Aim Stock Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-1474

AIM Stock Funds

(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: 7/31

Date of reporting period: 1/31/04

INVESCO Dynamics Fund

Semiannual Report to Shareholders - January 31, 2004

COVER IMAGE

Your goals. Our solutions.^SM

AIM Logo^SM

INVESCO DYNAMICS FUND seeks to provide long-term capital growth.

n Unless otherwise stated, information presented is as of 1/31/04 and is based on total net assets.

About share classes

n Effective 9/30/03, Class B shares are not available as an investment for retirement plans maintained pursuant to Section 401 of the Internal Revenue Code, including 401(k) plans, money purchase pension plans and profit sharing plans. Plans that have existing accounts invested in Class B shares will continue to be allowed to make additional purchases.

n Class K shares are available only to certain retirement plans. Please see the prospectus for more details.

n Investor Class shares are closed to most investors. For more information on who may continue to invest in the Investor Class shares, please see the appropriate prospectus.

Principal risks of investing in the fund

n At any given time, the fund may be subject to sector risk, which means a certain sector may underperform other sectors or the market as a whole. The fund is not limited with respect to the sectors in which it can invest.

n Investing in micro, small and mid-sized companies involves risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity.

n International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values of other currencies, the custody arrangements made for the fund’s foreign holdings, differences in accounting, political risks and the lesser degree of public information required to be provided by non-U.S. companies. The fund may invest up to 25% of its assets in the securities of non-U.S. issuers. Securities of Canadian issuers and American Depository Receipts are not subject to this 25% limitation.

About indexes used in this report

n The unmanaged Standard & Poor’s MidCap 400 Index (the S&P 400) represents the performance of mid-capitalization stocks.

n The unmanaged Russell Midcap^® Growth Index is a subset of the Russell Midcap Index, which represents the performance of the stocks of domestic mid-capitalization companies; the Growth subset measures the performance of Russell Midcap companies with higher price/book ratios and higher forecasted growth values.

n The unmanaged Lipper Mid-Cap Growth Fund Index represents an average of the performance of the 30 largest mid-capitalization growth funds tracked by Lipper, Inc., an independent mutual fund performance monitor.

n The unmanaged Standard & Poor’s Composite Index of 500 Stocks (the S&P 500^® Index) is an index of common stocks frequently used as a general measure of U.S. stock market performance.

n A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of an index of funds reflects fund expenses; performance of a market index does not.

n The fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the fund may deviate significantly from the performance of the indexes.

Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor’s.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, AIMinvestments.com.

This report must be accompanied or preceded by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Read it carefully before you invest.

Not FDIC Insured    May lose value    No bank guarantee

AIMinvestments.com

TO OUR SHAREHOLDERS

GRAHAM PHOTO

Robert H. Graham

Dear Fellow Shareholder in The AIM Family of Funds^®:

Major stock market indexes here and abroad delivered positive performance during the six months covered by this report. As is historically the case, bond market returns were more modest, but positive as well. The U.S. economy appears to have turned a corner, with solid growth in gross domestic product during the third and fourth quarters of 2003. Overseas, particularly in Europe, economic performance picked up during the second half of 2003.

Investors in the United States seem to have regained their confidence. They added $43.8 billion to U.S. stock mutual funds in January 2004 and $496 million to bond funds. By contrast, money market funds, considered a safe haven because of their emphasis on stability of net asset value, suffered large net outflows during the month. As the reporting period closed, total mutual fund assets stood at a record $7.54 trillion.

The durability of these trends is, of course, unpredictable, and we caution our shareholders against thinking that 2004 will see a rerun of the markets’ good performance during 2003. That said, it is also true that the economy appears to have the wind at its back in terms of fiscal, monetary and tax stimulus, and corporate earnings have been strong.

What should investors do? They should do what we have always urged: Keep their eyes on their long-term goals, keep their portfolios diversified, and work with their financial advisors to tailor their investments to their risk tolerance and investment objectives. We cannot overemphasize the importance of professional guidance when it comes to selecting investments.

For information on your fund’s performance and management during the reporting period, please see the management discussion that begins on the following page.

Visit our Web site

As you are aware, the mutual fund industry and AIM Investments have been the subject of allegations and investigations of late surrounding the issues of market timing and late trading in funds. We understand how unsettling this may be for many of our shareholders. We invite you to visit AIMinvestments.com, our Web site, often. We will continue to post updates on these issues as information becomes available.

The Securities and Exchange Commission, which regulates our industry, has already proposed new rules and regulations, and is planning to propose several more, that address the issues of market timing and late trading, among others. The Investment Company Institute, the industry trade group, and we welcome these efforts. We believe comprehensive rule making is necessary and is the best way to establish new industry responsibilities designed to protect shareholders. We support practical rule changes and structural modifications that are fair, enforceable and, most importantly, beneficial for investors.

Should you visit our Web site, we invite you to explore the other material available there, including general investing information, performance updates on our funds, and market and economic commentary from our financial experts.

As always, AIM is committed to building solutions for your investment goals, and we thank you for your continued participation in AIM Investments. If you have any questions, please contact our Client Service representatives at 800-959-4246.

Sincerely,

GRAHAM SIGNATURE

Robert H. Graham

Chairman and President

March 9, 2004

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

Health care/energy holdings contribute to fund performance

For the six-month reporting period ended January 31, 2004, INVESCO Dynamics Fund Investor Class shares returned 18.03%. For the same period, the fund’s broad-based index, the S&P Midcap 400 Index, returned 19.03%; the fund’s style-specific index, the Russell Midcap Growth Index, returned 19.88%; and the fund’s peer-group index, the Lipper Mid-Cap Growth Fund Index, returned 15.37%. The fund under-performed its broad-based index due to stock selection in the consumer discretionary and industrial sectors, which hindered performance.

Market conditions

The S&P 500 Index, which returned 15.22% for the six months ended January 31, 2004, rallied amid a backdrop of generally improving economic conditions. During this rally, the nation’s gross domestic product, widely regarded as the broadest measure of economic activity, expanded at an annualized rate of 8.2% in the third quarter and 4.0% in the fourth quarter of 2003. In a report to Congress, the Federal Reserve Board (the Fed) noted that industrial production, corporate profits, as well as business and consumer spending all increased during the reporting period.

Indeed, retail sales from November 2003 through January 2004 were up 6.2% compared to the same three months a year earlier. The period included the holiday season, which is critical from a sales perspective for many businesses. The Fed also noted in its report that capital spending increased and there was evidence that some firms had started to build up their inventories, indicators that business confidence had improved. The housing market also continued to be “robust,” according to the Fed.

Inflation was subdued and interest rates were low. During the reporting period, the Fed kept the short-term federal funds rate at 1.00%, its lowest level since 1958. The job market remained weak, however. While the unemployment rate declined during the reporting period, it was still 5.6% at the end of January 2004.

All sectors of the S&P 500 recorded gains for the reporting period. Information technology, energy and industrials were the top-performing sectors while health care, consumer staples and telecommunication services were the weakest-performing sectors.

Small- and mid-cap stocks generally outperformed large-cap stocks for the reporting period, and value stocks generally outperformed growth stocks. Small-cap value stocks, on average, were the best-performing segment of the market.

Stock selection was the primary driver of both absolute and relative fund performance during the reporting period.

Your fund

Stock selection was the primary driver of both absolute and relative fund performance during the reporting period. As noted, mid-cap stocks outperformed large-cap stocks during the period, thereby bolstering the absolute returns of mid-cap funds including INVESCO Dynamics Fund. On a relative basis, we believe the fund outperformed its Lipper peer group based on strong stock selection but slightly underperformed its style index as the fund did not own some of the lower-quality technology stocks that rallied in the index.

TOP 10 EQUITY HOLDINGS*
1.	Manpower Inc.	1.7	%
2.	Teva Pharmaceuticals Industries Ltd.-ADR (Israel)	1.6
3.	Mandalay Resort Group	1.5
4.	Zimmer Holdings, Inc.	1.5
5.	Legg Mason, Inc.	1.5
6.	Symantec Corp.	1.4
7.	Cox Communications, Inc.-Class A	1.4
8.	Shire Pharmaceuticals Group PLC-ADR (United Kingdom)	1.4
9.	Amdocs Ltd. (United Kingdom)	1.4
10.	EchoStar Communications Corp.-Class A	1.4

TOP 10 INDUSTRIES*
1.	Communications Equipment	6.3	%
2.	Application Software	6.0
3.	Semiconductors	5.8
4.	Pharmaceuticals	5.0
5.	Broadcasting & Cable TV	4.5
6.	Asset Management & Custody Banks	4.4
7.	Health Care Equipment	3.8
8.	Data Processing & Outsourced Services	3.5
9.	Electronic Manufacturing Services	3.3
10.	Employment Services	3.0

* Excludes money market fund holdings.

The fund’s holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security.

2

On a sector basis, health care and energy stocks contributed to absolute performance during the reporting period. Zimmer Holdings—a global orthopedic implant manufacturer—reported net sales increased 18% for the third quarter to $398.2 million, topping First Call consensus estimates of $392 million. Other key health care contributors included AdvancePCS—a pharmacy benefit manager—and Shire Pharmaceuticals—a global specialty drug company.

Many of the fund’s energy holdings including Murphy Oil, an oil and gas exploration and production company, and Smith International, a worldwide supplier of products and services to the oil and gas industry, contributed to fund performance even though the sector was not a strong benchmark performer during the reporting period.

Our stock selection and overweight position in the information technology sector—the best performing mid-cap sector during the reporting period—bolstered absolute returns. Juniper Networks—a designer and marketer of Internet Protocol routers for private and public access networks—was one fund holding that contributed greatly to fund performance as the stock doubled in price during the reporting period.

That said, however, the fund’s lack of exposure to several speculative technology stocks that appreciated significantly during the reporting period detracted from the fund’s relative performance versus the Russell Midcap Growth Index. For example, the fund did not own Red Hat—a provider of Linux and open source technology—one of the best-performing stocks in the index during the reporting period.

Given the positive performance of mid-cap stocks during the reporting period, the fund had few detractors. However, two stocks that proved a drag on performance included Gilead Sciences—a biopharmaceutical firm—and U T Starcom—a company that develops and markets wireline and wireless telecommunications equipment. While both stocks rallied strongly early in 2003, they traded downward as the reporting period came to a close. We sold both positions during the reporting period.

In closing

After several challenging years in the market, we are pleased to provide shareholders with double-digit returns for the reporting period. Our focus remained on medium-sized companies that we believe have the potential for above-average, long-term earnings growth.

See important fund and index disclosures inside front cover.

MILLER

PHOTO

Timothy J. Miller

Mr. Miller, Chartered Financial Analyst, is lead manager of INVESCO Dynamics Fund. He joined INVESCO in 1992. Mr. Miller holds a master’s of business administration from the University of Missouri in St. Louis and a bachelor’s in business administration from St. Louis University.

FENTON

PHOTO

Michelle Espilien Fenton

Ms. Fenton, Chartered Financial Analyst, is manager of INVESCO Dynamics Fund. She joined INVESCO in 1998. Ms. Fenton received her bachelor’s degree in finance from Montana State University.

FUND VS. INDEXES

Total returns, 7/31/03-1/31/04, excluding applicable sales charges.

If sales charges were included, returns would be lower.

Investor Class Shares		18.03	%
Class A Shares		17.91
Class B Shares		17.49
Class C Shares		17.52
Class K Shares		17.82
S&P Midcap 400 Index (Broad Market Index)		19.03
Russell Midcap Growth Index (Style-specific Index)		19.88
Lipper Mid-cap Growth Fund Index (Peer Group Index)		15.37
TOTAL NUMBER OF HOLDINGS*		128
TOTAL NET ASSETS	$	4.1 billion

Right arrow graphic

For a presentation of your fund’s long-term performance record, please turn the page.

3

LONG-TERM PERFORMANCE

Your fund’s long-term performance

Below you will find a presentation of your fund’s long-term performance record for periods ended 1/31/04, the close of the six-month period covered by this report. As required by industry regulations, we also present long-term performance for periods ended 12/31/03, the most recent calendar quarter-end.

Please read the important disclosure accompanying these tables, which explains how fund performance is calculated and the sales charges, if any, that apply to the share class in which you are invested.

AVERAGE ANNUAL TOTAL RETURNS
As of 1/31/04, including applicable sales charges
Investor Class Shares
Inception (9/15/67)	9.06	%
10 Years	8.84
5 Years	-0.93
1 Year	42.51
Class A Shares
Inception (3/28/02)	-3.57	%
1 Year	34.58
Class B Shares
Inception ( 3/28/02)	-3.55	%
1 Year	36.46
Class C Shares
Inception (2/14/00)	-15.20	%
1 Year	40.39
Class K Shares
Inception (11/30/00)	-11.95	%
1 Year	42.14

AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/03, including applicable sales charges
Investor Class Shares
Inception (9/15/67)	9.01	%
10 Years	8.91
5 Years	-0.32
1 Year	38.27
Class A Shares
Inception (3/28/02)	-5.08	%
1 Year	30.71
Class B Shares
Inception (3/28/02)	-5.04	%
1 Year	32.26
Class C Shares
Inception (2/14/00)	-16.04	%
1 Year	36.21
Class K Shares
Inception (11/30/00)	-12.96	%
1 Year	37.98

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit AIMinvestments.com for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

When sales charges are included in performance figures, Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class K shares have no sales charge; therefore performance quoted is at net asset value. Class K share returns do not include a 0.70% contingent deferred sales charge (CDSC) that may be imposed on a total redemption of retirement plan assets within the first year. Investor Class shares have no sales charge; therefore, performance quoted is at net asset value.

The performance of the fund’s share classes will differ due to different sales charge structures and class expenses.

Had the advisor not waived fees and/or reimbursed expenses on B, C, and K shares, returns would have been lower.

ARROW BUTTON IMAGE For More Information Visit AIMinvestments.com

4

SUPPLEMENT TO SEMIANNUAL REPORT DATED 1/31/04

INVESCO Dynamics Fund

INSTITUTIONAL CLASS SHARES

The following information has been prepared to provide Institutional Class shareholders with a performance overview specific to their holdings. Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Performance of Institutional Class shares will differ from performance of Investor Class shares due to differing sales charges and class expenses.

AVERAGE ANNUAL TOTAL RETURNS

For periods ended 1/31/04

Inception (5/ 22/ 00)	- 11.61%
1 Year	43.18
6 Months*	18.21

AVERAGE ANNUAL TOTAL RETURNS

For periods ended 12/31/03, most recent calendar quarter-end

Inception (5/ 22/ 00)	- 12.49%
1 Year	38.75
6 Months*	19.34

*Cumulative return that has not been annualized.

Had the advisor not waived fees and/or reimbursed expenses, returns would have been lower.

Please note that past performance is not indicative of future results. More recent returns may be more or less than those shown. All returns assume reinvestment of distributions at net asset value. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. See full report for information on comparative benchmarks. If you have questions, please consult your fund prospectus or call 800-525-8085, where you can also obtain more current month-end performance. A I M Distributors, Inc.

FOR INSTITUTIONAL INVESTOR USE ONLY

This material is prepared for institutional investor use only and may not be quoted, reproduced or shown to members of the public, nor used in written form as sales literature for public use.

Your goals.

Our Solutions. ^SM

AIM Logo^SM

AIMinvestments.com    I-DYN-INS-2

FINANCIALS

Schedule of Investments

January 31, 2004

(Unaudited)

	Shares	Market Value
Stocks & Other Equity Interests–99.18%
Advertising–1.02%
Lamar Advertising Co.(a)	278,600	$	10,720,528
Omnicom Group Inc.	374,700		30,875,280
			41,595,808
Agricultural Products–0.32%
Bunge Ltd. (Bermuda)	385,800		13,194,360
Air Freight & Logistics–0.21%
Robinson (C.H.) Worldwide, Inc.	221,800		8,406,220
Apparel Retail–1.48%
Ross Stores, Inc.	1,484,200		41,483,390
TJX Cos., Inc. (The)	815,800		18,755,242
			60,238,632
Apparel, Accessories & Luxury Goods–0.75%
Polo Ralph Lauren Corp.	1,008,700		30,462,740
Application Software–6.01%
Amdocs Ltd. (United Kingdom)(a)	1,967,700		55,823,649
BEA Systems, Inc.(a)	2,782,400		35,141,712
Cognos, Inc. (Canada)(a)	631,700		19,089,974
Fair Issac Corp.	426,200		25,303,494
FileNET Corp.(a)	602,000		17,638,600
Intuit Inc.(a)	259,200		13,068,864
Mercury Interactive Corp.(a)	226,800		10,645,992
Siebel Systems, Inc.(a)	3,582,500		47,754,725
Software HOLDRS Trust	549,000		20,746,710
			245,213,720
Asset Management & Custody Banks–4.41%
Franklin Resources, Inc.	856,600		49,485,782
Legg Mason, Inc.	681,600		60,355,680
Northern Trust Corp.	682,700		32,428,250
T. Rowe Price Group Inc.	724,800		37,783,824
			180,053,536
Biotechnology–2.33%
Chiron Corp.(a)	532,700		27,540,590
Genzyme Corp.(a)	655,300		35,943,205
Invitrogen Corp.(a)	408,000		31,416,000
			94,899,795

	Shares	Market Value
Broadcasting & Cable TV–4.51%
Cox Communications, Inc.–Class A(a)	1,695,100	$	58,074,126
Cox Radio, Inc.–Class A(a)	897,200		20,877,844
EchoStar Communications Corp.–Class A(a)	1,505,000		54,932,500
Univision Communications Inc.–Class A(a)	1,417,300		50,129,901
			184,014,371
Casinos & Gaming–2.73%
International Game Technology	755,900		28,316,014
Mandalay Resort Group	1,326,700		62,182,429
Station Casinos, Inc.	592,600		20,746,926
			111,245,369
Communications Equipment–6.27%
Advanced Fibre Communications, Inc.(a)	1,510,800		35,669,988
Alcatel S.A.–ADR (France)(a)	1,543,136		25,847,528
Comverse Technology, Inc.(a)	2,528,700		44,505,120
Corning Inc.(a)	3,071,700		39,686,364
Emulex Corp.(a)	1,584,800		42,995,624
Foundry Networks, Inc.(a)	1,471,500		35,065,845
Juniper Networks, Inc.(a)	1,104,500		31,909,005
			255,679,474
Computer Storage & Peripherals–1.93%
Lexmark International, Inc.(a)	584,900		48,482,361
Network Appliance, Inc.(a)	1,347,101		30,121,178
			78,603,539
Construction & Farm Machinery & Heavy Trucks–1.87%
Cummins Inc.	190,600		9,669,138
Navistar International Corp.(a)	675,900		32,139,045
PACCAR Inc.	437,500		34,400,625
			76,208,808
Data Processing & Outsourced Services–3.50%
Computer Sciences Corp.(a)	843,700		37,671,205
DST Systems, Inc.(a)	969,300		41,495,733
Fiserv, Inc.(a)	923,300		34,494,488
Hewitt Associates, Inc.–Class A(a)	845,800		29,264,680
			142,926,106
Department Stores–0.75%
Kohl’s Corp.(a)	692,000		30,655,600
Distillers & Vintners–0.41%
Constellation Brands, Inc.–Class A(a)	494,600		16,588,884

F-1

	Shares	Market Value
Diversified Commercial Services–2.35%
Apollo Group, Inc.–Class A(a)	505,050	$	37,505,013
Career Education Corp.(a)	875,800		44,105,288
Cintas Corp.	319,000		14,402,850
			96,013,151
Electronic Equipment Manufacturers–2.20%
Amphenol Corp.–Class A(a)	620,200		40,976,614
Thermo Electron Corp.(a)	599,100		16,696,917
Vishay Intertechnology, Inc.(a)	1,372,200		31,889,928
			89,563,459
Electronic Manufacturing Services–3.33%
Flextronics International Ltd. (Singapore)(a)	315,500		5,994,500
Jabil Circuit, Inc.(a)	851,700		25,210,320
Molex Inc.	1,145,462		39,793,350
Sanmina–SCI Corp.(a)	2,249,000		29,484,390
Solectron Corp.(a)	5,012,300		35,587,330
			136,069,890
Employment Services–2.97%
Manpower Inc.	1,460,400		67,733,352
Robert Half International Inc.(a)	2,275,400		53,449,146
			121,182,498
Environmental Services–1.49%
Republic Services, Inc.	1,806,000		45,059,700
Stericycle, Inc.(a)	355,600		15,717,520
			60,777,220
Footwear–0.78%
NIKE, Inc.–Class B	459,800		32,029,668
Health Care Equipment–3.75%
Bard (C.R.), Inc.	148,400		13,979,280
Boston Scientific Corp.(a)	985,000		40,178,150
Stryker Corp.	161,500		14,331,510
Varian Medical Systems, Inc.(a)	289,000		23,969,660
Zimmer Holdings, Inc.(a)	789,400		60,389,100
			152,847,700
Health Care Facilities–0.56%
Health Management Associates, Inc.–Class A	678,200		16,622,682
Triad Hospitals, Inc.(a)	172,600		6,187,710
			22,810,392
Health Care Services–1.99%
AdvancePCS(a)	562,000		32,084,580
Caremark Rx, Inc.(a)	818,500		21,894,875
Medco Health Solutions, Inc.(a)	733,800		27,040,530
			81,019,985

