-----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, GWt3V2fXHeTzeQeBfWBxXT9FIUp8rbncNHpR0MkVofoP5+v2DWiqEY9tKx+pZP6Q FHbRgQ/RF+zObNN/xOobNQ== 0000950129-99-003082.txt : 19990709 0000950129-99-003082.hdr.sgml : 19990709 ACCESSION NUMBER: 0000950129-99-003082 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990708 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: 99660884 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 AIM GLOBAL GROWTH FUND - ANNUAL REPORT 1 SEMIANNUAL REPORT / APRIL 30 1999 AIM GLOBAL GROWTH FUND [COVER IMAGE] [AIM LOGO APPEARS HERE] 2 [COVER IMAGE] ------------------------------------- IRISES BY VINCENT VAN GOGH VAN GOGH'S PAINTING OF INDIGO IRISES IS ONE OF HIS MASTERPIECES, PARTLY BECAUSE THE FLOWER HAS SUCH UNIVERSAL APPEAL. NAMED FOR THE GREEK GODDESS OF THE RAINBOW, IRISES GROW ALL OVER THE GLOBE. LIKE THE APPRECIATION OF BEAUTIFUL ART AND FLOWERS, INVESTING HAS CAUGHT THE IMAGINATION AND INTEREST OF PEOPLE THROUGHOUT THE WORLD. ------------------------------------- AIM Global Growth Fund is for shareholders who seek long-term growth of capital. The Fund invests globally in a portfolio of equity securities of companies with strong earnings momentum. ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT: o AIM Global Growth Fund 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 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 Class B and Class C shares will differ from that of Class A shares due to differences in sales charge structure and expenses. o Past performance is no guarantee of comparable future results. 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 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. ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT: o The MSCI World Index is a group of unmanaged global securities tracked by Morgan Stanley Capital International. o The Dow Jones Industrial Average (the Dow) is an unmanaged composite of the performance of 30 large-company stocks. o The unmanaged Lipper Global Funds Index represents an average of the performance of global funds tracked by Lipper Inc., an independent mutual-fund performance monitor. Results shown reflect reinvestment of dividends. o An investment cannot be made in any index listed. Unless otherwise indicated, index results include reinvested dividends and do not reflect sales charges. 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 GLOBAL 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, A I M Advisors, Inc. PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED AIM'S YEAR 2000 READINESS DISCLOSURE. ------------------------------------- THE FINANCIAL INDUSTRY HAS BEEN SEEN AS A LEADER IN PLANNING FOR YEAR 2000 CONCERNS. ------------------------------------- AIM GLOBAL GROWTH FUND 4 SEMIANNUAL REPORT / MANAGERS' OVERVIEW MARKET RALLY PROPELS FUND PERFORMANCE HOW HAS AIM GLOBAL GROWTH FUND PERFORMED OVER THE PAST SIX MONTHS? The Fund had a total return of 18.20% for Class A shares, 17.86% for Class B shares and 17.91% for Class C shares in a market that favored large-company stocks. These figures are at net asset value and do not include sales charges. The Fund's performance beat the 17.80% return of the Lipper Global Funds Index. The Fund and other funds in the Lipper Global Funds Index underperformed the MSCI World Index, which gained 19.57%. Net assets in the Fund grew from $513 million to $731 million over the six months ending April 30, 1999. WHAT WERE MARKET CONDITIONS LIKE DURING THE REPORTING PERIOD? In late 1998, the Federal Reserve Board lowered interest rates and spurred a U.S. market rally. That rally continued into 1999, with large-company stocks dominating. The Dow crossed the 10,000 threshold during the reporting period, but this reflected the strength of major American corporations. The rest of the U.S. market did not perform as well. The U.S. economy remains the strongest in the world, with low inflation, high employment and low interest rates. The European economy is slowing, particularly in Germany, and we're seeing earnings disappointments from some companies. Conditions are definitely improving in emerging markets. Asia and Latin America suffered major problems last year, including currency devaluation and recession. Signs of recovery appeared in early 1999, and many investors expect Japan and the rest of Asia to emerge from recession this year. Latin American economies have improved, and investors are returning. WHAT CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE? The Fund invests in companies that are major global leaders in a market where size matters. These big companies have large research and development budgets to develop new products, economies of scale to reduce costs and access to global markets to sell products. The market currently favors large companies because they're producing profits at a time when earnings growth is scarce. WHAT STOCKS DID YOU LIKE? Most of our top holdings are U.S. stocks. We don't pick companies according to country; we select stocks one at a time based on company earnings and prospects for future growth. Stocks we favor include America Online, the No. 1 online Internet service provider. With about 17 million subscribers worldwide, AOL recently announced quarterly earnings that beat Wall Street estimates. Another top holding is the Finland-based Nokia, the world's largest wireless- phone company. Nokia posted a 96% increase in earnings in its most recent quarter, and we believe the company is poised for future growth as the European telecommunications industry continues to experience deregulation. WILL YOU CONTINUE TO INVEST IN EUROPE? Yes, the long-term outlook is favorable. We also see positive recent reforms: o The new European Central Bank cut interest rates in April to stimulate the economy and boost confidence in Europe. o The decline of the euro means European exporters are much more competitive. o European companies are more focused on shareholder value. While recent earnings have declined, long-term growth expectations for European companies are superior to those in the United States. And European stocks are selling at a cheaper price than U.S. stocks. European stocks made up 35.75% of the portfolio as of April 30, 1999. IS THE ASIAN ECONOMIC CRISIS OVER? It appears to be, although some Asian countries have yet to recover. Asia has made great strides--currencies are more stable, interest rates are declining and inflation is benign. Banking-system reform is occurring but not yet complete. Many companies in Asia continue to produce strong earnings, especially in the banking and consumer sectors. The ================================================================================ GROWTH OF NET ASSETS - -------------------------------------------------------------------------------- (BAR CHART) 10/31/98 $513 million 4/30/99 $731 million ================================================================================ AIM GLOBAL GROWTH FUND VS. BENCHMARK INDEXES Six-month total returns, excluding sales charges As of 4/30/99 ================================================================================ (BAR CHART) CLASS A SHARES 18.20% CLASS B SHARES 17.86% CLASS C SHARES 17.91% LIPPER GLOBAL FUNDS INDEX 17.80% MSCI WORLD INDEX 19.57% ================================================================================ See important Fund and index disclosures inside front cover. AIM GLOBAL GROWTH FUND 2 5 SEMIANNUAL REPORT / MANAGERS' OVERVIEW PORTFOLIO COMPOSITION As of 4/30/99, based on total net assets
================================================================================================================== TOP 10 HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES - ------------------------------------------------------------------------------------------------------------------ 1. America Online, Inc. (U.S.) 1.25% 1. Computers 6.08% 1. United States 40.24% (Software & Services) 2. Nokia Oyj A.B.-Class A (Finland) 1.05 2. Telephone 5.01 2. United Kingdom 8.94 3. Fiserv, Inc. (U.S.) 1.04 3. Communications Equipment 4.54 3. France 8.28 4. Cisco Systems, Inc. (U.S.) 1.03 4. Banks (Major Regional) 4.43 4. Japan 7.49 5. Northern Telecom Ltd. 1.02 5. Broadcasting 3.67 5. Canada 4.07 --ADR (Canada) (Television, Radio & Cable) 6. Abbott Laboratories (U.S.) 1.00 6. Telecommunications 3.15 6. Mexico 3.35 (Cellular/Wireless) 7. Medtronic, Inc. (U.S.) 0.99 7. Retail (General Merchandise) 3.11 7. Netherlands 2.80 8. Freddie Mac (U.S.) 0.99 8. Insurance (Multi-Line) 3.04 8. Germany 2.62 9. American Home 0.98 9. Retail (Food Chain) 2.96 9. Italy 2.45 Products Corp. (U.S.) 10. EMC Corp. (U.S.) 0.98 10. Financial (Diversified) 2.91 10. Switzerland 2.10 The Fund's portfolio is subject to change, and there is no assurance that the Fund will continue to hold any particular security. ==================================================================================================================
