-----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, FwhGSPdzTXF+bLgSFcM/i7kqIVEksDTHhAhrBRQqz+MCOiRG5V/doRO0U885NUYO Ml5Auo7rK9m0ljFZSVqouw== 0000950129-99-003010.txt : 19990708 0000950129-99-003010.hdr.sgml : 19990708 ACCESSION NUMBER: 0000950129-99-003010 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIM INTERNATIONAL FUNDS INC CENTRAL INDEX KEY: 0000880859 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 760352823 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06463 FILM NUMBER: 99659758 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 N-30D 1 AIF AIM ASIAN GROWTH FUND - SEMI-ANNUAL REPORT 1 [COVER IMAGE] AIM ASIAN GROWTH FUND [AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30 1999 2 [COVER IMAGE] ------------------------------------- TWO FISH JOHN S. BUNKER THE POWER AND TURBULENCE DEPICTED IN THIS BOLD WATERCOLOR VIVIDLY EXPRESS THE FORCES OF CHANGE SHAPING THE ASIAN REGION. ASIA'S CITIES AND NATIONS FACE BOTH CHALLENGE AND OPPORTUNITY AS THEY DEVEL- OP THEIR ROLES IN THE GLOBAL ECONOMY. ------------------------------------- AIM Asian Growth Fund is for shareholders who seek long-term growth of capital. The Fund invests in a diversified portfolio of companies located in Asia with strong earnings momentum. ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT: o AIM Asian Growth Fund's performance figures are historical and reflect reinvestment of all 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 Class B and Class C shares will differ from that of Class A shares due to differences in sales charge structure and expenses. o For periods ended April 30, 1999, average annual total returns, including sales charges, are as follows: Class A shares: Since inception (11/3/97), -5.86%; 1 year, -0.92%. Class B shares: Since inception (11/3/97), -5.46%; 1 year, -0.85%. Class C shares: Since inception (11/3/97), -3.03%; 1 year, 2.83%. o MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN. o The Fund's investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o An investment cannot be made in any index listed. Unless otherwise indicated, index results include reinvested dividends and do not reflect sales charges. o International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuation 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 MSCI Asia ex-Japan Index is a group of unmanaged securities from all developed and emerging markets in Asia, excluding Japan, tracked by Morgan Stanley Capital International. AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF YOUR MONEY. This report may be distributed only to current shareholders or to persons who have received a current prospectus of the Fund. AIM ASIAN GROWTH FUND 3 SEMIANNUAL REPORT / CHAIRMAN'S LETTER Dear Fellow Shareholder: With only several months remaining in 1999, the question on [PHOTO OF many of your minds may be, "How will the year 2000 computer Charles T. issue affect AIM and my investments?" We would like you to Bauer, feel comfortable. Chairman of During March and April, AIM participated in an the Board of industrywide test that gave us a chance to see how our THE FUND technology systems might be affected by the changeover to APPEARS HERE] the year 2000 (Y2K). Everything went as well as we had hoped; in general, the industry sailed through the testing process with flying colors. The financial industry has been seen as a leader in planning for year 2000 concerns. Thus, it was no surprise to most participants that the test was an overwhelming success. The general purpose of the process was to test electronic interfaces among financial industry members in the United States and to follow transactions through a typical trading cycle--from order entry to the settlement process. Investment banks, broker-dealers, custodian banks and mutual fund companies all worked together to make this possible. Approximately 400 firms were involved in the testing; AIM was one of 70 asset managers. TEST RESULTS EXCELLENT During the testing process, thousands of transactions were submitted and approximately 260,000 steps were tested. Of those, only a handful experienced minor glitches--just 0.02% of the total number of transactions. All problems were worked through quickly before the hypothetical trades were settled. Of course, AIM will keep testing and planning throughout 1999 as a precaution. AIM'S INTERNAL EFFORTS CONTINUE As you know from our previous communications to you, AIM has been addressing the year 2000 issue for several years. During 1998, we made substantial progress on our preparations. We are now in the final phases of the project, continually testing internal applications and our interfaces with outside parties. On the investment side, our portfolio management staff is evaluating the Y2K preparedness of the companies in which we invest. We feel that our preparations for 2000 are very comprehensive, and the industrywide testing showed that our colleagues in the financial industry are also working hard to be ready for the new year. We do not think shareholders need to take any extraordinary measures with their investments to prepare for 2000. However, if you have any lingering concerns, it may reassure you to know that AIM is finalizing contingency plans that will be ready if there are unexpected problems. Our plans will give AIM employees guidelines to follow for a wide variety of situations. For a more comprehensive discussion of our Y2K efforts and for periodic updates, please visit our Web site, www.aimfunds.com. We are pleased to send you this report covering your Fund's performance over the last six months. If you have any questions or comments, please contact our Client Services department at 800-959-4246, or e-mail your inquiry to us at general@aimfunds.com. You can access information about your account through our AIM Investor Line at 800-246-5463 or at our Web site. Thank you for your continued participation in The AIM Family of Funds--Registered Trademark--. We appreciate your business. Sincerely, /s/ CHARLES T. BAUER Charles T. Bauer Chairman AIM Advisors, Inc. ------------------------------------- THE FINANCIAL INDUSTRY HAS BEEN SEEN AS A LEADER IN PLANNING FOR YEAR 2000 CONCERNS. ------------------------------------- PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED AIM'S YEAR 2000 READINESS DISCLOSURE. AIM ASIAN GROWTH FUND 4 SEMIANNUAL REPORT / MANAGERS' OVERVIEW ASIA MOVES FROM CRISIS TO RECOVERY PORTFOLIO COMPOSITION As of April 30, 1999, based on total net assets
============================================================================================================================= TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES - ----------------------------------------------------------------------------------------------------------------------------- 1. Allgreen Properties Ltd. (Singapore) 2.99% 1. Land Development 7.12% 2. Videsh Sanchar Nigam Ltd. (India) 2.54 2. Computers (Hardware) 6.53 3. Giordano International Ltd. (Hong Kong) 2.44 3. Banks (Major Regional) 6.00 4. Development Bank of Singapore Ltd. (Singapore) 2.41 4. Banks (Regional) 5.73 5. Cosco Pacific Ltd. (Hong Kong) 2.39 5. Telecommunications (Cellular/Wireless) 5.52 6. Advanced Info Service Public Co. Ltd. (Thailand) 2.37 6. Electronics (Component /Distributors) 4.92 7. China Telecom Ltd. (Hong Kong) 2.04 7. Telephone 3.69 8. Guangdong Kelon Electrical Holdings Co. Ltd. (Hong Kong) 2.03 8. Electrical Equipment 3.56 9. Brambles Industries Ltd. (Australia) 2.03 9. Engineering & Construction 3.24 10. Compal Electronics Inc. (Taiwan) 2.03 10. Broadcasting (Television, Radio & Cable) 3.22 The Fund's portfolio is subject to change and there is no assurance the Fund will continue to hold any particular security. =============================================================================================================================