	Shares	Market Value
Health Care Supplies–1.49%
Alcon, Inc. (Switzerland)	762,500	$	48,807,625
Smith & Nephew PLC (United Kingdom)	1,395,000		12,195,409
			61,003,034
Homebuilding–1.25%
Pulte Homes, Inc.	1,178,600		50,844,804
Hotels, Resorts & Cruise Lines–1.91%
Hilton Hotels Corp.	3,198,300		51,172,800
Starwood Hotels & Resorts Worldwide, Inc.	754,700		26,671,098
			77,843,898
Industrial Gases–0.52%
Praxair, Inc.	594,600		21,054,786
Industrial Machinery–2.52%
Donaldson Co., Inc.	28,100		1,517,962
Eaton Corp.	391,400		45,461,110
Illinois Tool Works Inc.	279,400		21,821,140
Ingersoll-Rand Co. (Bermuda)	513,900		34,189,767
			102,989,979
Integrated Oil & Gas–0.95%
Murphy Oil Corp.	642,600		38,915,856
Internet Software & Services–1.28%
VeriSign, Inc.(a)	2,985,800		52,191,784
Investment Banking & Brokerage–1.14%
Ameritrade Holding Corp.(a)	1,880,200		29,801,170
Lehman Brothers Holdings Inc.	205,508		16,872,207
			46,673,377
Leisure Products–0.70%
Marvel Enterprises, Inc.(a)	882,200		28,433,306
Managed Health Care–2.34%
Aetna Inc.	601,400		42,098,000
Anthem, Inc.(a)	425,000		34,756,500
WellPoint Health Networks Inc.(a)	175,500		18,427,500
			95,282,000
Metal & Glass Containers–0.76%
Ball Corp.	492,800		30,834,496
Office Electronics–0.23%
Zebra Technologies Corp.–Class A(a)	144,400		9,328,240
Oil & Gas Equipment & Services–1.25%
Smith International, Inc.(a)	1,049,100		50,839,386

F-2

	Shares	Market Value
Oil & Gas Exploration & Production–1.52%
Apache Corp.	699,934	$	26,933,460
Talisman Energy Inc. (Canada)	656,400		35,137,092
			62,070,552
Pharmaceuticals–4.95%
Barr Pharmaceuticals Inc.(a)	340,600		25,643,774
Pharmaceutical Resources, Inc.(a)	326,100		20,221,461
Shire Pharmaceuticals Group PLC–ADR (United Kingdom)(a)	1,945,300		56,900,025
Teva Pharmaceutical Industries Ltd.–ADR (Israel)	1,035,370		64,803,808
Valeant Pharmaceuticals International	1,471,400		34,548,472
			202,117,540
Property & Casualty Insurance–1.53%
Ambac Financial Group, Inc.	316,100		23,634,797
SAFECO Corp.	894,700		38,946,291
			62,581,088
Restaurants–1.09%
Applebee’s International, Inc.	618,600		23,581,032
CBRL Group, Inc.	558,200		20,949,246
			44,530,278
Semiconductor Equipment–1.62%
ASML Holding N.V.–New York Shares (Netherlands)(a)	736,500		14,184,990
KLA–Tencor Corp.(a)	678,600		38,727,702
Lam Research Corp.(a)	496,850		13,290,738
			66,203,430
Semiconductors–5.81%
Altera Corp.(a)	614,700		13,763,133
Broadcom Corp.–Class A(a)	425,600		17,275,104
Fairchild Semiconductor International, Inc.(a)	1,073,900		26,310,550
Linear Technology Corp.	594,400		23,776,000
Maxim Integrated Products, Inc.	738,200		37,758,930
Microchip Technology Inc.	1,804,115		51,958,512
Semiconductor HOLDRS Trust	381,700		16,019,949
Xilinx, Inc.(a)	1,200,300		50,304,573
			237,166,751
Specialty Stores–1.80%
Staples, Inc.(a)	1,987,400		52,884,714
Tiffany & Co.	518,900		20,569,196
			73,453,910

	Shares	Market Value
Systems Software–2.74%
Adobe Systems Inc.	284,000	$	10,922,640
Novell, Inc.(a)	1,639,700		20,824,190
Symantec Corp.(a)	1,501,000		58,238,800
VERITAS Software Corp.(a)	665,600		21,871,616
			111,857,246
Technology Distributors–1.30%
CDW Corp.	779,200		52,938,848
Thrifts & Mortgage Finance–0.75%
PMI Group, Inc. (The)	796,800		30,772,416
Trading Companies & Distributors–0.96%
Fastenal Co.	814,100		39,141,928
Wireless Telecommunication Services–0.85%
American Tower Corp.–Class A(a)	819,900		9,010,701
Nextel Partners, Inc.–Class A(a)	1,988,850		25,715,831
			34,726,532
Total Stocks & Other Equity Interests (Cost $3,186,155,421)			4,046,096,390
Money Market Funds–0.29%
INVESCO Treasurer’s Series Money Market Reserve Fund (Cost $11,912,140)(b)	11,912,140		11,912,140
TOTAL INVESTMENTS–99.47% (excluding investments purchased with cash collateral from securities loaned) (Cost $3,198,067,561)			4,058,008,530
Investments Purchased With Cash Collateral From Securities Loaned
Money Market Funds–0.41%
INVESCO Treasurer’s Series Money Market Reserve Fund(b)(c)	16,477,625		16,477,625
Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $16,477,625)			16,477,625
TOTAL INVESTMENTS–99.88% (Cost $3,214,545,186)			4,074,486,155
OTHER ASSETS LESS LIABILITIES–0.12%			5,091,292
NET ASSETS–100.00%		$	4,079,577,447

Investment Abbreviations:

ADR       – American Depositary Receipt

HOLDRS– Holding Company Depositary Receipts

Notes to Schedule of Investments:

(a) Non-income producing security.

(b) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 3.

(c) 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 the financial statements.

F-3

Statement of Assets and Liabilities

January 31, 2004

(Unaudited)

Assets:
Investments, at market value (cost $3,186,155,421)*	$	4,046,096,390
Investments in affiliated money market funds (cost $28,389,765)		28,389,765
Total investments (cost $3,214,545,186)		4,074,486,155
Cash		363,527
Receivables for:
Investments sold		143,435,857
Fund shares sold		4,428,732
Dividends		585,846
Amount due from advisor		151,311
Investment for deferred compensation and retirement plans		441,311
Other assets		510,283
Total assets		4,224,403,022
Liabilities:
Payables for:
Investments purchased		52,611,385
Fund shares reacquired		69,487,996
Deferred compensation and retirement plans		525,728
Collateral upon return of securities loaned		16,477,625
Accrued distribution fees		894,480
Accrued transfer agent fees		4,503,834
Accrued trustees fees		5,206
Accrued operating expenses		319,321
Total liabilities		144,825,575
Net assets applicable to shares outstanding	$	4,079,577,447
Net assets consist of:
Shares of beneficial interest	$	7,032,873,922
Undistributed net investment income (loss)		(16,982,171	)
Undistributed net realized gain (loss) from investment securities and foreign currencies		(3,796,255,273	)
Unrealized appreciation of investment securities and foreign currencies		859,940,969
	$	4,079,577,447

Net Assets:
Class A	$	12,807,397
Class B	$	2,251,841
Class C	$	14,648,677
Class K	$	46,680,214
Investor Class	$	3,968,661,597
Institutional Class	$	34,527,721
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		845,855
Class B		151,031
Class C		1,001,975
Class K		3,109,989
Investor Class		262,571,270
Institutional Class		2,254,093
Class A:
Net asset value per share	$	15.14
Offering price per share:
(Net asset value of $15.14 ÷ 94.50%)	$	16.02
Class B:
Net asset value and offering price per share	$	14.91
Class C:
Net asset value and offering price per share	$	14.62
Class K:
Net asset value and offering price per share	$	15.01
Investor Class:
Net asset value and offering price per share	$	15.11
Institutional Class:
Net asset value and offering price per share	$	15.32

* At January 31, 2004, securities with an aggregate market value of $16,171,490 were on loan to brokers.

See accompanying notes which are an integral part of the financial statements.

F-4

Statement of Operations

For the six months ended January 31, 2004

(Unaudited)

Investment income:
Dividends (net of foreign withholding tax of $71,784)	$	8,196,280
Dividends from affiliated money market funds*		140,822
Total investment income		8,337,102
Expenses:
Advisory fees		10,130,072
Administrative services fees		945,296
Custodian fees		210,790
Distribution fees:
Class A		18,919
Class B		9,610
Class C		72,240
Class K		104,924
Investor Class		5,089,780
Transfer agent fees:
Class A		13,570
Class B		3,026
Class C		94,548
Class K		131,102
Investor Class		9,988,351
Institutional Class		24,045
Trustees’ fees		47,403
Other		1,323,820
Total expenses		28,207,496
Less:  Fees waived, expenses reimbursed and expense offset arrangements		(3,205,058	)
Net expenses		25,002,438
Net investment income (loss)		(16,665,336	)
Realized and unrealized gain (loss) from investment securities and foreign currencies:
Net realized gain (loss) from:
Investment securities		587,103,773
Foreign currencies		(118,220	)
		586,985,553
Change in net unrealized appreciation (depreciation) of:
Investment securities		111,002,725
Foreign currencies		(530	)
		111,002,195
Net gain from investment securities and foreign currencies		697,987,748
Net increase in net assets resulting from operations	$	681,322,412

* Dividends from affiliated money market funds are net of fees paid to security lending counterparties.

See accompanying notes which are an integral part of the financial statements.

F-5

Statement of Changes in Net Assets

For the six months ended January 31, 2004 and the year ended July 31, 2003

(Unaudited)

	January 31, 2004			July 31, 2003
Operations:
Net investment income (loss)	$	(16,665,336	)	$	(28,533,692	)
Net realized gain (loss) from investment securities and foreign currencies		586,985,553			(487,605,258	)
Change in net unrealized appreciation of investment securities and foreign currencies		111,002,195			1,161,951,515
Net increase in net assets resulting from operations		681,322,412			645,812,565
Share transactions–net:
Class A		4,681,009			3,205,768
Class B		535,661			846,881
Class C		(1,218,186	)		(850,225	)
Class K		(5,999,933	)		(6,272,453	)
Investor Class		(558,987,138	)		(456,316,114	)
Institutional Class		(1,676,651	)		568,103
Net increase (decrease) in net assets resulting from share transactions		(562,665,238	)		(458,818,040	)
Net increase in net assets		118,657,174			186,994,525
Net assets:
Beginning of period		3,960,920,273			3,773,925,748
End of period (including undistributed net investment income (loss) of $(16,982,171) and $(316,835) for 2004 and 2003, respectively)	$	4,079,577,447		$	3,960,920,273

See accompanying notes which are an integral part of the financial statements.

F-6

Notes to Financial Statements

January 31, 2004

(Unaudited)

NOTE 1—Significant Accounting Policies

INVESCO Dynamics Fund (the “Fund”) is a series portfolio of AIM Stock Funds (the “Trust”, formerly known as, INVESCO Stock Funds, Inc.). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of four separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund.

The Fund’s investment objective is to seek long-term capital growth. Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end, and as such, the net asset value for shareholder transactions may be different than the net asset value reported in these financial statements. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued 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. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers in a manner specifically authorized 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. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are determined as of the close of the respective markets. 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 a development/event is so significant such that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Trustees. Adjustments to closing prices to reflect fair value on affected foreign securities may be provided by an 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.

B. Repurchase Agreements — Repurchase agreements purchased by the Fund are fully collateralized by securities issued by the U.S. Government, its agencies or instrumentalities and such collateral is in the possession of the Fund’s custodian. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. 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.

C. Securities Transactions and Investment Income —  Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

F-7

D. Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E. Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. Any capital loss carryforwards listed are reduced for limitations, if any, to the extent required by the Internal Revenue Code.

F. Foreign Currency Translations — Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. 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.

G. 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.

H. Expenses — Each Class bears expenses incurred specifically on its behalf and, in addition, each Class bears a portion of general expenses, based on relative net assets of each Class.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with A I M Advisors, Inc. (“AIM”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee based on the annual rate of the Fund’s average net assets as follows:

Average Net Assets	Rate
First $350 million	0.60	%
From $350 million to $700 million	0.55	%
From $700 million to $2 billion	0.50	%
From $2 billion to $4 billion	0.45	%
From $4 billion to $6 billion	0.40	%
From $6 billion to $8 billion	0.375	%
Over $8 billion	0.35	%

For the period November 25, 2003 through January 31, 2004, the Fund paid advisory fees to AIM of $3,793,518. Prior to November 25, 2003, the Trust had an investment advisory agreement with INVESCO Funds Group, Inc. (“IFG”). For the period August 1, 2003 through November 24, 2003, the Fund paid advisory fees to IFG of $6,336,554. AIM has entered into a sub-advisory agreement with INVESCO Institutional (N.A.), Inc. (“INVESCO”) whereby AIM pays INVESCO 40% of the fee paid by the Fund to AIM.

AIM has contractually agreed to limit total annual operating expenses for Class A, Class B, Class C and Class K shares to 2.10%, 2.75%, 2.75% and 2.20%, respectively and has voluntarily agreed to limit total annual operating expenses of Class A, Class B, Class C, Class K, Investor Class and Institutional Class shares to 1.30%, 1.95%, 1.95%, 1.40%, 1.20% and 0.95%, respectively. The expense limitations exclude interest, taxes, fund merger and reorganization expenses, extraordinary items, including other items designated as such by the Board of Trustees and increases in expenses due to expense offset arrangements, if any. Voluntary fee waivers or reimbursements may be modified or discontinued at any time without further notice to investors after April 30, 2004 upon consultation with the Board of Trustees. Further, AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds on investments by the Fund in such affiliated money market funds (excluding investments made in money market funds with cash collateral from securities loaned by the Fund). For the six months ended January 31, 2004, AIM waived fees of $406.

For the period November 25,2003 through January 31, 2004, AIM reimbursed transfer agency expenses of the Fund of $0, $2,485, $30,242, $30,464 and $839,847 for Class A, Class B, Class C, Class K and Investor Class shares, respectively. Prior to November 25, 2003, IFG reimbursed transfer agency expenses of the Fund of $375, $541, $64,204, $21,429 and $1,957,230 for Class A, Class B, Class C, Class K and Investor Class shares, respectively. For the period November 25, 2003 through January 31, 2004, AIM reimbursed other class-specific expenses of the Fund of $0, $2,703, $0, $0 and $0 for Class A, Class B, Class C. Class K and Investor Class shares, respectively. Prior to November 25, 2003, IFG reimbursed no other class-specific expenses of the Fund for Class A, Class B, Class C, Class K and Investor Class shares, respectively. For the period November 25, 2003 through January 31, 2004, AIM reimbursed fund level expenses of the Fund of $53,747. Prior to November 25, 2003, IFG reimbursed no fund level expenses of the Fund.

F-8

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates (continued)

AIM is entitled to reimbursement from a Fund that has had fees and expenses absorbed pursuant to these arrangements if such reimbursements do not cause the Fund to exceed the then current expense limitations and the reimbursement is made within three years after AIM incurred the expense. At January 31, 2004, the reimbursement that may potentially be made by the Fund to AIM which will expire during the calendar year ended 2005 for Class A, Class B, Class C, Class K, Investor and Institutional Class shares were $0, $500, $91,253, $50,527, $5,826,662 and $0, respectively, and expiring during the calendar year ended 2006 for Class A, Class B, Class C, Class K, Investor and Institutional Class shares were $641, $4,473, $185,774, $54,694, $5,227,777 and $0, respectively and expiring during the calendar year ended 2007 for Class A, Class B, Class C, Class K, Investor and Institutional Class shares were $80, $5,249, $15,124, $30,790, $833,604 and $0, respectively. During the six months ended January 31, 2004, the Fund did not reimburse AIM for any previously reimbursed Fund expenses.

The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the period November 25, 2003 through January 31, 2004, AIM was paid $460,229 for such services. Prior to November 25, 2003, the Trust had an administrative services agreement with IFG. For the period August 1, 2003 through November 24, 2003, IFG was paid $485,067 for such services.

The Fund, pursuant to a transfer agency and service agreement, has agreed to pay AIM Investment Services, Inc. (“AISI”), formerly known as A I M Fund Services, Inc., a fee for providing transfer agency and shareholder services to the Fund. Prior to October 1, 2003, the Trust had a transfer agency and service agreement with IFG. For the period August 1, 2003 through September 30, 2003, IFG retained $1,711,170 for such services. For the period October 1, 2003 through January 31, 2004, AISI retained $4,829,603 for such services.

The Trust has entered into a master distribution agreement with A I M Distributors, Inc. (“AIM Distributors”) to serve as the distributor for the Class A, Class B, Class C, Class K, Institutional Class and Investor Class shares of the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C, Class K and Investor Class shares (collectively the “Plans”). The Fund, pursuant to the Class A, Class B, Class C and Class K Plans, pays AIM Distributors compensation at the annual rate of 0.35% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.45% of the average daily net assets of Class K shares. Of these amounts, 0.25% of the average daily net assets of the Class A, Class B, Class C or Class K shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. The Fund, pursuant to the Investor Class Plan, pays AIM Distributors for its actual expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of the Investor Class shares. Pursuant to the Plans, for the six months ended January 31, 2004, the Class A, Class B, Class C, Class K and Investor Class shares paid $18,919, $9,610, $72,240, $104,924 and $5,089,780, respectively.

Front-end sales commissions and contingent deferred sales charges (“CDSC”) (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the six months ended January 31, 2004 AIM Distributors retained $2,755 in front-end sales commissions from the sale of Class A shares and $0, $0, $530 and $0 from Class A, Class B, Class C and Class K shares, respectively, for CDSC imposed upon redemptions by shareholders.

Certain officers and trustees of the Trust are officers and directors of AIM, AISI, INVESCO and/or AIM Distributors.

NOTE 3—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. Each day the prior day’s balance invested in the affiliated money market fund is redeemed in full and a new purchase amount is submitted to invest the current day’s available cash and/or cash collateral received from securities lending transactions. The table below shows the transactions in and earnings from investments in affiliated money market funds for the period ended January 31, 2004.

Investments of Daily Available Cash Balances:

	Market Value 07/31/03		Purchases at Cost		Proceeds from Sales			Unrealized Appreciation (Depreciation)		Market Value 01/31/04		Dividend Income		Realized Gain (Loss)
INVESCO Treasurer’s Series Money Market Reserve Fund	$	—	$	360,043,406	$	(348,131,266	)	$	—	$	11,912,140	$	40,683	$	—

Investments of Cash Collateral from Securities Lending Transactions:

	Market Value 07/31/03		Purchases at Cost		Proceeds from Sales			Unrealized Appreciation (Depreciation)		Market Value 01/31/04		Dividend Income*		Realized Gain (Loss)
INVESCO Treasurer’s Series Money Market Reserve Fund	$	36,892,514	$	413,594,985	$	(434,009,874	)	$	—	$	16,477,625	$	100,139	$	—
Total	$	36,892,514	$	773,638,391	$	(782,141,140	)	$	—	$	28,389,765	$	140,822		—

* Dividend income is net of fees paid to security lending counterparties of $4,741

F-9

NOTE 4—Expense Offset Arrangements

Indirect expenses under directed brokerage arrangements are comprised of custodian credits resulting from security brokerage transactions. This directed brokerage arrangement was terminated on November 18, 2003. For the six months ended January 31, 2004, the Fund received reductions in custodian fees of $201,385 under an expense offset arrangements, which resulted in a reduction of the Fund’s total expenses of $201,385.

NOTE 5—Trustees’ Fees

Trustees’ fees represent remuneration paid to each Trustee of the Trust who is not an “interested person” of AIM. Trustees have the option to defer compensation payable by the Trust. The Trustees deferring compensation have the option to select various AIM and INVESCO Funds in which their deferral accounts shall be deemed to be invested.

Current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees that also participate in a retirement plan and receive benefits under such plan.

During the six months ended January 31, 2004, the Fund paid legal fees of $2,146 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Borrowings

The Fund may participate in an interfund lending facility that AIM has established for temporary borrowings by the AIM Funds and the INVESCO Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. Under certain circumstances, a loan will be secured by collateral. To the extent that the loan is required to be secured by collateral, the collateral is marked to market daily to ensure that the market value is at least 102% of the outstanding principal value of the loan. During the six months ended January 31, 2004, the Fund had average daily borrowings of $7,754,826 with a weighted average interest rate of 1.24% and incurred interest expense of $48,644.

Effective December 6, 2003, the Fund became a participant in an uncommitted unsecured revolving credit facility with State Street Bank and Trust Company (“SSB”). The Fund may borrow up to the lesser of (i) $125,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which are parties to the credit facility can borrow on a first come, first served basis. Principal on each loan outstanding shall bear interest at the bid rate quoted by SSB at the time of the request for the loan. The Fund did not borrow under the facility during the six months ended January 31, 2004.

The Fund had available a committed Redemption Line of Credit Facility (“LOC”), from a consortium of national banks, to be used for temporary or emergency purposes to meet redemption needs. The LOC permitted borrowings to a maximum of 10% of the net assets at value of the Fund. Each fund agreed to pay annual fees and interest on the unpaid principal balance based on prevailing market rates as defined in the agreement. The funds which were party to the LOC were charged a commitment fee of 0.10% on the unused balance of the committed line. The Fund did not borrow under the LOC during six months ended January 31, 2004. The LOC expired December 3, 2003.