================================================================================ AVERAGE ANNUAL TOTAL RETURNS As of 4/30/99, including sales charges CLASS A SHARES Inception (9/15/94) 17.49% 3 years 14.86 1 year 4.65* CLASS B SHARES Inception (9/15/94) 17.87% 3 years 15.33 1 year 4.19** CLASS C SHARES Inception (8/4/97) 12.13% 1 year 8.30*** *9.86% excluding sales charges **9.19% excluding sales charges ***9.30% excluding sales charges ================================================================================ Past performance is no guarantee of comparable future results. ================================================================================ strongest economies appear to be in Australia, Korea and Singapore. We increased our Asian holdings (outside Japan) from 1.73% to 4.08% over the six-month reporting period. IS THE OUTLOOK FOR JAPAN IMPROVING? The Japanese stock market boomed over the six-month reporting period. Investors pumped $13.4 billion into the Tokyo stock exchange in March, a record high. But we remain cautious about a Japanese recovery. Japan's economy continues to shrink, consumer spending is down, unemployment is rising and the government has yet to implement meaningful economic reform. Some of our Japanese holdings include beer maker Kirin Brewery, telecommunications giant NTT and computer hardware maker NEC. HAS LATIN AMERICA FULLY RECOVERED? Latin American markets have turned around, especially over the past three months. Brazil appointed a new central- bank president, who has raised interest rates to keep inflation in check. Markets calmed considerably as the country established a clearer monetary policy. Even with this positive news, we feel it is too early to expect a sustained recovery in Brazil. At least in the short term, we'll continue to focus on Mexico. The recent recovery in oil prices has boosted the Mexican economy, and Mexico continues to benefit from the strength of its largest trading partner, the United States. WHAT'S YOUR OUTLOOK? Further interest-rate cuts could occur across Europe, a move that would benefit stocks. Over the long run, we expect the earnings picture to improve as privatization, deregulation and restructuring take hold. We look for continued improvement in Latin America and Asia, with the exception of Japan. While we have increased our Japanese holdings, we believe it's too early to say the economic crisis there has ended. Strong economic growth continues to buoy the U.S. stock market. The main question is interest rates. Inflation rose unexpectedly in April, prompting the Fed to shift to a bias of raising interest rates at its May meeting. If the Fed actually does tighten monetary policy, it could have a negative effect on stock performance. See important Fund and index disclosures inside front cover. AIM GLOBAL GROWTH FUND 3 6 SEMIANNUAL REPORT / FOR CONSIDERATION WHY STAYING FULLY INVESTED HAS BEEN THE WISEST COURSE When the stock market turns volatile, many investors feel the impulse to pull their money out of mutual funds. The question then becomes when to get back in. Trying to guess the answer could be very costly. No one, not even expert market watchers, can consistently predict what the market will do next. That's why AIM funds stay fully invested even in a down market, and we encourage investors to do the same. For long-term investing, the stock market historically has offered the highest returns. For example, the Standard & Poor's Composite Index of 500 Stocks (S&P 500) has reported an annualized total return of 13.66% for the 50 years ending March 31, 1999. Those were five decades of wars, recessions and political upheaval. If you pull your money out whenever markets decline, you could miss some of the market's best days. In August 1998, investors withdrew $11 billion from U.S. mutual funds. Chances are, many of those investors did not put their money back into the market in time for the October rally. In fact, October 1998 turned out to be the strongest month for the Dow Jones Industrial Average in 11 years. For international investors, here's another way to look at market timing: If you had invested a hypothetical $10,000 in the Europe, Australasia, and Far East Index tracked by Morgan Stanley Capital International on March 31, 1979, your money would have grown to $117,775 by March 31, 1999. That's an average annual total return of 13.12%. But suppose that during that 20-year period, there were times when you decided to get out of the market. If you missed the market's two best months, your return would have fallen to 11.57%, and your investment would be worth $89,351. If you had missed the market's five best months, your return would have dropped to 9.74% and your investment would be worth $64,144. The more you try to time the market, the greater your chances of missing its biggest single-day gains. Keep focused on your financial goals and remember that time, not timing, is key to successful investing. Now may be a good time to visit your financial advisor to talk about your portfolio. Remember: o think long-term o diversify your investments o avoid market timing o maintain realistic expectations ================================================================================ PENALTY FOR MISSING THE MARKET MSCI EAFE INDEX Average annual total returns, 20 years ended 3/31/99 - -------------------------------------------------------------------------------- (LINE CHART) FULLY INVESTED 240 MONTHS 13.12% MISS THE 2 BEST MONTHS 11.57% MISS THE 5 BEST MONTHS 9.74% MISS THE 7 BEST MONTHS 8.61% MISS THE 9 BEST MONTHS 7.52% MISS THE 14 BEST MONTHS 5.07% ================================================================================ AIM GLOBAL GROWTH FUND 4 7 SCHEDULE OF INVESTMENTS April 30, 1999 (Unaudited)
MARKET SHARES VALUE DOMESTIC COMMON STOCKS-38.24% BANKS (MONEY CENTER)-0.59% Chase Manhattan Corp. (The) 52,500 $ 4,344,376 - -------------------------------------------------------------- BROADCASTING (TELEVISION, RADIO & CABLE)-2.11% AT&T Corp.-Liberty Media Group(a) 60,000 3,832,500 - -------------------------------------------------------------- Clear Channel Communications, Inc.(a) 57,000 3,961,500 - -------------------------------------------------------------- Comcast Corp.-Class A 55,000 3,612,812 - -------------------------------------------------------------- Infinity Broadcasting Corp.-Class A(a) 145,000 4,014,687 - -------------------------------------------------------------- 15,421,499 - -------------------------------------------------------------- CHEMICALS (DIVERSIFIED)-0.44% Monsanto Co. 72,000 3,258,000 - -------------------------------------------------------------- COMMUNICATIONS EQUIPMENT-2.20% Comverse Technology, Inc.(a) 72,000 4,617,000 - -------------------------------------------------------------- General Instrument Corp.(a) 100,000 3,650,000 - -------------------------------------------------------------- Lucent Technologies, Inc. 64,000 3,848,000 - -------------------------------------------------------------- Motorola, Inc. 50,000 4,006,250 - -------------------------------------------------------------- 16,121,250 - -------------------------------------------------------------- COMPUTERS (HARDWARE)-1.08% Dell Computer Corp.(a) 93,500 3,851,031 - -------------------------------------------------------------- Sun Microsystems, Inc.(a) 67,000 4,007,437 - -------------------------------------------------------------- 7,858,468 - -------------------------------------------------------------- COMPUTERS (NETWORKING)-1.65% Ascend Communications, Inc.(a) 46,800 4,522,050 - -------------------------------------------------------------- Cisco Systems, Inc.(a) 66,000 7,528,125 - -------------------------------------------------------------- 12,050,175 - -------------------------------------------------------------- COMPUTERS (PERIPHERALS)-0.98% EMC Corp.(a) 65,700 7,157,194 - -------------------------------------------------------------- COMPUTERS (SOFTWARE & SERVICES)-4.21% America Online, Inc.(a) 64,000 9,136,000 - -------------------------------------------------------------- Microsoft Corp.(a) 84,000 6,830,250 - -------------------------------------------------------------- Oracle Corp.(a) 135,000 3,653,437 - -------------------------------------------------------------- Unisys Corp.(a) 115,500 3,631,031 - -------------------------------------------------------------- Veritas Software Corp.(a) 45,500 3,230,500 - -------------------------------------------------------------- Yahoo! Inc.(a) 24,500 4,279,844 - -------------------------------------------------------------- 30,761,062 - -------------------------------------------------------------- CONSUMER FINANCE-1.20% Capital One Financial Corp. 26,000 4,515,875 - -------------------------------------------------------------- Providian Financial Corp. 33,000 4,259,062 - -------------------------------------------------------------- 8,774,937 - --------------------------------------------------------------
