-----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, JRZqkdVxZWzsd2+MI+Fmn6AsExvVhW7rcFo57UKi5WRKO9WjUO2tICGEb7erZD6V yApXGbm0TTIuU9R8Bhb5Ig== 0000950129-04-009387.txt : 20041129 0000950129-04-009387.hdr.sgml : 20041129 20041129131739 ACCESSION NUMBER: 0000950129-04-009387 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041129 DATE AS OF CHANGE: 20041129 EFFECTIVENESS DATE: 20041129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIM FUNDS GROUP/DE CENTRAL INDEX KEY: 0000019034 IRS NUMBER: 060841973 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-01540 FILM NUMBER: 041170630 BUSINESS ADDRESS: STREET 1: 11 GREENWAY PLZ STE 100 CITY: HOUSTON STATE: TX ZIP: 77046 BUSINESS PHONE: 7136261919 MAIL ADDRESS: STREET 1: AIM FUNDS GROUP STREET 2: 11 GREENWAY PLZ STE 100 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: AIM FUNDS GROUP DATE OF NAME CHANGE: 19921016 FORMER COMPANY: FORMER CONFORMED NAME: CIGNA GROWTH FUND INC DATE OF NAME CHANGE: 19860227 FORMER COMPANY: FORMER CONFORMED NAME: CG FUND INC DATE OF NAME CHANGE: 19830516 N-Q 1 h19670nvq.txt AIM FUNDS GROUP - SEPTEMBER 30, 2004 --------------------------- OMB APPROVAL --------------------------- OMB Number: 3235-0578 Expires: Feb. 28, 2006 Estimated average burden hours per response: 20.00 --------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q CERTIFIED SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-1540 AIM Funds Group (Exact name of registrant as specified in charter) 11 Greenway Plaza, Suite 100 Houston, Texas 77046 (Address of principal executive offices) (Zip code) Robert H. Graham 11 Greenway Plaza, Suite 100 Houston, Texas 77046 (Name and address of agent for service) Registrant's telephone number, including area code: (713) 626-1919 Date of fiscal year end: 12/31 Date of reporting period: 9/30/04 Item 1. Schedule of Investments. AIM BALANCED FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com BAL-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------- STOCKS & OTHER EQUITY INTERESTS--52.61% ADVERTISING--2.24% Interpublic Group of Cos., Inc. (The)(a)(b) 1,650,000 $ 17,473,500 - -------------------------------------------------------------------------------------------------- Omnicom Group Inc.(b) 480,000 35,068,800 - -------------------------------------------------------------------------------------------------- 52,542,300 ================================================================================================== AEROSPACE & DEFENSE--1.00% Honeywell International Inc. 655,000 23,488,300 ================================================================================================== ALUMINUM--0.92% Alcoa Inc. 646,000 21,699,140 ================================================================================================== APPAREL RETAIL--0.88% Gap, Inc. (The)(b) 1,108,000 20,719,600 ================================================================================================== ASSET MANAGEMENT & CUSTODY BANKS--1.10% Bank of New York Co., Inc. (The) 885,000 25,815,450 ================================================================================================== BUILDING PRODUCTS--1.97% American Standard Cos. Inc.(a) 448,900 17,466,699 - -------------------------------------------------------------------------------------------------- Masco Corp.(b) 832,900 28,760,037 - -------------------------------------------------------------------------------------------------- 46,226,736 ================================================================================================== COMMUNICATIONS EQUIPMENT--0.58% Motorola, Inc.(b) 750,000 13,530,000 ================================================================================================== CONSUMER ELECTRONICS--1.69% Koninklijke (Royal) Philips Electronics N.V.-New York Shares (Netherlands) 746,000 17,090,860 - -------------------------------------------------------------------------------------------------- Sony Corp.-ADR (Japan) 656,000 22,559,840 - -------------------------------------------------------------------------------------------------- 39,650,700 ================================================================================================== DATA PROCESSING & OUTSOURCED SERVICES--2.67% Ceridian Corp.(a) 1,088,000 20,030,080 - -------------------------------------------------------------------------------------------------- First Data Corp.(b) 979,000 42,586,500 - -------------------------------------------------------------------------------------------------- 62,616,580 ================================================================================================== DEPARTMENT STORES--0.70% May Department Stores Co. (The)(b) 645,000 16,531,350 ================================================================================================== DIVERSIFIED CHEMICALS--0.39% Dow Chemical Co. (The) 201,000 9,081,180 ================================================================================================== DIVERSIFIED COMMERCIAL SERVICES--1.45% Cendant Corp. 1,578,000 34,084,800 ================================================================================================== ENVIRONMENTAL SERVICES--1.58% Waste Management, Inc. 1,360,000 37,182,400 ================================================================================================== FOOD RETAIL--1.71% Kroger Co. (The)(a) 1,509,000 23,419,680 - -------------------------------------------------------------------------------------------------- Safeway Inc.(a)(b) 868,000 16,761,080 - -------------------------------------------------------------------------------------------------- 40,180,760 ==================================================================================================
F-1 BAL-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------- GENERAL MERCHANDISE STORES--1.27% Target Corp.(b) 661,300 $ 29,923,825 - -------------------------------------------------------------------------------------------------- HEALTH CARE DISTRIBUTORS--2.34% Cardinal Health, Inc.(b) 759,200 33,230,184 - -------------------------------------------------------------------------------------------------- McKesson Corp. 850,000 21,802,500 - -------------------------------------------------------------------------------------------------- 55,032,684 ================================================================================================== HEALTH CARE EQUIPMENT--0.79% Baxter International Inc. 579,000 18,620,640 ================================================================================================== HEALTH CARE FACILITIES--0.98% HCA Inc.(b) 605,000 23,080,750 ================================================================================================== HEALTH CARE SERVICES--0.30% IMS Health Inc. 289,600 6,927,232 ================================================================================================== INDUSTRIAL CONGLOMERATES--3.13% General Electric Co.(b) 817,000 27,434,860 - -------------------------------------------------------------------------------------------------- Tyco International Ltd. (Bermuda)(b) 1,504,000 46,112,640 - -------------------------------------------------------------------------------------------------- 73,547,500 ================================================================================================== INDUSTRIAL MACHINERY--1.32% Illinois Tool Works Inc.(b) 333,000 31,025,610 ================================================================================================== INSURANCE BROKERS--0.67% Aon Corp.(b) 550,000 15,807,000 ================================================================================================== INTEGRATED OIL & GAS--0.09% Shell Frontier Oil & Gas Inc.-Series B, 2.38% Floating Rate Pfd.(c) 20 2,000,000 ================================================================================================== INVESTMENT BANKING & BROKERAGE--2.08% Merrill Lynch & Co., Inc.(b) 433,500 21,553,620 - -------------------------------------------------------------------------------------------------- Morgan Stanley 556,000 27,410,800 - -------------------------------------------------------------------------------------------------- 48,964,420 ================================================================================================== MANAGED HEALTH CARE--1.29% Anthem, Inc.(a)(b) 346,000 30,188,500 ================================================================================================== MOVIES & ENTERTAINMENT--1.28% Walt Disney Co. (The) 1,337,000 30,149,350 ================================================================================================== MULTI-LINE INSURANCE--0.82% Hartford Financial Services Group, Inc. (The)(b) 309,700 19,179,721 ================================================================================================== OIL & GAS DRILLING--1.42% Transocean Inc. (Cayman Islands)(a)(b) 935,000 33,454,300 ================================================================================================== OIL & GAS EQUIPMENT & SERVICES--2.56% Halliburton Co.(b) 1,040,000 35,037,600 - -------------------------------------------------------------------------------------------------- Schlumberger Ltd. (Netherlands) 373,000 25,106,630 - -------------------------------------------------------------------------------------------------- 60,144,230 ================================================================================================== OTHER DIVERSIFIED FINANCIAL SERVICES--3.74% ABN AMRO XVIII Custodial Receipts-Series MM18, 2.79% Floating Rate Pfd. (Acquired 09/10/04-09/13/04; Cost $1,399,980)(d)(e)(p) 14 1,400,000 - -------------------------------------------------------------------------------------------------- Citigroup Inc. 836,933 36,925,484 - -------------------------------------------------------------------------------------------------- JPMorgan Chase & Co. 1,147,200 45,578,256 - --------------------------------------------------------------------------------------------------
F-2 BAL-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------- OTHER DIVERSIFIED FINANCIAL SERVICES (CONTINUED) Zurich RegCaPS Funding Trust III, 2.17% Floating Rate Pfd. (Acquired 06/03/04-09/28/04; Cost $3,952,517)(c)(d)(e) 4,050 $ 3,997,350 - -------------------------------------------------------------------------------------------------- 87,901,090 ================================================================================================== PACKAGED FOODS & MEATS--0.84% Kraft Foods Inc.-Class A(b) 623,000 19,761,560 ================================================================================================== PHARMACEUTICALS--3.96% Pfizer Inc. 913,000 27,937,800 - -------------------------------------------------------------------------------------------------- Sanofi-Aventis (France)(f) 577,640 42,077,299 - -------------------------------------------------------------------------------------------------- Wyeth(b) 617,600 23,098,240 - -------------------------------------------------------------------------------------------------- 93,113,339 ================================================================================================== PROPERTY & CASUALTY INSURANCE--1.30% ACE Ltd. (Cayman Islands) 761,000 30,485,660 ================================================================================================== SYSTEMS SOFTWARE--1.67% Computer Associates International, Inc.(b) 1,491,000 39,213,300 ================================================================================================== THRIFTS & MORTGAGE FINANCE--1.88% Fannie Mae(b) 609,300 38,629,620 - -------------------------------------------------------------------------------------------------- Fannie Mae-Series J, 3.78% Pfd(g) 52,000 2,621,127 - -------------------------------------------------------------------------------------------------- Fannie Mae-Series K, 3.00% Pfd.(g) 55,000 2,811,875 - -------------------------------------------------------------------------------------------------- 44,062,622 ================================================================================================== Total Stocks & Other Equity Interests (Cost $1,178,205,517) 1,235,932,629 ================================================================================================== PRINCIPAL AMOUNT - -------------------------------------------------------------------------------------------------- BONDS & NOTES--13.19% ADVERTISING--0.10% Interpublic Group of Cos., Inc. (The), Sr. Unsec. Notes, 7.88%, 10/15/05(g) $ 2,275,000 2,381,720 ================================================================================================== AEROSPACE & DEFENSE--0.13% Lockheed Martin Corp.-Series A, Medium Term Notes, 8.66%, 11/30/06(g) 300,000 331,146 - -------------------------------------------------------------------------------------------------- Northrop Grumman Corp., Unsec. Deb., 9.38%, 10/15/24(g) 2,505,000 2,626,667 - -------------------------------------------------------------------------------------------------- 2,957,813 ================================================================================================== AUTOMOBILE MANUFACTURERS--0.06% DaimlerChrysler N.A. Holding Corp., Gtd. Unsec. Global Notes, 7.40%, 01/20/05(g) 990,000 1,004,830 - -------------------------------------------------------------------------------------------------- Series D, Gtd. Medium Term Notes, 3.40%, 12/15/04(g) 460,000 461,164 - -------------------------------------------------------------------------------------------------- 1,465,994 ================================================================================================== BROADCASTING & CABLE TV--0.84% Continental Cablevision, Inc., Sr. Unsec. Deb., 8.88%, 09/15/05(g) 5,200,000 5,492,292 - -------------------------------------------------------------------------------------------------- 9.50%, 08/01/13(g) 1,710,000 1,883,411 - -------------------------------------------------------------------------------------------------- Cox Communications, Inc., Unsec. Notes, 6.88%, 06/15/05(g) 600,000 615,186 - -------------------------------------------------------------------------------------------------- Cox Radio, Inc., Sr. Unsec. Notes, 6.63%, 02/15/06(g) 750,000 784,132 - -------------------------------------------------------------------------------------------------- Lenfest Communications, Inc., Sr. Unsec. Notes, 8.38%, 11/01/05(g) 1,000,000 1,063,000 - -------------------------------------------------------------------------------------------------- Rogers Cable Inc. (Canada)-Series B, Sr. Sec. Second Priority Yankee Notes, 10.00%, 03/15/05(g) 1,575,000 1,634,062 - -------------------------------------------------------------------------------------------------- TCI Communications, Inc., Sr. Notes, 7.25%, 08/01/05(g) 1,175,000 1,219,321 - -------------------------------------------------------------------------------------------------- Sr. Unsec. Notes, 8.00%, 08/01/05(g) 575,000 600,168 - --------------------------------------------------------------------------------------------------
F-3 BAL-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - -------------------------------------------------------------------------------------------------- BROADCASTING & CABLE TV (CONTINUED) Time Warner Cos., Inc., Sr. Unsec. Gtd. Deb., 7.57%, 02/01/24(g) $ 1,200,000 $ 1,356,041 - -------------------------------------------------------------------------------------------------- Unsec. Deb., 9.15%, 02/01/23(g) 2,150,000 2,763,201 - -------------------------------------------------------------------------------------------------- Unsec. Notes, 7.75%, 06/15/05(g) 2,307,000 2,386,868 - -------------------------------------------------------------------------------------------------- 19,797,682 ================================================================================================== CONSUMER FINANCE--2.00% Associates Corp. of North America, Sr. Global Deb., 6.95%, 11/01/18(g) 1,525,000 1,782,435 - -------------------------------------------------------------------------------------------------- Capital One Bank, Sr. Global Notes, 8.25%, 06/15/05(g) 3,885,000 4,029,522 - -------------------------------------------------------------------------------------------------- Capital One Capital I, Sub. Floating Rate Bonds, 3.24%, 02/01/27 (Acquired 09/16/04; Cost $4,383,420) (c)(d)(e)(g) 4,300,000 4,365,387 - -------------------------------------------------------------------------------------------------- Capital One Financial Corp., Sr. Unsec. Notes, 7.25%, 05/01/06(g) 1,820,000 1,926,233 - -------------------------------------------------------------------------------------------------- Unsec. Notes, 7.13%, 08/01/08 1,000,000 1,095,870 - -------------------------------------------------------------------------------------------------- Ford Motor Credit Co., Floating Rate Global Notes, 3.54%, 10/25/04(c)(g) 2,000,000 2,000,800 - -------------------------------------------------------------------------------------------------- Notes, 6.75%, 05/15/05(g) 325,000 333,125 - -------------------------------------------------------------------------------------------------- Unsec. Floating Rate Global Notes, 1.85%, 04/28/05(c)(g) 3,261,000 3,260,418 - -------------------------------------------------------------------------------------------------- Unsec. Global Notes, 6.50%, 01/25/07(g) 750,000 795,210 - -------------------------------------------------------------------------------------------------- 6.88%, 02/01/06(g) 6,690,000 7,005,634 - -------------------------------------------------------------------------------------------------- 7.50%, 03/15/05(g) 3,615,000 3,695,108 - -------------------------------------------------------------------------------------------------- Unsec. Notes, 7.75%, 03/15/05(g) 2,660,000 2,721,153 - -------------------------------------------------------------------------------------------------- General Motors Acceptance Corp., Floating Rate Medium Term Notes, 3.82%, 03/04/05(c)(g) 7,100,000(h) 7,143,949 - -------------------------------------------------------------------------------------------------- Global Notes, 4.50%, 07/15/06(g) 2,000,000 2,033,540 - -------------------------------------------------------------------------------------------------- 7.50%, 07/15/05(g) 400,000 414,432 - -------------------------------------------------------------------------------------------------- Medium Term Notes, 5.25%, 05/16/05(g) 700,000 711,277 - -------------------------------------------------------------------------------------------------- Unsec. Unsub. Global Notes, 6.75%, 01/15/06(g) 3,500,000(h) 3,654,315 - -------------------------------------------------------------------------------------------------- 46,968,408 ================================================================================================== DIVERSIFIED BANKS--1.71% AB Spintab (Sweden), Bonds, 7.50% (Acquired 02/12/04; Cost $3,682,866)(d)(g)(i) 3,300,000 3,546,840 - -------------------------------------------------------------------------------------------------- American Savings Bank, Notes, 6.63%, 02/15/06 (Acquired 03/05/03; Cost $554,525)(d)(e)(g) 500,000 519,970 - -------------------------------------------------------------------------------------------------- Banco Nacional de Comercio Exterior S.N.C. (Mexico), Notes, 3.88%, 01/21/09 (Acquired 02/25/04; Cost $983,750)(d)(e)(g) 1,000,000 970,094 - -------------------------------------------------------------------------------------------------- BankBoston Capital Trust IV, Gtd. Floating Rate Notes, 2.45%, 06/08/28(c)(g) 3,215,000 3,139,898 - -------------------------------------------------------------------------------------------------- Barclays Bank PLC (United Kingdom), Bonds, 8.55% (Acquired 11/05/03; Cost $652,239) (d)(g)(i) 530,000 645,317 - -------------------------------------------------------------------------------------------------- Centura Capital Trust I, Gtd. Notes, 8.85%, 06/01/27 (Acquired 05/22/03; Cost $1,771,602) (d)(e)(g) 1,400,000 1,643,684 - -------------------------------------------------------------------------------------------------- Chohung Bank (South Korea), Unsec. Sub. Second Tier Notes, 11.50%, 04/01/10 (Acquired 07/01/04; Cost $3,407,008)(d)(e)(g) 3,200,000 3,364,416 - -------------------------------------------------------------------------------------------------- Corporacion Andina de Fomento (Venezuela), Unsec. Yankee Notes, 8.88%, 06/01/05(g) 2,785,000 2,890,106 - -------------------------------------------------------------------------------------------------- Daiwa P.B. Ltd. (Cayman Islands)-Series E, Gtd. Medium Term Sub. Euro Notes, 2.15% (i)(j) 1,200,000 1,188,000 - -------------------------------------------------------------------------------------------------- Danske Bank A/S (Denmark), First Tier Bonds, 5.91% (Acquired 06/07/04; Cost $1,245,000) (d)(g)(i) 1,245,000 1,312,105 - -------------------------------------------------------------------------------------------------- HSBC Capital Funding L.P. (United Kingdom), Gtd. Bonds, 4.61% (Acquired 11/05/03; Cost $373,008)(d)(g)(i) 400,000 379,760 - -------------------------------------------------------------------------------------------------- Lloyds Bank PLC (United Kingdom)-Series 1, Unsec. Sub. Floating Rate Euro Notes, 2.19%(g)(i)(j) 3,870,000 3,404,342 - -------------------------------------------------------------------------------------------------- National Bank of Canada (Canada), Floating Rate Euro Deb., 2.13%, 08/29/87(g)(j) 1,500,000 1,302,279 - --------------------------------------------------------------------------------------------------
F-4 BAL-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - -------------------------------------------------------------------------------------------------- DIVERSIFIED BANKS (CONTINUED) National Westminster Bank PLC (United Kingdom)-Series B, Unsec. Sub. Floating Rate Euro Notes, 2.13%(g)(i)(j) $ 1,000,000 $ 869,230 - -------------------------------------------------------------------------------------------------- NBD Bank N.A. Michigan, Unsec. Putable Sub. Deb., 8.25%, 11/01/04(g) 1,715,000 2,231,284 - -------------------------------------------------------------------------------------------------- RBS Capital Trust I, Bonds, 4.71%(g)(i) 400,000 387,736 - -------------------------------------------------------------------------------------------------- Wells Fargo & Co., Sr. Unsec. Global Notes, 3.75%, 10/15/07(g) 6,750,000 6,778,350 - -------------------------------------------------------------------------------------------------- Wells Fargo Bank, N.A., Unsec. Sub. Global Notes, 7.80%, 06/15/10(g) 2,100,000 2,198,490 - -------------------------------------------------------------------------------------------------- Woori Bank (South Korea), Unsec. Sub. Second Tier Notes, 11.75%, 03/01/10 (Acquired 07/01/04; Cost $3,388,480)(d)(e)(g) 3,200,000 3,345,312 - -------------------------------------------------------------------------------------------------- 40,117,213 ================================================================================================== DIVERSIFIED CAPITAL MARKETS--0.12% UBS Preferred Funding Trust I, Gtd. Global Bonds, 8.62%(g)(i) 2,385,000 2,896,487 ================================================================================================== ELECTRIC UTILITIES--0.33% AmerenEnergy Generating Co.-Series C, Sr. Unsec. Global Notes, 7.75%, 11/01/05(g) 350,000 369,215 - -------------------------------------------------------------------------------------------------- Consolidated Edison Co. of New York, Unsec. Deb., 7.75%, 06/01/26(g)(k) 900,000 972,901 - -------------------------------------------------------------------------------------------------- Hydro-Quebec-Series B (Canada), Gtd. Medium Term Notes, 8.62%, 12/15/11(g) 2,150,000 2,690,274 - -------------------------------------------------------------------------------------------------- Pacific Gas & Electric Co., Floating Rate Notes, 2.30%, 04/03/06(c) 687,000 687,682 - -------------------------------------------------------------------------------------------------- Western Power Distribution Holdings Ltd. (United Kingdom) Unsec. Unsub. Notes, 6.75%, 12/15/04 (Acquired 01/08/04; Cost $815,419) (d)(e)(g) 785,000 789,388 - -------------------------------------------------------------------------------------------------- Yorkshire Power Finance (Cayman Islands)-Series B, Sr. Unsec. Gtd. Unsub. Global Notes, 6.50%, 02/25/08(g) 2,075,000 2,170,288 - -------------------------------------------------------------------------------------------------- 7,679,748 ================================================================================================== ENVIRONMENTAL SERVICES--0.10% Waste Management, Inc., Sr. Unsec. Notes, 7.00%, 10/01/04(g) 2,400,000 2,400,672 ================================================================================================== FOOD RETAIL--0.07% Safeway Inc., Sr. Unsec. Notes, 2.50%, 11/01/05(g) 1,750,000 1,745,888 ================================================================================================== GAS UTILITIES--0.37% CenterPoint Energy Resources Corp., Unsec. Deb., 6.50%, 02/01/08(g) 1,990,000 2,139,051 - -------------------------------------------------------------------------------------------------- Columbia Energy Group-Series C, Notes, 6.80%, 11/28/05(g) 4,500,000 4,700,160 - -------------------------------------------------------------------------------------------------- NiSource Capital Markets, Inc., Medium Term Notes, 7.68%, 04/15/05(g) 1,720,000 1,764,135 - -------------------------------------------------------------------------------------------------- 8,603,346 ================================================================================================== HEALTH CARE FACILITIES--0.23% HCA Inc., Notes, 7.00%, 07/01/07(g) 600,000 645,306 - -------------------------------------------------------------------------------------------------- Sr. Sub. Notes, 6.91%, 06/15/05(g) 4,760,000 4,874,668 - -------------------------------------------------------------------------------------------------- 5,519,974 ================================================================================================== HOMEBUILDING--0.36% D.R. Horton, Inc., Sr. Unsec. Notes, 7.88%, 08/15/11(g) 1,760,000 2,028,400 - -------------------------------------------------------------------------------------------------- Lennar Corp.-Series B, Sr. Unsec. Gtd. Global Notes, 9.95%, 05/01/10(g) 3,855,000 4,210,855 - -------------------------------------------------------------------------------------------------- Pulte Homes, Inc., Unsec. Gtd. Notes, 7.30%, 10/24/05(g) 1,500,000 1,566,465 - -------------------------------------------------------------------------------------------------- Ryland Group, Inc. (The), Sr. Unsec. Unsub. Notes, 9.75%, 09/01/10(g) 500,000 551,850 - -------------------------------------------------------------------------------------------------- 8,357,570 ==================================================================================================
F-5 BAL-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - -------------------------------------------------------------------------------------------------- HYPERMARKETS & SUPER CENTERS--0.13% Wal-Mart Stores, Inc., Unsec. Deb., 8.50%, 09/15/24(g) $ 2,895,000 $ 3,025,014 ================================================================================================== INDUSTRIAL CONGLOMERATES--0.19% Tyco International Group S.A. (Luxembourg), Unsec. Unsub. Gtd. Yankee Notes, 6.38%, 06/15/05(g) 3,530,000 3,616,591 - -------------------------------------------------------------------------------------------------- URC Holdings Corp., Sr. Notes, 7.88%, 06/30/06 (Acquired 10/08/03; Cost $849,203)(d)(e)(g) 750,000 810,728 - -------------------------------------------------------------------------------------------------- 4,427,319 ================================================================================================== INTEGRATED OIL & GAS--0.30% Amerada Hess Corp., Unsec. Notes, 7.13%, 03/15/33(g) 1,800,000 1,929,276 - -------------------------------------------------------------------------------------------------- ConocoPhillips, Unsec. Deb., 7.13%, 03/15/28(g) 1,000,000 1,083,900 - -------------------------------------------------------------------------------------------------- Husky Oil Ltd. (Canada), Yankee Bonds, 8.90%, 08/15/28(g) 2,009,000 2,324,373 - -------------------------------------------------------------------------------------------------- Repsol International Finance B.V.(Netherlands), Unsec. Gtd. Global Notes, 7.45%, 07/15/05(g) 1,590,000 1,649,021 - -------------------------------------------------------------------------------------------------- 6,986,570 ================================================================================================== INTEGRATED TELECOMMUNICATION SERVICES--0.97% France Telecom S.A. (France), Sr. Unsec. Global Notes, 8.50%, 03/01/31(g) 930,000 1,230,576 - -------------------------------------------------------------------------------------------------- Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 01/30/06(g) 2,285,000 2,401,421 - -------------------------------------------------------------------------------------------------- Unsec. Gtd. Global Notes, 7.90%, 03/15/05(g) 4,665,000 4,782,698 - -------------------------------------------------------------------------------------------------- Sprint Corp., Deb. 9.25%, 04/15/22(g) 1,000,000 1,289,000 - -------------------------------------------------------------------------------------------------- TELUS Corp. (Canada), Yankee Notes, 7.50%, 06/01/07(g) 1,850,000 2,021,625 - -------------------------------------------------------------------------------------------------- 8.00%, 06/01/11(g) 1,000,000 1,168,505 - -------------------------------------------------------------------------------------------------- Verizon California, Inc.-Series F, Unsec. Deb., 6.75%, 05/15/27(g) 1,000,000 1,058,060 - -------------------------------------------------------------------------------------------------- Verizon Communications Inc., Unsec. Deb., 6.36%, 04/15/06(g) 2,570,000 2,700,248 - -------------------------------------------------------------------------------------------------- 6.94%, 04/15/28(g) 900,000 969,516 - -------------------------------------------------------------------------------------------------- 8.75%, 11/01/21(g) 1,350,000 1,697,963 - -------------------------------------------------------------------------------------------------- Verizon New York Inc.-Series A, Sr. Unsec. Global Deb., 6.88%, 04/01/12(g) 2,400,000 2,667,744 - -------------------------------------------------------------------------------------------------- Verizon Virginia, Inc.-Series A, Unsec. Global 950,000 929,860 Deb., 4.63%, 03/15/13(g) - -------------------------------------------------------------------------------------------------- 22,917,216 ================================================================================================== INVESTMENT BANKING & BROKERAGE--0.22% Lehman Brothers Inc., Sr. Sub. Deb., 11.63%, 05/15/05(g) 2,645,000 2,778,678 - -------------------------------------------------------------------------------------------------- Sr. Unsec. Sub. Notes, 7.63%, 06/01/06(g) 1,000,000 1,075,360 - -------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc.-Series B, Medium Term Notes, 4.54%, 03/08/05(g) 1,415,000 1,430,324 - -------------------------------------------------------------------------------------------------- 5,284,362 ================================================================================================== LIFE & HEALTH INSURANCE--0.23% Prudential Holdings, LLC-Series B, Bonds, 7.25%, 12/18/23 (Acquired 01/22/04-01/29/04; Cost $4,717,650) (d)(g)(k) 4,000,000 4,722,520 - -------------------------------------------------------------------------------------------------- ReliaStar Financial Corp., Unsec. Notes, 8.00%, 10/30/06(g) 600,000 658,074 - -------------------------------------------------------------------------------------------------- 5,380,594 ================================================================================================== MOVIES & ENTERTAINMENT--0.07% Time Warner Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/05(g) 1,680,000 1,710,400 ==================================================================================================
F-6 BAL-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - -------------------------------------------------------------------------------------------------- MULTI-UTILITIES & UNREGULATED POWER--0.07% Dominion Resources Inc.-Series B, Sr. Unsec. Unsub. Global Notes, 7.63%, 07/15/05(g) $ 1,710,000 $ 1,777,987 ================================================================================================== MUNICIPALITIES--0.36% Industry (City of), California Urban Development Agency (Project 3); Taxable Allocation Series 2003 B, 6.10%, 05/01/24(g)(k) 1,910,000 1,964,913 - -------------------------------------------------------------------------------------------------- Phoenix (City of), Arizona Civic Improvement Corp.; Taxable Rental Car Facility Series 2004 RB, 3.69%, 07/01/07(g)(k) 1,000,000 1,008,750 - -------------------------------------------------------------------------------------------------- 4.21%, 07/01/08(g)(k) 1,185,000 1,204,256 - -------------------------------------------------------------------------------------------------- Sacramento (County of), California; Taxable Pension Funding Series 2004 C-1 RB, 0.27%, 07/10/30(g)(k)(l) 4,425,000 4,181,625 - -------------------------------------------------------------------------------------------------- 8,359,544 ================================================================================================== OIL & GAS DRILLING--0.09% Transocean Inc. (Cayman Islands), Unsec. Global Notes, 6.75%, 04/15/05(g) 2,000,000 2,056,100 ================================================================================================== OIL & GAS EXPLORATION & PRODUCTION--0.16% Pemex Project Funding Master Trust, Unsec. Gtd. Unsub. Global Notes, 7.38%, 12/15/14(g) 3,535,000 3,857,039 ================================================================================================== OTHER DIVERSIFIED FINANCIAL SERVICES--1.03% CIT Group Inc., Sr. Unsec. Unsub. Global Notes, 7.63%, 08/16/05(g) 675,000 704,376 - -------------------------------------------------------------------------------------------------- General Electric Capital Corp.-Series A, Medium Term Global Notes, 2.85%, 01/30/06(g) 400,000 400,944 - -------------------------------------------------------------------------------------------------- Heller Financial, Inc., Sr. Unsec. Global Notes, 8.00%, 06/15/05(g) 2,425,000 2,519,648 - -------------------------------------------------------------------------------------------------- ING Capital Funding Trust III, Gtd. Global Bonds, 8.44%(g)(i) 900,000 1,074,492 - -------------------------------------------------------------------------------------------------- Mizuho JGB Investment LLC-Series A, Bonds, 9.87% (Acquired 06/16/04; Cost $1,357,500)(d)(g)(i) 1,200,000 1,403,340 - -------------------------------------------------------------------------------------------------- Pemex Finance Ltd. (Cayman Islands), Series 1999-2, Class A1, Global Bonds, 9.69%, 08/15/09(g) 2,900,000 3,319,050 - -------------------------------------------------------------------------------------------------- Sr. Unsec. Global Notes, 8.02%, 05/15/07(g) 2,016,667 2,159,144 - -------------------------------------------------------------------------------------------------- PLC Trust 2003-1, Sec. Notes, 2.71%, 03/31/06 (Acquired 03/23/04; Cost $1,296,506)(d)(e)(g) 1,279,034 1,278,744 - -------------------------------------------------------------------------------------------------- Premium Asset 2004-04 Trust, Sr. Notes, 4.13%, 03/12/09 (Acquired 03/04/04; Cost $3,572,605) (d)(e)(g) 3,575,000 3,530,578 - -------------------------------------------------------------------------------------------------- Regional Diversified Funding (Cayman Islands), Sr. Notes, 9.25%, 03/15/30 (Acquired 09/22/04; Cost $3,221,976)(d)(e)(g) 2,723,333 3,206,970 - -------------------------------------------------------------------------------------------------- UFJ Finance Aruba AEC (Aruba), Gtd. Sub. Tier II Bonds, 8.75%(g)(i) 945,000 1,044,385 - -------------------------------------------------------------------------------------------------- XTRA, Inc.-Series C, Gtd. Medium Term Notes, 7.70%, 11/02/04(g) 3,475,000 3,486,641 - -------------------------------------------------------------------------------------------------- 24,128,312 ================================================================================================== PACKAGED FOODS & MEATS--0.03% Nabisco Inc., Notes, 6.38%, 02/01/05(g) 750,000 762,735 ================================================================================================== PROPERTY & CASUALTY INSURANCE--0.28% First American Capital Trust I, Gtd. Notes, 8.50%, 04/15/12(g) 4,295,000 4,938,778 - -------------------------------------------------------------------------------------------------- Oil Insurance Ltd. (Bermuda), Unsec. Sub. Deb., 5.15%, 08/15/33 (Acquired 03/23/04; Cost $908,164)(d)(e)(g) 865,000 881,227 - -------------------------------------------------------------------------------------------------- Travelers Property Casualty Corp., Sr. Unsec. Notes, 6.75%, 11/15/06(g) 700,000 747,971 - -------------------------------------------------------------------------------------------------- 6,567,976 ==================================================================================================
F-7 BAL-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - -------------------------------------------------------------------------------------------------- REAL ESTATE--0.25% CarrAmerica Realty Corp., Sr. Unsec. Gtd. Notes, 6.63%, 03/01/05(g) $ 420,000 $ 426,250 - -------------------------------------------------------------------------------------------------- Developers Diversified Realty Corp., Sr. Medium Term Notes, 6.84%, 12/16/04(g) 500,000 504,065 - -------------------------------------------------------------------------------------------------- EOP Operating L.P., Sr. Unsec. Notes, 6.63%, 02/15/05(g) 1,400,000 1,419,586 - -------------------------------------------------------------------------------------------------- Health Care Properties, Sr. Unsec. Notes, 6.88%, 06/08/05(g) 1,325,000 1,361,445 - -------------------------------------------------------------------------------------------------- HRPT Properties Trust, Sr. Unsec. Notes, 6.70%, 02/23/05(g) 1,435,000 1,458,261 - -------------------------------------------------------------------------------------------------- Spieker Properties, Inc., Medium Term Notes, 8.00%, 07/19/05(g) 600,000 623,190 - -------------------------------------------------------------------------------------------------- 5,792,797 ================================================================================================== REAL ESTATE MANAGEMENT & DEVELOPMENT--0.09% Southern Investments UK PLC (United Kingdom), Sr. Unsec. Unsub. Yankee Notes, 6.80%, 12/01/06(g) 1,925,000 2,024,908 ================================================================================================== REGIONAL BANKS--0.85% Cullen/Frost Capital Trust I, Unsec. Sub. Floating Rate Notes, 3.34%, 03/01/34(c)(g) 3,400,000 3,532,554 - -------------------------------------------------------------------------------------------------- Greater Bay Bancorp-Series B, Sr. Notes, 5.25%, 03/31/08(g) 3,000,000 3,036,840 - -------------------------------------------------------------------------------------------------- PNC Capital Trust C, Gtd. Floating Rate Notes, 2.36%, 06/01/28(c)(g) 1,000,000 946,080 - -------------------------------------------------------------------------------------------------- Popular North America, Inc., Gtd. Notes, 4.70%, 3,125,000 3,208,844 06/30/09(g) - -------------------------------------------------------------------------------------------------- Santander Financial Issuances (Cayman Islands), Sec. Sub. Floating Rate Euro Notes, 2.25%(g)(i)(j) 8,000,000 7,915,296 - -------------------------------------------------------------------------------------------------- TCF Financial Corp., Sub. Notes, 5.00%, 06/15/14(g) 1,400,000 1,437,093 - -------------------------------------------------------------------------------------------------- 20,076,707 ================================================================================================== RESTAURANTS--0.04% McDonald's Corp., Unsec. Deb., 7.05%, 11/15/25(g) 850,000 912,348 ================================================================================================== SOVEREIGN DEBT--0.65% Japan Bank for International Cooperation (Japan), Unsec. Gtd. Euro Bonds, 6.50%, 10/06/05(g) 4,600,000 4,781,723 - -------------------------------------------------------------------------------------------------- New Brunswick (Province of) (Canada), Sec. Yankee Deb., 6.75%, 08/15/13(g) 830,000 976,910 - -------------------------------------------------------------------------------------------------- Quebec (Province of) (Canada), Sr. Unsec. Unsub. Global Deb., 5.75%, 02/15/09(g) 1,400,000 1,516,242 - -------------------------------------------------------------------------------------------------- Russian Federation (Russia), Unsec. Unsub. Bonds, 5.00%, 03/31/30 (Acquired 05/18/04; Cost $1,260,875)(d)(g) 1,400,000 1,354,220 - -------------------------------------------------------------------------------------------------- Unsec. Unsub. Bonds, 8.75%, 07/24/05 (Acquired 09/10/04; Cost $393,563)(d)(e)(g) 375,000 391,125 - -------------------------------------------------------------------------------------------------- Unsec. Unsub. Euro Bonds-REGS, 8.75%, 07/24/05 (Acquired 05/14/04; Cost $2,218,650)(d)(g) 2,100,000 2,192,209 - -------------------------------------------------------------------------------------------------- 10.00%, 06/26/07 (Acquired 05/14/04- 05/18/04; Cost $1,892,475) (d)(g) 1,680,000 1,900,693 - -------------------------------------------------------------------------------------------------- United Mexican States (Mexico), Global Notes, 6.63%, 03/03/15(g) 490,000 521,164 - -------------------------------------------------------------------------------------------------- Series A, Medium Term Global Notes, 7.50%, 04/08/33(g) 1,570,000 1,655,801 - -------------------------------------------------------------------------------------------------- 15,290,087 ================================================================================================== THRIFTS & MORTGAGE FINANCE--0.13% Greenpoint Capital Trust I, Gtd. Sub. Notes, 9.10%, 06/01/27(g) 950,000 1,118,331 - -------------------------------------------------------------------------------------------------- Washington Mutual Finance Corp., Sr. Unsec. Notes, 8.25%, 06/15/05(g) 1,775,000 1,846,408 - -------------------------------------------------------------------------------------------------- 2,964,739 ==================================================================================================