Additionally the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds in the account so the custodian can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank. In either case, the custodian bank will be compensated an amount equal to the Federal Funds rate plus 100 basis points.

NOTE 7—Portfolio Securities Loaned

The Fund has entered into a securities lending agreement with SSB. Under the terms of the agreement, the Fund receives income, recorded monthly, after deduction of other amounts payable to SSB or to the borrower from lending transactions. In exchange for such fees, SSB is authorized to loan securities on behalf of the Fund, against receipt of collateral at least equal in value to the value of the securities loaned. Cash collateral is invested by SSB in an affiliated money market fund. The Fund bears the risk of any deficiency in the amount of collateral available for return to a borrower due to a loss in an approved investment.

At January 31, 2004, securities with an aggregate value of $16,171,490 were on loan to brokers. The loans were secured by cash collateral of $16,477,625 received by the Fund and subsequently invested in an affiliated money market fund. For the January 31, 2004 ended six months, the Fund received dividends on cash collateral net of fees paid to counterparties of $100,139 for securities lending transactions.

NOTE 8—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distributions (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be updated at the Fund’s fiscal year-end.

The Fund has a capital loss carryforward for tax purposes which expires as follows:

Expiration	Capital Loss Carryforward
July 31, 2010	$	1,758,414,675
July 31, 2011		2,290,224,850
Total capital loss carryforward	$	4,048,639,525

F-10

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended January 31, 2004 was $1,959,118,920 and $2,568,126,462, respectively.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	875,374,675
Aggregate unrealized (depreciation) of investment securities		(40,707,459	)
Net unrealized appreciation of investment securities	$	834,667,216

Cost of investments for tax purposes is $3,239,818,939.

NOTE 10—Share Information

The Fund currently offers six different classes of shares: Class A shares, Class B shares, Class C shares, Class K shares, Investor Class shares and Institutional Class shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with CDSC. Class K shares, Investor Class shares and Institutional Class shares are sold at net asset value. Under some circumstances, Class A shares and Class K shares are subject to CDSC. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase.

Changes in Shares Outstanding
	Six months ended January 31, 2004					Year ended July 31, 2003
	Shares		Amount			Shares		Amount
Sold:
Class A	1,742,589		$	22,998,548		11,092,918		$	125,881,340
Class B	51,753			707,731		82,398			928,642
Class C	255,801			3,362,970		41,725,537			442,269,623
Class K	820,137			11,302,511		2,158,128			23,785,225
Investor Class	52,922,803			732,364,459		789,077,245			8,458,071,739
Institutional Class	723,313			10,359,493		1,411,996			15,709,144
Issued in connection with acquisitions:*
Class A	—			—		47,716			507,690
Class B	—			—		1,207			12,735
Class C	—			—		80,743			838,403
Class K	—			—		93			985
Investor Class	—			—		4,491,385			47,634,088
Automatic conversion of Class B shares to Class A shares:**
Class A	425			6,291		—			—
Class B	(431	)		(6,291	)	—			—
Reacquired:
Class A	(1,373,052	)		(18,323,830	)	(10,850,031	)		(123,183,262	)
Class B	(11,317	)		(165,779	)	(8,718	)		(94,496	)
Class C	(342,019	)		(4,581,156	)	(41,986,648	)		(443,958,251	)
Class K	(1,263,807	)		(17,302,444	)	(2,761,338	)		(30,058,663	)
Investor Class	(91,904,552	)		(1,291,351,597	)	(833,286,306	)		(8,962,021,941	)
Institutional Class	(845,163	)		(12,036,144	)	(1,345,394	)		(15,141,041	)
	(39,223,520	)	$	(562,665,238	)	(40,069,069	)	$	(458,818,040	)

* Issued in connection with the acquisition of INVESCO Endeavor Fund.

** Prior to the six months ended January 31, 2004, conversion of Class B shares to Class A shares were included in Class A shares sold and Class B shares reacquired.

F-11

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Class A
	Six months ended January 31, 2004			Year ended July 31, 2003			March 28, 2002 (Date sales commenced) to July 31, 2002
Net asset value, beginning of period	$	12.84		$	10.82		$	15.30
Income from investment operations:
Net investment income (loss)		(0.06	)		(0.09	)		(0.03	)(a)
Net gains (losses) on securities (both realized and unrealized)		2.36			2.11			(4.45	)
Total from investment operations		2.30			2.02			(4.48	)
Net asset value, end of period	$	15.14		$	12.84		$	10.82
Total return(b)		17.91	%		18.56	%		(29.22	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	12,807		$	6,108		$	2,006
Ratio of expenses to average net assets		1.30	%(c)(d)		1.24	%		1.11	%(e)
Ratio of net investment income (loss) to average net assets		(0.89	)%(c)		(0.81	)%		(0.76	)%(e)
Portfolio turnover rate(f)		48	%		91	%		81	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $10,751,888.

^(d) After fee waivers and/or expense reimbursements. Ratio of expenses to average net assets prior to fee waivers and/or expense reimbursements was 1.31%.

^(e) Annualized.

^(f) Not annualized for periods less than one year.

F-12

Note 11—Financial Highlights (continued)

	Class B
	Six months ended January 31, 2004			Year ended July 31, 2003			March 28, 2002 (Date sales commenced) to July 31, 2002
Net asset value, beginning of period	$	12.69		$	10.78		$	15.30
Income from investment operations:
Net investment income (loss)		(0.10	)		(0.08	)		(0.06	)(a)
Net gains (losses) on securities (both realized and unrealized)		2.32			1.99			(4.46	)
Total from investment operations		2.22			1.91			(4.52	)
Net asset value, end of period	$	14.91		$	12.69		$	10.78
Total return(b)		17.49	%		17.72	%		(29.54	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	2,252		$	1,409		$	390
Ratio of expenses to average net assets:
With expense reimbursements		1.95	%(c)		1.96	%		2.09	%(d)
Without expense reimbursements		2.55	%(c)		2.52	%		2.09	%(d)
Ratio of net investment income (loss) to average net assets		(1.54	)%(c)		(1.53	)%		(1.71	)%(d)
Portfolio turnover rate(e)		48	%		91	%		81	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $1,911,485.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-13

Note 11—Financial Highlights (continued)

	Class C
	Six months ended January 31, 2004			Year ended July 31,									February 14, 2000 (Date sales commenced) to July 31, 2000
				2003			2002			2001
Net asset value, beginning of period	$	12.44		$	10.60		$	17.04		$	27.78		$	28.25
Income from investment operations:
Net investment income (loss)		(0.11	)		(0.18	)		(0.25	)		(0.06	)		(0.00	)(a)
Net gains (losses) on securities (both realized and unrealized)		2.29			2.02			(6.17	)		(10.60	)		(0.47	)
Total from investment operations		2.18			1.84			(6.42	)		(10.66	)		(0.47	)
Less distributions from net realized gains		—			—			(0.02	)		(0.08	)		—
Net asset value, end of period	$	14.62		$	12.44		$	10.60		$	17.04		$	27.78
Total return(b)		17.52	%		17.47	%		(37.76	)%		(38.45	)%		(1.66	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	14,649		$	13,537		$	13,440		$	28,887		$	4,779
Ratio of expenses to average net assets:
With expense reimbursements		1.95	%(c)		1.96	%		1.96	%		1.86	%		1.71	%(d)
Without expense reimbursements		3.26	%(c)		3.05	%		2.16	%		1.86	%		1.71	%(d)
Ratio of net investment income (loss) to average net assets		(1.54	)%(c)		(1.54	)%		(1.59	)%		(1.34	)%		(1.20	)%(d)
Portfolio turnover rate(e)		48	%		91	%		81	%		55	%		75	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $14,369,500.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-14

Note 11—Financial Highlights (continued)

	Class K
	Six months ended January 31, 2004			Year ended July 31,						November 30, 2000 (Date sales commenced) to July 31, 2001
				2003			2002
Net asset value, beginning of period	$	12.74		$	10.76		$	17.19		$	22.50
Income from investment operations:
Net investment income (loss)		(0.07	)		(0.02	)		(0.15	)(a)		(0.03	)
Net gains (losses) on securities (both realized and unrealized)		2.34			2.00			(6.26	)		(5.28	)
Total from investment operations		2.27			1.98			(6.41	)		(5.31	)
Less distributions from net realized gains		—			—			(0.02	)		—
Net asset value, end of period	$	15.01		$	12.74		$	10.76		$	17.19
Total return(b)		17.82	%		18.40	%		(37.32	)%		(23.60	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	46,680		$	45,258		$	44,745		$	6
Ratio of expenses to average net assets:
With expense reimbursements		1.40	%(c)		1.41	%		1.36	%		1.48	%(d)
Without expense reimbursements		1.62	%(c)		1.61	%		1.36	%		3.06	%(d)
Ratio of net investment income (loss) to average net assets		(0.99	)%(c)		(0.98	)%		(1.05	)%		(1.03	)%(d)
Portfolio turnover rate(e)		48	%		91	%		81	%		55	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $46,379,612.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-15

Note 11—Financial Highlights (continued)

	Investor Class
	Six months ended January 31, 2004			Year ended July 31,												Three months ended July 31, 1999			Year ended April 30, 1999
				2003			2002			2001			2000
Net asset value, beginning of period	$	12.81		$	10.81		$	17.23		$	27.86		$	19.39		$	18.15		$	16.41
Income from investment operations:
Net investment income (loss)		(0.06	)		(0.00	)		(0.00	)		(0.12	)(a)		(0.00	)		(0.00	)		(0.00	)
Net gains (losses) on securities (both realized and unrealized)		2.36			2.00			(6.40	)		(10.43	)		9.51			1.24			3.04
Total from investment operations		2.30			2.00			(6.40	)		(10.55	)		9.51			1.24			3.04
Less distributions from net realized gains		—			—			(0.02	)		(0.08	)		(1.04	)		—			(1.30	)
Net asset value, end of period	$	15.11		$	12.81		$	10.81		$	17.23		$	27.86		$	19.39		$	18.15
Total return(b)		17.95	%		18.50	%		(37.17	)%		(37.94	)%		50.34	%		6.83	%		20.83	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	3,968,662		$	3,863,821		$	3,688,213		$	6,562,467		$	7,865,489		$	2,471,482		$	2,044,321
Ratio of expenses to average net assets:
With expense reimbursements		1.21	%(c)		1.21	%		1.21	%		1.00	%		0.89	%		1.03	%(d)		1.05	%
Without expense reimbursements		1.35	%(c)		1.46	%		1.23	%		1.00	%		0.89	%		1.03	%(d)		1.05	%
Ratio of net investment income (loss) to average net assets		(0.79	)%(c)		(0.78	)%		(0.86	)%		(0.49	)%		(0.34	)%		(0.32	)%(d)		(0.41	)%
Portfolio turnover rate(e)		48	%		91	%		81	%		55	%		75	%		23	%		129	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $4,049,694,222.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-16

NOTE 11—Financial Highlights (continued)	Institutional Class
	Six months ended January 31, 2004			Year ended July 31,									May 22, 2000 (Date sales commenced) to July 31, 2000
				2003			2002			2001
Net asset value, beginning of period	$	12.96		$	10.88		$	17.28		$	27.87		$	24.29
Income from investment operations:
Net investment income (loss)		(0.03	)		(0.04	)(a)		(0.08	)(a)		(0.07	)(a)		(0.02	)(a)
Net gains (losses) on securities (both realized and unrealized)		2.39			2.12			(6.30	)		(10.44	)		3.60
Total from investment operations		2.36			2.08			(6.38	)		(10.51	)		3.58
Less distributions from net realized gains		—			—			(0.02	)		(0.08	)		—
Net asset value, end of period	$	15.32		$	12.96		$	10.88		$	17.28		$	27.87
Total return(b)		18.21	%		19.12	%		(36.95	)%		(37.78	)%		14.74	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	34,528		$	30,788		$	25,133		$	11,622		$	22,989
Ratio of expenses to average net assets		0.77	%(c)		0.78	%		0.84	%		0.77	%		0.77	%(d)
Ratio of net investment income (loss) to average net assets		(0.36	)%(c)		(0.34	)%		(0.53	)%		(0.26	)%		(0.22	)%(d)
Portfolio turnover rate(e)		48	%		91	%		81	%		55	%		75	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $33,152,168.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

NOTE 12—Legal Proceedings

Your Fund’s investment advisor, A I M Advisors, Inc. (“AIM”), is an indirect wholly owned subsidiary of AMVESCAP PLC (“AMVESCAP”). Another indirect wholly owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. (“IFG”), was formerly the investment advisor to the INVESCO Funds. IFG continues to serve as the investment advisor to INVESCO Variable Investment Funds, Inc. (“IVIF”). On November 25, 2003, AIM succeeded IFG as the investment advisor to the INVESCO Funds other than IVIF.

The mutual fund industry as a whole is currently subject to a wide range of inquiries and litigation related to a wide range of issues, including issues of “market timing” and “late trading.” Both AIM and IFG are the subject of a number of such inquiries, as described below.

    A.    Regulatory Inquiries and Actions

        1.    IFG

On December 2, 2003 each of the Securities and Exchange Commission (“SEC”) and the Office of the Attorney General of the State of New York (“NYAG”) filed civil proceedings against IFG and Raymond R. Cunningham, in his capacity as the chief executive officer of IFG. Mr. Cunningham also currently holds the positions of Chief Operating Officer and Senior Vice President of A I M Management Group Inc. (the parent of AIM) and the position of Senior Vice President of AIM. In addition, on December 2, 2003, the State of Colorado filed civil proceedings against IFG. Neither the Fund nor any of the other AIM or INVESCO Funds has been named as a defendant in any of these proceedings.

The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds’ prospectuses and to the INVESCO Funds’ independent directors that IFG had entered into certain arrangements permitting market timing of the INVESCO Funds. The SEC is seeking injunctions, including permanent injunctions from serving as an investment advisor, officer or director of an investment company; an accounting of all market timing as well as certain fees and compensation received; disgorgement; civil monetary penalties; and other relief.

The NYAG and Colorado complaints make substantially similar allegations. The NYAG is seeking injunctions, including permanent injunctions from directly or indirectly selling or distributing shares of mutual funds; disgorgement of all profits obtained, including fees collected, and payment of all restitution and damages caused, directly or indirectly from the alleged illegal activities; civil monetary penalties; and other relief. The State of Colorado is seeking injunctions; restitution, disgorgement and other equitable relief, civil monetary penalties; and other relief.

In addition, IFG has received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing and other related issues concerning the INVESCO Funds. These regulators include the Florida Department of Financial Services, the Commissioner of Securities for the State of Georgia, the Office of the State Auditor for the State of West Virginia, the Office of the Secretary of State for West Virginia, the Department of Banking for the State of Connecticut and the Colorado Securities Division. IFG has also received more limited inquiries concerning related matters from the United States Department of Labor, NASD Inc. and the SEC, none of which directly bears upon the Fund. IFG is providing full cooperation with respect to these inquiries.

F-17

NOTE 12—Legal Proceedings (continued)

        2.    AIM

AIM has also received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing, and related issues concerning the AIM Funds. AIM has received requests for information and documents concerning these and related matters from the SEC, the Massachusetts Secretary of the Commonwealth, the Office of the State Auditor for the State of West Virginia and the Department of Banking for the State of Connecticut. In addition, AIM has received subpoenas concerning these and related matters from the NYAG, the United States Attorney’s Office for the District of Massachusetts, the Commissioner of Securities for the State of Georgia and the Office of the Secretary of State for West Virginia. AIM has also received more limited inquiries from the SEC and NASD, Inc. concerning specific funds, entities and/or individuals, none of which directly bears upon the Fund. AIM is providing full cooperation with respect to these inquiries.

        3.    AMVESCAP Response

AMVESCAP is seeking to resolve both the pending regulatory complaints against IFG alleging market timing and the ongoing market timing investigations with respect to IFG and AIM. AMVESCAP recently found, in its ongoing review of these matters, that shareholders were not always effectively protected from the potential adverse impact of market timing and illegal late trading through intermediaries. These findings were based, in part, on an extensive economic analysis by outside experts who have been retained by AMVESCAP to examine the impact of these activities. In light of these findings, AMVESCAP has publicly stated that any AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities will receive full restitution. AMVESCAP has informed regulators of these findings. In addition, AMVESCAP has retained outside counsel to undertake a comprehensive review of AIM’s and IFG’s policies, procedures and practices, with the objective that they rank among the most effective in the fund industry.

There can be no assurance that AMVESCAP will be able to reach a satisfactory settlement with the regulators, or that any such settlement will not include terms which would have the effect of barring either or both of IFG and AIM, or any other investment advisor directly or indirectly owned by AMVESCAP, from serving as an investment advisor to any registered investment company including the Fund. The Fund has been informed by AIM that, if either of these results occurs, AIM will seek exemptive relief from the SEC to permit it to continue to serve as the Fund’s investment advisor. There can be no assurance that such exemptive relief will be granted. Any settlement with the regulators could also include terms which would bar Mr. Cunningham from serving as an officer or director of any registered investment company.

    B.    Private Actions

In addition to the complaints described above, multiple lawsuits, including purported class action and shareholder derivative suits, have been filed against various parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, A I M Management Group Inc., AMVESCAP, certain related entities and certain of their officers, including Mr. Cunningham). The allegations in the majority of the lawsuits are substantially similar to the allegations in the regulatory complaints against IFG described above. Certain other lawsuits allege that certain AIM and INVESCO Funds inadequately employed fair value pricing. Such lawsuits allege a variety of theories of recovery, including but not limited to: (i) violation of various provisions of the Federal and state securities laws; (ii) violation of various provisions of the Employee Retirement Income Security Act (“ERISA”); (iii) breach of fiduciary duty; and (iv) breach of contract. The lawsuits have been filed in both Federal and state courts and seek such remedies as compensatory damages; restitution; rescission; accounting for wrongfully gotten gains, profits and compensation; injunctive relief; disgorgement; equitable relief; various corrective measures under ERISA; recission of certain Funds’ advisory agreements with AIM; declaration that the advisory agreement is unenforceable or void; refund of advisory fees; interest; and attorneys’ and experts’ fees.

IFG has removed certain of the state court proceedings to Federal District Court. The Judicial Panel on Multidistrict Litigation (the “Panel”) has ruled that all actions alleging market timing throughout the mutual fund industry should be transferred to the United States District Court for the District of Maryland for coordinated pre-trial proceedings. Twelve actions filed against IFG have been conditionally transferred to the Panel in Maryland, and IFG and AIM anticipate that all other market timing actions that may be filed or that are already pending against IFG and/or AIM will be transferred to the Panel as well.

Additional lawsuits or regulatory actions arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the Fund, IFG, AIM, AMVESCAP and related entities and individuals in the future.

As a result of these developments, investors in the AIM and INVESCO Funds might react by redeeming their investments. This might require the Funds to sell investments to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the Funds.

At the present time, management of AIM and the Fund is unable to estimate the impact, if any, that the outcome of the matters described above may have on the Fund or AIM.

F-18

Proxy Results (Unaudited)

A Special Meeting of Shareholders of INVESCO Dynamics Fund (“Fund”), a portfolio of AIM Stock Funds (formerly INVESCO Stock Funds, Inc. and AIM Stock Fund’s Inc.), (“Company”) a Delaware statutory trust, was held on October 21, 2003. The meeting was adjourned and reconvened on October 28, 2003, on November 4, 2003 and reconvened on November 11, 2003. The meeting was held for the following purposes:

(1)* To elect sixteen individuals to the Board, each of whom will serve until his or her successor is elected and qualified: Bob R. Baker, Frank S. Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J. Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S. Sklar, Larry Soll, Ph D. and Mark H. Williamson.

(2) To approve a new Investment Advisory Agreement with A I M Advisors, Inc.

(3) To approve a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc.

(4)* To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.

The results of the voting on the above matters were as follows:

	Trustees/Matter	Votes For	Withholding Authority
(1)*	Bob R. Baker	362,405,144	19,855,030
	Frank S. Bayley	362,437,628	19,822,546
	James T. Bunch	362,488,718	19,771,456
	Bruce L. Crockett	362,515,953	19,744,221
	Albert R. Dowden	362,455,376	19,804,798
	Edward K. Dunn, Jr.	362,445,962	19,814,212
	Jack M. Fields	362,484,095	19,776,079
	Carl Frischling	362,371,394	19,888,780
	Robert H. Graham	362,402,926	19,857,248
	Gerald J. Lewis	362,263,534	19,996,640
	Prema Mathai-Davis	362,317,138	19,943,036
	Lewis F. Pennock	362,372,299	19,887,875
	Ruth H. Quigley	362,270,092	19,990,082
	Louis S. Sklar	362,404,051	19,856,123
	Larry Soll, Ph.D.	362,452,103	19,808,071
	Mark H. Williamson	362,227,445	20,032,729

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(2)	To approve a new Investment Advisory Agreement with A I M Advisors, Inc.	144,722,910	2,076,044	7,819,764
(3)	To approve a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc.	144,419,237	2,130,575	8,068,906
(4)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	302,828,268	16,875,556	62,556,350	**

A Special Meeting of Shareholders of the Company noted above was reconvened on October 28, 2003. At the reconvened meeting the following matters were then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	326,477,030	18,532,333	62,801,232	**
(2)	Approval of a new Investment Advisory Agreement with A I M Advisors, Inc.	152,036,466	2,389,745	8,531,126
(3)	Approval of a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc.	151,764,727	2,398,604	8,794,006

F-19

Proxy Results (Unaudited) (continued)

A Special Meeting of Shareholders of the Company noted above was reconvened on November 4, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	345,396,965	18,782,801	62,618,399	**

A Special Meeting of Shareholders of the Company noted above was reconvened on November 11, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	Approval of an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	354,789,002	19,165,807	57,283,120	**

* Proposal required approval by a combined vote of all the portfolios of AIM Stock Funds.