MARKET SHARES VALUE ELECTRICAL EQUIPMENT-0.56% Sanmina Corp.(a) 62,000 $ 4,115,250 - -------------------------------------------------------------- ELECTRONICS (SEMICONDUCTORS)-2.04% Intel Corp. 116,000 7,097,750 - -------------------------------------------------------------- Texas Instruments, Inc. 35,000 3,574,375 - -------------------------------------------------------------- Xilinx, Inc.(a) 92,000 4,197,500 - -------------------------------------------------------------- 14,869,625 - -------------------------------------------------------------- ENTERTAINMENT-0.61% Time Warner Inc. 64,000 4,480,000 - -------------------------------------------------------------- FINANCIAL (DIVERSIFIED)-1.96% Fannie Mae 100,000 7,093,750 - -------------------------------------------------------------- Freddie Mac 115,000 7,216,250 - -------------------------------------------------------------- 14,310,000 - -------------------------------------------------------------- HEALTH CARE (DIVERSIFIED)-2.56% Abbott Laboratories 150,500 7,289,844 - -------------------------------------------------------------- American Home Products Corp. 117,500 7,167,500 - -------------------------------------------------------------- Warner-Lambert Co. 62,000 4,212,125 - -------------------------------------------------------------- 18,669,469 - -------------------------------------------------------------- HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)-1.73% Lilly (Eli) & Co. 90,000 6,626,250 - -------------------------------------------------------------- Pfizer Inc. 52,000 5,983,250 - -------------------------------------------------------------- 12,609,500 - -------------------------------------------------------------- HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-1.95% Guidant Corp. 130,000 6,979,375 - -------------------------------------------------------------- Medtronic, Inc. 101,000 7,265,710 - -------------------------------------------------------------- 14,245,085 - -------------------------------------------------------------- INSURANCE (MULTI-LINE)-0.95% American International Group, Inc. 59,000 6,928,812 - -------------------------------------------------------------- INVESTMENT BANKING/BROKERAGE-0.49% Morgan Stanley, Dean Witter, Discover & Co. 36,000 3,570,750 - -------------------------------------------------------------- LODGING-HOTELS-0.44% Carnival Corp. 78,000 3,217,500 - -------------------------------------------------------------- MANUFACTURING (DIVERSIFIED)-0.53% Tyco International Ltd. 48,000 3,900,000 - -------------------------------------------------------------- RETAIL (BUILDING SUPPLIES)-1.36% Home Depot, Inc. (The) 110,000 6,593,125 - -------------------------------------------------------------- Lowe's Companies, Inc. 63,500 3,349,625 - -------------------------------------------------------------- 9,942,750 - --------------------------------------------------------------
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MARKET SHARES VALUE RETAIL (COMPUTERS & ELECTRONICS)-0.50% Best Buy Co., Inc.(a) 77,000 $ 3,676,750 - -------------------------------------------------------------- RETAIL (DRUG STORES)-0.46% CVS Corp. 70,000 3,333,750 - -------------------------------------------------------------- RETAIL (FOOD CHAINS)-0.47% Kroger Co.(a) 62,500 3,394,531 - -------------------------------------------------------------- RETAIL (GENERAL MERCHANDISE)-1.96% Costco Companies, Inc.(a) 46,500 3,763,594 - -------------------------------------------------------------- Dayton Hudson Corp. 51,000 3,432,938 - -------------------------------------------------------------- Wal-Mart Stores, Inc. 155,000 7,130,000 - -------------------------------------------------------------- 14,326,532 - -------------------------------------------------------------- RETAIL (SPECIALTY)-1.36% Office Depot, Inc.(a) 152,250 3,349,500 - -------------------------------------------------------------- Staples, Inc.(a) 220,000 6,600,000 - -------------------------------------------------------------- 9,949,500 - -------------------------------------------------------------- RETAIL (SPECIALTY-APPAREL)-1.01% Gap, Inc. (The) 50,500 3,361,406 - -------------------------------------------------------------- Intimate Brands, Inc. 80,000 4,000,000 - -------------------------------------------------------------- 7,361,406 - -------------------------------------------------------------- SERVICES (ADVERTISING/MARKETING)-0.43% Outdoor Systems, Inc.(a) 125,000 3,148,438 - -------------------------------------------------------------- SERVICES (DATA PROCESSING)-1.54% Ceridian Corp.(a) 100,000 3,662,500 - -------------------------------------------------------------- Fiserv, Inc.(a) 130,000 7,613,125 - -------------------------------------------------------------- 11,275,625 - -------------------------------------------------------------- TELECOMMUNICATIONS (LONG DISTANCE)-0.87% MCI WorldCom, Inc.(a) 77,000 6,328,438 - -------------------------------------------------------------- Total Domestic Common Stocks, (Cost $221,908,837) 279,400,672 - -------------------------------------------------------------- FOREIGN COMMON STOCKS & OTHER EQUITY INTERESTS-57.35% ARGENTINA-1.06% Telefonica de Argentina S.A.-ADR (Telephone) 66,580 2,488,428 - -------------------------------------------------------------- YPF Sociedad Anonima-ADR (Oil-International Integrated) 125,600 5,275,200 - -------------------------------------------------------------- 7,763,628 - -------------------------------------------------------------- AUSTRALIA-1.35% AMP Ltd. (Insurance-Life/Health) 201,840 2,357,468 - -------------------------------------------------------------- Brambles Industries Ltd. (Air Freight) 102,000 2,997,271 - -------------------------------------------------------------- Cable & Wireless Optus, Ltd. (Telephone)(a) 701,800 1,579,015 - -------------------------------------------------------------- TABCORP Holdings Ltd. (Leisure Time Products) 361,000 2,935,980 - -------------------------------------------------------------- 9,869,734 - --------------------------------------------------------------
MARKET SHARES VALUE BELGIUM-0.80% Delhaize-Le Lion, S.A. (Retail-Food & Drug)(a) 34,800 $ 3,044,385 - -------------------------------------------------------------- UCB S.A. (Manufacturing-Diversified) 60,300 2,803,238 - -------------------------------------------------------------- 5,847,623 - -------------------------------------------------------------- BRAZIL-0.47% Companhia Brasileira de Distribuicao Grupo Pao de Acucar-Pfd. (Retail-Food Chains) 4,350 75,853 - -------------------------------------------------------------- Embratel Participacoes S.A.-ADR (Telephone)(a) 37,000 601,250 - -------------------------------------------------------------- Petroleo Brasileiro S.A.-Petrobras-Pfd. (Oil & Gas-Exploration & Production) 6,286 1,021,725 - -------------------------------------------------------------- Tele Centro Sul Participacoes S.A. (Telephone) 7,400 393,125 - -------------------------------------------------------------- Telebras-ADR (Telephone)(a) 5,100 465,056 - -------------------------------------------------------------- Telecomunicacoes Brasileiras S.A.-ADR (Telephone) 37,000 2,891 - -------------------------------------------------------------- Telesp Participacoes S.A.-ADR (Telephone) 37,000 925,000 - -------------------------------------------------------------- 3,484,900 - -------------------------------------------------------------- CANADA-4.07% ATI Technologies, Inc. (Computers-Hardware)(a) 104,600 1,567,565 - -------------------------------------------------------------- BCE Inc. (Telephone) 76,630 3,495,127 - -------------------------------------------------------------- Bombardier Inc. (Aerospace/Defense) 111,360 1,726,156 - -------------------------------------------------------------- CGI Group, Inc. (Services-Computer Systems)(a) 83,500 2,061,728 - -------------------------------------------------------------- Imasco Ltd. (Manufacturing-Diversified) 179,700 3,956,358 - -------------------------------------------------------------- JDS Fitel Inc. (Manufacturing-Specialized)(a) 46,400 2,800,549 - -------------------------------------------------------------- Loblaw Co. Ltd. (Retail-Specialty) 43,000 1,085,322 - -------------------------------------------------------------- Northern Telecom Ltd.-ADR (Communications Equipment) 109,046 7,435,574 - -------------------------------------------------------------- Shaw Communications Inc. (Broadcasting-Television, Radio & Cable) 54,000 2,222,222 - -------------------------------------------------------------- Toronto-Dominion Bank (Banks-Regional) 63,220 3,375,636 - -------------------------------------------------------------- 29,726,237 - -------------------------------------------------------------- CROATIA-0.04% Pliva DD GDR (Health Care-Drugs-Major Pharmaceutical) (Acquired 05/13/98; Cost $336,980)(b) 20,300 321,755 - -------------------------------------------------------------- FINLAND-1.52% Nokia Oyj A.B.-Class A (Communications Equipment) 99,200 7,645,872 - -------------------------------------------------------------- Sonera Group Oyi (Telecommunications-Cellular/Wireless) 174,410 3,464,330 - -------------------------------------------------------------- 11,110,202 - -------------------------------------------------------------- FRANCE-8.28% Accor S.A. (Lodging-Hotels) 13,000 3,426,920 - -------------------------------------------------------------- Altran Technologies, S.A. (Services-Commercial & Consumer) 13,340 3,171,235 - -------------------------------------------------------------- AXA S.A. (Insurance-Multi-Line) 41,580 5,368,411 - --------------------------------------------------------------
6 9
