services fees 57,431 - -------------------------------------------------------------------------- Custodian fees 223,796 - -------------------------------------------------------------------------- Distribution fees -- Class A 472,671 - -------------------------------------------------------------------------- Distribution fees -- Class B 457,360 - -------------------------------------------------------------------------- Distribution fees -- Class C 129,660 - -------------------------------------------------------------------------- Distribution fees -- Class R 258 - -------------------------------------------------------------------------- Transfer agent fees 1,036,159 - -------------------------------------------------------------------------- Directors' fees 4,924 - -------------------------------------------------------------------------- Other 156,239 ========================================================================== Total expenses 4,379,622 ========================================================================== Less: Fees waived and expenses paid indirectly (4,965) ========================================================================== Net expenses 4,374,657 ========================================================================== Net investment income (loss) (1,499,760) ========================================================================== REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND FOREIGN CURRENCIES: Net realized gain (loss) from: Investment securities (15,514,074) - -------------------------------------------------------------------------- Foreign currencies 528,488 ========================================================================== (14,985,586) ========================================================================== Change in net unrealized appreciation (depreciation) of: Investment securities 36,531,351 - -------------------------------------------------------------------------- Foreign currencies (59,265) ========================================================================== 36,472,086 ========================================================================== Net gain from investment securities and foreign currencies 21,486,500 ========================================================================== Net increase in net assets resulting from operations $ 19,986,740 __________________________________________________________________________ ==========================================================================
See Notes to Financial Statements. F-5 STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2003 and the year ended October 31, 2002 (Unaudited)
APRIL 30, OCTOBER 31, 2003 2002 - -------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ (1,499,760) $ (2,138,702) - -------------------------------------------------------------------------------------------- Net realized gain (loss) from investment securities and foreign currencies (14,985,586) (58,034,155) - -------------------------------------------------------------------------------------------- Change in net unrealized appreciation of investment securities and foreign currencies 36,472,086 53,982,841 ============================================================================================ Net increase (decrease) in net assets resulting from operations 19,986,740 (6,190,016) ============================================================================================ Share transactions-net: Class A 9,349,681 125,417,383 - -------------------------------------------------------------------------------------------- Class B (7,896,786) (2,223,760) - -------------------------------------------------------------------------------------------- Class C (513,781) (4,011,667) - -------------------------------------------------------------------------------------------- Class R 375,042 16,969 ============================================================================================ Net increase in net assets resulting from share transactions 1,314,156 119,198,925 ============================================================================================ Net increase in net assets 21,300,896 113,008,909 ============================================================================================ NET ASSETS: Beginning of period 408,587,558 295,578,649 ============================================================================================ End of period $ 429,888,454 $ 408,587,558 ____________________________________________________________________________________________ ============================================================================================
NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM European Growth 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 series management investment company consisting of six separate portfolios. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be 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 long-term growth of capital. Companies are listed in the Schedule of Investments based on the country in which they are organized. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued at the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors of the Company. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, F-6 futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Occasionally, events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not be reflected in the computation of the Fund's net asset value. If a development/event is so significant that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Directors. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes. D. 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 gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. E. FOREIGN CURRENCY TRANSLATIONS -- Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. 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. G. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses are charged to each class pursuant to a transfer agency and service agreement adopted by the Fund with respect to such class. All other expenses are allocated among the classes based on relative net assets. 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 investment advisory agreement, the Fund pays an advisory fee to AIM 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. AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds in which the Fund has invested (excluding investments made in affiliated money market funds with cash collateral from securities loaned by the Fund). For the six months ended April 30, 2003, AIM waived fees of $2,085. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2003, AIM was paid $57,431 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and shareholder services to the Fund. During the six months ended April 30, 2003, AFS retained $556,842 for such services. The Trust has entered into master distribution agreements with A I M Distributors, Inc. ("AIM Distributors") to serve as the distributor for the Class A, Class B, Class C and Class R shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares, Class B shares, Class C shares and Class R shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays AIM Distributors compensation at the annual rate of 0.35% of the Fund's average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. Of these amounts, the Fund may pay a service fee of 0.25% of the average daily net assets of the Class A, Class B, Class C or Class R shares to selected dealers and financial institutions who furnish continuing personal shareholder services to their customers who purchase and own the appropriate class of shares of the Fund. Any amounts not paid as a service fee under the Plans would constitute an F-7 asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the six months ended April 30, 2003, the Class A, Class B, Class C and Class R shares paid $472,671, $457,360, $129,660 and $258, respectively. Front-end sales commissions and contingent deferred sales charges (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. Contingent deferred sales charges ("CDSCs") are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2003, AIM Distributors retained $26,311 in front-end sales commissions from the sale of Class A shares and $93,666, $52 and $1,868 for Class A, Class B and Class C shares, respectively, for CDSCs imposed upon redemptions by shareholders. Certain officers and trustees of the Trust are officers and directors of AIM, AFS and/or AIM Distributors. During the six months ended April 30, 2003, the Fund paid legal fees of $1,579 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Board of Trustees. A member of that firm is a director of the Company. NOTE 3--INDIRECT EXPENSES For the six months ended April 30, 2003, the Fund received reductions in transfer agency fees from AFS (an affiliate of AIM) of $2,880 under an expense offset arrangement which resulted in a reduction of the Fund's total expenses of $2,880. NOTE 4--DIRECTORS' FEES Directors' fees represent remuneration paid to each director who is not an "interested person" of AIM. Directors have the option to defer compensation payable by the Company. The Directors deferring compensation have the option to select various AIM Funds in which all or part of their deferral accounts shall be deemed to be invested. NOTE 5--BORROWINGS AIM has established an interfund lending facility for temporary borrowings by the AIM Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. During the reporting period, the Fund was a participant in a committed line of credit facility with a syndicate administered by Citibank, N.A. The Fund could borrow up to the lesser of (i) $500,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which were parties to the line of credit could borrow on a first come, first served basis. The funds which were party to the line of credit were charged a commitment fee of 0.09% on the unused balance of the committed line. The commitment fee was allocated among the funds based on their respective average net assets for the period. The committed line of credit facility expired May 20, 2003. During the six months ended April 30, 2003, the Fund did not borrow under the interfund lending or the committed line of credit facility. NOTE 6--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities to the extent of one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value, determined daily, of the loaned securities. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral pursuant to these loans is invested in short-term money market instruments or affiliated money market funds. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day. Therefore, the value of the collateral may be temporarily less than the value of the securities on loan. At April 30, 2003, securities with an aggregate value of $53,007,304 were on loan to brokers. The loans were secured by cash collateral of $55,715,550 received by the Fund and subsequently invested in an affiliated money market fund. For the six months ended April 30, 2003, the Fund received fees of $55,861 for securities lending. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of distributable earnings will be updated at the Fund's fiscal year-end. The Fund has a capital loss carryforward for tax purposes which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD - ---------------------------------------------------------- October 31, 2007 $ 1,620,590 - ---------------------------------------------------------- October 31, 2009 102,524,677 - ---------------------------------------------------------- October 31, 2010 58,633,126 ========================================================== Total capital loss carryforward $162,778,393 __________________________________________________________ ==========================================================
NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended April 30, 2003 was $154,786,463 and $164,905,464, respectively. The amount of unrealized appreciation (depreciation) of investment securities, for tax purposes, as of April 30, 2003 is as follows: Aggregate unrealized appreciation of investment securities $67,853,103 - ----------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (2,263,697) =========================================================== Net unrealized appreciation of investment securities $65,589,406 ___________________________________________________________ =========================================================== Cost of investments for tax purposes is $431,884,510.
F-8 NOTE 9--CAPITAL STOCK The Fund currently offers four different classes of shares: Class A shares, Class B shares, Class C shares and Class R shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with a CDSC. Class R shares are sold at net asset value. Under some circumstances, Class A shares and Class R shares are subject to CDSCs. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Changes in capital stock outstanding during the six months ended April 30, 2003 and the year ended October 31, 2002 were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ---------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Sold: Class A 43,111,136 $ 661,526,325 37,092,178 $ 609,947,178 - -------------------------------------------------------------------------------------------------------------------------- Class B 404,665 6,003,606 889,627 14,708,041 - -------------------------------------------------------------------------------------------------------------------------- Class C 2,561,643 38,084,908 2,584,399 41,058,289 - -------------------------------------------------------------------------------------------------------------------------- Class R* 230,171 3,511,338 992 17,020 ========================================================================================================================== Issued in connection with acquisitions:** Class A -- -- 9,495,949 145,720,423 - -------------------------------------------------------------------------------------------------------------------------- Class B -- -- 867,993 12,890,199 - -------------------------------------------------------------------------------------------------------------------------- Class C -- -- 104,957 1,559,763 ========================================================================================================================== Conversion of Class B shares to Class A shares: Class A 102,356 1,577,918 130,942 2,186,186 - -------------------------------------------------------------------------------------------------------------------------- Class B (106,058) (1,577,918) (137,878) (2,186,186) ========================================================================================================================== Reacquired: Class A (42,542,762) (653,754,562) (38,067,728) (632,436,404) - -------------------------------------------------------------------------------------------------------------------------- Class B (837,275) (12,322,474) (1,710,546) (27,635,814) - -------------------------------------------------------------------------------------------------------------------------- Class C (2,593,205) (38,598,689) (2,905,211) (46,629,719) - -------------------------------------------------------------------------------------------------------------------------- Class R* (206,474) (3,136,296) (3) (51) ========================================================================================================================== 124,197 $ 1,314,156 8,345,671 $ 119,198,925 __________________________________________________________________________________________________________________________ ==========================================================================================================================
* Class R shares commenced sales on June 3, 2002. ** As of the close of business on September 20, 2002, the Fund acquired all the net assets of AIM Euroland Growth Fund pursuant to a plan of reorganization approved by AIM Euroland Growth Fund shareholders on September 4, 2002. The acquisition was accomplished by a tax-free exchange of 10,468,899 shares of the Fund for 22,408,695 shares of AIM Euroland Growth Fund outstanding as of the close of business on September 20, 2002. AIM Euroland Growth Fund's net assets at that date of $160,170,385 including ($26,495,326) of unrealized appreciation (depreciation), were combined with those of the Fund. The aggregate net assets of the Fund immediately before the acquisition were $244,433,808. NOTE 10--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
CLASS A ----------------------------------------------------------------------------------------- NOVEMBER 3, 1997 SIX MONTHS (DATE SALES ENDED YEAR ENDED OCTOBER 31, COMMENCED) TO APRIL 30, ---------------------------------------------------- OCTOBER 31, 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 15.60 $ 16.52 $ 23.59 $ 16.42 $ 12.96 $ 10.00 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.04)(a) (0.07)(a) (0.06)(a) (0.21)(a) (0.11) (0.08)(a) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.78 (0.85) (7.01) 7.38 3.58 3.04 ================================================================================================================================= Total from investment operations 0.74 (0.92) (7.07) 7.17 3.47 2.96 ================================================================================================================================= Less dividends from net investment income -- -- -- -- (0.01) -- ================================================================================================================================= Net asset value, end of period $ 16.34 $ 15.60 $ 16.52 $ 23.59 $ 16.42 $ 12.96 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) 4.74% (5.57)% (29.97)% 43.67% 26.81% 29.60% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $308,218 $283,812 $157,651 $273,605 $99,148 $76,686 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets 2.06%(c) 1.93% 1.83% 1.69% 1.88% 1.98%(d)(e) ================================================================================================================================= Ratio of net investment income (loss) to average net assets (0.58)%(c) (0.42)% (0.32)% (0.82)% (0.69)% (0.58)%(e) _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(f) 42% 94% 99% 112% 122% 93% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $272,336,302. (d) Ratio of expenses to average net assets prior to fee waivers and/or expense reimbursements was 2.15%. (e) Annualized. (f) Not annualized for periods less than one year. F-9 NOTE 10--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS B ---------------------------------------------------------------------------------------- NOVEMBER 3, 1997 SIX MONTHS (DATE SALES ENDED YEAR ENDED OCTOBER 31, COMMENCED) TO APRIL 30, --------------------------------------------------- OCTOBER 31, 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 15.08 $ 16.07 $ 23.11 $ 16.20 $ 12.87 $ 10.00 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.09)(a) (0.18)(a) (0.19)(a) (0.38)(a) (0.22) (0.18)(a) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.75 (0.81) (6.85) 7.29 3.55 3.05 ================================================================================================================================= Total from investment operations 0.66 (0.99) (7.04) 6.91 3.33 2.87 ================================================================================================================================= Net asset value, end of period $ 15.74 $ 15.08 $ 16.07 $ 23.11 $ 16.20 $ 12.87 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) 4.38% (6.16)% (30.46)% 42.65% 25.87% 28.70% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $93,248 $97,436 $105,324 $169,614 $67,074 $50,121 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets 2.71%(c) 2.58% 2.50% 2.39% 2.63% 2.72%(d)(e) ================================================================================================================================= Ratio of net investment income (loss) to average net assets (1.23)%(c) (1.07)% (0.98)% (1.52)% (1.44)% (1.32)%(e) _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(f) 42% 94% 99% 112% 122% 93% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $92,229,998. (d) Ratio of expenses to average net assets prior to fee waivers and/or expense reimbursements was 2.89%. (e) Annualized. (f) Not annualized for periods less than one year.
CLASS C -------------------------------------------------------------------------------------- NOVEMBER 3, 1997 SIX MONTHS (DATE SALES ENDED YEAR ENDED OCTOBER 31, COMMENCED) TO APRIL 30, ------------------------------------------------- OCTOBER 31, 2003 2002 2001 2000 1999 1998 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 15.09 $ 16.09 $ 23.13 $ 16.21 $ 12.88 $ 10.00 - -------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.09)(a) (0.18)(a) (0.19)(a) (0.38)(a) (0.23) (0.18)(a) - -------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.75 (0.82) (6.85) 7.30 3.56 3.06 ================================================================================================================================ Total from investment operations 0.66 (1.00) (7.04) 6.92 3.33 2.88 ================================================================================================================================ Net asset value, end of period $ 15.75 $ 15.09 $ 16.09 $ 23.13 $ 16.21 $ 12.88 ________________________________________________________________________________________________________________________________ ================================================================================================================================ Total return(b) 4.37% (6.22)% (30.44)% 42.69% 25.85% 28.80% ________________________________________________________________________________________________________________________________ ================================================================================================================================ Ratios/supplemental data: Net assets, end of period (000s omitted) $28,020 $27,323 $32,604 $54,164 $11,938 $ 9,639 ________________________________________________________________________________________________________________________________ ================================================================================================================================ Ratio of expenses to average net assets 2.71%(c) 2.58% 2.50% 2.39% 2.63% 2.72%(d)(e) ================================================================================================================================ Ratio of net investment income (loss) to average net assets (1.23)%(c) (1.07)% (0.98)% (1.52)% (1.44)% (1.32)%(e) ________________________________________________________________________________________________________________________________ ================================================================================================================================ Portfolio turnover rate(f) 42% 94% 99% 112% 122% 93% ________________________________________________________________________________________________________________________________ ================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $26,146,815. (d) Ratio of expenses to average net assets prior to fee waivers and/or expense reimbursements was 2.89%. (e) Annualized. (f) Not annualized for periods less than one year. F-10 NOTE 10--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS R ------------------------------ JUNE 3, 2002 SIX MONTHS (DATE SALES ENDED COMMENCED) TO APRIL 30, OCTOBER 31, 2003 2002 - -------------------------------------------------------------------------------------------- Net asset value, beginning of period $15.59 $ 18.35 - -------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.06)(a) (0.04)(a) - -------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.78 (2.72) ============================================================================================ Total from investment operations 0.72 (2.76) ============================================================================================ Net asset value, end of period $16.31 $ 15.59 ____________________________________________________________________________________________ ============================================================================================ Total return(b) 4.62% (15.04)% ____________________________________________________________________________________________ ============================================================================================ Ratios/supplemental data: Net assets, end of period (000s omitted) $ 403 $ 15 ____________________________________________________________________________________________ ============================================================================================ Ratio of expenses to average net assets 2.21%(c) 2.08%(d) ============================================================================================ Ratio of net investment income (loss) to average net assets (0.73)%(c) (0.57)%(d) ____________________________________________________________________________________________ ============================================================================================ Portfolio turnover rate(e) 42% 94% ____________________________________________________________________________________________ ============================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $104,183. (d) Annualized. (e) Not annualized for periods less than one year. NOTE 11--SUBSEQUENT EVENT The Board of Directors of INVESCO Global & International Funds, Inc. ("Seller") unanimously approved, on June 9, 2003, an Agreement and Plan of Reorganization (the "Plan") pursuant to which INVESCO European Fund ("Selling Fund"), a series of Seller, would transfer all of its assets to AIM European Growth Fund ("Buying Fund"), a series of AIM International Funds, Inc. ("the Reorganization"). As a result of the Reorganization, shareholders of Selling Fund would receive shares of Buying Fund in exchange for their shares of Selling Fund, and Selling Fund would cease operations. The Plan requires approval of Selling Fund shareholders and will be submitted to the shareholders for their consideration at a meeting to be held on or around September 25, 2003. If the Plan is approved by shareholders of Selling Fund and certain conditions required by the Plan are satisfied, the transaction is expected to become effective shortly thereafter. Effective on or about October 1, 2003, it is anticipated that Selling Fund will be closed to new investors. F-11 OTHER INFORMATION DIRECTORS AND OFFICERS BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND Robert H. Graham Robert H. Graham 11 Greenway Plaza Chairman and President Suite 100 Mark H. Williamson Houston, TX 77046 Mark H. Williamson Frank S. Bayley Executive Vice President INVESTMENT ADVISOR Bruce L. Crockett Kevin M. Carome A I M Advisors, Inc. Senior Vice President 11 Greenway Plaza Albert R. Dowden Suite 100 Gary T. Crum Houston, TX 77046 Edward K. Dunn Jr. Senior Vice President TRANSFER AGENT Jack M. Fields Dana R. Sutton Vice President and Treasurer A I M Fund Services, Inc. Carl Frischling P.O. Box 4739 Robert G. Alley Houston, TX 77210-4739 Prema Mathai-Davis Vice President CUSTODIAN Lewis F. Pennock Stuart W. Coco Vice President State Street Bank and Trust Company Ruth H. Quigley 225 Franklin Street Melville B. Cox Boston, MA 02110 Louis S. Sklar Vice President COUNSEL TO THE FUND Edgar M. Larsen Vice President Ballard Spahr Andrews & Ingersoll, LLP Nancy L. Martin 1735 Market Street Secretary Philadelphia, PA 19103 COUNSEL TO THE TRUSTEES Kramer, Levin, Naftalis & Frankel LLP 919 Third Avenue New York, NY 10022 DISTRIBUTOR A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046
THE AIM FAMILY OF FUNDS--Registered Trademark-- DOMESTIC EQUITY INTERNATIONAL/GLOBAL EQUITY FIXED INCOME AIM Aggressive Growth Fund AIM Asia Pacific Growth Fund(2) TAXABLE AIM Balanced Fund* AIM Developing Markets Fund AIM Basic Balanced Fund* AIM European Growth Fund(2) AIM Floating Rate Fund AIM Basic Value Fund AIM European Small Company Fund AIM High Yield Fund AIM Blue Chip Fund AIM Global Aggressive Growth Fund AIM Income Fund AIM Capital Development Fund AIM Global Growth Fund AIM Intermediate Government Fund AIM Charter Fund AIM Global Trends Fund AIM Limited Maturity Treasury Fund(6,7) AIM Constellation Fund AIM Global Value Fund(5) AIM Money Market Fund AIM Dent Demographic Trends Fund AIM International Core Equity Fund(2) AIM Short-Term Bond Fund AIM Diversified Dividend Fund(1) AIM International Emerging Growth Fund AIM Total Return Bond Fund AIM Emerging Growth Fund AIM International Growth Fund(2) AIM Large Cap Basic Value Fund AIM Large Cap Growth Fund TAX-FREE AIM Libra Fund AIM Mid Cap Basic Value Fund SECTOR EQUITY AIM High Income Municipal Fund AIM Mid Cap Core Equity Fund(2) AIM Municipal Bond Fund AIM Mid Cap Growth Fund AIM Global Energy Fund AIM Tax-Exempt Cash Fund AIM Opportunities I Fund(2,3) AIM Global Financial Services Fund AIM Tax-Free Intermediate Fund(6,7) AIM Opportunities II Fund(2,3) AIM Global Health Care Fund AIM Opportunities III Fund(2,3) AIM Global Science and Technology Fund(2) AIM Premier Equity Fund(2) AIM Global Utilities Fund AIM Premier Equity II Fund(2) AIM New Technology Fund AIM Select Equity Fund AIM Real Estate Fund AIM Small Cap Equity Fund AIM Small Cap Growth Fund(4) AIM Weingarten Fund *Domestic equity and income fund
YOUR GOALS. OUR SOLUTIONS.--Servicemark-- Mutual Retirement Annuities College Separately Offshore Alternative Cash Funds Products Savings Managed Products Investments Management Plans Accounts
(AIM INVESTMENTS LOGO APPEARS HERE) --Servicemark-- (1) Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. (2) The following fund name changes became effective July 1, 2002: AIM Asian Growth Fund renamed AIM Asia Pacific Growth Fund; AIM European Development Fund renamed AIM European Growth Fund; AIM Global Telecommunications and Technology Fund renamed AIM Global Science and Technology Fund; AIM International Equity Fund renamed AIM International Growth Fund; AIM International Value Fund renamed AIM International Core Equity Fund; AIM Large Cap Opportunities Fund renamed AIM Opportunities III Fund; AIM Mid Cap Equity Fund renamed AIM Mid Cap Core Equity Fund; AIM Mid Cap Opportunities Fund renamed AIM Opportunities II Fund; AIM Small Cap Opportunities Fund renamed AIM Opportunities I Fund; AIM Value Fund renamed AIM Premier Equity Fund; AIM Value II Fund renamed AIM Premier Equity II Fund. (3) Effective October 1, 2002, the fund was reopened to new investors. (4) AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. (5) Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. (6) Class A shares closed to new investors on October 30, 2002. (7) Class A3 shares were first offered on October 31, 2002. For more complete information about any AIM fund, including sales charges and expenses, ask your financial advisor for a prospectus. Please read it carefully before investing. This brochure is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Please read it carefully before investing. If used after July 20, 2003, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual Funds distributed by A I M Distributors, Inc. A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $115 billion in assets for approximately 9 million shareholders, including individual investors, corporate clients and financial institutions. The AIM Family of Funds--Registered Trademark-- is distributed nationwide. AIM is a subsidiary of AMVESCAP PLC, one of the world's largest independent financial services companies with $319 billion in assets under management. Data as of March 31, 2003. EGR-SAR-1 AIMinvestments.com SEMIANNUAL REPORT TO SHAREHOLDERS / APRIL 30, 2003 AIM GLOBAL AGGRESSIVE GROWTH FUND AIM Global Aggressive Growth Fund seeks to provide above-average long-term growth of capital. The fund seeks to meet its objective by investing, normally, at least 65% of its total assets in marketable equity securities of domestic and foreign issuers. [COVER IMAGE] [AIM INVESTMENTS LOGO APPEARS HERE] --Servicemark-- YOUR GOALS. OUR SOLUTIONS. --Servicemark-- NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This report may be distributed only to shareholders or to persons who have received a current prospectus of the fund. FUND DATA ================================================================================ TOP COUNTRIES As of 4/30/03 - -------------------------------------------------------------------------------- [PIE CHART] UNITED STATES 38.1% SWITZERLAND 2.5% GERMANY 2.8% SOUTH KOREA 3.1% BERMUDA 3.3% MEXICO 3.4% JAPAN 3.9% SPAIN 5.4% IRELAND 5.8% UNITED KINGDOM 10.6% OTHER 21.1% TOTAL NUMBER OF HOLDINGS* 134 TOTAL NET ASSETS $768 MILLION ================================================================================ ================================================================================ AVERAGE ANNUAL TOTAL RETURNS As of 4/30/03, including sales charges CLASS A SHARES Inception (9/15/94) 4.23% 5 Years -6.18 1 Year -19.37 CLASS B SHARES Inception (9/15/94) 4.29% 5 Years -6.04 1 Year -19.95 CLASS C SHARES Inception (8/4/97) -4.31% 5 Years -5.76 1 Year -16.64 In addition to returns as of the close of the reporting period, industry regulations require us to provide average annual total returns (including sales charges) as of 3/31/03, the most recent calendar quarter-end, which were: Class A shares, inception (9/15/94), 3.53%; five years, -6.97%; one year, -24.59%. Class B shares, inception (9/15/94), 3.59%; five years, -6.84%; one year, - -25.22%. Class C shares, inception (8/4/97), -5.39%; five years, -6.55%; one year, -22.00%. ================================================================================ ================================================================================ FUND VS. INDEXES Total Returns 10/31/02-4/30/03 excluding sales charges CLASS A SHARES 2.55% CLASS B SHARES 2.30 CLASS C SHARES 2.30 MSCI ALL COUNTRY (AC) WORLD FREE INDEX 3.70 (Broad Market Index) LIPPER GLOBAL SMALL CAP FUND 3.85 Category Average (Peer Group Index) Source: Lipper, Inc. Past performance cannot guarantee comparable future results. DUE TO SIGNIFICANT MARKET VOLATILITY, RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN. CALL YOUR FINANCIAL ADVISOR FOR MORE CURRENT PERFORMANCE. ================================================================================
================================================================================================================ TOP 10 EQUITY HOLDINGS* TOP 10 INDUSTRIES* - ---------------------------------------------------------------------------------------------------------------- 1. Anglo Irish Bank Corp. PLC (Ireland) -4.0% 1. Banks 9.6% 2. Grupo Ferrovial, S.A. (Spain) 2.6 2. Pharmaceuticals 6.4 3. Willis Group Holdings Ltd. (Bermuda) 2.1 3. Diversified Financial Services 5.3 4. Taro Pharmaceutical Industries Ltd. (Israel) 1.5 4. Construction & Engineering 4.6 5. AO VimpelCom-ADR (Russia) 1.4 5. Electronic Equipment & Instruments 4.1 6. Travis Perkins PLC (United Kingdom) 1.4 6. Health Care Distributors & Services 3.6 7. AmerisourceBergen Corp. 1.4 7. Health Care Equipment 3.3 8. Express Scripts, Inc. 1.4 8. Wireless Telecommunication Services 3.0 9. Ranbaxy Laboratories Ltd. (India) 1.3 9. Oil & Gas Drilling 2.9 10. Enterprise Inns PLC (United Kingdom) 1.3 10. Insurance Brokers 2.8 *Excludes money market fund holdings. The fund's holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security. ================================================================================================================
ABOUT FUND INFORMATION THROUGHOUT THIS REPORT: o Unless otherwise stated, information presented here is as of 4/30/03 and is based on total net assets. o AIM Global Aggressive Growth Fund's performance figures are historical, and they reflect fund expenses, the reinvestment of distributions and changes in net asset value. o When sales charges are included in performance figures, Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C 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 CDSC on Class C shares is 1% for the first year after purchase. The performance of the fund's share classes will differ due to different sales charge structures and class expenses. o International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values 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. o Investing in micro, small and mid-size companies may involve risks not associated with investing in more established companies. Also, micro and small companies may have business risk, significant stock price fluctuations and illiquidity. o The fund's investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than their original cost. o In the Schedule of Investments in this report, the fund's portfolio holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o The unmanaged MSCI All Country (AC) World Free Index tracks the performance of approximately 50 developed and emerging countries covered by Morgan Stanley Capital International. A "free" index represents actual buyable opportunities for global investors. o The unmanaged Lipper Global Small Cap Fund Category Average represents an average of the performance of all global small-cap mutual funds tracked by Lipper, Inc., an independent mutual fund performance monitor. o A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not include sales charges. Performance of an index of funds reflects fund expenses. Performance of a market index does not. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, aiminvestments.com. FOR MORE INFORMATION, PLEASE VISIT AIMinvestments.com. TO OUR SHAREHOLDERS DEAR SHAREHOLDER: [PHOTO OF This is the report on AIM Global Aggressive Growth Fund for ROBERT H. the six months ended April 30, 2003. You will note that we GRAHAM] have adopted a more concise format for our semiannual reports. Important information such as top holdings and performance as of the close of the reporting period appear ON THE CURRENCY on the opposite page. This letter will provide an overview FRONT, THE U.S. of the markets and your fund during the six months covered DOLLAR WAS WEAK by this report. As always, timely information about your COMPARED TO MANY fund and the markets in general is available at our Web FOREIGN CURRENCIES. site, aiminvestments.com. ROBERT H. GRAHAM MARKET CONDITIONS In U.S. markets, positive performance during March and April 2003 enabled major stock market indexes to post gains for the reporting period. For example, the unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500), an index of common stocks frequently used as a general measure of U.S. stock market performance, returned 4.47% for the six months ended April 30, 2003. Year to date as of April 30, consumer discretionary, information technology and financials were among the better-performing sectors of the S&P 500, while telecommunications services was the worst. Generally, mid- and small-cap stocks outperformed large-cap stocks, and the value investment style outperformed the growth investment style during the six-month reporting period. International markets, as measured by the unmanaged MSCI Europe, Australasia and the Far East Index (the EAFE--Registered Trademark--), a group of foreign securities tracked by Morgan Stanley Capital International, produced negative returns for the first quarter of 2003. International markets, however, rallied in April. This rally helped push international market returns into positive territory for the six-month reporting period. European markets rallied toward the close of the reporting period, with the MSCI (Morgan Stanley Capital International) Europe Index, often considered representative of the European equity market, gaining 13.49% in April. In European monetary affairs, the European Central Bank (ECB) cut its benchmark interest rate 25 basis points to 2.50% in March. It remained at that level as the reporting period closed. As widely discussed, in Asia, the epidemic of severe acute respiratory syndrome (SARS) dealt a blow to local economies. However, the MSCI All Country (AC) Asia Pacific Free ex-Japan Index, a group of developed and emerging Asian and Asia-Pacific markets (except Japan) covered by Morgan Stanley Capital International, rallied in April and was positive for the six-month reporting period. On the currency front, the U.S. dollar was weak compared to many foreign currencies. In particular, the euro showed strength as it appreciated nearly 13% against the dollar during the reporting period. Other notable currencies that gained ground on the dollar included the Australian dollar, Swiss franc, British pound and Canadian dollar. YOUR FUND Throughout the reporting period, AIM Global Aggressive Growth fund managers Jason T. Holzer, Robert M. Kippes and Barrett K. Sides sought to identify companies, that in their view, have the potential for above-average long-term growth in earnings and prospects for future growth. At the end of the six-month reporting period, the fund's largest exposure was to companies in Europe, followed by North America, Asia, Latin America, the South Pacific and other miscellaneous regions. As of April 30, 2003, the fund had its largest exposure in the financials, health care and consumer discretionary sectors. Over the course of the reporting period, the fund's exposure to health care and telecommunications services increased, while its weighting in consumer discretionary and industrials decreased. The fund had 134 equity holdings at the end of the reporting period. We encourage you to visit our Web site, aiminvestments.com, for a wealth of information about your fund, including regular performance updates, quarterly details of portfolio composition, and much more. From our home page, click on Products & Performance, then Mutual Funds, and then select the type of information you wish to view. IN CLOSING I thank you for your continued participation in AIM Global Aggressive Growth Fund, and I look forward to reporting to you again in six months. If you have any questions, please consult your financial advisor to help you with your investment choices. As always, members of our award-winning Client Services department are ready to help. They can be reached at 800-959-4246. Sincerely, /s/ ROBERT H. GRAHAM Robert H. Graham Chairman April 30, 2003 FINANCIALS SCHEDULE OF INVESTMENTS April 30, 2003 (Unaudited)