** Includes Broker Non-Votes

F-20

OTHER INFORMATION

Trustees and Officers

Board of Trustees	Officers	Office of the Fund
Bob R. Baker Frank S. Bayley James T. Bunch Bruce L. Crockett Albert R. Dowden Edward K. Dunn, Jr. Jack M. Fields Carl Frischling Robert H. Graham Gerald J. Lewis Prema Mathai-Davis Lewis F. Pennock Ruth H. Quigley Louis S. Sklar Larry Soll, Ph.D. Mark H. Williamson	Robert H. Graham Chairman and President Raymond R. Cunningham Executive Vice President Mark H. Williamson Executive Vice President Kevin M. Carome Senior Vice President and Chief Legal Officer Sidney M. Dilgren Vice President and Treasurer Robert G. Alley Vice President Stuart W. Coco Vice President Melville B. Cox Vice President Karen Dunn Kelley Vice President Edgar M. Larsen Vice President	11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Investment Advisor A I M Advisors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Sub-Advisor INVESCO Institutional (N.A.), Inc. One Midtown Plaza 1360 Peachtree Street, N.E. Suite 100 Atlanta, GA 30309 Transfer Agent A I M Investment Services, Inc. P.O. Box 4739 Houston, TX 77210-4739 Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110 Counsel to the Fund Ballard Spahr Andrews & Ingersoll, LLP 1735 Market Street Philadelphia, PA 19103-7599 Counsel to the Trustees Kramer, Levin, Naftalis & Frankel LLP 919 Third Avenue New York, NY 10022-3852 Distributor A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173

Domestic Equity

AIM Aggressive Growth Fund

AIM Balanced Fund*

AIM Basic Balanced Fund*

AIM Basic Value Fund

AIM Blue Chip Fund

AIM Capital Development Fund

AIM Charter Fund

AIM Constellation Fund

AIM Dent Demographic Trends Fund

AIM Diversified Dividend Fund¹

AIM Emerging Growth Fund

AIM Large Cap Basic Value Fund

AIM Large Cap Growth Fund

AIM Libra Fund

AIM Mid Cap Basic Value Fund

AIM Mid Cap Core Equity Fund

AIM Mid Cap Growth Fund

AIM Opportunities I Fund

AIM Opportunities II Fund

AIM Opportunities III Fund

AIM Premier Equity Fund

AIM Select Equity Fund

AIM Small Cap Equity Fund²

AIM Small Cap Growth Fund³

AIM Trimark Endeavor Fund

AM Trimark Small Companies Fund

AIM Weingarten Fund

INVESCO Core Equity Fund

INVESCO Dynamics Fund

INVESCO Mid-Cap Growth Fund

INVESCO Small Company Growth Fund

INVESCO S&P 500 Index Fund

INVESCO Total Return Fund*

* Domestic equity and income fund

International/Global Equity

AIM Asia Pacific Growth Fund

AIM Developing Markets Fund

AIM European Growth Fund

AIM European Small Company Fund

AIM Global Aggressive Growth Fund

AIM Global Growth Fund

AIM Global Trends Fund⁵

AIM Global Value Fund⁶

AIM International Emerging Growth Fund

AIM International Growth Fund

AIM Trimark Fund

INVESCO International Core Equity Fund⁷

Sector Equity

AIM Global Health Care Fund

AIM Real Estate Fund

INVESCO Advantage Health Sciences Fund

INVESCO Energy Fund

INVESCO Financial Services Fund

INVESCO Gold & Precious Metals Fund

INVESCO Health Sciences Fund

INVESCO Leisure Fund

INVESCO Multi-Sector Fund

INVESCO Technology Fund

INVESCO Utilities Fund

Fixed Income

TAXABLE

AIM Floating Rate Fund

AIM High Yield Fund

AIM Income Fund

AIM Intermediate Government Fund

AIM Limited Maturity Treasury Fund

AIM Money Market Fund

AIM Short Term Bond Fund

AIM Total Return Bond Fund

INVESCO U.S. Government Money Fund

TAX-FREE

AIM High Income Municipal Fund

AIM Municipal Bond Fund

AIM Tax-Exempt Cash Fund

AIM Tax-Free Intermediate Fund

Consider the investment objectives, risks, and charges and expenses carefully. For this and other important information about AIM and INVESCO funds, obtain a prospectus from your financial advisor or AIMinvestments.com and read it thoroughly before investing.

¹Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. ²As of the close of business on February 27, 2004, AIM Mid Cap Core Equity Fund is available to new investors on a limited basis. For information on who may continue to invest in AIM Mid Cap Core Equity Fund, please contact your financial advisor. ³AIM Small Cap Equity Fund was closed to most investors on December 19, 2003. For information on who may continue to invest in AIM Small Cap Equity Fund, please contact your financial advisor. ⁴AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. ⁵Effective March 31, 2004, AIM Global Trends Fund was renamed AIM Global Equity Fund. ⁶Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. ⁷Effective November 24, 2003, INVESCO International Blue Chip Value Fund was renamed INVESCO International Core Equity Fund.

If used after April, 2004, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual funds distributed by A I M Distributors, Inc.

A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $149 billion in assets for approximately 11 million shareholders, including individual investors, corporate clients and financial institutions. AIM is a subsidiary of AMVESCAP PLC, one of the world’s largest independent financial services companies with $371 billion in assets under management. Data as of December 31, 2003.

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INVESCO Mid-Cap Growth Fund

Semiannual Report to Shareholders • January 31, 2004

COVER IMAGE

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INVESCO MID-CAP GROWTH FUND seeks long-term capital growth.

n Unless otherwise indication, information presented is as of 1/31/04 and is based on total net assets.

About share classes

n Effective 9/30/03, Class B shares are not available as an investment for retirement plans maintained pursuant to Section 401 of the Internal Revenue Code, including 401(k) plans, money purchase pension plans and profit sharing plans. Plans that have existing accounts invested in Class B shares will continue to be allowed to make additional purchases.

n Investor Class shares are closed to most investors. For more information on who may continue to invest in the Investor Class shares, please see the appropriate prospectus.

Principal risks of investing in the fund

n At any given time, the fund is subject to sector risk, which means a certain sector may underperform other sectors or the market as a whole. The fund is not limited with respect to the sectors in which it can invest.

n By concentrating on a small number of holdings, the fund carries greater risk because each investment has a greater effect on the fund’s overall performance.

n Investing in small and mid-size companies involves risks not associated with investing in more established companies. Also, small companies have business risk, significant stock price fluctuations and illiquidity.

n International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values of other currencies, the custody arrangements made for the fund’s foreign holdings, differences in accounting, political risks and the lesser degree of public information required to be provided by non-U.S. companies. The fund may invest 100% of its assets in the securities of non-U.S. issuers.

About indexes used in this report

n The unmanaged Russell Midcap^® Growth Index is a subset of the Russell Midcap Index, which represents the performance of the stocks of domestic mid-capitalization companies; the Growth subset measures the performance of Russell Midcap companies with higher price/book ratios and higher forecasted growth values.

n The unmanaged Lipper Mid-Cap Growth Fund Index represents an average of the performance of the 30 largest mid-capitalization growth funds tracked by Lipper, Inc., an independent mutual fund performance monitor.

n The unmanaged Standard & Poor’s Composite Index of 500 Stocks (the S&P 500^® Index) is an index of common stocks frequently used as a general measure of U.S. stock market performance.

n The fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the fund may deviate significantly from the performance of the indexes.

n A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of an index of funds reflects fund expenses; performance of a market index does not.

Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor’s.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, AIMinvestments.com.

This report must be accompanied or preceded by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Read it carefully before you invest.

Not FDIC Insured             May lose value             No bank guarantee

AIMinvestments.com

TO OUR SHAREHOLDERS

	Dear Fellow Shareholder in The AIM Family of Funds®:
GRAHAM PHOTO	Major stock market indexes here and abroad delivered positive performance during the six months covered by this report. As is historically the case, bond market returns were more modest, but positive as well. The U.S. economy appears to have turned a corner, with solid growth in gross domestic product during the third and fourth quarters of 2003. Overseas, particularly in Europe, economic performance picked up during the second half of 2003.
Robert H.Graham	Investors in the United States seem to have regained their confidence. They added $43.8 billion to U.S. stock mutual funds in January 2004 and $496 million to bond funds. By contrast, money market funds, considered a safe haven because of their emphasis on stability of net asset value, suffered large net outflows during the month. As the reporting period closed, total mutual fund assets stood at a record $7.54 trillion. The durability of these trends is, of course, unpredictable, and we caution our shareholders against thinking that 2004 will see a rerun of the markets’ good performance during 2003. That said, it is also true that the economy appears to have the wind at its back in terms of fiscal, monetary and tax stimulus, and corporate earnings have been strong.
	What should investors do? They should do what we have always urged: Keep their eyes on their long-term goals, keep their portfolios diversified, and work with their financial advisors to tailor their investments to their risk tolerance and investment objectives. We cannot overemphasize the importance of professional guidance when it comes to selecting investments.
	For information on your fund’s performance and management during the reporting period, please see the management discussion that begins on the following page.
	Visit our Web site
	As you are aware, the mutual fund industry and AIM Investments have been the subject of allegations and investigations of late surrounding the issues of market timing and late trading in funds. We understand how unsettling this may be for many of our shareholders. We invite you to visit AIMinvestments.com, our Web site, often. We will continue to post updates on these issues as information becomes available.
	The Securities and Exchange Commission, which regulates our industry, has already proposed new rules and regulations, and is planning to propose several more, that address the issues of market timing and late trading, among others. The Investment Company Institute, the industry trade group, and we welcome these efforts. We believe comprehensive rule making is necessary and is the best way to establish new industry responsibilities designed to protect shareholders. We support practical rule changes and structural modifications that are fair, enforceable and, most importantly, beneficial for investors.
	Should you visit our Web site, we invite you to explore the other material available there, including general investing information, performance updates on our funds, and market and economic commentary from our financial experts.
	As always, AIM is committed to building solutions for your investment goals, and we thank you for your continued participation in AIM Investments. If you have any questions, please contact our Client Service representatives at 800-959-4246.
	Sincerely,
	GRAHAM SIGNATURE
	Robert H. Graham Chairman and President
	March 9, 2004

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

Technology, consumer discretionary stocks strengthen INVESCO Mid-Cap Growth returns

During the six-month reporting period ended January 31, 2004, INVESCO Mid-Cap Growth Fund Class A shares returned 17.10% at net asset value. (If sales charges were included, returns would be lower.) Returns of other share classes are found at the bottom of page 3. The fund’s style-specific benchmark, the Russell Midcap Growth Index, returned 19.88%, and the broad-based benchmark, the S&P 500^® Index, returned 15.22%.

Market conditions

The S&P 500 Index rallied amid a backdrop of generally improving economic conditions. During this rally, the nation’s gross domestic product (GDP), widely regarded as the broadest measure of economic activity, expanded at an annualized rate of 8.2% in the third quarter and 4.1% in the fourth quarter of 2003. In a report to Congress in February 2004, the Federal Reserve Board (the Fed) noted that industrial production, corporate profits and business and consumer spending all increased during the reporting period.

Indeed, total sales from November 2003 through January 2004 were up 6.2% compared with the same three months a year earlier. The period included the holiday season, which is critical from a sales perspective for many businesses. The Fed also noted in its report that capital spending increased, and there was evidence that some firms had started to build up their inventories. Indicators that business confidence had improved. The housing market also continued to be “robust,” according to the Fed.

Inflation was subdued and interest rates were low. During the reporting period, the Fed kept the short-term federal funds rate at 1.00%, its lowest level since 1958. The job market remained weak, however. While the unemployment rate declined during the reporting period, it was still 5.6% at the end of January 2004.

All sectors of the S&P 500 Index recorded gains for the reporting period. Information technology, energy and industrials were the top-performing sectors while health care, consumer staples and telecommunication services were the weakest-performing sectors.

The multi-year bear market bottomed in March 2003, and the market has steadily climbed since then. During the market rally, small- and mid-cap stocks have generally outpaced large-cap stocks and, as a result, the fund has posted strong gains over the past six months.

Your fund

Over the past six months, we increased the fund’s weighting in the technology, consumer discretionary and telecommunications services sectors and decreased exposure to more defensive sectors, including consumer discretionary, consumer staples and financials. We did this to take better advantage of the economy’s improving momentum and outlook. The fund outperformed the S&P 500 Index for three principal reasons:

n The fund was overweight in technology in comparison with the S&P 500 Index, and technology was one of the broad-based index’s best-performing sectors.

n We had strong stock selection in health care.

n We had strong stock selection in consumer staples and industrials.

The fund’s health care holdings contributed positively to the fund’s performance. Zimmer Holdings (orthopedic implants), Teva Pharmaceutical Industries (generic drugs) and Boston Scientific (drug-coated stents) were the key contributors.

The fund’s industrial sector stocks were positive

TOP 10 EQUITY HOLDINGS*

1. Juniper Networks, Inc.	2.4	%
2. EchoStar Communications Corp.-Class A	2.2
3. Siebel Systems, Inc.	2.2
4. Xilinx, Inc.	2.2
5. Legg Mason, Inc.	2.2
6. Mandalay Resort Group	2.1
7. Network Appliance, Inc.	2.1
8. Zimmer Holdings, Inc.	2.0
9. Univision Communications Inc.-Class A	1.9
10. TJX Cos., Inc. (The)	1.9

TOP 10 INDUSTRIES*

1. Semiconductors	8.0	%
2. Application Software	7.9
3. Broadcasting & Cable TV	7.8
4. Asset Management & Custody Banks	6.0
5. Pharmaceuticals	5.6
6. Health Care Equipment	4.8
7. Communication Equipment	4.3
8. Computer Storage & Peripherals	3.3
9. Data Processing & Outsourced Services	3.0
10. Industrial Machinery	2.9

* Excludes money market fund holdings. The fund’s holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security.

2

contributors. Donaldson Co. (industrial filters), Apollo Group (commercial education) and Robert Half International (professional staffing) fueled strong performance in this sector. Financials also contributed positively to fund performance, with the key stocks being more volatile holdings such as Legg Mason.

While the fund’s technology stocks generally posted impressive gains, they didn’t quite keep pace with the rally in the most speculative tech stocks that had become even more depressed in price at the March 2003 market bottom. We missed a performance opportunity by not holding such stocks as International Game Technology, Electronic Arts and Staples, which returned 91%, 81% and 55%, respectively.

The biggest contributors to fund performance were Juniper Networks, Inc., which returned 65.48% for the reporting period, and Zimmer Holdings, Inc., which returned 59.47%. Juniper Networks, which designs and sells Internet protocol routers for private and public access networks, has experienced impressive growth in a market dominated by Cisco. Early in 2004 Juniper announced plans to acquire NetScreen Technologies in a stock deal initially valued at about $4 billion.

Detracting from fund performance was Gilead Sciences, which declined after the company missed its fourth-quarter earnings projections and forward earnings estimates were revised downward. Also negatively impacting fund performance was The BISYS Group, a data processing outsourcing firm, which declined 26.24% during the reporting period.

The company announced its first quarter (fiscal year 2004) earnings would fall substantially short of estimates due to a shortfall in its insurance customer business. Both stocks were sold during the reporting period.

In closing

We are pleased with the fund’s double-digit returns over the past six months as we continued to seek long-term capital growth by investing at least 80% of the fund’s total net assets in common stock of high quality growth companies with medium market capitalizations.

See important fund and index disclosures inside front cover.

MILLER PHOTO

Timothy J. Miller

Mr. Miller, CFA, is lead portfolio manager of INVESCO Mid-Cap Growth Fund. As INVESCO’s chief investment officer, he is responsible for developing resources and providing overall strategic direction to the investment team and assists in the management of INVESCO’s team-managed growth funds. Prior to joining INVESCO in 1992, Mr. Miller served as an analyst/portfolio manager. His investment career began in 1979. Mr. Miller holds a master’s of business administration from the University of Missouri in St. Louis and a bachelor’s in business administration from St. Louis University.

FENTON PHOTO

Michelle Espelien Fenton

Ms. Fenton, CFA, has more than eight years of investment industry experience. Before joining the investment division of INVESCO in 1998, she worked as an equity analyst. Ms. Fenton received her bachelor’s degree in finance from Montana State University.

FUND VS. INDEXES

Total returns, 7/31/03-1/31/04, excluding applicable sales charges. If sales charges were included, returns would be lower.

Class A Shares		17.10	%
Class B Shares		16.68
Class C Shares		16.72
Institutional Class Shares		17.24
Investor Class Shares		17.07
Russell Midcap Growth Index		19.88
S&P 500 Index		15.22
Lipper Mid-Cap Growth Fund Index		15.37
Source: Lipper, Inc.
TOTAL NUMBER OF HOLDINGS*		76
TOTAL NET ASSETS	$	20.2 million

[ARROW GRAPHIC LOGO]

For a presentation of your fund’s long-term performance record, please turn the page.

3

LONG-TERM PERFORMANCE

Your fund’s long-term performance

Below you will find a presentation of your fund’s long-term performance record for periods ended 1/31/04, the close of the six-month period covered by this report. As required by industry regulations, we also present long-term performance for periods ended 12/31/03, the most recent calendar quarter-end.

Please read the important disclosure accompanying these tables, which explains how fund performance is calculated and the sales charges, if any, that apply to the share class in which you are invested.

AVERAGE ANNUAL TOTAL RETURNS

As of 1/31/04, including sales charges

Class A Shares
Inception (10/1/01)	12.29	%
1 Year	30.13
Class B Shares
Inception (10/1/01)	13.12	%
1 Year	31.82
Class C Shares
Inception (10/1/01)	13.90	%
1 Year	35.78
Investor Class Shares
Inception (9/3/02)	27.29	%
1 Year	37.73

AVERAGE ANNUAL TOTAL RETURNS

As of 12/31/03, including sales charges

Class A Shares
Inception (10/1/01)	11.42	%
1 Year	24.55
Class B Shares
Inception (10/1/01)	12.29	%
1 Year	25.91
Class C Shares
Inception (10/1/01)	13.09	%
1 Year	29.76
Investor Class Shares
Inception (9/3/02)	26.65	%
1 Year	31.82

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit AIMinvestments.com for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

When sales charges are included in performance figures, Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Investor Class shares have no sales charge; therefore, performance quoted is at net asset value. The performance of the fund’s share classes will differ due to different sales charge structures and class expenses.

Had the advisor not waived fees and/or reimbursed expenses, returns would have been lower.

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For More Information Visit AlMinvestments.con

4

SUPPLEMENT TO SEMIANNUAL REPORT DATED 1/31/04

INVESCO Mid-Cap Growth Fund

INSTITUTIONAL CLASS SHARES

The following information has been prepared to provide Institutional Class shareholders with a performance overview specific to their holdings. Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Performance of Institutional Class shares will differ from performance of Investor Class shares due to differing sales charges and class expenses.

AVERAGE ANNUAL TOTAL RETURNS

For periods ended 1/31/04

Inception (9/9/98)	11.90	%
5 Years	7.80
1 Year	38.20
6 Months*	17.24

AVERAGE ANNUAL TOTAL RETURNS

For periods ended 12/31/03, most recent calendar quarter-end

Inception (9/9/98)	11.52	%
5 Years	7.49
1 Year	32.10
6 Months*	18.77

*Cumulative return that has not been annualized.

Please note that past performance is not indicative of future results. More recent returns may be more or less than those shown. All returns assume reinvestment of distributions at net asset value. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. See full report for information on comparative benchmarks. If you have questions, please consult your fund prospectus or call 800-525-8085, where you can also obtain more current month-end performance. A I M Distributors, Inc.

FOR INSTITUTIONAL INVESTOR USE ONLY

This material is prepared for institutional investor use only and may not be quoted, reproduced or shown to members of the public, nor used in written form as sales literature for public use.