MARKET SHARES VALUE FRANCE-(CONTINUED) Banque Nationale de Paris (Banks-Major Regional) 47,560 $ 3,942,075 - -------------------------------------------------------------- Cap Gemini Sogeti S.A. (Computer-Software & Services) 23,520 3,595,803 - -------------------------------------------------------------- Carrefour Supermarche S.A. (Retail-Food Chains) 6,900 5,467,646 - -------------------------------------------------------------- Compagnie Generale des Eaux (Manufacturing-Diversified) 8,700 2,032,348 - -------------------------------------------------------------- Danone (Foods) 13,280 3,549,839 - -------------------------------------------------------------- Elf Aquitaine S.A. (Oil & Gas-Refining & Marketing) 20,300 3,152,851 - -------------------------------------------------------------- Pinault-Printemps-Redoute S.A. (Retail-General Merchandise) 25,320 4,200,040 - -------------------------------------------------------------- Promodes (Retail-Food Chains) 5,570 3,530,990 - -------------------------------------------------------------- Rexal S.A. (Distributors-Food & Health) 8,920 739,817 - -------------------------------------------------------------- Rhone-Poulenc-Class A (Chemicals-Diversified) 96,980 4,610,890 - -------------------------------------------------------------- Societe Generale (Banks-Major Regional) 16,040 2,870,832 - -------------------------------------------------------------- Societe Television Francaise 1 (Broadcasting-Television, Radio & Cable) 17,170 3,356,078 - -------------------------------------------------------------- Suez Lyonnaise des Eaux (Manufacturing-Diversified) 20,590 3,502,453 - -------------------------------------------------------------- Total S.A.-Class B (Oil & Gas-Refining & Marketing) 28,800 3,943,552 - -------------------------------------------------------------- 60,461,780 - -------------------------------------------------------------- GERMANY-2.62% Allianz A.G. (Insurance-Multi-Line) 6,060 1,930,412 - -------------------------------------------------------------- DaimlerChrysler A.G. (Automobiles) 22,280 2,199,807 - -------------------------------------------------------------- DaimlerChrysler A.G.-ADR (Automobiles) 46,025 4,519,080 - -------------------------------------------------------------- EM.TV & Merchandising A.G. (Broadcasting-Television, Radio, & Cable)(a) 2,000 1,891,224 - -------------------------------------------------------------- Mannesmann A.G. (Machinery-Diversified) 52,360 6,892,991 - -------------------------------------------------------------- Porsche A.G. (Automobiles) 700 1,730,629 - -------------------------------------------------------------- 19,164,143 - -------------------------------------------------------------- HONG KONG-2.03% China Telecom Ltd. (Telecommunications-Cellular/Wireless)(a) 1,496,000 3,416,340 - -------------------------------------------------------------- Cosco Pacific Ltd. (Financial-Diversified) 5,219,000 3,535,109 - -------------------------------------------------------------- Dao Heng Bank Group Ltd. (Banks-Regional)(a) 828,000 3,365,094 - -------------------------------------------------------------- Hutchison Whampoa Ltd. (Retail-Food Chains) 392,000 3,515,015 - -------------------------------------------------------------- Ng Fung Hong Ltd. (Foods) 1,041,700 1,007,999 - -------------------------------------------------------------- 14,839,557 - -------------------------------------------------------------- INDONESIA-0.26% Gulf Indonesia Resources Ltd. (Oil-International Integrated)(a) 182,800 1,885,125 - -------------------------------------------------------------- IRELAND-1.20% Allied Irish Banks PLC (Banks-Regional) 290,600 4,681,084 - --------------------------------------------------------------
MARKET SHARES VALUE IRELAND-(CONTINUED) Bank of Ireland (Banks-Major Regional) 90,242 $ 1,804,380 - -------------------------------------------------------------- CRH PLC (Construction-Cement & Aggregates) 116,000 2,276,491 - -------------------------------------------------------------- 8,761,955 - -------------------------------------------------------------- ITALY-2.45% Assicurazioni Generali (Insurance-Multi-Line) 90,550 3,525,462 - -------------------------------------------------------------- Banca Commerciale Italiana (Banks-Major Regional) 277,000 2,279,855 - -------------------------------------------------------------- Banca Popolare di Brescia (Banks-Regional)(a) 48,000 1,650,754 - -------------------------------------------------------------- Credito Italiano S.p.A. (Banks-Major Regional) 606,100 3,073,800 - -------------------------------------------------------------- Olivetti S.p.A. (Telecommunications-(Cellular/ Wireless)(a) 508,840 1,774,129 - -------------------------------------------------------------- San Paolo-IMI S.p.A. (Banks-Major Regional) 173,170 2,598,071 - -------------------------------------------------------------- Telecom Italia S.p.A. (Telephone) 278,388 2,961,898 - -------------------------------------------------------------- 17,863,969 - -------------------------------------------------------------- JAPAN-7.49% Advantest Corp. (Electronics-Instrumentation) 50,000 3,822,483 - -------------------------------------------------------------- Alpa Electric Co., Ltd. (Electronics-Component Distributors)(a) 207,000 3,509,943 - -------------------------------------------------------------- Hirose Electric Co. Ltd. (Electronics-Component Distributors) 22,100 2,054,093 - -------------------------------------------------------------- Hoya Corp.(Manufacturing-Specialized) 57,000 2,983,044 - -------------------------------------------------------------- Kirin Brewery Co., Ltd. (Beverages-Alcoholic)(a) 311,000 3,515,596 - -------------------------------------------------------------- Matsushita Communication Industrial Co., Ltd. (Telephone) 63,000 4,520,913 - -------------------------------------------------------------- Murata Manufacturing Co., Ltd. (Electronics-Component Distributors) 80,000 4,575,256 - -------------------------------------------------------------- NEC Corp. (Computers-Hardware) 358,000 4,274,716 - -------------------------------------------------------------- Nippon Telegraph & Telephone Corp. (Telephone) 432 4,702,533 - -------------------------------------------------------------- NTT Data Corp. (Computers-Software & Services) 518 4,098,891 - -------------------------------------------------------------- NTT Mobile Communications Network, Inc. (Telecommunications-Cellular/Wireless) 87 5,099,435 - -------------------------------------------------------------- Okuma Corp. (Machine Tools) 582,000 2,924,011 - -------------------------------------------------------------- Omron Corp. (Electronics-Component Distributors) 13,000 179,066 - -------------------------------------------------------------- Takeda Chemical Industries (Health Care-Drugs-Generic & Other) 94,000 4,085,074 - -------------------------------------------------------------- Tokyo Electron Ltd. (Electronics-Semiconductors) 77,000 4,384,342 - -------------------------------------------------------------- 54,729,396 - -------------------------------------------------------------- MEXICO-3.35% Cifra S.A. de C.V. (Retail-General Merchandise)(a) 1,689,000 3,162,305 - -------------------------------------------------------------- Coca-Cola Femsa S.A.-ADR (Beverages-Non-Alcoholic) 148,000 3,061,750 - --------------------------------------------------------------
7 10
MARKET SHARES VALUE MEXICO-(CONTINUED) Formento Economico Mexicano, S.A. de C.V. (Beverages-Alcoholic) 111,590 $ 4,059,086 - -------------------------------------------------------------- Grupo Financiero Banamex Accival, S.A. de C.V. (Financial-Diversified)(b) 1,353,600 3,449,922 - -------------------------------------------------------------- Grupo Modelo S.A. de C.V.-Series C (Beverages-Alcoholic) 445,440 1,173,860 - -------------------------------------------------------------- Grupo Televisa S.A.-GDR (Entertainment)(a) 105,200 4,313,200 - -------------------------------------------------------------- Kimberly-Clark de Mexico, S.A. de C.V.-Class A (Paper & Forest Products) 518,000 2,018,182 - -------------------------------------------------------------- Telefonos de Mexico S.A.-ADR (Telephone) 42,500 3,219,375 - -------------------------------------------------------------- 24,457,680 - -------------------------------------------------------------- NETHERLANDS-2.80% Equant N.V. (Computers-Peripherals)(a) 17,000 1,542,880 - -------------------------------------------------------------- Getronics N.V. (Computers-Software & Services) 47,560 1,952,194 - -------------------------------------------------------------- Koninklijke Ahold N.V. (Retail-Food Chains) 152,200 5,652,363 - -------------------------------------------------------------- Koninklijke Numico N.V. (Foods) 37,580 1,413,503 - -------------------------------------------------------------- Philips Electronics N.V. (Household Furniture & Appliances) 23,000 1,980,503 - -------------------------------------------------------------- Verenigde Nederlandse Uitgeversbedrijven Verenigd Bezit (Publishing) 101,830 4,120,639 - -------------------------------------------------------------- Wolters Kluwer N.V. (Specialty-Printing) 86,460 3,763,592 - -------------------------------------------------------------- 20,425,674 - -------------------------------------------------------------- NEW ZEALAND-0.43% Auckland International Airport Ltd. (Airlines) 1,800,000 3,125,358 - -------------------------------------------------------------- NORWAY-0.15% Merkantildata A.S.A. (Services-Commercial & Consumer) 106,720 1,065,765 - -------------------------------------------------------------- PHILIPPINES-0.31% Philippine Long Distance Telephone Co. (Telephone) 49,020 1,585,657 - -------------------------------------------------------------- Philippine Long Distance Telephone Co.-ADR (Telephone) 20,650 665,963 - -------------------------------------------------------------- 2,251,620 - -------------------------------------------------------------- PORTUGAL-0.88% Banco Comercial Portugues, S.A. (Banks-Major Regional) 116,580 3,287,477 - -------------------------------------------------------------- Jeronimo Martins & Filho, S.A. (Retail-General Merchandise) 31,320 1,030,789 - -------------------------------------------------------------- Telecel-Comunicacaoes Pessoais, S.A. (Telecommunications-Cellular/Wireless) 15,600 2,084,996 - -------------------------------------------------------------- 6,403,262 - -------------------------------------------------------------- SINGAPORE-1.46% Allgreen Properties Ltd. (Homebuilding)(a) 1,020,000 619,348 - -------------------------------------------------------------- Development Bank of Singapore Ltd. (Banks-Major Regional) 241,000 2,557,331 - -------------------------------------------------------------- Keppel Corp. Ltd. (Engineering & Construction)(a) 782,600 2,232,968 - --------------------------------------------------------------