MARKET SHARES VALUE - --------------------------------------------------------------------------------- FOREIGN STOCKS & OTHER EQUITY INTERESTS-61.59% AUSTRALIA-2.10% Boral Ltd. (Construction Materials) 1,628,800 $ 4,857,697 - --------------------------------------------------------------------------------- Cochlear Ltd. (Health Care Equipment) 257,600 5,464,980 - --------------------------------------------------------------------------------- Wesfarmers Ltd. (Industrial Conglomerates) 378,900 5,816,295 ================================================================================= 16,138,972 ================================================================================= AUSTRIA-0.70% Erste Bank der Oesterreichischen Sparhassen A.G. (Banks) 67,500 5,350,947 ================================================================================= BERMUDA-3.26% Esprit Holdings Ltd. (Apparel Retail) 2,682,000 5,261,487 - --------------------------------------------------------------------------------- Li & Fung Ltd. (Distributors) 3,464,000 3,886,371 - --------------------------------------------------------------------------------- Willis Group Holdings Ltd. (Insurance Brokers) 508,600 15,863,234 ================================================================================= 25,011,092 ================================================================================= CANADA-1.28% Onex Corp. (Electronic Equipment & Instruments) 727,700 7,512,528 - --------------------------------------------------------------------------------- Power Financial Corp. (Diversified Financial Services) 79,700 2,293,265 ================================================================================= 9,805,793 ================================================================================= CROATIA-0.28% Pliva D.D.-GDR (Pharmaceuticals) (Acquired 11/14/02; Cost $2,064,550)(b)(c) 157,000 2,137,696 ================================================================================= FRANCE-2.02% Autoroutes du Sud de la France (Highways & Railtracks)(a) 207,200 5,675,923 - --------------------------------------------------------------------------------- CNP Assurances (Life & Health Insurance) 70,050 2,821,191 - --------------------------------------------------------------------------------- Pernod-Ricard S.A. (Distillers & Vintners) 21,100 1,855,504 - --------------------------------------------------------------------------------- SEB S.A. (Household Appliances) 54,900 5,156,230 ================================================================================= 15,508,848 ================================================================================= GERMANY-2.84% Adidas-Salomon A.G. (Apparel, Accessories & Luxury Goods) 80,830 6,967,991 - --------------------------------------------------------------------------------- Continental A.G. (Tires & Rubber) 245,340 4,397,264 - --------------------------------------------------------------------------------- Deutsche Boerse A.G. (Diversified Financial Services) 89,310 4,194,015 - --------------------------------------------------------------------------------- Porsche A.G.-Pfd. (Automobile Manufacturers) 6,780 2,501,637 - --------------------------------------------------------------------------------- Puma A.G. Rudolf Dassler Sport (Footwear) 38,700 3,722,991 ================================================================================= 21,783,898 ================================================================================= GREECE-1.28% Coca-Cola Hellenic Bottling Co. S.A. (Soft Drinks) 273,000 3,998,661 - ---------------------------------------------------------------------------------
MARKET SHARES VALUE - --------------------------------------------------------------------------------- GREECE-(CONTINUED) Cosmote Mobile Communications S.A. (Wireless Telecommunication Services) 561,950 $ 5,830,775 ================================================================================= 9,829,436 ================================================================================= HUNGARY-0.90% OTP Bank Rt. (Banks) 642,600 6,895,413 ================================================================================= INDIA-2.00% Dr. Reddy's Laboratories Ltd.-ADR (Pharmaceuticals) 274,400 5,186,160 - --------------------------------------------------------------------------------- Ranbaxy Laboratories Ltd. (Pharmaceuticals) 711,200 10,144,970 ================================================================================= 15,331,130 ================================================================================= IRELAND-5.77% Anglo Irish Bank Corp. PLC (Banks) 4,112,100 30,988,761 - --------------------------------------------------------------------------------- Kerry Group PLC-Class A (Packaged Foods & Meats) 386,600 5,727,411 - --------------------------------------------------------------------------------- Ryanair Holdings PLC-ADR (Airlines)(a) 190,800 7,569,036 ================================================================================= 44,285,208 ================================================================================= ISRAEL-1.68% Check Point Software Technologies Ltd. (Systems Software)(a) 92,800 1,459,744 - --------------------------------------------------------------------------------- Taro Pharmaceutical Industries Ltd. (Pharmaceuticals)(a) 249,660 11,424,442 ================================================================================= 12,884,186 ================================================================================= ITALY-1.78% Banco Popolare di Verona e Novara Scrl (Banks) 712,600 9,696,546 - --------------------------------------------------------------------------------- Saipem S.p.A. (Oil & Gas Drilling) 570,300 3,985,328 ================================================================================= 13,681,874 ================================================================================= JAPAN-3.89% Alps Electric Co., Ltd. (Electronic Equipment & Instruments) 476,000 5,152,980 - --------------------------------------------------------------------------------- Fanuc Ltd. (Industrial Machinery) 144,400 5,927,342 - --------------------------------------------------------------------------------- Funai Electric Co., Ltd. (Electronic Components & Equipment) 34,800 3,512,638 - --------------------------------------------------------------------------------- Nidec Corp. (Electronic Equipment & Instruments) 122,000 6,454,809 - --------------------------------------------------------------------------------- Stanley Electric Co., Ltd. (Auto Parts & Equipment) 344,000 4,340,329 - --------------------------------------------------------------------------------- Trend Micro Inc. (Application Software)(a) 367,100 4,477,394 ================================================================================= 29,865,492 ================================================================================= MEXICO-3.41% Alfa S.A.-Class A (Industrial Conglomerates) 1,970,100 3,368,431 - ---------------------------------------------------------------------------------
F-1
MARKET SHARES VALUE - --------------------------------------------------------------------------------- MEXICO-(CONTINUED) America Movil S.A. de C.V.-Series L-ADR (Wireless Telecommunication Services) 237,600 $ 3,984,552 - --------------------------------------------------------------------------------- Cemex S.A. de C.V.-ADR Wts., expiring 12/21/04 (Construction Materials)(a) 16,212 26,779 - --------------------------------------------------------------------------------- Grupo Financiero BBVA Bancomer, S.A. de C.V.- Class B (Banks)(a) 9,872,200 8,607,939 - --------------------------------------------------------------------------------- Telefonos de Mexico S.A. de C.V.-Series L-ADR (Integrated Telecommunications Services) 102,100 3,084,441 - --------------------------------------------------------------------------------- Wal-Mart de Mexico S.A. de C.V.-Series C (General Merchandise Stores) 2,792,100 7,126,798 ================================================================================= 26,198,940 ================================================================================= NETHERLANDS-1.36% Euronext N.V. (Diversified Financial Services) 153,600 3,400,455 - --------------------------------------------------------------------------------- IHC Caland N.V. (Oil & Gas Equipment & Services)(a) 43,000 2,223,621 - --------------------------------------------------------------------------------- James Hardie Industries N.V. (Construction Materials) 1,177,300 4,838,901 ================================================================================= 10,462,977 ================================================================================= NORWAY-0.41% TGS Nopec Geophysical Co. A.S.A. (Oil & Gas Equipment & Services)(a) 318,750 3,188,593 ================================================================================= RUSSIA-1.38% AO VimpelCom-ADR (Wireless Telecommunication Services)(a) 267,090 10,646,207 ================================================================================= SINGAPORE-0.73% Venture Corp. Ltd. (Electronic Equipment & Instruments) 673,000 5,616,397 ================================================================================= SOUTH KOREA-3.06% Kookmin Bank (Banks)(a) 240,480 6,752,053 - --------------------------------------------------------------------------------- LG Chem Ltd. (Commodity Chemicals) 208,000 6,901,935 - --------------------------------------------------------------------------------- Samsung Electronics Co., Ltd. (Electronic Equipment & Instruments)(a) 25,800 6,479,210 - --------------------------------------------------------------------------------- Shinsegae Co., Ltd. (Department Stores)(a) 28,200 3,366,818 ================================================================================= 23,500,016 ================================================================================= SPAIN-5.43% Amadeus Global Travel Distribution S.A.-Class A (Data Processing Services) 1,225,275 6,137,510 - --------------------------------------------------------------------------------- Corporacion Mapfre S.A. (Multi-Line Insurance) 459,000 4,310,946 - --------------------------------------------------------------------------------- Grupo Dragados, S.A. (Construction & Engineering) 341,253 6,532,221 - --------------------------------------------------------------------------------- Grupo Ferrovial, S.A. (Construction & Engineering) 755,900 20,098,185 - --------------------------------------------------------------------------------- NH Hoteles, S.A. (Hotels, Resorts & Cruise Lines) 514,100 4,627,262 ================================================================================= 41,706,124 ================================================================================= SWEDEN-0.71% Swedish Match A.B. (Tobacco) 733,200 5,440,770 =================================================================================
MARKET SHARES VALUE - --------------------------------------------------------------------------------- SWITZERLAND-2.46% Actelion Ltd. (Biotechnology)(a) 25,200 $ 1,616,172 - --------------------------------------------------------------------------------- Centerpulse A.G. (Health Care Equipment)(a) 30,608 6,701,574 - --------------------------------------------------------------------------------- Geberit International A.G. (Building Products)(a) 16,030 5,054,505 - --------------------------------------------------------------------------------- Nobel Biocare Holding A.G. (Heath Care Equipment) 67,400 3,732,831 - --------------------------------------------------------------------------------- Synthes-Stratec, Inc. (Health Care Equipment)(a) 2,788 1,760,257 ================================================================================= 18,865,339 ================================================================================= TAIWAN-1.95% Ambit Microsystems Corp. (Computer Storage & Peripherals)(a) 1,620,000 4,625,251 - --------------------------------------------------------------------------------- Compal Electronics Inc. (Computer Hardware) 3,998,400 4,313,912 - --------------------------------------------------------------------------------- Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors)(a) 4,390,351 6,021,773 ================================================================================= 14,960,936 ================================================================================= THAILAND-0.34% Advanced Info Service PCL (Wireless Telecommunication Services) 2,520,000 2,650,462 ================================================================================= UNITED KINGDOM-10.57% Barratt Developments PLC (Homebuilding) 474,000 3,169,815 - --------------------------------------------------------------------------------- Bunzl PLC (Diversified Commercial Services) 613,450 4,421,333 - --------------------------------------------------------------------------------- Cattles PLC (Consumer Finance) 675,000 3,434,078 - --------------------------------------------------------------------------------- Enterprise Inns PLC (Restaurants) 1,004,400 9,850,232 - --------------------------------------------------------------------------------- Galen Holdings PLC (Pharmaceuticals) 698,385 4,877,734 - --------------------------------------------------------------------------------- ICAP PLC (Diversified Financial Services) 536,250 8,343,148 - --------------------------------------------------------------------------------- Jardine Lloyd Thompson Group PLC (Insurance Brokers) 249,800 2,279,101 - --------------------------------------------------------------------------------- Man Group PLC (Diversified Financial Services) 512,600 8,651,877 - --------------------------------------------------------------------------------- Northern Rock PLC (Banks) 213,400 2,442,774 - --------------------------------------------------------------------------------- Shire Pharmaceuticals Group PLC (Pharmaceuticals)(a) 962,100 6,187,647 - --------------------------------------------------------------------------------- Smith & Nephew PLC (Health Care Supplies) 1,272,375 8,493,579 - --------------------------------------------------------------------------------- Travis Perkins PLC (Home Improvement Retail) 592,940 10,624,489 - --------------------------------------------------------------------------------- William Morrison Supermarkets PLC (Food Retail) 2,050,000 6,116,627 - --------------------------------------------------------------------------------- Wimpey (George) PLC (Homebuilding) 581,300 2,324,982 ================================================================================= 81,217,416 ================================================================================= Total Foreign Stocks & Other Equity Interests (Cost $406,467,524) 472,964,162 ================================================================================= DOMESTIC COMMON STOCKS-33.69% AEROSPACE & DEFENSE-0.74% Alliant Techsystems Inc.(a) 105,600 5,672,832 ================================================================================= AIR FREIGHT & LOGISTICS-0.29% Expeditors International of Washington, Inc. 61,700 2,243,350 ================================================================================= APPAREL RETAIL-1.57% Abercrombie & Fitch Co.-Class A(a) 200,000 6,576,000 - ---------------------------------------------------------------------------------
F-2
MARKET SHARES VALUE - --------------------------------------------------------------------------------- APPAREL RETAIL-(CONTINUED) Pacific Sunwear of California, Inc.(a) 238,000 $ 5,433,540 ================================================================================= 12,009,540 ================================================================================= APPLICATION SOFTWARE-0.77% Intuit Inc.(a) 103,600 4,017,608 - --------------------------------------------------------------------------------- National Instruments Corp.(a) 59,200 1,899,136 ================================================================================= 5,916,744 ================================================================================= AUTO PARTS & EQUIPMENT-1.08% Gentex Corp.(a) 275,000 8,305,000 ================================================================================= BANKS-0.36% Southwest Bancorp. of Texas, Inc.(a) 81,500 2,769,370 ================================================================================= BROADCASTING & CABLE TV-0.39% Hispanic Broadcasting Corp.(a) 115,200 2,954,880 ================================================================================= COMPUTER & ELECTRONICS RETAIL-1.14% CDW Computer Centers, Inc.(a) 205,100 8,745,464 ================================================================================= CONSTRUCTION & ENGINEERING-1.15% Jacobs Engineering Group Inc.(a) 214,600 8,830,790 ================================================================================= DATA PROCESSING SERVICES-2.02% DST Systems, Inc.(a) 40,500 1,243,350 - --------------------------------------------------------------------------------- Fiserv, Inc.(a) 141,500 4,165,760 - --------------------------------------------------------------------------------- Iron Mountain Inc.(a) 118,000 4,702,300 - --------------------------------------------------------------------------------- Paychex, Inc. 173,900 5,415,246 ================================================================================= 15,526,656 ================================================================================= DEPARTMENT STORES-0.24% Kohl's Corp.(a) 32,100 1,823,280 ================================================================================= DIVERSIFIED COMMERCIAL SERVICES-0.79% Apollo Group, Inc.-Class A(a) 51,950 2,815,638 - --------------------------------------------------------------------------------- Cintas Corp. 90,000 3,231,000 ================================================================================= 6,046,638 ================================================================================= DIVERSIFIED FINANCIAL SERVICES-1.82% Investors Financial Services Corp. 290,500 6,335,805 - --------------------------------------------------------------------------------- Legg Mason, Inc. 106,100 5,761,230 - --------------------------------------------------------------------------------- Lehman Brothers Holdings Inc. 30,200 1,901,694 ================================================================================= 13,998,729 ================================================================================= EMPLOYMENT SERVICES-0.73% Robert Half International Inc.(a) 342,200 5,571,016 ================================================================================= GENERAL MERCHANDISE STORES-0.30% Dollar Tree Stores, Inc.(a) 89,800 2,285,410 =================================================================================
MARKET SHARES VALUE - --------------------------------------------------------------------------------- HEALTH CARE DISTRIBUTORS & SERVICES-3.61% AmerisourceBergen Corp. 183,400 $ 10,609,690 - --------------------------------------------------------------------------------- HEALTH CARE DISTRIBUTORS & SERVICES-(CONTINUED) Express Scripts, Inc.(a) 179,100 10,559,736 - --------------------------------------------------------------------------------- Lincare Holdings Inc.(a) 119,700 3,635,289 - --------------------------------------------------------------------------------- Omnicare, Inc. 110,600 2,933,112 ================================================================================= 27,737,827 ================================================================================= HEALTH CARE EQUIPMENT-1.01% Varian Medical Systems, Inc.(a) 144,400 7,777,384 ================================================================================= HEALTH CARE FACILITIES-1.76% Community Health Systems Inc.(a) 302,700 5,751,300 - --------------------------------------------------------------------------------- Health Management Associates, Inc.-Class A 452,500 7,719,650 ================================================================================= 13,470,950 ================================================================================= HEALTH CARE SUPPLIES-0.65% Fisher Scientific International Inc.(a) 173,000 4,984,130 ================================================================================= INDUSTRIAL MACHINERY-0.92% Danaher Corp. 102,700 7,084,246 ================================================================================= INSURANCE BROKERS-0.48% Brown & Brown, Inc. 103,600 3,705,772 ================================================================================= IT CONSULTING & SERVICES-1.68% Affiliated Computer Services, Inc.-Class A(a) 184,700 8,810,190 - --------------------------------------------------------------------------------- SunGard Data Systems Inc.(a) 189,300 4,069,950 ================================================================================= 12,880,140 ================================================================================= MANAGED HEALTH CARE-0.27% First Health Group Corp.(a) 83,500 2,091,675 ================================================================================= MULTI-LINE INSURANCE-0.63% HCC Insurance Holdings, Inc. 175,000 4,812,500 ================================================================================= OIL & GAS DRILLING-2.33% National-Oilwell, Inc.(a) 312,000 6,548,880 - --------------------------------------------------------------------------------- Patterson-UTI Energy, Inc.(a) 274,300 9,076,587 - --------------------------------------------------------------------------------- Pride International, Inc.(a) 147,700 2,292,304 ================================================================================= 17,917,771 ================================================================================= OIL & GAS EQUIPMENT & SERVICES-0.43% Varco International, Inc.(a) 189,000 3,324,510 ================================================================================= OIL & GAS EXPLORATION & PRODUCTION-0.35% Newfield Exploration Co.(a) 78,900 2,713,371 ================================================================================= PHARMACEUTICALS-1.20% Medicis Pharmaceutical Corp.-Class A(a) 160,100 9,228,164 ================================================================================= RESTAURANTS-0.96% Brinker International, Inc.(a) 130,000 4,127,500 - --------------------------------------------------------------------------------- Starbucks Corp.(a) 137,300 3,225,177 ================================================================================= 7,352,677 =================================================================================
F-3
MARKET SHARES VALUE - --------------------------------------------------------------------------------- SEMICONDUCTORS-0.67% Linear Technology Corp. 61,800 $ 2,130,246 - --------------------------------------------------------------------------------- Microchip Technology Inc. 146,250 3,040,538 ================================================================================= 5,170,784 ================================================================================= SPECIALTY CHEMICALS-0.39% Valspar Corp. (The) 70,000 3,023,300 ================================================================================= SPECIALTY STORES-1.50% Bed Bath and Beyond, Inc.(a) 142,500 5,630,175 - --------------------------------------------------------------------------------- Williams-Sonoma, Inc.(a) 226,400 5,859,232 ================================================================================= 11,489,407 ================================================================================= TELECOMMUNICATIONS EQUIPMENT-0.60% UTStarcom, Inc.(a) 212,900 4,635,046 ================================================================================= TRADING COMPANIES & DISTRIBUTORS-0.86% Fastenal Co. 191,400 6,620,526 ================================================================================= Total Domestic Common Stocks (Cost $246,808,153) 258,719,879 =================================================================================
MARKET SHARES VALUE - --------------------------------------------------------------------------------- MONEY MARKET FUNDS-4.38% STIC Liquid Assets Portfolio(d) 16,818,532 $ 16,818,532 - --------------------------------------------------------------------------------- STIC Prime Portfolio(d) 16,818,532 16,818,532 ================================================================================= Total Money Market Funds (Cost $33,637,064) 33,637,064 ================================================================================= TOTAL INVESTMENTS-99.66% (excluding investments purchased with cash collateral from securities loaned) (Cost $686,912,741) 765,321,105 ================================================================================= INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS-18.57% STIC Liquid Assets Portfolio(d)(e) 71,329,767 71,329,767 - --------------------------------------------------------------------------------- STIC Prime Portfolio(d)(e) 71,329,767 71,329,767 ================================================================================= Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $142,659,534) 142,659,534 ================================================================================= TOTAL INVESTMENTS-118.23% (Cost $829,572,275) 907,980,639 ================================================================================= OTHER ASSETS LESS LIABILITIES-(18.23%) (140,023,116) ================================================================================= NET ASSETS-100.00% $ 767,957,523 _________________________________________________________________________________ =================================================================================
Investment Abbreviations: ADR - American Depositary Receipt GDR - Global Depositary Receipt Pfd. - Preferred Wts. - Warrants
Notes to Schedule of Investments: (a) Non-income producing security. (b) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction); the security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The market value of this security at 04/30/03 was $2,137,696, which represented 0.28% of the Fund's net assets. This security is considered to be illiquid. (c) Security fair valued in accordance with the procedures established by the Board of Directors. (d) The money market fund and the Fund are affiliated by having the same investment advisor. (e) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Notes to Financial Statements. F-4 STATEMENT OF ASSETS AND LIABILITIES April 30, 2003 (Unaudited) ASSETS: Investments, at market value (cost $829,572,275)* $ 907,980,639 - ------------------------------------------------------------ Foreign currencies, at value (cost $14,234,043) 13,939,963 - ------------------------------------------------------------ Receivables for: Investments sold 2,444,085 - ------------------------------------------------------------ Capital stock sold 3,744,125 - ------------------------------------------------------------ Dividends 1,162,673 - ------------------------------------------------------------ Due from advisor -- See Note 2 40,620 - ------------------------------------------------------------ Investment for deferred compensation plan 56,142 - ------------------------------------------------------------ Other assets 33,667 ============================================================ Total assets 929,401,914 ____________________________________________________________ ============================================================ LIABILITIES: Payables for: Investments purchased 5,177,748 - ------------------------------------------------------------ Capital stock reacquired 11,937,241 - ------------------------------------------------------------ Deferred compensation plan 56,142 - ------------------------------------------------------------ Collateral upon return of securities loaned 142,659,534 - ------------------------------------------------------------ Accrued distribution fees 554,038 - ------------------------------------------------------------ Accrued directors' fees 1,118 - ------------------------------------------------------------ Accrued transfer agent fees 683,111 - ------------------------------------------------------------ Accrued operating expenses 375,459 ============================================================ Total liabilities 161,444,391 ============================================================ Net assets applicable to shares outstanding $ 767,957,523 ____________________________________________________________ ============================================================ NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $1,019,080,642 - ------------------------------------------------------------ Undistributed net investment income (loss) (4,999,605) - ------------------------------------------------------------ Undistributed net realized gain (loss) from investment securities and foreign currencies (324,227,579) - ------------------------------------------------------------ Unrealized appreciation of investment securities and foreign currencies 78,104,065 ============================================================ $ 767,957,523 ____________________________________________________________ ============================================================ NET ASSETS: Class A $ 409,365,075 ____________________________________________________________ ============================================================ Class B $ 340,669,644 ____________________________________________________________ ============================================================ Class C $ 17,922,804 ____________________________________________________________ ============================================================ CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 36,278,256 ____________________________________________________________ ============================================================ Class B: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 31,968,023 ____________________________________________________________ ============================================================ Class C: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 1,681,101 ____________________________________________________________ ============================================================ Class A: Net asset value per share $ 11.28 - ------------------------------------------------------------ Offering price per share: (Net asset value of $11.28 divided by 95.25%) $ 11.84 ____________________________________________________________ ============================================================ Class B: Net asset value and offering price per share $ 10.66 ____________________________________________________________ ============================================================ Class C: Net asset value and offering price per share $ 10.66 ____________________________________________________________ ============================================================
* At April 30, 2003, securities with an aggregate market value of $137,231,395 were on loan to brokers. See Notes to Financial Statements. F-5 STATEMENT OF OPERATIONS For the six months ended April 30, 2003 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding tax of $375,474) $ 3,765,363 - -------------------------------------------------------------------------- Dividends from affiliated money market funds 133,499 - -------------------------------------------------------------------------- Interest 25,554 - -------------------------------------------------------------------------- Security lending income 210,282 ========================================================================== Total investment income 4,134,698 ========================================================================== EXPENSES: Advisory fees 3,433,905 - -------------------------------------------------------------------------- Administrative services fees 93,639 - -------------------------------------------------------------------------- Custodian fees 318,185 - -------------------------------------------------------------------------- Distribution fees -- Class A 972,600 - -------------------------------------------------------------------------- Distribution fees -- Class B 1,781,704 - -------------------------------------------------------------------------- Distribution fees -- Class C 88,546 - -------------------------------------------------------------------------- Transfer agent fees 2,090,819 - -------------------------------------------------------------------------- Directors' fees 6,673 - -------------------------------------------------------------------------- Other 268,874 ========================================================================== Total expenses 9,054,945 ========================================================================== Less: Fees waived, expenses reimbursed and expenses paid indirectly (49,490) ========================================================================== Net expenses 9,005,455 ========================================================================== Net investment income (loss) (4,870,757) ========================================================================== REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND FOREIGN CURRENCIES: Net realized gain (loss) from: Investment securities (25,198,442) - -------------------------------------------------------------------------- Foreign currencies (28,307) ========================================================================== (25,226,749) ========================================================================== Change in net unrealized appreciation of: Investment securities 48,323,231 - -------------------------------------------------------------------------- Foreign currencies 80,606 ========================================================================== 48,403,837 ========================================================================== Net gain from investment securities and foreign currencies 23,177,088 ========================================================================== Net increase in net assets resulting from operations $ 18,306,331 __________________________________________________________________________ ==========================================================================
See Notes to Financial Statements. F-6 STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2003 and the year ended October 31, 2002 (Unaudited)
APRIL 30, OCTOBER 31, 2003 2002 - -------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ (4,870,757) $ (15,311,459) - -------------------------------------------------------------------------------------------- Net realized gain (loss) from investment securities and foreign currencies (25,226,749) (155,410,958) - -------------------------------------------------------------------------------------------- Change in net unrealized appreciation of investment securities and foreign currencies 48,403,837 54,124,434 ============================================================================================ Net increase (decrease) in net assets resulting from operations 18,306,331 (116,597,983) ============================================================================================ Share transactions-net: Class A (6,974,061) (104,866,509) - -------------------------------------------------------------------------------------------- Class B (54,386,729) (135,727,235) - -------------------------------------------------------------------------------------------- Class C (1,548,763) (6,268,941) ============================================================================================ Net increase (decrease) in net assets resulting from share transactions (62,909,553) (246,862,685) ============================================================================================ Net increase (decrease) in net assets (44,603,222) (363,460,668) ============================================================================================ NET ASSETS: Beginning of period 812,560,745 1,176,021,413 ============================================================================================ End of period $767,957,523 $ 812,560,745 ____________________________________________________________________________________________ ============================================================================================
NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM Global Aggressive Growth 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 series management investment company consisting of six separate portfolios. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be 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 above-average long-term growth of capital. Companies are listed in the Schedule of Investments based on the country in which they are organized. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued at the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors of the Company. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, F-7 futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Occasionally, events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not be reflected in the computation of the Fund's net asset value. If a development/event is so significant that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Directors. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes. D. 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 gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. E. FOREIGN CURRENCY TRANSLATIONS -- Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. 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. G. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses are charged to each class pursuant to a transfer agency and service agreement adopted by the Fund with respect to such class. All other expenses are allocated among the classes based on relative net assets. 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 investment advisory agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.90% of the first $1 billion of the Fund's average daily net assets, plus 0.85% of the Fund's average daily net assets in excess of $1 billion. AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds in which the Fund has invested (excluding investments made in affiliated money market funds with cash collateral from securities loaned by the Fund). For the six months ended April 30, 2003, AIM waived fees of $3,011. Under an agreement to limit the aggregate costs of certain shareholder services provided by third party administrators, a receivable of $40,620 has been recorded for the estimated amount which AIM reimbursed to the Fund on June 27, 2003. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2003, AIM was paid $93,639 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and shareholder services to the Fund. During the six months ended April 30, 2003, AFS retained $1,168,146 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, Class B and Class C shares of the Fund. The Company has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares, Class B shares and Class C shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays AIM Distributors compensation at the annual rate of 0.50% of the Fund's average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of these amounts, the Fund may pay a service fee of 0.25% of the average daily net assets of the Class A, Class B or Class C shares to selected dealers and financial institutions who furnish continuing personal shareholder services to their F-8 customers who purchase and own the appropriate class of shares of the Fund. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the six months ended April 30, 2003, the Class A, Class B and Class C shares paid $972,600, $1,781,704 and $88,546, respectively. Front-end sales commissions and contingent deferred sales charges (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. Contingent deferred sales charges ("CDSCs") are deducted from redemption proceeds prior to remittance to the shareholder. During six months ended April 30, 2003, AIM Distributors retained $35,955 in front-end sales commissions from the sale of Class A shares and $1,074, $8 and $1,577 for Class A, Class B and Class C shares, respectively, for CDSCs imposed upon redemptions by shareholders Certain officers and directors of the Company are officers and directors of AIM, AFS and/or AIM Distributors. During the six months ended April 30, 2003, the Fund paid legal fees of $2,013 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Company's directors. A member of that firm is a director of the Company. NOTE 3--INDIRECT EXPENSES For the six months ended April 30, 2003, the Fund received reductions in transfer agency fees from AFS (an affiliate of AIM) of $5,793 and reductions in custodian fees of $66 under expense offset arrangements which resulted in a reduction of the Fund's total expenses of $5,859. NOTE 4--DIRECTORS' FEES Directors' fees represent remuneration paid to each director who is not an "interested person" of AIM. Directors have the option to defer compensation payable by the Company. The Directors deferring compensation have the option to select various AIM Funds in which all or part of their deferral accounts shall be deemed to be invested. NOTE 5--BORROWINGS AIM has established an interfund lending facility for temporary borrowings by the AIM Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. During the reporting period, the Fund was a participant in a committed line of credit facility with a syndicate administered by Citibank, N.A. The Fund could borrow up to the lesser of (i) $500,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which were parties to the line of credit could borrow on a first come, first served basis. During the six months ended April 30, 2003, the Fund did not borrow under the line of credit agreement. The funds which were party to the line of credit were charged a commitment fee of 0.09% on the unused balance of the committed line. The commitment fee was allocated among the funds based on their respective average net assets for the period. The committed line of credit facility expired May 20, 2003. During the six months ended April 30, 2003, the Fund did not borrow under the interfund lending or the committed line of credit facility. NOTE 6--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities to the extent of one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value, determined daily, of the loaned securities. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral pursuant to these loans is invested in short-term money market instruments or affiliated money market funds. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral may be temporarily less than the value of the securities on loan. At April 30, 2003, securities with an aggregate value of $137,231,395 were on loan to brokers. The loans were secured by cash collateral of $142,659,534 received by the Fund and invested in affiliated money market funds. For the six months ended April 30, 2003, the Fund received fees of $210,282 for securities lending. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of distributable earnings will be updated at the Fund's fiscal year-end. The Fund has a capital loss carryforward for tax purposes which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD - ---------------------------------------------------------- October 31, 2009 $138,223,796 - ---------------------------------------------------------- October 31, 2010 157,204,113 ========================================================== Total capital loss carryforward $295,427,909 __________________________________________________________ ==========================================================
NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended April 30, 2003 was $190,933,401 and $225,798,559, respectively. The amount of unrealized appreciation (depreciation) of investment securities, for tax purposes, as of April 30, 2003 is as follows: Aggregate unrealized appreciation of investment securities $117,974,556 - ----------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (42,823,605) =========================================================== Net unrealized appreciation of investment securities $ 75,150,951 ___________________________________________________________ =========================================================== Cost of investments for tax purposes is $832,829,688.