	Your goals. Our solutions.SM	AIM LogoSM
AIMinvestments.com     I-MCG-INS-2

FINANCIALS

Schedule of Investments

January 31, 2004

(Unaudited)

	Shares	Market Value
Common Stocks & Other Equity Interests–95.89%
Advertising–0.69%
Omnicom Group Inc.	1,700	$	140,080
Aerospace & Defense–1.32%
L-3 Communications Holdings, Inc.(a)	5,000		267,300
Air Freight & Logistics–1.50%
Robinson (C.H.) Worldwide, Inc.	8,001		303,238
Apparel Retail–1.87%
TJX Cos., Inc. (The)	16,485		378,990
Application Software–7.90%
Amdocs Ltd. (United Kingdom)(a)	10,600		300,722
BEA Systems, Inc.(a)	21,600		272,808
Fair Issac Corp.	5,300		314,661
Intuit Inc.(a)	5,350		269,747
Siebel Systems, Inc.(a)	33,100		441,223
			1,599,161
Asset Management & Custody Banks–6.01%
Franklin Resources, Inc.	5,700		329,289
Legg Mason, Inc.	4,950		438,322
Northern Trust Corp.	4,920		233,700
T. Rowe Price Group Inc.	4,100		213,733
			1,215,044
Biotechnology–1.74%
Biotech HOLDRS Trust(a)	400		56,060
Genzyme Corp.(a)	5,400		296,190
			352,250
Broadcasting & Cable TV–7.75%
Cox Communications, Inc.–Class A(a)	11,000		376,860
Cox Radio, Inc.–Class A(a)	7,400		172,198
EchoStar Communications Corp.–Class A(a)	12,150		443,475
Scripps Co. (E.W.) (The)–Class A	2,000		190,220
Univision Communications Inc.–Class A(a)	10,900		385,533
			1,568,286
Casinos & Gaming–2.42%
International Game Technology	1,800		67,428
Mandalay Resort Group	9,000		421,830
			489,258

	Shares	Market Value
Communications Equipment–4.29%
Emulex Corp.(a)	10,100	$	274,013
Foundry Networks, Inc.(a)	4,900		116,767
Juniper Networks, Inc.(a)	16,500		476,685
			867,465
Computer Storage & Peripherals–3.31%
Lexmark International, Inc.(a)	3,000		248,670
Network Appliance, Inc.(a)	18,825		420,927
			669,597
Construction & Farm Machinery & Heavy Trucks–0.89%
PACCAR Inc.	2,300		180,849
Data Processing & Outsourced Services–2.98%
Fiserv, Inc.(a)	8,447		315,580
Hewitt Associates, Inc.–Class A(a)	8,300		287,180
			602,760
Distillers & Vintners–0.51%
Constellation Brands, Inc.–Class A(a)	3,100		103,974
Diversified Commercial Services–2.44%
Apollo Group, Inc.–Class A(a)	4,215		313,006
Cintas Corp.	4,000		180,600
			493,606
Employment Services–1.42%
Robert Half International Inc.(a)	12,200		286,578
Environmental Services–0.37%
Stericycle, Inc.(a)	1,700		75,140
Food Retail–0.96%
Whole Foods Market, Inc.	2,895		195,326
Health Care Distributors–1.63%
Henry Schein, Inc.(a)	4,700		329,658
Health Care Equipment–4.77%
Biomet, Inc.	4,300		166,238
Boston Scientific Corp.(a)	3,750		152,962
Stryker Corp.	2,700		239,598
Zimmer Holdings, Inc.(a)	5,300		405,450
			964,248

F-1

	Shares	Market Value
Health Care Services–2.03%
Caremark Rx, Inc.(a)	8,000	$	214,000
Lincare Holdings Inc.(a)	6,125		197,102
			411,102
Health Care Supplies–1.06%
Smith & Nephew PLC (United Kingdom)	24,600		215,059
Homebuilding–1.10%
D.R. Horton, Inc.	3,300		92,730
Pulte Homes, Inc.	3,000		129,420
			222,150
Hotels, Resorts & Cruise Lines–1.39%
Hilton Hotels Corp.	17,600		281,600
Industrial Gases–0.94%
Praxair, Inc.	5,350		189,443
Industrial Machinery–2.91%
Donaldson Co., Inc.	5,315		287,116
Eaton Corp.	2,600		301,990
			589,106
Integrated Oil & Gas–1.47%
Murphy Oil Corp.	4,900		296,744
Leisure Products–1.29%
Marvel Enterprises, Inc.(a)	8,100		261,063
Managed Health Care–0.93%
Anthem, Inc.(a)	2,300		188,094
Metal & Glass Containers–1.07%
Ball Corp.	3,475		217,431
Oil & Gas Equipment & Services–1.63%
Smith International, Inc.(a)	6,800		329,528
Oil & Gas Exploration & Production–0.90%
Apache Corp.	4,714		181,395
Pharmaceuticals–5.57%
Barr Pharmaceuticals Inc.(a)	3,650		274,809
Shire Pharmaceuticals Group PLC–ADR (United Kingdom)(a)	11,900		348,075
Teva Pharmaceutical Industries Ltd.–ADR (Israel)	6,000		375,540
Valeant Pharmaceuticals International	5,500		129,140
			1,127,564

		Shares	Market Value
Property & Casualty Insurance–1.62%
Ambac Financial Group, Inc.		2,917	$	218,104
SAFECO Corp.		2,500		108,825
				326,929
Restaurants–1.42%
Applebee’s International, Inc.		2,500		95,300
CBRL Group, Inc.		2,400		90,072
Starbucks Corp.(a)		2,800		102,928
				288,300
Semiconductor Equipment–1.44%
KLA–Tencor Corp.(a)		5,100		291,057
Semiconductors–7.97%
Altera Corp.(a)		9,625		215,504
Linear Technology Corp.		8,370		334,800
Maxim Integrated Products, Inc.		5,885		301,018
Microchip Technology Inc.		11,125		320,400
Xilinx, Inc.(a)		10,500		440,055
				1,611,777
Specialty Stores–1.45%
Staples, Inc.(a)		11,000		292,710
Systems Software–2.86%
Symantec Corp.(a)		8,400		325,920
VERITAS Software Corp.(a)		7,700		253,022
				578,942
Trading Companies & Distributors–1.02%
Fastenal Co.	��	4,275		205,542
Wireless Telecommunication Services–1.05%
Nextel Partners, Inc.–Class A(a)		16,400		212,052
Total Common Stocks & Other Equity Interests (Cost $16,047,315)				19,400,396
Money Market Funds–1.92%
INVESCO Treasurer’s Series Money Market Reserve Fund (Cost $387,814)(b)		387,814		387,814
TOTAL INVESTMENTS–97.81% (Cost $16,435,129)				19,788,210
OTHER ASSETS LESS LIABILITIES–2.19%				442,605
NET ASSETS–100.00%			$	20,230,815

InvestmentAbbreviations:

ADR       – American Depositary Receipt

HOLDRS– Holding Company Depositary Receipts

Notes to Schedule of Investments:

(a) Non-income producing security.

(b) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 3.

See accompanying notes which are an integral part of the financial statements.

F-2

Statement of Assets and Liabilities

January 31, 2004

(Unaudited)

Assets:
Investments, at market value (cost $16,047,315)	$	19,400,396
Investments in affiliated money market funds (cost $387,814)		387,814
Total investments (cost $16,435,129)		19,788,210
Receivables for:
Investments sold		395,315
Fund shares sold		10,643
Dividends		4,130
Amount due from advisor		91,702
Investment for deferred compensation and retirement plans		2,390
Other assets		29,447
Total assets		20,321,837
Liabilities:
Payables for:
Investments purchased		4,384
Fund shares reacquired		42,537
Deferred compensation and retirement plans		2,429
Accrued distribution fees		8,079
Accrued trustees’ fees		491
Accrued operating expenses		33,102
Total liabilities		91,022
Net assets applicable to shares outstanding	$	20,230,815
Net assets consist of:
Shares of beneficial interest	$	18,072,986
Undistributed net investment income (loss)		(133,068	)
Undistributed net realized gain (loss) from investment securities and foreign currencies		(1,062,184	)
Unrealized appreciation of investment securities		3,353,081
	$	20,230,815

Net Assets:
Class A	$	7,406,260
Class B	$	3,002,968
Class C	$	2,765,577
Investor Class	$	5,721,769
Institutional Class	$	1,334,241
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		452,050
Class B		186,512
Class C		172,842
Investor Class		348,668
Institutional Class		81,047
Class A:
Net asset value per share	$	16.38
Offering price per share:
(Net asset value of $16.38 ÷ 94.50%)	$	17.33
Class B:
Net asset value and offering price per share	$	16.10
Class C:
Net asset value and offering price per share	$	16.00
Investor Class:
Net asset value and offering price per share	$	16.41
Institutional Class:
Net asset value and offering price per share	$	16.46

See accompanying notes which are an integral part of the financial statements.

F-3

Statement of Operations

For the six months ended January 31, 2004

(Unaudited)

Investment income:
Dividends (net of foreign withholding tax of $252)	$	32,197
Dividends from affiliated money market funds		2,687
Total investment income		34,884
Expenses:
Advisory fees		94,140
Administrative services fees		9,264
Custodian fees		8,282
Distribution fees:
Class A		12,162
Class B		13,756
Class C		13,112
Investor Class		6,423
Transfer agent fees:
Class A		11,358
Class B		4,488
Class C		5,617
Investor Class		19,554
Institutional Class		793
Trustees’ fees		4,246
Registration and filing fees		44,293
Printing and postage fees		23,148
Professional fees		32,551
Other		2,494
Total expenses		305,681
Less:  Fees waived and expenses reimbursed		(137,846	)
Net expenses		167,835
Net investment income (loss)		(132,951	)
Realized and unrealized gain from investment securities and foreign currencies:
Net realized gain from:
Investment securities		1,331,417
Foreign currencies		286
		1,331,703
Change in net unrealized appreciation of investment securities		1,608,771
Net gain from investment securities and foreign currencies		2,940,474
Net increase in net assets resulting from operations	$	2,807,523

See accompanying notes which are an integral part of the financial statements.

F-4

Statement of Changes in Net Assets

For the six months ended January 31, 2004, the three months ended July 31, 2003 and the year ended April 30, 2003

(Unaudited)

	Six months ended January 31, 2004			Three months ended July 31, 2003			Year ended April 30, 2003
Operations:
Net investment income (loss)	$	(132,951	)	$	(54,471	)	$	(131,697	)
Net realized gain (loss) from investment securities and foreign currencies		1,331,703			358,022			(647,698	)
Change in net unrealized appreciation (depreciation) of investment securities and foreign currencies		1,608,771			1,153,489			(380,224	)
Net increase (decrease) in net assets resulting from operations		2,807,523			1,457,040			(1,159,619	)
Share transactions–net:
Class A		(127,773	)		261,100			3,400,934
Class B		111,078			105,376			1,211,254
Class C		133,647			37,745			1,678,542
Investor Class		1,168,005			954,033			2,456,802
Institutional Class		(149,807	)		37,841			(938,761	)
Net increase in net assets resulting from share transactions		1,135,150			1,396,095			7,808,771
Net increase in net assets		3,942,673			2,853,135			6,649,152
Net assets:
Beginning of period		16,288,142			13,435,007			6,785,855
End of period (including undistributed net investment income (loss) of $(133,068), $(117) and $(102) for January 31, 2004, July 31, 2003 and April 30, 2003, respectively)	$	20,230,815		$	16,288,142		$	13,435,007

NOTE 1—Significant Accounting Policies

INVESCO Mid-Cap Growth Fund (the “Fund”) is a series portfolio of AIM Stock Funds (the “Trust”, formerly known as, INVESCO Stock Funds, Inc.). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of four separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The Fund currently consists of multiple classes of shares. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund.

The Fund’s investment objective is to seek long-term capital growth. Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end, and as such, the net asset value for shareholder transactions may be different than the net asset value reported in these financial statements. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued 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. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers in a manner specifically authorized 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

Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are determined as of the close of the respective markets. 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 a development/event is so significant such that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Trustees. Adjustments to closing prices to reflect fair value on affected foreign securities may be provided by an 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.

B. Securities Transactions and Investment Income —Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes.

D. Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. Any capital loss carryforwards listed are reduced for limitations, if any, to the extent required by the Internal Revenue Code.

E. Foreign Currency Translations — Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. 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.

F. Foreign Currency Contracts — A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund may enter into a foreign currency contract to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. The Fund may also enter into a foreign currency contract for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. The Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably.

G. Expenses — Each Class bears expenses incurred specifically on its behalf and, in addition, each Class bears a portion of general expenses, based on relative net assets of each Class.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with A I M Advisors, Inc. (“AIM”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee at the annual rate of 1.00% of the Fund’s average daily net assets. For the period November 25, 2003 through January 31, 2004, the Fund paid advisory fees to AIM of $36,497. Prior to November 25, 2003, the Trust had an investment advisory agreement with INVESCO Funds Group, Inc. (“IFG”). For the period August 1, 2003 through November 24, 2003, the Fund paid advisory fees to IFG of $57,643. AIM has entered into a sub-advisory agreement with INVESCO Institutional (N.A.), Inc. (“INVESCO”) whereby AIM pays INVESCO 40% of the fee paid by the Fund to AIM.

AIM has contractually agreed to limit total annual operating expenses for Class A, Class B, Class C, Class K, Investor Class and Institutional Class shares to 2.10%, 2.75%, 2.75%, 2.20%, 2.00% and 1.75%, respectively and has voluntarily agreed to limit total annual operating expenses of Class A, Class B, Class C, Class K, Investor Class and Institutional Class shares to 1.65%, 2.30%, 2.30%, 1.75%, 1.55% and 1.30%, respectively. The expense limitations exclude interest, taxes, fund merger and reorganization expenses, extraordinary items, including other items designated as such by the Board of Trustees and increases in expenses due to expense offset arrangements, if any. Voluntary fee waivers or reimbursements may be modified or discontinued at any time without further notice to investors after April 30, 2004 upon consultation with the Board of Trustees. Further, AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds on investments by the Fund in such affiliated money market funds (excluding investments made in money market funds with cash collateral from securities loaned by the Fund, if any). For the six months ended January 31, 2004, AIM waived fees of $30,828.

F-6

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates (continued)

For the period November 25, 2003 through January 31, 2004, AIM reimbursed other class-specific expenses of the Fund of $16,535, $12,309, $12,327, $12,288 and $23,991 for Class A, Class B, Class C, Investor Class and Institutional Class shares, respectively. Prior to November 25, 2003, IFG reimbursed other class-specific expenses of the Fund of $9,461, $3,077, $4,746, $178 and $12,088 for Class A, Class B, Class C, Investor Class and Institutional Class shares, respectively. For the period November 25, 2003 through January 31, 2004, AIM reimbursed fund level expenses of the Fund of $18. Prior to November 25, 2003, IFG did not reimburse fund level expenses of the Fund.

AIM is entitled to reimbursement from a Fund that has had fees and expenses absorbed pursuant to these arrangements if such reimbursements do not cause the Fund to exceed the then current expense limitations and the reimbursement is made within three years after AIM incurred the expense. At January 31, 2004, the reimbursement that may potentially be made by the Fund to AIM which will expire during the calendar year ended 2005 for Class A, Class B, Class C, Investor Class and Institutional Class was $30,539, $14,480, $16,192, $7,739 and $25,661, respectively, expiring during the calendar year ended 2006 for Class A, Class B, Class C, Investor Class and Institutional Class was $39,221, $17,947, $22,737, $32,105 and $19,008, respectively and expiring during the calendar year ended 2007 for Class A, Class B, Class C, Investor Class and Institutional Class was $28,642, $17,191, $16,911, $32,849 and $13,490, respectively. During the six months ended January 31, 2004, the Fund did not reimburse AIM for previously reimbursed Fund expenses.

The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the period November 25, 2003 through January 31, 2004, AIM was paid $4,545 for such services. Prior to November 25, 2003, the Trust had an administrative services agreement with IFG. For the period August 1, 2003 through November 24, 2003, IFG was paid $4,719 for such services.

The Fund, pursuant to a transfer agency and service agreement, has agreed to pay AIM Investment Services, Inc. (“AISI”), formerly known as A I M Fund Services, Inc., a fee for providing transfer agency and shareholder services to the Fund. Prior to October 1, 2003, the Trust had a transfer agency and service agreement with IFG. For the period August 1, 2003 through September 30, 2003, IFG retained $11,484 for such services. For the period October 1, 2003 through January 31, 2004, AISI retained $28,383 for such services.

The Trust has entered into a master distribution agreement with A I M Distributors, Inc. (“AIM Distributors”) to serve as the distributor for the Class A, Class B, Class C, Class K, Investor Class and Institutional Class shares of the Fund. Class K shares have not commenced operations. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C, Class K and Investor Class shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays AIM Distributors compensation at the annual rate of 0.35% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares, 0.45% of the average daily net assets of Class K shares and 0.25% of the average daily net assets of Investor Class shares. Of these amounts, 0.25% of the average daily net assets of the Class A, Class B, Class C or Class K shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the six months ended January 31, 2004, the Class A, Class B, Class C and Investor Class shares paid $12,162, $13,756, $13,112 and $6,423, respectively.

Front-end sales commissions and contingent deferred sales charges (“CDSC”) (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the six months ended January 31, 2004 AIM Distributors retained $2,293 in front-end sales commissions from the sale of Class A shares and $7, $0 and $49 from Class A, Class B and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

Certain officers and trustees of the Trust are officers and directors of AIM, AISI, INVESCO and/or AIM Distributors.

NOTE 3—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 in affiliated money market funds. Each day the prior day’s balance invested in the affiliated money market fund is redeemed in full and a new purchase amount is submitted to invest the current day’s available cash. The table below shows the transactions in and earnings from investments in affiliated money market funds for the period ended January 31, 2004.

Fund	Market Value 07/31/2003		Purchases at Cost		Proceeds from Sales			Unrealized Appreciation (Depreciation)		Market Value 01/31/2004		Dividend Income		Realized Gain (Loss)
INVESCO Treasurer’s Series Money Market Reserve Fund	$	1,050,344	$	11,537,453	$	(12,199,983	)	$	—	$	387,814	$	2,687	$	—

F-7

NOTE 4—Expense Offset Arrangements

Indirect expenses under expense offset arrangements are comprised of transfer agency credits resulting from Demand Deposit Account (DDA) balances in transfer agency clearing accounts and custodian credits resulting from periodic overnight cash balances at the custodian. For the six months ended January 31, 2004, the Fund did not receive reductions in transfer agent fees from AISI (an affiliate of AIM) or reductions in custodian fees under expense offset arrangements.

NOTE 5—Trustees’ Fees

Trustees’ fees represent remuneration paid to each Trustee of the Trust who is not an “interested person” of AIM. Trustees have the option to defer compensation payable by the Trust. The Trustees deferring compensation have the option to select various AIM and INVESCO Funds in which their deferral accounts shall be deemed to be invested.

Current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees that also participate in a retirement plan and receive benefits under such plan.

During the six months ended January 31, 2004, the Fund paid legal fees of $517 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Borrowings

The Fund may participate in an interfund lending facility that AIM has established for temporary borrowings by the AIM Funds and the INVESCO Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. Under certain circumstances, a loan will be secured by collateral. To the extent that the loan is required to be secured by collateral, the collateral is marked to market daily to ensure that the market value is at least 102% of the outstanding principal value of the loan. The Fund did not borrow or lend under the facility during the six months ended January 31, 2004.

Effective December 6, 2003, the Fund became a participant in an uncommitted unsecured revolving credit facility with State Street Bank and Trust Company (“SSB”). The Fund may borrow up to the lesser of (i) $125,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which are parties to the credit facility can borrow on a first come, first served basis. Principal on each loan outstanding shall bear interest at the bid rate quoted by SSB at the time of the request for the loan. The Fund did not borrow under the facility during the six months ended January 31, 2004.

The Fund had available a committed Redemption Line of Credit Facility (“LOC”), from a consortium of national banks, to be used for temporary or emergency purposes to meet redemption needs. The LOC permitted borrowings to a maximum of 10% of the net assets at value of the Fund. Each fund agreed to pay annual fees and interest on the unpaid principal balance based on prevailing market rates as defined in the agreement. The funds which were party to the LOC were charged a commitment fee of 0.10% on the unused balance of the committed line. The Fund did not borrow under the LOC during six months ended January 31, 2004. The LOC expired December 3, 2003.

Additionally the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds in the account so the custodian can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank. In either case, the custodian bank will be compensated an amount equal to the Federal Funds rate plus 100 basis points.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be updated at the Fund’s fiscal year-end.

The Fund has a capital loss carryforward for tax purposes which expires as follows:

Expiration	Capital Loss Carryforward
July 31, 2009	$	1,926,559
July 31, 2010		117,419
Total capital loss carryforward	$	2,043,978

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended January 31, 2004 was $10,809,352 and $9,623,997, respectively.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	3,234,433
Aggregate unrealized (depreciation) of investment securities		(123,821	)
Net unrealized appreciation of investment securities	$	3,110,612

Cost of investments for tax purposes is $16,677,598.

F-8

NOTE 9—Share Information

The Fund currently consists of six different classes of shares: Class A shares, Class B shares, Class C shares, Class K shares, Investor Class shares and Institutional Class shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with CDSC. Class K shares, Investor Class shares and Institutional Class shares are sold at net asset value. Under some circumstances, Class A shares and Class K shares are subject to CDSC. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Class K shares have not commenced operations.