================================================================================ GEOGRAPHIC ALLOCATION As of 4/30/99, based on total net assets South Korea 1.72% Hong Kong 35.02% Taiwan 8.81% Philippines 8.74% Indonesia 1.72% Singapore 21.14% New Zealand 1.43% Australia 11.59% India 4.22% Thailand 6.37% ================================================================================ IT SEEMS THAT NEWS ABOUT ASIAN MARKETS IS GETTING BETTER. HOW DID AIM ASIAN GROWTH FUND PERFORM DURING THE LAST SIX MONTHS? After months of turmoil and uncertainty, Asia's markets finally made a comeback. AIM Asian Growth Fund produced excellent total returns for the six-month period ended April 30, 1999. Class A shares returned 25.75%; Class B, 25.58%; and Class C, 25.52%. These returns are at net asset value, without a sales charge. See inside the front cover for long-term performance figures. The Fund underperformed the MSCI Asia Pacific ex-Japan Index, which returned 35.71% over the same period. Total net assets grew from $11.4 million on October 31, 1998, to $19.3 million on April 30, 1999. HOW HAVE ASIAN MARKETS CHANGED IN THE LAST FEW MONTHS? Most Asian countries appear to have survived the worst of the financial crisis that started in 1997. Currencies have stabilized, interest rates have fallen and inflation is benign. The markets had a strong rally during the first quarter of 1999, buoyed by this good economic news. The rally was a fairly broad one, as well. Investors are starting to look beyond the region's blue-chip stocks to lesser-known stocks in some areas. Analysts' projections for 1999 earnings indicate that 1998 was the trough of the earnings cycle in the region. Many companies have made earnest efforts to focus on shareholder value and to allocate their resources more efficiently. There is still much work to be done, however, in restructuring corporations and financial institutions and restoring economic growth to healthy levels. It seems that some banks and financial companies are struggling while others are doing very well. WHAT IS YOUR STRATEGY FOR SELECTING FINANCIAL STOCKS? We prefer banks that have the highest quality loan books and whose management is actively working to protect the banks from bad loan exposure. We have found some very healthy banks at attractive prices, and we think they could demonstrate strong growth in the future. Some examples of holdings include Cosco Pacific Limited, a diversified financial group based in Hong Kong; Bank of the Philippine Islands; and Development Bank of Singapore. MOST OF THE PORTFOLIO IS CONCENTRATED IN JUST A FEW COUNTRIES. WHY? You have to remember that many Asian markets are still developing. There simply aren't that many stocks to choose from in some of the smaller countries. And we're picky about the stocks we do select; we're looking for strong companies with demonstrated earnings growth. That's been hard to find except in a few places. ------------------------------------- MOST ASIAN COUNTRIES APPEAR TO HAVE SURVIVED THE WORST OF THE FINANCIAL CRISIS THAT STARTED IN 1997. ------------------------------------- See important Fund and index disclosures inside front cover. AIM ASIAN GROWTH FUND 2 5 SEMIANNUAL REPORT / MANAGERS' OVERVIEW So with respect to geography, the Fund was concentrated in the more developed markets of Hong Kong, Singapore and Australia. We've been very cautious about less stable markets such as Indonesia and Malaysia. As of April 30, 1999, less than one-third of the AIM Asian Growth Fund's portfolio was in developing markets. (See the sidebar at right for a description of developing markets.) Our largest weighting was in Hong Kong, where we have holdings in a variety of sectors. One of our top holdings was Giordano International Ltd., a specialty retailer that sells modern, low-cost casual clothing. The company operates or franchises more than 600 stores in Asia, the Pacific, and the Middle East. It plans to open outlet stores in Latin America in the next year. We also liked Hong Kong-based China Telecom, which offers cellular phone services to almost 5 million subscribers in several Chinese provinces. WHAT STOCKS DID YOU LIKE IN SINGAPORE? Technology stocks have done well in Singapore, which helped the Fund's performance. Examples include Venture Manufacturing, Natsteel Limited, and JIT Holdings Ltd. The banking industry is also attractive. Singapore's government is encouraging the industry to streamline and improve profitability. A great example of a bank that's done just that is the Development Bank of Singapore, one of our largest holdings. The bank has made some very judicious acquisitions in other markets to solidify its regional strength. WHAT MAKES AUSTRALIA ATTRACTIVE? Australia is a bright spot in the Asia/Pacific region. It has experienced good economic growth, strong consumer spending and good corporate earnings. The markets have been setting record highs with regularity, which has helped the Fund. A top Australian holding was Brambles Industries, Ltd., one of the largest companies listed on the Australian Stock Exchange. The company is an international materials handler, transporter and equipment services provider. WHAT IS YOUR OUTLOOK FOR THE REGION? We are generally optimistic about Asia. Most of the stock markets in Asia have rebounded significantly from their lows, but it's important to be cautious for a while, since they could head back down if countries don't experience sustainable economic recoveries. For instance, Korea appears to be one of the strongest recovery stories in the region. It has worked very hard to meet the International Monetary Fund's requirements for reform. As a result, equity markets are recovering and interest rates are falling. But we are still watching for follow-through. On a similar note, we are encouraged somewhat to see that Japan's economy is showing modest signs of improvement. Nevertheless, it is still not clear whether Japan has done enough or whether it will adhere to its best intentions for reform. Though the AIM Asian Growth Fund does not invest in Japan, the country does play an important role in the highly interconnected world of Asian economics, so its future success could influence what happens throughout Asia. HOW DOES THE REMAINDER OF 1999 LOOK FOR THE FUND? We think company earnings generally will increase in comparison to the extremely difficult environment we experienced in 1998. We expect to expand the number of holdings in the portfolio as more companies start to demonstrate earnings momentum. UNDERSTANDING DEVELOPING MARKETS The Asian crisis, and the various global crises that followed on its heels, introduced many investors to the concept of developing markets. Developing (or emerging) markets are the financial markets of countries moving from agriculture-based economies to industrialized ones. The Philippines, Malaysia and Thailand are examples of developing markets in Asia. Because these markets are so new, relatively few securities trade in them--imagine a market with as many companies as Wyoming rather than as many as the United States. In fact, the total market capitalization of Taiwan, for instance, is smaller than that of some large American corporations. Of course, there's lots of room to grow. Investors are attracted to developing markets, particularly as a diversification tool, because they offer the potential for higher growth rates than the more mature markets of the United States, Western Europe and Japan. However, the flip side of great potential opportunity is great potential risk. The small size of these markets makes them more vulnerable to the movement of large amounts of money, as the global crises of 1997 and 1998 clearly demonstrated. They are also very dependent on the health of more developed countries, whose prosperity often creates the demand for the goods and services that developing markets offer. See important Fund and index disclosures inside front cover. AIM ASIAN GROWTH FUND 3 6 SEMIANNUAL REPORT / FOR CONSIDERATION TIME FOR A FINANCIAL TUNE-UP? GET HELP FROM YOUR FINANCIAL CONSULTANT Keeping track of your investment may require more than just glancing at its total value. If you haven't checked the asset allocation of your portfolio in a while, you should. It may look different now. OUT OF BALANCE Say you invested $50,000 in equity funds and $50,000 in fixed-income funds on December 31, 1993, and simply reinvested your income and capital-gains distributions for five years, making no new investments or withdrawals. (For this example, we're using the S&P 500 Index and Lehman Aggregate Bond Index as indicators of stock and bond performance.