F-8 BAL-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - -------------------------------------------------------------------------------------------------- TOBACCO--0.08% Altria Group, Inc., Sr. Unsec. Notes, 7.00%, 11/04/13(g) $ 700,000 $ 732,319 - -------------------------------------------------------------------------------------------------- Unsec. Global Notes, 7.00%, 07/15/05(g) 850,000 874,063 - -------------------------------------------------------------------------------------------------- Unsec. Notes, 6.38%, 02/01/06(g) 350,000 361,277 - -------------------------------------------------------------------------------------------------- 1,967,659 ================================================================================================== TRUCKING--0.13% Roadway Corp., Sr. Unsec. Gtd. Global Notes, 8.25%, 12/01/08(g) 2,655,000 2,998,265 ================================================================================================== WIRELESS TELECOMMUNICATION SERVICES--0.32% TeleCorp PCS, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 10.63%, 07/15/10(g 4,355,000 4,844,894 - -------------------------------------------------------------------------------------------------- Tritel PCS Inc., Sr. Unsec. Gtd. Sub. Global Notes, 10.38%, 01/15/11(g) 2,300,000 2,625,082 - -------------------------------------------------------------------------------------------------- 7,469,976 ================================================================================================== Total Bonds & Notes (Cost $309,959,994) 309,968,967 ================================================================================================== U.S. MORTGAGE-BACKED SECURITIES--7.99% FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC)--1.45% Pass Through Ctfs., 5.50%, 05/01/13 to 12/01/33(g) 3,829,564 3,957,902 - -------------------------------------------------------------------------------------------------- 7.00%, 06/01/15 to 06/01/32(g) 4,926,380 5,229,780 - -------------------------------------------------------------------------------------------------- 6.50%, 05/01/16 to 03/01/33(g) 8,861,704 9,308,520 - -------------------------------------------------------------------------------------------------- 6.00%, 04/01/17 to 01/01/34(g) 10,209,604 10,656,557 - -------------------------------------------------------------------------------------------------- 8.00%, 01/01/27(g) 1,414,626 1,548,551 - -------------------------------------------------------------------------------------------------- 7.50%, 12/01/30 to 03/01/32(g) 938,564 1,007,664 - -------------------------------------------------------------------------------------------------- Pass Through Ctfs., TBA, 5.00%, 10/01/18(m) 2,420,000 2,462,129 - -------------------------------------------------------------------------------------------------- 34,171,103 ================================================================================================== FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)--5.63% Pass Through Ctfs., 8.50%, 03/01/10 to 10/01/28(g) 2,466,227 2,724,089 - -------------------------------------------------------------------------------------------------- 6.50%, 04/01/14 to 08/01/34(g) 16,375,298 17,235,291 - -------------------------------------------------------------------------------------------------- 7.50%, 11/01/15 to 05/01/32(g) 1,813,848 1,941,155 - -------------------------------------------------------------------------------------------------- 7.00%, 12/01/15 to 09/01/32(g) 6,090,181 6,465,440 - -------------------------------------------------------------------------------------------------- 6.00%, 01/01/17 to 03/01/22(g) 578,568 602,961 - -------------------------------------------------------------------------------------------------- 5.00%, 11/01/17 to 11/01/18(g) 3,116,546 3,174,335 - -------------------------------------------------------------------------------------------------- 8.00%, 08/01/21 to 10/01/30(g) 1,492,882 1,634,639 - -------------------------------------------------------------------------------------------------- 5.50%, 07/01/33 to 12/01/33(g) 42,221,776 42,886,566 - -------------------------------------------------------------------------------------------------- Pass Through Ctfs., TBA, 5.00%, 10/01/18 to 10/01/33(m) 25,346,640 25,602,390 - -------------------------------------------------------------------------------------------------- 5.50%, 10/01/18(m) 9,221,190 9,540,374 - -------------------------------------------------------------------------------------------------- 6.00%, 11/01/32(m) 19,643,600 20,356,618 - -------------------------------------------------------------------------------------------------- 132,163,858 ================================================================================================== GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)--0.91% Pass Through Ctfs., 6.50%, 10/15/08 to 02/15/33(g) 4,375,845 4,623,874 - -------------------------------------------------------------------------------------------------- 7.00%, 10/15/08 to 05/15/32(g) 2,807,714 2,995,787 - -------------------------------------------------------------------------------------------------- 6.00%, 11/15/08 to 10/15/33(g) 6,442,775 6,694,762 - -------------------------------------------------------------------------------------------------- 8.00%, 08/15/22 to 01/20/31(g) 940,797 1,034,076 - -------------------------------------------------------------------------------------------------- 7.50%, 06/15/23 to 05/15/32(g) 2,292,670 2,477,734 - -------------------------------------------------------------------------------------------------- 8.50%, 11/15/24 to 02/15/25(g) 122,829 135,652 - -------------------------------------------------------------------------------------------------- 5.50%, 06/15/33 to 12/15/33(g) 3,413,324 3,480,757 - -------------------------------------------------------------------------------------------------- 21,442,642 ================================================================================================== Total U.S. Mortgage-Backed Securities (Cost $185,737,014) 187,777,603 ==================================================================================================
F-9 BAL-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - -------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY SECURITIES--4.27% FEDERAL HOME LOAN BANK (FHLB)--3.75% Unsec. Disc. Notes, 1.50%, 10/01/04(n) $ 87,995,000 $ 87,995,000 - -------------------------------------------------------------------------------------------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)--0.52% Unsec. Floating Rate Global Notes, 4.40%, 02/17/09(g)(o) 8,675,000 8,717,768 - -------------------------------------------------------------------------------------------------- Unsec. Global Notes, 3.38%, 12/15/08(g) 3,525,000 3,497,047 - -------------------------------------------------------------------------------------------------- 12,214,815 ================================================================================================== Total U.S. Government Agency Securities (Cost $100,072,103) 100,209,815 ================================================================================================== U.S. TREASURY SECURITIES--3.89% U.S. TREASURY NOTES--2.82% 6.75%, 05/15/05(g) 5,050,000 5,193,215 - -------------------------------------------------------------------------------------------------- 1.25%, 05/31/05(g) 1,500,000 1,492,383 - -------------------------------------------------------------------------------------------------- 1.50%, 07/31/05(g) 800,000 795,813 - -------------------------------------------------------------------------------------------------- 6.50%, 10/15/06(g) 17,165,000 18,479,195 - -------------------------------------------------------------------------------------------------- 3.50%, 11/15/06(g) 14,800,000 15,059,000 - -------------------------------------------------------------------------------------------------- 3.13%, 10/15/08(g) 3,100,000 3,096,125 - -------------------------------------------------------------------------------------------------- 4.75%, 11/15/08(g) 5,680,000 6,024,350 - -------------------------------------------------------------------------------------------------- 3.38%, 09/15/09(g) 3,400,000 3,402,652 - -------------------------------------------------------------------------------------------------- 5.00%, 02/15/11(g) 11,825,000 12,704,484 - -------------------------------------------------------------------------------------------------- 66,247,217 ================================================================================================== U.S. TREASURY BONDS--1.07% 7.25%, 05/15/16 to 08/15/22(g) 13,155,000 16,707,071 - -------------------------------------------------------------------------------------------------- 7.50%, 11/15/16(g) 150,000 192,797 - -------------------------------------------------------------------------------------------------- 5.38%, 02/15/31(g) 7,600,000 8,141,500 - -------------------------------------------------------------------------------------------------- 25,041,368 ================================================================================================== Total U.S. Treasury Securities (Cost $89,293,035) 91,288,585 ================================================================================================== ASSET-BACKED SECURITIES--0.86% OTHER DIVERSIFIED FINANCIAL SERVICES--0.76% Citicorp Lease-Series 1999-1, Class A1, Pass Through Ctfs., 7.22%, 06/15/05 (Acquired 05/08/02-02/25/04; Cost $6,179,945)(d)(g) 5,820,154 6,001,071 - -------------------------------------------------------------------------------------------------- Class A2, Pass Through Ctfs., 8.04%, 12/15/19 (Acquired 06/01/00; Cost $3,901,297)(d)(g) 3,950,000 4,685,830 - -------------------------------------------------------------------------------------------------- Mangrove Bay, Pass Through Ctfs., 6.10%, 07/15/33 (Acquired 07/13/04; Cost $1,391,796) (d)(g) 1,400,000 1,429,627 - -------------------------------------------------------------------------------------------------- Patrons' Legacy-Series 2004-I, Ctfs., 6.67%, 02/04/17 (Acquired 04/30/04; Cost $5,000,000) (d)(e) 5,000,000 5,196,937 - -------------------------------------------------------------------------------------------------- Yorkshire Power (Cayman Islands)-Series 2000-1, Pass Through Ctfs., 8.25%, 02/15/05 (Acquired 11/12/03; Cost $640,800)(d)(e)(g) 600,000 610,693 - -------------------------------------------------------------------------------------------------- 17,924,158 ================================================================================================== THRIFTS & MORTGAGE FINANCE--0.10% Sovereign Bank, Class A-1, Pass Through Ctfs., 10.20%, 06/30/05 (Acquired 09/22/04; Cost $2,352,075)(d)(e)(g) 2,232,100 2,337,798 ================================================================================================== Total Asset-Backed Securities (Cost $19,465,912) 20,261,956 ================================================================================================== TOTAL INVESTMENTS--82.71% (excluding investments purchased with cash collateral from securities loaned) (Cost $1,882,733,575) 1,943,101,757 ==================================================================================================
F-10 BAL-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--17.29% Liquid Assets Portfolio-Institutional Class(q)(r) 203,095,532 $ 203,095,532 - -------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(q)(r) 203,095,533 203,095,533 - -------------------------------------------------------------------------------------------------- Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $406,191,065) 406,191,065 ================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $2,288,924,640) $ 2,349,292,822 __________________________________________________________________________________________________ ==================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Ctfs. Certificates Deb. Debentures Disc. Discounted Gtd. Guaranteed Pfd. Preferred RB Revenue Bonds REGS Regulation S Sec. Secured Sr. Senior Sub. Subordinated TBA To Be Announced Unsec. Unsecured Unsub. Unsubordinated Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for security lending transactions at September 30, 2004. (c) Interest rate is redetermined quarterly. Rate shown is the rate in effect on September 30, 2004. (d) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at September 30, 2004 was $68,213,933, which represented 2.90% of the Fund's Total Investments. Unless otherwise indicated, these securities are not considered to be illiquid. (e) Security considered to be illiquid. The aggregate market value of these securities considered illiquid at September 30, 2004 was $38,640,401, which represented 1.64% of the Fund's Total Investments. (f) In accordance with procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The market value of this security at September 30, 2004 was 1.79% of the Fund's Total Investments. See Note 1A. (g) In accordance with the procedures established by the Board of Trustees, security fair valued based on an evaluated quote provided by an independent pricing service. The aggregate market value of these securities at September 30, 2004 was $559,573,000, which represented 23.82% of the Fund's Total Investments. See Note 1A. (h) A portion of the principal balance was pledged as collateral to cover margin requirements for open futures contracts. See Note 1G and Note 4. (i) Perpetual bond with no specified maturity date. (j) Interest rate is redetermined semi-annually. Rate shown is the rate in effect on September 30, 2004. (k) Principal and interest payments are secured by bond insurance provided by one of the following companies: Ambac Assurance Corp., Financial Guaranty Insurance Co., Financial Security Assurance Inc., or MBIA Insurance Corp. (l) Zero coupon bond issued at a discount. The interest rate shown represents the current yield on September 30, 2004. Bond will convert to a fixed coupon rate at a specified future date. (m) Security purchased on forward commitment basis. This security is subject to dollar roll transactions. See Note 1C. (n) Security is traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. (o) Interest rate is redetermined monthly. Rate shown is the rate in effect on September 30, 2004. (p) Interest rate is redetermined annually. Rate shown is the rate in effect on September 30, 2004. (q) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (r) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. See accompanying notes which are an integral part of this schedule. F-11 BAL-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. F-12 BAL-QTR-1 A. SECURITY VALUATIONS -- (CONTINUED) Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. DOLLAR ROLL TRANSACTIONS -- The Fund may engage in dollar roll transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to repurchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. Dollar roll transactions are considered borrowings under the 1940 Act. During the period between the sale and repurchase, the Fund will not be entitled to receive interest and principal payments on securities sold. Proceeds of the sale may be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. The difference between the selling price and the future repurchase price is recorded as realized gain (loss). At the time the Fund enters into the dollar roll, it will segregate liquid assets having a dollar value equal to the repurchase price. Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund's use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed transaction costs. D. 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 (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains F-13 BAL-QTR-1 D. FOREIGN CURRENCY TRANSLATIONS -- (CONTINUED) or losses arise from, (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. E. 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. F. COVERED CALL OPTIONS -- The Fund may write call options, on a covered basis; that is, the Fund will own the underlying security. When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability. The amount of the liability is subsequently "marked-to-market" to reflect the current market value of the option written. The current market value of a written option is the mean between the last bid and asked prices on that day. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. G. FUTURES CONTRACTS -- The Fund may purchase or sell futures contracts as a hedge against changes in market conditions. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are made or received depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission ("SEC"), to invest daily available cash balances and cash collateral from securities lending transactions in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. F-14 BAL-QTR-1 NOTE 2--INVESTMENTS IN AFFILIATES (CONTINUED) INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
MARKET PROCEEDS UNREALIZED MARKET REALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND GAIN FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME* (LOSS) - ------------------------------------------------------------------------------------------------------------------------ Liquid Assets Portfolio- Institutional Class $ 60,195,599 $464,287,024 $(321,387,091) $ -- $203,095,532 $143,928 $ -- - ------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio- Institutional Class 60,195,599 464,287,025 (321,387,091) -- 203,095,533 140,514 -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL $120,391,198 $928,574,049 $(642,774,182) $ -- $406,191,065 $284,442 $ -- _________________________________________________________________________________________________________________________ =========================================================================================================================
* Dividend income is net of income rebate paid to security lending counterparties. NOTE 3--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to a loss on the collateral invested. At September 30, 2004, securities with an aggregate value of $398,151,665 were on loan to brokers. The loans were secured by cash collateral of $406,191,065, received by the Fund and subsequently invested in affiliated money market funds. For the nine months ended September 30, 2004, the Fund received dividends on cash collateral net of income rebate paid to counterparties of $284,442 for securities lending transactions. NOTE 4--FUTURES CONTRACTS On September 30, 2004, $4,150,000 principal amount of corporate obligations were pledged as collateral to cover margin requirements for open futures contracts. OPEN FUTURES CONTRACTS AT PERIOD END
UNREALIZED NO. OF MONTH/ MARKET APPRECIATION CONTRACT CONTRACTS COMMITMENT VALUE (DEPRECIATION) - --------------------------------------------------------------------------------------- U.S. Treasury 30 Year Bond 14 Dec-04/Long $ 1,571,062 $ 19,322 - --------------------------------------------------------------------------------------- U.S. Treasury 5 Year Notes 490 Dec-04/Long 54,267,500 113,220 - --------------------------------------------------------------------------------------- U.S. Treasury 2 Year Notes 220 Dec-04/Long 46,471,563 (11,412) - --------------------------------------------------------------------------------------- $102,310,125 $121,130 =======================================================================================
NOTE 5--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $653,830,957 and $1,125,601,269, respectively. F-15 BAL-QTR-1 NOTE 5--INVESTMENT SECURITIES (CONTINUED) UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $117,341,338 - ----------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (77,761,071) - ----------------------------------------------------------------------------- Net unrealized appreciation of investment securities $ 39,580,267 =============================================================================
Cost of investments for tax purposes is $2,309,712,555. F-16 BAL-QTR-1 AIM BASIC BALANCED FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com BBA-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- STOCKS & OTHER EQUTIY INTERESTS--64.08% ADVERTISING--2.46% Interpublic Group of Cos., Inc. (The)(a) 183,000 $ 1,937,970 - ----------------------------------------------------------------------------------------------------------------------------------- Omnicom Group Inc. 31,900 2,330,614 - ----------------------------------------------------------------------------------------------------------------------------------- 4,268,584 =================================================================================================================================== AEROSPACE & DEFENSE--1.07% Honeywell International Inc. 51,500 1,846,790 =================================================================================================================================== ALUMINUM--1.10% Alcoa Inc. 57,000 1,914,630 =================================================================================================================================== APPAREL RETAIL--1.12% Gap, Inc. (The) 103,900 1,942,930 =================================================================================================================================== ASSET MANAGEMENT & CUSTODY BANKS--1.43% Bank of New York Co., Inc. (The) 85,000 2,479,450 =================================================================================================================================== BUILDING PRODUCTS--2.40% American Standard Cos. Inc.(a) 41,000 1,595,310 =================================================================================================================================== Masco Corp. 74,000 2,555,220 - ----------------------------------------------------------------------------------------------------------------------------------- 4,150,530 =================================================================================================================================== COMMUNICATIONS EQUIPMENT--0.69% Motorola, Inc. 66,300 1,196,052 =================================================================================================================================== CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.54% Deere & Co. 14,500 935,975 =================================================================================================================================== CONSUMER ELECTRONICS--2.03% Koninklijke (Royal) Philips Electronics N.V.-New York Shares (Netherlands) 62,200 1,425,002 - ----------------------------------------------------------------------------------------------------------------------------------- Sony Corp.-ADR (Japan) 61,000 2,097,790 - ----------------------------------------------------------------------------------------------------------------------------------- 3,522,792 =================================================================================================================================== DATA PROCESSING & OUTSOURCED SERVICES--3.22% Ceridian Corp.(a) 100,900 1,857,569 - ----------------------------------------------------------------------------------------------------------------------------------- First Data Corp. 85,600 3,723,600 - ----------------------------------------------------------------------------------------------------------------------------------- 5,581,169 =================================================================================================================================== DEPARTMENT STORES--0.82% May Department Stores Co. (The) 55,100 1,412,213 =================================================================================================================================== DIVERSIFIED CHEMICALS--0.48% Dow Chemical Co. (The) 18,500 835,830 ===================================================================================================================================
F-1 BBA-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED COMMERCIAL SERVICES--1.77% Cendant Corp. 141,700 $ 3,060,720 - ----------------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.25% FirstEnergy Corp. 10,600 435,448 - ----------------------------------------------------------------------------------------------------------------------------------- ENVIRONMENTAL SERVICES--1.93% Waste Management, Inc. 122,500 3,349,150 - ----------------------------------------------------------------------------------------------------------------------------------- FOOD RETAIL--2.05% Kroger Co. (The)(a) 126,400 1,961,728 - ----------------------------------------------------------------------------------------------------------------------------------- Safeway Inc.(a) 82,000 1,583,420 - ----------------------------------------------------------------------------------------------------------------------------------- 3,545,148 =================================================================================================================================== GENERAL MERCHANDISE STORES--1.55% Target Corp. 59,400 2,687,850 =================================================================================================================================== HEALTH CARE DISTRIBUTORS--2.69% Cardinal Health, Inc. 63,200 2,766,264 - ----------------------------------------------------------------------------------------------------------------------------------- McKesson Corp. 74,000 1,898,100 - ----------------------------------------------------------------------------------------------------------------------------------- 4,664,364 =================================================================================================================================== HEALTH CARE EQUIPMENT--1.32% Baxter International Inc. 50,500 1,624,080 - ----------------------------------------------------------------------------------------------------------------------------------- Waters Corp.(a) 15,000 661,500 - ----------------------------------------------------------------------------------------------------------------------------------- 2,285,580 =================================================================================================================================== HEALTH CARE FACILITIES--1.21% HCA Inc. 54,800 2,090,620 =================================================================================================================================== HEALTH CARE SERVICES--0.38% IMS Health Inc. 27,800 664,976 =================================================================================================================================== INDUSTRIAL CONGLOMERATES--3.76% General Electric Co. 73,100 2,454,698 - ----------------------------------------------------------------------------------------------------------------------------------- Tyco International Ltd. (Bermuda) 132,600 4,065,516 - ----------------------------------------------------------------------------------------------------------------------------------- 6,520,214 =================================================================================================================================== INDUSTRIAL MACHINERY--1.56% Illinois Tool Works Inc. 29,100 2,711,247 =================================================================================================================================== INSURANCE BROKERS--0.72% Aon Corp. 43,500 1,250,190 =================================================================================================================================== INTEGRATED OIL & GAS--0.12% Shell Frontier Oil & Gas Inc.-Series B, 2.38% Floating Rate Pfd.(b) 2 200,000 =================================================================================================================================== INVESTMENT BANKING & BROKERAGE--2.52% Merrill Lynch & Co., Inc. 39,000 1,939,080 - ----------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley 49,400 2,435,420 - ----------------------------------------------------------------------------------------------------------------------------------- 4,374,500 ===================================================================================================================================
F-2 BBA-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- MANAGED HEALTH CARE--1.54% Anthem, Inc.(a) 30,500 $ 2,661,125 =================================================================================================================================== MOVIES & ENTERTAINMENT--1.37% Walt Disney Co. (The) 105,500 2,379,025 =================================================================================================================================== MULTI-LINE INSURANCE--0.91% Hartford Financial Services Group, Inc. (The) 25,500 1,579,215 =================================================================================================================================== OIL & GAS DRILLING--2.36% Pride International, Inc.(a) 49,200 973,668 - ----------------------------------------------------------------------------------------------------------------------------------- Transocean Inc. (Cayman Islands)(a) 86,900 3,109,282 - ----------------------------------------------------------------------------------------------------------------------------------- 4,082,950 =================================================================================================================================== OIL & GAS EQUIPMENT & SERVICES--2.45% Halliburton Co. 92,000 3,099,480 - ----------------------------------------------------------------------------------------------------------------------------------- Schlumberger Ltd. (Netherlands) 17,100 1,151,001 - ----------------------------------------------------------------------------------------------------------------------------------- 4,250,481 =================================================================================================================================== OTHER DIVERSIFIED FINANCIAL SERVICES--4.71% ABN AMRO XVIII Custodial Receipts-Series MM18, 2.79% Floating Rate, Pfd. (Acquired 09/10/04-09/13/04; Cost $199,995)(c)(d)(o) 2 200,000 - ----------------------------------------------------------------------------------------------------------------------------------- Citigroup Inc. 75,000 3,309,000 - ----------------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase & Co. 100,928 4,009,870 - ----------------------------------------------------------------------------------------------------------------------------------- Zurich RegCaPS Funding Trust III, 2.17% Floating Rate Pfd. (Acquired 06/03/04-09/28/04; Cost $635,805)(b)(c)(d) 650 641,550 - ----------------------------------------------------------------------------------------------------------------------------------- 8,160,420 =================================================================================================================================== PACKAGED FOODS & MEATS--1.01% Kraft Foods Inc.-Class A 55,000 1,744,600 =================================================================================================================================== PHARMACEUTICALS--4.74% Pfizer Inc. 80,500 2,463,300 - ----------------------------------------------------------------------------------------------------------------------------------- Sanofi-Aventis S.A. (France)(e) 51,712 3,766,881 - ----------------------------------------------------------------------------------------------------------------------------------- Wyeth 53,200 1,989,680 - ----------------------------------------------------------------------------------------------------------------------------------- 8,219,861 =================================================================================================================================== PROPERTY & CASUALTY INSURANCE--1.56% ACE Ltd. (Cayman Islands) 67,600 2,708,056 =================================================================================================================================== SYSTEMS SOFTWARE--1.97% Computer Associates International, Inc. 129,800 3,413,740 =================================================================================================================================== THRIFTS & MORTGAGE FINANCE--2.27% Fannie Mae 54,400 3,448,960 - ----------------------------------------------------------------------------------------------------------------------------------- Fannie Mae-Series J, 3.78% Pfd.(f) 4,850 244,471 - ----------------------------------------------------------------------------------------------------------------------------------- Fannie Mae-Series K, 3.00% Pfd.(f) 4,850 247,956 - ----------------------------------------------------------------------------------------------------------------------------------- 3,941,387 =================================================================================================================================== Total Stocks & Other Equity Interests (Cost $100,415,311) 111,067,812 ===================================================================================================================================
F-3 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- BONDS & NOTES--14.84% ADVERTISING--0.08% Interpublic Group of Cos., Inc. (The), Sr. Unsec. Notes, 7.88%, 10/15/05(f) $ 130,000 $ 136,098 =================================================================================================================================== AEROSPACE & DEFENSE--0.19% Lockheed Martin Corp.-Series A, Medium Term Notes, 8.66%, 11/30/06(f) 35,000 38,634 - ----------------------------------------------------------------------------------------------------------------------------------- Northrop Grumman Corp., Unsec. Deb., 9.38%, 10/15/24(f) 275,000 288,357 - ----------------------------------------------------------------------------------------------------------------------------------- 326,991 =================================================================================================================================== AUTOMOBILE MANUFACTURERS--0.09% DaimlerChrysler N.A. Holding Corp., Unsec. Gtd. Global Notes, 7.40%, 01/20/05(f) 110,000 111,648 - ----------------------------------------------------------------------------------------------------------------------------------- DaimlerChrysler N.A. Holding Corp.-Series D, Gtd. Medium Term Notes, 3.40%, 12/15/04(f) 50,000 50,126 - ----------------------------------------------------------------------------------------------------------------------------------- 161,774 =================================================================================================================================== BROADCASTING & CABLE TV--1.19% Continental Cablevision, Inc., Sr. Unsec. Deb., 8.88%, 09/15/05(f) 500,000 528,105 - ----------------------------------------------------------------------------------------------------------------------------------- 9.50%, 08/01/13(f) 100,000 110,141 - ----------------------------------------------------------------------------------------------------------------------------------- Cox Communications, Inc., Unsec. Notes, 6.88%, 06/15/05(f) 65,000 66,645 - ----------------------------------------------------------------------------------------------------------------------------------- Cox Radio, Inc., Sr. Unsec. Notes, 6.63%, 02/15/06(f) 75,000 78,413 - ----------------------------------------------------------------------------------------------------------------------------------- Lenfest Communications, Inc., Sr. Unsec. Notes, 8.38%, 11/01/05(f) 120,000 127,560 - ----------------------------------------------------------------------------------------------------------------------------------- Rogers Cablesystems Ltd. (Canada)-Series B, Sr. Sec. Second Priority Yankee Notes, 10.00%, 03/15/05(f) 160,000 166,000 - ----------------------------------------------------------------------------------------------------------------------------------- TCI Communications, Inc., Sr. Notes, 7.25%, 08/01/05(f) 175,000 181,601 - ----------------------------------------------------------------------------------------------------------------------------------- TCI Communications, Inc., Sr. Unsec. Notes, 8.00%, 08/01/05(f) 125,000 130,471 - ----------------------------------------------------------------------------------------------------------------------------------- Time Warner Cos., Inc., Sr. Unsec. Gtd. Deb., 7.57%, 02/01/24(f) 65,000 73,452 - ----------------------------------------------------------------------------------------------------------------------------------- Time Warner Cos., Inc., Unsec. Deb., 9.15%, 02/01/23(f) 350,000 449,823 - ----------------------------------------------------------------------------------------------------------------------------------- Time Warner Cos., Inc., Unsec. Notes, 7.75%, 06/15/05(f) 150,000 155,193 - ----------------------------------------------------------------------------------------------------------------------------------- 2,067,404 =================================================================================================================================== CONSUMER FINANCE--2.47% Associates Corp. of North America, Sr. Global Deb., 6.95%, 11/01/18(f) 175,000 204,542 - ----------------------------------------------------------------------------------------------------------------------------------- Capital One Bank, Sr. Global Bank Notes, 8.25%, 06/15/05(f) 225,000 233,370 - ----------------------------------------------------------------------------------------------------------------------------------- Capital One Capital I, Sub. Floating Rate Bonds, 3.24%, 02/01/27 (Acquired 09/16/04; Cost $433,245)(b)(c)(d)(f) 425,000 431,463 - ----------------------------------------------------------------------------------------------------------------------------------- Capital One Financial Corp., Sr. Unsec. Notes, 7.25%, 05/01/06(f) 275,000 291,052 - ----------------------------------------------------------------------------------------------------------------------------------- Capital One Financial Corp., Unsec. Notes, 7.13%, 08/01/08(f) 150,000 164,380 ===================================================================================================================================
F-4 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER FINANCE--(CONTINUED) Ford Motor Credit Co., Floating Rate Global Notes, 3.54%, 10/25/04(b)(f) $ 175,000 $ 175,070 - ----------------------------------------------------------------------------------------------------------------------------------- Ford Motor Credit Co., Notes, 6.75%, 05/15/05(f) 100,000 102,500 - ----------------------------------------------------------------------------------------------------------------------------------- Ford Motor Credit Co., Unsec. Floating Rate Global Notes, 1.85%, 04/28/05(b)(f) 350,000 349,937 - ----------------------------------------------------------------------------------------------------------------------------------- Ford Motor Credit Co., Unsec. Global Notes, 6.50%, 01/25/07(f) 55,000 58,315 - ----------------------------------------------------------------------------------------------------------------------------------- 6.88%, 02/01/06(f) 450,000 471,231 - ----------------------------------------------------------------------------------------------------------------------------------- Ford Motor Credit Co., Unsec. Global Notes, 7.50%, 03/15/05(f) 275,000 281,094 - ----------------------------------------------------------------------------------------------------------------------------------- Ford Motor Credit Co., Unsec. Notes, 7.75%, 03/15/05(f) 220,000 225,058 - ----------------------------------------------------------------------------------------------------------------------------------- General Motors Acceptance Corp., Floating Rate Medium Term Notes, 3.82%, 03/04/05(b)(f) 625,000 628,869 - ----------------------------------------------------------------------------------------------------------------------------------- General Motors Acceptance Corp., Global Notes, 4.50%, 07/15/06(f) 190,000 193,186 - ----------------------------------------------------------------------------------------------------------------------------------- 7.50%, 07/15/05(f) 100,000 103,608 - ----------------------------------------------------------------------------------------------------------------------------------- General Motors Acceptance Corp., Medium Term Notes, 5.25%, 05/16/05(f) 55,000 55,886 - ----------------------------------------------------------------------------------------------------------------------------------- General Motors Acceptance Corp., Unsec. Unsub. Global Notes, 6.75%, 01/15/06(f) 300,000(g) 313,227 - ----------------------------------------------------------------------------------------------------------------------------------- 4,282,788 =================================================================================================================================== DIVERSIFIED BANKS--1.63% AB Spintab (Sweden), Bonds, 7.50% (Acquired 02/12/04; Cost $245,524)(c)(f)(h) 220,000 236,456 - ----------------------------------------------------------------------------------------------------------------------------------- American Savings Bank, Notes, 6.63%, 02/15/06 (Acquired 03/05/03; Cost $27,726)(c)(d)(f) 25,000 25,998 - ----------------------------------------------------------------------------------------------------------------------------------- Banco Nacional de Comercio Exterior S.N.C. (Mexico), Notes, 3.88%, 01/21/09 (Acquired 02/25/04; Cost $98,375)(c)(d)(f) 100,000 97,009 - ----------------------------------------------------------------------------------------------------------------------------------- BankBoston Capital Trust IV, Gtd. Floating Rate Notes, 2.45%, 06/08/28(b)(f) 250,000 244,160 - ----------------------------------------------------------------------------------------------------------------------------------- Barclays Bank PLC (United Kingdom), Bonds 8.55% (Acquired 11/05/03; Cost $123,064)(c)(f)(h) 100,000 121,758 - ----------------------------------------------------------------------------------------------------------------------------------- Centura Capital Trust I, Gtd. Notes, 8.85%, 06/01/27 (Acquired 05/22/03; Cost $75,926)(c)(d)(f) 60,000 70,444 - ----------------------------------------------------------------------------------------------------------------------------------- Chohung Bank (South Korea), Unsec. Sub. Second Tier Notes, 11.50%, 04/01/10 (Acquired 07/01/04; Cost $266,173)(c)(d)(f) 250,000 262,845 - ----------------------------------------------------------------------------------------------------------------------------------- Corporacion Andina de Fomento (Venezuela), Unsec. Yankee Notes, 8.88%, 06/01/05(f) 200,000 207,548 - ----------------------------------------------------------------------------------------------------------------------------------- Daiwa P.B. Ltd. (Cayman Islands)-Series E, Gtd.Sub. Floating Rate Medium Term Euro Notes, 2.15%(h)(i) 100,000 99,000 - ----------------------------------------------------------------------------------------------------------------------------------- Danske Bank A/S (Denmark), First Tier Bonds, 5.91% (Acquired 06/07/04; Cost $100,000)(c)(f)(h) 100,000 105,390 - ----------------------------------------------------------------------------------------------------------------------------------- HSBC Capital Funding L.P. (United Kingdom), Gtd. Bonds, 4.61% (Acquired 11/05/03; Cost $46,626)(c)(f)(h) 50,000 47,470 - ----------------------------------------------------------------------------------------------------------------------------------- Lloyds Bank PLC (United Kingdom)-Series 1, Unsec. Sub. Floating Rate Euro Notes, 2.19%(f)(h)(i) 140,000 123,154 - ----------------------------------------------------------------------------------------------------------------------------------- National Bank of Canada (Canada), Floating Rate Deb., 2.13%, 8/29/87(f)(i) 80,000 69,455 - -----------------------------------------------------------------------------------------------------------------------------------