F-9 NOTE 9--CAPITAL STOCK The Fund currently offers three different classes of shares: Class A shares, Class B shares and Class C shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with a CDSC. Under some circumstances, Class A shares are subject to CDSCs. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Changes in capital stock outstanding during the six months ended April 30, 2003 and the year ended October 31, 2002 were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ---------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Sold: Class A 38,965,641 $ 424,784,659 60,670,511 $ 751,546,029 - -------------------------------------------------------------------------------------------------------------------------- Class B 554,877 5,725,815 1,348,844 16,159,835 - -------------------------------------------------------------------------------------------------------------------------- Class C 927,471 9,560,452 1,454,890 17,014,301 ========================================================================================================================== Conversion of Class B shares to Class A shares: Class A 612,109 6,238,982 265,149 3,136,806 - -------------------------------------------------------------------------------------------------------------------------- Class B (601,657) (6,238,982) (281,263) (3,136,806) ========================================================================================================================== Reacquired: Class A (40,141,037) (437,997,702) (68,922,876) (859,549,344) - -------------------------------------------------------------------------------------------------------------------------- Class B (5,237,404) (53,873,562) (12,604,513) (148,750,264) - -------------------------------------------------------------------------------------------------------------------------- Class C (1,078,746) (11,109,215) (1,982,324) (23,283,242) ========================================================================================================================== (5,998,746) $ (62,909,553) (20,051,582) $(246,862,685) __________________________________________________________________________________________________________________________ ==========================================================================================================================
NOTE 10--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
CLASS A -------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ---------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - -------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 11.00 $ 12.58 $ 25.87 $ 21.95 $ 15.87 $ 17.28 - -------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.06)(a) (0.15)(a) (0.13) (0.28)(a) (0.17)(a) (0.10)(a) - -------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.34 (1.43) (8.42) 5.56 6.25 (1.31) ========================================================================================================================== Total from investment operations 0.28 (1.58) (8.55) 5.28 6.08 (1.41) ========================================================================================================================== Less distributions from net realized gains -- -- (4.74) (1.36) -- -- ========================================================================================================================== Net asset value, end of period $ 11.28 $ 11.00 $ 12.58 $ 25.87 $ 21.95 $ 15.87 __________________________________________________________________________________________________________________________ ========================================================================================================================== Total return(b) 2.55% (12.56)% (38.87)% 24.27% 38.31% (8.16)% __________________________________________________________________________________________________________________________ ========================================================================================================================== Ratios/supplemental data: Net assets, end of period (000s omitted) $409,365 $405,360 $563,828 $1,103,740 $852,198 $937,587 __________________________________________________________________________________________________________________________ ========================================================================================================================== Ratio of expenses to average net assets 2.12%(c)(d) 2.00% 1.87% 1.65% 1.80% 1.75% ========================================================================================================================== Ratio of net investment income (loss) to average net assets (1.03)%(c) (1.19)% (0.75)% (0.96)% (0.95)% (0.55)% __________________________________________________________________________________________________________________________ ========================================================================================================================== Portfolio turnover rate(e) 26% 73% 87% 62% 60% 50% __________________________________________________________________________________________________________________________ ==========================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $392,264,182. (d) After fee waiver and/or expense reimbursements. Ratio of expenses to average net assets prior to fee waiver and/or expense reimbursements was 2.13% for the six months ended April 30, 2003. (e) Not annualized for periods less than one year. F-10 NOTE 10--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS B ------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 10.42 $ 11.97 $ 24.98 $ 21.35 $ 15.52 $ 17.00 - ------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) (0.08)(a) (0.20)(a) (0.21) (0.42)(a) (0.27)(a) (0.19)(a) - ------------------------------------------------------------------------------------------------------------------------------ Net gains (losses) on securities (both realized and unrealized) 0.32 (1.35) (8.06) 5.41 6.10 (1.29) ============================================================================================================================== Total from investment operations 0.24 (1.55) (8.27) 4.99 5.83 (1.48) ============================================================================================================================== Less distributions from net realized gains -- -- (4.74) (1.36) -- -- ============================================================================================================================== Net asset value, end of period $ 10.66 $ 10.42 $ 11.97 $ 24.98 $ 21.35 $ 15.52 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Total return(b) 2.30% (12.95)% (39.19)% 23.56% 37.56% (8.71)% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratios/supplemental data: Net assets, end of period (000s omitted) $340,670 $388,101 $583,933 $1,158,979 $926,972 $947,293 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratio of expenses to average net assets 2.62%(c)(d) 2.51% 2.39% 2.19% 2.37% 2.32% ============================================================================================================================== Ratio of net investment income (loss) to average net assets (1.53)%(c) (1.70)% (1.27)% (1.50)% (1.52)% (1.11)% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Portfolio turnover rate(e) 26% 73% 87% 62% 60% 50% ______________________________________________________________________________________________________________________________ ==============================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $359,293,874. (d) After fee waivers and/or expense reimbursements. Ratio of expenses to average net assets prior to fee waiver and/or expense reimbursements was 2.63% for the six months ended April 30, 2003. (e) Not annualized for periods less than one year.
CLASS C ----------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------ 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 10.42 $ 11.98 $ 24.99 $ 21.35 $ 15.52 $ 17.00 - ------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) (0.08)(a) (0.20)(a) (0.21) (0.42)(a) (0.27)(a) (0.19)(a) - ------------------------------------------------------------------------------------------------------------------------------ Net gains (losses) on securities (both realized and unrealized) 0.32 (1.36) (8.06) 5.42 6.10 (1.29) ============================================================================================================================== Total from investment operations 0.24 (1.56) (8.27) 5.00 5.83 (1.48) ============================================================================================================================== Less distributions from net realized gains -- -- (4.74) (1.36) -- -- ============================================================================================================================== Net asset value, end of period $ 10.66 $ 10.42 $ 11.98 $ 24.99 $ 21.35 $ 15.52 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Total return(b) 2.30% (13.02)% (39.17)% 23.61% 37.56% (8.71)% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratios/supplemental data: Net assets, end of period (000s omitted) $17,923 $19,099 $28,260 $50,908 $16,325 $13,186 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratio of expenses to average net assets 2.62%(c)(d) 2.51% 2.39% 2.19% 2.37% 2.34% ============================================================================================================================== Ratio of net investment income (loss) to average net assets (1.53)%(c) (1.70)% (1.28)% (1.50)% (1.52)% (1.13)% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Portfolio turnover rate(e) 26% 73% 87% 62% 60% 50% ______________________________________________________________________________________________________________________________ ==============================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $17,855,944. (d) After fee waivers and/or expense reimbursements. Ratio of expenses to average net assets prior to fee waiver and/or expense reimbursements was 2.63% for the six months ended April 30, 2003. (e) Not annualized for periods less than one year. F-11 OTHER INFORMATION DIRECTORS AND OFFICERS BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND Robert H. Graham Robert H. Graham 11 Greenway Plaza Mark H. Williamson Chairman and President Suite 100 Frank S. Bayley Houston, TX 77046 Bruce L. Crockett Mark H. Williamson Albert R. Dowden Executive Vice President INVESTMENT ADVISOR Edward K. Dunn Jr. A I M Advisors, Inc. Jack M. Fields Kevin M. Carome 11 Greenway Plaza Carl Frischling Senior Vice President Suite 100 Prema Mathai-Davis Houston, TX 77046 Lewis F. Pennock Gary T. Crum Ruth H. Quigley Senior Vice President TRANSFER AGENT Louis S. Sklar A I M Fund Services, Inc. Dana R. Sutton P.O. Box 4739 Vice President and Treasurer Houston, TX 77210-4739 Robert G. Alley CUSTODIAN Vice President State Street Bank and Trust Company 225 Franklin Street Stuart W. Coco Boston, MA 02110 Vice President COUNSEL TO THE FUND Melville B. Cox Ballard Spahr Vice President Andrews & Ingersoll, LLP 1735 Market Street Edgar M. Larsen Philadelphia, PA 19103 Vice President COUNSEL TO THE TRUSTEES Nancy L. Martin Kramer, Levin, Naftalis & Frankel LLP Secretary 919 Third Avenue New York, NY 10022 DISTRIBUTOR A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046
THE AIM FAMILY OF FUNDs--Registered Trademark-- DOMESTIC EQUITY INTERNATIONAL/GLOBAL EQUITY FIXED INCOME AIM Aggressive Growth Fund AIM Asia Pacific Growth Fund(2) TAXABLE AIM Balanced Fund* AIM Developing Markets Fund AIM Basic Balanced Fund* AIM European Growth Fund(2) AIM Floating Rate Fund AIM Basic Value Fund AIM European Small Company Fund AIM High Yield Fund AIM Blue Chip Fund AIM Global Aggressive Growth Fund AIM Income Fund AIM Capital Development Fund AIM Global Growth Fund AIM Intermediate Government Fund AIM Charter Fund AIM Global Trends Fund AIM Limited Maturity Treasury Fund(6,7) AIM Constellation Fund AIM Global Value Fund5 AIM Money Market Fund AIM Dent Demographic Trends Fund AIM International Core Equity Fund(2) AIM Short-Term Bond Fund AIM Diversified Dividend Fund1 AIM International Emerging Growth Fund AIM Total Return Bond Fund AIM Emerging Growth Fund AIM International Growth Fund(2) AIM Large Cap Basic Value Fund TAX-FREE AIM Large Cap Growth Fund SECTOR EQUITY AIM Libra Fund AIM High Income Municipal Fund AIM Mid Cap Basic Value Fund AIM Global Energy Fund AIM Municipal Bond Fund AIM Mid Cap Core Equity Fund2 AIM Global Financial Services Fund AIM Tax-Exempt Cash Fund AIM Mid Cap Growth Fund AIM Global Health Care Fund AIM Tax-Free Intermediate Fund(6,7) AIM Opportunities I Fund2,3 AIM Global Science and Technology Fund(2) AIM Opportunities II Fund2,3 AIM Global Utilities Fund AIM Opportunities III Fund2,3 AIM New Technology Fund AIM Premier Equity Fund2 AIM Real Estate Fund AIM Premier Equity II Fund2 AIM Select Equity Fund AIM Small Cap Equity Fund AIM Small Cap Growth Fund4 AIM Weingarten Fund *Domestic equity and income fund
(1) Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. (2) The following fund name changes became effective July 1, 2002: AIM Asian Growth Fund renamed AIM Asia Pacific Growth Fund; AIM European Development Fund renamed AIM European Growth Fund; AIM Global Telecommunications and Technology Fund renamed AIM Global Science and Technology Fund; AIM International Equity Fund renamed AIM International Growth Fund; AIM International Value Fund renamed AIM International Core Equity Fund; AIM Large Cap Opportunities Fund renamed AIM Opportunities III Fund; AIM Mid Cap Equity Fund renamed AIM Mid Cap Core Equity Fund; AIM Mid Cap Opportunities Fund renamed AIM Opportunities II Fund; AIM Small Cap Opportunities Fund renamed AIM Opportunities I Fund; AIM Value Fund renamed AIM Premier Equity Fund; AIM Value II Fund renamed AIM Premier Equity II Fund. (3) Effective October 1, 2002, the fund was reopened to new investors. (4) AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. (5) Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. (6) Class A shares closed to new investors on October 30, 2002. (7) Class A3 shares were first offered on October 31, 2002. For more complete information about any AIM fund, including sales charges and expenses, ask your financial advisor for a prospectus. Please read it carefully before investing. This brochure is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Please read it carefully before investing. If used after July 20, 2003, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual Funds distributed by A I M Distributors, Inc. A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $115 billion in assets for approximately 9 million shareholders, including individual investors, corporate clients and financial institutions. The AIM Family of Funds--Registered Trademark-- is distributed nationwide. AIM is a subsidiary of AMVESCAP PLC, one of the world's largest independent financial services companies with $319 billion in assets under management. Data as of March 31, 2003. Mutual Retirement Annuities College Separately Offshore Alternative Cash Funds Products Savings Managed Products Investments Management Plans Accounts
[AIM INVESTMENTS LOGO APPEARS HERE] --SERVICEMARK-- YOUR GOALS. OUR SOLUTIONS. --SERVICEMARK-- AIMinvestments.com GLA-SAR-1 SEMIANNUAL REPORT TO SHAREHOLDERS / APRIL 30, 2003 AIM GLOBAL GROWTH FUND [COVER IMAGE] [AIM INVESTMENTS LOGO APPEARS HERE] --Servicemark-- Your Goals. Our Solutions. --Servicemark-- AIM Global Growth Fund seeks to provide long-term growth of capital. The fund seeks to meet its objective by investing at least 65% of its total assets in marketable equity securities of domestic and foreign issuers. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This report may be distributed only to shareholders or to persons who have received a current prospectus of the fund. FUND DATA ================================================================================ TOP COUNTRIES As of 4/30/03 [PIE CHART] UNITED STATES 39.3% OTHER 19.5% GERMANY 1.5% IRELAND 1.8% ITALY 1.9% ISRAEL 2.6% SPAIN 2.7% CANADA 3.6% FRANCE 7.4% JAPAN 7.7% UNITED KINGDOM 12.0% TOTAL NUMBER OF HOLDINGS* 117 TOTAL NET ASSETS $550.2 MILLION ================================================================================ ================================================================================ AVERAGE ANNUAL TOTAL RETURNS As of 4/30/03, including sales charges CLASS A SHARES Inception (9/15/94) 3.65% 5 Years -7.51 1 Year -21.34 CLASS B SHARES Inception (9/15/94) 3.72% 5 Years -7.45 1 Year -21.91 CLASS C SHARES Inception (8/4/97) -4.39% 5 Years -7.08 1 Year -18.61 In addition to returns as of the close of the reporting period, industry regulations require us to provide average annual total returns (including sales charges) as of 3/31/03, the most recent calendar quarter-end, which were: Class A shares, inception (9/15/94), 3.01%; five years, -8.30%; one year, -27.09%. Class B shares, inception (9/15/94), 3.08%; five years, -8.24%; one year, - -27.67%. Class C shares, inception (8/4/97), -5.40%; five years, -7.89%; one year, -24.61%. ================================================================================ ================================================================================ FUND VS. INDEXES Total Returns 10/31/02-4/30/03 excluding sales charges CLASS A SHARES -0.16% CLASS B SHARES -0.41 CLASS C SHARES -0.33 MSCI WORLD INDEX 3.62 (Broad Market Index and Style-Specific Index) LIPPER GLOBAL FUND INDEX 1.71 (Peer Group Index) Source: Lipper, Inc. Past performance cannot guarantee comparable future results. DUE TO SIGNIFICANT MARKET VOLATILITY, RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN. CALL YOUR FINANCIAL ADVISOR FOR MORE CURRENT PERFORMANCE. ================================================================================
============================================================================================================ TOP 10 EQUITY HOLDINGS* TOP 10 INDUSTRIES* ============================================================================================================ 1. Teva Pharmaceutical Industries Ltd.-ADR (Israel) 2.6% 1. Pharmaceuticals 10.3% 2. Microsoft Corp. 2.0 2. Banks 9.4 3. Royal Bank of Scotland Group PLC (United Kingdom) 2.0 3. Integrated Oil & Gas 5.4 4. Total S.A. (France) 1.9 4. Electronic Equipment & Instruments 3.8 5. Banco Popular Espanol S.A. (Spain) 1.8 5. Diversified Financial Services 3.8 6. Procter & Gamble Co. (The) 1.6 6. Systems Software 3.8 7. Reckitt Benckiser PLC (United Kingdom) 1.5 7. Household Products 3.0 8. Vodafone Group PLC (United Kingdom) 1.3 8. Automobile Manufacturers 2.4 9. Amgen Inc. 1.3 9. Semiconductors 2.2 10. Pfizer Inc. 1.3 10. Tobacco 2.2 *Excludes money market fund holdings. The fund's holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security. ============================================================================================================
ABOUT FUND INFORMATION THROUGHOUT THIS REPORT: o Unless otherwise stated, information presented here is as of 4/30/03 and is based on total net assets. o AIM Global Growth Fund's performance figures are historical, and they reflect fund expenses, the reinvestment of distributions and changes in net asset value. o When sales charges are included in performance figures, Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C 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 CDSC on Class C shares is 1% for the first year after purchase. The performance of the fund's share classes will differ due to different sales charge structures and class expenses. o International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values 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. o The fund's investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than their original cost. o In the Schedule of Investments in this report, the fund's portfolio holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o The unmanaged MSCI World Index is a group of global securities tracked by Morgan Stanley Capital International. o The unmanaged Lipper Global Fund Index represents an average of the performance of global funds tracked by Lipper, Inc., an independent mutual fund performance monitor. o A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not include sales charges. Performance of an index of funds reflects fund expenses. Performance of a market index does not. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, aiminvestments.com. For more information, please visit aiminvestments.com. TO OUR SHAREHOLDERS DEAR SHAREHOLDER: [PHOTO OF This is the report on AIM Global Growth Fund for the six ROBERT H. months ended April 30, 2003. You will note that we have GRAHAM] adopted a more concise format for our semiannual reports. Important information such as top holdings and performance ON THE CURRENCY as of the close of the reporting period appear on the FRONT, THE U.S. opposite page. This letter will provide an overview of the DOLLAR WAS WEAK markets and your fund during the six months covered by this COMPARED TO MANY report. As always, timely information about your fund and FOREIGN CURRENCIES. the markets in general is available at our Web site, ROBERT H. GRAHAM aiminvestments.com. MARKET CONDITIONS In U.S. markets, positive performance during March and April 2003 enabled major stock market indexes to post gains for the reporting period. For example, the unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500), an index of common stocks frequently used as a general measure of U.S. stock market performance, returned 4.47% for the six months ended April 30, 2003. Year to date as of April 30, consumer discretionary, information technology and financials were among the better-performing sectors of the S&P 500, while telecommunications services was the worst. Generally, mid- and small-cap stocks out-performed large-cap stocks, and the value investment style outperformed the growth investment style during the six-month reporting period. International markets, as measured by the unmanaged MSCI Europe, Australasia and the Far East Index (the EAFE(R)), a group of foreign securities tracked by Morgan Stanley Capital International, produced negative returns for the first quarter of 2003. International markets, however, rallied in April. This rally helped push international market returns into positive territory for the six-month reporting period. European markets rallied toward the close of the reporting period, with the MSCI (Morgan Stanley Capital International) Europe Index, often considered representative of the European equity market, gaining 13.49% in April. In European monetary affairs, the European Central Bank (ECB) cut its benchmark interest rate 25 basis points to 2.50% in March. It remained at that level as the reporting period closed. As widely discussed, in Asia, the epidemic of severe acute respiratory syndrome (SARS) dealt a blow to local economies. However, the MSCI All Country (AC) Asia Pacific Free ex-Japan Index, a group of developed and emerging Asian and Asia-Pacific markets (except Japan) covered by Morgan Stanley Capital International, rallied in April and was positive for the six-month reporting period. On the currency front, the U.S. dollar was weak compared to many foreign currencies. In particular, the euro showed strength as it appreciated nearly 13% against the dollar during the reporting period. Other notable currencies that gained ground on the dollar included the Australian dollar, Swiss franc, British pound and Canadian dollar. YOUR FUND Throughout the reporting period, fund managers Kirk L. Anderson, Clas G. Olsson and Barrett K. Sides sought to identify companies that, in their view, have the potential for above-average long-term growth in earnings and prospects for future growth. At the end of the six-month reporting period, the fund's largest exposure was to companies in North America, followed by Europe and Asia. As of April 30, 2003, the fund had its largest exposure in the information technology, healthcare and financials sectors. Over the course of the reporting period, the fund's exposure to consumer staples and telecommunications services sectors increased, while its weighting in consumer discretionary and industrials sectors decreased. AIM Global Growth Fund had 117 equity holdings at the end of the reporting period. We encourage you to visit aiminvestments.com for a wealth of information about your fund, including regular performance updates, quarterly details of portfolio composition, and much more. From our home page, click on Products & Performance, then Mutual Funds, and then select the type of information you wish to view. IN CLOSING I thank you for your continued participation in AIM Global Growth Fund, and I look forward to reporting to you again in six months. If you have any questions, please consult your financial advisor to help you with your investment choices. As always, members of our award-winning Client Services department are ready to help. They can be reached at 800-959-4246. Sincerely, /s/ ROBERT H. GRAHAM Robert H. Graham Chairman April 30, 2003 FINANCIALS SCHEDULE OF INVESTMENTS April 30, 2003 (Unaudited)
MARKET SHARES VALUE - ------------------------------------------------------------------------ DOMESTIC STOCKS-39.07% AEROSPACE & DEFENSE-0.56% United Technologies Corp. 50,000 $ 3,090,500 ======================================================================== APPAREL RETAIL-0.51% Gap, Inc. (The) 170,000 2,827,100 ======================================================================== BANKS-0.74% Bank of America Corp. 55,000 4,072,750 ======================================================================== BIOTECHNOLOGY-1.35% Amgen Inc.(a) 121,000 7,418,510 ======================================================================== BREWERS-0.77% Anheuser-Busch Cos., Inc. 85,000 4,239,800 ======================================================================== BROADCASTING & CABLE TV-0.53% Clear Channel Communications, Inc.(a) 75,000 2,933,250 ======================================================================== COMPUTER HARDWARE-1.75% Dell Computer Corp.(a) 180,000 5,203,800 - ------------------------------------------------------------------------ International Business Machines Corp. 52,000 4,414,800 ======================================================================== 9,618,600 ======================================================================== COMPUTER STORAGE & PERIPHERALS-0.56% EMC Corp.(a) 340,000 3,090,600 ======================================================================== DATA PROCESSING SERVICES-1.67% First Data Corp. 140,000 5,492,200 - ------------------------------------------------------------------------ Fiserv, Inc.(a) 125,000 3,680,000 ======================================================================== 9,172,200 ======================================================================== DIVERSIFIED COMMERCIAL SERVICES-0.79% Apollo Group, Inc.-Class A(a) 80,000 4,335,920 ======================================================================== DIVERSIFIED FINANCIAL SERVICES-3.77% Citigroup Inc. 152,000 5,966,000 - ------------------------------------------------------------------------ Fannie Mae 40,000 2,895,600 - ------------------------------------------------------------------------ Goldman Sachs Group, Inc. (The) 58,000 4,402,200 - ------------------------------------------------------------------------ J.P. Morgan Chase & Co. 130,000 3,815,500 - ------------------------------------------------------------------------ SLM Corp. 32,500 3,640,000 ======================================================================== 20,719,300 ======================================================================== FOOD DISTRIBUTORS-0.26% SYSCO Corp. 50,000 1,436,500 ======================================================================== FOOTWEAR-0.53% NIKE, Inc.-Class B 55,000 2,944,150 ========================================================================
MARKET SHARES VALUE - ------------------------------------------------------------------------ GENERAL MERCHANDISE STORES-0.82% Wal-Mart Stores, Inc. 80,000 $ 4,505,600 ======================================================================== HEALTH CARE EQUIPMENT-2.03% Boston Scientific Corp.(a) 105,000 4,520,250 - ------------------------------------------------------------------------ Medtronic, Inc. 80,000 3,819,200 - ------------------------------------------------------------------------ Zimmer Holdings, Inc.(a) 60,000 2,814,000 ======================================================================== 11,153,450 ======================================================================== HOME IMPROVEMENT RETAIL-0.52% Lowe's Cos., Inc. 65,000 2,852,850 ======================================================================== HOUSEHOLD PRODUCTS-1.55% Procter & Gamble Co. (The) 95,000 8,535,750 ======================================================================== INDUSTRIAL CONGLOMERATES-1.36% 3M Co. 30,000 3,781,200 - ------------------------------------------------------------------------ General Electric Co. 125,000 3,681,250 ======================================================================== 7,462,450 ======================================================================== INTEGRATED OIL & GAS-0.70% Exxon Mobil Corp. 110,000 3,872,000 ======================================================================== INTERNET RETAIL-1.60% Amazon.com, Inc.(a) 130,000 3,727,100 - ------------------------------------------------------------------------ eBay Inc.(a) 55,000 5,102,350 ======================================================================== 8,829,450 ======================================================================== INTERNET SOFTWARE & SERVICES-0.74% Yahoo! Inc.(a) 165,000 4,088,700 ======================================================================== MANAGED HEALTH CARE-1.51% Aetna Inc. 79,500 3,959,100 - ------------------------------------------------------------------------ UnitedHealth Group Inc. 47,000 4,330,110 ======================================================================== 8,289,210 ======================================================================== NETWORKING EQUIPMENT-0.52% Cisco Systems, Inc.(a) 190,000 2,857,600 ======================================================================== PERSONAL PRODUCTS-0.79% Avon Products, Inc. 75,000 4,362,750 ======================================================================== PHARMACEUTICALS-3.91% Allergan, Inc. 40,000 2,810,000 - ------------------------------------------------------------------------ Forest Laboratories, Inc.(a) 80,000 4,137,600 - ------------------------------------------------------------------------ Johnson & Johnson 73,000 4,114,280 - ------------------------------------------------------------------------ Pfizer Inc. 235,000 7,226,250 - ------------------------------------------------------------------------
F-1
MARKET SHARES VALUE - ------------------------------------------------------------------------ PHARMACEUTICALS-(CONTINUED) Wyeth 74,000 $ 3,221,220 ======================================================================== 21,509,350 ======================================================================== PUBLISHING-0.49% Tribune Co. 55,000 2,693,900 ======================================================================== SEMICONDUCTOR EQUIPMENT-0.99% Applied Materials, Inc.(a) 200,000 2,920,000 - ------------------------------------------------------------------------ Novellus Systems, Inc.(a) 90,000 2,523,600 ======================================================================== 5,443,600 ======================================================================== SEMICONDUCTORS-2.24% Analog Devices, Inc.(a) 110,000 3,643,200 - ------------------------------------------------------------------------ Linear Technology Corp. 165,000 5,687,550 - ------------------------------------------------------------------------ Xilinx, Inc.(a) 110,000 2,977,700 ======================================================================== 12,308,450 ======================================================================== SPECIALTY STORES-1.29% Bed Bath & Beyond Inc.(a) 110,000 4,346,100 - ------------------------------------------------------------------------ Staples, Inc.(a) 145,000 2,760,800 ======================================================================== 7,106,900 ======================================================================== SYSTEMS SOFTWARE-3.76% Microsoft Corp. 420,000 10,739,400 - ------------------------------------------------------------------------ Oracle Corp.(a) 350,000 4,158,000 - ------------------------------------------------------------------------ Symantec Corp.(a) 61,500 2,702,925 - ------------------------------------------------------------------------ VERITAS Software Corp.(a) 140,000 3,081,400 ======================================================================== 20,681,725 ======================================================================== WIRELESS TELECOMMUNICATION SERVICES-0.46% AT&T Wireless Services Inc.(a) 390,000 2,519,400 ======================================================================== Total Domestic Stocks (Cost $199,598,430) 214,972,315 ======================================================================== FOREIGN STOCKS & OTHER EQUITY INTERESTS-50.63% AUSTRALIA-1.19% BHP Billiton Ltd. (Diversified Metals & Mining) 702,000 3,976,136 - ------------------------------------------------------------------------ BHP Steel Ltd. (Steel) 112,800 239,588 - ------------------------------------------------------------------------ Coca-Cola Amatil Ltd. (Soft Drinks) 656,000 2,338,686 ======================================================================== 6,554,410 ======================================================================== BERMUDA-1.29% Accenture Ltd.-Class A (IT Consulting & Services)(a) 175,000 2,803,500 - ------------------------------------------------------------------------ Nabors Industries, Ltd. (Oil & Gas Drilling)(a) 110,000 4,312,000 ======================================================================== 7,115,500 ========================================================================
MARKET SHARES VALUE - ------------------------------------------------------------------------ BRAZIL-0.49% Companhia de Bebidas das Americas-ADR (Brewers) 135,600 2,697,084 ======================================================================== CANADA-3.61% EnCana Corp. (Oil & Gas Exploration & Production) 65,000 $ 2,131,452 - ------------------------------------------------------------------------ Loblaw Cos. Ltd. (Food Retail) (Acquired 11/13/02-11/14/02; Cost $2,915,652)(b) 80,000 3,125,000 - ------------------------------------------------------------------------ Manulife Financial Corp. (Life & Health Insurance) 64,000 1,707,143 - ------------------------------------------------------------------------ Petro-Canada (Integrated Oil & Gas) 73,000 2,407,024 - ------------------------------------------------------------------------ Royal Bank of Canada (Banks) 127,700 5,326,772 - ------------------------------------------------------------------------ Suncor Energy, Inc. (Integrated Oil & Gas) 313,600 5,160,312 ======================================================================== 19,857,703 ======================================================================== CAYMAN ISLANDS-0.56% Noble Corp. (Oil & Gas Drilling)(a) 100,000 3,095,000 ======================================================================== DENMARK-0.38% Novo Nordisk A.S.-Class B (Pharmaceuticals) 57,505 2,085,427 ======================================================================== FRANCE-7.37% Aventis S.A. (Pharmaceuticals) 62,200 3,165,030 - ------------------------------------------------------------------------ BNP Paribas S.A. (Banks) 84,910 3,993,087 - ------------------------------------------------------------------------ Pernod-Ricard S.A. (Distillers & Vinters) 67,420 5,928,818 - ------------------------------------------------------------------------ PSA Peugeot Citroen (Automobile Manufacturers) 46,750 2,192,253 - ------------------------------------------------------------------------ Renault S.A. (Automobile Manufacturers)(a) 56,370 2,442,308 - ------------------------------------------------------------------------ Sanofi-Synthelabo S.A. (Pharmaceuticals) 96,800 5,785,005 - ------------------------------------------------------------------------ Societe Generale-Class A (Banks) 30,650 1,877,983 - ------------------------------------------------------------------------ Total S.A. (Integrated Oil & Gas) 77,859 10,228,862 - ------------------------------------------------------------------------ Vinci S.A. (Construction & Engineering) 75,750 4,942,016 ======================================================================== 40,555,362 ======================================================================== GERMANY-1.47% Altana A.G. (Pharmaceuticals) 105,855 5,221,888 - ------------------------------------------------------------------------ Porsche A.G.-Pfd. (Automobile Manufacturers) 7,770 2,866,920 ======================================================================== 8,088,808 ======================================================================== HONG KONG-0.68% Cheung Kong (Holdings) Ltd. (Real Estate Management & Development) 440,000 2,431,578 - ------------------------------------------------------------------------ Sun Hung Kai Properties Ltd. (Real Estate Management & Development) 277,000 1,299,927 ======================================================================== 3,731,505 ======================================================================== INDIA-0.40% Infosys Technologies Ltd.-ADR (IT Consulting & Services) 53,500 2,198,850 ========================================================================
F-2