*) During those five years, stocks produced average annual total return of 24.05%, while bonds grew only 7.27% per year on average. As a result, you'd have $146,890 xin stock funds and $71,028 in bond funds for a 67/33 allocation on December 31, 1998. If you wanted to bring your allocation back into balance, you'd need to shift $37,931 from stock to fixed-income funds. TAX CONSEQUENCES One way to rebalance is to shift your assets among different funds: selling equity shares and moving the proceeds into your fixed-income funds. But keep in mind that this step may trigger tax consequences, since the movement of shares from one fund to another represents the sale of a security. Alternatively, you can let your asset allocation change gradually by altering the proportions of your new investments. Simply raise the amount you invest in fixed-income funds and lower the amount going into equity funds. TAX-SHELTERED PLANS Rebalancing within a tax-sheltered plan, such as a 401(k) or IRA, makes even more sense, since there are no tax consequences for selling and buying new shares. PERIODIC CHECK-UPS The key allocation to watch is your overall stock and fixed-income mix. It's that mix that will have the biggest influence on your risk and return. However, rebalancing doesn't mean fiddling constantly with your account or attempting to time the market by moving money around to chase the hottest sectors. It simply means revisiting your portfolio periodically to make sure it's still right for you. Your financial consultant should be able to help you determine if your current portfolio composition is meeting your short- and long-term financial goals. That's why we recommend regular visits with your consultant as a way to keep an eye on your nest egg. YOU AND YOUR FINANCIAL CONSULTANT Once a year, you and your financial consultant should meet to look ahead, review investments and take another look at your goals, according to the Forum for Investor Advice, a nonprofit association that educates investors about the role and value of professional financial consultants. TIME AND MARKETS SHIFT BALANCE Market performance can affect the allocation of a portfolio. This example illustrates an initial investment of $50,000 in equity funds and $50,000 in bond funds. Five years later, the assets have shifted to $146,890 in stock funds and $71,028 in bond funds, due to the strong performance of the stock market. ================================================================================ [PIE CHART] 12/31/93 Bond Funds 50% Stock Funds 50% 12/31/98 Bond Funds 33% Stock Funds 67% ================================================================================ *The Lehman Aggregate Bond Index is an unmanaged index generally considered representative of corporate debt securities. The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a group of unmanaged securities widely regarded by investors to be representative of the stock market in general. Results shown assume the reinvestment of dividends. An investment cannot be made in any index listed. Unless otherwise indicated, index results include reinvested dividends and do not reflect sales charges. ================================================================================ AIM ASIAN GROWTH FUND 4 7 SEMIANNUAL REPORT / FOR CONSIDERATION Financial consultants can help you with every kind of financial goal, whether that's saving up for a house, eliminating debt or saving for a comfortable retirement. A consultant who knows you well and understands your needs can make all the difference in your financial future. He or she can o evaluate your total financial situation and help you formulate a comprehensive financial plan; o explain different types of investments, as well as their potential risks and benefits; o suggest an investment portfolio that can handle changing market conditions; and o help you make clear-headed decisions during market volatility. GETTING THE MOST FROM YOUR PLANNING SESSION Your consultant needs a complete picture of your financial status to prepare a workable plan. Come prepared to talk about your financial situation, your goals and your feelings about risk. And don't be afraid to ask lots of questions. Good financial consultants take investor education seriously, so take advantage of their store of knowledge and materials. The Forum for Investor Advice suggests that you discuss the following with your financial consultant: o changes in the financial markets o changes in your goals and current situation o retirement plans o estate planning o outlook for the markets Take along our checklist (right) to get you started on the path to good planning. And don't forget to stay in touch. Maintaining regular contact with your financial consultant can keep you moving toward your goals, especially when your life circumstances or financial needs change. CONSULTATION CHECKLIST WHAT TO BRING: o A list of all your assets, including real estate, life insurance, stocks and bonds, and mutual funds o A list of all your expenses, including likely future expenses o A timetable of your financial goals, including an estimate of when you want to retire WHAT TO ASK: o How can I estimate what my goals will cost? o How much money do I need to invest, and how often? o How many different kinds of investments do I need? o How do I determine my risk tolerance? o What are the possible risks of the investments you've suggested? o What effect will these investments have on my taxes? What forms will I need to file? o How often do I need to revise my plan? o How will I know how my investments are doing? o How can I make changes to my plan? o What kinds of communication will I get from you? o Where can I get more information on what we've talked about? o What do I need to do after this meeting? [Photo of couple talking to Financial Consultant] AIM ASIAN GROWTH FUND 5 8 SCHEDULE OF INVESTMENTS April 30, 1999 (Unaudited)