MARKET SHARES VALUE SINGAPORE-(CONTINUED) NatSteel Ltd. (Computers-Hardware) 1,553,000 $ 2,343,736 - -------------------------------------------------------------- Singapore Press Holdings Ltd. (Publishing-Newspapers) 200,000 2,947,592 - -------------------------------------------------------------- 10,700,975 - -------------------------------------------------------------- SPAIN-1.71% Banco Popular Espanol S.A. (Banks-Major Regional)(a) 26,000 1,840,510 - -------------------------------------------------------------- Corp. Financiera Reunida, S.A. (Investment Management)(a) 119,480 1,405,013 - -------------------------------------------------------------- Endesa S.A. (Electric Companies) 83,550 1,857,301 - -------------------------------------------------------------- Telefonica de Espana (Telephone) 100,460 4,707,354 - -------------------------------------------------------------- Telefonica S.A. (Telephone), Bonus Rights (expiring 05/20/99) 100,460 93,404 - -------------------------------------------------------------- Union Electrica Fenosa, S.A. (Electric Companies) 197,000 2,620,487 - -------------------------------------------------------------- 12,524,069 - -------------------------------------------------------------- SWEDEN-1.50% Electrolux A.B. (Household Furniture & Appliances) 170,000 3,445,538 - -------------------------------------------------------------- Hennes & Mauritz A.B.-Class B (Retail-Specialty-Apparel) 52,660 4,537,611 - -------------------------------------------------------------- Svenska Handelsbanken-Class A (Banks-Major Regional) 30,650 1,147,967 - -------------------------------------------------------------- WM-Data A.B. (Computers-Software & Services) 48,720 1,790,115 - -------------------------------------------------------------- 10,921,231 - -------------------------------------------------------------- SWITZERLAND-2.10% ABB A.G. (Engineering & Construction) 2,000 2,916,694 - -------------------------------------------------------------- Adecco S.A. (Services-Commercial & Consumer) 6,600 3,326,604 - -------------------------------------------------------------- Julius Baer Holding A.G. (Banks-Major Regional)(a) 545 1,773,563 - -------------------------------------------------------------- UBS A.G. (Banks-Major Regional) 8,398 2,851,336 - -------------------------------------------------------------- Zurich Allied A.G. (Insurance-Multi-Line)(a) 6,960 4,484,289 - -------------------------------------------------------------- 15,352,486 - -------------------------------------------------------------- TAIWAN-0.32% Inventec Co., Ltd. (Computers-Hardware)(a) 714,000 2,347,248 - -------------------------------------------------------------- UNITED KINGDOM-8.70% Airtours PLC (Services-Commercial & Consumer) 250,200 1,730,628 - -------------------------------------------------------------- Barclays PLC (Banks-Major Regional) 73,500 2,333,902 - -------------------------------------------------------------- British Energy PLC (Electric Companies) 290,000 2,465,421 - -------------------------------------------------------------- British Sky Broadcasting Group PLC (Broadcasting-Television, Radio & Cable) 440,000 3,885,734 - -------------------------------------------------------------- British Telecommunications PLC (Communications Equipment) 116,000 1,948,079 - -------------------------------------------------------------- Cable & Wireless PLC (Telecommunications-Cellular/Wireless) 262,200 3,762,232 - --------------------------------------------------------------
8 11
MARKET SHARES VALUE UNITED KINGDOM-(CONTINUED) Compass Group PLC (Services-Commercial & Consumer) 288,800 $ 2,959,271 - -------------------------------------------------------------- Dixons Group PLC (Retail-Specialty) 226,300 4,830,627 - -------------------------------------------------------------- General Electric Co. PLC (Manufacturing-Diversified) 367,100 3,888,555 - -------------------------------------------------------------- Granada Group PLC (Leisure Time-Products) 268,000 5,725,072 - -------------------------------------------------------------- Hays PLC (Services-Commercial & Consumer) 461,300 5,127,546 - -------------------------------------------------------------- Logica PLC (Computer Software/Services) 232,000 2,239,171 - -------------------------------------------------------------- Misys PLC (Services-Commercial & Consumer) 348,000 3,266,391 - -------------------------------------------------------------- Orange PLC (Telephone)(a) 310,300 4,222,797 - -------------------------------------------------------------- Provident Financial PLC (Consumer Finance) 202,478 3,377,572 - -------------------------------------------------------------- Railtrack Group PLC (Shipping) 141,289 2,947,788 - -------------------------------------------------------------- Stagecoach Holdings PLC (Shipping) 214,600 724,069 - -------------------------------------------------------------- Unilever PLC (Foods) 165,900 1,470,436 - -------------------------------------------------------------- Vodafone Group PLC (Telecommunications-Cellular/Wireless) 185,300 3,412,942 - -------------------------------------------------------------- WPP Group PLC (Services-Advertising/ Marketing) 366,600 3,237,523 - -------------------------------------------------------------- 63,555,756 - -------------------------------------------------------------- Total Foreign Common Stocks & Other Equity Interests (Cost $343,597,281) 418,961,128 - --------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE NON-U.S. DOLLAR DENOMINATED CONVERTIBLE BONDS & NOTES-0.24%(C) UNITED KINGDOM-0.24% Airtours PLC (Services-Commercial & Consumer) Conv. Sub. Notes, 5.75%, 01/05/04 GBP 113,000 $ 201,540 - -------------------------------------------------------------- Conv. Sub. Notes, 5.75%, 01/05/04 (Acquired 12/09/98; Cost $1,452,475)(b) 878,000 1,565,944 - -------------------------------------------------------------- Total Non-U.S. Dollar Denominated Convertible Bonds & Notes, (Cost $1,642,654) 1,767,484 - -------------------------------------------------------------- REPURCHASE AGREEMENT-2.00%(D) West LB Securities Americas, Inc., 4.88%, 05/03/99(e) (Cost $14,626,170) $14,626,170 14,626,170 - -------------------------------------------------------------- TOTAL INVESTMENTS-97.83% 714,755,454 - -------------------------------------------------------------- OTHER ASSETS LESS OF LIABILITIES-2.17% 15,851,343 - -------------------------------------------------------------- NET ASSETS-100.00% $730,606,797 ==============================================================
Investment Abbreviations: ADR - American Depositary Receipt Conv. - Convertible GBP - British Pounds Sterling GDR - Global Depositary Receipt Pfd. - Preferred Sub. - Subordinated 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 $1,887,699 which represented 0.26% of the Fund's net assets. (c)Foreign denominated security. Par value and coupon are denominated in currency indicated. (d)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. (e)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. 