MARKET SHARES VALUE - ------------------------------------------------------------------------ IRELAND-1.81% Allied Irish Banks PLC (Banks) 245,442 $ 3,773,395 - ------------------------------------------------------------------------ Bank of Ireland (Banks) 505,800 6,192,608 ======================================================================== 9,966,003 ======================================================================== ISRAEL-2.64% Teva Pharmaceutical Industries Ltd.-ADR (Pharmaceuticals) 310,900 14,519,030 ======================================================================== ITALY-1.90% Eni S.p.A. (Integrated Oil & Gas) 467,200 6,670,746 - ------------------------------------------------------------------------ UniCredito Italiano S.p.A. (Banks) 864,700 3,789,939 ======================================================================== 10,460,685 ======================================================================== JAPAN-7.66% Canon Inc. (Office Electronics) 169,000 6,851,832 - ------------------------------------------------------------------------ Fujisawa Pharmaceutical Co. Ltd. (Pharmaceuticals) (Acquired 09/07/01; Cost $3,003,358)(b) 154,000 2,616,679 - ------------------------------------------------------------------------ Hirose Electric Co., Ltd. (Electronic Equipment & Instruments) 44,000 3,157,000 - ------------------------------------------------------------------------ Hoya Corp. (Electronic Equipment & Instruments) 102,000 6,048,702 - ------------------------------------------------------------------------ Keyence Corp. (Electronic Equipment & Instruments) 33,330 5,374,405 - ------------------------------------------------------------------------ Nitto Denko Corp. (Specialty Chemicals) 191,100 5,513,505 - ------------------------------------------------------------------------ Ricoh Co., Ltd. (Office Electronics) 328,000 5,046,154 - ------------------------------------------------------------------------ Toyota Motor Corp. (Automobile Manufacturers) 250,200 5,682,298 - ------------------------------------------------------------------------ Trend Micro Inc. (Application Software)(a) 150,100 1,830,719 ======================================================================== 42,121,294 ======================================================================== MEXICO-1.01% Telefonos de Mexico S.A. de C.V.-Series L-ADR (Integrated Telecommunications Services) 69,800 2,108,658 - ------------------------------------------------------------------------ Wal-Mart de Mexico S.A. de C.V.-Series C (General Merchandise Stores) 1,350,600 3,447,389 ======================================================================== 5,556,047 ======================================================================== NETHERLANDS-0.76% Koninklijke (Royal) KPN N.V. (Integrated Telecommunications Services)(a) 629,600 4,195,576 ======================================================================== PORTUGAL-0.48% Portugal Telecom, SGPS, S.A. (Integrated Telecommunications Services) 370,100 2,652,514 ======================================================================== SOUTH KOREA-1.19% Samsung Electronics Co., Ltd. (Electronic Equipment & Instruments)(a) 26,100 6,554,549 ========================================================================
MARKET SHARES VALUE - ------------------------------------------------------------------------ SPAIN-2.72% Altadis, S.A. (Tobacco) 202,600 $ 5,232,775 - ------------------------------------------------------------------------ Banco Popular Espanol S.A. (Banks) 199,700 9,699,482 ======================================================================== 14,932,257 ======================================================================== SWITZERLAND-1.07% Alcon, Inc. (Health Care Supplies)(a) 79,000 3,479,950 - ------------------------------------------------------------------------ UBS A.G. (Banks) 50,330 2,391,623 ======================================================================== 5,871,573 ======================================================================== UNITED KINGDOM-11.95% AstraZeneca PLC (Pharmaceuticals) 41,600 1,633,895 - ------------------------------------------------------------------------ Centrica PLC (Gas Utilities) 1,893,300 5,035,706 - ------------------------------------------------------------------------ Imperial Tobacco Group PLC (Tobacco) 409,000 6,850,926 - ------------------------------------------------------------------------ Next PLC (Department Stores) 242,500 3,660,437 - ------------------------------------------------------------------------ Reckitt Benckiser PLC (Household Products) 456,450 8,058,326 - ------------------------------------------------------------------------ Rentokil Initial PLC (Diversified Commercial Services) 918,900 2,749,091 - ------------------------------------------------------------------------ Royal Bank of Scotland Group PLC (Banks) 408,900 10,735,072 - ------------------------------------------------------------------------ Shell Transport & Trading Co. PLC (Integrated Oil & Gas) 182,940 1,096,805 - ------------------------------------------------------------------------ Smith & Nephew PLC (Health Care Supplies) 1,020,025 6,809,048 - ------------------------------------------------------------------------ Tesco PLC (Food Retail) 1,535,400 4,863,691 - ------------------------------------------------------------------------ Unilever PLC (Packaged Foods & Meats) 691,200 6,800,770 - ------------------------------------------------------------------------ Vodafone Group PLC (Wireless Telecommunication Services) 3,758,200 7,425,507 ======================================================================== 65,719,274 ======================================================================== Total Foreign Stocks & Other Equity Interests (Cost $256,699,034) 278,528,451 ======================================================================== PRINCIPAL AMOUNT U.S. TREASURY BILL-0.18% 1.10%, 06/19/03 (Cost $998,503)(c) $1,000,000(d) 998,503 ======================================================================== SHARES MONEY MARKET FUNDS-9.78% STIC Liquid Assets Portfolio(e) 26,897,649 26,897,649 - ------------------------------------------------------------------------ STIC Prime Portfolio(e) 26,897,649 26,897,649 ======================================================================== Total Money Market Funds (Cost $53,795,298) 53,795,298 ======================================================================== TOTAL INVESTMENTS-99.66% (excluding investments purchased with cash collateral from securities loaned) (Cost $511,091,265) 548,294,567 ========================================================================
F-3
MARKET SHARES VALUE - ------------------------------------------------------------------------ INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS-11.70% STIC Liquid Assets Portfolio(e)(f) 64,398,136 $ 64,398,136 ======================================================================== Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $64,398,136) 64,398,136 ======================================================================== TOTAL INVESTMENTS-111.36% (Cost $575,489,401) 612,692,703 ======================================================================== OTHER ASSETS LESS LIABILITIES-(11.36%) (62,519,163) ======================================================================== NET ASSETS-100.00% $550,173,540 ________________________________________________________________________ ========================================================================
Investment Abbreviations: ADR - American Depositary Receipt Pfd. - Preferred
Notes to Schedule of Investments: (a) Non-income producing security. (b) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction); the security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at 04/30/03 was $5,741,679, which represented 1.04% of the Fund's net assets. These securities are not considered to be illiquid. (c) Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. (d) A portion of the principal balance was pledged as collateral to cover margin requirements for open futures contracts. See Note 1 Section H and 10. (e) The money market fund and the Fund are affiliated by having the same investment advisor. (f) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Notes to Financial Statements. F-4 STATEMENT OF ASSETS AND LIABILITIES April 30, 2003 (Unaudited) ASSETS: Investments, at market value (cost $575,489,401)* $ 612,692,703 - ------------------------------------------------------------ Foreign currencies, at value (cost $116,439) 115,170 - ------------------------------------------------------------ Receivables for: Investments sold 9,804,005 - ------------------------------------------------------------ Capital stock sold 2,021,884 - ------------------------------------------------------------ Dividends and interest 1,344,098 - ------------------------------------------------------------ Due from advisor -- See Note 2 24,370 - ------------------------------------------------------------ Investment for deferred compensation plan 41,045 - ------------------------------------------------------------ Other assets 24,576 ============================================================ Total assets 626,067,851 ____________________________________________________________ ============================================================ LIABILITIES: Payables for: Investments purchased 3,784,747 - ------------------------------------------------------------ Capital stock reacquired 6,594,832 - ------------------------------------------------------------ Deferred compensation plan 41,045 - ------------------------------------------------------------ Collateral upon return of securities loaned 64,398,136 - ------------------------------------------------------------ Accrued distribution fees 352,079 - ------------------------------------------------------------ Accrued directors' fees 979 - ------------------------------------------------------------ Accrued transfer agent fees 487,309 - ------------------------------------------------------------ Accrued operating expenses 235,184 ============================================================ Total liabilities 75,894,311 ============================================================ Net assets applicable to shares outstanding $ 550,173,540 ____________________________________________________________ ============================================================ NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $ 983,035,163 - ------------------------------------------------------------ Undistributed net investment income (loss) (2,537,377) - ------------------------------------------------------------ Undistributed net realized gain (loss) from investment securities, foreign currencies, futures contracts and option contracts (468,104,658) - ------------------------------------------------------------ Unrealized appreciation of investment securities, foreign currencies, futures contracts and option contracts 37,780,412 ============================================================ $ 550,173,540 ____________________________________________________________ ============================================================ NET ASSETS: Class A $ 344,706,433 ____________________________________________________________ ============================================================ Class B $ 174,237,777 ____________________________________________________________ ============================================================ Class C $ 31,229,330 ____________________________________________________________ ============================================================ CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 27,262,074 ____________________________________________________________ ============================================================ Class B: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 14,457,336 ____________________________________________________________ ============================================================ Class C: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 2,589,781 ____________________________________________________________ ============================================================ Class A: Net asset value per share $ 12.64 - ------------------------------------------------------------ Offering price per share: (Net asset value of $12.64 divided by 95.25%) $ 13.27 ____________________________________________________________ ============================================================ Class B: Net asset value and offering price per share $ 12.05 ____________________________________________________________ ============================================================ Class C: Net asset value and offering price per share $ 12.06 ____________________________________________________________ ============================================================
* At April 30, 2003, securities with an aggregate market value of $61,980,603 were on loan to brokers. See Notes to Financial Statements. F-5 STATEMENT OF OPERATIONS For the six months ended April 30, 2003 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding tax of $297,300) $ 3,209,347 - -------------------------------------------------------------------------- Dividends from affiliated money market funds 182,101 - -------------------------------------------------------------------------- Interest 5,533 - -------------------------------------------------------------------------- Security lending income 174,520 ========================================================================== Total investment income 3,571,501 ========================================================================== EXPENSES: Advisory fees 2,267,843 - -------------------------------------------------------------------------- Administrative services fees 68,465 - -------------------------------------------------------------------------- Custodian fees 160,527 - -------------------------------------------------------------------------- Distribution fees -- Class A 793,032 - -------------------------------------------------------------------------- Distribution fees -- Class B 923,934 - -------------------------------------------------------------------------- Distribution fees -- Class C 158,052 - -------------------------------------------------------------------------- Transfer agent fees 1,481,019 - -------------------------------------------------------------------------- Directors' fees 5,855 - -------------------------------------------------------------------------- Other 213,358 ========================================================================== Total expenses 6,072,085 ========================================================================== Less: Fees waived, expenses reimbursed and expenses paid indirectly (31,363) ========================================================================== Net expenses 6,040,722 ========================================================================== Net investment income (loss) (2,469,221) ========================================================================== REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES, FOREIGN CURRENCIES, FUTURES CONTRACTS AND OPTION CONTRACTS: Net realized gain (loss) from: Investment securities (23,720,349) - -------------------------------------------------------------------------- Foreign currencies 309,228 - -------------------------------------------------------------------------- Futures contracts 70,586 - -------------------------------------------------------------------------- Option contracts written 313,095 ========================================================================== (23,027,440) ========================================================================== Change in net unrealized appreciation (depreciation) of: Investment securities 22,777,369 - -------------------------------------------------------------------------- Foreign currencies 58,015 - -------------------------------------------------------------------------- Futures contracts 491,790 - -------------------------------------------------------------------------- Option contracts written (7,821) ========================================================================== 23,319,353 ========================================================================== Net gain from investment securities, foreign currencies, futures contracts and option contracts 291,913 ========================================================================== Net increase (decrease) in net assets resulting from operations $ (2,177,308) __________________________________________________________________________ ==========================================================================
See Notes to Financial Statements. F-6 STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2003 and the year ended October 31, 2002 (Unaudited)
APRIL 30, OCTOBER 31, 2003 2002 - --------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ (2,469,221) $ (7,462,645) - --------------------------------------------------------------------------------------------- Net realized gain (loss) from investment securities, foreign currencies, futures contracts and option contracts (23,027,440) (100,653,432) - --------------------------------------------------------------------------------------------- Change in net unrealized appreciation of investment securities, foreign currencies, futures contracts and option contracts 23,319,353 18,740,463 ============================================================================================= Net increase (decrease) in net assets resulting from operations (2,177,308) (89,375,614) ============================================================================================= Share transactions-net: Class A 9,156,196 (52,935,575) - --------------------------------------------------------------------------------------------- Class B (30,379,957) (129,582,901) - --------------------------------------------------------------------------------------------- Class C (3,346,348) (11,592,089) ============================================================================================= Net increase (decrease) in net assets resulting from share transactions (24,570,109) (194,110,565) ============================================================================================= Net increase (decrease) in net assets (26,747,417) (283,486,179) ============================================================================================= NET ASSETS: Beginning of period 576,920,957 860,407,136 ============================================================================================= End of period $ 550,173,540 $ 576,920,957 _____________________________________________________________________________________________ =============================================================================================
See Notes to Financial Statements. F-7 NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM Global Growth 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 series management investment company consisting of six separate portfolios. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be 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 long-term growth of capital. Companies are listed in the Schedule of Investments based on the country in which they are organized. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued at the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors of the Company. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Occasionally, events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not be reflected in the computation of the Fund's net asset value. If a development/event is so significant that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Directors. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes. D. 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 gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. E. FOREIGN CURRENCY TRANSLATIONS -- Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from F-8 changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. 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. G. COVERED CALL OPTIONS -- The Fund may write call options, on a covered basis; that is, the Fund will own the underlying security. When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability. The amount of the liability is subsequently "marked-to-market" to reflect the current market value of the option written. The current market value of a written option is the mean between the last bid and asked prices on that day. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. H. FUTURES CONTRACTS -- The Fund may purchase or sell futures contracts as a hedge against changes in market conditions. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are made or received depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. Risks also include to varying degrees, the risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. I. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses are charged to each class pursuant to a transfer agency and service agreement adopted by the Fund with respect to such class. All other expenses are allocated among the classes based on relative net assets. 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 investment advisory agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.85% of the first $1 billion of the Fund's average daily net assets, plus 0.80% of the Fund's average daily net assets in excess of $1 billion. AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds in which the Fund has invested (excluding investments made in affiliated money market funds with cash collateral from securities loaned by the Fund). For the six months ended April 30, 2003, AIM waived fees of $2,956. Under an agreement to limit the aggregate costs of certain shareholder services provided by third party administrators, a receivable of $24,370 has been recorded for the estimated amount which AIM reimbursed to the Fund on June 27, 2003. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2003, AIM was paid $68,465 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and shareholder services to the Fund. During the six months ended April 30, 2003, AFS retained $800,472 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, Class B and Class C shares of the Fund. The Company has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares, Class B shares and Class C shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays AIM Distributors compensation at the annual rate of 0.50% of the Fund's average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of these amounts, the Fund may pay a service fee of 0.25% of the average daily net assets of the Class A, Class B or Class C shares to selected dealers and financial institutions who furnish continuing personal shareholder services to their customers who purchase and own the appropriate class of shares of the Fund. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the six months ended April 30, 2003, the Class A, Class B and Class C shares paid $793,032, $923,934 and $158,052, respectively. Front-end sales commissions and contingent deferred sales charges (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. Contingent deferred sales charges ("CDSCs") are deducted from redemption proceeds prior to remittance to the shareholder. During six months ended April 30, 2003, AIM Distributors retained $25,074 in front-end sales commissions from the sale of Class A shares and $25,910, $48 F-9 and $71,302 for Class A, Class B Class C shares, respectively, for CDSCs imposed upon redemptions by shareholders. Certain officers and directors of the Company are officers and directors of AIM, AFS and/or AIM Distributors. During the six months ended April 30, 2003, the Fund paid legal fees of $1,800 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Company's directors. A member of that firm is a director of the Company. NOTE 3--INDIRECT EXPENSES For the six months ended April 30, 2003, the Fund received reductions in transfer agency fees from AFS (an affiliate of AIM) of $4,037 under an expense offset arrangement which resulted in a reduction of the Fund's total expenses of $4,037. NOTE 4--DIRECTORS' FEES Directors' fees represent remuneration paid to each director who is not an "interested person" of AIM. Directors have the option to defer compensation payable by the Company. The Directors deferring compensation have the option to select various AIM Funds in which all or part of their deferral accounts shall be deemed to be invested. NOTE 5--BORROWINGS AIM has established an interfund lending facility for temporary borrowings by the AIM Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. During the reporting period, the Fund was a participant in a committed line of credit facility with a syndicate administered by Citibank, N.A. The Fund could borrow up to the lesser of (i) $500,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which were parties to the line of credit could borrow on a first come, first served basis. The funds which were party to the line of credit were charged a commitment fee of 0.09% on the unused balance of the committed line. The commitment fee was allocated among the funds based on their respective average net assets for the period. The committed line of credit facility expired May 20, 2003. During the six months ended April 30, 2003, the Fund did not borrow under the interfund lending or the committed line of credit facility. NOTE 6--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities to the extent of one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value, determined daily, of the loaned securities. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral pursuant to these loans is invested in short-term money market instruments or affiliated money market funds. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral may be temporarily less than the value of the securities on loan. At April 30, 2003, securities with an aggregate value of $61,980,603 were on loan to brokers. The loans were secured by cash collateral of $64,398,136 received by the Fund and invested in an affiliated money market fund. For the six months ended April 30, 2003, the Fund received fees of $174,520 for securities lending. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of distributable earnings will be updated at the Fund's fiscal year-end. The Fund has a capital loss carryforward for tax purposes which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD - ---------------------------------------------------------- October 31, 2009 $339,470,549 - ---------------------------------------------------------- October 31, 2010 101,042,257 ========================================================== Total capital loss carryforward $440,512,806 __________________________________________________________ ==========================================================
NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended April 30, 2003 was $222,698,051 and $278,510,036, respectively. The amount of unrealized appreciation (depreciation) of investment securities, for tax purposes, as of April 30, 2003 is as follows: Aggregate unrealized appreciation of investment securities $ 54,960,618 - ----------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (18,927,854) =========================================================== Net unrealized appreciation of investment securities $ 36,032,764 ___________________________________________________________ =========================================================== Cost of investments for tax purposes is $576,659,939.
NOTE 9--CALL OPTION CONTRACTS Transactions in call options written during the six months ended April 30, 2003 are summarized as follows:
CALL OPTION CONTRACTS ---------------------- NUMBER OF PREMIUMS CONTRACTS RECEIVED - ---------------------------------------------------------- Beginning of period 260 $ 65,671 - ---------------------------------------------------------- Written 4,190 870,709 - ---------------------------------------------------------- Closed (2,080) (541,172) - ---------------------------------------------------------- Exercised (2,370) (395,208) ========================================================== End of period -- $ -- __________________________________________________________ ==========================================================
F-10 NOTE 10--FUTURES CONTRACTS On April 30, 2003, $480,000 principal amount of U.S. Treasury obligations were pledged as collateral to cover margin requirements for open futures contracts. Open futures contracts as of April 30, 2003 were as follows:
NO. OF MONTH/ MARKET UNREALIZED CONTRACT CONTRACTS COMMITMENT VALUE APPRECIATION - ------------------------------------------------------------------------------------------------------------------ S&P 500 Index 30 Jun.-03/Long $6,870,750 $491,790 __________________________________________________________________________________________________________________ ==================================================================================================================
NOTE 11--CAPITAL STOCK The Fund currently offers three different classes of shares: Class A shares, Class B shares and Class C shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with a CDSC. Under some circumstances, Class A shares are subject to CDSCs. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Changes in capital stock outstanding during the six months ended April 30, 2003 and the year ended October 31, 2002 were as follows:
SIX MONTH ENDED YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ---------------------------- ---------------------------- SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Sold: Class A 28,079,640 $ 347,160,275 34,069,111 $ 487,124,735 - -------------------------------------------------------------------------------------------------------------------------- Class B 392,053 4,619,928 1,053,636 14,789,675 - -------------------------------------------------------------------------------------------------------------------------- Class C 583,673 6,883,565 1,832,747 23,276,761 ========================================================================================================================== Conversion of Class B shares to Class A shares: Class A 452,531 5,589,208 2,493,588 36,815,557 - -------------------------------------------------------------------------------------------------------------------------- Class B (474,200) (5,589,208) (2,576,415) (36,815,557) ========================================================================================================================== Reacquired: Class A (27,815,014) (343,593,287) (40,176,531) (576,875,867) - -------------------------------------------------------------------------------------------------------------------------- Class B (2,509,268) (29,410,677) (7,795,399) (107,557,019) - -------------------------------------------------------------------------------------------------------------------------- Class C (868,011) (10,229,913) (2,644,180) (34,868,850) ========================================================================================================================== (2,158,596) $ (24,570,109) (13,743,443) $(194,110,565) __________________________________________________________________________________________________________________________ ==========================================================================================================================
F-11 NOTE 12--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
CLASS A ----------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------ 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.66 $ 14.58 $ 24.83 $ 23.43 $ 17.91 $ 16.65 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.04)(a) (0.11)(a) (0.13) (0.03)(a) (0.10) (0.05) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.02 (1.81) (10.08) 2.77 6.12 1.74 ================================================================================================================================= Total from investment operations (0.02) (1.92) (10.21) 2.74 6.02 1.69 ================================================================================================================================= Less distributions from net realized gains -- -- (0.04) (1.34) (0.50) (0.43) ================================================================================================================================= Net asset value, end of period $ 12.64 $ 12.66 $ 14.58 $ 24.83 $ 23.43 $ 17.91 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) (0.16)% (13.17)% (41.17)% 11.52% 34.43% 10.43% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $344,706 $335,954 $439,612 $796,992 $388,549 $219,050 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets 2.07%(c) 1.95% 1.68%(d) 1.62%(d) 1.67% 1.70% ================================================================================================================================= Ratio of net investment income (loss) to average net assets (0.72)%(c) (0.75)% (0.66)% (0.10)% (0.57)% (0.27)% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 44% 98% 134% 110% 93% 97% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $319,841,694. (d) After fee waivers. Ratio of expenses to average net assets prior to fee waivers were 1.79% and 1.63% for fiscal year ended 2001 and 2000, respectively. (e) Not annualized for periods less than one year.
CLASS B ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.09 $ 14.00 $ 23.98 $ 22.78 $ 17.52 $ 16.39 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.07)(a) (0.17)(a) (0.24) (0.17)(a) (0.23)(a) (0.15)(a) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.03 (1.74) (9.70) 2.71 5.99 1.71 ================================================================================================================================= Total from investment operations (0.04) (1.91) (9.94) 2.54 5.76 1.56 ================================================================================================================================= Less distributions from net realized gains -- -- (0.04) (1.34) (0.50) (0.43) ================================================================================================================================= Net asset value, end of period $ 12.05 $ 12.09 $ 14.00 $ 23.98 $ 22.78 $ 17.52 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) (0.33)% (13.64)% (41.50)% 10.95% 33.69% 9.78% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $174,238 $206,189 $369,171 $806,409 $425,345 $282,456 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets 2.57%(c) 2.45% 2.19%(d) 2.16%(d) 2.23% 2.26% ================================================================================================================================= Ratio of net investment income (loss) to average net assets (1.22)%(c) (1.25)% (1.16)% (0.64)% (1.13)% (0.83)% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 44% 98% 134% 110% 93% 97% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $186,318,099. (d) After fee waivers. Ratio of expenses to average net assets prior to fee waivers were 2.30% and 2.17% for fiscal year ended 2001 and 2000, respectively. (e) Not annualized for periods less than one year. F-12 NOTE 12--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS C -------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.10 $ 14.01 $ 23.98 $ 22.79 $ 17.52 $ 16.39 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.07)(a) (0.17)(a) (0.22) (0.17)(a) (0.23)(a) (0.15)(a) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.03 (1.74) (9.71) 2.70 6.00 1.71 ================================================================================================================================= Total from investment operations (0.04) (1.91) (9.93) 2.53 5.77 1.56 ================================================================================================================================= Less distributions from net realized gains -- -- (0.04) (1.34) (0.50) (0.43) ================================================================================================================================= Net asset value, end of period $ 12.06 $ 12.10 $ 14.01 $ 23.98 $ 22.79 $ 17.52 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) (0.33)% (13.63)% (41.46)% 10.90% 33.69% 9.78% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $31,229 $34,778 $51,624 $88,810 $31,356 $11,765 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets 2.57%(c) 2.45% 2.19%(d) 2.16%(d) 2.23% 2.26% ================================================================================================================================= Ratio of net investment income (loss) to average net assets (1.22)%(c) (1.25)% (1.16)% (0.64)% (1.13)% (0.83)% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 44% 98% 134% 110% 93% 97% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $31,872,435. (d) After fee waivers. Ratio of expenses to average net assets prior to fee waivers were 2.30% and 2.17% for fiscal year ended 2001 and 2000, respectively. (e) Not annualized for periods less than one year. F-13 OTHER INFORMATION DIRECTORS AND OFFICERS BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND Robert H. Graham Robert H. Graham 11 Greenway Plaza Mark H. Williamson Chairman and President Suite 100 Frank S. Bayley Houston, TX 77046 Bruce L. Crockett Mark H. Williamson Albert R. Dowden Executive Vice President INVESTMENT ADVISOR Edward K. Dunn Jr. A I M Advisors, Inc. Jack M. Fields Kevin M. Carome 11 Greenway Plaza Carl Frischling Senior Vice President Suite 100 Prema Mathai-Davis Houston, TX 77046 Lewis F. Pennock Gary T. Crum Ruth H. Quigley Senior Vice President TRANSFER AGENT Louis S. Sklar A I M Fund Services, Inc. Dana R. Sutton P.O. Box 4739 Vice President and Treasurer Houston, TX 77210-4739 Robert G. Alley CUSTODIAN Vice President State Street Bank and Trust Company 225 Franklin Street Stuart W. Coco Boston, MA 02110 Vice President COUNSEL TO THE FUND Melville B. Cox Ballard Spahr Vice President Andrews & Ingersoll, LLP 1735 Market Street Edgar M. Larsen Philadelphia, PA 19103 Vice President COUNSEL TO THE TRUSTEES Nancy L. Martin Kramer, Levin, Naftalis & Frankel LLP Secretary 919 Third Avenue New York, NY 10022 DISTRIBUTOR A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046
THE AIM FAMILY OF FUNDS--Registered Trademark-- DOMESTIC EQUITY INTERNATIONAL/GLOBAL EQUITY FIXED INCOME AIM Aggressive Growth Fund AIM Asia Pacific Growth Fund(2) TAXABLE AIM Balanced Fund* AIM Developing Markets Fund AIM Basic Balanced Fund* AIM European Growth Fund(2) AIM Floating Rate Fund AIM Basic Value Fund AIM European Small Company Fund AIM High Yield Fund AIM Blue Chip Fund AIM Global Aggressive Growth Fund AIM Income Fund AIM Capital Development Fund AIM Global Growth Fund AIM Intermediate Government Fund AIM Charter Fund AIM Global Trends Fund AIM Limited Maturity Treasury Fund(6,7) AIM Constellation Fund AIM Global Value Fund(5) AIM Money Market Fund AIM Dent Demographic Trends Fund AIM International Core Equity Fund(2) AIM Short-Term Bond Fund AIM Diversified Dividend Fund(1) AIM International Emerging Growth Fund AIM Total Return Bond Fund AIM Emerging Growth Fund AIM International Growth Fund(2) AIM Large Cap Basic Value Fund TAX-FREE AIM Large Cap Growth Fund AIM Libra Fund AIM High Income Municipal Fund AIM Mid Cap Basic Value Fund SECTOR EQUITY AIM Municipal Bond Fund AIM Mid Cap Core Equity Fund(2) AIM Tax-Exempt Cash Fund AIM Mid Cap Growth Fund AIM Global Energy Fund AIM Tax-Free Intermediate Fund(6,7) AIM Opportunities I Fund(2,3) AIM Global Financial Services Fund AIM Opportunities II Fund(2,3) AIM Global Health Care Fund AIM Opportunities III Fund(2,3) AIM Global Science and Technology Fund(2) AIM Premier Equity Fund(2) AIM Global Utilities Fund AIM Premier Equity II Fund(2) AIM New Technology Fund AIM Select Equity Fund AIM Real Estate Fund AIM Small Cap Equity Fund AIM Small Cap Growth Fund(4) AIM Weingarten Fund *Domestic equity and income fund