F-5 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED BANKS--(CONTINUED) National Westminster Bank PLC (United Kingdom)-Series B, Unsec. Sub. Floating Rate Euro Notes, 2.13%(f)(h)(i) $ 150,000 $ 130,384 - ----------------------------------------------------------------------------------------------------------------------------------- NBD Bank N.A. Michigan, Unsec. Putable Sub. Deb., 8.25%, 11/01/04(f) 100,000 130,104 - ----------------------------------------------------------------------------------------------------------------------------------- RBS Capital Trust I, Bonds, 4.71%(f)(h) 50,000 48,467 - ----------------------------------------------------------------------------------------------------------------------------------- Wells Fargo & Co., Sr. Unsec. Global Notes, 3.75%, 10/15/07(f) 275,000 276,155 - ----------------------------------------------------------------------------------------------------------------------------------- Wells Fargo Bank, N.A., Unsec. Sub. Global Bank Notes, 7.80%, 06/15/10(f) 250,000 261,725 - ----------------------------------------------------------------------------------------------------------------------------------- Woori Bank (South Korea), Unsec. Sub. Second Tier Notes, 11.75%, 03/01/10 (Acquired 07/01/04; Cost $264,725)(c)(d)(f) 250,000 261,352 - ----------------------------------------------------------------------------------------------------------------------------------- 2,818,874 =================================================================================================================================== DIVERSIFIED CAPITAL MARKETS--0.13% UBS Preferred Funding Trust I, Gtd. Global Bonds, 8.62%(f)(h) 185,000 224,675 =================================================================================================================================== ELECTRIC UTILITIES--0.46% AmerenEnergy Generating Co.-Series C, Sr. Unsec. Global Notes, 7.75%, 11/01/05(f) 20,000 21,098 - ----------------------------------------------------------------------------------------------------------------------------------- Consolidated Edison Co. of New York, Unsec. Deb., 7.75%, 06/01/26(f) 55,000 59,455 - ----------------------------------------------------------------------------------------------------------------------------------- Kansas City Power & Light Co., Sr. Unsec. Notes, 7.13%, 12/15/05(f) 350,000 367,664 - ----------------------------------------------------------------------------------------------------------------------------------- Pacific Gas & Electric Co., First Mortgage Floating Rate Notes, 2.72%, 04/03/06(b) 120,000 120,119 - ----------------------------------------------------------------------------------------------------------------------------------- Western Power Distribution Holdings Ltd. (United Kingdom), Unsec. Unsub. Notes, 6.75%, 12/15/04 (Acquired 01/08/04; Cost $46,744)(c)(d)(f) 45,000 45,252 - ----------------------------------------------------------------------------------------------------------------------------------- Yorkshire Power Finance (Cayman Islands)-Series B, Sr. Unsec. Gtd. Unsub. Global Notes, 6.50%, 02/25/08(f) 175,000 183,036 - ----------------------------------------------------------------------------------------------------------------------------------- 796,624 =================================================================================================================================== ENVIRONMENTAL SERVICES--0.13% Waste Management, Inc., Sr. Unsec. Notes, 7.00%, 10/01/04(f) 225,000 225,063 =================================================================================================================================== FOOD RETAIL--0.06% Safeway Inc., Sr. Unsec. Notes, 2.50%, 11/01/05(f) 100,000 99,765 =================================================================================================================================== GAS UTILITIES--0.33% CenterPoint Energy Resources Corp., Unsec. Deb., 6.50%, 02/01/08(f) 165,000 177,359 - ----------------------------------------------------------------------------------------------------------------------------------- Columbia Energy Group-Series C, Notes, 6.80%, 11/28/05(f) 225,000 235,008 - ----------------------------------------------------------------------------------------------------------------------------------- NiSource Capital Markets, Inc., Medium Term Notes, 7.68%, 04/15/05(f) 150,000 153,849 - ----------------------------------------------------------------------------------------------------------------------------------- 566,216 =================================================================================================================================== HEALTH CARE FACILITIES--0.30% HCA Inc., Notes, 7.00%, 07/01/07(f) 45,000 48,398 - ----------------------------------------------------------------------------------------------------------------------------------- HCA Inc., Sr. Sub. Notes, 6.91%, 06/15/05(f) 460,000 471,081 - ----------------------------------------------------------------------------------------------------------------------------------- 519,479 ===================================================================================================================================
F-6 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOMEBUILDING--0.44% D.R. Horton, Inc., Sr. Unsec. Notes, 7.88%, 08/15/11(f) $ 200,000 $ 230,500 - ----------------------------------------------------------------------------------------------------------------------------------- Lennar Corp.-Series B, Sr. Unsec. Gtd. Global Notes, 9.95%, 05/01/10(f) 275,000 300,385 - ----------------------------------------------------------------------------------------------------------------------------------- Pulte Homes, Inc., Unsec. Gtd. Notes, 7.30%, 10/24/05(f) 150,000 156,647 - ----------------------------------------------------------------------------------------------------------------------------------- Ryland Group, Inc. (The), Sr. Unsec. Unsub. Notes, 9.75%, 09/01/10(f) 75,000 82,778 - ----------------------------------------------------------------------------------------------------------------------------------- 770,310 =================================================================================================================================== HYPERMARKETS & SUPER CENTERS--0.05% Wal-Mart Stores, Inc., Unsec. Deb., 8.50%, 09/15/24(f) 85,000 88,817 =================================================================================================================================== INDUSTRIAL CONGLOMERATES--0.25% Tyco International Group S.A. (Luxembourg), Unsec. Gtd. Unsub. Yankee Notes, 6.38%, 06/15/05(f) 375,000 384,199 - ----------------------------------------------------------------------------------------------------------------------------------- URC Holdings Corp., Sr. Notes, 7.88%, 06/30/06 (Acquired 10/08/03; Cost $56,614)(c)(d)(f) 50,000 54,049 - ----------------------------------------------------------------------------------------------------------------------------------- 438,248 =================================================================================================================================== INTEGRATED OIL & GAS--0.32% Amerada Hess Corp., Unsec. Notes, 7.13%, 03/15/33(f) 150,000 160,773 - ----------------------------------------------------------------------------------------------------------------------------------- ConocoPhillips, Unsec. Deb., 7.13%, 03/15/28(f) 100,000 108,390 - ----------------------------------------------------------------------------------------------------------------------------------- Husky Oil Ltd. (Canada), Yankee Bonds, 8.90%, 08/15/28(f) 200,000 231,396 - ----------------------------------------------------------------------------------------------------------------------------------- Repsol International Finance B.V. (Netherlands), Unsec. Gtd. Global Notes, 7.45%, 07/15/05(f) 45,000 46,670 - ----------------------------------------------------------------------------------------------------------------------------------- 547,229 =================================================================================================================================== INTEGRATED TELECOMMUNICATION SERVICES--1.33% France Telecom S.A. (France), Sr. Unsec. Global Notes, 8.50%, 03/01/31(f) 60,000 79,392 - ----------------------------------------------------------------------------------------------------------------------------------- Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 01/30/06(f) 275,000 289,011 - ----------------------------------------------------------------------------------------------------------------------------------- Sprint Capital Corp., Unsec. Gtd. Global Notes, 7.90%, 03/15/05(f) 380,000 389,587 - ----------------------------------------------------------------------------------------------------------------------------------- Sprint Corp., Deb., 9.25%, 04/15/22(f) 90,000 116,010 - ----------------------------------------------------------------------------------------------------------------------------------- Telus Corp. (Canada), Yankee Notes, 7.50%, 06/01/07(f) 250,000 273,193 - ----------------------------------------------------------------------------------------------------------------------------------- 8.00%, 06/01/11(f) 60,000 70,110 - ----------------------------------------------------------------------------------------------------------------------------------- Verizon California, Inc.-Series F, Unsec. Deb., 6.75%, 05/15/27(f) 100,000 105,806 - ----------------------------------------------------------------------------------------------------------------------------------- Verizon Communications, Inc., Unsec. Deb., 6.36%, 04/15/06(f) 400,000 420,272 - ----------------------------------------------------------------------------------------------------------------------------------- Verizon Communications, Inc., Unsec. Deb., 6.94%, 04/15/28(f) 125,000 134,655 - ----------------------------------------------------------------------------------------------------------------------------------- 8.75%, 11/01/21(f) 85,000 106,909 - ----------------------------------------------------------------------------------------------------------------------------------- Verizon New York Inc.-Series A, Sr. Unsec. Global Deb., 6.88%, 04/01/12(f) 200,000 222,312 - ----------------------------------------------------------------------------------------------------------------------------------- Verizon Virginia, Inc.-Series A, Unsec. Global Deb., 4.63%, 03/15/13(f) 100,000 97,880 - ----------------------------------------------------------------------------------------------------------------------------------- 2,305,137 ===================================================================================================================================
F-7 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT BANKING & BROKERAGE--0.10% Lehman Brothers Inc., Sr. Sub. Deb., 11.63%, 05/15/05(f) $ 75,000 $ 78,791 - ----------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Inc., Sr. Unsec. Sub. Notes, 7.63%, 06/01/06(f) 50,000 53,768 - ----------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc.-Series B, Medium Term Notes, 4.54%, 03/08/05(f) 40,000 40,433 - ----------------------------------------------------------------------------------------------------------------------------------- 172,992 =================================================================================================================================== LIFE & HEALTH INSURANCE--0.20% Prudential Holdings, LLC-Series B, Bonds, 7.25%, 12/18/23 (Acquired 01/22/04-01/29/04; Cost $324,231)(c)(f)(j) 275,000 324,673 - ----------------------------------------------------------------------------------------------------------------------------------- ReliaStar Financial Corp., Unsec. Notes, 8.00%, 10/30/06(f) 25,000 27,420 - ----------------------------------------------------------------------------------------------------------------------------------- 352,093 =================================================================================================================================== MOVIES & ENTERTAINMENT--0.09% Time Warner Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/05(f) 150,000 152,714 =================================================================================================================================== MULTI-UTILITIES & UNREGULATED POWER--0.07% Dominion Resources, Inc.-Series B, Sr. Unsec. Unsub. Global Notes, 7.63%, 07/15/05(f) 125,000 129,970 =================================================================================================================================== MUNICIPALITIES--0.40% Industry (City of), California Urban Development Agency (Project 3); Taxable Series 2003 Bonds, 6.10%, 05/01/24(f)(j) 150,000 154,313 - ----------------------------------------------------------------------------------------------------------------------------------- Phoenix (City of), Arizona Civic Improvement Corp.; Taxable Rental Car Facility Series 2004 RB, 3.69%, 07/01/07(f)(j) 80,000 80,700 - ----------------------------------------------------------------------------------------------------------------------------------- 4.21%, 07/01/08(f)(j) 100,000 101,625 - ----------------------------------------------------------------------------------------------------------------------------------- Sacramento (County of), California; Taxable Pension Funding Series 2004 C-1 RB, 0.27%, 07/10/30(f)(j)(k) 375,000 354,375 - ----------------------------------------------------------------------------------------------------------------------------------- 691,013 =================================================================================================================================== OIL & GAS DRILLING--0.10% Transocean Inc. (Cayman Islands), Unsec. Global Notes, 6.75%, 04/15/05(f) 175,000 179,909 =================================================================================================================================== OIL & GAS EXPLORATION & PRODUCTION--0.19% Pemex Project Funding Master Trust, Unsec. Gtd. Unsub. Global Notes, 7.38%, 12/15/14(f) 300,000 327,330 =================================================================================================================================== OTHER DIVERSIFIED FINANCIAL SERVICES--0.90% General Electric Capital Corp.-Series A, Medium Term Global Notes, 2.85%, 01/30/06(f) 20,000 20,047 - ----------------------------------------------------------------------------------------------------------------------------------- Heller Financial, Inc., Sr. Unsec. Global Notes, 8.00%, 06/15/05(f) 100,000 103,903 - ----------------------------------------------------------------------------------------------------------------------------------- ING Capital Funding Trust III, Gtd. Global Bonds, 8.44%(f)(h) 125,000 149,235 ===================================================================================================================================
F-8 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- OTHER DIVERSIFIED FINANCIAL SERVICES--(CONTINUED) Pemex Finance Ltd. (Cayman Islands), Sr. Unsec. Global Notes, 8.02%, 05/15/07(f) $ 137,500 $ 147,214 - ----------------------------------------------------------------------------------------------------------------------------------- Pemex Finance Ltd. (Cayman Islands)-Series 1999-2, Class A1, Global Bonds, 9.69%, 08/15/09(f) 180,000 206,010 - ----------------------------------------------------------------------------------------------------------------------------------- Premium Asset Trust-Series 2004-04, Sr. Notes, 4.13%, 03/12/09 (Acquired 03/04/04; Cost $249,833)(c)(d)(f) 250,000 246,894 - ----------------------------------------------------------------------------------------------------------------------------------- Regional Diversified Funding (Cayman Islands), Sr. Notes, 9.25%, 03/15/30 (Acquired 09/22/04; Cost $282,629)(c)(d)(f) 238,889 281,313 - ----------------------------------------------------------------------------------------------------------------------------------- XTRA, Inc.-Series C, Gtd. Medium Term Notes, 7.70%, 11/02/04(f) 175,000 175,586 - ----------------------------------------------------------------------------------------------------------------------------------- UFJ Finance Aruba AEC (Netherlands), Gtd. Sub. Tier II Euro Bonds, 8.75%, 11/13/08(f) 75,000 82,888 - ----------------------------------------------------------------------------------------------------------------------------------- 1,559,271 =================================================================================================================================== PACKAGED FOODS & MEATS--0.07% Nabisco, Inc., Notes, 6.38%, 02/01/05(f) 125,000 127,123 =================================================================================================================================== PROPERTY & CASUALTY INSURANCE--0.26% First American Capital Trust I, Gtd. Notes, 8.50%, 04/15/12(f) 325,000 373,714 - ----------------------------------------------------------------------------------------------------------------------------------- Oil Insurance Ltd. (Bermuda), Unsec. Sub. Deb., 5.15%, 08/15/33 (Acquired 03/23/04; Cost $78,743)(c)(d)(f) 75,000 76,407 - ----------------------------------------------------------------------------------------------------------------------------------- 450,121 =================================================================================================================================== REAL ESTATE--0.38% CarrAmerica Realty Corp., Sr. Unsec. Gtd. Notes, 6.63%, 03/01/05(f) 50,000 50,744 - ----------------------------------------------------------------------------------------------------------------------------------- Developers Diversified Realty Corp., Sr. Medium Term Notes, 6.84%, 12/16/04(f) 75,000 75,610 - ----------------------------------------------------------------------------------------------------------------------------------- EOP Operating L.P., Sr. Unsec. Notes, 6.63%, 02/15/05(f) 200,000 202,798 - ----------------------------------------------------------------------------------------------------------------------------------- Health Care Property Investors, Inc., Sr. Unsec. Notes, 6.88%, 06/08/05(f) 150,000 154,126 - ----------------------------------------------------------------------------------------------------------------------------------- HRPT Properties Trust, Sr. Unsec. Notes, 6.70%, 02/23/05(f) 125,000 127,026 - ----------------------------------------------------------------------------------------------------------------------------------- Spieker Properties, Inc., Medium Term Notes, 8.00%, 07/19/05(f) 50,000 51,933 - ----------------------------------------------------------------------------------------------------------------------------------- 662,237 =================================================================================================================================== REAL ESTATE MANAGEMENT & DEVELOPMENT--0.05% Southern Investments UK PLC (United Kingdom), Sr. Unsec. Unsub. Yankee Notes, 6.80%, 12/01/06(f) 75,000 78,893 =================================================================================================================================== REGIONAL BANKS--1.17% Cullen/Frost Capital Trust I, Unsec. Sub. Floating Rate Notes, 3.34%, 03/01/34(b)(f) 325,000 337,671 - ----------------------------------------------------------------------------------------------------------------------------------- Greater Bay Bancorp-Series B, Sr. Notes, 5.25%, 03/31/08(f) 350,000 354,298 - ----------------------------------------------------------------------------------------------------------------------------------- PNC Capital Trust C, Gtd. Floating Rate Notes, 2.36%, 06/01/28(b)(f) 175,000 165,564 ===================================================================================================================================
F-9 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- REGIONAL BANKS--(CONTINUED) Popular North America, Inc., Gtd. Notes, 4.70%, 06/30/09(f) $ 325,000 $ 333,720 - ----------------------------------------------------------------------------------------------------------------------------------- Santander Financial Issuances (Cayman Islands), Sec. Sub. Floating Rate Euro Notes, 2.25%(f)(h)(i) 750,000 742,059 - ----------------------------------------------------------------------------------------------------------------------------------- TCF Financial Corp., Sub. Notes, 5.00%, 06/15/14(f) 100,000 102,650 - ----------------------------------------------------------------------------------------------------------------------------------- 2,035,962 =================================================================================================================================== RESTAURANTS--0.03% McDonald's Corp., Unsec. Deb., 7.05%, 11/15/25(f) 55,000 59,034 =================================================================================================================================== SOVEREIGN DEBT--0.54% Japan Bank for International Cooperation (Japan), Unsec. Gtd. Euro Bonds, 6.50%, 10/06/05(f) 100,000 103,951 - ----------------------------------------------------------------------------------------------------------------------------------- New Brunswick (Province of) (Canada), Sec. Yankee Deb., 6.75%, 08/15/13(f) 40,000 47,080 - ----------------------------------------------------------------------------------------------------------------------------------- Quebec (Province of) (Canada), Sr. Unsec. Unsub. Global Deb., 5.75%, 02/15/09(f) 55,000 59,567 - ----------------------------------------------------------------------------------------------------------------------------------- Russian Federation (Russia), Unsec. Unsub. Bonds, 5.00%, 03/31/30 (Acquired 05/18/04; Cost $103,572)(c)(f) 115,000 111,240 - ----------------------------------------------------------------------------------------------------------------------------------- 8.75%, 07/24/05 (Acquired 09/10/04; Cost $78,713)(c)(d)(f) 75,000 78,225 - ----------------------------------------------------------------------------------------------------------------------------------- Russian Federation (Russia), Unsec. Unsub. Euro Bonds-REGS, 8.75%, 07/24/05 (Acquired 05/14/04; Cost $184,888)(c)(f) 175,000 182,684 - ----------------------------------------------------------------------------------------------------------------------------------- 10.00%, 06/26/07 (Acquired 05/14/04-05/18/04; Cost $157,706)(c)(f) 140,000 158,391 - ----------------------------------------------------------------------------------------------------------------------------------- United Mexican States (Mexico), Global Notes, 6.63%, 03/03/15(f) 60,000 63,816 - ----------------------------------------------------------------------------------------------------------------------------------- United Mexican States (Mexico)-Series A, Medium Term Global Notes, 7.50%, 04/08/33(f) 120,000 126,558 - ----------------------------------------------------------------------------------------------------------------------------------- 931,512 =================================================================================================================================== SPECIALIZED FINANCE--0.03% CIT Group Inc., Sr. Unsec. Unsub. Global Notes, 7.63%, 08/16/05(f) 50,000 52,176 =================================================================================================================================== THRIFTS & MORTGAGE FINANCE--0.11% Greenpoint Capital Trust I, Gtd. Sub. Notes, 9.10%, 06/01/27(f) 75,000 88,289 - ----------------------------------------------------------------------------------------------------------------------------------- Washington Mutual Finance Corp., Sr. Unsec. Notes, 8.25%, 06/15/05(f) 100,000 104,023 - ----------------------------------------------------------------------------------------------------------------------------------- 192,312 =================================================================================================================================== TOBACCO--0.13% Altria Group, Inc., Sr. Unsec. Notes, 7.00%, 11/04/13(f) 40,000 41,847 - ----------------------------------------------------------------------------------------------------------------------------------- Altria Group, Inc., Unsec. Global Notes, 7.00%, 07/15/05(f) 150,000 154,246 - ----------------------------------------------------------------------------------------------------------------------------------- Altria Group, Inc., Unsec. Notes, 6.38%, 02/01/06(f) 20,000 20,644 - ----------------------------------------------------------------------------------------------------------------------------------- 216,737 =================================================================================================================================== TRUCKING--0.10% Roadway Corp., Sr. Unsec. Gtd. Global Notes, 8.25%, 12/01/08(f) 150,000 169,394 ===================================================================================================================================
F-10 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--0.47% TeleCorp PCS, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 10.63%, 07/15/10(f) $ 420,000 $ 467,246 - ----------------------------------------------------------------------------------------------------------------------------------- Tritel PCS Inc., Sr. Unsec. Gtd. Sub. Global Notes, 10.38%, 01/15/11(f) 300,000 342,402 - ----------------------------------------------------------------------------------------------------------------------------------- 809,648 =================================================================================================================================== Total Bonds & Notes (Cost $25,637,200) 25,725,933 =================================================================================================================================== U.S. MORTGAGE BACKED SECURITIES--8.75% FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC)--3.17% 6.50%, 01/01/16 to 01/01/31(f) 165,630 174,318 - ----------------------------------------------------------------------------------------------------------------------------------- 6.00%, 03/01/17 to 11/01/33(f) 1,903,623 1,976,442 - ----------------------------------------------------------------------------------------------------------------------------------- 5.50%, 12/01/17 to 12/01/33(f) 1,181,910 1,203,944 - ----------------------------------------------------------------------------------------------------------------------------------- 4.50%, 10/01/18(f) 367,562 367,335 - ----------------------------------------------------------------------------------------------------------------------------------- 7.00%, 07/01/29 to 06/01/32(f) 332,998 353,483 - ----------------------------------------------------------------------------------------------------------------------------------- 7.50%, 11/01/30 to 12/01/30(f) 22,993 24,685 - ----------------------------------------------------------------------------------------------------------------------------------- 5.00%, 10/01/33(f) 447,789 444,954 - ----------------------------------------------------------------------------------------------------------------------------------- Pass Through Ctfs., TBA, 5.00%, 10/01/18(l) 924,000 940,086 - ----------------------------------------------------------------------------------------------------------------------------------- 5,485,247 =================================================================================================================================== FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)--4.47% Pass Through Ctfs., 7.50%, 11/01/15 to 05/01/32(f) 112,823 120,906 - ----------------------------------------------------------------------------------------------------------------------------------- 7.00%, 02/01/16 to 03/01/32(f) 199,210 211,507 - ----------------------------------------------------------------------------------------------------------------------------------- 6.50%, 10/01/16 to 12/01/33(f) 1,768,641 1,858,155 - ----------------------------------------------------------------------------------------------------------------------------------- 6.00%, 05/01/17 to 07/01/17(f) 601,371 631,174 - ----------------------------------------------------------------------------------------------------------------------------------- 5.00%, 02/01/18(f) 19,475 19,834 - ----------------------------------------------------------------------------------------------------------------------------------- 8.00%, 10/01/30(f) 20,262 22,050 - ----------------------------------------------------------------------------------------------------------------------------------- 5.50%, 06/01/33 to 12/01/33(f) 1,219,202 1,238,399 - ----------------------------------------------------------------------------------------------------------------------------------- Pass Through Ctfs., TBA, 5.00%, 10/01/18 to 10/01/33(l) 1,210,520 1,221,219 - ----------------------------------------------------------------------------------------------------------------------------------- 5.50%, 10/01/18(l) 1,166,000 1,206,360 - ----------------------------------------------------------------------------------------------------------------------------------- 6.00%, 11/01/32(l) 1,171,300 1,213,816 - ----------------------------------------------------------------------------------------------------------------------------------- 7,743,420 =================================================================================================================================== GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)--1.11% Pass Through Ctfs., 7.50%, 06/15/23 to 10/15/31(f) 74,092 80,070 - ----------------------------------------------------------------------------------------------------------------------------------- 8.50%, 02/15/25(f) 35,612 39,267 - ----------------------------------------------------------------------------------------------------------------------------------- 8.00%, 08/15/25(f) 19,840 21,823 - ----------------------------------------------------------------------------------------------------------------------------------- 7.00%, 02/15/31 to 05/15/32(f) 197,357 210,616 - ----------------------------------------------------------------------------------------------------------------------------------- 6.50%, 05/15/31 to 12/15/33(f) 435,909 460,553 - -----------------------------------------------------------------------------------------------------------------------------------
F-11 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)--(CONTINUED) Pass Through Ctfs., 6.00%, 12/15/31 to 02/15/33(f) $ 639,140 $ 663,868 - ----------------------------------------------------------------------------------------------------------------------------------- 5.50%, 09/15/33 to 02/15/34(f) 443,961 452,583 - ----------------------------------------------------------------------------------------------------------------------------------- 1,928,780 =================================================================================================================================== Total U.S. Mortgage-Backed Securities (Cost $15,077,794) 15,157,447 =================================================================================================================================== U.S. GOVERNMENT AGENCY SECURITIES--5.77% FEDERAL HOME LOAN BANK (FHLB)--5.33% Unsec. Disc. Notes, 1.50%, 10/01/04(m) 9,239,000 9,239,000 =================================================================================================================================== FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)--0.44% Unsec. Floating Rate Global Notes, 4.41%, 02/17/09(f)(n) 460,000 462,268 - ----------------------------------------------------------------------------------------------------------------------------------- Unsec. Global Notes, 3.38%, 12/15/08(f) 300,000 297,621 =================================================================================================================================== 759,889 =================================================================================================================================== Total U.S. Government Agency Securities (Cost $9,988,541) 9,998,889 =================================================================================================================================== U.S. TREASURY SECURITIES--5.57% U.S. TREASURY BONDS--1.44% 7.25%, 05/15/16 to 08/15/22(f) 1,000,000 1,269,981 - ----------------------------------------------------------------------------------------------------------------------------------- 7.50%, 11/15/16(f) 375,000 481,992 - ----------------------------------------------------------------------------------------------------------------------------------- 5.38%, 02/15/31(f) 685,000 733,806 =================================================================================================================================== 2,485,779 =================================================================================================================================== U.S. TREASURY NOTES--4.13% 6.75%, 05/15/05(f) 200,000 205,672 - ----------------------------------------------------------------------------------------------------------------------------------- 1.25%, 05/31/05(f) 200,000 198,984 - ----------------------------------------------------------------------------------------------------------------------------------- 6.50%, 10/15/06(f) 2,500,000 2,691,406 - ----------------------------------------------------------------------------------------------------------------------------------- 3.50%, 11/15/06(f) 400,000 407,000 - ----------------------------------------------------------------------------------------------------------------------------------- 3.13%, 10/15/08(f) 760,000 759,050 - ----------------------------------------------------------------------------------------------------------------------------------- 4.75%, 11/15/08(f) 2,100,000 2,227,313 - ----------------------------------------------------------------------------------------------------------------------------------- 3.38%, 09/15/09(f) 300,000 300,234 - ----------------------------------------------------------------------------------------------------------------------------------- 5.00%, 02/15/11(f) 350,000 376,031 - ----------------------------------------------------------------------------------------------------------------------------------- 7,165,690 =================================================================================================================================== Total U.S. Treasury Securities (Cost $9,631,476) 9,651,469 ===================================================================================================================================
F-12 BBA-QTR-1
PRINCIPAL MARKET AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--0.99% DIVERSIFIED BANKS--0.13% Sovereign Bank, Pass Through Ctfs., 10.20%, 06/30/05 (Acquired 09/22/04; Cost $227,097)(c)(d)(f) $ 215,513 $ 225,718 =================================================================================================================================== OTHER DIVERSIFIED FINANCIAL SERVICES--0.86% Citicorp Lease-Series 1999-1, Class A1, Pass Through Ctfs., 7.22%, 06/15/05 (Acquired 05/08/02-02/25/04; Cost $518,359)(c)(f) 485,013 500,089 - ----------------------------------------------------------------------------------------------------------------------------------- Citicorp Lease-Series 1999-1, Class A2, Pass Through Ctfs., 8.04%, 12/15/19 (Acquired 08/20/02; Cost $166,614)(c)(f) 150,000 177,943 - ----------------------------------------------------------------------------------------------------------------------------------- Mangrove Bay, Pass Through Ctfs., 6.10%, 07/15/33 (Acquired 07/13/04; Cost $124,268)(c)(f) 125,000 127,645 - ----------------------------------------------------------------------------------------------------------------------------------- Patrons' Legacy-series 2004-I, Ctfs., 6.67%, 02/04/17 (Acquired 04/30/04; Cost $500,000)(c)(d) 500,000 519,694 - ----------------------------------------------------------------------------------------------------------------------------------- PLC Trust 2003-1, Sec. Notes, 2.71%, 03/31/06 (Acquired 03/23/04; Cost $120,047)(c)(d)(f) 118,429 118,402 - ----------------------------------------------------------------------------------------------------------------------------------- Yorkshire Power Pass Through Asset Trust (Cayman Islands)-Series 2000-1, Pass Through Ctfs., 8.25%, 02/15/05 (Acquired 11/12/03; Cost $53,400)(c)(d)(f) 50,000 50,891 - ----------------------------------------------------------------------------------------------------------------------------------- 1,494,664 - ----------------------------------------------------------------------------------------------------------------------------------- Total Asset-Backed Securities (Cost $1,686,226) 1,720,382 =================================================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $162,436,548) $173,321,932 ___________________________________________________________________________________________________________________________________ ===================================================================================================================================
Investment Abbreviations: ADR American Depositary Receipt COP Certificates of Participation Deb. Debentures Disc. Discounted Gtd. Guaranteed Pfd. Preferred RB Revenue Bonds REGS Regulation S Sec. Secured Sr. Senior Sub. Subordinated TBA To Be Announced Unsec. Unsecured Unsub. Unsubordinated F-13 BBA-QTR-1 Notes to Schedule of Investments: (a) Non-income producing security. (b) Interest rate is redetermined quarterly. Rate shown is the rate in effect on September 30, 2004. (c) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at September 30, 2004 was $6,055,071, which represented 3.49% of the Fund's Total Investments. Unless otherwise indicated, these securities are not considered to be illiquid. (d) Security considered to be illiquid. The aggregate market value of these securities considered illiquid at September 30, 2004 was $3,687,506, which represented 2.13% of the Fund's Total Investments. (e) In accordance with procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The market value of this security at September 30, 2004 represented 2.17% of the Fund's Total Investments. See Note 1A. (f) In accordance with the procedures established by the Board of Trustees, security fair valued based on an evaluated quote provided by an independent pricing service. The aggregate market value of these securities at September 30, 2004 was $48,187,253, which represented 27.80% of the Fund's Total Investments. See Note 1A. (g) A portion of the principal balance was pledged as collateral to cover margin requirements for open futures contracts. See Note 1F and Note 2. (h) Perpetual bond with no specified maturity date. (i) Interest rate is redetermined semi-annually. Rate shown is the rate in effect on September 30, 2004. (j) Principal and interest payments are secured by bond insurance provided by one of the following companies: Financial Guaranty Insurance Co., Financial Security Assurance Inc., or MBIA Insurance Corp. (k) Zero coupon bond issued at a discount. The interest rate shown represents the yield to maturity at issue. (l) Security purchased on forward commitment basis. This security is subject to dollar roll transactions. See Note 1C. (m) Security traded on a discount basis. Unless otherwise indicated, the interest rate shown represents the discount rate at the time of purchase by the Fund. (n) Interest rate is redetermined monthly. Rate shown is the rate in effect on September 30, 2004. (o) Interest rate is redetermined annually. Rate shown is the rate in effect on September 30, 2004. See accompanying notes which are an integral part of this schedule. F-14 BBA-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. F-15 BBA-QTR-1 A. SECURITY VALUATIONS (CONTINUED) Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. DOLLAR ROLL TRANSACTIONS -- The Fund may engage in dollar roll transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to repurchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. Dollar roll transactions are considered borrowings under the 1940 Act. During the period between the sale and repurchase, the Fund will not be entitled to receive interest and principal payments on securities sold. Proceeds of the sale may be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. The difference between the selling price and the future repurchase price is recorded as realized gain (loss). At the time the Fund enters into the dollar roll, it will segregate liquid assets having a dollar value equal to the repurchase price. Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund's use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed transaction costs. F-16 BBA-QTR-1 D. 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 (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from, (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. E. 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. F. FUTURES CONTRACTS -- The Fund may purchase or sell futures contracts as a hedge against changes in market conditions. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are made or received depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. F-17 BBA-QTR-1 NOTE 2--FUTURES CONTRACTS On September 30, 2004, $300,000 principal amount of investment grade corporate securities were pledged as collateral to cover margin requirements for open futures contracts.