Changes in Shares Outstanding
	Six months ended January 31, 2004					Three months ended July 31, 2003					Year ended April 30, 2003
	Shares		Amount			Shares		Amount			Shares		Amount
Sold:
Class A	77,625		$	1,199,881		49,045		$	662,425		378,737		$	4,762,893
Class B	19,247			293,424		10,870			144,105		125,030			1,554,913
Class C	143,386			2,200,743		102,319			1,341,516		210,430			2,630,204
Investor Class *	707,117			10,800,288		160,744			2,163,284		705,662			8,614,158
Institutional Class	3,545			51,911		3,864			51,600		47,746			700,351
Automatic conversion of Class B shares to Class A shares:**
Class A	408			6,435		—			—		—			—
Class B	(415	)		(6,435	)	—			—		—			—
Reacquired:
Class A	(86,872	)		(1,334,089	)	(29,944	)		(401,325	)	(112,659	)		(1,361,959	)
Class B	(11,462	)		(175,911	)	(2,938	)		(38,729	)	(28,233	)		(343,659	)
Class C	(139,036	)		(2,067,096	)	(99,974	)		(1,303,771	)	(78,976	)		(951,662	)
Investor Class *	(629,688	)		(9,632,283	)	(89,794	)		(1,209,251	)	(505,373	)		(6,157,356	)
Institutional Class	(12,916	)		(201,718	)	(993	)		(13,759	)	(130,099	)		(1,639,112	)
	70,939		$	1,135,150		103,199		$	1,396,095		612,265		$	7,808,771

* Investor Class shares commenced sales on September 3, 2002.

** Prior to the six months ended January 31, 2004, conversion of Class B shares to Class A shares were included in Class A shares sold and Class B shares reacquired.

F-9

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Class A
	Six months ended January 31, 2004			Three months ended July 31, 2003			Year ended April 30, 2003			October 1, 2001 (Date sales commenced) to April 30, 2002
Net asset value, beginning of period	$	13.98		$	12.65		$	14.95		$	11.80
Income from investment operations:
Net investment income (loss)		(0.10	)		(0.00	)		(0.12	)		(0.10	)(a)
Net gains (losses) on securities (both realized and unrealized)		2.50			1.33			(2.18	)		3.25
Total from investment operations		2.40			1.33			(2.30	)		3.15
Net asset value, end of period	$	16.38		$	13.98		$	12.65		$	14.95
Total return(b)		17.17	%		10.51	%		(15.38	)%		26.69	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	7,406		$	6,444		$	5,587		$	2,627
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		1.65	%(c)		1.65	%(d)		1.65	%		1.65	%(d)
Without fee waivers and expense reimbursements		2.73	%(c)		2.85	%(d)		2.77	%		3.09	%(d)
Ratio of net investment income (loss) to average net assets		(1.28	)%(c)		(1.28	)%(d)		(1.16	)%		(1.44	)%(d)
Portfolio turnover rate(e)		54	%		23	%		50	%		23	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $6,912,178.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

	Class B
	Six months ended January 31, 2004			Three months ended July 31, 2003			Year ended April 30, 2003			October 1, 2001 (Date sales commenced) to April 30, 2002
Net asset value, beginning of period	$	13.79		$	12.49		$	14.86		$	11.80
Income from investment operations:												��
Net investment income (loss)		(0.14	)		(0.02	)		(0.17	)		(0.15	)(a)
Net gains (losses) on securities (both realized and unrealized)		2.45			1.32			(2.20	)		3.21
Total from investment operations		2.31			1.30			(2.37	)		3.06
Net asset value, end of period	$	16.10		$	13.79		$	12.49		$	14.86
Total return(b)		16.75	%		10.41	%		(15.95	)%		25.93	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	3,003		$	2,470		$	2,139		$	1,106
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		2.30	%(c)		2.30	%(d)		2.30	%		2.30	%(d)
Without fee waivers and expense reimbursements		3.75	%(c)		3.68	%(d)		3.71	%		4.06	%(d)
Ratio of net investment income (loss) to average net assets		(1.93	)%(c)		(1.92	)%(d)		(1.81	)%		(2.14	)%(d)
Portfolio turnover rate(e)		54	%		23	%		50	%		23	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $2,736,142.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-10

NOTE 10—Financial Highlights (continued)

	Class C
	Six months ended January 31, 2004			Three months ended July 31, 2003			Year ended April 30, 2003			October 1, 2001 (Date sales commenced) to April 30, 2002
Net asset value, beginning of period	$	13.70		$	12.42		$	14.84		$	11.80
Income from investment operations:
Net investment income (loss)		(0.15	)		(0.02	)		(0.25	)		(0.14	)(a)
Net gains (losses) on securities (both realized and unrealized)		2.45			1.30			(2.17	)		3.18
Total from investment operations		2.30			1.28			(2.42	)		3.04
Net asset value, end of period	$	16.00		$	13.70		$	12.42		$	14.84
Total return(b)		16.79	%		10.31	%		(16.31	)%		25.76	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	2,766		$	2,308		$	2,063		$	515
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		2.30	%(c)		2.30	%(d)		2.30	%		2.30	%(d)
Without fee waivers and expense reimbursements		3.93	%(c)		3.86	%(d)		3.88	%		4.45	%(d)
Ratio of net investment income (loss) to average net assets		(1.93	)%(c)		(1.92	)%(d)		(1.80	)%		(2.13	)%(d)
Portfolio turnover rate(e)		54	%		23	%		50	%		23	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $2,608,188.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

	Investor Class
	Six months ended January 31, 2004			Three months ended July 31, 2003			September 3, 2002 (Date sales commenced) to April 30, 2003
Net asset value, beginning of period	$	14.00		$	12.66		$	11.66
Income from investment operations:
Net investment income (loss)		(0.08	)		(0.01	)		(0.07	)(a)
Net gains on securities (both realized and unrealized)		2.49			1.35			1.07
Total from investment operations		2.41			1.34			1.00
Net asset value, end of period	$	16.41		$	14.00		$	12.66
Total return(b)		17.21	%		10.58	%		8.58	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	5,722		$	3,798		$	2,536
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		1.55	%(c)		1.55	%(d)		1.55	%(d)
Without fee waivers and expense reimbursements		3.28	%(c)		3.55	%(d)		3.57	%(d)
Ratio of net investment income (loss) to average net assets		(1.18	)%(c)		(1.18	)%(d)		(1.01	)%(d)
Portfolio turnover rate(e)		54	%		23	%		50	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $5,110,171.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-11

NOTE 10—Financial Highlights (continued)

	Institutional Class
	Six months ended January 31, 2004			Three months ended July 31, 2003			Year ended April 30,												September 9, 1998 (Date operations commenced) to April 30, 1999
							2003			2002			2001			2000
Net asset value, beginning of period	$	14.04		$	12.69		$	14.94		$	14.78		$	19.03		$	12.76		$	10.00
Income from investment operations:
Net investment income (loss)		(0.08	)		(0.03	)(a)		(0.11	)(a)		(0.15	)		(0.13	)		(0.12	)		(0.02	)
Net gains (losses) on securities (both realized and unrealized)		2.50			1.38			(2.14	)		0.31			(2.38	)		6.41			2.78
Total from investment operations		2.42			1.35			(2.25	)		0.16			(2.51	)		6.29			2.76
Less distributions:
Distributions from net realized gains		—			—			—			—			(1.64	)		(0.02	)		—
Returns of capital		—			—			—			—			(0.10	)		—			—
Total distributions		—			—			—			—			(1.74	)		(0.02	)		—
Net asset value, end of period	$	16.46		$	14.04		$	12.69		$	14.94		$	14.78		$	19.03		$	12.76
Total return(b)		17.24	%		10.64	%		(15.06	)%		1.08	%		(13.60	)%		49.49	%		27.50	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	1,334		$	1,269		$	1,111		$	2,538		$	19,742		$	17,703		$	6,185
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		1.30	%(c)		1.30	%(d)		1.30	%		1.30	%		1.30	%		1.31	%		1.30	%(d)
Without fee waivers and expense reimbursements		3.45	%(c)		3.15	%(d)		3.35	%		2.29	%		1.88	%		2.48	%		7.74	%(d)
Ratio of net investment income (loss) to average net assets		(0.93	)%(c)		(0.93	)%(d)		(0.83	)%		(1.06	)%		(0.90	)%		(0.95	)%		(0.68	)%(d)
Portfolio turnover rate(e)		54	%		23	%		50	%		23	%		41	%		42	%		24	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $1,358,981.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-12

NOTE 11—Legal Proceedings

Your Fund’s investment advisor, A I M Advisors, Inc. (“AIM”), is an indirect wholly owned subsidiary of AMVESCAP PLC (“AMVESCAP”). Another indirect wholly owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. (“IFG”), was formerly the investment advisor to the INVESCO Funds. IFG continues to serve as the investment advisor to INVESCO Variable Investment Funds, Inc. (“IVIF”). On November 25, 2003, AIM succeeded IFG as the investment advisor to the INVESCO Funds other than IVIF.

The mutual fund industry as a whole is currently subject to a wide range of inquiries and litigation related to a wide range of issues, including issues of “market timing” and “late trading.” Both AIM and IFG are the subject of a number of such inquiries, as described below.

    A.    Regulatory Inquiries and Actions

        1.    IFG

On December 2, 2003 each of the Securities and Exchange Commission (“SEC”) and the Office of the Attorney General of the State of New York (“NYAG”) filed civil proceedings against IFG and Raymond R. Cunningham, in his capacity as the chief executive officer of IFG. Mr. Cunningham also currently holds the positions of Chief Operating Officer and Senior Vice President of A I M Management Group Inc. (the parent of AIM) and the position of Senior Vice President of AIM. In addition, on December 2, 2003, the State of Colorado filed civil proceedings against IFG. Neither the Fund nor any of the other AIM or INVESCO Funds has been named as a defendant in any of these proceedings.

The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds’ prospectuses and to the INVESCO Funds’ independent directors that IFG had entered into certain arrangements permitting market timing of the INVESCO Funds. The SEC is seeking injunctions, including permanent injunctions from serving as an investment advisor, officer or director of an investment company; an accounting of all market timing as well as certain fees and compensation received; disgorgement; civil monetary penalties; and other relief.

The NYAG and Colorado complaints make substantially similar allegations. The NYAG is seeking injunctions, including permanent injunctions from directly or indirectly selling or distributing shares of mutual funds; disgorgement of all profits obtained, including fees collected, and payment of all restitution and damages caused, directly or indirectly from the alleged illegal activities; civil monetary penalties; and other relief. The State of Colorado is seeking injunctions; restitution, disgorgement and other equitable relief, civil monetary penalties; and other relief.

In addition, IFG has received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing and other related issues concerning the INVESCO Funds. These regulators include the Florida Department of Financial Services, the Commissioner of Securities for the State of Georgia, the Office of the State Auditor for the State of West Virginia, the Office of the Secretary of State for West Virginia, the Department of Banking for the State of Connecticut and the Colorado Securities Division. IFG has also received more limited inquiries concerning related matters from the United States Department of Labor, NASD Inc. and the SEC, none of which directly bears upon the Fund. IFG is providing full cooperation with respect to these inquiries.

        2.    AIM

AIM has also received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing, and related issues concerning the AIM Funds. AIM has received requests for information and documents concerning these and related matters from the SEC, the Massachusetts Secretary of the Commonwealth, the Office of the State Auditor for the State of West Virginia and the Department of Banking for the State of Connecticut. In addition, AIM has received subpoenas concerning these and related matters from the NYAG, the United States Attorney’s Office for the District of Massachusetts, the Commissioner of Securities for the State of Georgia and the Office of the Secretary of State for West Virginia. AIM has also received more limited inquiries from the SEC and NASD, Inc. concerning specific funds, entities and/or individuals, none of which directly bears upon the Fund. AIM is providing full cooperation with respect to these inquiries.

        3.    AMVESCAP Response

AMVESCAP is seeking to resolve both the pending regulatory complaints against IFG alleging market timing and the ongoing market timing investigations with respect to IFG and AIM. AMVESCAP recently found, in its ongoing review of these matters, that shareholders were not always effectively protected from the potential adverse impact of market timing and illegal late trading through intermediaries. These findings were based, in part, on an extensive economic analysis by outside experts who have been retained by AMVESCAP to examine the impact of these activities. In light of these findings, AMVESCAP has publicly stated that any AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities will receive full restitution. AMVESCAP has informed regulators of these findings. In addition, AMVESCAP has retained outside counsel to undertake a comprehensive review of AIM’s and IFG’s policies, procedures and practices, with the objective that they rank among the most effective in the fund industry.

There can be no assurance that AMVESCAP will be able to reach a satisfactory settlement with the regulators, or that any such settlement will not include terms which would have the effect of barring either or both of IFG and AIM, or any other investment advisor directly or indirectly owned by AMVESCAP, from serving as an investment advisor to any registered investment company including the Fund. The Fund has been informed by AIM that, if either of these results occurs, AIM will seek exemptive relief from the SEC to permit it to continue to serve as the Fund’s investment advisor. There can be no assurance that such exemptive relief will be granted. Any settlement with the regulators could also include terms which would bar Mr. Cunningham from serving as an officer or director of any registered investment company.

    B.    Private Actions

In addition to the complaints described above, multiple lawsuits, including purported class action and shareholder derivative suits, have been filed against various parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, A I M Management Group Inc., AMVESCAP, certain related entities and certain of their officers, including Mr. Cunningham). The allegations in the majority of the lawsuits are substantially similar to the allegations in the regulatory complaints against IFG described above. Certain other lawsuits allege that certain AIM and INVESCO Funds inadequately employed fair value pricing. Such lawsuits allege a variety of theories of recovery, including but not limited to: (i) violation of various provisions of the Federal and state securities laws; (ii) violation of various provisions of the Employee Retirement Income Security Act (“ERISA”); (iii) breach of fiduciary duty; and (iv) breach of contract. The lawsuits

F-13

NOTE 11—Legal Proceedings (continued)

have been filed in both Federal and state courts and seek such remedies as compensatory damages; restitution; rescission; accounting for wrongfully gotten gains, profits and compensation; injunctive relief; disgorgement; equitable relief; various corrective measures under ERISA; recission of certain Funds’ advisory agreements with AIM; declaration that the advisory agreement is unenforceable or void; refund of advisory fees; interest; and attorneys’ and experts’ fees.

IFG has removed certain of the state court proceedings to Federal District Court. The Judicial Panel on Multidistrict Litigation (the “Panel”) has ruled that all actions alleging market timing throughout the mutual fund industry should be transferred to the United States District Court for the District of Maryland for coordinated pre-trial proceedings. Twelve actions filed against IFG have been conditionally transferred to the Panel in Maryland, and IFG and AIM anticipate that all other market timing actions that may be filed or that are already pending against IFG and/or AIM will be transferred to the Panel as well.

Additional lawsuits or regulatory actions arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the Fund, IFG, AIM, AMVESCAP and related entities and individuals in the future.

As a result of these developments, investors in the AIM and INVESCO Funds might react by redeeming their investments. This might require the Funds to sell investments to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the Funds.

At the present time, management of AIM and the Fund is unable to estimate the impact, if any, that the outcome of the matters described above may have on the Fund or AIM.

F-14

Proxy Results (Unaudited)

A Special Meeting of Shareholders of INVESCO Mid-Cap Growth Fund (“Fund”), a portfolio of AIM Stock Funds (formerly INVESCO Stock Funds, Inc. and AIM Stock Funds, Inc.), (“Company”), a Delaware statutory trust, was held on October 21, 2003. The meeting was adjourned and reconvened on October 28, 2003, on November 4, 2003 and reconvened on November 11, 2003. The meeting was held for the following purposes:

(1)* To elect sixteen individuals to the Board, each of whom will serve until his or her successor is elected and qualified: Bob R. Baker, Frank S. Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J. Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S. Sklar, Larry Soll, Ph D. and Mark H. Williamson.

(2) To approve a new Investment Advisory Agreement with A I M Advisors, Inc.

(3) To approve a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc.

(4)* To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.

The results of the voting on the above matters were as follows:

	Trustees/Matter	Votes For	Withholding Authority
(1)*	Bob R. Baker Frank S. Bayley James T. Bunch Bruce L. Crockett Albert R. Dowden Edward K. Dunn, Jr. Jack M. Fields Carl Frischling Robert H. Graham Gerald J. Lewis Prema Mathai-Davis Lewis F. Pennock Ruth H. Quigley Louis S. Sklar Larry Soll, Ph.D. Mark H. Williamson	362,405,144 362,437,628 362,488,718 362,515,953 362,455,376 362,445,962 362,484,095 362,371,394 362,402,926 362,263,534 362,317,138 362,372,299 362,270,092 362,404,051 362,452,103 362,227,445	19,855,030 19,822,546 19,771,456 19,744,221 19,804,798 19,814,212 19,776,079 19,888,780 19,857,248 19,996,640 19,943,036 19,887,875 19,990,082 19,856,123 19,808,071 20,032,729

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(2)	Approval of a new Investment Advisory Agreement with A I M Advisors, Inc.	855,588	13,597	9,007
(3)	Approval of a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc	855,004	13,537	9,651
(4)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	302,828,268	16,875,556	62,556,350	**

A Special Meeting of Shareholders of the Company noted above was reconvened on October 28, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	326,477,030	18,532,333	62,801,232	**

F-15

Proxy Results (Unaudited) (continued)

A Special Meeting of Shareholders of the Company noted above was reconvened on November 4, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation	345,396,965	18,782,801	62,618,399	**

A Special Meeting of Shareholders of the Company noted above was reconvened on November 11, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	Approval of an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation	354,789,002	19,165,807	57,283,120	**

* Proposal required approval by a combined vote of all the portfolios of AIM Stock Funds.

** Includes Broker Non-Votes

F-16

OTHER INFORMATION

Trustees and Officers

Board of Trustees	Officers	Office of the Fund
Bob R. Baker Frank S. Bayley James T. Bunch Bruce L. Crockett Albert R. Dowden Edward K. Dunn, Jr. Jack M. Fields Carl Frischling Robert H. Graham Gerald J. Lewis Prema Mathai-Davis Lewis F. Pennock Ruth H. Quigley Louis S. Sklar Larry Soll, Ph.D. Mark H. Williamson	Robert H. Graham Chairman and President Raymond R. Cunningham Executive Vice President Mark H. Williamson Executive Vice President Kevin M. Carome Senior Vice President and Chief Legal Officer Sidney M. Dilgren Vice President and Treasurer Robert G. Alley Vice President Stuart W. Coco Vice President Melville B. Cox Vice President Karen Dunn Kelley Vice President Edgar M. Larsen Vice President	11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Investment Advisor A I M Advisors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Sub-Advisor INVESCO Institutional (N.A.), Inc. One Midtown Plaza 1360 Peachtree Street, N.E. Suite 100 Atlanta, GA 30309 Transfer Agent A I M Investment Services, Inc. P.O. Box 4739 Houston, TX 77210-4739 Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110 Counsel to the Fund Ballard Spahr Andrews & Ingersoll, LLP 1735 Market Street Philadelphia, PA 19103-7599 Counsel to the Trustees Kramer, Levin, Naftalis & Frankel LLP 919 Third Avenue New York, NY 10022-3852 Distributor A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173

Domestic Equity

AIM Aggressive Growth Fund

AIM Balanced Fund*

AIM Basic Balanced Fund*

AIM Basic Value Fund

AIM Blue Chip Fund

AIM Capital Development Fund

AIM Charter Fund

AIM Constellation Fund

AIM Dent Demographic Trends Fund

AIM Diversified Dividend Fund¹

AIM Emerging Growth Fund

AIM Large Cap Basic Value Fund

AIM Large Cap Growth Fund

AIM Libra Fund

AIM Mid Cap Basic Value Fund

AIM Mid Cap Core Equity Fund

AIM Mid Cap Growth Fund

AIM Opportunities I Fund

AIM Opportunities II Fund

AIM Opportunities III Fund

AIM Premier Equity Fund

AIM Select Equity Fund

AIM Small Cap Equity Fund²

AIM Small Cap Growth Fund³

AIM Trimark Endeavor Fund

AIM Trimark Small Companies Fund

AIM Weingarten Fund

INVESCO Core Equity Fund

INVESCO Dynamics Fund

INVESCO Mid-Cap Growth Fund

INVESCO Small Company Growth Fund

INVESCO S&P 500 Index Fund

INVESCO Total Return Fund*

* Domestic equity and income fund

International/Global Equity

AIM Asia Pacific Growth Fund

AIM Developing Markets Fund

AIM European Growth Fund

AIM European Small Company Fund

AIM Global Aggressive Growth Fund

AIM Global Growth Fund

AIM Global Trends Fund⁵

AIM Global Value Fund⁶

AIM International Emerging Growth Fund

AIM International Growth Fund

AIM Trimark Fund

INVESCO International Core Equity Fund⁷

Sector Equity

AIM Global Health Care Fund

AIM Real Estate Fund

INVESCO Advantage Health Sciences Fund

INVESCO Energy Fund

INVESCO Financial Services Fund

INVESCO Gold & Precious Metals Fund

INVESCO Health Sciences Fund

INVESCO Leisure Fund

INVESCO Multi-Sector Fund

INVESCO Technology Fund

INVESCO Utilities Fund

Fixed Income

TAXABLE

AIM Floating Rate Fund

AIM High Yield Fund

AIM Income Fund

AIM Intermediate Government Fund

AIM Limited Maturity Treasury Fund

AIM Money Market Fund

AIM Short Term Bond Fund

AIM Total Return Bond Fund

INVESCO U.S. Government Money Fund

TAX-FREE

AIM High Income Municipal Fund

AIM Municipal Bond Fund

AIM Tax-Exempt Cash Fund

AIM Tax-Free Intermediate Fund

Consider the investment objectives, risks, and charges and expenses carefully. For this and other important information about AIM and INVESCO funds, obtain a prospectus from your financial advisor or AIMinvestments.com and read it thoroughly before investing.