MARKET SHARES VALUE FOREIGN STOCKS & OTHER EQUITY INTERESTS-100.76% AUSTRALIA-11.59% AMP Ltd. (Insurance-Life/Health) 22,200 $ 259,293 - -------------------------------------------------------------- Brambles Industries Ltd. (Air Freight) 13,300 390,821 - -------------------------------------------------------------- BRL Hardy Ltd. (Beverages-Alcoholic) 78,300 349,751 - -------------------------------------------------------------- ERG Ltd. (Electrical Equipment)(a) 212,000 363,354 - -------------------------------------------------------------- James Hardie Industries Ltd. (Building Materials) 144,380 348,734 - -------------------------------------------------------------- TABCORP Holdings Ltd. (Leisure Time Products) 43,458 353,440 - -------------------------------------------------------------- Village Roadshow Ltd., 6.50% Pfd. (Entertainment)(b) (Acquired 04/23/98; Cost $200,000) 4,000 168,000 - -------------------------------------------------------------- 2,233,393 - -------------------------------------------------------------- HONG KONG-35.02% Anhui Conch Cement Co. Ltd. (Building Materials)(a) 508,000 58,988 - -------------------------------------------------------------- Cathay Pacific Airways (Airlines)(a) 122,000 195,968 - -------------------------------------------------------------- China Telecom Ltd. (Telecommunications-Cellular/ Wireless)(a) 172,000 392,788 - -------------------------------------------------------------- Cosco Pacific Ltd. (Financial-Diversified) 680,000 460,601 - -------------------------------------------------------------- Dah Sing Financial Group (Banks-Regional)(a) 116,800 368,449 - -------------------------------------------------------------- Dao Heng Bank Group Ltd. (Banks-Regional)(a) 86,000 349,515 - -------------------------------------------------------------- Esprit Asia Holdings Ltd. (Retail-Stores) 620,000 363,965 - -------------------------------------------------------------- Giordano International Ltd. (Retail-Specialty-Apparel) 1,012,000 470,045 - -------------------------------------------------------------- Guangdong Kelon Electrical Holdings Co. Ltd. (Household Furniture & Appliances) 436,000 390,956 - -------------------------------------------------------------- Hengan International Group Co. Ltd. (Consumer-Jewelry, Novelties, & Gifts)(a) 916,000 307,273 - -------------------------------------------------------------- HKR International Ltd. (Land Development) 516,600 383,247 - -------------------------------------------------------------- Hutchison Whampoa Ltd. (Retail-Food Chains) 37,000 331,774 - -------------------------------------------------------------- Johnson Electric Holdings Ltd. (Electrical Equipment) 108,000 322,575 - -------------------------------------------------------------- Kerry Properties Ltd. (Land Development)(a) 292,000 325,878 - -------------------------------------------------------------- Li & Fung Ltd.(Distributors-Food & Health) 145,000 355,449 - -------------------------------------------------------------- Ng Fung Hong Ltd. (Foods) 386,000 373,512 - -------------------------------------------------------------- Shenzhen Expressway Co. Ltd. (Services-Commercial & Consumer) 1,530,000 313,866 - -------------------------------------------------------------- Television Broadcasts Ltd. (Broadcasting-Television, Radio & Cable) 85,000 345,450 - -------------------------------------------------------------- Wing Hang Bank Ltd. (Banks-Major Regional) 109,500 334,826 - -------------------------------------------------------------- Zhehuang Expressway Co. Ltd. (Services-Commercial & Consumer) 1,838,000 303,537 - -------------------------------------------------------------- 6,748,662 - -------------------------------------------------------------- INDIA-4.22% ITC Ltd. (Tobacco) 11,500 323,725 - -------------------------------------------------------------- Videsh Sanchar Nigam Ltd. (Telecommunications-Cellular/Wireless) 40,800 $ 489,600 - -------------------------------------------------------------- 813,325 - -------------------------------------------------------------- INDONESIA-1.72% Gulf Indonesia Resources Ltd. (Oil-International Integrated)(a) 32,200 332,062 - -------------------------------------------------------------- NEW ZEALAND-1.43% Sky Network Television Ltd. (Broadcasting-Television, Radio & Cable)(a) 112,400 185,718 - -------------------------------------------------------------- Sky Network Television Ltd.-ADR (Broadcasting-Television, Radio & Cable)(a) 5,400 89,100 - -------------------------------------------------------------- 274,818 - -------------------------------------------------------------- PHILIPPINES-8.74% Bank of the Philippine Islands (Banks-Major Regional) 113,110 356,955 - -------------------------------------------------------------- Equitable Banking Corp. (Banks-Foreign)(a) 129,000 300,237 - -------------------------------------------------------------- International Container Terminal Services, Inc. (Air Freight)(a) 1,935,000 193,373 - -------------------------------------------------------------- Manila Electric Co. (Electric Power) 78,300 298,580 - -------------------------------------------------------------- Philippine Long Distance Telephone Co. (Telephone) 7,840 253,602 - -------------------------------------------------------------- SM Prime Holdings Inc. (Land Development) 1,244,900 281,555 - -------------------------------------------------------------- 1,684,302 - -------------------------------------------------------------- SINGAPORE-21.14% Allgreen Properties Ltd. (Homebuilding)(a) 950,000 576,844 - -------------------------------------------------------------- Datacraft Asia Ltd. (Communications Equipment) 119,700 375,858 - -------------------------------------------------------------- Development Bank of Singapore Ltd. (Banks-Major Regional) 43,800 464,776 - -------------------------------------------------------------- JIT Holdings Ltd. (Computers-Peripherals)(a) 315,000 343,542 - -------------------------------------------------------------- Keppel Corp. Ltd. (Engineering & Construction)(a) 117,000 333,832 - -------------------------------------------------------------- Keppel Land Ltd. (Land Development) 229,000 382,049 - -------------------------------------------------------------- Keppel Telecommunications & Transportation Ltd. (Telecommunications-Cellular/Wireless)(a) 171,000 180,446 - -------------------------------------------------------------- Natsteel Electronics Ltd. (Computers-Hardware) 57,500 193,215 - -------------------------------------------------------------- NatSteel Ltd. (Iron & Steel) 220,000 332,017 - -------------------------------------------------------------- OMNI Industries Ltd. (Electronics-Component Distributors)(a) 602,000 319,401 - -------------------------------------------------------------- Singapore Press Holdings Ltd. (Publishing-Newspapers) 19,000 280,021 - -------------------------------------------------------------- Venture Manufacturing Ltd. (Electronics-Component Distributors) 53,000 290,574 - -------------------------------------------------------------- 4,072,575 - -------------------------------------------------------------- SOUTH KOREA-1.72% Pohang Iron & Steel Co. Ltd. ADR (Iron & Steel) 12,900 332,175 - --------------------------------------------------------------
6 9
MARKET SHARES VALUE TAIWAN-8.81% ASE Test Ltd.-ADR (Electronics-Semiconductors)(a) 16,000 $ 336,000 - -------------------------------------------------------------- Compal Electronics Inc. (Computers-Hardware)(a) 113,000 390,489 - -------------------------------------------------------------- CTCI Corp. (Engineering & Construction)(a) 230,000 291,193 - -------------------------------------------------------------- Hon Hai Precision Industry (Electronics-Component Distributors)(a) 62,000 337,492 - -------------------------------------------------------------- Inventec Co., Ltd. (Computers-Hardware)(a) 104,000 341,896 - -------------------------------------------------------------- 1,697,070 - -------------------------------------------------------------- THAILAND-6.37% Advanced Info Service Public Co. Ltd. (Telephone)(a) 43,000 457,027 - -------------------------------------------------------------- PTT Exploration and Production Public Co. Ltd. (Oil & Gas-Exploration & Production) 41,700 384,715 - -------------------------------------------------------------- Siam Commercial Bank, 5.25% Pfd. & Wts. (expiring 05/10/02) (Banks-Regional)(a)(b) (Acquired 04/29/99; Cost $386,022) 550,000 $ 385,757 - -------------------------------------------------------------- 1,227,499 - -------------------------------------------------------------- Total Foreign Stocks & Other Equity Interests (Cost $15,713,905) 19,415,881 - -------------------------------------------------------------- PRINCIPAL AMOUNT REPURCHASE AGREEMENT-4.91%(C) West LB Securities Americas, Inc., 4.88%, 05/03/99(d) (Cost $945,750) $ 945,750 945,750 - -------------------------------------------------------------- TOTAL INVESTMENTS-105.67% 20,361,631 - -------------------------------------------------------------- LIABILITIES LESS OTHER ASSETS-(5.67%) (1,091,780) - -------------------------------------------------------------- NET ASSETS-100.00% $19,269,851 ==============================================================