OPEN FUTURES CONTRACTS AT PERIOD END - ------------------------------------------------------------------------------- UNREALIZED NO. OF MONTH/ MARKET APPRECIATION CONTRACT CONTRACTS COMMITMENT VALUE (DEPRECIATION) - ------------------------------------------------------------------------------- U.S. Treasury 2 Year Notes 19 Dec-04/Long $4,013,453 $ (986) - ------------------------------------------------------------------------------- U.S. Treasury 5 Year Notes 47 Dec-04/Long 5,205,250 10,730 - ------------------------------------------------------------------------------- U.S. Treasury 30 Year Bond 2 Dec-04/Long 224,438 2,760 - ------------------------------------------------------------------------------- $9,443,141 $ 12,504 ================================================================================
NOTE 3--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $104,266,182 and $91,816,174, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS - ------------------------------------------------------------------------------- Aggregate unrealized appreciation of investment securities $16,539,507 - ------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (5,723,227) - ------------------------------------------------------------------------------- Net unrealized appreciation of investment securities $10,816,280 =============================================================================== Cost of investments for tax purposes is $162,505,652. F-18 BBA-QTR-1 AIM EUROPEAN SMALL COMPANY FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com ESC-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------- FOREIGN STOCKS & OTHER EQUITY INTEREST--93.37% AUSTRIA--1.43% Andritz A.G. (Industrial Machinery)(a) 25,360 $ 1,422,617 - ----------------------------------------------------------------------------------------------------------- BELGIUM--3.51% Artwork Systems Group N.V. (Application Software)(a) 34,800 456,138 - ----------------------------------------------------------------------------------------------------------- EVS Broadcast Equipment S.A. (Communications Equipment)(a) 25,195 1,808,984 - ----------------------------------------------------------------------------------------------------------- Option International N.V. (Communications Equipment)(a)(b)(c) 16,870 404,929 - ----------------------------------------------------------------------------------------------------------- Van De Velde N.V. (Apparel, Accessories & Luxury Goods)(a) 6,000 814,770 - ----------------------------------------------------------------------------------------------------------- 3,484,821 =========================================================================================================== BERMUDA--1.04% Central European Media Enterprises Ltd.-Class A (Broadcasting & Cable TV)(b) 36,370 1,031,453 =========================================================================================================== DENMARK--0.80% Topdanmark A.S. (Multi-Line Insurance)(a)(b) 12,360 796,530 =========================================================================================================== FINLAND--1.25% Marimekko Oyj (Apparel, Accessories & Luxury Goods)(a) 50,300 743,771 - ----------------------------------------------------------------------------------------------------------- Nokian Renkaat Oyj (Tires & Rubber)(a) 4,500 491,137 - ----------------------------------------------------------------------------------------------------------- 1,234,908 =========================================================================================================== FRANCE--11.42% Alten (IT Consulting & Other Services)(a)(b) 39,000 763,766 - ----------------------------------------------------------------------------------------------------------- Beneteau (Leisure Products)(a) 17,730 1,277,193 - ----------------------------------------------------------------------------------------------------------- Camaieu (Apparel Retail)(a) 8,727 784,219 - ----------------------------------------------------------------------------------------------------------- Eiffage S.A. (Construction & Engineering) 14,080 1,205,518 (Cost $1,033,075; Acquired 03/03/04-07/06/04)(a)(d) - ----------------------------------------------------------------------------------------------------------- Elior (Restaurants)(a) 109,200 969,947 - ----------------------------------------------------------------------------------------------------------- Eramet SLN (Diversified Metals & Mining) 6,500 517,338 - ----------------------------------------------------------------------------------------------------------- Euler Hermes S.A. (Property & Casualty Insurance)(a) 17,450 1,053,229 - ----------------------------------------------------------------------------------------------------------- Imerys S.A. (Construction Materials)(a) 6,760 451,830 - ----------------------------------------------------------------------------------------------------------- Neopost S.A. (Office Electronics)(a) 10,300 663,882 - ----------------------------------------------------------------------------------------------------------- Norbert Dentressangle (Air Freight & Logistics)(a) 10,640 525,307 - ----------------------------------------------------------------------------------------------------------- Seche Environnement (Environmental Services)(a) 7,825 522,996 - ----------------------------------------------------------------------------------------------------------- SMOBY (Leisure Products)(a) 4,200 397,116 - ----------------------------------------------------------------------------------------------------------- Spir Communication (Publishing)(c) 8,480 1,397,309 - ----------------------------------------------------------------------------------------------------------- Trigano (Leisure Products)(a) 14,700 792,753 - ----------------------------------------------------------------------------------------------------------- 11,322,403 ===========================================================================================================
F-1 ESC-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------- GERMANY--8.36% Bijou Brigitte Modische Accessoires A.G. (Apparel, Accessories B& Luxury Goods)(a) 16,090 $ 1,690,805 - ----------------------------------------------------------------------------------------------------------- DIS Deutscher Industrie Service A.G. (Employment Services)(a)(b) 25,710 741,331 - ----------------------------------------------------------------------------------------------------------- GfK A.G. (Diversified Commercial Services)(a) 13,224 370,567 - ----------------------------------------------------------------------------------------------------------- Grenkeleasing A.G. (Specialized Finance)(a) 15,810 630,058 - ----------------------------------------------------------------------------------------------------------- Puma A.G. Rudolf Dassler Sport (Footwear) (Acquired 07/26/01- 6,670 1,791,483 08/02/01; Cost $115,336)(a)(b)(d) - ----------------------------------------------------------------------------------------------------------- Rheinmetall A.G.-Pfd. (Industrial Conglomerates)(a) 20,460 858,527 - ----------------------------------------------------------------------------------------------------------- Techem A.G. (Diversified Commercial Services)(a)(b) 53,230 1,466,260 - ----------------------------------------------------------------------------------------------------------- Telegate A.G. (Diversified Commercial Services)(a)(b) 54,530 739,972 - ----------------------------------------------------------------------------------------------------------- 8,289,003 =========================================================================================================== GREECE--1.77% Athens Stock Exchange S.A. (Specialized Finance)(a)(b) 68,762 548,527 - ----------------------------------------------------------------------------------------------------------- Germanos S.A. (Computer & Electronics Retail)(a) 16,200 381,147 - ----------------------------------------------------------------------------------------------------------- Titan Cement Co. S.A. (Construction Materials)(a) 31,700 824,975 - ----------------------------------------------------------------------------------------------------------- 1,754,649 =========================================================================================================== IRELAND--5.57% Anglo Irish Bank Corp. PLC (Diversified Banks)(a) 79,040 1,451,319 - ----------------------------------------------------------------------------------------------------------- Depfa Bank PLC (Diversified Banks)(a) 56,730 775,504 - ----------------------------------------------------------------------------------------------------------- Grafton Group PLC (Trading Companies & Distributors)(b)(e) 103,390 961,747 - ----------------------------------------------------------------------------------------------------------- IFG Group PLC (Other Diversified Financial Services) 507,000 649,420 - ----------------------------------------------------------------------------------------------------------- Paddy Power PLC (Casinos & Gaming) (a) 54,000 637,930 - ----------------------------------------------------------------------------------------------------------- Qualceram Shires PLC (Home Furnishings)(a) 217,600 518,495 - ----------------------------------------------------------------------------------------------------------- Trintech Group PLC-ADR (Internet Software & Services)(b) 104,600 533,460 - ----------------------------------------------------------------------------------------------------------- 5,527,875 =========================================================================================================== ITALY--4.64% Cementir S.p.A. (Construction Materials)(a) 271,300 1,217,407 - ----------------------------------------------------------------------------------------------------------- Davide Campari-Milano S.p.A. (Distillers & Vintners)(a) 18,200 917,527 - ----------------------------------------------------------------------------------------------------------- Lottomatica S.p.A. (Casinos & Gaming)(a) 24,700 685,668 - ----------------------------------------------------------------------------------------------------------- Marzotto S.p.A. (Apparel, Accessories & Luxury Goods)(a) 47,900 696,012 - ----------------------------------------------------------------------------------------------------------- Merloni Elettrodomestici S.p.A. (Household Appliances)(a) 30,567 503,674 - ----------------------------------------------------------------------------------------------------------- SABAF S.p.A. (Household Appliances)(a) 25,800 575,924 - ----------------------------------------------------------------------------------------------------------- 4,596,212 =========================================================================================================== LUXEMBOURG--0.56% SBS Broadcasting S.A. (Broadcasting & Cable TV)(b) 16,550 557,073 =========================================================================================================== NETHERLANDS--9.91% Aalberts Industries N.V. (Industrial Conglomerates)(a) 45,634 1,664,699 - ----------------------------------------------------------------------------------------------------------- Accell Group N.V. (Leisure Products)(a) 15,200 552,873 - ----------------------------------------------------------------------------------------------------------- Airspray N.V. (Metal & Glass Containers)(a) 18,700 442,867 - -----------------------------------------------------------------------------------------------------------
F-2 ESC-QTR-1
MARKET SHARES VALUE - ------------------------------------------------------------------------------------------------------------ NETHERLANDS--(CONTINUED) Axalto Holding N.V. (Computer Storage & Peripherals)(b) 30,400 $ 648,363 - ----------------------------------------------------------------------------------------------------------- Beter Bed Holding N.V. (Specialty Stores) 51,650 793,264 - ----------------------------------------------------------------------------------------------------------- Brunel International N.V. (Employment Services)(a) 85,300 716,882 - ----------------------------------------------------------------------------------------------------------- Hunter Douglas N.V. (Home Furnishings) (a) 13,110 604,601 - ----------------------------------------------------------------------------------------------------------- Koninklijke BAM Groep N.V. (Construction & Engineering)(a) 21,200 789,169 - ----------------------------------------------------------------------------------------------------------- Nutreco Holding N.V. (Agricultural Products) (a) 28,080 881,806 - ----------------------------------------------------------------------------------------------------------- OPG Groep N.V.-Dutch Ctfs.(Health Care Distributors)(a) 10,830 588,565 - ----------------------------------------------------------------------------------------------------------- Randstad Holding N.V. (Employment Services)(a) 12,700 462,267 - ----------------------------------------------------------------------------------------------------------- Roto Smeets de Boer N.V. (Commercial Printing)(a) 15,300 628,845 - ----------------------------------------------------------------------------------------------------------- Stork N.V. (Industrial Machinery)(a) 17,730 425,460 - ----------------------------------------------------------------------------------------------------------- Univar N.V. (Trading Companies & Distributors) 34,000 631,511 - ----------------------------------------------------------------------------------------------------------- 9,831,172 =========================================================================================================== NORWAY--5.62% Aktiv Kapital A.S.A. (Specialized Finance)(a) 91,595 1,424,026 - ----------------------------------------------------------------------------------------------------------- Ekornes A.S.A. (Home Furnishings)(a) 46,930 1,008,198 - ----------------------------------------------------------------------------------------------------------- Expert A.S.A. (Computer & Electronics Retail)(a) 107,140 809,632 - ----------------------------------------------------------------------------------------------------------- Smedvig A.S.A.-Class A (Oil & Gas Drilling)(a) 57,790 759,370 - ----------------------------------------------------------------------------------------------------------- SuperOffice A.S.A. (Application Software)(a) 249,600 879,344 - ----------------------------------------------------------------------------------------------------------- TGS Nopec Geophysical Co. A.S.A. (Oil & Gas Equipment & Services)(a)(b) 35,740 695,197 - ----------------------------------------------------------------------------------------------------------- 5,575,767 =========================================================================================================== PORTUGAL--0.72% SonaeCom, SGPS, S.A. (Wireless Telecommunication Services)(a)(b) 176,000 711,614 =========================================================================================================== SPAIN--2.71% Corporacion Mapfre S.A. (Multi-Line Insurance)(a) 45,170 531,958 - ----------------------------------------------------------------------------------------------------------- Enagas (Gas Utilities) (Cost $596,287; Acquired 07/20/04-07/21/04)(a)(d) 52,000 624,836 - ----------------------------------------------------------------------------------------------------------- Gestevision Telecinco S.A. (Broadcasting & Cable TV) 27,100 490,695 (Cost $332,856; Acquired 06/23/04)(b)(d) - ----------------------------------------------------------------------------------------------------------- Miquel y Costas & Miquel, S.A. (Paper Products)(a) 18,798 1,042,757 - ----------------------------------------------------------------------------------------------------------- 2,690,246 =========================================================================================================== SWEDEN--0.55% Elanders A.B.-Class B (Publishing)(a) 47,800 545,559 =========================================================================================================== SWITZERLAND--9.85% Amazys Holding A.G. (Diversified Commercial Services)(a) 43,600 2,053,436 - ----------------------------------------------------------------------------------------------------------- Geberit A.G. (Building Products)(a) 939 733,036 - ----------------------------------------------------------------------------------------------------------- Leica Geosystems A.G. (Electronic Equipment Manufacturers)(a)(b) 6,000 1,325,352 - ----------------------------------------------------------------------------------------------------------- Mobilezone Holding A.G. (Industrial Machinery)(b) 400,000 1,368,366 - ----------------------------------------------------------------------------------------------------------- Quadrant A.G. (Specialty Chemicals)(b) 10,500 733,727 - ----------------------------------------------------------------------------------------------------------- Rieter Holding A.G. (Auto Parts & Equipment)(a) 2,400 653,033 - -----------------------------------------------------------------------------------------------------------
F-3 ESC-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------- SWITZERLAND (CONTINUED) SAIA-Burgess Electronics A.G. (Electronic Equipment Manufacturers)(a) 1,710 $ 996,924 - ----------------------------------------------------------------------------------------------------------- Saurer A.G. (Industrial Machinery)(a)(b) 22,000 1,203,953 - ----------------------------------------------------------------------------------------------------------- Sika A.G. (Specialty Chemicals)(a) 1,200 695,975 - ----------------------------------------------------------------------------------------------------------- 9,763,802 =========================================================================================================== UNITED KINGDOM--23.66% Admiral Group PLC (Property & Casualty Insurance) (Cost $598,494; Acquired 07/29/04-07/29/04(b)(d) 100,100 522,407 - ----------------------------------------------------------------------------------------------------------- Alba PLC (Consumer Electronics)(a) 35,080 484,710 - ----------------------------------------------------------------------------------------------------------- Albemarle & Bond Holdings PLC (Consumer Finance)(a) 234,800 490,831 - ----------------------------------------------------------------------------------------------------------- Alexon Group PLC (Apparel, Accessories & Luxury Goods)(a) 49,000 295,284 - ----------------------------------------------------------------------------------------------------------- Balfour Beatty PLC (Construction & Engineering)(a) 192,730 973,110 - ----------------------------------------------------------------------------------------------------------- Belhaven Group PLC (The) (Brewers)(a) 78,010 586,655 - ----------------------------------------------------------------------------------------------------------- Cattles PLC (Consumer Finance)(a) 81,080 485,617 - ----------------------------------------------------------------------------------------------------------- Dawson Holdings PLC (Distributors) 204,130 554,856 - ----------------------------------------------------------------------------------------------------------- Domino Printing Sciences PLC (Industrial Machinery)(a) 160,610 643,021 - ----------------------------------------------------------------------------------------------------------- Enterprise Inns PLC (Restaurants)(a) 70,820 732,684 - ----------------------------------------------------------------------------------------------------------- Findel PLC (Catalog Retail)(a) 94,300 700,769 - ----------------------------------------------------------------------------------------------------------- Haynes Publishing Group PLC (Publishing)(a) 28,500 181,357 - ----------------------------------------------------------------------------------------------------------- Homeserve PLC (Diversified Commercial Services) 125,100 1,428,170 - ----------------------------------------------------------------------------------------------------------- Hornby PLC (Leisure Products) 162,900 749,785 - ----------------------------------------------------------------------------------------------------------- Inchcape PLC (Distributors)(a) 16,870 476,449 - ----------------------------------------------------------------------------------------------------------- Intertek Group PLC (Diversified Commercial Services)(a) 85,000 924,408 - ----------------------------------------------------------------------------------------------------------- Johnston Press PLC (Publishing)(a) 64,210 647,812 - ----------------------------------------------------------------------------------------------------------- Kensington Group PLC (Thrifts & Mortgage Finance)(a) 69,190 502,589 - ----------------------------------------------------------------------------------------------------------- Kier Group PLC (Construction & Engineering)(a) 48,781 642,798 - ----------------------------------------------------------------------------------------------------------- Lambert Howarth Group PLC (Footwear)(a) 102,350 502,980 - ----------------------------------------------------------------------------------------------------------- Mayborn Group PLC (Household Products)(a) 135,400 629,025 - ----------------------------------------------------------------------------------------------------------- McBride PLC (Household Products)(a) 478,030 1,282,343 - ----------------------------------------------------------------------------------------------------------- nCipher PLC (Internet Software & Services)(a)(b) 139,000 448,811 - ----------------------------------------------------------------------------------------------------------- NDS Group PLC-ADR (Application Software)(b) 28,900 780,300 - ----------------------------------------------------------------------------------------------------------- PHS Group PLC (Diversified Commercial Services)(a) 442,770 608,156 - ----------------------------------------------------------------------------------------------------------- Punch Taverns PLC (Restaurants)(a) 94,400 863,758 - ----------------------------------------------------------------------------------------------------------- Savills PLC (Other Diversified Financial Services)(a) 143,545 1,112,811 - ----------------------------------------------------------------------------------------------------------- SCi Entertainment Group PLC (Home Entertainment Software)(a)(b) 219,000 465,461 - ----------------------------------------------------------------------------------------------------------- ScS Upholstery PLC (Specialty Stores) 81,400 442,515 - ----------------------------------------------------------------------------------------------------------- Sportingbet PLC (Casinos & Gaming)(b) 648,230 1,128,376 - ----------------------------------------------------------------------------------------------------------- T&F Informa PLC (Publishing)(a) 142,580 959,375 - ----------------------------------------------------------------------------------------------------------- Telecom plus PLC (Integrated Telecommunication Services)(a) 103,690 536,327 - ----------------------------------------------------------------------------------------------------------- Warner Chilcott PLC (Pharmaceuticals) 58,920 818,918 - ----------------------------------------------------------------------------------------------------------- WS Atkins PLC (Diversified Commercial Services)(a) 73,295 860,909 - ----------------------------------------------------------------------------------------------------------- 23,463,377 ===========================================================================================================
F-4 ESC-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------- Total Foreign Stocks & Other Equity Interest (Cost $71,945,318) $92,599,081 =========================================================================================================== MONEY MARKET FUNDS--6.31% Liquid Assets Portfolio-Institutional Class(f) 3,127,725 3,127,725 - ----------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(f) 3,127,725 3,127,725 =========================================================================================================== Total Money Market Funds (Cost $6,255,450) 6,255,450 =========================================================================================================== TOTAL INVESTMENTS--99.68% (excluding investments purchased with cash collateral from securities loaned) (Cost $78,200,768) 98,854,531 =========================================================================================================== INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--0.32% STIC Prime Portfolio-Institutional Class(f)(g) 315,677 315,677 - ----------------------------------------------------------------------------------------------------------- Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $315,677) 315,677 =========================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $78,516,445) $99,170,208 ___________________________________________________________________________________________________________ ===========================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Ctfs. Certificates Pfd. Preferred Notes to Schedule of Investments (a) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate market value of this security at September 30, 2004 was $75,860,028, which represented 76.49% of the Fund's Total Investments. See Note 1A. (b) Non-income producing security. (c) All or a portion of this security has been pledged as collateral for security lending transactions at September 30, 2004. (d) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at September 30, 2004 was $4,634,939, which represented 4.67% of the Fund's Total Investments. Unless otherwise indicated, these securities are considered to be illiquid. (e) Each unit represents one ordinary share, one ordinary C share, and nine ordinary A shares. (f) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (g) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. See accompanying notes which are an integral part of this schedule. F-5 ESC-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Companies are listed in the Schedule of Investments based on the country in which they are organized. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. F-6 ESC-QTR-1 B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. 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 (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from, (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. 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. FUTURES CONTRACTS -- The Fund may purchase or sell futures contracts as a hedge against changes in market conditions. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are made or received depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. F-7 ESC-QTR-1 NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission ("SEC"), to invest daily available cash balances and cash collateral from securities lending transactions in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
UNREALIZED MARKET VALUE PURCHASES PROCEEDS FROM APPRECIATION MARKET VALUE DIVIDEND REALIZED FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME GAIN (LOSS) - --------------------------------------------------------------------------------------------------------------------------------- Liquid Asset Portfolio-- Institutional Class $1,498,588 $20,366,016 $(18,736,879) $ -- $3,127,725 $15,390 $ -- - --------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-- Institutional Class 1,498,588 20,366,016 (18,736,879) -- 3,127,725 15,047 -- - --------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL $2,997,176 $40,732,032 $(37,473,758) $ -- $6,255,450 $30,437 $ -- =================================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
UNREALIZED MARKET VALUE PURCHASES PROCEEDS FROM APPRECIATION MARKET VALUE DIVIDEND REALIZED FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME* GAIN (LOSS) - --------------------------------------------------------------------------------------------------------------------------------- Liquid Asset Portfolio-- Institutional Class $ 117,600 $13,052,504 $(13,170,104) $ -- $ -- $15,057 $ -- - --------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-- Institutional Class -- 1,280,854 (965,177) -- 315,677 450 -- - --------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL $ 117,600 $14,333,358 $(14,135,281) $ -- $ 315,677 $15,507 $ -- ================================================================================================================================= TOTAL $3,114,776 $55,065,390 $(51,609,039) $ -- $6,571,127 $45,944 $ -- _________________________________________________________________________________________________________________________________ =================================================================================================================================
* Dividend income is net of income rebate paid to security lending counterparties. NOTE 3--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to a loss on the collateral invested. At September 30, 2004, securities with an aggregate value of $299,805 were on loan to brokers. The loans were secured by cash collateral of $315,677 received by the Fund and subsequently invested in an affiliated money market fund. For the nine months ended September 30, 2004, the Fund received dividends on cash collateral net of income rebate paid to counterparties of $15,507 for securities lending transactions. F-8 ESC-QTR-1 NOTE 4--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $80,579,166 and $53,270,599, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $20,997,550 - ----------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (387,339) - ----------------------------------------------------------------------------- Net unrealized appreciation of investment securities $20,610,211 =============================================================================
Cost of investments for tax purposes is $78,559,997. F-9 ESC-QTR-1 AIM GLOBAL VALUE FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com GLV-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- FOREIGN STOCKS & OTHER EQUITY INTERESTS--47.06% AUSTRALIA--5.58% BHP Billiton Ltd. (Diversified Metals & Mining)(a) 55,000 $ 571,882 - ----------------------------------------------------------------------------------------------------------------------------------- BHP Billiton Ltd.-ADR (Diversified Metals & Mining) 15,000 311,250 - ----------------------------------------------------------------------------------------------------------------------------------- Excel Coal Ttd. (Diversified Metals & Mining) 19,689 55,173 - ----------------------------------------------------------------------------------------------------------------------------------- Macarthur Coal Ltd. (Diversified Metals & Mining)(a) 577,100 1,461,747 - ----------------------------------------------------------------------------------------------------------------------------------- 2,400,052 =================================================================================================================================== CANADA--23.07% Alcan Inc. (Aluminum) 8,800 422,071 - ----------------------------------------------------------------------------------------------------------------------------------- Algoma Steel Inc. (Steel)(b) 46,200 802,109 - ----------------------------------------------------------------------------------------------------------------------------------- Barrick Gold Corp. (Gold) 41,000 862,640 - ----------------------------------------------------------------------------------------------------------------------------------- Bema Gold Corp. (Gold)(b) 37,900 120,785 - ----------------------------------------------------------------------------------------------------------------------------------- BMTC Group, Inc.-Class A (Specialty Stores) 131,900 1,118,860 - ----------------------------------------------------------------------------------------------------------------------------------- E-L Financial Corp. Ltd. (Multi-Line Insurance) 2,512 716,918 - ----------------------------------------------------------------------------------------------------------------------------------- Energy Savings Income Fund-Units (Gas Utilities) 25,800 310,893 - ----------------------------------------------------------------------------------------------------------------------------------- Fording Canadian Coal Trust (Diversified Metals & Mining) 22,800 1,275,202 - ----------------------------------------------------------------------------------------------------------------------------------- Gold Reserve Inc. (Diversified Metals & Mining)(b) 53,400 248,500 - ----------------------------------------------------------------------------------------------------------------------------------- Kinross Gold Corp. (Gold)(b) 33,000 224,203 - ----------------------------------------------------------------------------------------------------------------------------------- Metalex Ventures Ltd. (Precious Metals & Mining)(b) 200,000 209,291 - ----------------------------------------------------------------------------------------------------------------------------------- Noranda, Inc. (Diversified Metals & Mining) 11,500 200,571 - ----------------------------------------------------------------------------------------------------------------------------------- Novicourt Inc. (Diversified Metals & Mining) 64,500 94,086 - ----------------------------------------------------------------------------------------------------------------------------------- Penn West Petroleum Ltd. (Oil & Gas Exploration & Production) 3,400 188,544 - ----------------------------------------------------------------------------------------------------------------------------------- Placer Dome Inc. (Gold) 21,800 430,489 - ----------------------------------------------------------------------------------------------------------------------------------- Rothmans, Inc. (Tobacco) 13,400 372,234 - ----------------------------------------------------------------------------------------------------------------------------------- Stornoway Diamond Corp. (Precious Metal & Minerals)(b) 260,000 391,628 - ----------------------------------------------------------------------------------------------------------------------------------- Teck Cominco Ltd.-Class B (Diversified Metals & Mining) 19,700 424,954 - ----------------------------------------------------------------------------------------------------------------------------------- TimberWest Forest Corp.-Units (Forest Products)(c) 44,200 490,566 - ----------------------------------------------------------------------------------------------------------------------------------- United Corporations Ltd (Asset Management & Custody Banks). 10,000 332,963 - ----------------------------------------------------------------------------------------------------------------------------------- Westaim Corp. (The) (Industrial Conglomerates) (Acquired 06/02/03-08/19/04; Cost 632,188)(b)(d) 275,700 681,928 - ----------------------------------------------------------------------------------------------------------------------------------- 9,919,435 =================================================================================================================================== FINLAND--1.34% Nokia Oyj-ADR (Communications Equipment) 30,300 415,716 - ----------------------------------------------------------------------------------------------------------------------------------- UPM-Kymmene Oyj (Paper Products)(a) 8,400 160,667 - ----------------------------------------------------------------------------------------------------------------------------------- 576,383 ===================================================================================================================================
F-1 GLV-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- GERMANY--0.55% Bayerische Motoren Werke A.G. (Automobile Manufacturers)(a) 5,700 $ 234,864 =================================================================================================================================== JAPAN--0.46% Honda Motor Co., Ltd. (Automobile Manufacturers)(a) 4,100 199,215 =================================================================================================================================== MEXICO--0.45% Grupo Aeroportuario del Sureste S.A. de C.V.-ADR (Airport Services) 8,700 192,270 =================================================================================================================================== NETHERLANDS--1.08% Akzo Nobel N.V. (Diversified Chemicals)(a) 5,900 209,016 - ----------------------------------------------------------------------------------------------------------------------------------- TPG N.V. (Air Freight & Logistics)(a) 10,500 257,152 - ----------------------------------------------------------------------------------------------------------------------------------- 466,168 =================================================================================================================================== PERU--0.88% Compania de Minas Buenaventura S.A.A.-ADR (Precious Metals & Minerals) 16,000 380,000 =================================================================================================================================== SWITZERLAND--0.62% Nestle S.A. (Packaged Foods & Meats)(a) 1,150 264,715 =================================================================================================================================== TAIWAN--0.42% President Chain Store Corp. (Food Retail)(a) 122,590 180,165 =================================================================================================================================== UNITED KINGDOM--12.61% Diageo PLC (Distillers & Vintners)(a) 28,600 357,623 - ----------------------------------------------------------------------------------------------------------------------------------- GlaxoSmithKline PLC-ADR (Pharmaceuticals) 12,800 559,744 - ----------------------------------------------------------------------------------------------------------------------------------- HSBC Holdings PLC (Diversified Banks)(a) 15,000 238,556 - ----------------------------------------------------------------------------------------------------------------------------------- HSBC Holdings PLC (Diversified Banks)(a) 20,800 332,034 - ----------------------------------------------------------------------------------------------------------------------------------- Man Group PLC (Asset Management & Custody Banks)(a) 15,260 329,031 - ----------------------------------------------------------------------------------------------------------------------------------- Pan-Ocean Energy Corp. Ltd. (Oil & Gas Exploration & Production)(b) 139,500 2,383,245 - ----------------------------------------------------------------------------------------------------------------------------------- Randgold Resources Ltd.-ADR (Gold)(b) 32,700 322,749 - ----------------------------------------------------------------------------------------------------------------------------------- Severn Trent PLC (Water Utilities)(a) 27,110 431,798 - ----------------------------------------------------------------------------------------------------------------------------------- Standard Chartered PLC (Diversified Banks)(a) 13,000 223,555 - ----------------------------------------------------------------------------------------------------------------------------------- Unilever PLC (Packaged Foods & Meats)(a) 30,000 244,855 - ----------------------------------------------------------------------------------------------------------------------------------- 5,423,190 =================================================================================================================================== Total Foreign Stocks & Other Equity Interests (Cost $16,888,061) 20,236,457 =================================================================================================================================== DOMESTIC COMMON STOCKS & OTHER EQUITY INTERESTS--23.64% APPAREL, ACCESSORIES & LUXURY GOODS--0.96% Jones Apparel Group, Inc. 11,500 411,700 ===================================================================================================================================
F-2 GLV-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- COMPUTER STORAGE & PERIPHERALS--0.42% ActivCard Corp.(b) 29,700 $ 182,358 =================================================================================================================================== DIVERSIFIED BANKS--0.49% Wells Fargo & Co. 3,500 208,705 =================================================================================================================================== DIVERSIFIED METALS & MINING--3.36% Freeport-McMoRan Copper & Gold, Inc.-Class B 25,400 1,028,700 - ----------------------------------------------------------------------------------------------------------------------------------- Phelps Dodge Corp. 4,500 414,135 - ----------------------------------------------------------------------------------------------------------------------------------- 1,442,835 =================================================================================================================================== GOLD--0.75% Newmont Mining Corp. 7,100 323,263 =================================================================================================================================== INTEGRATED OIL & GAS--0.65% Murphy Oil Corp. 3,200 277,664 =================================================================================================================================== INTEGRATED TELECOMMUNICATION SERVICES--3.02% ALLTEL Corp. 11,200 614,992 - ----------------------------------------------------------------------------------------------------------------------------------- CenturyTel, Inc. 20,000 684,800 - ----------------------------------------------------------------------------------------------------------------------------------- 1,299,792 =================================================================================================================================== INVESTMENT BANKING & BROKERAGE--0.44% Merrill Lynch & Co., Inc. 3,800 188,936 =================================================================================================================================== MOVIES & ENTERTAINMENT--0.60% Walt Disney Co. (The) 11,500 259,325 =================================================================================================================================== OIL & GAS EXPLORATION & PRODUCTION--1.19% Devon Energy Corp. 7,200 511,272 =================================================================================================================================== PACKAGED FOODS & MEATS--2.19% Kraft Foods Inc.-Class A 11,600 367,952 - ----------------------------------------------------------------------------------------------------------------------------------- Lancaster Colony Corp. 13,600 573,444 - ----------------------------------------------------------------------------------------------------------------------------------- 941,396 =================================================================================================================================== PHARMACEUTICALS--1.83% Bristol-Myers Squibb Co. 4,400 104,148 - ----------------------------------------------------------------------------------------------------------------------------------- Merck & Co. Inc. 6,400 211,200 - ----------------------------------------------------------------------------------------------------------------------------------- Schering-Plough Corp. 24,700 470,782 - ----------------------------------------------------------------------------------------------------------------------------------- 786,130 ===================================================================================================================================
F-3 GLV-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- RAILROADS--0.84% Union Pacific Corp. 6,200 $ 363,320 =================================================================================================================================== REAL ESTATE--0.29% Rayonier, Inc. 2,760 124,862 =================================================================================================================================== REAL ESTATE MANAGEMENT & DEVELOPMENT--0.88% Tejon Ranch Co.(b) 10,000 376,500 =================================================================================================================================== REGIONAL BANKS--0.97% Commerce Bancshares, Inc. 4,300 206,787 - ----------------------------------------------------------------------------------------------------------------------------------- North Fork Bancorp., Inc. 4,700 208,915 - ----------------------------------------------------------------------------------------------------------------------------------- 415,702 =================================================================================================================================== SYSTEMS SOFTWARE--1.90% Microsoft Corp. 29,600 818,440 =================================================================================================================================== THRIFTS & MORTGAGE FINANCE--2.86% Brookline Bancorp, Inc. 13,400 209,978 - ----------------------------------------------------------------------------------------------------------------------------------- First Financial Holdings, Inc. 6,800 212,568 - ----------------------------------------------------------------------------------------------------------------------------------- Washington Mutual, Inc. 14,800 578,384 - ----------------------------------------------------------------------------------------------------------------------------------- WSFS Financial Corp. 4,600 230,000 - ----------------------------------------------------------------------------------------------------------------------------------- 1,230,930 =================================================================================================================================== Total Domestic Common Stocks & Other Equity Interests (Cost $9,568,452) 10,163,130 ===================================================================================================================================