¹Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. ²As of the close of business on February 27, 2004, AIM Mid Cap Core Equity Fund is available to new investors on a limited basis. For information on who may continue to invest in AIM Mid Cap Core Equity Fund, please contact your financial advisor. ³AIM Small Cap Equity Fund was closed to most investors on December 19, 2003. For information on who may continue to invest in AIM Small Cap Equity Fund, please contact your financial advisor. ⁴AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. ⁵Effective March 31, 2004, AIM Global Trends Fund was renamed AIM Global Equity Fund. ⁶Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. ⁷Effective November 24, 2003, INVESCO International Blue Chip Value Fund was renamed INVESCO International Core Equity Fund.

If used after April, 2004, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual funds distributed by A I M Distributors, Inc.

A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $149 billion in assets for approximately 11 million shareholders, including individual investors, corporate clients and financial institutions. AIM is a subsidiary of AMVESCAP PLC, one of the world’s largest independent financial services companies with $371 billion in assets under management. Data as of December 31, 2003.

AIMinvestments.co         I-MCG-SAR-1        

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INVESCO S&P 500 Index Fund

Semiannual Report to Shareholders  Ÿ  January 31, 2004

COVER IMAGE

Your goals. Our solutions.^SM

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INVESCO S&P 500 INDEX FUND seeks price performance and income comparable to the Standard & Poor’s 500 Composite Stock Price Index.

n Unless otherwise stated, information presented is as of 1/31/04 and is based on total net assets.

About share classes

n Investor Class shares are closed to most investors. For more information on who may continue to invest in the Investor Class shares, please see the appropriate prospectus.

Principal risk of investing in the fund

n The fund is not actively managed; instead, the fund seeks to track the performance of the S&P 500^® Index. Therefore, when the S&P 500 Index drops, the value of shares of the fund drops accordingly. The fund makes no effort to hedge against price movements in the S&P 500 Index. Because the fund will incur operating expenses and transaction costs, the funds performance will not track the performance of the S&P 500 Index exactly.

About index used in this report

n The unmanaged Standard & Poor’s Composite Index of 500 Stocks (the S&P 500 Index) is an index of common stocks frequently used as a general measure of U.S. stock market performance.

n A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of an index of funds reflects fund expenses; performance of a market index does not.

Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor’s.

“Standard & Poor’s^®,” “S&P^®,” “Standard & Poor’s 500” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by INVESCO Funds Group, Inc. INVESCO S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in INVESCO S&P 500 Index Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, AIMinvestments.com.

This report must be accompanied or preceded by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Read it carefully before you invest.

Not FDIC Insured    May lose value    No bank guarantee

AIMinvestments.com

TO OUR SHAREHOLDERS

GRAHAM

PHOTO

Robert H. Graham

Dear Fellow Shareholder in The AIM Family of Funds^®:

Major stock market indexes here and abroad delivered positive performance during the six months covered by this report. As is historically the case, bond market returns were more modest, but positive as well. The U.S. economy appears to have turned a corner, with solid growth in gross domestic product during the third and fourth quarters of 2003. Overseas, particularly in Europe, economic performance picked up during the second half of 2003.

Investors in the United States seem to have regained their confidence. They added $43.8 billion to U.S. stock mutual funds in January 2004 and $496 million to bond funds. By contrast, money market funds, considered a safe haven because of their emphasis on stability of net asset value, suffered large net outflows during the month. As the reporting period closed, total mutual fund assets stood at a record $7.54 trillion.

The durability of these trends is, of course, unpredictable, and we caution our shareholders against thinking that 2004 will see a rerun of the markets’ good performance during 2003. That said, it is also true that the economy appears to have the wind at its back in terms of fiscal, monetary and tax stimulus, and corporate earnings have been strong.

What should investors do? They should do what we have always urged: Keep their eyes on their long-term goals, keep their portfolios diversified, and work with their financial advisors to tailor their investments to their risk tolerance and investment objectives. We cannot overemphasize the importance of professional guidance when it comes to selecting investments.

For information on your fund’s performance and management during the reporting period, please see the management discussion that begins on the following page.

Visit our Web site

As you are aware, the mutual fund industry and AIM Investments have been the subject of allegations and investigations of late surrounding the issues of market timing and late trading in funds. We understand how unsettling this may be for many of our shareholders. We invite you to visit AIMinvestments.com, our Web site, often. We will continue to post updates on these issues as information becomes available.

The Securities and Exchange Commission, which regulates our industry, has already proposed new rules and regulations, and is planning to propose several more, that address the issues of market timing and late trading, among others. The Investment Company Institute, the industry trade group, and we welcome these efforts. We believe comprehensive rule making is necessary and is the best way to establish new industry responsibilities designed to protect shareholders. We support practical rule changes and structural modifications that are fair, enforceable and, most importantly, beneficial for investors.

Should you visit our Web site, we invite you to explore the other material available there, including general investing information, performance updates on our funds, and market and economic commentary from our financial experts.

As always, AIM is committed to building solutions for your investment goals, and we thank you for your continued participation in AIM Investments. If you have any questions, please contact our Client Service representatives at 800-959-4246.

Sincerely,

GRAHAM SIGNATURE

Robert H. Graham

Chairman and President

March 9, 2004

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

Fund posts double-digit gains for the reporting period

INVESCO S&P 500 Index Fund is designed to track the performance of the S&P 500 Index, an index composed of common stocks of U.S. companies that is weighted to companies with large market capitalizations. The fund seeks to attain its objective by investing in common stocks that compose the index in approximately the same proportions as they are represented in the S&P 500 Index.

For the six-month period ended January 31, 2004, the net asset value of Investor Class shares increased 14.89%. This return tracked that of the S&P 500 Index over the same period, which gained 15.22%. (Of course, past performance cannot guarantee comparable future results.)

See important fund and index disclosures inside front cover.

FUND VS. S&P, RESULTS OF A $10,000 INVESTMENT

12/31/97-l/31/04

MOUNTAIN CHART

Date	INVESCO S&P 500 Index	S&P 500
	Fund-Investor Class	Index
12/31/97	10000	10000
3/31/98	11433	11394
6/30/98	11923	11771
9/30/98	10817	10602
12/31/98	13112	12858
3/31/99	13749	13498
6/30/99	14663	14447
9/30/99	13740	13546
12/31/99	15762	15560
3/31/00	16098	15917
6/30/00	15632	15494
9/30/00	15465	15344
12/31/00	14186	14145
3/31/01	12481	12470
6/30/01	13198	13199
9/30/01	11249	11264
12/31/01	12430	12468
3/31/02	12443	12502
6/30/02	10719	10828
9/30/02	8861	8958
12/31/02	9591	9713
3/31/03	9275	9408
6/30/03	10669	10855
9/30/03	10926	11142
12/31/03	12239	12498
1/04	12458	12728

Source: Lipper, Inc.

Past performance cannot guarantee comparable future results.

Your fund’s total return includes expenses and management fees. The performance of the fund’s share classes will differ due to different class expenses. Performance shown in the chart and the tables opposite do not reflect deduction of taxes a shareholder would pay on fund distributions or sale of fund shares. Performance of the index does not reflect the effects of taxes.

In evaluating this chart, please note that the chart uses a logarithmic scale along the vertical axis (the value scale). This means that each scale increment always represents the same percent change in price; in a linear chart each scale increment always represents the same absolute change in price. In this example, the scale increment between $5,000 and $10,000 is the same as that between $10,000 and $20,000. In a linear chart, the latter scale increment would be twice as large. The benefit of using a logarithmic scale is that it better illustrates performance during the fund’s early years before reinvested distributions and compounding create the potential for the original investment to grow to very large numbers. Had the chart used a linear scale along its vertical axis, you would not be able to see as clearly the movements in the value of the fund and the indexes during the fund’s early years. We use a logarithmic scale in financial reports of funds that have more than five years of performance history.

TOP 10 EQUITY HOLDINGS*
1.  General Electric Co.		2.9	%
2.  Microsoft Corp.		2.5
3.  Pfizer Inc.		2.4
4.  Exxon Mobil Corp.		2.3
5.  Citigroup Inc.		2.2
6.  Wal-Mart Stores, Inc.		2.0
7.  Intel Corp.		1.7
8.  American International Group, Inc.		1.5
9.  Cisco Systems, Inc.		1.5
10.  International Business Machine Corp.		1.5
TOP 10 INDUSTRIES*
1.  Pharmaceuticals		7.4	%
2.  Industrial Conglomerates		3.9
3.  Diversified Banks		3.8
4.  Integrated Oil & Gas		3.7
5.  Systems Software		3.7
6.  Semiconductors		3.2
7.  Computer Hardware		3.1
8.  Communications Equipment		2.9
9.  Integrated Telecommunication Services		2.6
10.  Other Diversified Financial Services		2.3
TOTAL NUMBER OF HOLDINGS*		500
TOTAL NET ASSETS	$	245.1 million

* Excludes Treasury securities and repurchase agreements.

The fund’s holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security.

2

LONG-TERM PERFORMANCE

Your fund’s long-term performance

Below you will find a presentation of your fund’s long-term performance record for periods ended 1/31/04, the close of the six-month period covered by this report. As required by industry regulations, we also present long-term performance for periods ended 12/31/03, the most recent calendar quarter-end.

Please read the important disclosure accompanying these tables, which explains how fund performance is calculated and the sales charges, if any, that apply to the share class in which you are invested.

AVERAGE ANNUAL TOTAL RETURNS
As of 1/31/04
Investor Class Shares
Inception (12/22/97)	4.22	%
5 Years	-1.84
1 Year	33.57
AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/03
Investor Class Shares
Inception ( 12/22/97)	3.97	%
5 Years	-1.37
1 Year	27.62

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit AIMinvestments.com for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Investor Class shares have no sales charge; therefore, performance quoted is at net asset value.

A redemption fee of 2% will be imposed on certain redemptions or exchanges out of the fund within 30 days of purchase. Exceptions to the redemption fee are listed in the fund’s prospectus.

Had the advisor not waived fees and/or reimbursed expenses, returns would have been lower.

ARROW	For More Information Visit AIMinvestments.com
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3

SUPPLEMENT TO SEMIANNUAL REPORT DATED 1/31/04

INVESCO S&P 500 Index Fund

INSTITUTIONAL CLASS SHARES

The following information has been prepared to provide Institutional Class shareholders with a performance overview specific to their holdings. Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Performance of Institutional Class shares will differ from performance of Investor Class shares due to differing sales charges and class expenses.

AVERAGE ANNUAL TOTAL RETURNS

For periods ended 1/31/04

Inception (12/22/97)	4.13	%
5 Years	-1.78
1 Year	33.79
6 Months*	14.99

AVERAGE ANNUAL TOTAL RETURNS

For periods ended 12/31/03, most recent calendar quarter-end

Inception (12/22/97)	3.89	%
5 Years	-1.29
1 Year	27.82
6 Months*	14.98

* Cumulative return that has not been annualized.

Had the advisor not waived fees and/or reimbursed expenses, returns would have been lower.

Please note that past performance is not indicative of future results. More recent returns may be more or less than those shown. All returns assume reinvestment of distributions at net asset value. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. See full report for information on comparative benchmarks. If you have questions, please consult your fund prospectus or call 800-525-8085, where you can also obtain more current month-end performance. A I M Distributors, Inc.

FOR INSTITUTIONAL INVESTOR USE ONLY

This material is prepared for institutional investor use only and may not be quoted, reproduced or shown to members of the public, nor used in written form as sales literature for public use.

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AIMinvestments.com    I-SPI-INS-2

FINANCIALS

Schedule of Investments

January 31, 2004

(Unaudited)

	Shares	Market Value
Common Stocks & Other Equity Interests–88.86%
Advertising–0.19%
Interpublic Group of Cos., Inc. (The)(a)	8,602	$	142,277
Omnicom Group Inc.	3,943		324,903
			467,180
Aerospace & Defense–1.62%
Boeing Co. (The)	17,510		731,042
General Dynamics Corp.	4,101		374,954
Goodrich Corp.	2,410		74,348
Honeywell International Inc.	17,936		647,848
Lockheed Martin Corp.	9,356		454,889
Northrop Grumman Corp.	3,805		367,982
Raytheon Co.	8,647		263,820
Rockwell Collins, Inc.	3,637		118,894
United Technologies Corp.	9,795		935,814
			3,969,591
Agricultural Products–0.09%
Archer-Daniels-Midland Co.	13,506		211,504
Air Freight & Logistics–0.87%
FedEx Corp.	6,208		417,674
Ryder System, Inc.	1,300		47,840
United Parcel Service, Inc.-Class B	23,400		1,667,718
			2,133,232
Airlines–0.11%
Delta Air Lines, Inc.	2,598		27,279
Southwest Airlines Co.	16,385		244,956
			272,235
Aluminum–0.25%
Alcoa Inc.	18,012		615,650
Apparel Retail–0.32%
Gap, Inc. (The)	18,694		347,335
Limited Brands	10,755		195,741
TJX Cos., Inc. (The)	10,476		240,843
			783,919
Apparel, Accessories & Luxury Goods–0.11%
Jones Apparel Group, Inc.	2,600		88,582
Liz Claiborne, Inc.	2,300		82,271
V. F. Corp.	2,217		94,222
			265,075

	Shares	Market Value
Application Software–0.33%
Autodesk, Inc.	2,300	$	58,765
Citrix Systems, Inc.(a)	3,400		68,374
Compuware Corp.(a)	8,000		64,240
Intuit Inc.(a)	4,131		208,285
Mercury Interactive Corp.(a)	1,900		89,186
Parametric Technology Corp.(a)	5,536		23,196
PeopleSoft, Inc.(a)	7,804		168,176
Siebel Systems, Inc.(a)	10,300		137,299
			817,521
Asset Management & Custody Banks–0.81%
Bank of New York Co., Inc. (The)	16,102		511,238
Federated Investors, Inc.-Class B	2,300		71,047
Franklin Resources, Inc.	5,200		300,404
Janus Capital Group Inc.	5,000		83,900
Mellon Financial Corp.	8,984		293,867
Northern Trust Corp.	4,600		218,500
State Street Corp.	6,956		374,581
T. Rowe Price Group Inc.	2,600		135,538
			1,989,075
Auto Parts & Equipment–0.18%
Dana Corp.	3,107		64,626
Delphi Corp.	11,630		123,045
Johnson Controls, Inc.	3,758		221,158
Visteon Corp.	2,742		29,339
			438,168
Automobile Manufacturers–0.46%
Ford Motor Co.	38,117		554,221
General Motors Corp.	11,664		579,468
			1,133,689
Biotechnology–1.06%
Amgen Inc.(a)	26,846		1,731,299
Biogen Idec Inc.(a)	6,808		291,314
Chiron Corp.(a)	3,900		201,630
Genzyme Corp.(a)	4,665		255,875
MedImmune, Inc.(a)	5,200		122,200
			2,602,318
Brewers–0.37%
Anheuser-Busch Cos., Inc.	16,959		860,160
Coors (Adolph) Co.-Class B	756		42,744
			902,904

F-1

	Shares	Market Value
Broadcasting & Cable TV–0.98%
Clear Channel Communications, Inc.	12,803	$	576,007
Comcast Corp.-Class A(a)	46,842		1,598,249
Univision Communications Inc.-Class A(a)	6,696		236,838
			2,411,094
Building Products–0.17%
American Standard Cos. Inc.(a)	1,500		159,300
Masco Corp.	9,640		257,002
			416,302
Casinos & Gaming–0.16%
Harrah’s Entertainment, Inc.	2,314		122,642
International Game Technology	7,200		269,712
			392,354
Commercial Printing–0.03%
Donnelley (R.R.) & Sons Co.	2,320		72,500
Communications Equipment–2.88%
ADC Telecommunications, Inc.(a)	16,800		58,800
Andrew Corp.(a)	3,213		55,071
Avaya Inc.(a)	8,678		150,824
CIENA Corp.(a)	9,900		71,775
Cisco Systems, Inc.(a)	143,697		3,684,391
Comverse Technology, Inc.(a)	4,013		70,629
Corning Inc.(a)	27,688		357,729
JDS Uniphase Corp.(a)	29,868		152,327
Lucent Technologies Inc.(a)	87,291		391,064
Motorola, Inc.	48,503		804,180
QLogic Corp.(a)	1,960		88,122
QUALCOMM Inc.	16,654		972,927
Scientific-Atlanta, Inc.	3,122		105,648
Tellabs, Inc.(a)	8,684		85,972
			7,049,459
Computer & Electronics Retail–0.20%
Best Buy Co., Inc.	6,736		339,427
Circuit City Stores, Inc.	4,328		46,310
RadioShack Corp.	3,428		111,684
			497,421
Computer Hardware–3.06%
Apple Computer, Inc.(a)	7,536		170,012
Dell Inc.(a)	53,297		1,783,851
Gateway, Inc.(a)	6,800		32,096
Hewlett-Packard Co.	63,514		1,510,998
International Business Machines Corp.	35,811		3,553,526
NCR Corp.(a)	2,000		83,100
Sun Microsystems, Inc.(a)	67,999		361,075
			7,494,658

	Shares	Market Value
Computer Storage & Peripherals–0.44%
EMC Corp.(a)	50,024	$	702,337
Lexmark International, Inc.(a)	2,663		220,736
Network Appliance, Inc.(a)	7,200		160,992
			1,084,065
Construction & Engineering–0.03%
Fluor Corp.	1,712		63,447
Construction & Farm Machinery & Heavy Trucks–0.48%
Caterpillar Inc.	7,228		564,724
Cummins Inc.	863		43,780
Deere & Co.	4,995		312,687
Navistar International Corp.(a)	1,400		66,570
PACCAR Inc.	2,424		190,599
			1,178,360
Construction Materials–0.04%
Vulcan Materials Co.	2,100		100,170
Consumer Finance–1.18%
American Express Co.	26,768		1,387,653
Capital One Financial Corp.	4,826		343,032
MBNA Corp.	26,614		717,513
Providian Financial Corp.(a)	6,038		82,660
SLM Corp.	9,400		360,960
			2,891,818
Data Processing & Outsourced Services–0.99%
Automatic Data Processing, Inc.	12,338		527,449
Computer Sciences Corp.(a)	3,902		174,224
Concord EFS, Inc.(a)	9,681		136,696
Convergys Corp.(a)	2,969		49,642
Electronic Data Systems Corp.	10,000		239,600
First Data Corp.	15,170		594,057
Fiserv, Inc.(a)	4,050		151,308
Paychex, Inc.	7,848		294,143
Sabre Holdings Corp.	2,937		62,000
SunGard Data Systems Inc.(a)	6,000		186,780
			2,415,899
Department Stores–0.49%
Dillards, Inc.-Class A	1,715		29,086
Federated Department Stores, Inc.	3,738		177,480
J.C. Penney Co., Inc.	5,664		148,284
Kohl’s Corp.(a)	7,060		312,758
May Department Stores Co. (The)	6,028		198,321
Nordstrom, Inc.	2,900		113,970
Sears, Roebuck & Co.	5,254		232,489
			1,212,388

F-2

	Shares	Market Value
Distillers & Vintners–0.05%
Brown-Forman Corp.-Class B	2,522	$	117,803
Distributors–0.05%
Genuine Parts Co.	3,625		119,480
Diversified Banks–3.80%
Bank of America Corp.	30,928		2,519,395
Bank One Corp.	23,270		1,177,695
Comerica Inc.	3,645		208,166
FleetBoston Financial Corp.	21,951		978,576
U.S. Bancorp	40,165		1,135,465
Wachovia Corp.	27,554		1,274,097
Wells Fargo & Co.	35,220		2,021,980
			9,315,374
Diversified Capital Markets–0.67%
J.P. Morgan Chase & Co.	42,503		1,652,942
Diversified Chemicals–0.85%
Dow Chemical Co. (The)	19,161		803,804
E. I. du Pont de Nemours & Co.	20,722		909,696
Eastman Chemical Co.	1,611		64,263
Engelhard Corp.	2,620		74,329
Hercules Inc.(a)	2,313		28,219
PPG Industries, Inc.	3,517		204,795
			2,085,106
Diversified Commercial Services–0.51%
Apollo Group, Inc.-Class A(a)	3,655		271,420
Cendant Corp.(a)	21,079		477,439
Cintas Corp.	3,545		160,057
Deluxe Corp.	1,011		40,834
Equifax Inc.	2,921		75,975
H&R Block, Inc.	3,730		216,079
			1,241,804
Diversified Metals & Mining–0.12%
Freeport-McMoRan Copper & Gold, Inc.-Class B	4,087		150,647
Phelps Dodge Corp.(a)	1,851		140,065
			290,712
Drug Retail–0.42%
CVS Corp.	8,226		293,833
Walgreen Co.	21,346		737,504
			1,031,337
Electric Utilities–1.79%
Allegheny Energy, Inc.(a)	2,600		32,812
Ameren Corp.	3,365		162,496
American Electric Power Co., Inc.	8,203		267,828
CenterPoint Energy, Inc.	6,340		66,570