(1) Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. (2) The following fund name changes became effective July 1, 2002: AIM Asian Growth Fund renamed AIM Asia Pacific Growth Fund; AIM European Development Fund renamed AIM European Growth Fund; AIM Global Telecommunications and Technology Fund renamed AIM Global Science and Technology Fund; AIM International Equity Fund renamed AIM International Growth Fund; AIM International Value Fund renamed AIM International Core Equity Fund; AIM Large Cap Opportunities Fund renamed AIM Opportunities III Fund; AIM Mid Cap Equity Fund renamed AIM Mid Cap Core Equity Fund; AIM Mid Cap Opportunities Fund renamed AIM Opportunities II Fund; AIM Small Cap Opportunities Fund renamed AIM Opportunities I Fund; AIM Value Fund renamed AIM Premier Equity Fund; AIM Value II Fund renamed AIM Premier Equity II Fund. (3) Effective October 1, 2002, the fund was reopened to new investors. (4) AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. (5) Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. (6) Class A shares closed to new investors on October 30, 2002. (7) Class A3 shares were first offered on October 31, 2002. For more complete information about any AIM fund, including sales charges and expenses, ask your financial advisor for a prospectus. Please read it carefully before investing. This brochure is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Please read it carefully before investing. If used after July 20, 2003, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual Funds distributed by A I M Distributors, Inc. A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $115 billion in assets for approximately 9 million shareholders, including individual investors, corporate clients and financial institutions. The AIM Family of Funds--Registered Trademark-- is distributed nationwide. AIM is a subsidiary of AMVESCAP PLC, one of the world's largest independent financial services companies with $319 billion in assets under management. Data as of March 31, 2003. Mutual Retirement Annuities College Separately Offshore Alternative Cash Funds Products Savings Managed Products Investments Management Plans Accounts
[AIM INVESTMENTS LOGO APPEARS HERE] --Servicemark-- Your Goals. Our Solutions. --Servicemark-- AIMinvestments.com GLG-SAR-1 SEMIANNUAL REPORT TO SHAREHOLDERS / APRIL 30, 2003 AIM GLOBAL INCOME FUND (COVER IMAGE) (AIM INVESTMENTS LOGO APPEARS HERE) --Servicemark-- YOUR GOALS. OUR SOLUTIONS.--Servicemark-- AIM Global Income Fund seeks to provide high current income, with a secondary objective of protection of principal and growth of capital. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This report may be distributed only to shareholders or to persons who have received a current prospectus of the fund. FUND DATA ================================================================================ AVERAGE ANNUAL TOTAL RETURNS As of 4/30/03 including sales charges - -------------------------------------------------------------------------------- CLASS A SHARES Inception (9/15/94) 5.36% 5 Years 1.26 1 Year 4.70 CLASS B SHARES Inception (9/15/94) 5.45% 5 Years 1.43 1 Year 4.44 CLASS C SHARES Inception (8/4/97) 2.80% 5 Years 1.76 1 Year 8.56 In addition to returns as of the close of the reporting period, industry regulations require us to provide average annual total returns, including sales charges, for periods ended 3/31/03, the most recent calendar quarter-end, which were as follows. Class A shares, inception (9/15/94), 5.13%; 5 years, 0.84%; 1 year, 3.48%. Class B shares, inception (9/15/94), 5.22%; 5 years, 1.01%; 1 year, 3.06%. Class C shares, inception (8/4/97), 2.43%; 5 years, 1.33%; 1 year, 7.19%. ================================================================================ ================================================================================ FUND VS. INDEXES Total Returns 10/31/02-4/30/03 excluding sales charges CLASS A SHARES 10.81% CLASS B SHARES 10.67 CLASS C SHARES 10.68 CITIGROUP WORLD GOVERNMENT BOND INDEX 10.43 (Broad Market and Style-Specific Index) LIPPER GLOBAL INCOME FUND INDEX 9.52 (Peer Group Index) Past performance cannot guarantee comparable future results. DUE TO SIGNIFICANT MARKET VOLATILITY, RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN. CALL YOUR FINANCIAL ADVISOR FOR MORE CURRENT PERFORMANCE. ================================================================================ ================================================================================ YIELD AND DISTRIBUTION RATE As of 4/30/03 30-DAY DISTRIBUTION RATE Class A 5.23% Class B 5.02 Class C 5.02 30-DAY YIELD Class A 3.80% Class B 3.49 Class C 3.49 Had the advisor not waived fees and/or reimbursed expenses, the fund's 30-day yield would have been 3.60% for Class A shares and 3.28% for Class B and Class C shares. ================================================================================
=================================================================================================================================== TOP 10 FIXED-INCOME ISSUERS* TOP COUNTRIES* TOP 10 INDUSTRIES* - ----------------------------------------------------------------------------------------------------------------------------------- 1. Bundesrepublik Deutschland 7.3% (PIE CHART) 1. Sovereign Debt 24.7% (Germany) 2. Canadian Government (Canada) 6.0 FRANCE 0.3% 2. Banks 17.1 3. Federal National Mortgage 4.1 NETHERLANDS 0.8% 3. Broadcasting & Cable TV 8.3 Association (FNMA) 4. United Kingdom (Treasury of) 3.2 CAYMAN ISLANDS 1.6% 4. Diversified Financial 7.4 (United Kingdom) Services 5. Kreditanstalt fuer Wiederaufbau 3.2 MEXICO 2.1% 5. Electric Utilities 5.6 (Germany) 6. CSC Holdings Inc. 2.9 GREECE 2.1% 6. U.S. Government Agency 5.6 7. Landesbank Baden-Wuerttemberg 2.6 LUXEMBOURG 2.2% 7. Integrated 3.8 (Germany) Telecommunication Service 8. New South Wales Treasury Corp. 2.4 AUSTRALIA 2.4% 8. Oil & Gas Exploration & 3.5 (Australia) Production 9. International Bank for Reconstruction 2.1 UNITED KINGDOM 4.0% 9. Consumer Finance 3.1 & Development (Luxembourg) 10. Hellenic Republic (Greece) 2.1 CANADA 9.9% 10. Real Estate 2.9 GERMANY 14.9% UNITED STATES 59.7% TOTAL NUMBER OF HOLDINGS* 258 TOTAL NET ASSETS $145.9 million * Excludes money market fund holdings. The fund's holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security. ===================================================================================================================================
ABOUT FUND INFORMATION THROUGHOUT THIS REPORT: o Unless otherwise stated, information presented here is as of 4/30/03 and is based on total net assets. o AIM Global Income Fund's performance figures are historical, and they reflect fund expenses, the reinvestment of distributions and changes in net asset value. o Had the advisor not waived fees and/or reimbursed expenses, returns would have been lower. o When sales charges are included in performance figures, Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C 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 CDSC on Class C shares is 1% for the first year after purchase. The performance of the fund's share classes will differ due to different sales charge structures and class expenses. o The 30-day yield is calculated using a formula defined by the Securities and Exchange Commission. The formula is based on the portfolio's potential earnings from dividends, interest and yield-to-maturity or yield-to-call of the bonds in the portfolio, net of all expenses, calculated at maximum offering price, and annualized. o The fund's 30-day distribution rate reflects its most recent monthly dividend distribution multiplied by 12 and divided by the most recent month-end maximum offering price. The fund's distribution rate and 30-day SEC yield will differ. o In the Schedule of Investments in this report, the fund's portfolio holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. o The fund may participate in the initial public offering (IPO) market in some market cycles. Because of the fund's small asset base, any investment the fund may make in IPOs may significantly affect the fund's total return. As the fund's assets grow, the impact of IPO investments will decline, which may reduce the effect of IPO investments on the fund's total return. o International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values 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. o The fund invests in higher-yielding, lower-rated corporate bonds, commonly known as junk bonds, which have a greater risk of price fluctuation and loss of principal and income than do U.S. government securities (such as U.S. Treasury bills and bonds, for which the repayment of principal and interest is guaranteed by the government if held to maturity). o The fund's investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than their original cost. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o The unmanaged Citigroup World Government Bond Index represents the performance of fixed-rate foreign-government debt securities of developed countries with a remaining maturity of one year or longer. o The unmanaged Lipper Global Income Fund Index represents an average of the 30 largest global income funds tracked by Lipper, Inc., an independent mutual fund performance monitor. o A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of an index of funds reflects fund expenses. Performance of a market index does not. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, aiminvestments.com. FOR MORE INFORMATION, PLEASE VISIT aiminvestments.com. TO OUR SHAREHOLDERS DEAR SHAREHOLDER: (PHOTO OF This is your final report on AIM Global Income Fund. After ROBERT H. the close of the six-month period ended April 30, 2003, fund GRAHAM) shareholders approved the reorganization of the fund's assets into AIM Income Fund. That reorganization was effected during June. You will note that we have adopted a more concise format for our semiannual reports. Important information such as holdings and performance as of the close of the reporting period appear on the opposite page. This letter will provide an overview of the markets and your fund during the six months covered by this report. As always, timely information about your fund and the markets in general is available at our Web site, aiminvestments.com. MARKET CONDITIONS U.S. gross domestic product increased at only a 1.4% annual rate in the fourth quarter of 2002, barely improving to 1.6%, annualized, for the first quarter of 2003. The country continued to lose jobs every month of the reporting period but January. The unemployment rate began the period at 5.7% and ended at 6%. Nonetheless, the Conference Board's Index of Consumer Confidence rose sharply from 61.4 in March to 81.0 in April. U.S. Treasuries produced negative returns in November, January and March but were positive in December, February and April. For the six-month period, they returned 3.06%. The U.S. investment grade bond market, as represented by the Lehman U.S. Aggregate Bond Index, posted a 4.31% total return for the six months. This index includes government and corporate securities, mortgage pass-through securities and asset-backed securities. The domestic high yield sector, as represented by the Lehman U.S. Corporate High Yield Index, returned 22.75%. Performance in the global bond markets was higher, with six-month total returns of 8.50% for the investment-grade Lehman Global Aggregate Index and 24.36% for the Lehman Global High Yield Index. (These indexes are compiled by Lehman Brothers, a global investment bank.) Yield spreads for corporate bonds--the difference in yield between a corporate bond and a Treasury issue of equivalent maturity--narrowed over the period. As of April 30, 2003, the federal funds rate remained at a 41-year low of 1.25%, helping hold down the cost of borrowing for corporations and consumers. YOUR FUND AIM Global Income Fund achieved positive results at net asset value for the six-month period. In investing the fund's assets, fund co-managers Robert G. Alley, Jan H. Friedli, Carolyn L. Gibbs and Scot W. Johnson focus on debt issued by U.S. and foreign governments and corporations. As mentioned, virtually all segments of the bond market had positive returns. Over the course of the six months there were increases in the proportions of the fund's assets invested in international instruments, both corporate and government. Among U.S. corporate bonds, assets invested in industrials rose during the six months, while holdings in financials declined. Holdings in U.S. government issues and mortgage-backed bonds also decreased. BACK TO BASICS I thank you for your continued participation in AIM Global Income Fund, and I look forward to reporting to you again in six months as a shareholder of AIM Income Fund. If you have any questions, please consult your financial advisor to help you with your investment choices. As always, members of our award-winning Client Services department are ready to help. They can be reached at 800-959-4246. Sincerely, /s/ ROBERT H. GRAHAM Robert H. Graham Chairman April 30, 2003 ================================================================================ AS OF APRIL 30, 2003, THE FEDERAL FUNDS RATE REMAINED AT A 41-YEAR LOW OF 1.25%, HELPING HOLD DOWN THE COST OF BORROWING FOR CORPORATIONS AND CONSUMERS. ROBERT H. GRAHAM ================================================================================ FINANCIALS SCHEDULE OF INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- U.S. DOLLAR DENOMINATED BONDS & NOTES-57.38% AEROSPACE & DEFENSE-0.97% Lockheed Martin Corp., Series A, Medium Term Notes, 8.66%, 11/30/06 $ 100,000 $ 117,297 - ------------------------------------------------------------------------- Unsec. Gtd. Unsub. Notes, 7.25%, 05/15/06 400,000 453,824 - ------------------------------------------------------------------------- Raytheon Co., Notes, 6.75%, 08/15/07 425,000 476,918 - ------------------------------------------------------------------------- Sr. Unsec. Notes, 6.30%, 03/15/05 350,000 375,420 ========================================================================= 1,423,459 ========================================================================= APPAREL RETAIL-0.16% Big 5 Corp.-Series B, Sr. Unsec. Notes, 10.88%, 11/15/07 202,000 213,110 - ------------------------------------------------------------------------- Gap, Inc. (The), Unsec. Unsub. Global Notes, 9.90%, 12/15/05 15,000 16,950 ========================================================================= 230,060 ========================================================================= AUTOMOBILE MANUFACTURERS-0.69% DaimlerChrysler N.A. Holding Corp.-Series D, Gtd. Medium Term Notes, 3.40%, 12/15/04 250,000 254,675 - ------------------------------------------------------------------------- General Motors Corp., Unsec. Deb., 8.80%, 03/01/21 700,000 752,248 ========================================================================= 1,006,923 ========================================================================= BANKS-7.58% American Savings Bank, Notes, 6.63%, 02/15/06 (Acquired 03/05/03; Cost $266,172)(a)(b) 240,000 261,828 - ------------------------------------------------------------------------- Bank of America Corp.-Series B, Putable Sub. Medium Term Notes, 8.57%, 11/15/04 300,000 407,028 - ------------------------------------------------------------------------- Bank of New York Co., Inc. (The), Sub. Medium Term Notes, 7.09%, 03/24/28(c) 3,000,000 545,010 - ------------------------------------------------------------------------- Bank One Corp., Sr. Unsec. Unsub. Global Notes, 7.63%, 08/01/05 500,000 561,260 - ------------------------------------------------------------------------- Bank United-Series A, Medium Term Notes, 8.00%, 03/15/09 1,000,000 1,172,740 - ------------------------------------------------------------------------- Barclays O/S Investment Co. (Netherlands), Unsec. Gtd. Unsub. Floating Rate Euro Notes, 1.63%, 11/29/49(d) 750,000 636,149 - ------------------------------------------------------------------------- Barnett Capital I, Gtd. Notes, 8.06%, 12/01/26 400,000 465,149 - ------------------------------------------------------------------------- BB&T Corp., RAPS Sub. Notes, 6.38%, 06/30/05 600,000 652,344 - ------------------------------------------------------------------------- Citicorp, Jr. Unsec. Sub. Notes, 6.38%, 01/15/06 375,000 406,339 - ------------------------------------------------------------------------- Dresdner Funding Trust I, Bonds, 8.15%, 06/30/31 (Acquired 05/09/02; Cost $212,194)(a)(b) 200,000 206,890 - ------------------------------------------------------------------------- Golden State Bancorp. Inc., Sub. Deb., 10.00%, 10/01/06 150,000 180,658 - ------------------------------------------------------------------------- Greater Bay Bancorp, Sr. Notes, 5.25%, 03/31/08 (Acquired 03/19/03; Cost $494,580)(a)(b) 500,000 502,770 - -------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- BANKS-(CONTINUED) KeyBank N.A., Sr. Notes, 4.10%, 06/30/05 $ 400,000 $ 417,292 - ------------------------------------------------------------------------- Lloyds Bank PLC (United Kingdom)-Series 1, Unsec. Sub. Floating Rate Euro Notes, 1.69%, 06/29/49(d) 350,000 280,588 - ------------------------------------------------------------------------- NBD Bank N.A. Michigan, Unsec. Putable Sub. Deb., 8.25%, 11/01/04 610,000 791,603 - ------------------------------------------------------------------------- Santander Financial Issuances (Cayman Islands), Unsec. Gtd. Sub. Yankee Notes, 7.00%, 04/01/06 200,000 222,236 - ------------------------------------------------------------------------- U.S. Bancorp-Series N, Sr. Medium Term Notes, 2.75%, 03/30/06 100,000 100,786 - ------------------------------------------------------------------------- U.S. Bank, N.A., Sub. Global Notes, 4.80%, 04/15/15 700,000 708,694 - ------------------------------------------------------------------------- UBS Preferred Funding Trust I, Gtd. Global Bonds, 8.62%, 10/29/49 440,000 554,048 - ------------------------------------------------------------------------- Union Planters Bank N.A., Unsec. Putable Sub. Notes, 6.50%, 03/15/08 650,000 736,027 - ------------------------------------------------------------------------- Wachovia Corp., Unsec. Putable Sub. Deb., 7.50%, 04/15/05 700,000 889,791 - ------------------------------------------------------------------------- Washington Mutual, Inc., Jr. Unsec. Sub. Notes, 8.25%, 04/01/10 300,000 362,262 ========================================================================= 11,061,492 ========================================================================= BROADCASTING & CABLE TV-8.18% Adelphia Communications Corp., Sr. Unsec. Notes, 10.88%, 10/01/10(e) 700,000 355,250 - ------------------------------------------------------------------------- British Sky Broadcasting Group PLC (United Kingdom), Unsec. Gtd. Yankee Notes, 7.30%, 10/15/06 700,000 761,082 - ------------------------------------------------------------------------- Clear Channel Communications, Inc., Sr. Unsec. Notes, 7.88%, 06/15/05 100,000 110,714 - ------------------------------------------------------------------------- Comcast Cable Communications, Inc., Unsec. Unsub. Notes, 8.88%, 05/01/17 200,000 250,886 - ------------------------------------------------------------------------- Comcast Corp., Sr. Unsec. Sub. Notes, 8.25%, 02/15/08 650,000 676,812 - ------------------------------------------------------------------------- 10.50%, 06/15/06 400,000 464,000 - ------------------------------------------------------------------------- Cox Communications, Inc., Sr. Unsec. Putable Deb., 6.53%, 02/01/08 600,000 657,750 - ------------------------------------------------------------------------- CSC Holdings Inc., Sr. Unsec. Deb., 7.88%, 02/15/18 1,000,000 1,060,000 - ------------------------------------------------------------------------- Sr. Unsec. Notes, 7.25%, 07/15/08 1,295,000 1,340,325 - ------------------------------------------------------------------------- 7.88%, 12/15/07 1,750,000 1,850,625 - ------------------------------------------------------------------------- Knology, Inc., Sr. Unsec. PIK Notes, 12.00%, 11/30/09 (Acquired 01/06/98; Cost $266,175)(a) 155,000 122,062 - -------------------------------------------------------------------------
F-1
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- BROADCASTING & CABLE TV-(CONTINUED) TCI Communications, Inc., Medium Term Notes, 8.35%, 02/15/05 $ 400,000 $ 433,620 - ------------------------------------------------------------------------- Sr. Notes, 8.65%, 09/15/04 425,000 457,296 - ------------------------------------------------------------------------- Sr. Unsec. Deb., 7.88%, 02/15/26 250,000 279,622 - ------------------------------------------------------------------------- 8.75%, 08/01/15 750,000 952,050 - ------------------------------------------------------------------------- 10.13%, 04/15/22 265,000 346,437 - ------------------------------------------------------------------------- Time Warner Inc., Unsec. Deb., 9.15%, 02/01/23 400,000 484,872 - ------------------------------------------------------------------------- Unsec. Notes, 7.75%, 06/15/05 100,000 109,280 - ------------------------------------------------------------------------- Turner Broadcasting System, Inc., Class A, Sr. Notes, 8.38%, 07/01/13 835,000 974,169 - ------------------------------------------------------------------------- Sr. Notes, 7.40%, 02/01/04 235,000 244,109 ========================================================================= 11,930,961 ========================================================================= CASINOS & GAMBLING-0.85% Boyd Gaming Corp., Sr. Unsec. Sub. Global Notes, 8.75%, 04/15/12 290,000 313,925 - ------------------------------------------------------------------------- Mohegan Tribal Gaming Authority, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 04/01/12 370,000 394,050 - ------------------------------------------------------------------------- Park Place Entertainment Corp., Sr. Notes, 7.00%, 04/15/13 (Acquired 04/08/03; Cost $320,000)(a)(b) 320,000 326,400 - ------------------------------------------------------------------------- Sr. Unsec. Global Notes, 7.50%, 09/01/09 200,000 212,000 ========================================================================= 1,246,375 ========================================================================= COMPUTER HARDWARE-0.31% IBM Corp., Deb., 8.38%, 11/01/19 350,000 459,049 ========================================================================= CONSTRUCTION MATERIALS-0.21% MMI Products, Inc.-Series B, Sr. Unsec. Sub. Notes, 11.25%, 04/15/07 400,000 302,000 ========================================================================= CONSUMER FINANCE-3.07% CitiFinancial Credit Co., Notes, 6.63%, 06/01/15 100,000 114,453 - ------------------------------------------------------------------------- Countrywide Home Loans, Inc. Series J, Gtd. Medium Term Global Notes, 5.25%, 06/15/04 150,000 156,052 - ------------------------------------------------------------------------- Series K, Medium Term Global Notes, 3.50%, 12/19/05 200,000 204,670 - ------------------------------------------------------------------------- Ford Motor Credit Co., Global Notes, 7.88%, 06/15/10 500,000 520,410 - ------------------------------------------------------------------------- Notes, 7.50%, 06/15/04 75,000 78,327 - ------------------------------------------------------------------------- Unsec. Global Notes, 6.70%, 07/16/04 175,000 181,986 - ------------------------------------------------------------------------- 6.88%, 02/01/06 400,000 413,312 - ------------------------------------------------------------------------- General Motors Acceptance Corp., Medium Term Notes, 6.38%, 01/30/04 575,000 592,348 - ------------------------------------------------------------------------- Unsec. Unsub. Notes, 7.63%, 06/15/04 200,000 209,992 - -------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- CONSUMER FINANCE-(CONTINUED) Household Finance Corp., Global Notes, 6.38%, 10/15/11 $ 1,100,000 $ 1,210,583 - ------------------------------------------------------------------------- Medium Term Notes, 3.38%, 02/21/06 75,000 76,323 - ------------------------------------------------------------------------- Sr. Unsec. Global Notes, 6.50%, 01/24/06 250,000 275,742 - ------------------------------------------------------------------------- 8.00%, 05/09/05 400,000 445,644 ========================================================================= 4,479,842 ========================================================================= DISTILLERS & VINTNERS-0.40% Constellation Brands, Inc.-Series B, Sr. Unsec. Gtd. Sub. Notes, 8.13%, 01/15/12 250,000 266,250 - ------------------------------------------------------------------------- Diageo PLC, Sr. Unsec. Gtd. Putable Notes, 7.45%, 04/15/05 250,000 319,960 ========================================================================= 586,210 ========================================================================= DIVERSIFIED CHEMICALS-0.12% Equistar Chemicals LP/Equistar Funding Corp., Sr. Unsec. Gtd. Notes, 10.13%, 09/01/08 160,000 168,800 ========================================================================= DIVERSIFIED COMMERCIAL SERVICES-0.23% United Rentals North America Inc., Sr. Unsec. Gtd. Notes, 10.75%, 04/15/08 (Acquired 12/17/02; Cost $300,840)(a) 310,000 335,575 ========================================================================= DIVERSIFIED FINANCIAL SERVICES-5.98% ASIF Global Financing XIX, Sec. Notes, 4.90%, 01/17/13 (Acquired 01/08/03; Cost $264,171)(a)(b) 265,000 271,954 - ------------------------------------------------------------------------- ASIF Global Financing XX, Sec. Notes, 2.65%, 01/17/06 (Acquired 01/08/03; Cost $374,408)(a)(b) 375,000 380,299 - ------------------------------------------------------------------------- Auburn Hills Trust, Unsec. Gtd. Deb., 12.38%, 05/01/20 700,000 1,076,026 - ------------------------------------------------------------------------- Bear Stearns Cos. Inc. (The), Global Notes, 3.00%, 03/30/06 150,000 152,523 - ------------------------------------------------------------------------- Capital One Bank, Sr. Notes, 6.62%, 08/04/03 75,000 75,371 - ------------------------------------------------------------------------- CIT Group Inc., Global Notes, 5.63%, 05/17/04 100,000 103,365 - ------------------------------------------------------------------------- Sr. Floating Rate Medium Term Global Notes, 2.57%, 11/25/03(f) 200,000 200,128 - ------------------------------------------------------------------------- Sr. Global Notes, 7.13%, 10/15/04 150,000 159,475 - ------------------------------------------------------------------------- Citigroup Capital II, Jr. Gtd. Sub. Bonds, 7.75%, 12/01/36 500,000 583,525 - ------------------------------------------------------------------------- First Industrial Realty Trust, Inc., PATS Putable Bonds, 7.38%, 05/15/04 (Acquired 02/06/03; Cost $314,550)(a)(b) 300,000 314,694 - ------------------------------------------------------------------------- FMR Corp., Bonds, 7.57%, 06/15/29 (Acquired 05/09/01-05/01/02; Cost $844,878)(a)(b) 800,000 994,504 - -------------------------------------------------------------------------
F-2
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES-(CONTINUED) General Electric Capital Corp.-Series A, Medium Term Global Notes, 5.00%, 06/15/07 $ 200,000 $ 215,272 - ------------------------------------------------------------------------- 6.00%, 06/15/12 500,000 552,720 - ------------------------------------------------------------------------- 6.80%, 11/01/05 100,000 111,179 - ------------------------------------------------------------------------- General Motors Acceptance Corp., Medium Term Notes, 4.15%, 02/07/05 1,100,000 1,114,080 - ------------------------------------------------------------------------- International Lease Finance Corp., Notes, 5.13%, 08/01/04 115,000 119,128 - ------------------------------------------------------------------------- John Hancock Global Funding II, Notes, 5.00%, 07/27/07 (Acquired 06/12/02; Cost $199,890)(a)(b) 200,000 211,662 - ------------------------------------------------------------------------- 6.50%, 03/01/11 (Acquired 07/24/02; Cost $421,776)(a)(b) 400,000 440,188 - ------------------------------------------------------------------------- Lehman Brothers Inc., Sr. Sub. Deb., 11.63%, 05/15/05 150,000 176,220 - ------------------------------------------------------------------------- Regional Diversified Funding, Sr. Notes, 9.25%, 03/15/30 (Acquired 01/10/03; Cost $220,406)(a)(b) 196,434 231,493 - ------------------------------------------------------------------------- Swiss Bank Corp.-NY, Sub. Notes, 7.38%, 06/15/17 350,000 435,960 - ------------------------------------------------------------------------- USL Capital Corp., Sr. Global Notes, 5.95%, 10/15/03 350,000 354,658 - ------------------------------------------------------------------------- Washington Mutual Financial Corp., Sr. Unsec. Notes, 8.25%, 06/15/05 300,000 339,015 - ------------------------------------------------------------------------- Wells Fargo Financial, Inc., Global Notes, 6.13%, 02/15/06 100,000 110,558 ========================================================================= 8,723,997 ========================================================================= ELECTRIC UTILITIES-5.00% AES Corp. (The), Sec. Notes, 10.00%, 07/15/05 (Acquired 12/13/02; Cost $444,897)(a) 472,000 493,240 - ------------------------------------------------------------------------- AmerenEnergy Generating Co.-Series C, Sr. Unsec. Global Notes, 7.75%, 11/01/05 175,000 195,064 - ------------------------------------------------------------------------- Calpine Canada Energy Finance ULC (Canada), Sr. Unsec. Gtd. Yankee Notes, 8.50%, 05/01/08 390,000 290,550 - ------------------------------------------------------------------------- Cleveland Electric Illuminating Co. (The), First Mortgage Bonds, 6.86%, 10/01/08 500,000 552,855 - ------------------------------------------------------------------------- Duke Energy Corp., Bonds, 6.45%, 10/15/32 270,000 284,283 - ------------------------------------------------------------------------- First Mortgage Bonds, 3.75%, 03/05/08 (Acquired 02/20/03; Cost $149,564)(a)(b) 150,000 151,418 - ------------------------------------------------------------------------- El Paso Electric Co.-Series E, Sr. Sec. First Mortgage Bonds, 9.40%, 05/01/11 600,000 663,972 - ------------------------------------------------------------------------- Hydro-Quebec (Canada), Gtd. Floating Rate Euro Notes, 1.31%, 09/29/49(d) 620,000 557,872 - ------------------------------------------------------------------------- Gtd. Yankee Bonds, 9.40%, 02/01/21(g) 525,000 759,497 - ------------------------------------------------------------------------- Kincaid Generation LLC, Sr. Sec. Bonds, 7.33%, 06/15/20 (Acquired 04/30/98; Cost $465,103)(a)(b) 463,957 445,241 - -------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- ELECTRIC UTILITIES-(CONTINUED) Mission Energy Holding Co., Sr. Sec. Global Notes, 13.50%, 07/15/08 $ 280,000 $ 180,600 - ------------------------------------------------------------------------- Niagara Mohawk Power Corp.-Series H, Sr. Unsec. Disc. Notes, 8.50%, 07/01/10(h) 1,750,000 1,808,153 - ------------------------------------------------------------------------- Public Service Co. of Colorado, First Mortgage Bonds, 4.88%, 03/01/13 (Acquired 03/07/03; Cost $299,562)(a)(b) 300,000 302,877 - ------------------------------------------------------------------------- Public Service Co. of New Mexico-Series A, Sr. Unsec. Notes, 7.10%, 08/01/05 120,000 129,161 - ------------------------------------------------------------------------- TXU Corp.-Series B, Sr. Unsec. Notes, 6.38%, 10/01/04(g) 450,000 477,927 ========================================================================= 7,292,710 ========================================================================= ENVIRONMENTAL SERVICES-0.24% Browning-Ferris Industries, Inc., Deb., 9.25%, 05/01/21 350,000 344,750 ========================================================================= FOREST PRODUCTS-0.11% Louisiana-Pacific Corp., Sr. Unsec. Notes, 8.50%, 08/15/05 155,000 166,625 ========================================================================= GAS UTILITIES-1.63% CenterPoint Energy Resources Corp., Unsec. Deb., 6.50%, 02/01/08 400,000 424,700 - ------------------------------------------------------------------------- Kinder Morgan, Inc., Sr. Unsec. Notes, 6.80%, 03/01/08 700,000 787,129 - ------------------------------------------------------------------------- MCN Corp., First Mortgage Bonds, 5.70%, 03/15/33 550,000 553,663 - ------------------------------------------------------------------------- Tennessee Gas Pipeline Co., Unsec. Deb., 7.63%, 04/01/37 650,000 607,750 ========================================================================= 2,373,242 ========================================================================= GENERAL MERCHANDISE STORES-0.19% Wal-Mart Stores, Inc., Unsec. Deb., 8.50%, 09/15/24 250,000 280,245 ========================================================================= HEALTH CARE FACILITIES-0.58% Hanger Orthopedic Group, Inc., Sr. Unsec. Gtd. Global Notes, 10.38%, 02/15/09 450,000 492,750 - ------------------------------------------------------------------------- HCA Inc., Notes, 6.25%, 02/15/13 350,000 359,751 ========================================================================= 852,501 ========================================================================= HOMEBUILDING-0.59% K Hovnanian Enterprises, Inc., Sr. Unsec. Gtd. Notes, 10.50%, 10/01/07 500,000 565,000 - ------------------------------------------------------------------------- WCI Communities, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.13%, 05/01/12 285,000 290,700 ========================================================================= 855,700 ========================================================================= HOTELS, RESORTS & CRUISE LINES-0.08% Hilton Hotels Corp., Sr. Unsec. Notes, 7.63%, 12/01/12 105,000 110,513 =========================================================================
F-3
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- INDUSTRIAL MACHINERY-0.15% Pall Corp., Notes, 6.00%, 08/01/12 (Acquired 08/01/02; Cost $199,898)(a)(b) $ 200,000 $ 212,530 ========================================================================= INTEGRATED OIL & GAS-2.67% Amerada Hess Corp., Unsec. Notes, 5.90%, 08/15/06 200,000 216,458 - ------------------------------------------------------------------------- BP Canada Finance Co. (Canada), Unsec. Gtd. Unsub. Global Bonds, 3.38%, 10/31/07 1,000,000 1,015,490 - ------------------------------------------------------------------------- El Paso Energy Partners, L.P., Sr. Sub. Notes, 8.50%, 06/01/10 (Acquired 03/19/03; Cost $320,000)(a)(b) 320,000 345,600 - ------------------------------------------------------------------------- Husky Oil Ltd. (Canada), Sr. Unsec. Yankee Notes, 7.13%, 11/15/06 600,000 666,690 - ------------------------------------------------------------------------- Yankee Bonds, 8.90%, 08/15/28 250,000 281,217 - ------------------------------------------------------------------------- Occidental Petroleum Corp., Sr. Unsec. Notes, 7.38%, 11/15/08 750,000 882,623 - ------------------------------------------------------------------------- Repsol International Finance B.V. (Netherlands), Unsec. Gtd. Global Notes, 7.45%, 07/15/05 450,000 491,751 ========================================================================= 3,899,829 ========================================================================= INTEGRATED TELECOMMUNICATION SERVICES-3.76% AT&T Corp., Sr. Unsec. Global Notes, 7.00%, 11/15/06 250,000 266,875 - ------------------------------------------------------------------------- 7.80%, 11/15/11 565,000 620,794 - ------------------------------------------------------------------------- 8.50%, 11/15/31 200,000 221,750 - ------------------------------------------------------------------------- BT Group PLC (United Kingdom), Global Notes, 7.88%, 12/15/05 75,000 84,968 - ------------------------------------------------------------------------- Deutsche Telekom International B.V. (Germany), Unsec. Gtd. Unsub. Global Notes, 8.25%, 06/15/05 275,000 305,247 - ------------------------------------------------------------------------- France Telecom S.A. (France), Sr. Unsec. Global Notes, 10.00%, 03/01/31 375,000 498,409 - ------------------------------------------------------------------------- GTE Hawaiian Telephone Co., Inc.-Series A, Unsec. Deb., 7.00%, 02/01/06 200,000 220,792 - ------------------------------------------------------------------------- New England Telephone & Telegraph Co., Sr. Unsec. Notes, 7.65%, 06/15/07 330,000 381,272 - ------------------------------------------------------------------------- SBC Communications Capital Corp.-Series D, Medium Term Notes, 7.11%, 08/14/06 100,000 113,676 - ------------------------------------------------------------------------- Sprint Capital Corp., Gtd. Global Notes, 6.90%, 05/01/19 510,000 483,863 - ------------------------------------------------------------------------- Sr. Unsec. Gtd. Global Notes, 6.00%, 01/15/07 1,000,000 1,021,250 - ------------------------------------------------------------------------- Sr. Unsec. Gtd. Unsub. Global Notes, 6.13%, 11/15/08 100,000 101,125 - ------------------------------------------------------------------------- Unsec. Gtd. Global Notes, 7.90%, 03/15/05 200,000 212,250 - ------------------------------------------------------------------------- Sprint Corp., Deb., 9.00%, 10/15/19 200,000 202,750 - ------------------------------------------------------------------------- Verizon Global Funding Corp., Sr. Unsec. Unsub. Global Notes, 7.75%, 12/01/30 300,000 370,149 - ------------------------------------------------------------------------- Verizon Pennsylvania Inc.-Series A, Global Notes, 5.65%, 11/15/11 350,000 377,311 ========================================================================= 5,482,481 =========================================================================