PRINCIPAL AMOUNT - ----------------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY SECURITIES--6.94% U.S. TREASURY NOTES--6.94% - ----------------------------------------------------------------------------------------------------------------------------------- 1.63%, 04/30/05 to 09/30/05(e) $ 1,000,000 995,898 - ----------------------------------------------------------------------------------------------------------------------------------- 1.25%, 05/31/05(e) 500,000 497,305 - ----------------------------------------------------------------------------------------------------------------------------------- 1.13%, 06/30/05(e) 500,000 496,445 - ----------------------------------------------------------------------------------------------------------------------------------- 1.50%, 07/31/05(e) 500,000 497,383 - ----------------------------------------------------------------------------------------------------------------------------------- 2.00%, 08/31/05(e) 500,000 499,180 - ----------------------------------------------------------------------------------------------------------------------------------- 2,986,211 =================================================================================================================================== Total U.S. Treasury Securities (Cost $3,006,793) 2,986,211 ===================================================================================================================================
F-4 GLV-QTR-1
PAR MATURITY (000) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--0.41% Barclays Capital Inc.-New York Branch (United Kingdom) 1.90%, 10/01/04 (Cost $177,954)(f) 10/01/04 $ 178 $ 177,954 ===================================================================================================================================
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS--21.95% Liquid Assets Portfolio-Institutional Class(g) 4,718,451 4,718,451 - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(g) 4,718,451 4,718,451 =================================================================================================================================== Total Money Market Funds (Cost $9,436,902) 9,436,902 =================================================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $39,078,162) $ 43,000,654 ___________________________________________________________________________________________________________________________________ ===================================================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate market value of these securities at September 30, 2004 was $5,696,875, which represented 13.25% of the Fund's Total Investments. See Note 1A. (b) Non-income producing security. (c) Each unit represents one common share, one hundred preferred shares and one subordinate note receipt. (d) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these security. The market value of this security at September 30, 2004, represented 1.59% of the Fund's Total Investments. This security is not considered to be illiquid. (e) In accordance with the procedures established by the Board of Trustees, security fair valued based on an evaluated quote provided by an independent pricing service. The aggregate market value of these securities at September 30, 2004 was $2,986,211, which represented 6.94% of the Fund's Total Investments. See Note 1A. (f) Joint repurchase agreement entered into September 30, 2004 with an aggregate maturing value of $686,791,258. Collateralized by $691,765,000 U.S. Government obligations, 1.98% to 6.00% due 08/04/06 to 04/26/24 with an aggregate market value at September 30, 2004 of $700,491,207. The amount to be received upon repurchase by the Fund is $177,963. (g) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 1A. See accompanying notes which are an integral part of this schedule. F-5 GLV-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Companies are listed in the Schedule of Investments based on the country in which they are organized. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. F-6 GLV-QTR-1 B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. REPURCHASE AGREEMENTS -- The Fund may enter into repurchase agreements. 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. Eligible securities for collateral are U.S. Government Securities, U.S. Government Agency Securities and/or Investment Grade Debt Securities. Collateral consisting of U.S. Government Securities and U.S. Government Agency Securities is marked to market daily to ensure its market value is at least 102% of the sales price of the repurchase agreement. Collateral consisting of Investment Grade Debt Securities is marked to market daily to ensure its market value is at least 105% of the sales price of the repurchase agreement. The investments in some repurchase agreements, pursuant to an exemptive order from the Securities and Exchange Commission ("SEC"), are through participation with other mutual funds, private accounts and certain non-registered investment companies managed by the investment advisor or its affiliates ("Joint repurchase agreements"). If the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement, the Fund might incur expenses in enforcing its rights, and could experience losses, including a decline in the value of the underlying security and loss of income. D. 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 (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from, (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. E. 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. F-7 GLV-QTR-1 NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the SEC and approved procedures by the Board of Trustees, to invest daily available cash balances in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The table below shows the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
MARKET PROCEEDS UNREALIZED MARKET REALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND GAIN FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME (LOSS) - ----------------------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio- Institutional Class $ 178,736 $ 12,575,080 $ (8,035,365) $ -- $4,718,451 $ 19,793 $ -- - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio- Institutional Class 178,736 12,575,080 (8,035,365) -- 4,718,451 19,187 -- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL $ 357,472 $ 25,150,160 $(16,070,730) $ -- $9,436,902 $ 38,980 $ -- ===================================================================================================================================
NOTE 3--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $44,872,583 and $32,675,423, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS - ------------------------------------------------------------------------------- Aggregate unrealized appreciation of investment securities $ 4,174,769 - ------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (347,956) - ------------------------------------------------------------------------------- Net unrealized appreciation of investment securities $ 3,826,813 =============================================================================== Cost of investments for tax purposes is $39,174,841. F-8 GLV-QTR-1 AIM INTERNATIONAL EMERGING GROWTH FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com IEG-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------- FOREIGN STOCKS & OTHER EQUITY INTERESTS--96.40% AUSTRALIA--2.29% CSL Ltd. (Biotechnology)(a) 71,900 $ 1,492,123 - -------------------------------------------------------------------------------------------------------------------------- Ramsay Health Care Ltd. (Health Care Facilities)(a) 316,100 1,434,402 - -------------------------------------------------------------------------------------------------------------------------- Toll Holdings Ltd. (Trucking)(a) 156,100 1,322,137 - -------------------------------------------------------------------------------------------------------------------------- 4,248,662 ========================================================================================================================== AUSTRIA--1.03% Andritz A.G. (Industrial Machinery)(a) 34,200 1,918,514 ========================================================================================================================== BERMUDA--2.15% Central European Media Enterprises Ltd.-Class A (Broadcasting & Cable TV)(b) 75,950 2,153,942 - -------------------------------------------------------------------------------------------------------------------------- Giordano International Ltd. (Apparel Retail)(a) 1,272,000 701,700 - -------------------------------------------------------------------------------------------------------------------------- Texwinca Holdings Ltd. (Textiles)(a) 1,346,000 1,138,089 - -------------------------------------------------------------------------------------------------------------------------- 3,993,731 ========================================================================================================================== CANADA--17.16% Aastra Technologies Ltd. (Communications Equipment)(b) 69,000 935,389 - -------------------------------------------------------------------------------------------------------------------------- AKITA Drilling Ltd.-Class A (Oil & Gas Drilling) 53,020 1,052,918 - -------------------------------------------------------------------------------------------------------------------------- Badger Income Fund (Construction & Engineering) 237,340 2,267,280 - -------------------------------------------------------------------------------------------------------------------------- BMTC Group, Inc.-Class A (Specialty Stores) 85,164 722,415 - -------------------------------------------------------------------------------------------------------------------------- Calian Technology Ltd. (Data Processing & Outsourced Services) 123,900 1,018,585 - -------------------------------------------------------------------------------------------------------------------------- Ceramic Protection Corp. (Aerospace & Defense)(b) 108,000 1,305,692 - -------------------------------------------------------------------------------------------------------------------------- Crew Energy Inc. (Oil & Gas Exploration & Production)(b) 209,300 1,120,006 - -------------------------------------------------------------------------------------------------------------------------- CryptoLogic Inc. (Internet Software & Services) 179,590 2,783,403 - -------------------------------------------------------------------------------------------------------------------------- Exco Technology Ltd. (Industrial Machinery) 150,000 874,029 - -------------------------------------------------------------------------------------------------------------------------- Extendicare Inc.-Class A (Health Care Facilities)(b) 114,940 1,481,627 - -------------------------------------------------------------------------------------------------------------------------- FirstService Corp. (Diversified Commercial Services)(b) 35,000 835,183 - -------------------------------------------------------------------------------------------------------------------------- Great Canadian Gaming Corp. (Casinos & Gaming)(b) 106,040 2,685,887 - -------------------------------------------------------------------------------------------------------------------------- Leitch Technology Corp. (Electric Equipment Manufacturers)(b) 137,100 1,032,543 - -------------------------------------------------------------------------------------------------------------------------- Lions Gate Entertainment Corp. (Movies & Entertainment)(b) 169,280 1,472,736 - -------------------------------------------------------------------------------------------------------------------------- Reitmans (Canada) Ltd.-Class A (Apparel Retail) 98,000 1,450,499 - -------------------------------------------------------------------------------------------------------------------------- StarPoint Energy Ltd. (Oil & Gas Exploration & Production)(b) 341,800 1,341,295 - -------------------------------------------------------------------------------------------------------------------------- Telesystem International Wireless Inc. (Wireless Telecommunication Services)(b) 194,690 1,859,850 - -------------------------------------------------------------------------------------------------------------------------- Total Energy Services Ltd. (Oil & Gas Equipment & Services)(b) 295,490 1,363,368 - -------------------------------------------------------------------------------------------------------------------------- Transat A.T. Inc. (Airlines)(b) 67,150 1,149,865 - -------------------------------------------------------------------------------------------------------------------------- Trican Well Service Ltd. (Oil & Gas Equipment & Services)(b) 107,780 4,101,348 - -------------------------------------------------------------------------------------------------------------------------- Wajax Ltd. (Industrial Machinery) 123,170 1,020,395 - -------------------------------------------------------------------------------------------------------------------------- 31,874,313 ==========================================================================================================================
F-1 IEG-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------- CAYMAN ISLANDS--3.08% China Mengniu Dairy Co. Ltd. (Packaged Foods & Meats)(b) 1,371,000 $ 1,063,786 - -------------------------------------------------------------------------------------------------------------------------- Chitaly Holdings Ltd. (Home Furnishings) (Acquired 08/03/04-08/04/04; Cost $708,276)(c)(d)(e) 1,184,000 728,877 - -------------------------------------------------------------------------------------------------------------------------- Global Bio-chem Technology Group Co. Ltd.-Wts., expiring 05/31/07 (Biotechnology)(f) 114,250 7,619 - -------------------------------------------------------------------------------------------------------------------------- Golden Meditech Co. Ltd. (Health Care Equipment)(a) 2,744,000 578,006 - -------------------------------------------------------------------------------------------------------------------------- Luen Thai Holdings Ltd. (Distributors) (Acquired 07/09/04 - -09/16/04; Cost $762,031)(b)(e) 1,831,000 904,087 - -------------------------------------------------------------------------------------------------------------------------- Shanda Interactive Entertainment Ltd.-ADR (Leisure Products)(b) 59,950 1,438,800 - -------------------------------------------------------------------------------------------------------------------------- Solomon Systech International Ltd. (Semiconductors)(b) 3,862,000 1,002,995 - -------------------------------------------------------------------------------------------------------------------------- 5,724,170 ========================================================================================================================== CHINA--1.18% Tong Ren Tang Technologies Co. Ltd.-Class H (Pharmaceuticals) 450,000 981,121 - -------------------------------------------------------------------------------------------------------------------------- Weiqiao Textile Co. Ltd.-Class H (Textiles) (Acquired 09/19/03-06/02/04; Cost $960,058)(a)(e) 742,000 1,203,383 - -------------------------------------------------------------------------------------------------------------------------- 2,184,504 ========================================================================================================================== DENMARK--0.94% Topdanmark A.S. (Multi-Line Insurance)(a)(b) 27,043 1,742,764 - -------------------------------------------------------------------------------------------------------------------------- FINLAND--0.60% Nokian Renkaat Oyj (Tires & Rubber)(a) 10,145 1,107,240 - -------------------------------------------------------------------------------------------------------------------------- FRANCE--6.41% Camaieu (Apparel Retail)(a) 23,715 2,131,059 - -------------------------------------------------------------------------------------------------------------------------- Eiffage S.A. (Construction & Engineering) (Acquired 03/26/04-04/27/04; Cost $2,020,290)(a)(e) 27,870 2,386,207 - -------------------------------------------------------------------------------------------------------------------------- Elior (Restaurants)(a) 170,400 1,513,544 - -------------------------------------------------------------------------------------------------------------------------- Eramet SLN (Diversified Metals & Mining) 13,000 1,034,675 - -------------------------------------------------------------------------------------------------------------------------- Euler Hermes S.A. (Property & Casualty Insurance)(a) 38,020 2,294,772 - -------------------------------------------------------------------------------------------------------------------------- Seche Environnement (Environmental Services)(a) 15,331 1,024,671 - -------------------------------------------------------------------------------------------------------------------------- Trigano (Leisure Products)(a) 28,175 1,519,444 - -------------------------------------------------------------------------------------------------------------------------- 11,904,372 ========================================================================================================================== GERMANY--6.08% Bijou Brigitte Modische Accessoires A.G. (Apparel, Accessories & Luxury Goods)(a) 33,730 3,544,490 - -------------------------------------------------------------------------------------------------------------------------- Puma A.G. Rudolf Dassler Sport (Footwear) (Acquired 01/30/02-02/13/04; Cost $933,270)(a)(e) 11,819 3,174,444 - -------------------------------------------------------------------------------------------------------------------------- Rheinmetall A.G.-Pfd. (Industrial Conglomerates)(a) 38,361 1,609,675 - -------------------------------------------------------------------------------------------------------------------------- Techem A.G. (Diversified Commercial Services)(a)(b) 107,480 2,960,616 - -------------------------------------------------------------------------------------------------------------------------- 11,289,225 ========================================================================================================================== GREECE--1.82% Germanos S.A. (Computer & Electronics Retail)(a) 59,121 1,390,975 - -------------------------------------------------------------------------------------------------------------------------- Titan Cement Co. (Construction Materials)(a) 76,400 1,988,268 - -------------------------------------------------------------------------------------------------------------------------- 3,379,243 ==========================================================================================================================
F-2 IEG-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------- HONG KONG--2.05% Dah Sing Banking Group Ltd. (Regional Banks)(b) 369,840 $ 761,290 - -------------------------------------------------------------------------------------------------------------------------- Dah Sing Financial Group (Diversified Banks)(a) 95,200 680,727 - -------------------------------------------------------------------------------------------------------------------------- Techtronic Industries Co. Ltd. (Household Appliances) (Acquired 04/24/02-08/19/04; Cost $639,888)(a)(e) 600,000 1,180,850 - -------------------------------------------------------------------------------------------------------------------------- Wing Hang Bank Ltd. (Diversified Banks)(a) 182,000 1,191,477 - -------------------------------------------------------------------------------------------------------------------------- 3,814,344 ========================================================================================================================== INDIA--2.63% Bharat Forge Ltd. (Auto Parts & Equipment) 52,290 922,062 - -------------------------------------------------------------------------------------------------------------------------- Bharat Forge Ltd.-Wts., expiring 08/06/06 (Auto Parts & Equipment) (Acquired 07/20/04; Cost $0)(c)(d)(e) 1,245 0 - -------------------------------------------------------------------------------------------------------------------------- HDFC Bank Ltd. (Diversified Banks)(a) 108,000 952,772 - -------------------------------------------------------------------------------------------------------------------------- Housing Development Finance Corp. Ltd. (Thrifts & Mortgage Finance)(a) 78,000 1,035,472 - -------------------------------------------------------------------------------------------------------------------------- Ranbaxy Laboratories Ltd. (Pharmaceuticals)(a) 37,100 881,623 - -------------------------------------------------------------------------------------------------------------------------- Wockhardt Ltd. (Pharmaceuticals) 141,600 1,094,946 - -------------------------------------------------------------------------------------------------------------------------- 4,886,875 ========================================================================================================================== IRELAND--4.59% Anglo Irish Bank Corp. PLC (Diversified Banks)(a) 155,365 2,852,786 - -------------------------------------------------------------------------------------------------------------------------- Depfa Bank PLC (Diversified Banks)(a) 60,710 829,911 - -------------------------------------------------------------------------------------------------------------------------- Grafton Group PLC (Trading Companies & Distributors)(b)(g) 218,030 2,028,143 - -------------------------------------------------------------------------------------------------------------------------- Kingspan Group PLC (Building Products)(a) 203,000 1,510,874 - -------------------------------------------------------------------------------------------------------------------------- Paddy Power PLC (Casinos & Gaming)(a) 110,000 1,299,488 - -------------------------------------------------------------------------------------------------------------------------- 8,521,202 ========================================================================================================================== ITALY--1.34% Lottomatica S.p.A. (Casinos & Gaming)(a) 50,500 1,401,872 - -------------------------------------------------------------------------------------------------------------------------- Merloni Elettrodomestici S.p.A. (Household Appliances)(a) 66,308 1,092,603 - -------------------------------------------------------------------------------------------------------------------------- 2,494,475 ========================================================================================================================== JAPAN--4.99% Daiwa House Industry Co., Ltd. (Homebuilding)(a) 94,000 919,969 - -------------------------------------------------------------------------------------------------------------------------- NHK Spring Co., Ltd. (Auto Parts & Equipment)(a) 217,000 1,578,493 - -------------------------------------------------------------------------------------------------------------------------- Nippon Thompson Co., Ltd. (Industrial Machinery)(a) 133,000 807,249 - -------------------------------------------------------------------------------------------------------------------------- NOK Corp. (Auto Parts & Equipment)(a) 46,000 1,418,966 - -------------------------------------------------------------------------------------------------------------------------- Omron Corp. (Electronic Equipment Manufacturers)(a) 63,600 1,404,795 - -------------------------------------------------------------------------------------------------------------------------- Sekisui Chemical Co., Ltd. (Homebuilding)(a) 172,000 1,190,825 - -------------------------------------------------------------------------------------------------------------------------- Stanley Electric Co., Ltd. (Auto Parts & Equipment)(a) 57,800 811,484 - -------------------------------------------------------------------------------------------------------------------------- USS Co., Ltd. (Specialty Stores)(a) 15,100 1,141,732 - -------------------------------------------------------------------------------------------------------------------------- 9,273,513 ========================================================================================================================== LUXEMBOURG--0.73% SBS Broadcasting S.A. (Broadcasting & Cable TV)(b) 40,470 1,362,220 ========================================================================================================================== MALAYSIA--1.11% Maxis Communications Berhad (Wireless Telecommunication Services)(a) 476,600 1,066,363 - -------------------------------------------------------------------------------------------------------------------------- Public Bank Berhad (Diversified Banks)(a) 532,450 994,096 - -------------------------------------------------------------------------------------------------------------------------- 2,060,459 ==========================================================================================================================
F-3 IEG-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------- MEXICO--2.04% Consorcio ARA, S.A. de C.V. (Homebuilding) 348,100 $ 993,872 - -------------------------------------------------------------------------------------------------------------------------- Corporacion GEO, S.A. de C.V.-Series B (Homebuilding)(b) 879,300 1,270,709 - -------------------------------------------------------------------------------------------------------------------------- Grupo Financiero Banorte S.A. de C.V.-Class O (Diversified Banks) 324,600 1,529,895 - -------------------------------------------------------------------------------------------------------------------------- 3,794,476 ========================================================================================================================== NETHERLANDS--4.39% Aalberts Industries N.V. (Industrial Conglomerates)(a) 91,921 3,353,220 - -------------------------------------------------------------------------------------------------------------------------- Axalto Holding N.V. (Computer Storage & Peripherals)(b) 61,000 1,300,992 - -------------------------------------------------------------------------------------------------------------------------- Koninklijke BAM Groep N.V. (Construction & Engineering)(a) 42,500 1,582,060 - -------------------------------------------------------------------------------------------------------------------------- Nutreco Holding N.V. (Agricultural Products)(a) 61,100 1,918,744 - -------------------------------------------------------------------------------------------------------------------------- 8,155,016 ========================================================================================================================== NORWAY--3.48% Aktiv Kapital A.S.A. (Specialized Finance)(a) 203,654 3,166,206 - -------------------------------------------------------------------------------------------------------------------------- Ekornes A.S.A. (Home Furnishings)(a) 82,936 1,781,715 - -------------------------------------------------------------------------------------------------------------------------- TGS Nopec Geophysical Co. A.S.A. (Oil & Gas Equipment & Services)(a)(b) 78,180 1,520,720 - -------------------------------------------------------------------------------------------------------------------------- 6,468,641 ========================================================================================================================== PHILIPPINES--0.87% Philippine Long Distance Telephone Co. (Integrated Telecommunication Services)(a)(b) 64,500 1,605,805 ========================================================================================================================== PORTUGAL--0.58% SonaeCom, SGPS, S.A. (Wireless Telecommunication Services)(a)(b) 267,000 1,079,551 ========================================================================================================================== SINGAPORE--1.01% Keppel Corp. Ltd. (Industrial Conglomerates)(a) 148,000 694,213 - -------------------------------------------------------------------------------------------------------------------------- SembCorp Logistics Ltd. (Marine Ports & Services)(a) 879,000 1,183,142 - -------------------------------------------------------------------------------------------------------------------------- 1,877,355 ========================================================================================================================== SOUTH AFRICA--0.88% Massmart Holdings Ltd. (Hypermarkets & Super Centers)(b) 268,800 1,632,094 ========================================================================================================================== SOUTH KOREA--2.11% Cheil Communications Inc. (Advertising)(a) 8,600 1,107,823 - -------------------------------------------------------------------------------------------------------------------------- CJ Corp. (Packaged Foods & Meats)(a) 10,010 538,724 - -------------------------------------------------------------------------------------------------------------------------- Hana Bank (Diversified Banks)(a) 53,600 1,277,030 - -------------------------------------------------------------------------------------------------------------------------- Hyundai Department Store Co., Ltd. (Department Stores)(a) 35,000 987,206 - -------------------------------------------------------------------------------------------------------------------------- 3,910,783 ========================================================================================================================== SPAIN--1.19% Corporacion Mapfre S.A. (Multi-Line Insurance)(a) 98,530 1,160,368 - -------------------------------------------------------------------------------------------------------------------------- Gestevision Telecinco S.A. (Broadcasting & Cable TV) (Acquired 06/23/04; Cost $712,386)(b)(e) 58,000 1,050,195 - -------------------------------------------------------------------------------------------------------------------------- 2,210,563 ==========================================================================================================================
F-4 IEG-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------- SWITZERLAND--4.79% Leica Geosystems A.G. (Electronic Equipment Manufacturers)(a)(b) 12,500 $ 2,761,150 - -------------------------------------------------------------------------------------------------------------------------- SAIA-Burgess Electronics A.G. (Electronic Equipment Manufacturers)(a) 4,450 2,594,333 - -------------------------------------------------------------------------------------------------------------------------- Saurer A.G. (Industrial Machinery)(a)(b) 39,100 2,139,753 - -------------------------------------------------------------------------------------------------------------------------- Sika A.G. (Specialty Chemicals)(a) 2,400 1,391,951 - -------------------------------------------------------------------------------------------------------------------------- 8,887,187 ========================================================================================================================== TAIWAN--1.34% Catcher Technology Co., Ltd. (Computer Storage & Peripherals)(a) 49,200 137,564 - -------------------------------------------------------------------------------------------------------------------------- Ichia Technologies, Inc. (Computer Storage & Peripherals)(a) 369,293 598,230 - -------------------------------------------------------------------------------------------------------------------------- Merry Electronics Co., Ltd. (Consumer Electronics)(a) 555,954 1,201,547 - -------------------------------------------------------------------------------------------------------------------------- Novatek Microelectronics Corp., Ltd. (Semiconductors)(a) 31,194 82,664 - -------------------------------------------------------------------------------------------------------------------------- President Chain Store Corp. (Food Retail)(a) 321,932 473,128 - -------------------------------------------------------------------------------------------------------------------------- 2,493,133 ========================================================================================================================== THAILAND--0.65% Siam Commercial Bank PCL (Diversified Banks)(a) 1,127,000 1,210,696 ========================================================================================================================== UNITED KINGDOM--12.89% Admiral Group PLC (Property & Casualty Insurance) (Acquired 09/23/04; Cost $985,300)(b)(e) 199,900 1,043,248 - -------------------------------------------------------------------------------------------------------------------------- Alba PLC (Consumer Electronics)(a) 70,250 970,665 - -------------------------------------------------------------------------------------------------------------------------- Balfour Beatty PLC (Construction & Engineering)(a) 330,000 1,666,198 - -------------------------------------------------------------------------------------------------------------------------- Cattles PLC (Consumer Finance)(a) 177,520 1,063,231 - -------------------------------------------------------------------------------------------------------------------------- Enterprise Inns PLC (Restaurants)(a) 174,080 1,800,984 - -------------------------------------------------------------------------------------------------------------------------- Findel PLC (Catalog Retail)(a) 186,500 1,385,932 - -------------------------------------------------------------------------------------------------------------------------- Homeserve PLC (Diversified Commercial Services) 228,300 2,606,325 - -------------------------------------------------------------------------------------------------------------------------- Johnston Press PLC (Publishing)(a) 145,990 1,472,887 - -------------------------------------------------------------------------------------------------------------------------- Kensington Group PLC (Thrifts & Mortgage Finance)(a) 170,820 1,240,818 - -------------------------------------------------------------------------------------------------------------------------- McBride PLC (Household Products)(a) 963,010 2,583,329 - -------------------------------------------------------------------------------------------------------------------------- NDS Group PLC-ADR (Application Software)(b) 58,600 1,582,200 - -------------------------------------------------------------------------------------------------------------------------- Savills PLC (Other Diversified Financial Services)(a) 217,425 1,685,554 - -------------------------------------------------------------------------------------------------------------------------- T&F Informa PLC (Publishing)(a) 288,664 1,942,327 - -------------------------------------------------------------------------------------------------------------------------- Warner Chilcott PLC (Pharmaceuticals) 102,300 1,421,848 - -------------------------------------------------------------------------------------------------------------------------- WS Atkins PLC (Diversified Commercial Services)(a) 124,855 1,466,522 - -------------------------------------------------------------------------------------------------------------------------- 23,932,068 ========================================================================================================================== Total Foreign Stocks & Other Equity Interests (Cost $145,637,219) 179,037,194 ==========================================================================================================================
F-5 IEG-QTR-1
MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS--3.60% Liquid Assets Portfolio-Institutional Class(h) 3,346,174 $ 3,346,174 - -------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(h) 3,346,174 3,346,174 - -------------------------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $6,692,348) 6,692,348 ========================================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $152,329,567) $ 185,729,542 __________________________________________________________________________________________________________________________ ==========================================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Pfd. Preferred Wts. Warrants Notes to Schedule of Investments: (a) In accordance with the procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate market value of these securities at September 30, 2004 was $117,246,940, which represented 63.13% of the Fund's Total Investments. See Note 1A. (b) Non-income producing security. (c) Security considered to be illiquid. The aggregate market value of these securities considered illiquid at September 30, 2004 was $728,877, which represented 0.39% of the Fund's Total Investments. (d) Security fair valued in good faith accordance with the procedures established by the Board of Trustees. The aggregate market value of these securities at September 30, 2004 was $728,877, which represented 0.39% of the Fund's Total Investments. See Note 1A. (e) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at September 30, 2004 was $11,671,291, which represented 6.28% of the Fund's Total Investments. Unless otherwise indicated, these securities are not considered to be illiquid. (f) Non-income producing security acquired as part of a unit with or in exchange for other securities. (g) Each unit represents one ordinary share, one ordinary C share and nine ordinary A shares. (h) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. See accompanying notes which are an integral part of this schedule. F-6 IEG-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Companies are listed in the Schedule of Investments based on the country in which they are organized. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. F-7 IEG-QTR-1 A. SECURITY VALUATIONS (CONTINUED) Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. 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 (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from, (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. 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. NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission and approved procedures by the Board of Trustees, to invest daily available cash balances in affiliated money F-8 IEG-QTR-1 NOTE 2--INVESTMENTS IN AFFILIATES (CONTINUED) market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The table below shows the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
MARKET PROCEEDS UNREALIZED MARKET REALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND GAIN FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME (LOSS) - --------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio- Institutional Class $4,055,406 $42,334,875 $(43,044,107) $ -- $3,346,174 $28,745 $ -- - --------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio- Institutional Class 4,055,406 42,334,875 (43,044,107) -- 3,346,174 27,814 -- - --------------------------------------------------------------------------------------------------------------------- TOTAL $8,110,812 $84,669,750 $(86,088,214) $ -- $6,692,348 $56,559 $ -- =====================================================================================================================
NOTE 3--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $193,836,974 and $132,787,886, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $ 34,568,441 - --------------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (1,242,169) - --------------------------------------------------------------------------------------- Net unrealized appreciation of investment securities $ 33,326,272 =======================================================================================
Cost of investments for tax purposes is $152,403,270 F-9 IEG-QTR-1 AIM MID CAP BASIC VALUE FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com MCBV-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS--95.87% ADVERTISING--3.19% Interpublic Group of Cos., Inc. (The)(a) 363,070 $ 3,844,911 - ----------------------------------------------------------------------------------------------------------------------------------- R.H. Donnelley Corp.(a) 34,000 1,678,240 - ----------------------------------------------------------------------------------------------------------------------------------- 5,523,151 =================================================================================================================================== APPAREL RETAIL--4.01% Gap, Inc. (The) 170,000 3,179,000 - ----------------------------------------------------------------------------------------------------------------------------------- TJX Cos., Inc. (The) 170,600 3,760,024 - ----------------------------------------------------------------------------------------------------------------------------------- 6,939,024 =================================================================================================================================== APPLICATION SOFTWARE--1.05% MAPICS, Inc.(a) 200,200 1,811,810 =================================================================================================================================== ASSET MANAGEMENT & CUSTODY BANKS--3.45% Janus Capital Group Inc. 163,240 2,221,696 - ----------------------------------------------------------------------------------------------------------------------------------- Waddell & Reed Financial, Inc.-Class A 170,190 3,744,180 - ----------------------------------------------------------------------------------------------------------------------------------- 5,965,876 =================================================================================================================================== BUILDING PRODUCTS--1.72% American Standard Cos. Inc.(a) 76,350 2,970,778 =================================================================================================================================== CONSUMER FINANCE--1.53% MoneyGram International, Inc. 154,900 2,645,692 =================================================================================================================================== DATA PROCESSING & OUTSOURCED SERVICES--9.96% BISYS Group, Inc. (The)(a) 217,000 3,170,370 - ----------------------------------------------------------------------------------------------------------------------------------- Ceridian Corp.(a) 202,080 3,720,293 - ----------------------------------------------------------------------------------------------------------------------------------- Certegy Inc. 96,150 3,577,741 - ----------------------------------------------------------------------------------------------------------------------------------- DST Systems, Inc.(a) 93,970 4,178,846 - ----------------------------------------------------------------------------------------------------------------------------------- SunGard Data Systems Inc.(a) 108,400 2,576,668 - ----------------------------------------------------------------------------------------------------------------------------------- 17,223,918 =================================================================================================================================== DIVERSIFIED COMMERCIAL SERVICES--3.17% Jackson Hewitt Tax Service Inc. 271,400 5,490,422 =================================================================================================================================== FOOD RETAIL--2.03% Kroger Co. (The)(a) 226,900 3,521,488 ===================================================================================================================================