9 12 STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1999 (UNAUDITED) ASSETS: Investments, at market value (cost $581,774,942) $714,755,454 - ------------------------------------------------------- Foreign currencies, at value (cost $5,129,747) 5,154,627 - ------------------------------------------------------- Receivables for: Investments sold 16,843,700 - ------------------------------------------------------- Capital stock sold 1,670,385 - ------------------------------------------------------- Dividends and interest 1,026,116 - ------------------------------------------------------- Investment for deferred compensation plan 18,749 - ------------------------------------------------------- Other assets 50,165 - ------------------------------------------------------- Total assets 739,519,196 ======================================================= LIABILITIES: Payables for: Investments purchased 5,882,738 - ------------------------------------------------------- Capital stock reacquired 1,617,920 - ------------------------------------------------------- Deferred compensation 18,749 - ------------------------------------------------------- Accrued advisory fees 512,346 - ------------------------------------------------------- Accrued administrative services fees 8,134 - ------------------------------------------------------- Accrued directors' fees 5,600 - ------------------------------------------------------- Accrued distribution fees 538,057 - ------------------------------------------------------- Accrued transfer agent fees 144,680 - ------------------------------------------------------- Accrued operating expenses 184,175 - ------------------------------------------------------- Total liabilities 8,912,399 - ------------------------------------------------------- Net assets applicable to shares outstanding $730,606,797 ======================================================= NET ASSETS: Class A $339,528,208 ======================================================= Class B $369,498,327 ======================================================= Class C $ 21,580,262 ======================================================= CAPITAL STOCK, $0.001 PAR VALUE PER SHARE: Class A: Authorized 200,000,000 - ------------------------------------------------------- Outstanding 16,474,741 ======================================================= Class B: Authorized 200,000,000 - ------------------------------------------------------- Outstanding 18,391,095 ======================================================= Class C: Authorized 200,000,000 - ------------------------------------------------------- Outstanding 1,073,688 ======================================================= Class A: Net asset value and redemption price per share $ 20.61 - ------------------------------------------------------- Offering price per share: (Net asset value $20.61 / 95.25%) $ 21.64 ======================================================= Class B: Net asset value and offering price per share $ 20.09 ======================================================= Class C: Net asset value and offering price per share $ 20.10 =======================================================
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED) INVESTMENT INCOME: Dividends (net of $231,741 foreign withholding tax) $ 2,055,138 - -------------------------------------------------------- Interest 956,993 - -------------------------------------------------------- Total investment income 3,012,131 - -------------------------------------------------------- EXPENSES: Advisory fees 2,638,830 - -------------------------------------------------------- Administrative services fees 47,945 - -------------------------------------------------------- Custodian fees 188,807 - -------------------------------------------------------- Directors' fees 8,247 - -------------------------------------------------------- Distribution fees -- Class A 695,874 - -------------------------------------------------------- Distribution fees -- Class B 1,633,641 - -------------------------------------------------------- Distribution fees -- Class C 79,117 - -------------------------------------------------------- Transfer agent fees -- Class A 317,271 - -------------------------------------------------------- Transfer agent fees -- Class B 463,485 - -------------------------------------------------------- Transfer agent fees -- Class C 26,793 - -------------------------------------------------------- Other 116,938 - -------------------------------------------------------- Total expenses 6,216,948 - -------------------------------------------------------- Less: Expenses paid indirectly (6,444) - -------------------------------------------------------- Net expenses 6,210,504 - -------------------------------------------------------- Net investment income (loss) (3,198,373) ======================================================== REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES, FOREIGN CURRENCIES AND FUTURES CONTRACTS: Net realized gain (loss) from: Investment securities 47,037,157 - -------------------------------------------------------- Foreign currencies (136,705) - -------------------------------------------------------- Futures contracts 2,042,833 - -------------------------------------------------------- 48,943,285 - -------------------------------------------------------- Net unrealized appreciation (depreciation) of: Investment securities 52,974,718 - -------------------------------------------------------- Foreign currencies (29,687) - -------------------------------------------------------- Futures contracts (797,175) - -------------------------------------------------------- 52,147,856 - -------------------------------------------------------- Net gain from investment securities, foreign currencies and futures contracts 101,091,141 - -------------------------------------------------------- Net increase in net assets resulting from operations $ 97,892,768 ========================================================
See Notes to Financial Statements. 10 13 STATEMENT OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED APRIL 30, 1999 AND THE YEAR ENDED OCTOBER 31, 1998 (UNAUDITED)
APRIL 30, OCTOBER 31, 1999 1998 ------------ ------------- OPERATIONS: Net investment income (loss) $ (3,198,373) $ (2,809,816) - ------------------------------------------------------------------------------------------- Net realized gain from investment securities, foreign currencies and futures contracts 48,943,285 18,919,692 - ------------------------------------------------------------------------------------------- Net unrealized appreciation of investment securities, foreign currencies and futures contracts 52,147,856 20,734,353 - ------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 97,892,768 36,844,229 - ------------------------------------------------------------------------------------------- Distributions to shareholders from net realized gains: Class A (6,185,146) (4,566,706) - ------------------------------------------------------------------------------------------- Class B (7,892,336) (5,964,749) - ------------------------------------------------------------------------------------------- Class C (358,282) (47,034) - ------------------------------------------------------------------------------------------- Share transactions-net: Class A 82,661,988 27,194,800 - ------------------------------------------------------------------------------------------- Class B 43,388,019 44,408,521 - ------------------------------------------------------------------------------------------- Class C 7,827,618 11,162,365 - ------------------------------------------------------------------------------------------- Net increase in net assets 217,334,629 109,031,426 - ------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 513,272,168 404,240,742 - ------------------------------------------------------------------------------------------- End of period $730,606,797 $ 513,272,168 =========================================================================================== NET ASSETS CONSIST OF: Capital (par value and additional paid-in) $550,343,771 $ 416,466,146 - ------------------------------------------------------------------------------------------- Undistributed net investment income (loss) (4,437,320) (1,238,947) - ------------------------------------------------------------------------------------------- Undistributed net realized gain from investment securities, foreign currencies, futures and option contracts 51,724,054 17,216,533 - ------------------------------------------------------------------------------------------- Unrealized appreciation of investment securities, foreign currencies, futures and option contracts 132,976,292 80,828,436 - ------------------------------------------------------------------------------------------- $730,606,797 $ 513,272,168 ===========================================================================================