Investment Abbreviations: ADR - American Depositary Receipt Pfd. - Preferred Wts. - Warrants Notes to Schedule of Investments: (a) Non-income producing security. (b) Restricted security. May be resold to qualified institutional buyers in accordance with provisions of Rule 144A under the Securities Act of 1933, as amended. The valuation of this security has been determined in accordance with procedures established by the Board of Directors. The aggregate market value of these securities at 04/30/99 was $553,757 which represented 2.87% of the Fund's net assets. (c) Collateral on repurchase agreements, including the Fund's pro-rata interest in joint repurchase agreements, is taken into possession by the Fund upon entering into the repurchase agreement. The collateral is marked to market daily to ensure its market value is at least 102% of the sales price of the repurchase agreement. The investments in some repurchase agreements are through participation in joint accounts with other mutual funds, private accounts and certain non-registered investment companies managed by the investment advisor or its affiliates. (d) Joint repurchase agreement entered into 04/30/99 with a maturing value of $250,101,667. Collateralized by $249,045,000 U.S. Government obligations, 4.00% to 8.75% due 08/31/00 to 11/15/08 with an aggregate market value at 04/30/99 of $255,023,179. See Notes to Financial Statements. 7 10 STATEMENT OF ASSETS AND LIABILITIES April 30, 1999 (Unaudited) ASSETS: Investments, at market value (cost $16,659,655) $20,361,631 - ----------------------------------------------------------- Foreign currencies, at value (cost $83,874) 83,405 - ----------------------------------------------------------- Receivables for: Capital stock sold 567,063 - ----------------------------------------------------------- Dividends and interest 57,644 - ----------------------------------------------------------- Investment for deferred compensation plan 3,729 - ----------------------------------------------------------- Other assets 25,804 - ----------------------------------------------------------- Total assets 21,099,276 - ----------------------------------------------------------- LIABILITIES: Payables for: Investments purchased 1,131,273 - ----------------------------------------------------------- Capital stock reacquired 671,810 - ----------------------------------------------------------- Deferred compensation 3,729 - ----------------------------------------------------------- Accrued administrative services fees 7,317 - ----------------------------------------------------------- Accrued directors' fees 2,339 - ----------------------------------------------------------- Accrued distribution fees 8,241 - ----------------------------------------------------------- Accrued transfer agent fees 1,451 - ----------------------------------------------------------- Accrued operating expenses 3,265 - ----------------------------------------------------------- Total liabilities 1,829,425 - ----------------------------------------------------------- Net assets applicable to shares outstanding $19,269,851 - ----------------------------------------------------------- NET ASSETS: Class A $12,406,627 =========================================================== Class B $ 5,181,015 =========================================================== Class C $ 1,682,209 =========================================================== CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 200,000,000 - ----------------------------------------------------------- Outstanding 1,289,155 =========================================================== Class B: Authorized 200,000,000 - ----------------------------------------------------------- Outstanding 541,572 =========================================================== Class C: Authorized 200,000,000 - ----------------------------------------------------------- Outstanding 176,303 =========================================================== Class A: Net asset value and redemption price per share $ 9.62 - ----------------------------------------------------------- Offering price per share: (Net asset value of $9.62 / 94.50%) $ 10.18 =========================================================== Class B: Net asset value and offering price per share $ 9.57 =========================================================== Class C: Net asset value and offering price per share $ 9.54 ===========================================================
STATEMENT OF OPERATIONS For the six months ended April 30, 1999 (Unaudited) INVESTMENT INCOME: Dividends (net of $3,512 foreign withholding tax) $ 103,542 - ----------------------------------------------------------- Interest 17,790 - ----------------------------------------------------------- Total investment income 121,332 - ----------------------------------------------------------- EXPENSES: Advisory fees 64,699 - ----------------------------------------------------------- Administrative services fees 42,724 - ----------------------------------------------------------- Custodian fees 22,181 - ----------------------------------------------------------- Directors' fees 4,004 - ----------------------------------------------------------- Distribution fees-Class A 15,987 - ----------------------------------------------------------- Distribution fees-Class B 17,326 - ----------------------------------------------------------- Distribution fees-Class C 5,103 - ----------------------------------------------------------- Transfer agent fees-Class A 26,101 - ----------------------------------------------------------- Transfer agent fees-Class B 10,102 - ----------------------------------------------------------- Transfer agent fees-Class C 3,001 - ----------------------------------------------------------- Registration and filing fees 28,699 - ----------------------------------------------------------- Other 25,282 - ----------------------------------------------------------- Total expenses 265,209 - ----------------------------------------------------------- Less: Fees waived and reimbursed by advisor (112,117) - ----------------------------------------------------------- Expenses paid indirectly (335) - ----------------------------------------------------------- Net expenses 152,757 - ----------------------------------------------------------- Net investment income (loss) (31,425) - ----------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES AND FOREIGN CURRENCIES: Net realized gain (loss) from: Investment securities 183,764 - ----------------------------------------------------------- Foreign currencies (14,719) - ----------------------------------------------------------- 169,045 - ----------------------------------------------------------- Net unrealized appreciation (depreciation) of: Investment securities 3,413,744 - ----------------------------------------------------------- Foreign currencies (5,909) - ----------------------------------------------------------- 3,407,835 - ----------------------------------------------------------- Net gain from investment securities and foreign currencies 3,576,880 - ----------------------------------------------------------- Net increase in net assets resulting from operations $3,545,455 ===========================================================