F-1 MCBV-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE DISTRIBUTORS--2.58% McKesson Corp. 174,200 $ 4,468,230 =================================================================================================================================== HEALTH CARE EQUIPMENT--2.51% Waters Corp.(a) 98,500 4,343,850 =================================================================================================================================== HEALTH CARE FACILITIES--1.68% Universal Health Services, Inc.-Class B 66,950 2,912,325 =================================================================================================================================== HEALTH CARE SERVICES--1.26% IMS Health Inc. 91,240 2,182,461 =================================================================================================================================== HOTELS, RESORTS & CRUISE LINES--2.62% Orient-Express Hotels Ltd.-Class A (Bermuda) 140,700 2,299,038 - ----------------------------------------------------------------------------------------------------------------------------------- Starwood Hotels & Resorts Worldwide, Inc. 48,080 2,231,874 - ----------------------------------------------------------------------------------------------------------------------------------- 4,530,912 =================================================================================================================================== INDUSTRIAL MACHINERY--0.84% SPX Corp. 41,040 1,452,816 =================================================================================================================================== INSURANCE BROKERS--3.81% Aon Corp. 229,200 6,587,208 =================================================================================================================================== IT CONSULTING & OTHER SERVICES--2.68% Acxiom Corp. 195,350 4,637,609 =================================================================================================================================== LEISURE FACILITIES--1.99% Speedway Motorsports, Inc. 103,300 3,442,989 =================================================================================================================================== LEISURE PRODUCTS--2.42% Brunswick Corp. 91,570 4,190,243 =================================================================================================================================== LIFE & HEALTH INSURANCE--3.97% Nationwide Financial Services, Inc.-Class A 104,190 3,658,111 - ----------------------------------------------------------------------------------------------------------------------------------- Protective Life Corp. 81,700 3,211,627 - ----------------------------------------------------------------------------------------------------------------------------------- 6,869,738 =================================================================================================================================== MANAGED HEALTH CARE--4.42% Aetna Inc. 39,590 3,956,229 - ----------------------------------------------------------------------------------------------------------------------------------- Anthem, Inc.(a)(b) 42,280 3,688,930 - ----------------------------------------------------------------------------------------------------------------------------------- 7,645,159 =================================================================================================================================== MULTI-LINE INSURANCE--3.42% American Financial Group, Inc. 96,830 2,894,249 - ----------------------------------------------------------------------------------------------------------------------------------- Genworth Financial Inc.-Class A(a) 130,100 3,031,330 - ----------------------------------------------------------------------------------------------------------------------------------- 5,925,579 ===================================================================================================================================
F-2 MCBV-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- MULTI-SECTOR HOLDINGS--2.05% Leucadia National Corp. 62,500 $ 3,540,625 =================================================================================================================================== OIL & GAS DRILLING--5.56% Nabors Industries, Ltd. (Bermuda)(a) 65,290 3,091,482 - ----------------------------------------------------------------------------------------------------------------------------------- Pride International, Inc.(a) 171,310 3,390,225 - ----------------------------------------------------------------------------------------------------------------------------------- Todco-Class A(a) 181,000 3,140,350 - ----------------------------------------------------------------------------------------------------------------------------------- 9,622,057 =================================================================================================================================== PACKAGED FOODS & MEATS--1.82% Cadbury Schweppes PLC-ADR (United Kingdom) 101,900 3,149,729 =================================================================================================================================== PROPERTY & CASUALTY INSURANCE--3.31% ACE Ltd. (Cayman Islands) 143,020 5,729,381 =================================================================================================================================== REGIONAL BANKS--4.36% Cullen/Frost Bankers, Inc. 76,100 3,536,367 - ----------------------------------------------------------------------------------------------------------------------------------- Zions Bancorp. 65,570 4,002,393 - ----------------------------------------------------------------------------------------------------------------------------------- 7,538,760 =================================================================================================================================== RESTAURANTS--4.40% CEC Entertainment Inc.(a) 112,350 4,128,863 - ----------------------------------------------------------------------------------------------------------------------------------- Outback Steakhouse, Inc. 83,730 3,477,307 - ----------------------------------------------------------------------------------------------------------------------------------- 7,606,170 =================================================================================================================================== SYSTEMS SOFTWARE--4.06% Computer Associates International, Inc. 266,800 7,016,840 =================================================================================================================================== THRIFTS & MORTGAGE FINANCE--6.00% Federal Agricultural Mortgage Corp.-Class C(a) 102,100 2,265,599 - ----------------------------------------------------------------------------------------------------------------------------------- MGIC Investment Corp. 50,100 3,334,155 - ----------------------------------------------------------------------------------------------------------------------------------- Radian Group Inc. 103,280 4,774,634 - ----------------------------------------------------------------------------------------------------------------------------------- 10,374,388 =================================================================================================================================== Total Common Stocks & Other Equity Interests (Cost $144,435,732) 165,859,228 =================================================================================================================================== MONEY MARKET FUNDS--4.05% Liquid Assets Portfolio-Institutional Class(c) 3,507,562 3,507,562 - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(c) 3,507,562 3,507,562 - ----------------------------------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $7,015,124) 7,015,124 =================================================================================================================================== TOTAL INVESTMENTS--99.92% (excluding investments purchased with cash collateral from securities loaned) (Cost $151,450,856) 172,874,352 ===================================================================================================================================
F-3 MCBV-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--0.08% STIC Prime Portfolio-Institutional Class(c)(d) 133,500 $ 133,500 - ----------------------------------------------------------------------------------------------------------------------------------- Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $133,500) 133,500 =================================================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $151,584,356) $173,007,852 ___________________________________________________________________________________________________________________________________ ===================================================================================================================================
Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for security lending transactions at September 30, 2004. (c) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (d) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. See accompanying notes which are an integral part of this schedule. F-4 MCBV-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. F-5 MCBV-QTR-1 B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission ("SEC"), to invest daily available cash balances and cash collateral from securities lending transactions in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
PROCEEDS UNREALIZED MARKET MARKET VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME GAIN (LOSS) - ----------------------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio - Institutional Class $ 3,469,832 $ 40,657,975 $ (40,620,245) $ -- $3,507,562 $ 33,082 $ -- STIC Prime Portfolio - Institutional Class 3,469,832 40,657,975 (40,620,245) -- 3,507,562 32,013 -- - ----------------------------------------------------------------------------------------------------------------------------------- Subtotal $ 6,939,664 $ 81,315,950 $ (81,240,490) $ -- $7,015,124 $ 65,095 $ -- ===================================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
PROCEEDS UNREALIZED MARKET MARKET VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND REALIZED FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME * GAIN (LOSS) - ----------------------------------------------------------------------------------------------------------------------------------- Liquid Assets $ 1,742,200 $ 28,664,200 $ (30,406,400) $ -- $ -- $ 1,313 $ -- Portfolio - Institutional Class STIC Prime -- 1,153,700 (1,020,200) -- 133,500 329 -- Portfolio - Institutional Class - ----------------------------------------------------------------------------------------------------------------------------------- Subtotal $ 1,742,200 $ 29,817,900 $ (31,426,600) $ -- $ 133,500 $ 1,642 $ -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 8,681,864 $111,133,850 $ (112,667,090) $ -- $ 7,148,624 $ 66,737 $ -- ===================================================================================================================================
* Dividend income is net of income rebate paid to security lending counterparties. F-6 MCBV-QTR-1 NOTE 3--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to a loss on the collateral invested. At September 30, 2004, securities with an aggregate value of $130,875 were on loan to brokers. The loans were secured by cash collateral of $133,500, received by the Fund and subsequently invested in affiliated money market funds. For the nine months ended September 30, 2004, the Fund received dividends on cash collateral net of income rebate paid to counterparties of $1,642 for securities lending transactions. NOTE 4--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during nine months ended September 30, 2004 was $95,865,475 and $37,541,965, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS - ------------------------------------------------------------------------------ Aggregate unrealized appreciation of investment securities $ 25,277,718 - ------------------------------------------------------------------------------ Aggregate unrealized (depreciation) of investment securities (5,075,352) - ------------------------------------------------------------------------------ Net unrealized appreciation of investment securities $ 20,202,366 ============================================================================== Cost of investments for tax purposes is $152,805,486. F-7 MCBV-QTR-1 AIM PREMIER EQUITY FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com PEQ-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (unaudited)
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS--93.76% ADVERTISING--0.81% Interpublic Group of Cos., Inc. (The)(a) 652,800 $ 6,913,152 - ----------------------------------------------------------------------------------------------------------------------------------- Omnicom Group Inc. 698,100 51,003,186 - ----------------------------------------------------------------------------------------------------------------------------------- 57,916,338 =================================================================================================================================== AEROSPACE & DEFENSE--1.59% Boeing Co. (The) 250,000 12,905,000 - ----------------------------------------------------------------------------------------------------------------------------------- General Dynamics Corp. 175,000 17,867,500 - ----------------------------------------------------------------------------------------------------------------------------------- Honeywell International Inc. 1,090,200 39,094,572 - ----------------------------------------------------------------------------------------------------------------------------------- Northrop Grumman Corp. 808,200 43,101,306 - ----------------------------------------------------------------------------------------------------------------------------------- 112,968,378 =================================================================================================================================== ALUMINUM--0.39% Alcoa Inc. 820,700 27,567,313 =================================================================================================================================== APPAREL RETAIL--1.71% Gap, Inc. (The)(b) 2,780,000 51,986,000 - ----------------------------------------------------------------------------------------------------------------------------------- Limited Brands 3,116,300 69,462,327 - ----------------------------------------------------------------------------------------------------------------------------------- 121,448,327 =================================================================================================================================== APPLICATION SOFTWARE--0.50% Amdocs Ltd. (United Kingdom)(a) 1,200,000 26,196,000 - ----------------------------------------------------------------------------------------------------------------------------------- Intuit Inc.(a) 200,000 9,080,000 - ----------------------------------------------------------------------------------------------------------------------------------- 35,276,000 =================================================================================================================================== ASSET MANAGEMENT & CUSTODY BANKS--0.58% Bank of New York Co., Inc. (The) 1,416,900 41,330,973 =================================================================================================================================== BIOTECHNOLOGY--0.32% Genentech, Inc.(a) 435,000 22,802,700 =================================================================================================================================== BREWERS--0.66% Heineken N.V. (Netherlands)(c) 1,555,386 47,022,810 ===================================================================================================================================
F-1 PEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- BUILDING PRODUCTS--1.43% Masco Corp. 2,952,000 $101,932,560 =================================================================================================================================== COMMUNICATIONS EQUIPMENT--2.57% Avaya Inc.(a) 1,240,000 17,285,600 - ----------------------------------------------------------------------------------------------------------------------------------- Cisco Systems, Inc.(a) 1,950,000 35,295,000 - ----------------------------------------------------------------------------------------------------------------------------------- Motorola, Inc. 1,500,000 27,060,000 - ----------------------------------------------------------------------------------------------------------------------------------- Nokia Oyj-ADR (Finland) 4,963,800 68,103,336 - ----------------------------------------------------------------------------------------------------------------------------------- QUALCOMM Inc. 900,000 35,136,000 - ----------------------------------------------------------------------------------------------------------------------------------- 182,879,936 =================================================================================================================================== COMPUTER & ELECTRONICS RETAIL--0.13% Best Buy Co., Inc. 165,000 8,949,600 =================================================================================================================================== COMPUTER HARDWARE--1.38% Dell Inc.(a) 1,350,000 48,060,000 - ----------------------------------------------------------------------------------------------------------------------------------- International Business Machines Corp. 588,800 50,483,712 - ----------------------------------------------------------------------------------------------------------------------------------- 98,543,712 =================================================================================================================================== CONSUMER ELECTRONICS--0.75% Sony Corp.-ADR (Japan)(b) 1,550,000 53,304,500 =================================================================================================================================== CONSUMER FINANCE--0.28% MBNA Corp. 800,000 20,160,000 =================================================================================================================================== DATA PROCESSING & OUTSOURCED SERVICES--1.60% First Data Corp. 2,621,100 114,017,850 =================================================================================================================================== DEPARTMENT STORES--1.09% J.C. Penney Co., Inc. 500,000 17,640,000 - ----------------------------------------------------------------------------------------------------------------------------------- Kohl's Corp.(a) 1,248,900 60,184,491 - ----------------------------------------------------------------------------------------------------------------------------------- 77,824,491 =================================================================================================================================== DIVERSIFIED BANKS--1.11% Bank of America Corp. 1,125,400 48,763,582 - ----------------------------------------------------------------------------------------------------------------------------------- Wachovia Corp. 640,600 30,076,170 - ----------------------------------------------------------------------------------------------------------------------------------- 78,839,752 =================================================================================================================================== DIVERSIFIED CHEMICALS--0.75% Dow Chemical Co. (The) 1,187,400 53,646,732 =================================================================================================================================== DIVERSIFIED COMMERCIAL SERVICES--1.71% Apollo Group, Inc.-Class A(a) 250,000 18,342,500 - ----------------------------------------------------------------------------------------------------------------------------------- Cendant Corp. 4,786,200 103,381,920 - ----------------------------------------------------------------------------------------------------------------------------------- 121,724,420 ===================================================================================================================================
F-2 PEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.57% FPL Group, Inc. 590,200 $ 40,322,464 =================================================================================================================================== ELECTRIC COMPONENTS & EQUIPMENT--0.85% Emerson Electric Co. 606,200 37,517,718 - ----------------------------------------------------------------------------------------------------------------------------------- Rockwell Automation, Inc. 600,000 23,220,000 - ----------------------------------------------------------------------------------------------------------------------------------- 60,737,718 =================================================================================================================================== ENVIRONMENTAL SERVICES--1.73% Waste Management, Inc. 4,504,300 123,147,562 =================================================================================================================================== FOOD RETAIL--2.33% Kroger Co. (The)(a) 6,234,900 96,765,648 - ----------------------------------------------------------------------------------------------------------------------------------- Safeway Inc.(a) 3,580,200 69,133,662 - ----------------------------------------------------------------------------------------------------------------------------------- 165,899,310 =================================================================================================================================== FOOTWEAR--0.66% NIKE, Inc.-Class B 600,000 47,280,000 =================================================================================================================================== GENERAL MERCHANDISE STORES--1.27% Target Corp. 2,004,800 90,717,200 =================================================================================================================================== HEALTH CARE DISTRIBUTORS--1.11% Cardinal Health, Inc. 1,078,000 47,184,060 - ----------------------------------------------------------------------------------------------------------------------------------- McKesson Corp. 1,250,000 32,062,500 - ----------------------------------------------------------------------------------------------------------------------------------- 79,246,560 =================================================================================================================================== HEALTH CARE EQUIPMENT--1.63% Baxter International Inc. 1,080,000 34,732,800 - ----------------------------------------------------------------------------------------------------------------------------------- Becton, Dickinson & Co. 800,000 41,360,000 - ----------------------------------------------------------------------------------------------------------------------------------- Waters Corp.(a) 600,000 26,460,000 - ----------------------------------------------------------------------------------------------------------------------------------- Zimmer Holdings, Inc.(a) 170,000 13,436,800 - ----------------------------------------------------------------------------------------------------------------------------------- 115,989,600 =================================================================================================================================== HEALTH CARE FACILITIES--1.18% HCA Inc. 2,202,200 84,013,930 =================================================================================================================================== HEALTH CARE SERVICES--0.70% IMS Health Inc. 1,150,000 27,508,000 - ----------------------------------------------------------------------------------------------------------------------------------- Quest Diagnostics Inc. 250,000 22,055,000 - ----------------------------------------------------------------------------------------------------------------------------------- 49,563,000 =================================================================================================================================== HEALTH CARE SUPPLIES--0.45% Alcon Inc. (Switzerland) 400,000 32,080,000 ===================================================================================================================================
F-3 PEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOTELS, RESORTS & CRUISE LINES--0.41% Starwood Hotels & Resorts Worldwide, Inc. 635,300 $ 29,490,626 =================================================================================================================================== HOUSEHOLD PRODUCTS--1.15% Kimberly-Clark Corp. 592,300 38,256,657 - ----------------------------------------------------------------------------------------------------------------------------------- Procter & Gamble Co. (The) 800,000 43,296,000 - ----------------------------------------------------------------------------------------------------------------------------------- 81,552,657 =================================================================================================================================== HOUSEWARES & SPECIALTIES--0.87% Fortune Brands, Inc. 300,000 22,227,000 - ----------------------------------------------------------------------------------------------------------------------------------- Newell Rubbermaid Inc. 1,969,000 39,458,760 - ----------------------------------------------------------------------------------------------------------------------------------- 61,685,760 =================================================================================================================================== HYPERMARKETS & SUPER CENTERS--0.72% Costco Wholesale Corp. 500,000 20,780,000 - ----------------------------------------------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 577,300 30,712,360 - ----------------------------------------------------------------------------------------------------------------------------------- 51,492,360 =================================================================================================================================== INDUSTRIAL CONGLOMERATES--4.87% 3M Co. 325,000 25,990,250 - ----------------------------------------------------------------------------------------------------------------------------------- General Electric Co. 2,978,500 100,018,030 - ----------------------------------------------------------------------------------------------------------------------------------- Tyco International Ltd. (Bermuda) 7,190,300 220,454,598 - ----------------------------------------------------------------------------------------------------------------------------------- 346,462,878 =================================================================================================================================== INDUSTRIAL MACHINERY--2.02% Danaher Corp. 725,000 37,178,000 - ----------------------------------------------------------------------------------------------------------------------------------- Dover Corp. 1,201,700 46,710,079 - ----------------------------------------------------------------------------------------------------------------------------------- Eaton Corp. 355,000 22,510,550 - ----------------------------------------------------------------------------------------------------------------------------------- Illinois Tool Works Inc. 400,000 37,268,000 - ----------------------------------------------------------------------------------------------------------------------------------- 143,666,629 =================================================================================================================================== INTEGRATED OIL & GAS--3.32% Amerada Hess Corp. 335,420 29,852,380 - ----------------------------------------------------------------------------------------------------------------------------------- BP PLC-ADR (United Kingdom) 1,171,900 67,419,407 - ----------------------------------------------------------------------------------------------------------------------------------- ChevronTexaco Corp. 539,200 28,922,688 - ----------------------------------------------------------------------------------------------------------------------------------- ConocoPhillips 352,500 29,204,625 - ----------------------------------------------------------------------------------------------------------------------------------- Exxon Mobil Corp. 1,030,700 49,813,731 - ----------------------------------------------------------------------------------------------------------------------------------- Murphy Oil Corp. 359,000 31,150,430 - ----------------------------------------------------------------------------------------------------------------------------------- 236,363,261 =================================================================================================================================== INTEGRATED TELECOMMUNICATION SERVICES--0.62% ALLTEL Corp. 808,200 44,378,262 ===================================================================================================================================
F-4 PEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- INTERNET RETAIL--0.77% eBay Inc.(a) 300,000 $ 27,582,000 - ----------------------------------------------------------------------------------------------------------------------------------- IAC/InterActiveCorp(a)(b) 1,235,400 27,203,508 - ----------------------------------------------------------------------------------------------------------------------------------- 54,785,508 =================================================================================================================================== INTERNET SOFTWARE & SERVICES--0.62% Yahoo! Inc.(a) 1,300,000 44,083,000 =================================================================================================================================== INVESTMENT BANKING & BROKERAGE--1.93% Goldman Sachs Group, Inc. (The) 300,000 27,972,000 - ----------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc. 699,700 34,789,084 - ----------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley 1,508,100 74,349,330 - ----------------------------------------------------------------------------------------------------------------------------------- 137,110,414 =================================================================================================================================== IT CONSULTING & OTHER SERVICES--1.00% Accenture Ltd.-Class A (Bermuda)(a) 2,635,500 71,290,275 =================================================================================================================================== LIFE & HEALTH INSURANCE--0.80% MetLife, Inc. 475,000 18,358,750 - ----------------------------------------------------------------------------------------------------------------------------------- Prudential Financial, Inc. 826,900 38,897,376 - ----------------------------------------------------------------------------------------------------------------------------------- 57,256,126 =================================================================================================================================== MANAGED HEALTH CARE--2.03% Aetna Inc. 250,000 24,982,500 - ----------------------------------------------------------------------------------------------------------------------------------- Anthem, Inc.(a)(b) 522,800 45,614,300 - ----------------------------------------------------------------------------------------------------------------------------------- UnitedHealth Group Inc. 1,000,000 73,740,000 - ----------------------------------------------------------------------------------------------------------------------------------- 144,336,800 =================================================================================================================================== MOTORCYCLE MANUFACTURERS--0.37% Harley-Davidson, Inc. 440,000 26,153,600 =================================================================================================================================== MOVIES & ENTERTAINMENT--0.66% Walt Disney Co. (The) 2,080,000 46,904,000 =================================================================================================================================== MULTI-LINE INSURANCE--0.65% American International Group, Inc. 240,000 16,317,600 - ----------------------------------------------------------------------------------------------------------------------------------- Hartford Financial Services Group, Inc. (The) 480,000 29,726,400 - ----------------------------------------------------------------------------------------------------------------------------------- 46,044,000 =================================================================================================================================== OFFICE ELECTRONICS--0.72% Xerox Corp.(a) 3,644,300 51,311,744 =================================================================================================================================== OIL & GAS DRILLING--0.73% Transocean Inc. (Cayman Islands)(a) 1,460,000 52,238,800 ===================================================================================================================================
F-5 PEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- OIL & GAS EQUIPMENT & Services--1.88% Baker Hughes Inc. 881,000 $ 38,517,320 - ----------------------------------------------------------------------------------------------------------------------------------- Halliburton Co. 1,490,000 50,198,100 - ----------------------------------------------------------------------------------------------------------------------------------- Schlumberger Ltd. (Netherlands) 668,000 44,963,080 - ----------------------------------------------------------------------------------------------------------------------------------- 133,678,500 =================================================================================================================================== OTHER DIVERSIFIED FINANCIAL SERVICES--2.77% Citigroup Inc. 2,160,400 95,316,848 - ----------------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase & Co. 1,564,000 62,137,720 - ----------------------------------------------------------------------------------------------------------------------------------- Principal Financial Group, Inc. 1,102,600 39,660,522 - ----------------------------------------------------------------------------------------------------------------------------------- 197,115,090 =================================================================================================================================== PACKAGED FOODS & MEATS--4.22% Campbell Soup Co. 2,432,700 63,955,683 - ----------------------------------------------------------------------------------------------------------------------------------- General Mills, Inc. 2,170,600 97,459,940 - ----------------------------------------------------------------------------------------------------------------------------------- Kraft Foods Inc.-Class A 2,837,400 90,002,328 - ----------------------------------------------------------------------------------------------------------------------------------- Sara Lee Corp. 2,153,300 49,224,438 - ----------------------------------------------------------------------------------------------------------------------------------- 300,642,389 =================================================================================================================================== PAPER PRODUCTS--0.70% Georgia-Pacific Corp. 1,385,500 49,808,725 =================================================================================================================================== PERSONAL PRODUCTS--1.37% Avon Products, Inc. 575,000 25,116,000 - ----------------------------------------------------------------------------------------------------------------------------------- Estee Lauder Cos. Inc. (The)-Class A 630,000 26,334,000 - ----------------------------------------------------------------------------------------------------------------------------------- Gillette Co. (The) 1,100,000 45,914,000 - ----------------------------------------------------------------------------------------------------------------------------------- 97,364,000 =================================================================================================================================== PHARMACEUTICALS--9.45% Abbott Laboratories 912,100 38,636,556 - ----------------------------------------------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 1,887,800 44,684,226 - ----------------------------------------------------------------------------------------------------------------------------------- GlaxoSmithKline PLC-ADR (United Kingdom) 1,651,100 72,202,603 - ----------------------------------------------------------------------------------------------------------------------------------- Johnson & Johnson 1,727,400 97,304,442 - ----------------------------------------------------------------------------------------------------------------------------------- Merck & Co. Inc. 1,408,600 46,483,800 - ----------------------------------------------------------------------------------------------------------------------------------- Pfizer Inc. 5,364,900 164,165,940 - ----------------------------------------------------------------------------------------------------------------------------------- Sanofi-Aventis (France)(b)(c) 1,016,600 74,052,666 - ----------------------------------------------------------------------------------------------------------------------------------- Teva Pharmaceutical Industries Ltd.-ADR (Israel) 1,175,400 30,501,630 - ----------------------------------------------------------------------------------------------------------------------------------- Wyeth 2,811,300 105,142,620 - ----------------------------------------------------------------------------------------------------------------------------------- 673,174,483 =================================================================================================================================== PROPERTY & CASUALTY INSURANCE--1.88% ACE Ltd. (Cayman Islands) 2,065,900 82,759,954 - ----------------------------------------------------------------------------------------------------------------------------------- Allstate Corp. (The) 400,000 19,196,000 - ----------------------------------------------------------------------------------------------------------------------------------- St. Paul Travelers Cos., Inc. (The) 956,100 31,608,666 - ----------------------------------------------------------------------------------------------------------------------------------- 133,564,620 ===================================================================================================================================
F-6 PEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- PUBLISHING--1.54% Gannett Co., Inc. 519,600 $ 43,521,696 - ----------------------------------------------------------------------------------------------------------------------------------- New York Times Co. (The)-Class A 1,100,200 43,017,820 - ----------------------------------------------------------------------------------------------------------------------------------- Tribune Co. 554,200 22,805,330 - ----------------------------------------------------------------------------------------------------------------------------------- 109,344,846 =================================================================================================================================== RAILROADS--1.15% Norfolk Southern Corp. 1,540,200 45,805,548 - ----------------------------------------------------------------------------------------------------------------------------------- Union Pacific Corp. 621,200 36,402,320 - ----------------------------------------------------------------------------------------------------------------------------------- 82,207,868 =================================================================================================================================== REGIONAL BANKS--0.86% BB&T Corp. 819,000 32,506,110 - ----------------------------------------------------------------------------------------------------------------------------------- SunTrust Banks, Inc. 405,400 28,544,214 - ----------------------------------------------------------------------------------------------------------------------------------- 61,050,324 =================================================================================================================================== RESTAURANTS--1.13% McDonald's Corp. 1,425,000 39,942,750 - ----------------------------------------------------------------------------------------------------------------------------------- Yum! Brands, Inc. 1,000,000 40,660,000 - ----------------------------------------------------------------------------------------------------------------------------------- 80,602,750 =================================================================================================================================== SEMICONDUCTOR EQUIPMENT--0.50% Applied Materials, Inc.(a) 2,170,000 35,783,300 =================================================================================================================================== SEMICONDUCTORS--2.60% Analog Devices, Inc. 1,937,200 75,124,616 - ----------------------------------------------------------------------------------------------------------------------------------- Intel Corp. 1,881,800 37,748,908 - ----------------------------------------------------------------------------------------------------------------------------------- National Semiconductor Corp.(a) 2,469,700 38,255,653 - ----------------------------------------------------------------------------------------------------------------------------------- Xilinx, Inc. 1,266,600 34,198,200 - ----------------------------------------------------------------------------------------------------------------------------------- 185,327,377 =================================================================================================================================== SOFT DRINKS--0.83% Coca-Cola Co. (The) 800,000 32,040,000 - ----------------------------------------------------------------------------------------------------------------------------------- PepsiCo, Inc. 550,000 26,757,500 - ----------------------------------------------------------------------------------------------------------------------------------- 58,797,500 =================================================================================================================================== SPECIALTY STORES--0.29% Staples, Inc. 700,000 20,874,000 =================================================================================================================================== SYSTEMS SOFTWARE--4.51% Adobe Systems Inc. 200,000 9,894,000 - ----------------------------------------------------------------------------------------------------------------------------------- Computer Associates International, Inc. 4,785,700 125,863,910 - ----------------------------------------------------------------------------------------------------------------------------------- Microsoft Corp. 3,795,200 104,937,280 - ----------------------------------------------------------------------------------------------------------------------------------- Oracle Corp.(a) 2,250,000 25,380,000 - ----------------------------------------------------------------------------------------------------------------------------------- Symantec Corp.(a) 1,000,000 54,880,000 - ----------------------------------------------------------------------------------------------------------------------------------- 320,955,190 ===================================================================================================================================
F-7 PEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE--1.98% Countrywide Financial Corp. 230,000 $ 9,059,700 - ----------------------------------------------------------------------------------------------------------------------------------- Fannie Mae 971,500 61,593,100 - ----------------------------------------------------------------------------------------------------------------------------------- Washington Mutual, Inc. 1,806,400 70,594,112 - ----------------------------------------------------------------------------------------------------------------------------------- 141,246,912 =================================================================================================================================== Total Common Stocks & Other Equity Interests (Cost $6,268,863,673) 6,675,298,310 =================================================================================================================================== MONEY MARKET FUNDS--4.24% Liquid Assets Portfolio-Institutional Class(d) 151,117,673 151,117,673 - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(d) 151,117,673 151,117,673 - ----------------------------------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $302,235,346) 302,235,346 =================================================================================================================================== TOTAL INVESTMENTS--98.00% (excluding investments purchased with cash collateral from securities loaned) (Cost $6,571,099,019) $6,977,533,656 =================================================================================================================================== INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--2.00% STIC Prime Portfolio-Institutional Class(d)(e) 142,282,850 142,282,850 - ----------------------------------------------------------------------------------------------------------------------------------- Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $142,282,850) 142,282,850 =================================================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $6,713,381,869) $7,119,816,506 ___________________________________________________________________________________________________________________________________ ===================================================================================================================================