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- LIFE & HEALTH INSURANCE-0.68% Americo Life, Inc., Notes, 7.88%, 05/01/13 (Acquired 04/25/03; Cost $592,896)(a)(b) $ 600,000 $ 599,538 - ------------------------------------------------------------------------- Lincoln National Corp., Unsec. Deb., 9.13%, 10/01/24 100,000 112,306 - ------------------------------------------------------------------------- ReliaStar Financial Corp., Unsec. Notes, 8.00%, 10/30/06 250,000 277,090 ========================================================================= 988,934 ========================================================================= METAL & GLASS CONTAINERS-0.23% Owens-Illinois, Inc., Sr. Unsec. Deb., 7.50%, 05/15/10 340,000 335,750 ========================================================================= OIL & GAS DRILLING-0.99% Transocean Inc. (Cayman Islands), Unsec. Global Notes, 6.95%, 04/15/08 1,270,000 1,450,264 ========================================================================= OIL & GAS EQUIPMENT & SERVICES-0.74% National-Oilwell, Inc.-Series B, Sr. Unsec. Notes, 6.50%, 03/15/11 1,000,000 1,084,550 ========================================================================= OIL & GAS EXPLORATION & PRODUCTION-3.47% Amerada Hess Corp., Unsec. Notes, 5.30%, 08/15/04 100,000 104,006 - ------------------------------------------------------------------------- Burlington Resources Finance Co. (Canada), Sr. Unsec. Gtd. Bonds, 7.20%, 08/15/31 450,000 532,341 - ------------------------------------------------------------------------- Canadian Natural Resources Ltd. (Canada), Unsec. Yankee Notes, 6.70%, 07/15/11 275,000 313,649 - ------------------------------------------------------------------------- Canadian Oil Sands Ltd. (Canada), Sr. Yankee Notes, 7.90%, 09/01/21 (Acquired 08/17/01- 07/31/02; Cost $303,012)(a)(b) 300,000 334,017 - ------------------------------------------------------------------------- Chesapeake Energy Corp., Sr. Unsec. Gtd. Notes, 8.38%, 11/01/08 310,000 333,250 - ------------------------------------------------------------------------- Louis Dreyfus Natural Gas Corp., Unsec. Notes, 6.88%, 12/01/07 550,000 625,185 - ------------------------------------------------------------------------- Newfield Exploration Co., Sr. Unsec. Unsub. Notes, 7.63%, 03/01/11 2,200,000 2,387,000 - ------------------------------------------------------------------------- Pogo Producing Co.-Series B, Sr. Unsec. Sub. Notes, 10.38%, 02/15/09 395,000 432,525 ========================================================================= 5,061,973 ========================================================================= OIL & GAS REFINING, MARKETING & TRANSPORTATION-0.59% Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Yankee Bonds, 9.38%, 12/02/08 480,000 576,600 - ------------------------------------------------------------------------- Unsec. Gtd. Unsub. Global Notes, 6.50%, 02/01/05 270,000 287,550 ========================================================================= 864,150 ========================================================================= PACKAGED FOODS & MEATS-0.56% Dole Food Co., Inc., Sr. Unsec. Global Notes, 8.63%, 05/01/09 160,000 173,600 - -------------------------------------------------------------------------
F-4
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- PACKAGED FOODS & MEATS-(CONTINUED) Kraft Foods Inc., Global Notes, 5.63%, 11/01/11 $ 300,000 $ 313,992 - ------------------------------------------------------------------------- 6.25%, 06/01/12 300,000 326,874 ========================================================================= 814,466 ========================================================================= PUBLISHING-1.18% News America Holdings, Inc., Sr. Gtd. Deb., 9.25%, 02/01/13 400,000 514,520 - ------------------------------------------------------------------------- Sr. Unsec. Gtd. Deb., 7.75%, 01/20/24 650,000 720,421 - ------------------------------------------------------------------------- News America Inc., Sr. Putable Deb., 6.75%, 01/09/10 250,000 275,799 - ------------------------------------------------------------------------- Tribune Co., Putable Notes, 6.61%, 09/15/04 200,000 212,576 ========================================================================= 1,723,316 ========================================================================= RAILROADS-0.28% CSX Corp., Sr. Unsec. Putable Deb., 7.25%, 05/01/05 350,000 404,121 ========================================================================= REAL ESTATE-2.33% EOP Operating L.P., Sr. Unsec. Notes, 6.50%, 06/15/04 500,000 521,380 - ------------------------------------------------------------------------- 7.25%, 06/15/28 150,000 163,404 - ------------------------------------------------------------------------- Unsec. Gtd. Notes, 6.75%, 02/15/12 150,000 167,325 - ------------------------------------------------------------------------- Unsec. Notes, 8.38%, 03/15/06 250,000 284,320 - ------------------------------------------------------------------------- Health Care REIT, Inc., Sr. Unsec. Notes, 7.50%, 08/15/07 300,000 316,305 - ------------------------------------------------------------------------- Host Marriott L.P. Series E, Sr. Sec. Gtd. Notes, 8.38%, 02/15/06 225,000 230,625 - ------------------------------------------------------------------------- Series I, Unsec. Gtd. Global Notes, 9.50%, 01/15/07 375,000 395,625 - ------------------------------------------------------------------------- iStar Financial Inc., Sr. Unsec. Notes, 8.75%, 08/15/08 190,000 206,150 - ------------------------------------------------------------------------- Simon Property Group, L.P., Notes, 5.45%, 03/15/13 (Acquired 03/13/03; Cost $823,375)(a)(b) 825,000 831,815 - ------------------------------------------------------------------------- Spieker Properties, Inc., Unsec. Unsub. Deb., 7.35%, 12/01/17 250,000 288,873 ========================================================================= 3,405,822 ========================================================================= SOVEREIGN DEBT-2.02% Export Development Canada (Canada), Global Bonds, 4.00%, 08/01/07 200,000 209,764 - ------------------------------------------------------------------------- New Brunswick (Province of) (Canada), Sec. Yankee Deb., 6.75%, 08/15/13 465,000 565,040 - ------------------------------------------------------------------------- United Mexican States (Mexico), Global Notes, 4.63%, 10/08/08 100,000 100,875 - ------------------------------------------------------------------------- 6.63%, 03/03/15 300,000 313,125 - ------------------------------------------------------------------------- 7.50%, 04/08/33 1,300,000 1,342,575 - ------------------------------------------------------------------------- Series A, Medium Term Global Notes, 6.38%, 01/16/13 400,000 418,800 ========================================================================= 2,950,179 =========================================================================
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- SPECIALTY STORES-0.18% CSK Auto, Inc., Sr. Unsec. Gtd. Global Notes, 12.00%, 06/15/06 $ 240,000 $ 264,000 ========================================================================= WIRELESS TELECOMMUNICATION SERVICES-0.38% AT&T Wireless Services Inc., Sr. Unsec. Unsub. Global Notes, 8.75%, 03/01/31 385,000 476,919 - ------------------------------------------------------------------------- Cingular Wireless L.L.C., Sr. Unsec. Global Notes, 5.63%, 12/15/06 75,000 82,082 ========================================================================= 559,001 ========================================================================= Total U.S. Dollar Denominated Bonds & Notes (Cost $80,122,639) 83,732,395 ========================================================================= PRINCIPAL AMOUNT(I) NON-U.S. DOLLAR DENOMINATED BONDS & NOTES-32.87% AUSTRALIA-2.41% New South Wales Treasury Corp. (Sovereign Debt), Gtd. Euro Bonds, 8.00%, 03/01/08 AUD 5,000,000 3,523,717 ========================================================================= CANADA-6.14% Canadian Government (Sovereign Debt), Bonds, 5.75%, 06/01/29 CAD 300,000 218,994 - ------------------------------------------------------------------------- 6.00%, 06/01/08 CAD 9,520,000 7,141,395 - ------------------------------------------------------------------------- Gtd. Bonds, 7.00%, 12/01/06 CAD 300,000 230,003 - ------------------------------------------------------------------------- 7.25%, 06/01/07 CAD 900,000 701,217 - ------------------------------------------------------------------------- 9.00%, 03/01/11 CAD 500,000 444,831 - ------------------------------------------------------------------------- Rogers Cablesystems Ltd. (Broadcasting & Cable TV), Sr. Sec. Second Priority Deb., 9.65%, 01/15/14 CAD 300,000 220,250 ========================================================================= 8,956,690 ========================================================================= CAYMAN ISLANDS-0.49% Sutton Bridge Financing Ltd. (Electric Utilities), Gtd. Euro Bonds, 8.63%, 06/30/22 GBP 424,301 710,151 ========================================================================= GERMANY-14.67% Bundesrepublik Deutschland (Sovereign Debt) Series 2000, Euro Bonds, 5.50%, 01/04/31 EUR 5,000,000 6,125,405 - ------------------------------------------------------------------------- Series 2002, Euro Bonds, 5.00%, 07/04/12 EUR 3,750,000 4,479,970 - ------------------------------------------------------------------------- Eurohypo AG (Banks)-Series 2212, Sec. Euro Bonds, 4.50%, 01/21/13 EUR 2,000,000 2,277,623 - ------------------------------------------------------------------------- Kreditanstalt fuer Wiederaufbau (Banks), Sr. Unsec. Gtd. Unsub. Global Notes, 3.50%, 11/15/05 EUR 1,400,000 1,595,362 - ------------------------------------------------------------------------- Sr. Unsec. Unsub. Global Notes, 5.25%, 07/04/12 EUR 2,500,000 3,049,053 - ------------------------------------------------------------------------- Landesbank Baden-Wuerttemberg (Banks), Sec. Euro Bonds, 3.25%, 05/08/08 EUR 3,500,000 3,878,130 ========================================================================= 21,405,543 =========================================================================
F-5
PRINCIPAL MARKET AMOUNT(i) VALUE - ------------------------------------------------------------------------- GREECE-2.07% Hellenic Republic (Sovereign Debt), Euro Bonds, 6.00%, 05/19/10 EUR 2,400,000 $ 3,017,614 ========================================================================= LUXEMBOURG-2.15% International Bank for Reconstruction & Development (Banks)-Series E, Sr. Unsec. Medium Term Global Notes, 5.76%, 08/20/07(c) NZD 7,100,000 3,132,219 ========================================================================= U.S.A.-1.70% Fannie Mae (Sovereign Debt)-Series E, Sr. Unsub. Medium Term Global Notes, 6.38%, 08/15/07 AUD 3,785,000 2,488,738 ========================================================================= UNITED KINGDOM-3.24% United Kingdom (Treasury of) (Sovereign Debt), Bonds, 7.25%, 12/07/07 GBP 2,600,000 4,731,914 ========================================================================= Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $43,596,257) 47,966,586 ========================================================================= U.S. GOVERNMENT AGENCY SECURITIES-3.86% FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC)-1.04% Pass Through Ctfs., 8.50%, 03/01/10 $ 249,366 270,054 - ------------------------------------------------------------------------- 6.50%, 05/01/16 to 01/01/31 424,096 443,387 - ------------------------------------------------------------------------- 7.00%, 06/01/16 to 07/01/29 82,725 88,073 - ------------------------------------------------------------------------- 6.00%, 06/01/17 330,402 345,313 - ------------------------------------------------------------------------- Pass Through Ctfs., TBA, 6.00%, 05/01/33(j) 350,000 364,952 ========================================================================= 1,511,779 ========================================================================= FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)-2.43% Pass Through Ctfs., 6.50%, 10/01/16 to 11/01/31 1,182,738 1,239,575 - ------------------------------------------------------------------------- 7.00%, 05/01/17 to 12/01/31 752,597 797,424 - ------------------------------------------------------------------------- 7.50%, 10/01/29 to 05/01/32 806,519 859,827 - ------------------------------------------------------------------------- 8.00%, 06/01/31 to 04/01/32 382,150 412,808 - ------------------------------------------------------------------------- Pass Through Ctfs., TBA, 6.00%, 05/01/33(j) 230,000 240,080 ========================================================================= 3,549,714 ========================================================================= GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)-0.39% Pass Through Ctfs., 7.50%, 06/15/23 106,466 114,445 - ------------------------------------------------------------------------- 8.00%, 09/20/26 308,962 333,474 - ------------------------------------------------------------------------- 6.50%, 11/15/31 84,650 89,051 - ------------------------------------------------------------------------- 6.00%, 11/15/32 37,056 38,824 ========================================================================= 575,794 ========================================================================= Total U.S. Government Agency Securities (Cost $5,502,582) 5,637,287 =========================================================================
PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------- ASSET-BACKED SECURITIES-2.55% AIRLINES-1.02% Air 2 US-Series C, Equipment Trust Ctfs., 10.13%, 10/01/20 (Acquired 10/28/99; Cost $438,618)(a)(b) $ 438,618 $ 24,124 - ------------------------------------------------------------------------- Continental Airlines, Inc. Series 974A, Pass Through Ctfs., 6.90%, 01/02/18 509,316 429,098 - ------------------------------------------------------------------------- Series 2000-1, Class A-1, Sr. Pass Through Ctfs., 8.05%, 11/01/20 276,567 236,119 - ------------------------------------------------------------------------- Series 2000-2, Class A-1, Sr. Sec. Pass Through Ctfs., 7.71%, 04/02/21 290,910 248,001 - ------------------------------------------------------------------------- United Air Lines, Inc.-Series 2000-1, Class A-2, Pass Through Ctfs., 7.73%, 07/01/10 800,000 546,000 ========================================================================= 1,483,342 ========================================================================= DIVERSIFIED FINANCIAL SERVICES-1.37% Citicorp Lease Series 1999-1, Class A1, Pass Through Ctfs., 7.22%, 06/15/05 (Acquired 10/03/02; Cost $159,730)(a)(b) 147,502 160,184 - ------------------------------------------------------------------------- Series 1999-1, Class A2, Pass Through Ctfs., 8.04%, 12/15/19 (Acquired 06/01/00-01/25/01; Cost $1,114,660)(a)(b) 1,100,000 1,321,573 - ------------------------------------------------------------------------- Premium Asset Trust-Series 2001-6, Sec. Notes, 5.25%, 07/19/04 (Acquired 07/11/01; Cost $499,340)(a)(b) 500,000 520,828 ========================================================================= 2,002,585 ========================================================================= ELECTRIC UTILITIES-0.16% Beaver Valley II Funding Corp., SLOBS, 9.00%, 06/01/17 200,000 230,204 ========================================================================= Total Asset-Backed Securities (Cost $4,225,711) 3,716,131 ========================================================================= SHARES EQUITY INTERESTS-0.56% BROADCASTING & CABLE TV-0.02% Knology, Inc. Series D, Conv. Pfd. (Acquired 01/06/98; Cost $0)(a)(b)(k) 17,253 25,880 - ------------------------------------------------------------------------- Wts., expiring 10/22/07 (Acquired 03/12/98; Cost $0)(a)(b)(l)(m) 700 0 ========================================================================= 25,880 ========================================================================= INTEGRATED TELECOMMUNICATION SERVICES-0.00% NTELOS Inc.-Wts., expiring 08/15/10 (Acquired 11/15/00; Cost $0)(a)(b)(l) 535 5 ========================================================================= RAILROADS-0.00% RailAmerica Inc.-Wts., expiring 08/15/10 (Acquired 10/01/00; Cost $0)(a)(b)(l) 375 2,126 =========================================================================
F-6
MARKET SHARES VALUE - ------------------------------------------------------------------------- REAL ESTATE-0.54% First Republic Capital Corp.-Series A, Pfd. (Acquired 05/26/99; Cost $750,000)(a)(b) 750 $ 787,500 ========================================================================= Total Equity Interests (Cost $750,000) 815,511 ========================================================================= MONEY MARKET FUNDS-3.76% STIC Liquid Assets Portfolio(n) 2,742,148 2,742,148 - ------------------------------------------------------------------------- STIC Prime Portfolio(n) 2,742,148 2,742,148 ========================================================================= Total Money Market Funds (Cost $5,484,296) 5,484,296 ========================================================================= TOTAL INVESTMENTS-100.98% (Cost $139,681,485) 147,352,206 ========================================================================= OTHER ASSETS LESS LIABILITIES-(0.98%) (1,435,466) ========================================================================= NET ASSETS-100.00% $145,916,740 _________________________________________________________________________ =========================================================================
Investment Abbreviations: AUD - Australian Dollar CAD - Canadian Dollar Conv. - Convertible Ctfs. - Certificates Deb. - Debentures Disc. - Discounted EUR - Euro GBP - British Pound Sterling Gtd. - Guaranteed Jr. - Junior NZD - New Zealand Dollar PATS - Pass Through Asset Trust Securities Pfd. - Preferred PIK - Payment in Kind RAPS - Redeemable and Putable Securities Sec. - Secured SLOBS - Secured Lease Obligation Securities Sr. - Senior Sub. - Subordinated TBA - To Be Announced Unsec. - Unsecured Unsub. - Unsubordinated Wts. - Warrants
Notes to Schedule of Investments: (a) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction); the security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at 04/30/03 was $11,158,815, which represented 7.65% of the Fund's net assets. (b) Security considered to be illiquid. The aggregate market value of these securities at 04/30/03 was $10,207,938 which represented 7.00% of the Fund's net assets. (c) Zero coupon bond issued at a discount. The interest rate shown represents the yield to maturity at issue. (d) Interest rates are redetermined semi-annually. Rates shown are rates in effect on 04/30/03. (e) Defaulted security. Currently, the issuer is in default with respect to interest payments. (f) Interest rates are redetermined monthly. Rates shown are rates in effect on 04/30/03. (g) Principal and interest are secured by bond insurance provided by one of the following companies: Ambac Assurance Corp. or MBIA Insurance Co. (h) Discounted note at issue. The interest rate represents the coupon rate at which the note will accrue at a specified future date. (i) Foreign denominated security. Par value is denominated in currency indicated. (j) Security purchased on forward commitment basis. These securities are subject to dollar roll transactions. See Note 1 Section G. (k) Non-income producing security. (l) Non-income producing security acquired as part of a unit with or in exchange for other securities. (m) Security fair valued in accordance with the procedures established by the Board of Directors. (n) The money market fund and the Fund are affiliated by having the same investment advisor. See Notes to Financial Statements. F-7 STATEMENT OF ASSETS AND LIABILITIES April 30, 2003 (Unaudited) ASSETS: Investments, at market value (cost $139,681,485) $147,352,206 - ----------------------------------------------------------- Foreign currencies, at value (cost $147,651) 151,554 - ----------------------------------------------------------- Receivables for: Investments sold 8,078,461 - ----------------------------------------------------------- Capital stock sold 572,243 - ----------------------------------------------------------- Dividends and interest 2,519,639 - ----------------------------------------------------------- Investment for deferred compensation plan 31,995 - ----------------------------------------------------------- Other assets 13,295 =========================================================== Total assets 158,719,393 ___________________________________________________________ =========================================================== LIABILITIES: Payables for: Investments purchased 12,177,810 - ----------------------------------------------------------- Capital stock reacquired 209,381 - ----------------------------------------------------------- Dividends 153,868 - ----------------------------------------------------------- Deferred compensation plan 31,995 - ----------------------------------------------------------- Accrued distribution fees 88,799 - ----------------------------------------------------------- Accrued directors' fees 2,002 - ----------------------------------------------------------- Accrued transfer agent fees 62,292 - ----------------------------------------------------------- Accrued operating expenses 76,506 =========================================================== Total liabilities 12,802,653 =========================================================== Net assets applicable to shares outstanding $145,916,740 ___________________________________________________________ =========================================================== NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $170,515,537 - ----------------------------------------------------------- Undistributed net investment income (939,598) - ----------------------------------------------------------- Undistributed net realized gain (loss) from investment securities, foreign currencies and foreign currency contracts (31,311,599) - ----------------------------------------------------------- Unrealized appreciation of investment securities and foreign currencies 7,652,400 =========================================================== $145,916,740 ___________________________________________________________ =========================================================== NET ASSETS: Class A $111,930,401 ___________________________________________________________ =========================================================== Class B $ 29,685,983 ___________________________________________________________ =========================================================== Class C $ 4,300,356 ___________________________________________________________ =========================================================== CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 240,000,000 - ----------------------------------------------------------- Outstanding 12,643,706 ___________________________________________________________ =========================================================== Class B: Authorized 240,000,000 - ----------------------------------------------------------- Outstanding 3,353,438 ___________________________________________________________ =========================================================== Class C: Authorized 240,000,000 - ----------------------------------------------------------- Outstanding 486,136 ___________________________________________________________ =========================================================== Class A: Net asset value per share $ 8.85 - ----------------------------------------------------------- Offering price per share: (Net asset value of $8.85 divided by 95.25%) $ 9.29 ___________________________________________________________ =========================================================== Class B: Net asset value and offering price per share $ 8.85 ___________________________________________________________ =========================================================== Class C: Net asset value and offering price per share $ 8.85 ___________________________________________________________ ===========================================================
See Notes to Financial Statements. F-8 STATEMENT OF OPERATIONS For the six months ended April 30, 2003 (Unaudited) INVESTMENT INCOME: Interest $ 3,875,191 - ------------------------------------------------------------------------- Dividends 39,375 - ------------------------------------------------------------------------- Dividends from affiliated money market funds 18,871 ========================================================================= Total investment income 3,933,437 ========================================================================= EXPENSES: Advisory fees 473,928 - ------------------------------------------------------------------------- Administrative services fees 24,795 - ------------------------------------------------------------------------- Custodian fees 24,090 - ------------------------------------------------------------------------- Distribution fees -- Class A 261,063 - ------------------------------------------------------------------------- Distribution fees -- Class B 138,319 - ------------------------------------------------------------------------- Distribution fees -- Class C 16,595 - ------------------------------------------------------------------------- Transfer agent fees 204,226 - ------------------------------------------------------------------------- Directors' fees 3,891 - ------------------------------------------------------------------------- Printing fees 82,798 - ------------------------------------------------------------------------- Other 68,798 ========================================================================= Total expenses 1,298,503 ========================================================================= Less: Fees waived and expenses paid indirectly (374,266) ========================================================================= Net expenses 924,237 ========================================================================= Net investment income 3,009,200 ========================================================================= REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND FOREIGN CURRENCIES: Net realized gain from: Investment securities 2,062,887 - ------------------------------------------------------------------------- Foreign currencies 58,485 ========================================================================= 2,121,372 ========================================================================= Change in net unrealized appreciation (depreciation) of: Investment securities 8,813,146 - ------------------------------------------------------------------------- Foreign currencies (19,076) ========================================================================= 8,794,070 ========================================================================= Net gain from investment securities and foreign currencies 10,915,442 ========================================================================= Net increase in net assets resulting from operations $13,924,642 _________________________________________________________________________ =========================================================================
See Notes to Financial Statements. F-9 STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2003 and the year ended October 31, 2002 (Unaudited)
APRIL 30, OCTOBER 31, 2003 2002 ========================================================================================== OPERATIONS: Net investment income $ 3,009,200 $ 8,415,168 - ------------------------------------------------------------------------------------------ Net realized gain (loss) from investment securities, foreign currencies and foreign currency contracts 2,121,372 (13,084,567) - ------------------------------------------------------------------------------------------ Change in net unrealized appreciation (depreciation) of investment securities, foreign currencies and foreign currency contracts 8,794,070 (774,842) ========================================================================================== Net increase (decrease) in net assets resulting from operations 13,924,642 (5,444,241) ========================================================================================== Distributions to shareholders from net investment income: Class A (2,800,443) (6,559,894) - ------------------------------------------------------------------------------------------ Class B (673,850) (1,908,170) - ------------------------------------------------------------------------------------------ Class C (80,207) (135,148) ========================================================================================== Total distributions from net investment income (3,554,500) (8,603,212) ========================================================================================== Return of capital: Class A -- (325,653) - ------------------------------------------------------------------------------------------ Class B -- (102,465) - ------------------------------------------------------------------------------------------ Class C -- (7,344) ========================================================================================== Total return of capital -- (435,462) ========================================================================================== Net increase (decrease) in net assets resulting from distributions (3,554,500) (9,038,674) ========================================================================================== Share transactions-net: Class A 4,704,423 (687,042) - ------------------------------------------------------------------------------------------ Class B 1,228,498 (15,595,190) - ------------------------------------------------------------------------------------------ Class C 1,445,233 632,175 ========================================================================================== Net increase (decrease) in net assets resulting from share transactions 7,378,154 (15,650,057) ========================================================================================== Net increase (decrease) in net assets 17,748,296 (30,132,972) ========================================================================================== NET ASSETS: Beginning of period 128,168,444 158,301,416 ========================================================================================== End of period $145,916,740 $128,168,444 __________________________________________________________________________________________ ==========================================================================================
See Notes to Financial Statements. F-10 NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM Global Income 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 series management investment company consisting of six separate portfolios. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be 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 primary investment objective is high current income. Its secondary objective is protection of principal and growth of capital. Each company listed in the Schedule of Investments is organized in the United States unless otherwise noted. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued at the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors of the Company. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Occasionally, events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not be reflected in the computation of the Fund's net asset value. If a development/event is so significant that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Directors. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Premiums and discounts are amortized and/or accreted for financial reporting purposes. The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class. C. DISTRIBUTIONS -- Distributions from income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes. D. 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 gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. E. FOREIGN CURRENCY TRANSLATIONS -- Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases F-11 and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. 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. G. DOLLAR ROLL TRANSACTIONS -- The Fund may engage in dollar roll transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to repurchase a substantially similar security (same type, coupon and maturity) from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. During the period between the sale and repurchase, the Fund will not be entitled to receive interest and principal payments on securities sold. Proceeds of the sale will be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. The Fund will segregate assets to cover its obligations under dollar roll transactions. The difference between the selling price and the future repurchase price is recorded as an adjustment to interest income. Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund's use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed transaction costs. H. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses are charged to each class pursuant to a transfer agency and service agreement adopted by the Fund with respect to such class. All other expenses are allocated among the classes based on relative net assets. 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 investment advisory agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.70% of the first $1 billion of the Fund's average daily net assets, plus 0.65% of the Fund's average daily net assets in excess of $1 billion. AIM has contractually agreed to limit total annual operating expenses (excluding interest, taxes, dividends on short sales, extraordinary items and increases in expenses due to expense offset arrangements, if any) for Class A shares to 1.50%. AIM has voluntarily agreed to limit total annual operating expenses (excluding interest, taxes, dividends on short sales, extraordinary items and increases in expenses due to expense offset arrangements, if any) for Class A to 1.25%. Voluntary fee waivers or reimbursements may be rescinded, terminated or modified at any time without further notice to investors. During periods of waivers or reimbursements, to the extent the annualized expense ratio does not exceed the contractual limit for the period committed, AIM will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. Further, AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds in which the Fund has invested (excluding investments made in money market funds with cash collateral from securities loaned by the Fund). For the six months ended April 30, 2003, AIM waived fees of $373,321. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2003, AIM was paid $24,795 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and shareholder services to the Fund. During the six months ended April 30, 2003, AFS retained $105,628 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, Class B and Class C shares of the Fund. The Company has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares, Class B shares and Class C shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays AIM Distributors compensation at the annual rate of 0.50% of the Fund's average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of these amounts, the Fund may pay a service fee of 0.25% of the average daily net assets of the Class A, Class B or Class C shares to selected dealers and financial institutions who furnish continuing personal shareholder services to their customers who purchase and own the appropriate class of shares of the Fund. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the six months ended April 30, 2003, the Class A, Class B and Class C shares paid $261,063, $138,319 and $16,595, respectively. F-12 Front-end sales commissions and contingent deferred sales charges (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. Contingent deferred sales charges ("CDSCs") are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2003, AIM Distributors retained $5,920 in front-end sales commissions from the sale of Class A shares and $0, $0 and $51 for Class A, Class B and Class C shares, respectively, for CDSCs imposed upon redemptions by shareholders. Certain officers and directors of the Company are officers and directors of AIM, AFS and/or AIM Distributors. During the six months ended April 30, 2003, the Fund paid legal fees of $1,311 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Company's directors. A member of that firm is a director of the Company. NOTE 3--INDIRECT EXPENSES For the six months ended April 30, 2003, the Fund received reductions in transfer agency fees from AFS (an affiliate of AIM) of $945 under an expense offset arrangement which resulted in a reduction of the Fund's total expenses of $945. NOTE 4--DIRECTORS' FEES Directors' fees represent remuneration paid to each director who is not an "interested person" of AIM. Directors have the option to defer compensation payable by the Company. The Directors deferring compensation have the option to select various AIM Funds in which all or part of their deferral accounts shall be deemed to be invested. NOTE 5--BORROWINGS AIM has established an interfund lending facility for temporary borrowings by the AIM Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. During the reporting period, the Fund was a participant in a committed line of credit facility with a syndicate administered by Citibank, N.A. The Fund could borrow up to the lesser of (i) $500,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which were parties to the line of credit could borrow on a first come, first served basis. The funds which were party to the line of credit were charged a commitment fee of 0.09% on the unused balance of the committed line. The commitment fee was allocated among the funds based on their respective average net assets for the period. The committed line of credit facility expired May 20, 2003. During the six months ended April 30, 2003, the Fund did not borrow under the interfund lending or the committed line of credit facility. NOTE 6--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of distributable earnings will be updated at the Fund's fiscal year-end. The Fund has a capital loss carryforward for tax purposes which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD - ----------------------------------------------------------------------------- October 31, 2006 $ 3,646,989 - ----------------------------------------------------------------------------- October 31, 2007 7,391,799 - ----------------------------------------------------------------------------- October 31, 2008 2,830,735 - ----------------------------------------------------------------------------- October 31, 2009 6,435,460 - ----------------------------------------------------------------------------- October 31, 2010 13,127,988 ============================================================================= Total capital loss carryforward $33,432,971 _____________________________________________________________________________ =============================================================================
NOTE 7--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended April 30, 2003 was $85,766,832 and $77,485,991, respectively. The amount of unrealized appreciation (depreciation) of investment securities, for tax purposes, as of April 30, 2003 is as follows: Aggregate unrealized appreciation of investment securities $ 8,959,546 - ----------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (1,708,109) =========================================================== Net unrealized appreciation of investment securities $ 7,251,437 ___________________________________________________________ =========================================================== Cost of investments for tax purposes is $140,100,769.