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999 (UNAUDITED) NOTE 1-SIGNIFICANT ACCOUNTING POLICIES AIM Global Growth Fund (the "Fund") is an investment 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. 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, at the closing bid price on the day of valuation. Securities traded in the over-the-counter market (but 11 14 not including securities reported on the NASDAQ National Market System) are valued at the mean between the closing 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, 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 an independent 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. Bond Premiums-It is the policy of the Fund not to amortize market premiums on bonds for financial reporting purposes. C. 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 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. D. 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. E. 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. F. 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. G. Stock Index Futures Contracts-The Fund may purchase or sell stock index 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 include the possibility of an illiquid market and that a change in the value of contracts may not correlate with changes in the value of the securities being hedged. H. Covered Call Options-The Fund may write call options, but only on a covered basis; that is, the Fund will own the underlying security. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written. 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 12 15 sale of the underlying security and the proceeds of the sale are increased by the premium originally received. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. The purchaser of a call option has the right to acquire the security which is the subject of the call option at any time during the option period. During the option period, in return for the premium paid by the purchaser of the option, the Fund has given up the opportunity for capital appreciation above the exercise price should the market price of the underlying security increase, but has retained the risk of loss should the price of the underlying security decline. During the option period, the Fund may be required at any time to deliver the underlying security against payment of the exercise price. This obligation is terminated upon the expiration of the option period or at such earlier time at which the Fund effects a closing purchase transaction by purchasing (at a price which may be higher than that received when the call option was written) a call option identical to the one originally written. I. Put options-The Fund may purchase put options. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option's underlying instrument at a fixed strike price. In return for this right, a Fund pays an option premium. The option's underlying instrument may be a security, or a futures contract. Put options may be used by a Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund's resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. J. 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 0.85% 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. The Fund, pursuant to a master administrative services agreement with AIM, has agreed to reimburse AIM for administrative costs incurred in providing accounting services to the Fund. During the six months ended April 30, 1999, AIM was reimbursed $47,945 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 services to the Fund. During the six months ended April 30, 1999, AFS was paid $461,304 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 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 C Plan"), and the Fund's Class B shares (the "Class B Plan") (collectively, the "Plans"). The Fund, pursuant to the Class A and C Plan, pays AIM Distributors compensation at an annual rate of 0.50% of the average daily net assets of the 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 daily 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 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, Class B and Class C shares paid AIM Distributors $695,874, $1,633,641 and $79,117, respectively, as compensation under the Plans. AIM Distributors received commissions of $86,055 from the 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 $16,760 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 $1,163 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 $4,189 and $2,255, respectively, under expense offset arrangements. The effect of the above arrangements resulted in a reduction of the Fund's total expenses of $6,444 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. 13 16 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) the limits set by its prospectus for borrowings. 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 $421,210,440 and $360,767,920, 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 $143,790,260 - --------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (12,487,541) - --------------------------------------------------------- Net unrealized appreciation of investment securities $131,302,719 =========================================================
Cost of investments for tax purposes is $583,452,735. NOTE 7-CAPITAL STOCK Changes in the Fund's capital stock outstanding during the six months ended April 30, 1999 and the year ended October 31, 1998 were as follows:
APRIL 30, OCTOBER 31, 1999 1998 -------------------------- -------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------- ----------- ------------ Sold: Class A 10,061,660 $ 196,723,664 14,601,141 $264,657,310 - ------------------------------------------------------------------------------ Class B 4,342,290 83,747,906 4,603,864 82,487,081 - ------------------------------------------------------------------------------ Class C* 529,211 10,296,707 731,595 13,444,846 - ------------------------------------------------------------------------------ Issued as reinvestment of distributions: Class A 314,742 5,777,394 265,883 4,315,756 - ------------------------------------------------------------------------------ Class B 411,122 7,371,557 348,564 5,562,820 - ------------------------------------------------------------------------------ Class C* 18,825 338,398 2,787 44,837 - ------------------------------------------------------------------------------ Reacquired: Class A (6,134,007) (119,839,070) (13,382,242) (241,778,266) - ------------------------------------------------------------------------------ Class B (2,485,859) (47,731,444) (2,513,498) (43,641,380) - ------------------------------------------------------------------------------ Class C* (145,774) (2,807,487) (130,050) (2,327,318) - ------------------------------------------------------------------------------ 6,912,210 $ 133,877,625 4,528,044 $ 82,765,686 ==============================================================================
* Class C shares commenced sales on August 4, 1997. 14 17 NOTE 8-FINANCIAL HIGHLIGHTS Shown below are the financial highlights for a share of Class A and Class B capital stock outstanding during the six months April 30, 1999, each of the years in the four-year period ended October 31, 1998 and the period September 15, 1994 (date operations commenced) through October 31, 1994 and for a share of Class C capital stock outstanding during the six months April 30, 1999, the year ended October 31, 1998 and the period August 4, 1997 (date sales commenced) through October 31, 1997.
CLASS A ---------------------------------------------------------------- OCTOBER 31, APRIL 30, --------------------------------------------------- 1999 1998 1997 1996 1995 1994 --------- -------- -------- -------- ------- ------ Net asset value, beginning of period $ 17.91 $ 16.65 $ 14.20 $ 12.32 $ 10.23 $10.00 - ------------------------------------------------------------ -------- -------- -------- -------- ------- ------ Income from investment operations: Net investment income (loss) (0.05) (0.05) (0.04) (0.01) (0.02) - - ------------------------------------------------------------ -------- -------- -------- -------- ------- ------ Net gains on securities (both realized and unrealized) 3.25 1.74 2.49 2.11 2.11 0.23 - ------------------------------------------------------------ -------- -------- -------- -------- ------- ------ Total from investment operations 3.20 1.69 2.45 2.10 2.09 0.23 - ------------------------------------------------------------ -------- -------- -------- -------- ------- ------ Less distributions: Dividends from net investment income - - - - (0.004) - - ------------------------------------------------------------ -------- -------- -------- -------- ------- ------ Distributions from net realized gains (0.50) (0.43) - (0.22) - - - ------------------------------------------------------------ -------- -------- -------- -------- ------- ------ Total distributions (0.50) (0.43) - (0.22) (0.004) - - ------------------------------------------------------------ -------- -------- -------- -------- ------- ------ Net asset value, end of period $ 20.61 $ 17.91 $ 16.65 $ 14.20 $ 12.32 $10.23 ============================================================ ======== ======== ======== ======== ======= ====== Total return(a) 18.20% 10.43% 17.25% 17.26% 20.48% 2.30% ============================================================ ======== ======== ======== ======== ======= ====== Ratios/supplemental data: Net assets, end of period (000s omitted) $339,528 $219,050 $178,917 $114,971 $23,754 $3,093 ============================================================ ======== ======== ======== ======== ======= ====== Ratio of expenses to average net assets(b) 1.69%(c) 1.70% 1.76% 1.93% 2.12% 1.95%(d) ============================================================ ======== ======== ======== ======== ======= ====== Ratio of net investment income (loss) to average net assets(e) (0.72)%(c) (0.27)% (0.30)% (0.13)% (0.28)% 0.10%(d) ============================================================ ======== ======== ======== ======== ======= ====== Portfolio turnover rate 62% 97% 96% 82% 79% 6% ============================================================ ======== ======== ======== ======== ======= ======
(a) Does not deduct sales charges and is not annualized for periods less than one year. (b) After fee waivers and/or expense reimbursements. Ratios of expenses to average net assets prior to fee waivers and/or expense reimbursements were 1.94%, 2.98% and 5.67% (annualized) for 1996-1994. (c) Ratios are annualized and based on average net assets of $280,656,230. (d) Annualized. (e) 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 (0.14)%, (1.14)% and (3.63)% (annualized) for 1996-1994.