F-8 PEQ-QTR-1 Investment Abbreviations: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for security lending transactions at September 30, 2004. (c) In accordance with procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The aggregate market value of these securities at September 30, 2004 was $121,075,476 which represented 1.70% of the Fund's Total Investments. See Note 1A. (d) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (e) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. See accompanying notes which are an integral part of this schedule. F-9 PEQ-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information F-10 PEQ-QTR-1 A. SECURITY VALUATIONS (CONTINUED) relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. 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 (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from, (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. 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. FUTURES CONTRACTS -- The Fund may purchase or sell futures contracts as a hedge against changes in market conditions. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are made or F-11 PEQ-QTR-1 E. FUTURE CONTRACTS-(CONTINUED) 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. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission ("SEC"), to invest daily available cash balances and cash collateral from securities lending transactions in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
UNREALIZED MARKET VALUE PURCHASES PROCEEDS FROM APPRECIATION MARKET VALUE DIVIDEND REALIZED FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME GAIN (LOSS) - ----------------------------------------------------------------------------------------------------------------------------------- Liquid Asset Portfolio- Institutional Class $149,855,268 $1,195,735,221 $(1,194,472,816) $ -- $151,117,673 $ 840,138 $ -- - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio- Institutional Class 149,855,268 1,195,735,221 (1,194,472,816) -- 151,117,673 810,332 -- - ----------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL $299,710,536 $2,391,470,442 $(2,388,945,632) $ -- $302,235,346 $ 1,650,470 $ -- ===================================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
UNREALIZED MARKET VALUE PURCHASES PROCEEDS FROM APPRECIATION MARKET VALUE DIVIDEND REALIZED FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME * GAIN (LOSS) - ----------------------------------------------------------------------------------------------------------------------------------- Liquid Asset Portfolio- Institutional Class $ 119,778,490 $ 649,658,610 $ (769,437,100) $ -- $ -- $ 317,294 $ -- - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio- Institutional Class -- 198,965,138 (56,682,288) -- 142,282,850 13,221 -- - ----------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL $ 119,778,490 $ 848,623,748 $ (826,119,388) $ -- $142,282,850 $ 330,515 $ -- =================================================================================================================================== TOTAL $ 419,489,026 $ 3,240,094,19 $(3,215,065,020) $ -- $444,518,196 $ 1,980,985 $ -- ===================================================================================================================================
* Dividend income is net of income rebate paid to securities lending counterparties. NOTE 3--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market F-12 PEQ-QTR-1 NOTE 3--PORTFOLIO SECURITIES LOANED-(CONTINUED) value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to a loss on the collateral invested. At September 30, 2004, securities with an aggregate value of $135,974,736 were on loan to brokers. The loans were secured by cash collateral of $142,282,850 received by the Fund and subsequently invested in affiliated money market funds. For the nine months ended September 30, 2004, the Fund received dividends on cash collateral net of income rebate paid to counterparties of $330,515 for securities lending transactions. NOTE 4--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $5,840,843,784 and $7,810,487,486, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS - ------------------------------------------------------------------------------- Aggregate unrealized appreciation of investment securities $ 742,653,912 - ------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (341,078,313) - ------------------------------------------------------------------------------- Net unrealized appreciation of investment securities $ 401,575,599 =============================================================================== Cost of investments for tax purposes is $6,718,240,907. F-13 PEQ-QTR-1 AIM SELECT EQUITY FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com SEQ-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS--95.46% ADVERTISING--1.48% Interpublic Group of Cos., Inc. (The)(a)(b) 345,100 $ 3,654,609 - ----------------------------------------------------------------------------------------------------------------- Omnicom Group Inc. 43,300 3,163,498 - ----------------------------------------------------------------------------------------------------------------- 6,818,107 ================================================================================================================= AEROSPACE & DEFENSE--0.55% Rockwell Collins, Inc. 21,900 813,366 - ----------------------------------------------------------------------------------------------------------------- United Technologies Corp. 18,300 1,708,854 - ----------------------------------------------------------------------------------------------------------------- 2,522,220 ================================================================================================================= AIR FREIGHT & LOGISTICS--0.33% EGL, Inc.(a) 17,700 535,602 - ----------------------------------------------------------------------------------------------------------------- Expeditors International of Washington, Inc. 19,000 982,300 - ----------------------------------------------------------------------------------------------------------------- 1,517,902 ================================================================================================================= ALTERNATIVE CARRIERS--0.25% Ptek Holdings, Inc.(a) 131,800 1,129,526 ================================================================================================================= APPAREL RETAIL--3.15% bebe stores, inc. 60,450 1,276,704 - ----------------------------------------------------------------------------------------------------------------- Chico's FAS, Inc.(a) 41,100 1,405,620 - ----------------------------------------------------------------------------------------------------------------- Gap, Inc. (The) 231,600 4,330,920 - ----------------------------------------------------------------------------------------------------------------- Jos. A. Bank Clothiers, Inc.(a)(b) 41,250 1,141,800 - ----------------------------------------------------------------------------------------------------------------- Men's Wearhouse, Inc. (The)(a) 86,800 2,521,540 - ----------------------------------------------------------------------------------------------------------------- Pacific Sunwear of California, Inc.(a) 46,100 970,405 - ----------------------------------------------------------------------------------------------------------------- Ross Stores, Inc. 51,700 1,211,848 - ----------------------------------------------------------------------------------------------------------------- TJX Cos., Inc. (The) 76,200 1,679,448 - ----------------------------------------------------------------------------------------------------------------- 14,538,285 ================================================================================================================= APPAREL, ACCESSORIES & LUXURY GOODS--0.99% Coach, Inc.(a) 64,000 2,714,880 - ----------------------------------------------------------------------------------------------------------------- V. F. Corp. 37,800 1,869,210 - ----------------------------------------------------------------------------------------------------------------- 4,584,090 =================================================================================================================
F-1 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- APPLICATION SOFTWARE--1.07% NAVTEQ Corp.(a) 81,200 $ 2,893,968 - ----------------------------------------------------------------------------------------------------------------- Reynolds & Reynolds Co. (The)-Class A 42,100 1,038,607 - ----------------------------------------------------------------------------------------------------------------- SAP A.G.-ADR (Germany) 25,200 981,540 - ----------------------------------------------------------------------------------------------------------------- 4,914,115 ================================================================================================================= ASSET MANAGEMENT & CUSTODY BANKS--1.54% Affiliated Managers Group, Inc.(a) 84,150 4,505,391 - ----------------------------------------------------------------------------------------------------------------- Bank of New York Co., Inc. (The) 89,300 2,604,881 - ----------------------------------------------------------------------------------------------------------------- 7,110,272 ================================================================================================================= BIOTECHNOLOGY--0.43% Invitrogen Corp.(a) 36,000 1,979,640 ================================================================================================================= BUILDING PRODUCTS--1.96% American Standard Cos. Inc.(a) 97,100 3,778,161 - ----------------------------------------------------------------------------------------------------------------- Masco Corp. 152,300 5,258,919 - ----------------------------------------------------------------------------------------------------------------- 9,037,080 ================================================================================================================= CASINOS & GAMING--0.99% Penn National Gaming, Inc.(a) 44,000 1,777,600 - ----------------------------------------------------------------------------------------------------------------- Scientific Games Corp.-Class A(a) 53,900 1,029,490 - ----------------------------------------------------------------------------------------------------------------- Shuffle Master, Inc.(a)(b) 46,500 1,741,890 - ----------------------------------------------------------------------------------------------------------------- 4,548,980 ================================================================================================================= COMMUNICATIONS EQUIPMENT--1.96% Avaya Inc.(a) 92,000 1,282,480 - ----------------------------------------------------------------------------------------------------------------- Cisco Systems, Inc.(a) 112,000 2,027,200 - ----------------------------------------------------------------------------------------------------------------- Inter-Tel, Inc. 49,400 1,068,028 - ----------------------------------------------------------------------------------------------------------------- Juniper Networks, Inc.(a) 42,400 1,000,640 - ----------------------------------------------------------------------------------------------------------------- Motorola, Inc. 64,700 1,167,188 - ----------------------------------------------------------------------------------------------------------------- Plantronics, Inc. 57,100 2,469,004 - ----------------------------------------------------------------------------------------------------------------- 9,014,540 ================================================================================================================= COMPUTER & ELECTRONICS RETAIL--0.66% Best Buy Co., Inc. 30,000 1,627,200 - ----------------------------------------------------------------------------------------------------------------- GameStop Corp.-Class A(a) 75,600 1,399,356 - ----------------------------------------------------------------------------------------------------------------- 3,026,556 ================================================================================================================= COMPUTER HARDWARE--1.29% Dell Inc.(a) 166,600 5,930,960 =================================================================================================================
F-2 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- COMPUTER STORAGE & PERIPHERALS--0.19% QLogic Corp.(a) 29,100 $ 861,651 ================================================================================================================= CONSUMER ELECTRONICS--1.25% Harman International Industries, Inc. 12,700 1,368,425 - ----------------------------------------------------------------------------------------------------------------- Koninklijke (Royal) Philips Electronics 56,007 1,283,120 N.V.-New York Shares (Netherlands) - ----------------------------------------------------------------------------------------------------------------- Sony Corp.-ADR (Japan) 90,900 3,126,051 - ----------------------------------------------------------------------------------------------------------------- 5,777,596 ================================================================================================================= CONSUMER FINANCE--2.28% American Express Co. 74,800 3,849,208 - ----------------------------------------------------------------------------------------------------------------- MBNA Corp. 175,700 4,427,640 - ----------------------------------------------------------------------------------------------------------------- MoneyGram International, Inc. 130,500 2,228,940 - ----------------------------------------------------------------------------------------------------------------- 10,505,788 ================================================================================================================= DATA PROCESSING & OUTSOURCED SERVICES--4.39% BISYS Group, Inc. (The) (a) 81,500 1,190,715 - ----------------------------------------------------------------------------------------------------------------- Ceridian Corp.(a) 222,600 4,098,066 - ----------------------------------------------------------------------------------------------------------------- Certegy Inc. 71,500 2,660,515 - ----------------------------------------------------------------------------------------------------------------- DST Systems, Inc.(a) 30,100 1,338,547 - ----------------------------------------------------------------------------------------------------------------- First Data Corp. 92,300 4,015,050 - ----------------------------------------------------------------------------------------------------------------- Fiserv, Inc.(a) 45,500 1,586,130 - ----------------------------------------------------------------------------------------------------------------- Paychex, Inc. 54,800 1,652,220 - ----------------------------------------------------------------------------------------------------------------- SunGard Data Systems Inc.(a) 155,700 3,700,989 - ----------------------------------------------------------------------------------------------------------------- 20,242,232 ================================================================================================================= DEPARTMENT STORES--0.22% Nordstrom, Inc. 26,100 998,064 ================================================================================================================= DIVERSIFIED BANKS--0.47% U.S. Bancorp 74,600 2,155,940 ================================================================================================================= DIVERSIFIED CHEMICALS--0.33% Engelhard Corp. 52,900 1,499,715 =================================================================================================================
F-3 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- DIVERSIFIED COMMERCIAL SERVICES--4.73% Apollo Group, Inc.-Class A(a) 68,161 $ 5,000,973 - ----------------------------------------------------------------------------------------------------------------- ARAMARK Corp.-Class B 94,300 2,276,402 - ----------------------------------------------------------------------------------------------------------------- Cendant Corp. 263,700 5,695,920 - ----------------------------------------------------------------------------------------------------------------- Cintas Corp. 22,300 937,492 - ----------------------------------------------------------------------------------------------------------------- Corrections Corp. of America(a) 29,500 1,043,120 - ----------------------------------------------------------------------------------------------------------------- Equifax Inc.(c) 48,400 1,275,824 - ----------------------------------------------------------------------------------------------------------------- H&R Block, Inc. 26,600 1,314,572 - ----------------------------------------------------------------------------------------------------------------- Jackson Hewitt Tax Service Inc. 57,500 1,163,225 - ----------------------------------------------------------------------------------------------------------------- Navigant Consulting, Inc.(a) 73,000 1,603,080 - ----------------------------------------------------------------------------------------------------------------- NCO Group, Inc.(a) 54,900 1,479,555 - ----------------------------------------------------------------------------------------------------------------- 21,790,163 ================================================================================================================= DIVERSIFIED METALS & MINING--0.17% Compass Minerals International, Inc. 35,100 779,220 ================================================================================================================= ELECTRICAL COMPONENTS & EQUIPMENT--0.64% II-VI Inc.(a) 24,000 840,240 - ----------------------------------------------------------------------------------------------------------------- Rockwell Automation, Inc. 55,000 2,128,500 - ----------------------------------------------------------------------------------------------------------------- 2,968,740 ================================================================================================================= ELECTRONIC EQUIPMENT MANUFACTURERS--1.20% Amphenol Corp.-Class A(a) 78,600 2,692,836 - ----------------------------------------------------------------------------------------------------------------- FLIR Systems, Inc.(a)(c) 19,000 1,111,500 - ----------------------------------------------------------------------------------------------------------------- Mettler-Toledo International Inc.(a) 36,700 1,732,974 - ----------------------------------------------------------------------------------------------------------------- 5,537,310 ================================================================================================================= ENVIRONMENTAL SERVICES--1.30% Republic Services, Inc. 74,800 2,226,048 - ----------------------------------------------------------------------------------------------------------------- Waste Management, Inc. 138,000 3,772,920 - ----------------------------------------------------------------------------------------------------------------- 5,998,968 ================================================================================================================= FOOD RETAIL--1.76% Kroger Co. (The)(a) 243,600 3,780,672 - ----------------------------------------------------------------------------------------------------------------- Safeway Inc. (a) 225,100 4,346,681 - ----------------------------------------------------------------------------------------------------------------- 8,127,353 ================================================================================================================= FOOTWEAR--0.25% NIKE, Inc.-Class B 14,500 1,142,600 =============================================================================================================== GENERAL MERCHANDISE STORES--0.63% Dollar General Corp. 53,400 1,076,010 - ----------------------------------------------------------------------------------------------------------------- Target Corp. 40,500 1,832,625 - ----------------------------------------------------------------------------------------------------------------- 2,908,635 =================================================================================================================
F-4 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- HEALTH CARE DISTRIBUTORS--1.43% AmerisourceBergen Corp. 17,900 $ 961,409 - ----------------------------------------------------------------------------------------------------------------- Cardinal Health, Inc. 50,800 2,223,516 - ----------------------------------------------------------------------------------------------------------------- McKesson Corp. 132,600 3,401,190 - ----------------------------------------------------------------------------------------------------------------- 6,586,115 ================================================================================================================= HEALTH CARE EQUIPMENT--5.69% Bard (C.R.), Inc. 44,000 2,491,720 - ----------------------------------------------------------------------------------------------------------------- Becton, Dickinson & Co. 19,400 1,002,980 - ----------------------------------------------------------------------------------------------------------------- Biomet, Inc. 116,000 5,438,080 - ----------------------------------------------------------------------------------------------------------------- Cytyc Corp.(a) 82,400 1,989,960 - ----------------------------------------------------------------------------------------------------------------- Fisher Scientific International Inc.(a) 95,500 5,570,515 - ----------------------------------------------------------------------------------------------------------------- Varian Inc.(a) 43,600 1,651,132 - ----------------------------------------------------------------------------------------------------------------- Varian Medical Systems, Inc.(a) 36,400 1,258,348 - ----------------------------------------------------------------------------------------------------------------- VISX, Inc.(a) 97,900 2,016,740 - ----------------------------------------------------------------------------------------------------------------- Waters Corp.(a) 108,800 4,798,080 - ----------------------------------------------------------------------------------------------------------------- 26,217,555 ================================================================================================================= HEALTH CARE FACILITIES--1.17% HCA, Inc. 51,700 1,972,355 - ----------------------------------------------------------------------------------------------------------------- Universal Health Services, Inc.-Class B 55,300 2,405,550 - ----------------------------------------------------------------------------------------------------------------- VCA Antech, Inc.(a) 48,600 1,002,618 - ----------------------------------------------------------------------------------------------------------------- 5,380,523 ================================================================================================================= HEALTH CARE SERVICES--2.42% Caremark Rx, Inc.(a) 66,500 2,132,655 - ----------------------------------------------------------------------------------------------------------------- eResearch Technology, Inc.(a) 57,750 769,807 - ----------------------------------------------------------------------------------------------------------------- Express Scripts, Inc.(a) 37,600 2,456,784 - ----------------------------------------------------------------------------------------------------------------- HealthExtras, Inc.(a)(c) 71,200 992,528 - ----------------------------------------------------------------------------------------------------------------- ICON PLC-ADR (Ireland)(a) 27,700 911,607 - ----------------------------------------------------------------------------------------------------------------- IMS Health Inc. 162,200 3,879,824 - ----------------------------------------------------------------------------------------------------------------- 11,143,205 ================================================================================================================= HEALTH CARE SUPPLIES--0.62% Bausch & Lomb Inc.(c) 43,200 2,870,640 ================================================================================================================= HOME ENTERTAINMENT SOFTWARE--0.19% Activision, Inc.(a) 63,500 880,745 ================================================================================================================= HOME IMPROVEMENT RETAIL--0.30% Home Depot, Inc. (The) 34,900 1,368,080 ================================================================================================================ HOTELS, RESORTS & CRUISE LINES--0.50% Starwood Hotels & Resorts Worldwide, Inc. 49,900 2,316,358 =================================================================================================================
F-5 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--1.20% Procter & Gamble Co. (The) 83,200 $ 4,502,784 - ----------------------------------------------------------------------------------------------------------------- Rayovac Corp.(a) 38,300 1,009,205 - ----------------------------------------------------------------------------------------------------------------- 5,511,989 ================================================================================================================= HOUSEWARES & SPECIALTIES--0.36% Yankee Candle Co., Inc. (The)(a) 57,200 1,656,512 ================================================================================================================= INDUSTRIAL CONGLOMERATES--1.87% 3M Co. 32,000 2,559,040 - ----------------------------------------------------------------------------------------------------------------- Tyco International Ltd. (Bermuda) 197,100 6,043,086 - ----------------------------------------------------------------------------------------------------------------- 8,602,126 ================================================================================================================= INDUSTRIAL MACHINERY--1.02% Danaher Corp. 29,400 1,507,632 - ----------------------------------------------------------------------------------------------------------------- Eaton Corp. 14,400 913,104 - ----------------------------------------------------------------------------------------------------------------- Graco Inc. 68,400 2,291,400 - ----------------------------------------------------------------------------------------------------------------- 4,712,136 ================================================================================================================= INSURANCE BROKERS--1.22% Aon Corp. 195,300 5,612,922 ================================================================================================================= INTEGRATED OIL & GAS--1.13% Exxon Mobil Corp. 107,900 5,214,807 ================================================================================================================= INTEGRATED TELECOMMUNICATION SERVICES--0.31% CenturyTel, Inc. 41,700 1,427,808 ================================================================================================================= INTERNET RETAIL--0.36% eBay Inc.(a) 18,200 1,673,308 ================================================================================================================= INTERNET SOFTWARE & SERVICES--0.28% Yahoo! Inc.(a) 37,600 1,275,016 ================================================================================================================= INVESTMENT BANKING & BROKERAGE--1.12% Merrill Lynch & Co., Inc. 40,300 2,003,716 - ----------------------------------------------------------------------------------------------------------------- Morgan Stanley 64,200 3,165,060 - ----------------------------------------------------------------------------------------------------------------- 5,168,776 ================================================================================================================= IT CONSULTING & OTHER SERVICES--0.21% Acxiom Corp. 41,600 987,584 ================================================================================================================= LEISURE PRODUCTS--0.41% Brunswick Corp. 41,300 1,889,888 =================================================================================================================
F-6 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- LIFE & HEALTH INSURANCE--0.59% Prudential Financial, Inc. 57,900 $ 2,723,616 ================================================================================================================= MANAGED HEALTH CARE--2.06% Anthem, Inc.(a)(b) 47,100 4,109,475 - ----------------------------------------------------------------------------------------------------------------- UnitedHealth Group Inc. 73,200 5,397,768 - ----------------------------------------------------------------------------------------------------------------- 9,507,243 ================================================================================================================= METAL & GLASS CONTAINERS--1.30% Ball Corp. 62,400 2,335,632 - ----------------------------------------------------------------------------------------------------------------- Pactiv Corp.(a) 158,200 3,678,150 - ----------------------------------------------------------------------------------------------------------------- 6,013,782 ================================================================================================================= MOTORCYCLE MANUFACTURERS--0.19% Harley-Davidson, Inc. 15,000 891,600 ================================================================================================================= MOVIES & ENTERTAINMENT--0.51% Walt Disney Co. (The) 103,700 2,338,435 ================================================================================================================= OIL & GAS DRILLING--1.64% Todco-Class A(a) 58,000 1,006,300 - ----------------------------------------------------------------------------------------------------------------- Transocean Ltd. (Cayman Islands)(a)(c) 183,600 6,569,208 - ----------------------------------------------------------------------------------------------------------------- 7,575,508 ================================================================================================================= OIL & GAS EQUIPMENT & SERVICES--2.23% BJ Services Co. 106,000 5,555,460 - ----------------------------------------------------------------------------------------------------------------- Cal Dive International, Inc.(a) 26,000 926,120 - ----------------------------------------------------------------------------------------------------------------- Halliburton Co. 41,900 1,411,611 - ----------------------------------------------------------------------------------------------------------------- Oil States International, Inc.(a) 53,000 991,100 - ----------------------------------------------------------------------------------------------------------------- Schlumberger Ltd. (Netherlands) 20,400 1,373,124 - ----------------------------------------------------------------------------------------------------------------- 10,257,415 ================================================================================================================= OIL & GAS EXPLORATION & PRODUCTION--1.80% Comstock Resources, Inc.(a) 68,000 1,422,560 - ----------------------------------------------------------------------------------------------------------------- Southwestern Energy Co.(a) 21,200 890,188 - ----------------------------------------------------------------------------------------------------------------- Spinnaker Exploration Co.(a) 40,100 1,405,104 - ----------------------------------------------------------------------------------------------------------------- Ultra Petroleum Corp. (Canada)(a) 39,900 1,957,095 - ----------------------------------------------------------------------------------------------------------------- XTO Energy, Inc. 81,300 2,640,624 - ----------------------------------------------------------------------------------------------------------------- 8,315,571 ================================================================================================================= OIL & GAS REFINING, MARKETING & TRANSPORTATION--0.21% Tsakos Energy Navigation Ltd. (Bermuda) 27,600 970,140 =================================================================================================================
F-7 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- OTHER DIVERSIFIED FINANCIAL SERVICES--3.55% Citigroup Inc. 182,000 $ 8,029,840 - ----------------------------------------------------------------------------------------------------------------- JPMorgan Chase & Co. 209,984 8,342,664 - ----------------------------------------------------------------------------------------------------------------- 16,372,504 ================================================================================================================= PACKAGED FOODS & MEATS--0.33% Flowers Foods, Inc. 58,200 1,504,470 ================================================================================================================= PERSONAL PRODUCTS--0.68% Estee Lauder Cos. Inc. (The)-Class A 29,500 1,233,100 - ----------------------------------------------------------------------------------------------------------------- Gillette Co. (The) 45,700 1,907,518 - ----------------------------------------------------------------------------------------------------------------- 3,140,618 ================================================================================================================= PHARMACEUTICALS--1.46% Johnson & Johnson 17,400 980,142 - ----------------------------------------------------------------------------------------------------------------- Kos Pharmaceuticals, Inc.(a) 24,300 865,323 - ----------------------------------------------------------------------------------------------------------------- Medicis Pharmaceutical Corp.-Class A(b)(c) 30,300 1,182,912 - ----------------------------------------------------------------------------------------------------------------- Merck & Co. Inc. 20,600 679,800 - ----------------------------------------------------------------------------------------------------------------- Wyeth 80,600 3,014,440 - ----------------------------------------------------------------------------------------------------------------- 6,722,617 ================================================================================================================= PROPERTY & CASUALTY INSURANCE--1.13% ACE Ltd. (Cayman Islands) 129,800 5,199,788 ================================================================================================================= REGIONAL BANKS--0.97% East West Bancorp, Inc. 95,100 3,194,409 - ----------------------------------------------------------------------------------------------------------------- Hibernia Corp. - Class A 47,800 1,262,398 - ----------------------------------------------------------------------------------------------------------------- 4,456,807 ================================================================================================================= RESTAURANTS--1.97% CBRL Group, Inc. 84,600 3,052,368 - ----------------------------------------------------------------------------------------------------------------- CEC Entertainment Inc.(a) 56,850 2,089,238 - ----------------------------------------------------------------------------------------------------------------- Ruby Tuesday, Inc. 47,000 1,309,890 - ----------------------------------------------------------------------------------------------------------------- Yum! Brands, Inc. 64,400 2,618,504 - ----------------------------------------------------------------------------------------------------------------- 9,070,000 ================================================================================================================= SEMICONDUCTOR EQUIPMENT--0.16% Cabot Microelectronics Corp.(a) 20,400 739,500 =================================================================================================================
F-8 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS--2.12% Altera Corp.(a)(c) 121,200 $ 2,371,884 - ----------------------------------------------------------------------------------------------------------------- Intel Corp. 115,500 2,316,930 - ----------------------------------------------------------------------------------------------------------------- Linear Technology Corp. 37,900 1,373,496 - ----------------------------------------------------------------------------------------------------------------- Maxim Integrated Products, Inc. 19,000 803,510 - ----------------------------------------------------------------------------------------------------------------- Microchip Technology Inc. 48,000 1,288,320 - ----------------------------------------------------------------------------------------------------------------- National Semiconductor Corp.(a) 103,400 1,601,666 - ----------------------------------------------------------------------------------------------------------------- 9,755,806 ================================================================================================================= SOFT DRINKS--1.19% PepsiCo, Inc. 113,200 5,507,180 ================================================================================================================= SPECIALTY CHEMICALS--0.20% Ecolab Inc. 30,000 943,200 ================================================================================================================= SPECIALTY STORES--1.39% Rent-A-Center, Inc.(a) 55,750 1,441,695 - ----------------------------------------------------------------------------------------------------------------- Staples, Inc. 142,700 4,255,314 - ----------------------------------------------------------------------------------------------------------------- Steiner Leisure Ltd. (Bahamas)(a) 32,800 724,880 - ----------------------------------------------------------------------------------------------------------------- 6,421,889 ================================================================================================================= STEEL--0.17% Gibraltar Steel Corp. 21,900 791,904 ================================================================================================================= SYSTEMS SOFTWARE--5.20% Adobe Systems Inc. 35,300 1,746,291 - ----------------------------------------------------------------------------------------------------------------- Check Point Software Technologies Ltd. (Israel)(a) 39,900 677,103 - ----------------------------------------------------------------------------------------------------------------- Computer Associates International, Inc. 304,900 8,018,870 - ----------------------------------------------------------------------------------------------------------------- Microsoft Corp. 212,000 5,861,800 - ----------------------------------------------------------------------------------------------------------------- Oracle Corp.(a) 430,100 4,851,528 - ----------------------------------------------------------------------------------------------------------------- Symantec Corp.(a) 51,000 2,798,880 - ----------------------------------------------------------------------------------------------------------------- 23,954,472 ================================================================================================================= TECHNOLOGY DISTRIBUTORS--0.85% CDW Corp. 35,800 2,077,474 - ----------------------------------------------------------------------------------------------------------------- Global Imaging Systems, Inc.(a) 59,500 1,849,260 - ----------------------------------------------------------------------------------------------------------------- 3,926,734 ================================================================================================================= THRIFTS & MORTGAGE FINANCE--3.99% Doral Financial Corp. (Puerto Rico) 109,200 4,528,524 - ----------------------------------------------------------------------------------------------------------------- Fannie Mae 95,000 6,023,000 - ----------------------------------------------------------------------------------------------------------------- IndyMac Bancorp, Inc.(c) 60,000 2,172,000 - ----------------------------------------------------------------------------------------------------------------- MGIC Investment Corp. 22,500 1,497,375 - ----------------------------------------------------------------------------------------------------------------- Radian Group Inc. 41,500 1,918,545 - ----------------------------------------------------------------------------------------------------------------- Washington Mutual, Inc. 57,500 2,247,100 - ----------------------------------------------------------------------------------------------------------------- 18,386,544 =================================================================================================================
F-9 SEQ-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--0.40% MSC Industrial Direct Co., Inc.-Class A 54,100 $ 1,843,728 ================================================================================================================= TRUCKING--0.90% Landstar System, Inc.(a) 41,700 2,446,956 - ----------------------------------------------------------------------------------------------------------------- Old Dominion Freight Line, Inc.(a) 31,600 910,396 - ----------------------------------------------------------------------------------------------------------------- Overnite Corp. 25,000 785,750 - ----------------------------------------------------------------------------------------------------------------- 4,143,102 ================================================================================================================= Total Common Stocks & Other Equity Interests (Cost $364,066,980) 439,936,514 _________________________________________________________________________________________________________________ ================================================================================================================= MONEY MARKET FUNDS--2.74% Liquid Assets Portfolio-Institutional Class(d) 6,301,856 6,301,856 - ----------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(d) 6,301,856 6,301,856 - ----------------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $12,603,712) 12,603,712 ================================================================================================================= TOTAL INVESTMENTS--98.20% (excluding investments purchased with cash collateral from securities loaned) (Cost $376,670,692) 452,540,226 _________________________________________________________________________________________________________________ ================================================================================================================= INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--1.80% STIC Prime Portfolio-Institutional Class(d)(e) 8,297,650 8,297,650 - ----------------------------------------------------------------------------------------------------------------- Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $8,297,650) 8,297,650 ================================================================================================================= TOTAL INVESTMENTS--100.00% (Cost $384,968,342) $ 460,837,876 _________________________________________________________________________________________________________________ =================================================================================================================
Investment Abbreviation: ADR American Depositary Receipt Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for security lending transactions at September 30, 2004. (c) A portion of this security is subject to call options written. See Note 1C and Note 4. (d) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (e) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. See accompanying notes which are an integral part of this schedule. F-10 SEQ-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted. A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may F-11 SEQ-QTR-1 A. SECURITY VALUATIONS (CONTINUED) include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. COVERED CALL OPTIONS -- The Fund may write call options, on a covered basis; that is, the Fund will own the underlying security. When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability. The amount of the liability is subsequently "marked-to-market" to reflect the current market value of the option written. The current market value of a written option is the mean between the last bid and asked prices on that day. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. A risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission ("SEC"), to invest daily available cash balances and cash collateral from securities lending transactions in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. F-12 SEQ-QTR-1 NOTE 2--INVESTMENTS IN AFFILIATES (CONTINUED) INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
MARKET PROCEEDS UNREALIZED MARKET REALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND GAIN FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME (LOSS) - ---------------------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio-- Institutional Class $ 8,261,408 $35,939,298 $(37,898,850) $ -- $ 6,301,856 $ 67,652 $ -- - ---------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-- Institutional Class 8,261,408 35,939,298 (37,898,850) -- 6,301,856 65,557 -- - ---------------------------------------------------------------------------------------------------------------------------------- $16,522,816 $71,878,596 $(75,797,700) $ -- $12,603,712 $133,209 $ -- ==================================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