F-13 NOTE 8--CAPITAL STOCK The Fund currently offers three different classes of shares: Class A shares, Class B shares and Class C shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with a CDSC. Under some circumstances, Class A shares are subject to CDSCs. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Changes in capital stock outstanding during the six months ended April 30, 2003 and the year ended October 31, 2002 were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 -------------------------- -------------------------- SHARES AMOUNT SHARES AMOUNT - ---------------------------------------------------------------------------------------------------------------------- Sold: Class A 2,586,224 $ 22,281,140 1,812,754 $ 15,524,527 - ---------------------------------------------------------------------------------------------------------------------- Class B 775,448 6,668,854 608,823 5,175,923 - ---------------------------------------------------------------------------------------------------------------------- Class C 359,234 3,094,135 260,182 2,201,898 ====================================================================================================================== Issued as reinvestment of dividends: Class A 242,315 2,084,207 594,914 5,055,107 - ---------------------------------------------------------------------------------------------------------------------- Class B 59,551 512,160 173,934 1,483,423 - ---------------------------------------------------------------------------------------------------------------------- Class C 7,756 66,819 13,549 114,744 ====================================================================================================================== Conversion of Class B shares to Class A shares: Class A 115,687 987,283 1,153,847 9,915,121 - ---------------------------------------------------------------------------------------------------------------------- Class B (115,527) (987,283) (1,148,045) (9,915,121) ====================================================================================================================== Reacquired: Class A (2,406,465) (20,648,207) (3,675,293) (31,181,797) - ---------------------------------------------------------------------------------------------------------------------- Class B (581,258) (4,965,233) (1,449,001) (12,339,415) - ---------------------------------------------------------------------------------------------------------------------- Class C (199,333) (1,715,721) (199,780) (1,684,467) ====================================================================================================================== 843,632 $ 7,378,154 (1,854,116) $(15,650,057) ______________________________________________________________________________________________________________________ ======================================================================================================================
F-14 NOTE 9--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
CLASS A -------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.20 $ 9.05 $ 8.91 $ 9.72 $ 10.60 $ 10.93 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income 0.19(a) 0.52(a)(b) 0.61 0.66 0.67 0.71 - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.69 (0.82) 0.14 (0.79) (0.86) (0.27) ================================================================================================================================= Total from investment operations 0.88 (0.30) 0.75 (0.13) (0.19) 0.44 ================================================================================================================================= Less distributions: Dividends from net investment income (0.23) (0.52) (0.60) (0.13) (0.61) (0.61) - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gains -- -- -- -- -- (0.07) - --------------------------------------------------------------------------------------------------------------------------------- Returns of capital -- (0.03) (0.01) (0.55) (0.08) (0.09) ================================================================================================================================= Total distributions (0.23) (0.55) (0.61) (0.68) (0.69) (0.77) ================================================================================================================================= Net asset value, end of period $ 8.85 $ 8.20 $ 9.05 $ 8.91 $ 9.72 $ 10.60 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(c) 10.81% (3.33)% 8.64% (1.38)% (1.94)% 3.95% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $111,930 $99,211 $110,579 $105,636 $51,077 $58,115 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets: With fee waivers 1.25%(d) 1.25% 1.25% 1.25% 1.25% 1.23% - --------------------------------------------------------------------------------------------------------------------------------- Without fee waivers 1.80%(d) 1.69% 1.66% 1.71% 1.67% 1.73% ================================================================================================================================= Ratio of net investment income to average net assets 4.56%(d) 6.05%(b) 6.75% 6.97% 6.54% 6.38% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 59% 73% 92% 184% 93% 47% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) As required, effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on debt securities and recording paydown gains and losses as adjustments to interest income. Had the Fund not amortized premiums on debt securities or recorded paydown gains and losses as adjustments to interest income, the net investment income per share would have been $0.53 and the ratio of net investment income to average net assets would have been 6.26%. In accordance with the AICPA Audit and Accounting Guide for Investment Companies, per share and ratios for periods prior to November 1, 2001, have not been restated to reflect this change in presentation. (c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (d) Ratios are annualized and based on average daily net assets of $105,290,396. (e) Not annualized for periods less than one year. F-15 NOTE 9--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS B ------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.19 $ 9.05 $ 8.91 $ 9.72 $ 10.59 $ 10.92 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income 0.17(a) 0.47(a)(b) 0.56 0.61 0.62 0.65 - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) 0.70 (0.82) 0.14 (0.79) (0.85) (0.27) ================================================================================================================================= Total from investment operations 0.87 (0.35) 0.70 (0.18) (0.23) 0.38 ================================================================================================================================= Less distributions: Dividends from net investment income (0.21) (0.48) (0.55) (0.12) (0.56) (0.55) - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gains -- -- -- -- -- (0.07) - --------------------------------------------------------------------------------------------------------------------------------- Returns of capital -- (0.03) (0.01) (0.51) (0.08) (0.09) ================================================================================================================================= Total distributions (0.21) (0.51) (0.56) (0.63) (0.64) (0.71) ================================================================================================================================= Net asset value, end of period $ 8.85 $ 8.19 $ 9.05 $ 8.91 $ 9.72 $ 10.59 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(c) 10.67% (3.93)% 8.08% (1.94)% (2.37)% 3.38% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $29,686 $26,348 $45,510 $60,391 $34,423 $36,525 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets: With fee waivers 1.75%(d) 1.75% 1.75% 1.75% 1.75% 1.75% - --------------------------------------------------------------------------------------------------------------------------------- Without fee waivers 2.30%(d) 2.19% 2.16% 2.21% 2.17% 2.25% ================================================================================================================================= Ratio of net investment income to average net assets 4.06%(d) 5.55%(b) 6.25% 6.47% 6.04% 5.87% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(e) 59% 73% 92% 184% 93% 47% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) As required, effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on debt securities and recording paydown gains and losses as adjustments to interest income. Had the Fund not amortized premiums on debt securities or recorded paydown gains and losses as adjustments to interest income, the net investment income per share would have been $0.49 and the ratio of net investment income to average net assets would have been 5.76%. In accordance with the AICPA Audit and Accounting Guide for Investment Companies, per share and ratios for periods prior to November 1, 2001, have not been restated to reflect this change in presentation. (c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (d) Ratios are annualized and based on average daily net assets of $27,893,134. (e) Not annualized for periods less than one year. F-16 NOTE 9--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS C ---------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 8.19 $ 9.05 $ 8.91 $ 9.71 $10.59 $10.92 - ------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income 0.17(a) 0.47(a)(b) 0.56 0.60 0.62 0.66 - ------------------------------------------------------------------------------------------------------------------------------ Net gains (losses) on securities (both realized and unrealized) 0.70 (0.82) 0.14 (0.77) (0.86) (0.28) ============================================================================================================================== Total from investment operations 0.87 (0.35) 0.70 (0.17) (0.24) 0.38 ============================================================================================================================== Less distributions: Dividends from net investment income (0.21) (0.48) (0.55) (0.12) (0.56) (0.55) - ------------------------------------------------------------------------------------------------------------------------------ Distributions from net realized gains -- -- -- -- -- (0.07) - ------------------------------------------------------------------------------------------------------------------------------ Returns of capital -- (0.03) (0.01) (0.51) (0.08) (0.09) ============================================================================================================================== Total distributions (0.21) (0.51) (0.56) (0.63) (0.64) (0.71) ============================================================================================================================== Net asset value, end of period $ 8.85 $ 8.19 $ 9.05 $ 8.91 $ 9.71 $10.59 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Total return(c) 10.68% (3.93)% 8.08% (1.84)% (2.47)% 3.39% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratios/supplemental data: Net assets, end of period (000s omitted) $4,300 $2,609 $2,212 $1,780 $1,884 $1,785 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratio of expenses to average net assets: With fee waivers 1.75%(d) 1.75% 1.75% 1.75% 1.75% 1.73% - ------------------------------------------------------------------------------------------------------------------------------ Without fee waivers 2.30%(d) 2.19% 2.16% 2.21% 2.17% 2.22% ============================================================================================================================== Ratio of net investment income to average net assets 4.06%(d) 5.55%(b) 6.25% 6.47% 6.04% 5.88% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Portfolio turnover rate(e) 59% 73% 92% 184% 93% 47% ______________________________________________________________________________________________________________________________ ==============================================================================================================================
(a) Calculated using average shares outstanding. (b) As required, effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on debt securities and recording paydown gains and losses as adjustments to interest income. Had the Fund not amortized premiums on debt securities or recorded paydown gains and losses as adjustments to interest income, the net investment income per share would have been $0.49 and the ratio of net investment income to average net assets would have been 5.76%. In accordance with the AICPA Audit and Accounting Guide for Investment Companies, per share and ratios for periods prior to November 1, 2001, have not been restated to reflect this change in presentation. (c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (d) Ratios are annualized and based on average daily net assets of $3,346,567. (e) Not annualized for periods less than one year. NOTE 10--SUBSEQUENT EVENT The Board of Directors unanimously approved, on February 6, 2003, and shareholders subsequently approved, on June 4, 2003, an Agreement and Plan of Reorganization (the "Plan") pursuant to which AIM Global Income Fund ("Global Income Fund"), a series of AIM International Funds, Inc., would transfer all of its assets to AIM Income Fund ("Income Fund"), a series of AIM Investment Securities Funds. Effective on or about June 23, 2003, the transaction is expected to become effective and shareholders of Global Income Fund would receive shares of Income Fund in exchange for their shares of Global Income Fund, and Global Income Fund would cease operations. Effective on May 22, 2003, Global Income Fund was closed to new investors. F-17 OTHER INFORMATION DIRECTORS AND OFFICERS BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND Robert H. Graham Robert H. Graham 11 Greenway Plaza Chairman and President Suite 100 Mark H. Williamson Houston, TX 77046 Mark H. Williamson Frank S. Bayley Executive Vice President INVESTMENT ADVISOR Bruce L. Crockett Kevin M. Carome A I M Advisors, Inc. Senior Vice President 11 Greenway Plaza Albert R. Dowden Suite 100 Gary T. Crum Houston, TX 77046 Edward K. Dunn Jr. Senior Vice President TRANSFER AGENT Jack M. Fields Dana R. Sutton Vice President and Treasurer A I M Fund Services, Inc. Carl Frischling P.O. Box 4739 Robert G. Alley Houston, TX 77210-4739 Prema Mathai-Davis Vice President CUSTODIAN Lewis F. Pennock Stuart W. Coco Vice President State Street Bank and Trust Company Ruth H. Quigley 225 Franklin Street Melville B. Cox Boston, MA 02110 Louis S. Sklar Vice President COUNSEL TO THE FUND Edgar M. Larsen Vice President Ballard Spahr Andrews & Ingersoll, LLP Nancy L. Martin 1735 Market Street Secretary Philadelphia, PA 19103 COUNSEL TO THE TRUSTEES Kramer, Levin, Naftalis & Frankel LLP 919 Third Avenue New York, NY 10022 DISTRIBUTOR A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046
THE AIM FAMILY OF FUNDS--Registered Trademark-- DOMESTIC EQUITY INTERNATIONAL/GLOBAL EQUITY FIXED INCOME AIM Aggressive Growth Fund AIM Asia Pacific Growth Fund(2) TAXABLE AIM Balanced Fund* AIM Developing Markets Fund AIM Basic Balanced Fund* AIM European Growth Fund(2) AIM Floating Rate Fund AIM Basic Value Fund AIM European Small Company Fund AIM High Yield Fund AIM Blue Chip Fund AIM Global Aggressive Growth Fund AIM Income Fund AIM Capital Development Fund AIM Global Growth Fund AIM Intermediate Government Fund AIM Charter Fund AIM Global Trends Fund AIM Limited Maturity Treasury Fund(6,7) AIM Constellation Fund AIM Global Value Fund(5) AIM Money Market Fund AIM Dent Demographic Trends Fund AIM International Core Equity Fund(2) AIM Short-Term Bond Fund AIM Diversified Dividend Fund(1) AIM International Emerging Growth Fund AIM Total Return Bond Fund AIM Emerging Growth Fund AIM International Growth Fund(2) AIM Large Cap Basic Value Fund AIM Large Cap Growth Fund AIM Libra Fund TAX-FREE AIM Mid Cap Basic Value Fund SECTOR EQUITY AIM Mid Cap Core Equity Fund(2) AIM High Income Municipal Fund AIM Mid Cap Growth Fund AIM Global Energy Fund AIM Municipal Bond Fund AIM Opportunities I Fund(2,3) AIM Global Financial Services Fund AIM Tax-Exempt Cash Fund AIM Opportunities II Fund(2,3) AIM Global Health Care Fund AIM Tax-Free Intermediate Fund(6,7) AIM Opportunities III Fund(2,3) AIM Global Science and Technology Fund(2) AIM Premier Equity Fund(2) AIM Global Utilities Fund AIM Premier Equity II Fund(2) AIM New Technology Fund AIM Select Equity Fund AIM Real Estate Fund AIM Small Cap Equity Fund AIM Small Cap Growth Fund(4) AIM Weingarten Fund *Domestic equity and income fund
YOUR GOALS. OUR SOLUTIONS.--Servicemark-- College Separately Mutual Retirement Annuities Savings Managed Offshore Alternative Cash Funds Products Plans Accounts Products Investments Management
(AIM INVESTMENTS LOGO APPEARS HERE) --Servicemark-- (1) Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. (2) The following fund name changes became effective July 1, 2002: AIM Asian Growth Fund renamed AIM Asia Pacific Growth Fund; AIM European Development Fund renamed AIM European Growth Fund; AIM Global Telecommunications and Technology Fund renamed AIM Global Science and Technology Fund; AIM International Equity Fund renamed AIM International Growth Fund; AIM International Value Fund renamed AIM International Core Equity Fund; AIM Large Cap Opportunities Fund renamed AIM Opportunities III Fund; AIM Mid Cap Equity Fund renamed AIM Mid Cap Core Equity Fund; AIM Mid Cap Opportunities Fund renamed AIM Opportunities II Fund; AIM Small Cap Opportunities Fund renamed AIM Opportunities I Fund; AIM Value Fund renamed AIM Premier Equity Fund; AIM Value II Fund renamed AIM Premier Equity II Fund. (3) Effective October 1, 2002, the fund was reopened to new investors. (4) AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. (5) Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. (6) Class A shares closed to new investors on October 30, 2002. (7) Class A3 shares were first offered on October 31, 2002. For more complete information about any AIM fund, including sales charges and expenses, ask your financial advisor for a prospectus. Please read it carefully before investing. This brochure is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Please read it carefully before investing. If used after July 20, 2003, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual Funds distributed by A I M Distributors, Inc. A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $115 billion in assets for approximately 9 million shareholders, including individual investors, corporate clients and financial institutions. The AIM Family of Funds--Registered Trademark-- is distributed nationwide. AIM is a subsidiary of AMVESCAP PLC, one of the world's largest independent financial services companies with $319 billion in assets under management. Data as of March 31, 2003. GLI-SAR-1 AIMinvestments.com SEMIANNUAL REPORT TO SHAREHOLDERS / APRIL 30, 2003 AIM INTERNATIONAL GROWTH FUND AIM International Growth Fund seeks to provide long-term growth of capital. The fund seeks to meet its objective by investing in a diversified portfolio of international equity securities. [COVER IMAGE] [AIM INVESTMENTS LOGO APPEARS HERE] --Servicemark-- YOUR GOALS. OUR SOLUTIONS. --Servicemark-- NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This report may be distributed only to shareholders or to persons who have received a current prospectus of the fund. FUND DATA ================================================================================ TOP COUNTRIES As of 4/30/03 - -------------------------------------------------------------------------------- [PIE CHART] UNITED KINGDOM 19.7% OTHER 23.4% SOUTH KOREA 2.6% ISRAEL 3.2% GERMANY 3.5% IRELAND 3.8% ITALY 4.2% SPAIN 5.1% CANADA 10.4% FRANCE 10.7% JAPAN 13.4% TOTAL NUMBER OF HOLDINGS* 86 TOTAL NET ASSETS $1.5 BILLION ================================================================================ ================================================================================ AVERAGE ANNUAL TOTAL RETURNS As of 4/30/03, including sales charges Class A Shares Inception (4/7/92) 5.05% 10 Years 3.98 5 Years -6.90 1 Year -20.89 Class B Shares Inception (9/15/94) 1.28% 5 Years -6.86 1 Year -21.01 Class C Shares Inception (8/4/97) -4.47% 5 Years -6.52 1 Year -17.67 Class R Shares** 10 Years 4.33% 5 Years -6.09 1 Year -16.69 **Class R shares are generally only available to retirement plans such as section 401 and 457 plans, section 403 plans sponsored by a section 501(c)(3) organization and IRA rollovers from such plans if an AIM fund was offered. They are sold at net asset value, that is, without up-front sales charges. Class R shares were first offered on June 3, 2002. Returns prior to that date are hypothetical results based on Class A share performance at net asset value, adjusted to reflect Class R 12b-1 fees. (The inception date of Class A shares is 4/7/92) Class R share returns do not include a 0.75% contingent deferred sales charge that may be imposed on a total redemption of retirement plan assets within the first year. ================================================================================ ================================================================================ FUND VS. INDEXES Total Returns 10/31/02-4/30/03 excluding sales charges CLASS A SHARES -0.32% CLASS B SHARES -0.67 CLASS C SHARES -0.66 CLASS R SHARES -0.79 MSCI EAFE INDEX (Broad Market Index) 1.81 LIPPER INTERNATIONAL FUND INDEX (Peer Group Index) 1.61 Source: Lipper, Inc. In addition to returns as of the close of the reporting period, industry regulations require us to provide average annual total returns (including sales charges) as of 3/31/03, the most recent calendar quarter-end, which were: Class A shares, inception (4/7/92), 4.53%; ten years, 3.86%; five years, -7.71%; one year, -25.24%. Class B shares, inception (9/15/94), 0.61%; five years, -7.67%; one year, -25.39%. Class C shares, inception (8/4/97), -5.50%; five years, - -7.34% one year, -22.23%. Class R shares, ten years, 4.22%; five years, -6.89%; one year, -21.23%. Past performance cannot guarantee comparable future results. DUE TO SIGNIFICANT MARKET VOLATILITY, RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN. CALL YOUR FINANCIAL ADVISOR FOR MORE CURRENT PERFORMANCE. ================================================================================
=================================================================================================================================== TOP 10 EQUITY HOLDINGS* TOP 10 INDUSTRIES* - ----------------------------------------------------------------------------------------------------------------------------------- 1. Teva Pharmaceutical Industries Ltd.-ADR (Israel) 3.2% 1. Banks 15.2% 2. Loblaw Cos. Ltd. (Canada) 2.8 2. Pharmaceuticals 10.0 3. Banco Popular Espanol S.A. (Spain) 2.5 3. Integrated Oil & Gas 8.4 4. Total S.A. (France) 2.2 4. Electronic Equipment & Instruments 6.1 5. Vodafone Group PLC (United Kingdom) 2.1 5. Food Retail 5.1 6. ENI S.p.A. (Italy) 2.1 6. Tobacco 3.9 7. Royal Bank of Scotland Group PLC (United Kingdom) 2.1 7. Automobile Manufacturers 3.8 8. Smith & Nephew PLC (United Kingdom) 2.1 8. Household Products 2.7 9. Imperial Tobacco Group PLC (United Kingdom) 2.0 9. Wireless Telecommunication Services 2.6 10. Unilever PLC (United Kingdom) 2.0 10. Office Electronics 2.5 *Excludes money market find holdings. The fund's holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security. ===================================================================================================================================
ABOUT FUND INFORMATION THROUGHOUT THIS REPORT: o Unless otherwise stated, information presented here is as of 4/30/03 and is based on total net assets. o Effective July 1, 2002, AIM International Equity Fund was renamed AIM International Growth Fund. o Effective May 1, 2003, after the close of the reporting period, the portfolio management team for AIM International Growth Fund is as follows: Shuxin Cao, Jason T. Holzer, Clas G. Olsson and Barrett K. Sides. o AIM International Growth Fund's performance figures are historical, and they reflect fund expenses, the reinvestment of distributions and changes in net asset value. o When sales charges are included in performance figures, Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C 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 CDSC on Class C shares is 1% for the first year after purchase. The performance of the fund's share classes will differ due to different sales charge structures and class expenses. o International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values 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. o The fund's investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than their original cost. o In the Schedule of Investments in this report, the fund's portfolio holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o The unmanaged MSCI Europe, Australasia and the Far East Index (the EAFE(R)) is a group of foreign securities tracked by Morgan Stanley Capital International. o The unmanaged Lipper International Fund Index represents an average of the 30 largest international funds tracked by Lipper, Inc., an independent mutual fund performance monitor, and is considered representative of international stocks. o A direct investment cannot be made in an index. Unless ~otherwise indicated, index results include reinvested dividends, and they do not include sales charges. Performance of an index of funds reflects fund expenses. Performance of a market index does not. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, aiminvestments.com. FOR MORE INFORMATION, PLEASE VISIT AIMinvestments.com. TO OUR SHAREHOLDERS DEAR SHAREHOLDER: [PHOTO OF This is the report on AIM International Growth Fund for the ROBERT H. six months ended April 30, 2003. You will note that we have GRAHAM] adopted a more concise format for our semiannual reports. Important information such as top holdings and performance as of the close of the reporting period appear on the ON THE CURRENCY opposite page. This letter will provide an overview of the FRONT, THE U.S. markets and your fund during the six months covered by this DOLLAR WAS WEAK report. As always, timely information about your fund and COMPARED TO MANY the markets in general is available at our Web site, FOREIGN CURRENCIES. aiminvestments.com. ROBERT H. GRAHAM MARKET CONDITIONS International markets, as measured by the unmanaged MSCI Europe, Australasia and the Far East Index (the EAFE--Registered Trademark--), a group of foreign securities tracked by Morgan Stanley Capital International, produced negative returns for the first quarter of 2003. International markets, however, rallied in April. This rally helped push international market returns into positive territory for the six-month reporting period. European markets rallied toward the close of the reporting period, with the MSCI (Morgan Stanley Capital International) Europe Index, often considered representative of the European equity market, gaining 13.49% in April. In European monetary affairs, the European Central Bank (ECB) cut its benchmark interest rate 25 basis points to 2.50% in March. It remained at that level as the reporting period closed. As widely discussed, in Asia, the epidemic of severe acute respiratory syndrome (SARS) dealt a blow to local economies. However, the MSCI All Country (AC) Asia Pacific Free ex-Japan Index, a group of developed and emerging Asian and Asia-Pacific markets (except Japan) covered by Morgan Stanley Capital International, rallied in April and was positive for the six-month reporting period. On the currency front, the U.S. dollar was weak compared to many foreign currencies. In particular, the euro showed strength as it appreciated nearly 13% against the dollar during the reporting period. Other notable currencies that gained ground on the dollar included the Australian dollar, Swiss franc, British pound and Canadian dollar. YOUR FUND Throughout the reporting period, fund managers Jason T. Holzer, Clas G. Olsson and Barrett K. Sides sought to identify companies, that in their view, have the potential for above-average long-term growth in earnings and prospects for future growth. At the end of the six-month reporting period, the fund's largest exposure was to companies in Europe (slightly over half the portfolio), followed by Asia, North America (Canada), Latin America and the South Pacific (Australia). The fund's Asian exposure was primarily in Japan. As of April 30, 2003, the fund had its largest exposure in the financials, consumer staples and healthcare sectors. Over the course of the reporting period, the fund's exposure to the consumer staples and telecommunications services sectors increased, while its weighting in consumer discretionary and industrials sectors decreased. The fund had 86 equity holdings at the end of the reporting period. We encourage you to visit our Web site, aiminvestments.com, for a wealth of information about your fund, including regular performance updates, quarterly details of portfolio composition, and much more. From our home page, click on Products & Performance, then Mutual Funds, and then select the type of information you wish to view. IN CLOSING I thank you for your continued participation in AIM International Growth Fund, and I look forward to reporting to you again in six months. If you have any questions, please consult your financial advisor to help you with your investment choices. As always, members of our award-winning Client Services department are ready to help. They can be reached at 800-959-4246. Sincerely, /s/ ROBERT H. GRAHAM Robert H. Graham Chairman April 30, 2003 SUPPLEMENT TO SEMIANNUAL REPORT DATED 4/30/03 AIM INTERNATIONAL GROWTH FUND INSTITUTIONAL CLASS SHARES The following information has been prepared to provide Institutional Class shareholders with a performance overview specific to their holdings. Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Performance of Institutional Class shares will differ from performance of Class A shares due to differing sales charges and class expenses. ================================================================================ AVERAGE ANNUAL TOTAL RETURNS For Periods Ended 4/30/03 ================================================================================ Inception (3/15/02) -14.02% 1 year -15.75 6 months -0.08* *NOT ANNUALIZED ================================================================================ ================================================================================ AVERAGE ANNUAL TOTAL RETURNS For Periods Ended 3/31/03 (most recent calendar quarter-end) ================================================================================ Inception (3/15/02) -19.64% 1 year -20.41 ================================================================================ Please note that past performance is not indicative of future results. More recent returns may be more or less than those shown. All returns assume reinvestment of distributions at net asset value. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. See full report for information on comparative benchmarks. If you have questions, please consult your fund prospectus or call AIM toll free at 800-451-4246. [AIM INVESTMENTS LOGO APPEARS HERE] --SERVICEMARK-- YOUR GOALS. OUR SOLUTIONS --SERVICEMARK-- A I M DISTRIBUTORS, INC. IGR-INS-2 FINANCIALS SCHEDULE OF INVESTMENTS April 30, 2003 (Unaudited)
MARKET SHARES VALUE - --------------------------------------------------------------------------- FOREIGN STOCKS & OTHER EQUITY INTERESTS-89.47% AUSTRALIA-1.63% Amcor Ltd. (Paper Packaging) 2,221,000 $ 11,563,926 - --------------------------------------------------------------------------- BHP Billiton Ltd. (Diversified Metals & Mining) 2,300,500 13,030,060 - --------------------------------------------------------------------------- BHP Steel Ltd. (Steel) 276,700 587,712 =========================================================================== 25,181,698 =========================================================================== BRAZIL-0.50% Companhia de Bebidas das Americas-ADR (Brewers) 386,300 7,683,507 =========================================================================== CANADA-10.37% Canadian National Railway Co. (Railroads) 186,500 9,060,913 - --------------------------------------------------------------------------- CP Railway Ltd. (Railroads) 391,700 9,098,500 - --------------------------------------------------------------------------- EnCana Corp. (Oil & Gas Exploration & Production) 597,300 19,586,407 - --------------------------------------------------------------------------- Loblaw Cos. Ltd. (Food Retail) (Acquired 11/10/00-11/14/02; Cost $35,585,025)(a) 1,089,000 42,539,063 - --------------------------------------------------------------------------- Manulife Financial Corp. (Life & Health Insurance) 305,600 8,151,607 - --------------------------------------------------------------------------- Petro-Canada (Integrated Oil & Gas) 550,700 18,158,195 - --------------------------------------------------------------------------- Royal Bank of Canada (Banks) 597,740 24,933,630 - --------------------------------------------------------------------------- Suncor Energy, Inc. (Integrated Oil & Gas) 1,747,700 28,758,540 =========================================================================== 160,286,855 =========================================================================== DENMARK-0.70% Novo Nordisk A.S.-Class B (Pharmaceuticals) 297,325 10,782,533 =========================================================================== FRANCE-10.66% Aventis S.A. (Pharmaceuticals) 296,450 15,084,779 - --------------------------------------------------------------------------- BNP Paribas S.A. (Banks) 240,100 11,291,251 - --------------------------------------------------------------------------- Pernod-Ricard S.A. (Distillers & Vintners) 334,836 29,444,997 - --------------------------------------------------------------------------- PSA Peugeot Citroen (Automobile Manufacturers) 202,965 9,517,661 - --------------------------------------------------------------------------- Renault S.A. (Automobile Manufacturers)(b) 245,925 10,655,039 - --------------------------------------------------------------------------- Sanofi-Synthelabo S.A. (Pharmaceuticals) 384,350 22,969,696 - --------------------------------------------------------------------------- Societe Generale-Class A (Banks) 132,000 8,087,888 - --------------------------------------------------------------------------- Total S.A. (Integrated Oil & Gas) 262,844 34,531,590 - --------------------------------------------------------------------------- Vinci S.A. (Construction & Engineering) 356,900 23,284,561 =========================================================================== 164,867,462 =========================================================================== GERMANY-3.50% Adidas-Salomon A.G. (Apparel & Accessories) 101,925 8,786,497 - --------------------------------------------------------------------------- Altana A.G. (Pharmaceuticals) 515,440 25,426,950 - ---------------------------------------------------------------------------
MARKET SHARES VALUE - ---------------------------------------------------------------------------
GERMANY-(CONTINUED) Deutsche Boerse A.G. (Diversified Financial Services) 136,040 6,388,466 - --------------------------------------------------------------------------- Porsche A.G.-Pfd. (Automobile Manufacturers) 36,580 $ 13,497,032 =========================================================================== 54,098,945 =========================================================================== HONG KONG-1.14% Cheung Kong (Holdings) Ltd. (Real Estate Management & Development) 1,080,000 5,968,419 - --------------------------------------------------------------------------- CNOOC Ltd.-ADR (Oil & Gas Exploration & Production) 241,100 6,321,642 - --------------------------------------------------------------------------- Sun Hung Kai Properties Ltd. (Real Estate Management & Development) 1,145,000 5,373,347 =========================================================================== 17,663,408 =========================================================================== HUNGARY-0.25% OTP Bank Rt. (Banks) 366,300 3,930,579 =========================================================================== INDIA-1.39% Hindustan Lever Ltd. (Household Products) 1,100,000 3,355,558 - --------------------------------------------------------------------------- Infosys Technologies Ltd. (IT Consulting & Services) 308,228 18,177,440 =========================================================================== 21,532,998 =========================================================================== IRELAND-3.81% Allied Irish Banks PLC (Banks) 1,126,572 17,319,777 - --------------------------------------------------------------------------- Bank of Ireland (Banks) 2,365,000 28,955,156 - --------------------------------------------------------------------------- Ryanair Holdings PLC-ADR (Airlines)(b) 319,200 12,662,664 =========================================================================== 58,937,597 =========================================================================== ISRAEL-3.17% Teva Pharmaceutical Industries Ltd.-ADR (Pharmaceuticals) 1,048,600 48,969,620 =========================================================================== ITALY-4.22% Banco Popolare di Verona e Novara Scrl (Banks) 1,274,080 17,336,760 - --------------------------------------------------------------------------- Eni S.p.A. (Integrated Oil & Gas) 2,297,949 32,810,431 - --------------------------------------------------------------------------- UniCredito Italiano S.p.A. (Banks) 3,445,200 15,100,146 =========================================================================== 65,247,337 =========================================================================== JAPAN-13.42% Canon Inc. (Office Electronics) 604,000 24,488,203 - --------------------------------------------------------------------------- Fujisawa Pharmaceutical Co. Ltd. (Pharmaceuticals) (Acquired 09/07/01; Cost $8,004,917)(a) 409,000 6,949,405 - --------------------------------------------------------------------------- Hirose Electric Co., Ltd. (Electronic Equipment & Instruments) 234,000 16,789,502 - --------------------------------------------------------------------------- Hoya Corp. (Electronic Equipment & Instruments) 428,800 25,428,271 - ---------------------------------------------------------------------------
F-1
MARKET SHARES VALUE - --------------------------------------------------------------------------- JAPAN-(CONTINUED) Kao Corp. (Household Products) 549,000 $ 10,043,950 - --------------------------------------------------------------------------- Keyence Corp. (Electronic Equipment & Instruments) 110,110 17,755,046 - --------------------------------------------------------------------------- Nidec Corp. (Electronic Equipment & Instruments) 164,300 8,692,829 - --------------------------------------------------------------------------- Nissan Motor Co., Ltd. (Automobile Manufacturers) 1,662,000 12,791,605 - --------------------------------------------------------------------------- Nitto Denko Corp. (Specialty Chemicals) 838,300 24,186,138 - --------------------------------------------------------------------------- Ricoh Co., Ltd. (Office Electronics) 920,000 14,153,846 - --------------------------------------------------------------------------- Rohm Co. Ltd. (Semiconductors) 76,500 7,908,357 - --------------------------------------------------------------------------- Takeda Chemical Industries, Ltd. (Pharmaceuticals) 179,000 6,579,720 - --------------------------------------------------------------------------- Toyota Motor Corp. (Automobile Manufacturers) 518,500 11,775,666 - --------------------------------------------------------------------------- Trend Micro Inc. (Application Software)(b) 583,900 7,121,630 - --------------------------------------------------------------------------- Yamanouchi Pharmaceutical Co., Ltd. (Pharmaceuticals) 508,000 12,861,841 =========================================================================== 207,526,009 =========================================================================== MEXICO-2.31% America Movil S.A. de C.V.-Series L-ADR (Wireless Telecommunication Services) 458,100 7,682,337 - --------------------------------------------------------------------------- Grupo Financiero BBVA Bancomer, S.A. de C.V.- Class B (Banks)(b) 12,103,100 10,553,144 - --------------------------------------------------------------------------- Telefonos de Mexico S.A. de C.V.-Series L-ADR (Integrated Telecommunications Services) 219,500 6,631,095 - --------------------------------------------------------------------------- Wal-Mart de Mexico S.A. de C.V.-Series C (General Merchandise Stores) 4,251,000 10,850,621 =========================================================================== 35,717,197 =========================================================================== NETHERLANDS-1.65% James Hardie Industries N.V. (Construction Materials) 1,573,000 6,465,294 - --------------------------------------------------------------------------- Koninklijke (Royal) KPN N.V. (Integrated Telecommunications Services)(b) 2,867,000 19,105,333 =========================================================================== 25,570,627 =========================================================================== PORTUGAL-0.79% Portugal Telecom, SGPS, S.A. (Integrated Telecommunications Services) 1,712,000 12,269,940 =========================================================================== SOUTH KOREA-2.58% Kookmin Bank (Banks)(b) 435,660 12,232,199 - --------------------------------------------------------------------------- Kookmin Bank-ADR (Banks) 105,000 2,892,750 - --------------------------------------------------------------------------- LG Chem Ltd. (Commodity Chemicals) 202,000 6,702,841 - --------------------------------------------------------------------------- Samsung Electronics Co., Ltd. (Electronic Equipment & Instruments)(b) 72,000 18,081,515 =========================================================================== 39,909,305 ===========================================================================
MARKET SHARES VALUE - ---------------------------------------------------------------------------
SPAIN-5.13% Altadis, S.A. (Tobacco) 1,127,200 $ 29,113,446 - --------------------------------------------------------------------------- Banco Popular Espanol S.A. (Banks) 798,190 38,768,299 - --------------------------------------------------------------------------- Repsol YPF, S.A. (Integrated Oil & Gas) 789,520 11,520,048 =========================================================================== 79,401,793 =========================================================================== SWITZERLAND-0.71% UBS A.G. (Banks) 231,260 10,989,205 =========================================================================== TAIWAN-1.82% Compal Electronics Inc. (Computer Hardware) 6,931,200 7,478,138 - --------------------------------------------------------------------------- Hon Hai Precision Industry Co., Ltd. (Electronic Equipment & Instruments) 2,624,300 8,207,997 - --------------------------------------------------------------------------- Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors)(b) 9,029,809 12,385,219 =========================================================================== 28,071,354 =========================================================================== UNITED KINGDOM-19.72% Astra-Zeneca PLC (Pharmaceuticals) 119,500 4,693,520 - --------------------------------------------------------------------------- Centrica PLC (Gas Utilities) 9,127,500 24,276,874 - --------------------------------------------------------------------------- Imperial Tobacco Group PLC (Tobacco) 1,849,200 30,974,894 - --------------------------------------------------------------------------- Man Group PLC (Diversified Financial Services) 630,000 10,633,403 - --------------------------------------------------------------------------- Next PLC (Department Stores) 1,359,900 20,527,126 - --------------------------------------------------------------------------- Reckitt Benckiser PLC (Household Products) 1,629,850 28,773,934 - --------------------------------------------------------------------------- Rentokil Initial PLC (Diversified Commercial Services) 5,504,300 16,467,322 - --------------------------------------------------------------------------- Royal Bank of Scotland Group PLC (Banks) 1,233,400 32,381,114 - --------------------------------------------------------------------------- Shell Transport & Trading Co. PLC (Integrated Oil & Gas) 668,000 4,004,953 - --------------------------------------------------------------------------- Smith & Nephew PLC (Health Care Supplies) 4,750,575 31,711,865 - --------------------------------------------------------------------------- Tesco PLC (Food Retail) 7,694,000 24,372,307 - --------------------------------------------------------------------------- Unilever PLC (Packaged Foods & Meats) 3,134,600 30,841,572 - --------------------------------------------------------------------------- Vodafone Group PLC (Wireless Telecommunication Services) 16,786,800 33,167,607 - --------------------------------------------------------------------------- William Morrison Supermarkets PLC (Food Retail) 4,053,725 12,095,181 =========================================================================== 304,921,672 =========================================================================== Total Foreign Stocks & Other Equity Interests (Cost $1,263,287,971) 1,383,559,641 ===========================================================================
F-2
MARKET SHARES VALUE - --------------------------------------------------------------------------- MONEY MARKET FUNDS-10.67% STIC Liquid Assets Portfolio(c) 82,479,202 $ 82,479,202 - --------------------------------------------------------------------------- STIC Prime Portfolio(c) 82,479,202 82,479,202 =========================================================================== Total Money Market Funds (Cost $164,958,404) 164,958,404 =========================================================================== TOTAL INVESTMENTS-100.14% (excluding investments purchased with cash collateral from securities loaned) (Cost $1,428,246,375) 1,548,518,045 =========================================================================== MARKET SHARES VALUE - --------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS-7.56% STIC Liquid Assets Portfolio (c)(d) 116,950,011 116,950,011 =========================================================================== Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $116,950,011) 116,950,011 =========================================================================== TOTAL INVESTMENTS-107.70% (Cost $1,545,196,386) 1,665,468,056 =========================================================================== OTHER ASSETS LESS LIABILITIES-(7.70%) (119,071,036) =========================================================================== NET ASSETS-100.00% $1,546,397,020 ___________________________________________________________________________ ===========================================================================