See Notes to Financial Statements. 8 11 STATEMENT OF CHANGES IN NET ASSETS For the six months ended April 30, 1999 and the period November 3, 1997 (date operations commenced) through October 31, 1998 (Unaudited)
APRIL 30, OCTOBER 31, 1999 1998 ----------- ----------- OPERATIONS: Net investment income (loss) $ (31,425) $ 30,244 - ----------------------------------------------------------------------------------------- Net realized gain (loss) from investment securities and foreign currencies 169,045 (1,687,076) - ----------------------------------------------------------------------------------------- Net unrealized appreciation of investment securities and foreign currencies 3,407,835 288,673 - ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,545,455 (1,368,159) - ----------------------------------------------------------------------------------------- Distributions to shareholders from net investment income: Class A (43,024) -- - ----------------------------------------------------------------------------------------- Class B (3,910) -- - ----------------------------------------------------------------------------------------- Class C (898) -- - ----------------------------------------------------------------------------------------- Share transactions-net: Class A 2,391,140 8,755,042 - ----------------------------------------------------------------------------------------- Class B 1,255,688 3,340,169 - ----------------------------------------------------------------------------------------- Class C 693,280 705,068 - ----------------------------------------------------------------------------------------- Net increase in net assets 7,837,731 11,432,120 - ----------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 11,432,120 -- - ----------------------------------------------------------------------------------------- End of period $19,269,851 $11,432,120 ========================================================================================= NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $17,121,926 $12,781,818 - ----------------------------------------------------------------------------------------- Undistributed net investment income (loss) (34,222) 45,035 - ----------------------------------------------------------------------------------------- Undistributed net realized (loss) from investment securities and foreign currencies (1,514,361) (1,683,406) - ----------------------------------------------------------------------------------------- Unrealized appreciation of investment securities and foreign currencies 3,696,508 288,673 - ----------------------------------------------------------------------------------------- $19,269,851 $11,432,120 =========================================================================================
NOTES TO FINANCIAL STATEMENTS April 30, 1999 (Unaudited) NOTE 1-SIGNIFICANT ACCOUNTING POLICIES AIM Asian 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 commenced operations on November 3, 1997. 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 contingent deferred sales charge. Matters affecting each portfolio or class are voted on exclusively by the shareholders of such portfolio or class. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. The Fund's investment objective is to provide long-term growth of capital. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. A. Security Valuations-A security listed or traded on an exchange (except convertible bonds) is valued at the last sales price on the exchange where the security is principally traded or, lacking any sales on a particular day, at the closing bid price on that day. Securities traded in the over-the-counter market (but not including securities reported on the NASDAQ National Market System) are valued at the mean between the last bid and asked prices based upon quotes furnished by market makers for such securities. Securities reported on the NASDAQ National Market System are valued at the last sales price on the valuation date or 9 12 absent a last sales price, 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 yield, type of issue, coupon rate and maturity date. Securities for which market quotations are either not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Company's officers in a manner specifically authorized by the Board of Directors. Investments with maturities of 60 days or less are valued on the basis of amortized cost which approximates market value. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange. The values of such securities used in computing the net asset value of the Fund's shares are determined as of such times. Foreign currency exchange rates are also generally determined prior to the close of the New York Stock Exchange. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of the New York Stock Exchange which would not be reflected in the computation of the Fund's net asset value. If events materially affecting the value of such securities occur during such period, then these securities will be valued at their fair value as determined in good faith by or under the supervision of the Board of Directors. B. Foreign Currency Translations--Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the 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 that 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. Such fluctuations are included with the net realized and unrealized gain or loss from investments. C. 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. D. Securities Transactions, Investment Income and Distributions--Securities transactions are accounted for on a trade date basis. Realized gains or losses are computed on the basis of specific identification of the securities sold. Interest income is recorded as earned from settlement date and is recorded on an accrual basis. Dividend income and distributions to shareholders are recorded on the ex-dividend date and are paid annually. E. Federal Income Taxes--The Fund intends to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized capital gains) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund has a capital loss carryforward of $1,630,826 (which may be carried forward to offset future taxable gains, if any) which expires, if not previously utilized, in the year 2006. F. Expenses--Distribution and transfer agency expenses directly attributable to a class of shares are charged to that class' operations. All other expenses which are attributable to more than one class are allocated among the classes. NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Company has entered into a master investment advisory agreement with A I M Advisors, Inc. ("AIM"). Under the terms of the master investment advisory agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.95% of the first $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. Under the terms of a sub-advisory agreement between AIM and INVESCO Global Asset Management Limited ("IGAM"), AIM pays IGAM a fee at an annual rate of 0.20% of the first $500 million of the Fund's average daily net assets and 0.175% of the Fund's average daily net assets over $500 million. During the six months ended April 30, 1999, AIM waived advisory fees of $64,699 and reimbursed expenses of $47,418. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to reimburse AIM for certain administrative costs incurred in providing accounting services to the Fund. During the six months ended April 30, 1999, AIM was reimbursed $42,724 for such services. The Fund, pursuant to a transfer agency and service agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing transfer agency services to the Fund. During the six months ended April 30, 1999, AFS was paid $24,146 for such services. The Company has entered into master distribution agreements with A I M Distributors, Inc. ("AIM Distributors") to serve as the distributor of the Class A, Class B and Class C shares of the Fund. The Company has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A shares and Class C shares (the "Class A and Class C Plan"), and the Fund's Class B shares (the "Class B Plan") (collectively, the "Plans"). The Fund, pursuant to the Class A and Class C Plan, pays AIM Distributors compensation at the annual rate of 0.35% of the average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C shares. The Fund, pursuant to the Class B Plan, pays AIM Distributors compensation at an annual rate of 1.00% of the average daily net assets of the Class B shares. Of these amounts, the Fund may pay a service fee of 0.25% of the average net assets of the Class A, Class B or 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 10 13 charge. The Plans also impose a cap on the total sales charges, including asset-based sales charges that may be paid by the respective classes. During the six months ended April 30, 1999, the Class A and Class B and Class C shares paid AIM Distributors $15,987, $17,326 and $5,103, respectively, as compensation under the Plans. AIM Distributors received commissions of $10,167 from sales of the Class A shares of the Fund during the six months ended April 30, 1999. Such commissions are not an expense of the Fund. They are deducted from, and are not included in, the proceeds from sales of Class A shares. During the six months ended April 30, 1999, AIM Distributors received commissions of $528 in contingent deferred sales charges imposed on redemptions of Fund shares. Certain officers and directors of the Company are officers and directors of AIM, AFS and AIM Distributors. During the six months ended April 30, 1999, the Fund incurred legal fees of $1,316 for services rendered by the law firm of 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 During the six months ended April 30, 1999, the Fund received reductions in transfer agency fees from AFS (an affiliate of AIM) and reductions in custodian fees of $140 and $195, respectively, under an expense offset arrangement. The effect of the above arrangements resulted in a reduction of the Fund's total expenses of $335 during the six months ended April 30, 1999. NOTE 4-DIRECTORS' FEES Directors' fees represent remuneration paid or accrued to each director who is not an "interested person" of AIM. The Company may invest directors' fees, if so elected by a director, in mutual fund shares in accordance with a deferred compensation plan. NOTE 5-BANK BORROWINGS The Fund is a participant in a committed line of credit facility with a syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to the lesser of (i) $1,000,000,000 or (ii) 10% of total assets. The Fund and other funds advised by AIM which are parties to the line of credit may borrow on a first come, first served basis. During the six months ended April 30, 1999, the Fund did not borrow under the line of credit agreement. The funds which are party to the line of credit are charged a commitment fee of 0.05% on the unused balance of the committed line. The commitment fee is allocated among the funds based on their respective average net assets for the period. NOTE 6-INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities) purchased and sold by the Fund during the six months ended April 30, 1999 was $12,596,578 and $7,116,869, respectively. The amount of unrealized appreciation (depreciation) of investment securities, on a tax basis, as of April 30, 1999 is as follows: Aggregate unrealized appreciation of investment securities $3,915,818 - --------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (328,584) - --------------------------------------------------------- Net unrealized appreciation of investment securities $3,587,234 =========================================================
Costs of investments for tax purposes is $16,774,397. NOTE 7-CAPITAL STOCK Changes in the Fund's capital stock outstanding during the six months ended April 30, 1999 and the period November 3, 1997 (date operations commenced) through October 31, 1998 were as follows:
APRIL 30, OCTOBER 31, 1999 1998 ------------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- Sold: Class A 2,312,689 $18,870,518 2,150,231 $17,226,640 - --------------------------------------------------------------------------------- Class B 448,689 3,711,080 516,509 4,177,886 - --------------------------------------------------------------------------------- Class C 469,198 3,710,231 268,694 2,084,897 - --------------------------------------------------------------------------------- Issued as reinvestment of dividends: Class A 5,228 39,837 -- -- - --------------------------------------------------------------------------------- Class B 494 3,756 -- -- - --------------------------------------------------------------------------------- Class C 118 897 -- -- - --------------------------------------------------------------------------------- Reacquired: Class A (2,032,690) (16,519,214) (1,146,303) (8,471,598) - --------------------------------------------------------------------------------- Class B (304,625) (2,459,148) (119,495) (837,717) - --------------------------------------------------------------------------------- Class C (383,062) (3,017,849) (178,645) (1,379,829) - --------------------------------------------------------------------------------- 516,039 $ 4,340,108 1,490,991 $12,800,279 =================================================================================
11 14 NOTE 8-FINANCIAL HIGHLIGHTS Shown below are the financial highlights for a share of Class A, Class B and Class C capital stock outstanding during the six months ended April 30, 1999 and the period November 3, 1997 (date operations commenced) through October 31, 1998.
CLASS A CLASS B CLASS C ------------------------- ------------------------- ------------------------- APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 1999 1998 1999 1998 1999 1998 --------- ----------- --------- ----------- --------- ----------- Net asset value, beginning of period $ 7.69 $ 10.00 $ 7.63 $ 10.00 $ 7.61 $ 10.00 - ------------------------------------------ ------- ------- ------ ------- ------ ------- Income from investment operations: Net investment income (loss) (0.01)(a) 0.05 (0.04)(a) (0.01) (0.03)(a) (0.01) - ------------------------------------------ ------- ------- ------ ------- ------ ------- Net gains (losses) on securities (both realized and unrealized) 1.98 (2.36) 1.99 (2.36) 1.97 (2.38) - ------------------------------------------ ------- ------- ------ ------- ------ ------- Total from investment operations 1.97 (2.31) 1.95 (2.37) 1.94 (2.39) - ------------------------------------------ ------- ------- ------ ------- ------ ------- Less distributions: Dividends from net investment income (0.04) -- (0.01) -- (0.01) -- - ------------------------------------------ ------- ------- ------ ------- ------ ------- Net asset value, end of period $ 9.62 $ 7.69 $ 9.57 $ 7.63 $ 9.54 $ 7.61 ========================================== ======= ======= ====== ======= ====== ======= Total return(b) 25.75% (23.10)% 25.58% (23.70)% 25.52% (23.90)% ========================================== ======= ======= ====== ======= ====== ======= Ratios/supplemental data: Net assets, end of period (000s omitted) $12,407 $ 7,716 $5,181 $ 3,030 $1,682 $ 686 ========================================== ======= ======= ====== ======= ====== ======= Ratio of expenses to average net assets(c) 2.01%(d) 1.92%(e) 2.72%(d) 2.80%(e) 2.72%(d) 2.80%(e) ========================================== ======= ======= ====== ======= ====== ======= Ratio of net investment income (loss) to average net assets(f) (0.23)%(d) 0.70%(e) (0.94)%(d) (0.18)%(e) (0.94)%(d) (0.18)%(e) ========================================== ======= ======= ====== ======= ====== ======= Portfolio turnover rate 55% 79% 55% 79% 55% 79% ========================================== ======= ======= ====== ======= ====== =======