MARKET PROCEEDS UNREALIZED MARKET REALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND GAIN FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME (LOSS) - ---------------------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio-- Institutional Class $11,874,485 $ 50,207,098 $ (62,081,583) $ -- $ -- $ 3,948 $ -- - ---------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-- Institutional Class -- 12,949,888 (4,652,238) -- 8,297,650 3,978 -- - ---------------------------------------------------------------------------------------------------------------------------------- $11,874,485 $ 63,156,986 $ (66,733,821) $ -- $ 8,297,650 $ 7,926 $ -- ================================================================================================================================== $28,397,301 $135,035,582 $(142,531,521) $ -- $20,901,362 $141,135 $ -- __________________________________________________________________________________________________________________________________ ==================================================================================================================================
* Dividend income is net of income rebate paid to security lending counterparties. F-13 SEQ-QTR-1 NOTE 3 - PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to a loss on the collateral invested. At September 30, 2004, securities with an aggregate value of $8,064,317 were on loan to brokers. The loans were secured by cash collateral of $8,297,650 received by the Fund and subsequently invested in affiliated money market funds. For the nine months ended September 30, 2004, the Fund received dividends on cash collateral net of income rebate paid to counterparties of $7,926 for securities lending transactions. NOTE 4 - OPTION CONTRACTS WRITTEN TRANSACTIONS DURING THE PERIOD
CALL OPTION CONTRACTS ---------------------------------------- NUMBER OF PREMIUMS CONTRACTS RECEIVED ----------------- ---------------- Beginning of period -- $ -- - -------------------------------------------------------------------------------- Written 6,401 587,108 - -------------------------------------------------------------------------------- Closed (263) (107,039) - -------------------------------------------------------------------------------- Exercised (1,246) (72,605) - -------------------------------------------------------------------------------- Expired (1,891) (103,658) - -------------------------------------------------------------------------------- End of period 3,001 $ 303,806 ================================================================================
F-14 SEQ-QTR-1 OPEN OPTIONS WRITTEN AT PERIOD END
SEPTEMBER 30, 2004 UNREALIZED CONTRACT STRIKE NUMBER OF PREMIUMS MARKET APPRECIATION MONTH PRICE CONTRACTS RECEIVED VALUE (DEPRECIATION) - ---------------------------------------------------------------------------------------------------------------------------- ISSUE Altera Corp. Oct-04 $ 20.0 600 $ 43,799 $ 30,000 $ 13,799 - ---------------------------------------------------------------------------------------------------------------------------- Baush & Lomb Inc. Oct-04 65.0 432 141,261 91,800 49,461 - ---------------------------------------------------------------------------------------------------------------------------- Equifax Inc. Oct-04 25.0 484 25,651 71,390 (45,739) - ---------------------------------------------------------------------------------------------------------------------------- FLIR Systems Oct-04 65.0 60 7,620 900 6,720 - ---------------------------------------------------------------------------------------------------------------------------- HealthExtras, Inc. Oct-04 15.0 475 15,726 10,688 5,038 - ---------------------------------------------------------------------------------------------------------------------------- IndyMac Bancorp, Inc. Oct-04 35.0 600 58,199 90,000 (31,801) - ---------------------------------------------------------------------------------------------------------------------------- Medicis Pharmaceutical Corp.- Class A Oct-04 40.0 150 6,450 7,125 (675) - ---------------------------------------------------------------------------------------------------------------------------- Transocean Ltd. Oct-04 35.0 100 3,800 13,500 (9,700) - ---------------------------------------------------------------------------------------------------------------------------- Transocean Ltd. Nov-04 40.0 100 1,300 4,000 (2,700) - ---------------------------------------------------------------------------------------------------------------------------- 3,001 $ 303,806 $ 319,403 ($ 15,597) ============================================================================================================================ Total outstanding options written 3,001 $ 303,806 $ 319,403 ($ 15,597) ____________________________________________________________________________________________________________________________ ============================================================================================================================
NOTE 5 - INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $133,584,395 and $217,115,306, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS
Aggregate unrealized appreciation of investment securities $ 90,907,472 - ----------------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of investment securities (17,320,403) - ----------------------------------------------------------------------------------------- Net unrealized appreciation of investment securities $ 73,587,069 =========================================================================================
Cost of investments for tax purposes is $387,250,807. F-15 SEQ-QTR-1 AIM SMALL CAP EQUITY FUND Quarterly Schedule of Portfolio Holdings o September 30, 2004 YOUR GOALS. OUR SOLUTIONS. [AIM INVESTMENTS LOGO APPEARS HERE] --Registered Trademark-- --Registered Trademark-- AIMinvestments.com SCE-QTR-1 9/04 A I M Advisors, Inc. SCHEDULE OF INVESTMENTS September 30, 2004 (Unaudited)
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS & OTHER EQUITY INTERESTS--90.46% ADVERTISING--0.99% R.H. Donnelley Corp.(a) 99,700 $ 4,921,192 =================================================================================================================================== AEROSPACE & DEFENSE--1.86% Alliant Techsystems Inc.(a) 75,900 4,591,950 - ----------------------------------------------------------------------------------------------------------------------------------- Curtiss-Wright Corp. 81,800 4,681,414 - ----------------------------------------------------------------------------------------------------------------------------------- 9,273,364 =================================================================================================================================== AIR FREIGHT & LOGISTICS--2.14% EGL, Inc.(a) 153,000 4,629,780 - ----------------------------------------------------------------------------------------------------------------------------------- UTI Worldwide, Inc. (United Kingdom) 102,500 6,028,025 - ----------------------------------------------------------------------------------------------------------------------------------- 10,657,805 =================================================================================================================================== ALUMINUM--0.50% Century Aluminum Co.(a) 90,000 2,495,700 =================================================================================================================================== APPAREL RETAIL--4.61% Aeropostale, Inc.(a) 152,850 4,004,670 - ----------------------------------------------------------------------------------------------------------------------------------- Cache, Inc.(a) 347,250 5,208,750 - ----------------------------------------------------------------------------------------------------------------------------------- Finish Line, Inc. (The)-Class A 75,700 2,340,644 - ----------------------------------------------------------------------------------------------------------------------------------- Genesco Inc.(a) 97,600 2,298,480 - ----------------------------------------------------------------------------------------------------------------------------------- Men's Wearhouse, Inc. (The)(a) 159,200 4,624,760 - ----------------------------------------------------------------------------------------------------------------------------------- Stage Stores, Inc.(a) 131,700 4,506,774 - ----------------------------------------------------------------------------------------------------------------------------------- 22,984,078 =================================================================================================================================== APPAREL, ACCESSORIES & LUXURY GOODS--1.05% Quiksilver, Inc.(a) 205,300 5,218,726 =================================================================================================================================== APPLICATION SOFTWARE--2.53% ANSYS, Inc.(a) 49,500 2,461,635 - ----------------------------------------------------------------------------------------------------------------------------------- Hyperion Solutions Corp.(a) 120,700 4,102,593 - ----------------------------------------------------------------------------------------------------------------------------------- Kronos Inc.(a) 51,900 2,298,651 - ----------------------------------------------------------------------------------------------------------------------------------- MICROS Systems, Inc.(a) 74,643 3,737,375 - ----------------------------------------------------------------------------------------------------------------------------------- 12,600,254 ===================================================================================================================================
F-1 SCE-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- ASSET MANAGEMENT & CUSTODY BANKS--0.86% Affiliated Managers Group, Inc.(a)(b) 80,400 $ 4,304,616 =================================================================================================================================== BIOTECHNOLOGY--1.30% Serologicals Corp.(a)(b) 277,100 6,464,743 =================================================================================================================================== BUILDING PRODUCTS--0.45% NCI Building Systems, Inc.(a) 70,700 2,255,330 =================================================================================================================================== CASINOS & GAMING--0.97% Argosy Gaming Co.(a) 122,900 4,817,680 =================================================================================================================================== COMMERCIAL PRINTING--0.46% Banta Corp. 58,000 2,305,500 =================================================================================================================================== COMMUNICATIONS EQUIPMENT--1.73% CommScope, Inc.(a) 226,500 4,892,400 - ----------------------------------------------------------------------------------------------------------------------------------- Inter-Tel, Inc. 171,628 3,710,597 - ----------------------------------------------------------------------------------------------------------------------------------- 8,602,997 =================================================================================================================================== COMPUTER HARDWARE--0.47% Intergraph Corp.(a) 86,900 2,361,073 =================================================================================================================================== COMPUTER STORAGE & PERIPHERALS--0.96% Synaptics Inc.(a) 130,400 2,628,864 - ----------------------------------------------------------------------------------------------------------------------------------- UNOVA, Inc.(a) 153,100 2,151,055 - ----------------------------------------------------------------------------------------------------------------------------------- 4,779,919 =================================================================================================================================== CONSTRUCTION & ENGINEERING--0.91% Chicago Bridge & Iron Co. N.V.-New York Shares (Netherlands) 151,700 4,549,483 =================================================================================================================================== CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--2.15% Wabash National Corp.(a)(b) 213,600 5,867,592 - ----------------------------------------------------------------------------------------------------------------------------------- Wabtec Corp. 257,800 4,818,282 - ----------------------------------------------------------------------------------------------------------------------------------- 10,685,874 =================================================================================================================================== DIVERSIFIED COMMERCIAL SERVICES--4.28% Corrections Corp. of America(a) 147,300 5,208,528 - ----------------------------------------------------------------------------------------------------------------------------------- Jackson Hewitt Tax Service Inc. 285,000 5,765,550 - ----------------------------------------------------------------------------------------------------------------------------------- Navigant Consulting, Inc.(a) 260,000 5,709,600 - ----------------------------------------------------------------------------------------------------------------------------------- NCO Group, Inc.(a) 171,900 4,632,705 - ----------------------------------------------------------------------------------------------------------------------------------- 21,316,383 ===================================================================================================================================
F-2 SCE-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED METALS & MINING--1.17% Compass Minerals International, Inc.(b) 263,400 $ 5,847,480 =================================================================================================================================== ELECTRONIC EQUIPMENT MANUFACTURERS--0.99% Paxar Corp.(a) 217,300 4,928,364 =================================================================================================================================== ENVIRONMENTAL SERVICES--0.97% Waste Connections, Inc.(a) 152,400 4,828,032 =================================================================================================================================== GAS UTILITIES--0.45% New Jersey Resources Corp. 53,800 2,227,320 =================================================================================================================================== HEALTH CARE DISTRIBUTORS--0.42% PSS World Medical, Inc.(a) 207,000 2,078,280 =================================================================================================================================== HEALTH CARE EQUIPMENT--2.16% Datascope Corp. 54,388 2,028,672 - ----------------------------------------------------------------------------------------------------------------------------------- Invacare Corp. 101,800 4,682,800 - ----------------------------------------------------------------------------------------------------------------------------------- Varian Inc.(a) 106,300 4,025,581 - ----------------------------------------------------------------------------------------------------------------------------------- 10,737,053 =================================================================================================================================== HEALTH CARE FACILITIES--2.72% Genesis HealthCare Corp.(a) 71,800 2,183,438 - ----------------------------------------------------------------------------------------------------------------------------------- Kindred Healthcare, Inc.(a) 177,800 4,338,320 - ----------------------------------------------------------------------------------------------------------------------------------- United Surgical Partners International, Inc.(a)(b) 64,225 2,206,129 - ----------------------------------------------------------------------------------------------------------------------------------- VCA Antech, Inc.(a)(b) 233,400 4,815,042 - ----------------------------------------------------------------------------------------------------------------------------------- 13,542,929 =================================================================================================================================== HEALTH CARE SERVICES--0.95% Apria Healthcare Group Inc.(a) 174,500 4,755,125 =================================================================================================================================== HEALTH CARE SUPPLIES--1.86% Advanced Medical Optics, Inc.(a)(b) 120,400 4,764,228 - ----------------------------------------------------------------------------------------------------------------------------------- Sybron Dental Specialties, Inc.(a) 151,500 4,498,035 - ----------------------------------------------------------------------------------------------------------------------------------- 9,262,263 =================================================================================================================================== HOTELS, RESORTS & CRUISE LINES--1.87% Kerzner International Ltd. (Bahamas)(a) 111,100 4,885,067 - ----------------------------------------------------------------------------------------------------------------------------------- La Quinta Corp.(a) 571,100 4,454,580 - ----------------------------------------------------------------------------------------------------------------------------------- 9,339,647 =================================================================================================================================== HOUSEHOLD PRODUCTS--0.66% Rayovac Corp.(a)(b) 125,600 3,309,560 ===================================================================================================================================
F-3 SCE-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOUSEWARES & SPECIALTIES--2.20% Jarden Corp.(a) 166,900 $ 6,090,181 - ----------------------------------------------------------------------------------------------------------------------------------- Yankee Candle Co., Inc. (The)(a) 168,700 4,885,552 - ----------------------------------------------------------------------------------------------------------------------------------- 10,975,733 =================================================================================================================================== INDUSTRIAL GASES--0.81% Airgas, Inc. 168,300 4,050,981 =================================================================================================================================== INDUSTRIAL MACHINERY--1.92% Kaydon Corp. 78,800 2,267,076 - ----------------------------------------------------------------------------------------------------------------------------------- Kennametal Inc. 108,300 4,889,745 - ----------------------------------------------------------------------------------------------------------------------------------- Manitowoc Co., Inc. (The) 67,900 2,407,734 - ----------------------------------------------------------------------------------------------------------------------------------- 9,564,555 =================================================================================================================================== INSURANCE BROKERS--1.52% Hilb Rogal & Hobbs Co. 91,700 3,321,374 - ----------------------------------------------------------------------------------------------------------------------------------- U.S.I. Holdings Corp.(a)(b) 310,200 4,234,230 - ----------------------------------------------------------------------------------------------------------------------------------- 7,555,604 =================================================================================================================================== INTERNET SOFTWARE & SERVICES--0.49% Digitas Inc.(a) 318,600 2,462,778 =================================================================================================================================== INVESTMENT BANKING & BROKERAGE--0.90% CMET Finance Holdings, Inc. (Acquired 12/08/03; Cost $4,480,000)(a)(c)(d) 44,800 4,480,000 =================================================================================================================================== INVESTMENT COMPANIES - EXCHANGE TRADED FUNDS--1.42% iShares Nasdaq Biotechnology Index Fund(a)(b) 101,000 7,070,000 =================================================================================================================================== IT CONSULTING & OTHER SERVICES--0.47% CACI International Inc.-Class A(a) 44,600 2,353,988 =================================================================================================================================== LEISURE PRODUCTS--0.75% Steinway Musical Instruments, Inc.(a) 137,400 3,737,280 =================================================================================================================================== LIFE & HEALTH INSURANCE--1.29% American Medical Security Group, Inc.(a) 200,600 6,417,194 =================================================================================================================================== MANAGED HEALTH CARE--1.05% AMERIGROUP Corp.(a) 44,100 2,480,625 - ----------------------------------------------------------------------------------------------------------------------------------- Sierra Health Services, Inc.(a) 57,000 2,732,010 - ----------------------------------------------------------------------------------------------------------------------------------- 5,212,635 =================================================================================================================================== METAL & GLASS CONTAINERS--0.88% AptarGroup, Inc. 100,200 4,405,794 ===================================================================================================================================
F-4 SCE-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- MULTI-UTILITIES & UNREGULATED POWER--1.14% Avista Corp. 124,900 $ 2,260,690 - ----------------------------------------------------------------------------------------------------------------------------------- Energen Corp. 66,400 3,422,920 - ----------------------------------------------------------------------------------------------------------------------------------- 5,683,610 =================================================================================================================================== OFFICE SERVICES & SUPPLIES--0.47% Brady Corp.-Class A 48,000 2,340,960 =================================================================================================================================== OIL & GAS EQUIPMENT & SERVICES--0.80% FMC Technologies, Inc.(a) 119,300 3,984,620 =================================================================================================================================== OIL & GAS EXPLORATION & PRODUCTION--2.56% Comstock Resources, Inc.(a) 140,000 2,928,800 - ----------------------------------------------------------------------------------------------------------------------------------- Plains Exploration & Production Co.(a) 173,100 4,130,166 - ----------------------------------------------------------------------------------------------------------------------------------- Southwestern Energy Co.(a) 135,400 5,685,446 - ----------------------------------------------------------------------------------------------------------------------------------- 12,744,412 =================================================================================================================================== OIL & GAS REFINING, MARKETING & TRANSPORTATION--1.82% Golar LNG Ltd. (Bermuda)(a)(e) 191,600 3,039,980 - ----------------------------------------------------------------------------------------------------------------------------------- Tsakos Energy Navigation Ltd. (Bermuda) 171,400 6,024,710 - ----------------------------------------------------------------------------------------------------------------------------------- 9,064,690 =================================================================================================================================== PACKAGED FOODS & MEATS--0.91% Flowers Foods, Inc. 174,900 4,521,165 =================================================================================================================================== PAPER PRODUCTS--0.96% Wausau-Mosinee Paper Corp. 287,600 4,788,540 =================================================================================================================================== PHARMACEUTICALS--0.78% Axcan Pharma Inc. (Canada)(a)(b) 250,700 3,908,413 =================================================================================================================================== PROPERTY & CASUALTY INSURANCE--0.92% Philadelphia Consolidated Holding Corp.(a) 83,500 4,602,520 =================================================================================================================================== REAL ESTATE--3.54% Alexandria Real Estate Equities, Inc. 35,300 2,319,916 - ----------------------------------------------------------------------------------------------------------------------------------- Amli Residential Properties Trust 72,000 2,199,600 - ----------------------------------------------------------------------------------------------------------------------------------- Fieldstone Investment Corp. (Acquired 11/10/03- 11/11/03; Cost $4,704,275)(d) 311,300 5,292,100 - ----------------------------------------------------------------------------------------------------------------------------------- JER Investors Trust Inc. (Acquired 05/27/04; Cost $4,359,000)(a)(d) 290,600 4,359,000 - ----------------------------------------------------------------------------------------------------------------------------------- New York Mortgage Trust, Inc.(a) 372,500 3,482,875 - ----------------------------------------------------------------------------------------------------------------------------------- 17,653,491 ===================================================================================================================================
F-5 SCE-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- REAL ESTATE MANAGEMENT & DEVELOPMENT--1.04% Jones Lang LaSalle Inc.(a) 157,250 $ 5,190,823 =================================================================================================================================== REGIONAL BANKS--4.02% Alabama National BanCorp. 74,700 4,472,289 - ----------------------------------------------------------------------------------------------------------------------------------- Bank of the Ozarks, Inc. 19,200 570,816 - ----------------------------------------------------------------------------------------------------------------------------------- Boston Private Financial Holdings, Inc. 87,700 2,188,992 - ----------------------------------------------------------------------------------------------------------------------------------- Cathay General Bancorp 79,400 2,952,886 - ----------------------------------------------------------------------------------------------------------------------------------- CVB Financial Corp. 80,610 1,791,154 - ----------------------------------------------------------------------------------------------------------------------------------- Hancock Holding Co. 40,015 1,272,077 - ----------------------------------------------------------------------------------------------------------------------------------- Hudson United Bancorp 61,000 2,247,850 - ----------------------------------------------------------------------------------------------------------------------------------- MB Financial, Inc. 58,300 2,311,012 - ----------------------------------------------------------------------------------------------------------------------------------- Wintrust Financial Corp. 39,100 2,239,648 - ----------------------------------------------------------------------------------------------------------------------------------- 20,046,724 =================================================================================================================================== RESTAURANTS--0.96% Lone Star Steakhouse & Saloon, Inc. 94,300 2,435,769 - ----------------------------------------------------------------------------------------------------------------------------------- Papa John's International, Inc.(a) 76,200 2,337,816 - ----------------------------------------------------------------------------------------------------------------------------------- 4,773,585 =================================================================================================================================== SEMICONDUCTOR EQUIPMENT--1.95% Axcelis Technologies, Inc.(a) 420,800 3,484,224 - ----------------------------------------------------------------------------------------------------------------------------------- Cabot Microelectronics Corp.(a)(b) 107,000 3,878,750 - ----------------------------------------------------------------------------------------------------------------------------------- Cymer, Inc.(a) 81,400 2,332,924 - ----------------------------------------------------------------------------------------------------------------------------------- 9,695,898 =================================================================================================================================== SEMICONDUCTORS--0.48% Semtech Corp.(a) 123,400 2,365,578 =================================================================================================================================== SPECIALTY CHEMICALS--2.01% Albemarle Corp. 135,000 4,737,150 - ----------------------------------------------------------------------------------------------------------------------------------- Minerals Technologies Inc. 89,250 5,253,255 - ----------------------------------------------------------------------------------------------------------------------------------- 9,990,405 =================================================================================================================================== STEEL--1.04% Commercial Metals Co. 129,800 5,155,656 =================================================================================================================================== TECHNOLOGY DISTRIBUTORS--2.85% Anixter International Inc. 127,700 4,480,993 - ----------------------------------------------------------------------------------------------------------------------------------- Global Imaging Systems, Inc.(a)(b) 147,300 4,578,084 - ----------------------------------------------------------------------------------------------------------------------------------- ScanSource, Inc.(a) 80,700 5,148,660 - ----------------------------------------------------------------------------------------------------------------------------------- 14,207,737 ===================================================================================================================================
F-6 SCE-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE--1.36% Corus Bankshares, Inc. 51,600 $ 2,225,508 - ----------------------------------------------------------------------------------------------------------------------------------- Harbor Florida Bancshares, Inc. 71,700 2,229,870 - ----------------------------------------------------------------------------------------------------------------------------------- Sterling Financial Corp.(a) 65,900 2,322,316 - ----------------------------------------------------------------------------------------------------------------------------------- 6,777,694 =================================================================================================================================== TIRES & RUBBER--0.43% Bandag, Inc. 48,800 2,137,440 =================================================================================================================================== TRADING COMPANIES & DISTRIBUTORS--0.91% Watsco, Inc. 150,600 4,522,518 =================================================================================================================================== TRUCKING--3.37% Dollar Thrifty Automotive Group, Inc.(a) 187,500 4,561,875 - ----------------------------------------------------------------------------------------------------------------------------------- Landstar System, Inc.(a)(b) 97,000 5,691,960 - ----------------------------------------------------------------------------------------------------------------------------------- Overnite Corp. 207,400 6,518,582 - ----------------------------------------------------------------------------------------------------------------------------------- 16,772,417 =================================================================================================================================== Total Common Stocks & Other Equity Interests (Cost $378,188,894) 450,666,208 ===================================================================================================================================
PRINCIPAL AMOUNT - ----------------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY BILLS--0.20% 1.57%, 12/16/04 (Cost $996,685)(f)(g) $ 1,000,000 996,680 ===================================================================================================================================
SHARES - ----------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS--1.75% Liquid Assets Portfolio-Institutional Class(h) 4,361,198 4,361,198 - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(h) 4,361,198 4,361,198 - ----------------------------------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $8,722,396) 8,722,396 =================================================================================================================================== TOTAL INVESTMENTS--92.41% (excluding investments purchased with cash collateral from securities loaned) (Cost $387,907,975) 460,385,284 ===================================================================================================================================
F-7 SCE-QTR-1
MARKET SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED MONEY MARKET FUNDS--7.59% Liquid Assets Portfolio-Institutional Class(h)(i) 18,912,352 $ 18,912,352 - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-Institutional Class(h)(i) 18,912,352 18,912,352 - ----------------------------------------------------------------------------------------------------------------------------------- Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $37,824,704) 37,824,704 =================================================================================================================================== TOTAL INVESTMENTS--100.00% (Cost $425,732,679) $498,209,988 ___________________________________________________________________________________________________________________________________ ===================================================================================================================================
Notes to Schedule of Investments: (a) Non-income producing security. (b) All or a portion of this security has been pledged as collateral for security lending transactions at September 30, 2004. (c) Security fair valued in good faith in accordance with the procedures established by the Board of Trustees. The market value of this security at September 30, 2004 represented 0.90% of the Fund's Total Investments. See Note 1A. (d) Security not registered under the Securities Act of 1933, as amended (e.g., the security was purchased in a Rule 144A transaction or a Regulation D transaction). The security may be resold only pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The Fund has no rights to demand registration of these securities. The aggregate market value of these securities at September 30, 2004 was $14,131,100 , which represented 2.84 % of the Fund's Total Investments. These Securities are considered to be illiquid. (e) In accordance with procedures established by the Board of Trustees, the foreign security is fair valued using adjusted closing market prices. The market value of this security at September 30, 2004 represented 0.61% of the Fund's Total Investments. See Note 1A. (f) Security traded on a discount basis. In such case, the interest rate shown represents the discount rate at the time of purchase by the Fund. (g) In accordance with the procedures established by the Board of Trustees, security fair valued based on an evaluated quote provided by an independent pricing service. The market value of this security at September 30, 2004 represented 0.20% of the Fund's Total Investments. See Note 1A. F-8 SCE-QTR-1 (h) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 2. (i) The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 3. See accompanying notes which are an integral part of this schedule. F-9 SCE-QTR-1 NOTES TO QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS September 30, 2004 (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted. A. SECURITY VALUATIONS -- Security Valuations -- Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued on the basis of prices furnished by independent pricing services or market makers. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE"). Investments in open-end registered investment companies and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded. Debt obligations (including convertible bonds) are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund's shares are determined as of the close of the respective markets. Events affecting the values of such foreign securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the Fund's net asset value. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current market value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures and exchange-traded funds. Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers F-10 SCE-QTR-1 A. SECURITY VALUATIONS (CONTINUED) and other market data may be reviewed in the course of making a good faith determination of a security's fair value. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the advisor. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. C. 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, the Fund pays an option premium. The option's underlying instrument may be a security or a futures contract. Put options may be used by the 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. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. D. 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 (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from, (i) sales of foreign currencies, (ii) currency gains or losses realized between the trade and settlement dates on securities transactions, and (iii) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. E. FUTURES CONTRACTS -- The Fund may purchase or sell futures contracts as a hedge against changes in market conditions. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are made or received depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. If the Fund were F-11 SCE-QTR-1 E. FUTURES CONTRACTS (CONTINUED) unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. NOTE 2--INVESTMENTS IN AFFILIATES The Fund is permitted, pursuant to an exemptive order from the Securities and Exchange Commission ("SEC"), to invest daily available cash balances and cash collateral from securities lending transactions in affiliated money market funds. The Fund and the money market funds below have the same investment advisor and therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated money market funds for the nine months ended September 30, 2004. INVESTMENTS OF DAILY AVAILABLE CASH BALANCES:
UNREALIZED MARKET PROCEEDS APPRECIATION MARKET REALIZED VALUE PURCHASES FROM VALUE DIVIDEND (LOSS) FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME GAIN - ----------------------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio-- Institutional Class $10,035,910 $105,667,529 $(111,342,241) $ -- $4,361,198 $ 60,086 $ -- - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-- Institutional Class 10,035,910 105,667,529 (111,342,241) -- 4,361,198 58,158 -- - ----------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL $20,071,820 $211,335,058 $(222,684,482) $ -- $8,722,396 $118,244 $ -- ===================================================================================================================================
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LENDING TRANSACTIONS:
MARKET PROCEEDS UNREALIZED MARKET REALIZED VALUE PURCHASES FROM APPRECIATION VALUE DIVIDEND (LOSS) FUND 12/31/03 AT COST SALES (DEPRECIATION) 09/30/04 INCOME* GAIN - ----------------------------------------------------------------------------------------------------------------------------------- Liquid Assets Portfolio-- Institutional Class $34,938,267 $ 57,701,610 $ (73,727,525) $ -- $18,912,352 $ 46,257 $ -- - ----------------------------------------------------------------------------------------------------------------------------------- STIC Prime Portfolio-- Institutional Class 34,938,266 57,701,611 (73,727,525) -- 18,912,352 44,700 -- - ----------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL $69,876,533 $115,403,221 $(147,455,050) $ -- $37,824,704 $ 90,957 $ -- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL $89,948,353 $326,738,279 $(370,139,532) $ -- $46,547,100 $209,201 $ -- ___________________________________________________________________________________________________________________________________ ===================================================================================================================================
* Dividend income is net of income rebate paid to security lending counterparties. NOTE 3--PORTFOLIO SECURITIES LOANED The Fund may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to a loss on the collateral invested. F-12 SCE-QTR-1 NOTE 3--PORTFOLIO SECURITIES LOANED (CONTINUED) At September 30, 2004, securities with an aggregate value of $37,392,178 were on loan to brokers. The loans were secured by cash collateral of $37,824,704 received by the Fund and subsequently invested in affiliated money market funds. For the nine months ended September 30, 2004, the Fund received dividends on cash collateral net of income rebate paid to counterparties $90,957 for securities lending transactions. NOTE 4--INVESTMENT SECURITIES The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the nine months ended September 30, 2004 was $526,872,227 and $572,687,610, respectively. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS Aggregate unrealized appreciation of investment securities $ 77,631,665 - ------------------------------------------------------------------------------- Aggregate unrealized (depreciation) of Investment securities (6,084,579) - ------------------------------------------------------------------------------- Net unrealized appreciation of investment securities $ 71,547,086 ===============================================================================
Cost of investments for tax purposes is $426,662,902. F-13 SCE-QTR-1 Item 2. Controls and Procedures. (a) As of September 21, 2004, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officers ("PEO") and Principal Financial Officer ("PFO"), to assess the effectiveness of the Registrant's disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 ("Act"), as amended. Based on that evaluation, the Registrant's officers, including the PFO and PEO, concluded that, as of September 21, 2004, the Registrant's disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. (b) There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. However, on September 20, 2004, the Registrant appointed a Chief Compliance Officer ("Registrant CCO") who reports to the Registrant's Board of Trustees. The Registrant CCO also serves as Chief Compliance Officer of A I M Advisors, Inc. ("AIM"), the investment advisor for the series portfolios of the Registrant. The Registrant CCO is a member of the Disclosure Controls Committee ("DCC") for the Registrant, which reports to the Registrant's Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"). The DCC is made up of employees of AIM some of whom are officers of the Registrant. Among other things, the DCC assists the PEO and PFO in their responsibilities related to internal control over financial reporting. The addition of the Registrant CCO is expected to enhance the Registrant's internal control over financial reporting. Item 3. Exhibits. Certifications of PEO and PFO as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: AIM Funds Group By: /s/ ROBERT H. GRAHAM --------------------------- Robert H. Graham Principal Executive Officer Date: November 29, 2004 Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ ROBERT H. GRAHAM --------------------------- Robert H. Graham Principal Executive Officer Date: November 29, 2004 By: /s/ SIDNEY M. DILGREN --------------------------- Sidney M. Dilgren Principal Financial Officer Date: November 29, 2004 EXHIBIT INDEX Certifications of Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO") as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended. EX-99.CERT 2 h19670exv99wcert.txt CERTIFICATIONS PURSUANT TO SECTION 302 I, Robert H. Graham, Principal Executive Officer, certify that: 1. I have reviewed this report on Form N-Q of AIM Funds Group; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in this registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 29, 2004 /s/ ROBERT H. GRAHAM --------------------------------------------- Robert H. Graham, Principal Executive Officer I, Sidney M. Dilgren, Principal Financial Officer, certify that: 1. I have reviewed this report on Form N-Q of AIM Funds Group; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in this registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 29, 2004 /s/ SIDNEY M. DILGREN ---------------------------------------------- Sidney M. Dilgren, Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----