Investment Abbreviations: ADR - American Depositary Receipt Pfd. - Preferred
Notes to Schedule of Investments: (a) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction); the security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of this security. The aggregate market value of these securities at 04/30/03 was $49,488,468, which represented 3.20% of the Fund's net assets. These securities are not considered to be illiquid. (b) Non-income producing security. (c) The money market fund and the Fund are affiliated by having the same investment advisor. (d) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Notes to Financial Statements. F-3 STATEMENT OF ASSETS AND LIABILITIES April 30, 2003 (Unaudited) ASSETS: Investments, at market value (cost $1,545,196,386)* $1,665,468,056 - ------------------------------------------------------------ Foreign currencies, at value (cost $14,687,025) 14,379,490 - ------------------------------------------------------------ Receivables for: Investments sold 22,984,444 - ------------------------------------------------------------ Capital stock sold 15,608,494 - ------------------------------------------------------------ Dividends 4,767,205 - ------------------------------------------------------------ Due from advisor -- See Note 2 670,300 - ------------------------------------------------------------ Investment for deferred compensation plan 74,076 - ------------------------------------------------------------ Other assets 246,309 ============================================================ Total assets 1,724,198,374 ____________________________________________________________ ============================================================ LIABILITIES: Payables for: Investments purchased 7,446,688 - ------------------------------------------------------------ Capital stock reacquired 50,131,958 - ------------------------------------------------------------ Deferred compensation plan 74,076 - ------------------------------------------------------------ Collateral upon return of securities loaned 116,950,011 - ------------------------------------------------------------ Accrued distribution fees 1,120,525 - ------------------------------------------------------------ Accrued directors' fees 1,369 - ------------------------------------------------------------ Accrued transfer agent fees 1,590,954 - ------------------------------------------------------------ Accrued operating expenses 485,773 ============================================================ Total liabilities 177,801,354 ============================================================ Net assets applicable to shares outstanding $1,546,397,020 ____________________________________________________________ ============================================================ NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $2,048,495,737 - ------------------------------------------------------------ Undistributed net investment income (loss) (3,226,013) - ------------------------------------------------------------ Undistributed net realized gain (loss) from investment securities and foreign currencies (619,020,846) - ------------------------------------------------------------ Unrealized appreciation of investment securities and foreign currencies 120,148,142 ============================================================ $1,546,397,020 ____________________________________________________________ ============================================================ NET ASSETS: Class A $1,099,163,527 ____________________________________________________________ ============================================================ Class B $ 341,239,709 ____________________________________________________________ ============================================================ Class C $ 105,767,782 ____________________________________________________________ ============================================================ Class R $ 151,940 ____________________________________________________________ ============================================================ Institutional Class $ 74,062 ____________________________________________________________ ============================================================ CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 480,000,000 - ------------------------------------------------------------ Outstanding 86,900,559 ____________________________________________________________ ============================================================ Class B: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 28,588,760 ____________________________________________________________ ============================================================ Class C: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 8,854,801 ____________________________________________________________ ============================================================ Class R: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 12,066 ____________________________________________________________ ============================================================ Institutional Class: Authorized 240,000,000 - ------------------------------------------------------------ Outstanding 5,818 ____________________________________________________________ ============================================================ Class A: Net asset value per share $ 12.65 - ------------------------------------------------------------ Offering price per share: (Net asset value of $12.65 divided by 94.50%) $ 13.39 ____________________________________________________________ ============================================================ Class B: Net asset value and offering price per share $ 11.94 ____________________________________________________________ ============================================================ Class C: Net asset value and offering price per share $ 11.94 ____________________________________________________________ ============================================================ Class R: Net asset value and offering price per share $ 12.59 ____________________________________________________________ ============================================================ Institutional Class: Net asset value and offering price per share $ 12.73 ____________________________________________________________ ============================================================
* At April 30, 2003, securities with an aggregate market value of $112,749,551 were on loan to brokers. See Notes to Financial Statements. F-4 STATEMENT OF OPERATIONS For the six months ended April 30, 2003 (Unaudited) INVESTMENT INCOME: Dividends (net of foreign withholding tax of $1,460,982) $ 11,217,866 - -------------------------------------------------------------------------- Dividends from affiliated money market funds 499,208 - -------------------------------------------------------------------------- Interest 24,425 - -------------------------------------------------------------------------- Security lending income 208,852 ========================================================================== Total investment income 11,950,351 ========================================================================== EXPENSES: Advisory fees 7,082,344 - -------------------------------------------------------------------------- Administrative services fees 184,806 - -------------------------------------------------------------------------- Custodian fees 651,972 - -------------------------------------------------------------------------- Distribution fees -- Class A 1,572,006 - -------------------------------------------------------------------------- Distribution fees -- Class B 1,817,658 - -------------------------------------------------------------------------- Distribution fees -- Class C 534,856 - -------------------------------------------------------------------------- Distribution fees -- Class R 441 - -------------------------------------------------------------------------- Transfer agent fees 3,673,119 - -------------------------------------------------------------------------- Transfer agent fees -- Institutional Class 36 - -------------------------------------------------------------------------- Directors' fees 8,404 - -------------------------------------------------------------------------- Other 411,712 ========================================================================== Total expenses 15,937,354 ========================================================================== Less: Fees waived, expenses reimbursed and expenses paid indirectly (929,206) ========================================================================== Net expenses 15,008,148 ========================================================================== Net investment income (loss) (3,057,797) ========================================================================== REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND FOREIGN CURRENCIES: Net realized gain (loss) from: Investment securities (44,743,368) - -------------------------------------------------------------------------- Foreign currencies 1,122,480 ========================================================================== (43,620,888) ========================================================================== Change in net unrealized appreciation (depreciation) of: Investment securities 50,098,627 - -------------------------------------------------------------------------- Foreign currencies (37,001) ========================================================================== 50,061,626 ========================================================================== Net gain from investment securities and foreign currencies 6,440,738 ========================================================================== Net increase in net assets resulting from operations $ 3,382,941 __________________________________________________________________________ ==========================================================================
See Notes to Financial Statements. F-5 STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 2003 and the year ended October 31, 2002 (Unaudited)
APRIL 30, OCTOBER 31, 2003 2002 - ---------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ (3,057,797) $ (8,846,063) - ---------------------------------------------------------------------------------------------- Net realized gain (loss) from investment securities and foreign currencies (43,620,888) (221,331,772) - ---------------------------------------------------------------------------------------------- Change in net unrealized appreciation of investment securities and foreign currencies 50,061,626 52,979,939 ============================================================================================== Net increase (decrease) in net assets resulting from operations 3,382,941 (177,197,896) ============================================================================================== Share transactions-net: Class A (1,995,141) (212,077,269) - ---------------------------------------------------------------------------------------------- Class B (56,302,139) (148,436,124) - ---------------------------------------------------------------------------------------------- Class C (7,620,053) (35,844,117) - ---------------------------------------------------------------------------------------------- Class R 106,369 49,318 - ---------------------------------------------------------------------------------------------- Institutional Class -- 80,835 ============================================================================================== Net increase (decrease) in net assets resulting from share transactions (65,810,964) (396,227,357) ============================================================================================== Net increase (decrease) in net assets (62,428,023) (573,425,253) ============================================================================================== NET ASSETS: Beginning of period 1,608,825,043 2,182,250,296 ============================================================================================== End of period $1,546,397,020 $1,608,825,043 ______________________________________________________________________________________________ ==============================================================================================
See Notes to Financial Statements. F-6 NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES AIM International Growth 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 series management investment company consisting of six separate portfolios. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be 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 long-term growth of capital. Companies are listed in the Schedule of Investments based on the country in which they are organized. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued at the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors of the Company. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Occasionally, events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not be reflected in the computation of the Fund's net asset value. If a development/event is so significant that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Directors. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. DISTRIBUTIONS -- Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes. D. 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 gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. E. FOREIGN CURRENCY TRANSLATIONS -- Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from F-7 changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. F. FOREIGN CURRENCY CONTRACTS -- A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security. 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. G. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses are charged to each class pursuant to a transfer agency and service agreement adopted by the Fund with respect to such class. All other expenses are allocated among the classes based on relative net assets. 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 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 has contractually agreed to waive advisory fees payable by the Fund to AIM at the annual rate of 0.05% on net assets in excess of $500 million. Further, AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds in which the Fund has invested (excluding investments made in affiliated money market funds with cash collateral from securities loaned by the Fund). For the six months ended April 30, 2003, AIM waived fees of $248,008. Under an agreement to limit the aggregate costs of certain shareholder services provided by third party administrators, a receivable of $670,300 has been recorded for the estimated amount which AIM reimbursed to the Fund on June 27, 2003. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2003, AIM was paid $184,806 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and shareholder services to the Fund. During the six months ended April 30, 2003, AFS retained $1,245,629 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, Class B, Class C, Class R and the Institutional Class shares of the Fund. The Company has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares, Class B shares, Class C shares and Class R shares (collectively the "Plans"). The Fund, pursuant to the Plans, pays AIM Distributors compensation at the annual rate of 0.30% of the Fund's average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. Of these amounts, the Fund may pay a service fee of 0.25% of the average daily net assets of the Class A, Class B, Class C or Class R shares to selected dealers and financial institutions who furnish continuing personal shareholder services to their customers who purchase and own the appropriate class of shares of the Fund. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the six months ended April 30, 2003, the Class A, Class B, Class C and Class R shares paid AIM Distributors $1,572,006, $1,817,658, $534,856 and $441, respectively. Front-end sales commissions and contingent deferred sales charges (collectively the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. Contingent deferred sales charges ("CDSCs") are deducted from redemption proceeds prior to remittance to the shareholder. During six months ended April 30, 2003, AIM Distributors retained $43,176 in front-end sales commissions from the sale of Class A shares and $484,459, $142, $15,694 and $0 for Class A, Class B, Class C and Class R shares, respectively, for CDSCs imposed upon redemptions by shareholders. Certain officers and directors of the Company are officers and directors of AIM, AFS and/or AIM Distributors. During the six months ended April 30, 2003, the Fund paid legal fees of $2,700 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Company's directors. A member of that firm is a director of the Company. NOTE 3--INDIRECT EXPENSES For the six months ended April 30, 2003, the Fund received reductions in transfer agency fees from AFS (an affiliate of AIM) of $10,795 and reductions in custodian fees of $103 under expense offset arrangements which resulted in a reduction of the Fund's total expenses of $10,898. NOTE 4--DIRECTORS' FEES Directors' fees represent remuneration paid to each director who is not an "interested person" of AIM. Directors have the option to defer compensation payable by the Company. The Directors deferring compensation have the option to select various AIM Funds in which all or part of their deferral accounts shall be deemed to be invested. NOTE 5--BORROWINGS AIM has established an interfund lending facility for temporary borrowings by the AIM Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. F-8 During the reporting period, the Fund was a participant in a committed line of credit facility with a syndicate administered by Citibank, N.A. The Fund could borrow up to the lesser of (i) $500,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM, which were parties to the line of credit could borrow on a first come, first served basis. The funds, which were party to the line of credit, were charged a commitment fee of 0.09% on the unused balance of the committed line. The commitment fee was allocated among the funds based on their respective average net assets for the period. The committed line of credit facility expired May 20, 2003. During the six months ended April 30, 2003, the Fund did not borrow under the interfund lending or the committed line of credit facility. NOTE 6--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities to the extent of one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value, determined daily, of the loaned securities. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral pursuant to these loans is invested in short-term money market instruments or affiliated money market funds. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral may be temporarily less than the value of the securities on loan. At April 30, 2003, securities with an aggregate value of $112,749,551 were on loan to brokers. The loans were secured by cash collateral of $116,950,011 received by the Fund and invested in an affiliated money market fund. For the six months ended April 30, 2003, the Fund received fees of $208,852 for securities lending. NOTE 7--TAX INFORMATION The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of distributable earnings will be updated at the Fund's fiscal year-end. The Fund has a capital loss carryforward for tax purposes which expires as follows:
CAPITAL LOSS EXPIRATION CARRYFORWARD - ------------------------------------------------------------------------------ October 31, 2005 $ 4,400,190 - ------------------------------------------------------------------------------ October 31, 2006 4,587,222 - ------------------------------------------------------------------------------ October 31, 2008 5,435,313 - ------------------------------------------------------------------------------ October 31, 2009 326,330,819 - ------------------------------------------------------------------------------ October 31, 2010 221,461,389 ============================================================================== Total capital loss carryforward $562,214,933 ______________________________________________________________________________ ==============================================================================
NOTE 8--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended April 30, 2003 was $449,791,927 and $571,093,424 respectively. The amount of unrealized appreciation (depreciation) of investment securities, for tax purposes, as of April 30, 2003 is as follows: Aggregate unrealized appreciation of investment securities $192,237,443 - -------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (72,398,505) ================================================================================ Net unrealized appreciation of investment securities $119,838,938 ________________________________________________________________________________ ================================================================================ Cost of investments for tax purposes is $1,545,629,118.
F-9 NOTE 9--CAPITAL STOCK The Fund currently offers five different classes of shares: Class A shares, Class B shares, Class C shares, Class R shares and Institutional Class shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with a CDSC. Under some circumstances, Class A shares and Class R shares are subject to CDSCs. Class R shares and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Changes in capital stock outstanding during the six months ended April 30, 2003 and 2002 were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------------- ------------------------------- SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------------- Sold: Class A 194,230,925 $ 2,400,431,614 368,401,191 $ 5,196,926,844 - -------------------------------------------------------------------------------------------------------------------------------- Class B 1,042,694 12,312,918 3,311,442 44,849,213 - -------------------------------------------------------------------------------------------------------------------------------- Class C 9,505,574 111,724,479 15,573,890 203,220,053 - -------------------------------------------------------------------------------------------------------------------------------- Class R* 610,218 7,614,278 3,845 49,318 - -------------------------------------------------------------------------------------------------------------------------------- Institutional Class** -- -- 5,818 80,835 ================================================================================================================================ Conversion of Class B shares to Class A shares: Class A 386,826 4,805,103 660,780 9,377,577 - -------------------------------------------------------------------------------------------------------------------------------- Class B (409,192) (4,805,103) (698,495) (9,377,577) ================================================================================================================================ Reacquired: Class A (193,896,927) (2,407,231,858) (380,070,713) (5,418,381,690) - -------------------------------------------------------------------------------------------------------------------------------- Class B (5,437,524) (63,809,954) (13,644,671) (183,907,760) - -------------------------------------------------------------------------------------------------------------------------------- Class C (10,135,530) (119,344,532) (18,116,304) (239,064,170) - -------------------------------------------------------------------------------------------------------------------------------- Class R* (601,997) (7,507,909) -- -- ================================================================================================================================ (4,704,933) $ (65,810,964) (24,573,217) $ (396,227,357) ________________________________________________________________________________________________________________________________ ================================================================================================================================
* Class R shares commenced sales on June 3, 2002. ** Institutional shares commenced sales on March 15, 2002. F-10 NOTE 10--FINANCIAL HIGHLIGHTS The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
CLASS A -------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------ 2003 2002 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.69 $ 14.45 $ 21.60 $ 21.73 $ 17.59 $ 16.64 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.01)(a) (0.03)(a) (0.01) 0.08(a) (0.03) 0.05(a) - --------------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) (0.03) (1.73) (5.66) 0.72 4.49 0.96 ================================================================================================================================= Total from investment operations (0.04) (1.76) (5.67) 0.80 4.46 1.01 ================================================================================================================================= Less distributions: Dividends from net investment income -- -- -- -- (0.11) (0.06) - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gains -- -- (1.48) (0.93) (0.21) -- ================================================================================================================================= Total distributions -- -- (1.48) (0.93) (0.32) (0.06) ================================================================================================================================= Net asset value, end of period $ 12.65 $ 12.69 $ 14.45 $ 21.60 $ 21.73 $ 17.59 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Total return(b) (0.32)% (12.18)% (27.96)% 3.16% 25.73% 6.11% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $1,099,164 $1,093,344 $1,404,269 $2,325,636 $2,058,419 $1,724,635 _________________________________________________________________________________________________________________________________ ================================================================================================================================= Ratio of expenses to average net assets: With fee waivers and/or expense reimbursements 1.76%(c) 1.70% 1.57% 1.44% 1.48% 1.45% - --------------------------------------------------------------------------------------------------------------------------------- Without fee waivers and/or expense reimbursements 1.88%(c) 1.74% 1.61% 1.48% 1.52% 1.49% ================================================================================================================================= Ratio of net investment income (loss) to average net assets (0.19)%(c) (0.21)% (0.04)% 0.30% (0.14)% 0.28% _________________________________________________________________________________________________________________________________ ================================================================================================================================= Portfolio turnover rate(d) 32% 77% 85% 87% 86% 78% _________________________________________________________________________________________________________________________________ =================================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustment in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $1,056,688,936. (d) Not annualized for periods less than one year. F-11 NOTE 10--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS B ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 12.02 $ 13.78 $ 20.81 $ 21.11 $ 17.13 $ 16.27 - ------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) (0.05)(a) (0.12)(a) (0.13) (0.11)(a) (0.17)(a) (0.09)(a) - ------------------------------------------------------------------------------------------------------------------------------ Net gains (losses) on securities (both realized and unrealized) (0.03) (1.64) (5.42) 0.74 4.36 0.95 ============================================================================================================================== Total from investment operations (0.08) (1.76) (5.55) 0.63 4.19 0.86 ============================================================================================================================== Less distributions from net realized gains -- -- (1.48) (0.93) (0.21) -- ============================================================================================================================== Net asset value, end of period $ 11.94 $ 12.02 $ 13.78 $ 20.81 $ 21.11 $ 17.13 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Total return(b) (0.67)% (12.77)% (28.48)% 2.42% 24.72% 5.29% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratios/supplemental data: Net assets, end of period (000s omitted) $341,240 $401,288 $612,125 $997,843 $887,106 $744,987 ______________________________________________________________________________________________________________________________ ============================================================================================================================== Ratio of expenses to average net assets: With fee waivers and/or expense reimbursements 2.46%(c) 2.40% 2.27% 2.18% 2.27% 2.22% - ------------------------------------------------------------------------------------------------------------------------------ Without fee waivers and/or expense reimbursements 2.58%(c) 2.44% 2.31% 2.22% 2.31% 2.26% ============================================================================================================================== Ratio of net investment income (loss) to average net assets (0.89)%(c) (0.91)% (0.75)% (0.44)% (0.93)% (0.49)% ______________________________________________________________________________________________________________________________ ============================================================================================================================== Portfolio turnover rate(d) 32% 77% 85% 87% 86% 78% ______________________________________________________________________________________________________________________________ ==============================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustment in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $366,544,365. (d) Not annualized for periods less than one year.
CLASS C --------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ---------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.03 $ 13.79 $ 20.82 $ 21.13 $ 17.14 $ 16.27 - ----------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.05)(a) (0.12)(a) (0.13) (0.11)(a) (0.17)(a) (0.09)(a) - ----------------------------------------------------------------------------------------------------------------------------- Net gains (losses) on securities (both realized and unrealized) (0.04) (1.64) (5.42) 0.73 4.37 0.96 ============================================================================================================================= Total from investment operations (0.09) (1.76) (5.55) 0.62 4.20 0.87 ============================================================================================================================= Less distributions from net realized gains -- -- (1.48) (0.93) (0.21) -- ============================================================================================================================= Net asset value, end of period $ 11.94 $ 12.03 $ 13.79 $ 20.82 $ 21.13 $ 17.14 _____________________________________________________________________________________________________________________________ ============================================================================================================================= Total return(b) (0.75)% (12.76)% (28.47)% 2.37% 24.76% 5.35% _____________________________________________________________________________________________________________________________ ============================================================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $105,768 $114,070 $165,857 $253,998 $118,208 $58,579 _____________________________________________________________________________________________________________________________ ============================================================================================================================= Ratio of expenses to average net assets: With fee waivers and/or expense reimbursements 2.46%(c) 2.40% 2.27% 2.18% 2.27% 2.22% - ----------------------------------------------------------------------------------------------------------------------------- Without fee waivers and/or expense reimbursements 2.58%(c) 2.44% 2.31% 2.22% 2.31% 2.26% ============================================================================================================================= Ratio of net investment income (loss) to average net assets (0.89)%(c) (0.91)% (0.75)% (0.44)% (0.93)% (0.49)% _____________________________________________________________________________________________________________________________ ============================================================================================================================= Portfolio turnover rate(d) 32% 77% 85% 87% 86% 78% _____________________________________________________________________________________________________________________________ =============================================================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustment in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $107,857,660. (d) Not annualized for periods less than one year. F-12 NOTE 10--FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS R ------------------------------ JUNE 3, 2002 SIX MONTHS (DATE SALES ENDED COMMENCED) TO APRIL 30, OCTOBER 31, 2003 2002 - -------------------------------------------------------------------------------------------- Net asset value, beginning of period $12.69 $ 15.27 - -------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.02)(a) (0.02)(a) - -------------------------------------------------------------------------------------------- Net losses on securities (both realized and unrealized) (0.08) (2.56) ============================================================================================ Total from investment operations (0.10) (2.58) ============================================================================================ Net asset value, end of period $12.59 $ 12.69 ____________________________________________________________________________________________ ============================================================================================ Total return(b) (0.79)% (16.90)% ____________________________________________________________________________________________ ============================================================================================ Ratios/supplemental data: Net assets, end of period (000s omitted) $ 152 $ 49 ____________________________________________________________________________________________ ============================================================================================ Ratio of expenses to average net assets: With fee waivers and/or expense reimbursements 1.96%(c) 1.89%(d) - -------------------------------------------------------------------------------------------- Without fee waivers and/or expense reimbursements 2.08%(c) 1.93%(d) ============================================================================================ Ratio of net investment income (loss) to average net assets (0.39)%(c) (0.40)%(d) ____________________________________________________________________________________________ ============================================================================================ Portfolio turnover rate(e) 32% 77% ____________________________________________________________________________________________ ============================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustment in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $177,878. (d) Annualized (e) Not annualized for period less than one year.
INSTITUTIONAL CLASS ------------------------------- MARCH 15, 2002 SIX MONTHS (DATE SALES ENDED COMMENCED) TO APRIL 30, OCTOBER 31, 2003 2002 - --------------------------------------------------------------------------------------------- Net asset value, beginning of period $12.73 $ 15.09 - --------------------------------------------------------------------------------------------- Income from investment operations: Net investment income 0.03(a) 0.03(a) - --------------------------------------------------------------------------------------------- Net losses on securities (both realized and unrealized) (0.03) (2.39) ============================================================================================= Total from investment operations -- (2.36) ============================================================================================= Net asset value, end of period $12.73 $ 12.73 _____________________________________________________________________________________________ ============================================================================================= Total return(b) 0.00% (15.64)% _____________________________________________________________________________________________ ============================================================================================= Ratios/supplemental data: Net assets, end of period (000s omitted) $ 74 $ 74 _____________________________________________________________________________________________ ============================================================================================= Ratio of expenses to average net assets: With fee waivers and/or expense reimbursements 1.17%(c) 1.16%(d) - --------------------------------------------------------------------------------------------- Without fee waivers and/or expense reimbursements 1.29%(c) 1.20%(d) ============================================================================================= Ratio of net investment income to average net assets 0.40%(c) 0.33%(d) _____________________________________________________________________________________________ ============================================================================================= Portfolio turnover rate(e) 32% 77% _____________________________________________________________________________________________ =============================================================================================
(a) Calculated using average shares outstanding. (b) Includes adjustment in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year. (c) Ratios are annualized and based on average daily net assets of $72,818. (d) Annualized (e) Not annualized for period less than one year. F-13 OTHER INFORMATION DIRECTORS AND OFFICERS BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND Robert H. Graham Robert H. Graham 11 Greenway Plaza Mark H. Williamson Chairman and President Suite 100 Frank S. Bayley Houston, TX 77046 Bruce L. Crockett Mark H. Williamson Albert R. Dowden Executive Vice President INVESTMENT ADVISOR Edward K. Dunn Jr. A I M Advisors, Inc. Jack M. Fields Kevin M. Carome 11 Greenway Plaza Carl Frischling Senior Vice President Suite 100 Prema Mathai-Davis Houston, TX 77046 Lewis F. Pennock Gary T. Crum Ruth H. Quigley Senior Vice President TRANSFER AGENT Louis S. Sklar A I M Fund Services, Inc. Dana R. Sutton P.O. Box 4739 Vice President and Treasurer Houston, TX 77210-4739 Robert G. Alley CUSTODIAN Vice President State Street Bank and Trust Company 225 Franklin Street Stuart W. Coco Boston, MA 02110 Vice President COUNSEL TO THE FUND Melville B. Cox Ballard Spahr Vice President Andrews & Ingersoll, LLP 1735 Market Street Edgar M. Larsen Philadelphia, PA 19103 Vice President COUNSEL TO THE TRUSTEES Nancy L. Martin Kramer, Levin, Naftalis & Frankel LLP Secretary 919 Third Avenue New York, NY 10022 DISTRIBUTOR A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046
THE AIM FAMILY OF FUNDS--Registered Trademark-- DOMESTIC EQUITY INTERNATIONAL/GLOBAL EQUITY FIXED INCOME AIM Aggressive Growth Fund AIM Asia Pacific Growth Fund(2) TAXABLE AIM Balanced Fund* AIM Developing Markets Fund AIM Basic Balanced Fund* AIM European Growth Fund(2) AIM Floating Rate Fund AIM Basic Value Fund AIM European Small Company Fund AIM High Yield Fund AIM Blue Chip Fund AIM Global Aggressive Growth Fund AIM Income Fund AIM Capital Development Fund AIM Global Growth Fund AIM Intermediate Government Fund AIM Charter Fund AIM Global Trends Fund AIM Limited Maturity Treasury Fund(6,7) AIM Constellation Fund AIM Global Value Fund(5) AIM Money Market Fund AIM Dent Demographic Trends Fund AIM International Core Equity Fund(2) AIM Short-Term Bond Fund AIM Diversified Dividend Fund(1) AIM International Emerging Growth Fund AIM Total Return Bond Fund AIM Emerging Growth Fund AIM International Growth Fund(2) AIM Large Cap Basic Value Fund TAX-FREE AIM Large Cap Growth Fund SECTOR EQUITY AIM Libra Fund AIM High Income Municipal Fund AIM Mid Cap Basic Value Fund AIM Global Energy Fund AIM Municipal Bond Fund AIM Mid Cap Core Equity Fund(2) AIM Global Financial Services Fund AIM Tax-Exempt Cash Fund AIM Mid Cap Growth Fund AIM Global Health Care Fund AIM Tax-Free Intermediate Fund(6,7) AIM Opportunities I Fund(2,3) AIM Global Science and Technology Fund(2) AIM Opportunities II Fund(2,3) AIM Global Utilities Fund AIM Opportunities III Fund(2,3) AIM New Technology Fund AIM Premier Equity Fund(2) AIM Real Estate Fund AIM Premier Equity II Fund(2) AIM Select Equity Fund AIM Small Cap Equity Fund AIM Small Cap Growth Fund(4) AIM Weingarten Fund *Domestic equity and income fund
(1) Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. (2) The following fund name changes became effective July 1, 2002: AIM Asian Growth Fund renamed AIM Asia Pacific Growth Fund; AIM European Development Fund renamed AIM European Growth Fund; AIM Global Telecommunications and Technology Fund renamed AIM Global Science and Technology Fund; AIM International Equity Fund renamed AIM International Growth Fund; AIM International Value Fund renamed AIM International Core Equity Fund; AIM Large Cap Opportunities Fund renamed AIM Opportunities III Fund; AIM Mid Cap Equity Fund renamed AIM Mid Cap Core Equity Fund; AIM Mid Cap Opportunities Fund renamed AIM Opportunities II Fund; AIM Small Cap Opportunities Fund renamed AIM Opportunities I Fund; AIM Value Fund renamed AIM Premier Equity Fund; AIM Value II Fund renamed AIM Premier Equity II Fund. (3) Effective October 1, 2002, the fund was reopened to new investors. (4) AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. (5) Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. (6) Class A shares closed to new investors on October 30, 2002. (7) Class A3 shares were first offered on October 31, 2002. For more complete information about any AIM fund, including sales charges and expenses, ask your financial advisor for a prospectus. Please read it carefully before investing. This brochure is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Please read it carefully before investing. If used after July 20, 2003, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual Funds distributed by A I M Distributors, Inc. A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $115 billion in assets for approximately 9 million shareholders, including individual investors, corporate clients and financial institutions. The AIM Family of Funds--Registered Trademark-- is distributed nationwide. AIM is a subsidiary of AMVESCAP PLC, one of the world's largest independent financial services companies with $319 billion in assets under management. Data as of March 31, 2003. Mutual Retirement Annuities College Separately Offshore Alternative Cash Funds Products Savings Managed Products Investments Management Plans Accounts
[AIM INVESTMENTS LOGO APPEARS HERE] --SERVICEMARK-- YOUR GOALS. OUR SOLUTIONS. --SERVICEMARK-- AIMinvestments.com IGR-SAR-1 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. [RESERVED] ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. As of June 20, 2003, an evaluation was performed under the supervision and with the participation of the officers of AIM Equity Funds, AIM International Funds Inc., AIM Investment Funds, AIM Special Opportunities Funds, and AIM Summit Funds (the "Funds"), including the Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"), of the effectiveness of the Fund's disclosure controls and procedures. Based on that evaluation, the Fund's officers, including the PEO and PFO, concluded that, as of June 20, 2003, the Fund's disclosure controls and procedures were reasonably designed so as to ensure that material information relating to the Funds is made known to the PEO and PFO. There have been no significant changes in the Fund's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation and until the filing of this report, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. (a) Not applicable. (b)(1) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940. Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ ROBERT H. GRAHAM ------------------------------- Robert H. Graham Principal Executive Officer Date: June 20, 2003 By: /s/ DANA R. SUTTON ------------------------------ Dana R. Sutton Principal Financial Officer Date: June 20, 2003 EXHIBIT INDEX (b)(1) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940. Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002. EX-99.CERT 3 h07149bexv99wcert.txt CERTIFICATIONS Sarbanes Oxley - 302 Certification I, Robert H. Graham, certify that: 1. I have reviewed this report on Form N-CSR of AIM International Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 20, 2003 /s/ Robert H. Graham ------------------ --------------------------------------------- Robert H. Graham, Principle Executive Officer Sarbanes Oxley - 302 Certification I, Dana R. Sutton, certify that: 1. I have reviewed this report on Form N-CSR of AIM International Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 20, 2003 /s/ Dana R. Sutton ------------------ --------------------------------------------- Dana R. Sutton, Principle Executive Officer EX-99.906CERT 4 h07149bexv99w906cert.txt CERTIFICATIONS PURSUANT TO SECTION 906 Sarbanes Oxley - 906 Certification CERTIFICATION OF SHAREHOLDER In connection with the Certified Shareholder Report of AIM International Funds Inc. (the "Company") on Form N-CSR for the period ended April 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robert H. Graham, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: June 20, 2003 /s/ Robert H. Graham --------------------------- Robert H. Graham Principal Executive Officer A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. Sarbanes Oxley - 906 Certification CERTIFICATION OF SHAREHOLDER REPORT In connection with the Certified Shareholder Report of AIM International Funds, Inc. (the "Company") on Form N-CSR for the period ended April 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Dana R. Sutton, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: June 20, 2003 /s/ Dana R. Sutton ------------- --------------------------------- Dana R. Sutton Principal Financial Officer A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----