(a) Calculated using average shares outstanding. (b) Does not deduct sales charges and is not annualized for periods less than one year. (c) After fee waivers and/or expense reimbursements. Ratios of expenses to average net assets prior to fee waivers and/or expense reimbursements were 3.65% (annualized) and 4.88% (annualized) for Class A for 1999-1998, 4.37% (annualized) and 5.75% (annualized) for Class B for 1999-1998; and 4.36% (annualized) and 5.75% (annualized) for Class C for 1999-1998. (d) Ratios are annualized and based on average net assets of $9,210,785, $3,493,851 and $1,029,087 for Class A, Class B and Class C, respectively. (e) Annualized. (f) After fee waivers and/or expense reimbursements. Ratios of net investment income (loss) to average net assets prior to fee waivers and/or expense reimbursements were (1.87)% (annualized) and (2.27)% (annualized) for Class A for 1999-1998, (2.59)% (annualized) and (3.15)% (annualized) for Class B for 1999-1998, (2.58)% (annualized) and (3.15)% (annualized) for Class C for 1999-1998. 12 15
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND Charles T. Bauer Charles T. Bauer 11 Greenway Plaza Chairman Chairman Suite 100 A I M Management Group Inc. Houston, TX 77046 Robert H. Graham Bruce L. Crockett President INVESTMENT ADVISOR Director ACE Limited; Carol F. Relihan A I M Advisors, Inc. Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza Chief Executive Officer Suite 100 COMSAT Corporation Gary T. Crum Houston, TX 77046 Senior Vice President Owen Daly II SUB-ADVISOR Director Dana R. Sutton Cortland Trust Inc. Vice President and Treasurer INVESCO Global Asset Management Limited Cedar House Edward K. Dunn Jr. Robert G. Alley 41 Cedar Avenue Chairman, Mercantile Mortgage Corp.; Vice President Hamilton, HM12 Bermuda Formerly Vice Chairman and President, Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox TRANSFER AGENT President, Mercantile Bankshares Vice President A I M Fund Services, Inc. Jack Fields Edgar M. Larsen P.O. Box 4739 Chief Executive Officer Vice President Houston, TX 77210-4739 Texana Global, Inc.; Formerly Member Mary J. Benson CUSTODIAN of the U.S. House of Representatives Assistant Vice President and Assistant Treasurer State Street Bank and Trust Company Carl Frischling 225 Franklin Street Partner Sheri Morris Boston MA 02110 Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and Assistant Treasurer COUNSEL TO THE FUND Robert H. Graham President and Chief Executive Officer Renee A. Friedli Ballard Spahr A I M Management Group Inc. Assistant Secretary Andrews & Ingersoll, LLP 1735 Market Street Prema Mathai-Davis P. Michelle Grace Philadelphia, PA 19103 Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary Commissioner, New York City Dept. for the COUNSEL TO THE DIRECTORS Aging; and member of the Board of Directors, Jeffrey H. Kupor Metropolitan Transportation Authority of Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP New York State 919 Third Avenue Nancy L. Martin New York, NY 10022 Lewis F. Pennock Assistant Secretary Attorney DISTRIBUTOR Ofelia M. Mayo Louis S. Sklar Assistant Secretary A I M Distributors, Inc. Executive Vice President 11 Greenway Plaza Hines Interests Lisa A. Moss Suite 100 Limited Partnership Assistant Secretary Houston, TX 77046 Kathleen J. Pflueger Assistant Secretary Samuel D. Sirko Assistant Secretary Stephen I. Winer Assistant Secretary
16 THE AIM FAMILY OF FUNDS--Registered Trademark-- GROWTH FUNDS INTERNATIONAL GROWTH FUNDS A I M Management Group Inc. has provided AIM Aggressive Growth Fund(1) AIM Advisor International Value Fund leadership in the mutual-fund industry AIM Blue Chip Fund AIM Asian Growth Fund since 1976 and managed approximately $112 AIM Capital Development Fund AIM Developing Markets Fund(2) billion in assets for more than 6.3 million AIM Constellation Fund AIM Europe Growth Fund(2) shareholders, including individual investors, AIM Dent Demographic Trends Fund AIM European Development Fund corporate clients and financial institutions, AIM Large Cap Growth Fund AIM International Equity Fund as of March 31, 1999. AIM Mid Cap Equity Fund(2), (A) AIM Japan Growth Fund(2) The AIM Family of Funds--Registered Trademark-- AIM Select Growth Fund(3) AIM Latin American Growth Fund(2) is distributed nationwide, and AIM today is the AIM Small Cap Growth Fund(2), (B) AIM New Pacific Growth Fund(2) 10th-largest mutual-fund complex in the U.S. in AIM Small Cap Opportunities Fund assets under management, according to Strategic AIM Value Fund GLOBAL GROWTH FUNDS Insight, an independent mutual-fund monitor. AIM Weingarten Fund AIM Global Aggressive Growth Fund GROWTH & INCOME FUNDS AIM Global Growth Fund AIM Advisor Flex Fund AIM Advisor Large Cap Value Fund GLOBAL GROWTH & INCOME FUNDS AIM Advisor Real Estate Fund AIM Global Growth & Income Fund(2) AIM Balanced Fund AIM Global Utilities Fund AIM Basic Value Fund(2), (C) AIM Charter Fund GLOBAL INCOME FUNDS AIM Emerging Markets Debt Fund(2), (D) INCOME FUNDS AIM Global Government Income Fund(2) AIM Floating Rate Fund(2) AIM Global Income Fund AIM High Yield Fund AIM Strategic Income Fund(2) AIM High Yield Fund II AIM Income Fund THEME FUNDS AIM Intermediate Government Fund AIM Global Consumer Products and Services Fund(2) AIM Limited Maturity Treasury Fund AIM Global Financial Services Fund(2) AIM Global Health Care Fund(2) TAX-FREE INCOME FUNDS AIM Global Infrastructure Fund(2) AIM High Income Municipal Fund AIM Global Resources Fund(2) AIM Municipal Bond Fund AIM Global Telecommunications and Technology Fund(2), (E) AIM Tax-Exempt Bond Fund of Connecticut AIM Global Trends Fund(2), (F) AIM Tax-Free Intermediate Fund MONEY MARKET FUNDS AIM Money Market Fund AIM Tax-Exempt Cash Fund
(1) AIM Aggressive Growth Fund reopened to new investors November 16, 1998. (2) Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former GT Global Funds. (3) On May 1, 1998, AIM Growth Fund was renamed AIM Select Growth Fund. (A) On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap Equity Fund. (B) On September 8, 1998, AIM Small Cap Equity Fund was renamed AIM Small Cap Growth Fund. (C) On September 8, 1998, AIM America Value Fund was renamed AIM Basic Value Fund. (D) On September 8, 1998, AIM Global High Income Fund was renamed AIM Emerging Markets Debt Fund. (E) On June 1, 1999, AIM Global Telecommunications Fund was renamed AIM Global Telecommunications and Technology Fund. (F) On September 8, 1998, AIM New Dimension Fund was renamed AIM Global Trends Fund. For more complete information about any AIM Fund(s), including sales charges and expenses, ask your financial consultant or securities dealer for a free prospectus(es). Please read the prospectus(es) carefully before you invest or send money. [AIM LOGO] Invest with DISCIPLINE--Registered Trademark-- -----END PRIVACY-ENHANCED MESSAGE-----