CLASS B CLASS C ---------------------------------------------------------------- ----------------------------- OCTOBER 31, OCTOBER 31, APRIL 30, --------------------------------------------------- APRIL 30, ---------------- 1999 1998 1997 1996 1995 1994 1999 1998 1997 --------- -------- -------- -------- ------- ------ --------- ------- ------ Net asset value, beginning of period $ 17.52 $ 16.39 $ 14.05 $ 12.26 $ 10.22 $10.00 $ 17.52 $ 16.39 $17.39 - ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------ Income from investment operations: Net investment income (loss) (0.12)(a) (0.15)(a) (0.11) (0.05) (0.04) - (0.12)(a) (0.15)(a) (0.03) - ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------ Net gains (losses) on securities (both realized and unrealized) 3.19 1.71 2.45 2.06 2.08 0.22 3.20 1.71 (0.97) - ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------ Total from investment operations 3.07 1.56 2.34 2.01 2.04 0.22 3.08 1.56 (1.00) - ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------ Less distributions: Distributions from net realized gains (0.50) (0.43) - (0.22) - - (0.50) (0.43) - - ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------ Total distributions (0.50) (0.43) - (0.22) - - (0.50) (0.43) - - ----------------------------- -------- -------- -------- -------- ------- ------ ------- ------- ------ Net asset value, end of period $ 20.09 $ 17.52 $ 16.39 $ 14.05 $ 12.26 $10.22 $ 20.10 $ 17.52 $16.39 ============================= ======== ======== ======== ======== ======= ====== ======= ======= ====== Total return(b) 17.86% 9.78% 16.65% 16.60% 19.96% 2.20% 17.91% 9.78% (5.75)% ============================= ======== ======== ======== ======== ======= ====== ======= ======= ====== Ratios/supplemental data: Net assets, end of period (000s omitted) $369,498 $282,456 $224,225 $121,848 $17,157 $1,277 $21,580 $11,765 $1,100 ============================= ======== ======== ======== ======== ======= ====== ======= ======= ====== Ratio of expenses to average net assets 2.25%(c) 2.26% 2.29% 2.48%(d) 2.64%(d) 2.51%(d)(e) 2.25%(c) 2.26% 2.29%(e) ============================= ======== ======== ======== ======== ======= ====== ======= ======= ====== Ratio of net investment income (loss) to average net assets (1.28)%(c) (0.83)% (0.83)% (0.69)%(f) (0.79)%(f) (0.47)%(e)(f) (1.28)%(c) (0.83)% (0.83)%(e) ============================= ======== ======== ======== ======== ======= ====== ======= ======= ====== Portfolio turnover rate 62% 97% 96% 82% 79% 6% 62% 97% 96% ============================= ======== ======== ======== ======== ======= ====== ======= ======= ======
(a) Calculated using average shares outstanding. (b) Does not deduct contingent deferred sales charges and is not annualized for periods less than one year. (c) Ratios are annualized and based on average net assets of $329,435,979 and $15,954,505 for Class B and Class C, respectively. (d) After fee waivers and/or expense reimbursements. Ratios of expenses to average net assets prior to fee waivers and/or expense reimbursements were 2.49%, 3.38% and 6.20% (annualized) for 1996-1994. (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 (0.69)%, (1.54)% and (4.16)% (annualized) for 1996-1994. 15 18
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 TRANSFER AGENT Director Dana R. Sutton Cortland Trust Inc. Vice President and Treasurer A I M Fund Services, Inc. P.O. Box 4739 Edward K. Dunn Jr. Robert G. Alley Houston, TX 77210-4739 Chairman, Mercantile Mortgage Corp.; Vice President Formerly Vice Chairman and President, CUSTODIAN Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox President, Mercantile Bankshares Vice President State Street Bank and Trust Company 225 Franklin Street Jack Fields Edgar M. Larsen Boston MA 02110 Chief Executive Officer Vice President Texana Global, Inc.; COUNSEL TO THE FUND Formerly Member Mary J. Benson of the U.S. House of Representatives Assistant Vice President and Ballard Spahr Assistant Treasurer Andrews & Ingersoll, LLP Carl Frischling 1735 Market Street Partner Sheri Morris Philadelphia, PA 19103 Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and Assistant Treasurer COUNSEL TO THE DIRECTORS Robert H. Graham President and Chief Executive Officer Renee A. Friedli Kramer, Levin, Naftalis & Frankel LLP A I M Management Group Inc. Assistant Secretary 919 Third Avenue New York, NY 10022 Prema Mathai-Davis P. Michelle Grace Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary DISTRIBUTOR Commissioner, New York City Dept. for the Aging; and member of the Board of Directors, Jeffrey H. Kupor A I M Distributors, Inc. Metropolitan Transportation Authority of Assistant Secretary 11 Greenway Plaza New York State Suite 100 Nancy L. Martin Houston, TX 77046 Lewis F. Pennock Assistant Secretary Attorney Ofelia M. Mayo Louis S. Sklar Assistant Secretary Executive Vice President Hines Interests Lisa A. Moss Limited Partnership Assistant Secretary Kathleen J. Pflueger Assistant Secretary Samuel D. Sirko Assistant Secretary Stephen I. Winer Assistant Secretary
16 19 HOW AIM MAKES INVESTING EASY FOR YOU o LOW INITIAL INVESTMENT. You can get your investment program started for as little as $500. Subsequent investments can be made for only $50. o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. Distributions may be received in cash or reinvested in the Fund free of charge. Over time, the power of compounding can significantly increase the value of your assets. o AUTOMATIC INVESTMENT PLAN. You may build your investment by regularly purchasing additional shares. Pre-authorized checks for $50 or more can be drafted monthly from your personal checking account. o EASY ACCESS TO YOUR MONEY. Your shares may be redeemed at net asset value any day the New York Stock Exchange is open. The price of shares sold may be more or less than their original cost, depending on market conditions. o SYSTEMATIC WITHDRAWAL PLAN. You may elect to receive checks of at least $50 monthly or quarterly through a systematic withdrawal plan. o EXCHANGE PRIVILEGE. As your goals change, you may exchange all or part of your assets for those of other funds within the same share class of The AIM Family of Funds--Registered Trademark--. The exchange privilege may be modified or discontinued for any of the AIM funds. Certain restrictions apply. o RETIREMENT PLANS. You may purchase shares of an AIM fund for your Individual Retirement Account (IRA), Roth IRA, or any other type of retirement plan, and earn tax-deferred dollars for your retirement. o TOLL-FREE ACCESS. Current shareholders can call our AIM Investor Line at 800-246-5463 for 24-hour-a-day account information. Or, of course, you may contact your financial consultant for assistance. o www.aimfunds.com. As a current shareholder, you can check account balances 24 hours a day over the Internet. State-of-the-art encryption lets you send us questions that include confidential information without the fear of eavesdropping, tampering, or forgery. ------------------------------------- CURRENT SHAREHOLDERS CAN CALL OUR AIM INVESTOR LINE AT 800-246-5463 FOR 24-HOUR-A-DAY ACCOUNT INFORMATION. ------------------------------------- 20 THE AIM FAMILY OF FUNDS--Registered Trademark-- GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has AIM Aggressive Growth Fund(1) AIM Money Market Fund provided leadership in the AIM Blue Chip Fund AIM Tax-Exempt Cash Fund mutual-fund industry since 1976 AIM Capital Development Fund and managed approximately $112 AIM Constellation Fund INTERNATIONAL GROWTH FUNDS billion in assets for more than AIM Dent Demographic Trends Fund AIM Advisor International Value Fund 6.3 million shareholders, AIM Large Cap Growth Fund AIM Asian Growth Fund including individual investors, AIM Mid Cap Equity Fund(2), (A) AIM Developing Markets Fund(2) corporate clients and financial AIM Select Growth Fund(3) AIM Europe Growth Fund(2) institutions as of March 31, AIM Small Cap Growth Fund(2), (B) AIM European Development Fund 1999. AIM Small Cap Opportunities Fund AIM International Equity Fund The AIM Family of AIM Value Fund AIM Japan Growth Fund(2) Funds--Registered Trademark-- AIM Weingarten Fund AIM Latin American Growth Fund(2) is distributed nationwide, and AIM New Pacific Growth Fund(2) AIM today is the 10th-largest GROWTH & INCOME FUNDS mutual-fund complex in the AIM Advisor Flex Fund GLOBAL GROWTH FUNDS United States in assets under AIM Advisor Large Cap Value Fund AIM Global Aggressive Growth Fund management, according to AIM Advisor Real Estate Fund AIM Global Growth Fund Strategic Insight, an AIM Balanced Fund independent mutual-fund AIM Basic Value Fund(2), (C) GLOBAL GROWTH & INCOME FUNDS monitor. AIM Charter Fund AIM Global Growth & Income Fund(2) AIM Global Utilities Fund INCOME FUNDS AIM Floating Rate Fund(2) GLOBAL INCOME FUNDS AIM High Yield Fund AIM Emerging Markets Debt Fund(2), (D) AIM High Yield Fund II AIM Global Government Income Fund(2) AIM Income Fund AIM Global Income Fund AIM Intermediate Government Fund AIM Strategic Income Fund(2) AIM Limited Maturity Treasury Fund THEME FUNDS TAX-FREE INCOME FUNDS AIM Global Consumer Products and Services Fund(2) AIM High Income Municipal Fund AIM Global Financial Services Fund(2) AIM Municipal Bond Fund AIM Global Health Care Fund(2) AIM Tax-Exempt Bond Fund of Connecticut AIM Global Infrastructure Fund(2) AIM Tax-Free Intermediate Fund AIM Global Resources Fund(2) AIM Global Telecommunications and Technology Fund(2), (E) AIM Global Trends Fund(2), (F)
(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 APPEARS HERE] INVEST WITH DISCIPLINE--Registered Trademark-- -----END PRIVACY-ENHANCED MESSAGE-----