	Shares	Market Value
Electric Utilities–(Continued)
Cinergy Corp.	3,722	$	143,930
CMS Energy Corp.(a)	3,355		29,457
Consolidated Edison, Inc.	4,654		203,985
Dominion Resources, Inc.	6,752		433,208
DTE Energy Co.	3,520		137,632
Edison International	6,753		148,566
Entergy Corp.	4,734		276,844
Exelon Corp.	6,807		455,933
FirstEnergy Corp.	6,889		258,475
FPL Group, Inc.	3,819		251,099
PG&E Corp.(a)	8,661		232,548
Pinnacle West Capital Corp.	1,900		74,575
PPL Corp.	3,675		168,021
Progress Energy, Inc.	5,101		228,423
Southern Co. (The)	15,252		454,510
TECO Energy, Inc.	3,931		56,095
TXU Corp.	6,762		162,288
Xcel Energy, Inc.	8,340		144,449
			4,389,744
Electrical Components & Equipment–0.38%
American Power Conversion Corp.	4,100		101,639
Cooper Industries, Ltd.-Class A (Bermuda)	1,917		107,927
Emerson Electric Co.	8,757		559,572
Power-One, Inc.(a)	1,700		21,284
Rockwell Automation, Inc.	3,837		124,971
Thomas & Betts Corp.(a)	1,200		24,876
			940,269
Electronic Equipment Manufacturers–0.30%
Agilent Technologies, Inc.(a)	9,898		364,840
PerkinElmer, Inc.	2,600		53,690
Symbol Technologies, Inc.	4,750		82,175
Tektronix, Inc.	1,800		55,926
Thermo Electron Corp.(a)	3,421		95,343
Waters Corp.(a)	2,500		94,775
			746,749
Electronic Manufacturing Services–0.22%
Jabil Circuit, Inc.(a)	4,200		124,320
Molex Inc.	3,975		138,091
Sanmina-SCI Corp.(a)	10,768		141,168
Solectron Corp.(a)	17,401		123,547
			527,126
Employment Services–0.06%
Monster Worldwide Inc.(a)	2,300		56,304
Robert Half International Inc.(a)	3,600		84,564
			140,868

F-3

	Shares	Market Value
Environmental Services–0.17%
Allied Waste Industries, Inc.(a)	6,665	$	90,977
Waste Management, Inc.	12,124		336,562
			427,539
Fertilizers & Agricultural Chemicals–0.07%
Monsanto Co.	5,470		167,327
Food Distributors–0.21%
Sysco Corp.	13,448		510,083
Food Retail–0.32%
Albertson’s, Inc.	7,666		179,078
Kroger Co. (The)(a)	15,509		287,382
Safeway Inc.(a)	9,200		207,828
SUPERVALU INC.	2,800		80,920
Winn-Dixie Stores, Inc.	2,921		19,162
			774,370
Footwear–0.17%
NIKE, Inc.-Class B	5,462		380,483
Reebok International Ltd.	1,200		46,536
			427,019
Forest Products–0.13%
Louisiana-Pacific Corp.(a)	2,215		47,113
Weyerhaeuser Co.	4,558		280,135
			327,248
Gas Utilities–0.24%
KeySpan Corp.	3,300		120,351
Kinder Morgan, Inc.	2,564		151,276
Nicor Inc.	900		29,835
NiSource Inc.	5,501		115,521
Peoples Energy Corp.	800		33,968
Sempra Energy	4,728		147,230
			598,181
General Merchandise Stores–0.42%
Big Lots, Inc.(a)	2,429		34,322
Dollar General Corp.	7,015		155,873
Family Dollar Stores, Inc.	3,600		124,704
Target Corp.	18,972		720,177
			1,035,076
Gold–0.15%
Newmont Mining Corp.	8,986		374,357
Health Care Distributors–0.36%
AmerisourceBergen Corp.	2,329		128,211
Cardinal Health, Inc.	9,011		577,695
McKesson Corp.	6,041		177,485
			883,391

	Shares	Market Value
��
Health Care Equipment–1.79%
Applera Corp.-Applied Biosystems Group	4,300	$	101,652
Bard (C.R.), Inc.	1,077		101,453
Baxter International Inc.	12,664		369,156
Becton, Dickinson & Co.	5,281		237,962
Biomet, Inc.	5,361		207,256
Boston Scientific Corp.(a)	17,012		693,919
Guidant Corp.	6,494		414,837
Medtronic, Inc.	25,205		1,240,590
St. Jude Medical, Inc.(a)	3,572		256,648
Stryker Corp.	4,141		367,472
Zimmer Holdings, Inc.(a)	5,033		385,024
			4,375,969
Health Care Facilities–0.31%
HCA Inc.	10,289		461,976
Health Management Associates, Inc.-Class A	5,000		122,550
Manor Care, Inc.	1,900		67,830
Tenet Healthcare Corp.(a)	9,647		119,623
			771,979
Health Care Services–0.26%
Express Scripts, Inc.(a)	1,635		113,093
IMS Health Inc.	5,012		128,959
Medco Health Solutions, Inc.(a)	5,628		207,392
Quest Diagnostics Inc.	2,163		183,855
			633,299
Health Care Supplies–0.05%
Bausch & Lomb Inc.	1,100		59,125
Millipore Corp.(a)	1,000		51,950
			111,075
Home Entertainment Software–0.12%
Electronic Arts Inc.(a)	6,222		291,563
Home Furnishings–0.04%
Leggett & Platt, Inc.	4,000		98,560
Home Improvement Retail–1.09%
Home Depot, Inc. (The)	47,360		1,679,859
Lowe’s Cos., Inc.	16,396		878,006
Sherwin-Williams Co. (The)	3,024		102,030
			2,659,895
Homebuilding–0.13%
Centex Corp.	1,300		137,670
KB HOME	964		65,109
Pulte Homes, Inc.	2,556		110,266
			313,045

F-4

	Shares	Market Value
Hotels, Resorts & Cruise Lines–0.44%
Carnival Corp. (Panama)	13,100	$	581,902
Hilton Hotels Corp.	7,935		126,960
Marriott International, Inc.-Class A	4,813		213,649
Starwood Hotels & Resorts Worldwide, Inc.	4,200		148,428
			1,070,939
Household Appliances–0.14%
Black & Decker Corp. (The)	1,613		82,666
Maytag Corp.	1,613		46,196
Snap-on Inc.	1,200		37,380
Stanley Works (The)	1,687		63,904
Whirlpool Corp.	1,431		108,684
			338,830
Household Products–1.69%
Clorox Co. (The)	4,392		214,681
Colgate-Palmolive Co.	11,188		573,609
Kimberly-Clark Corp.	10,500		620,130
Procter & Gamble Co. (The)	26,982		2,727,341
			4,135,761
Housewares & Specialties–0.16%
American Greetings Corp.-Class A(a)	1,410		29,582
Fortune Brands, Inc.	3,024		212,134
Newell Rubbermaid Inc.	5,753		140,546
Tupperware Corp.	1,200		21,180
			403,442
Hypermarkets & Super Centers–2.12%
Costco Wholesale Corp.(a)	9,528		353,298
Wal-Mart Stores, Inc.	90,085		4,851,077
			5,204,375
Industrial Conglomerates–3.91%
General Electric Co.	209,007		7,028,905
Textron Inc.	2,808		149,610
3M Co.	16,337		1,292,093
Tyco International Ltd. (Bermuda)	41,623		1,113,415
			9,584,023
Industrial Gases–0.19%
Air Products & Chemicals, Inc.	4,744		236,773
Praxair, Inc.	6,778		240,009
			476,782
Industrial Machinery–0.73%
Crane Co.	1,250		37,550
Danaher Corp.	3,200		292,960
Dover Corp.	4,246		175,445
Eaton Corp.	1,581		183,633
Illinois Tool Works Inc.	6,413		500,855

	Shares	Market Value
Industrial Machinery–(Continued)
Ingersoll-Rand Co.-Class A (Bermuda)	3,611	$	240,240
ITT Industries, Inc.	1,917		142,893
Pall Corp.	2,618		68,068
Parker Hannifin Corp.	2,457		135,110
			1,776,754
Insurance Brokers–0.28%
Aon Corp.	6,515		160,074
Marsh & McLennan Cos., Inc.	11,037		517,966
			678,040
Integrated Oil & Gas–3.73%
Amerada Hess Corp.	1,870		105,449
ChevronTexaco Corp.	22,251		1,921,374
ConocoPhillips	14,170		933,520
Exxon Mobil Corp.	137,587		5,612,174
Marathon Oil Corp.	6,489		210,763
Occidental Petroleum Corp.	8,016		353,105
			9,136,385
Integrated Telecommunication Services–2.55%
ALLTEL Corp.	6,470		314,960
AT&T Corp.	16,419		319,514
BellSouth Corp.	38,502		1,125,413
CenturyTel, Inc.	3,000		79,200
Citizens Communications Co.(a)	5,900		69,207
Qwest Communications International Inc.(a)	36,808		148,704
SBC Communications Inc.	68,913		1,757,281
Sprint Corp.	18,784		327,029
Verizon Communications Inc.	57,483		2,118,823
			6,260,131
Internet Retail–0.37%
eBay Inc.(a)	13,454		901,822
Internet Software & Services–0.26%
Yahoo! Inc.(a)	13,682		641,002
Investment Banking & Brokerage–1.81%
Bear Stearns Cos. Inc. (The)	2,040		167,994
Charles Schwab Corp. (The)	28,283		356,083
Goldman Sachs Group, Inc. (The)	9,859		981,463
Lehman Brothers Holdings Inc.	5,652		464,029
Merrill Lynch & Co., Inc.	19,677		1,156,811
Morgan Stanley	22,522		1,311,006
			4,437,386
IT Consulting & Other Services–0.04%
Unisys Corp.(a)	6,925		95,842

F-5

	Shares	Market Value
Leisure Products–0.13%
Brunswick Corp.	1,914	$	66,703
Hasbro, Inc.	3,677		72,621
Mattel, Inc.	8,948		169,207
			308,531
Life & Health Insurance–0.89%
AFLAC Inc.	10,700		394,616
Jefferson-Pilot Corp.	2,922		150,015
John Hancock Financial Services, Inc.	6,000		248,880
Lincoln National Corp.	3,734		164,856
MetLife, Inc.	15,800		530,090
Prudential Financial, Inc.	11,250		489,375
Torchmark Corp.	2,375		112,670
UnumProvident Corp.	6,155		96,203
			2,186,705
Managed Health Care–0.73%
Aetna Inc.	3,198		223,860
Anthem, Inc.(a)	2,900		237,162
CIGNA Corp.	2,947		182,773
Humana Inc.(a)	3,323		77,526
UnitedHealth Group Inc.	12,211		743,406
WellPoint Health Networks Inc.(a)	3,162		332,010
			1,796,737
Metal & Glass Containers–0.06%
Ball Corp.	1,200		75,084
Pactiv Corp.(a)	3,224		69,929
			145,013
Motorcycle Manufacturers–0.13%
Harley-Davidson, Inc.	6,300		321,552
Movies & Entertainment–1.69%
Time Warner Inc.(a)	94,123		1,653,741
Viacom Inc.-Class B	36,406		1,467,162
Walt Disney Co. (The)	42,529		1,020,696
			4,141,599
Multi-Line Insurance–1.78%
American International Group, Inc.	54,261		3,768,426
Hartford Financial Services Group, Inc. (The)	5,888		378,834
Loews Corp.	3,852		206,698
			4,353,958
Multi-Utilities & Unregulated Power–0.49%
AES Corp. (The)(a)	13,000		126,880
Calpine Corp.(a)	8,628		50,215
Constellation Energy Group, Inc.	3,471		139,638
Duke Energy Corp.	18,890		410,480

	Shares	Market Value
Multi-Utilities & Unregulated Power–(Continued)
Dynegy Inc.-Class A(a)	7,850	$	35,089
El Paso Corp.	12,660		107,610
Public Service Enterprise Group Inc.	4,895		222,429
Williams Cos., Inc. (The)	10,763		109,137
			1,201,478
Office Electronics–0.10%
Xerox Corp.(a)	16,528		241,970
Office Services & Supplies–0.14%
Avery Dennison Corp.	2,314		143,838
Pitney Bowes Inc.	4,890		198,436
			342,274
Oil & Gas Drilling–0.19%
Nabors Industries, Ltd. (Bermuda)(a)	3,046		134,024
Noble Corp. (Cayman Islands)(a)	2,800		103,880
Rowan Cos., Inc.(a)	2,115		48,391
Transocean Inc. (Cayman Islands)(a)	6,640		178,882
			465,177
Oil & Gas Equipment & Services–0.57%
Baker Hughes Inc.	6,994		245,350
BJ Services Co.(a)	3,300		129,162
Halliburton Co.	9,096		274,244
Schlumberger Ltd. (Netherlands)	12,186		745,539
			1,394,295
Oil & Gas Exploration & Production–0.58%
Anadarko Petroleum Corp.	5,222		260,578
Apache Corp.	6,730		258,970
Burlington Resources Inc.	4,134		226,295
Devon Energy Corp.	4,818		272,024
EOG Resources, Inc.	2,400		108,720
Kerr-McGee Corp.	2,116		103,092
Unocal Corp.	5,390		198,460
			1,428,139
Oil & Gas Refining, Marketing & Transportation–0.06%
Ashland Inc.	1,400		64,834
Sunoco, Inc.	1,600		88,720
			153,554
Other Diversified Financial Services–2.26%
Citigroup Inc.	107,381		5,313,212
Principal Financial Group, Inc.	6,700		232,490
			5,545,702

F-6

	Shares	Market Value
Packaged Foods & Meats–0.96%
Campbell Soup Co.	8,500	$	223,805
ConAgra Foods, Inc.	11,166		289,646
General Mills, Inc.	7,750		352,082
H.J. Heinz Co.	7,341		259,725
Hershey Foods Corp.	2,716		205,085
Kellogg Co.	8,470		320,251
McCormick & Co., Inc.	2,900		86,072
Sara Lee Corp.	16,450		350,714
Wrigley Jr. (Wm.) Co.	4,681		263,400
			2,350,780
Paper Packaging–0.08%
Bemis Co., Inc.	1,100		53,317
Sealed Air Corp.(a)	1,765		87,879
Temple-Inland Inc.	1,130		66,726
			207,922
Paper Products–0.28%
Georgia-Pacific Corp.	5,332		149,829
International Paper Co.	9,992		422,362
MeadWestvaco Corp.	4,189		112,977
			685,168
Personal Products–0.47%
Alberto-Culver Co.	1,200		75,216
Avon Products, Inc.	4,912		311,028
Gillette Co. (The)	21,059		763,389
			1,149,633
Pharmaceuticals–7.39%
Abbott Laboratories	32,542		1,401,909
Allergan, Inc.	2,700		223,695
Bristol-Myers Squibb Co.	40,406		1,133,388
Forest Laboratories, Inc.(a)	7,600		566,124
Johnson & Johnson	61,802		3,301,463
King Pharmaceuticals, Inc.(a)	5,066		84,501
Lilly (Eli) & Co.	23,374		1,590,367
Merck & Co. Inc.	46,314		2,204,546
Pfizer Inc.	158,855		5,818,859
Schering-Plough Corp.	30,562		536,057
Watson Pharmaceuticals, Inc.(a)	2,240		104,182
Wyeth	27,688		1,133,824
			18,098,915
Photographic Products–0.07%
Eastman Kodak Co.	6,013		170,829
Property & Casualty Insurance–1.22%
ACE Ltd. (Cayman Islands)	5,787		251,272
Allstate Corp. (The)	14,664		666,625

	Shares	Market Value
Property & Casualty Insurance–(Continued)
Ambac Financial Group, Inc.	2,200	$	164,494
Chubb Corp. (The)	3,898		278,668
Cincinnati Financial Corp.	3,345		144,905
MBIA Inc.	3,018		190,134
Progressive Corp. (The)	4,496		371,594
SAFECO Corp.	2,920		127,108
St. Paul Cos., Inc. (The)	4,737		199,570
Travelers Property Casualty Corp.-Class B	20,878		377,892
XL Capital Ltd.-Class A (Cayman Islands)	2,850		226,575
			2,998,837
Publishing–0.63%
Dow Jones & Co., Inc.	1,713		84,759
Gannett Co., Inc.	5,642		483,576
Knight-Ridder, Inc.	1,672		128,610
McGraw-Hill Cos., Inc. (The)	3,976		298,280
Meredith Corp.	1,034		52,124
New York Times Co. (The)-Class A	3,126		151,924
Tribune Co.	6,534		334,475
			1,533,748
Railroads–0.37%
Burlington Northern Santa Fe Corp.	7,709		247,690
CSX Corp.	4,443		140,221
Norfolk Southern Corp.	8,153		181,812
Union Pacific Corp.	5,295		340,998
			910,721
Real Estate–0.38%
Apartment Investment & Management Co.-Class A	1,956		68,812
Equity Office Properties Trust	8,297		246,006
Equity Residential	5,700		165,870
Plum Creek Timber Co., Inc.	3,800		114,760
ProLogis	3,700		120,768
Simon Property Group, Inc.	4,000		208,200
			924,416
Regional Banks–1.73%
AmSouth Bancorp.	7,350		181,545
BB&T Corp.	11,377		422,087
Charter One Financial, Inc.	4,663		168,847
Fifth Third Bancorp	11,850		684,811
First Tennessee National Corp.	2,600		115,492
Huntington Bancshares Inc.	4,741		105,867
KeyCorp	8,688		270,110
Marshall & Ilsley Corp.	4,700		180,151
National City Corp.	12,654		436,816
North Fork Bancorp., Inc.	3,164		133,363

F-7

	Shares	Market Value
Regional Banks–(Continued)
PNC Financial Services Group	5,800	$	327,758
Regions Financial Corporation	4,600		172,500
SouthTrust Corp.	6,900		234,531
SunTrust Banks, Inc.	5,838		422,438
Synovus Financial Corp.	6,286		157,779
Union Planters Corp.	3,925		118,810
Zions Bancorp.	1,866		109,422
			4,242,327
Restaurants–0.55%
Darden Restaurants, Inc.	3,481		69,620
McDonald’s Corp.	26,404		679,639
Starbucks Corp.(a)	8,100		297,756
Wendy’s International, Inc.	2,371		94,200
Yum! Brands, Inc.(a)	6,142		208,275
			1,349,490
Semiconductor Equipment–0.49%
Applied Materials, Inc.(a)	34,619		753,309
KLA-Tencor Corp.(a)	4,058		231,590
Novellus Systems, Inc.(a)	3,148		107,221
Teradyne, Inc.(a)	4,024		108,246
			1,200,366
Semiconductors–3.16%
Advanced Micro Devices, Inc.(a)	7,240		107,586
Altera Corp.(a)	7,883		176,500
Analog Devices, Inc.	7,645		365,813
Applied Micro Circuits Corp.(a)	6,400		46,528
Broadcom Corp.-Class A(a)	6,303		255,839
Intel Corp.	135,968		4,160,621
Linear Technology Corp.	6,500		260,000
LSI Logic Corp.(a)	7,940		81,703
Maxim Integrated Products, Inc.	6,840		349,866
Micron Technology, Inc.(a)	12,760		205,564
National Semiconductor Corp.(a)	3,823		146,994
NVIDIA Corp.(a)	3,400		75,650
PMC-Sierra, Inc.(a)	3,600		78,876
Texas Instruments Inc.	36,024		1,129,352
Xilinx, Inc.(a)	7,100		297,561
			7,738,453
Soft Drinks–1.86%
Coca-Cola Co. (The)	51,018		2,512,126
Coca-Cola Enterprises Inc.	9,500		217,550
Pepsi Bottling Group, Inc. (The)	5,469		144,983
PepsiCo, Inc.	35,735		1,688,836
			4,563,495

	Shares	Market Value
Specialized Finance–0.08%
Moody’s Corp.	3,124	$	199,592
Specialty Chemicals–0.21%
Ecolab Inc.	5,400		146,718
Great Lakes Chemical Corp.	1,100		28,160
International Flavors & Fragrances Inc.	1,915		70,204
Rohm & Haas Co.	4,624		181,584
Sigma-Aldrich Corp.	1,472		86,244
			512,910
Specialty Stores–0.46%
AutoNation, Inc.(a)	5,720		93,694
AutoZone, Inc.(a)	1,861		156,920
Bed Bath & Beyond Inc.(a)	6,148		249,670
Boise Cascade Corp.	1,750		56,788
Office Depot, Inc.(a)	6,518		103,962
Staples, Inc.(a)	10,306		274,243
Tiffany & Co.	3,052		120,981
Toys “R” Us, Inc.(a)	4,410		62,269
			1,118,527
Steel–0.08%
Allegheny Technologies, Inc.	1,662		15,623
Nucor Corp.	1,612		90,772
United States Steel Corp.	2,112		71,914
Worthington Industries, Inc.	1,814		29,623
			207,932
Systems Software–3.66%
Adobe Systems Inc.	4,840		186,146
BMC Software, Inc.(a)	4,735		94,227
Computer Associates International, Inc.	12,076		315,667
Microsoft Corp.	225,068		6,223,130
Novell, Inc.(a)	7,749		98,412
Oracle Corp.(a)	108,755		1,501,907
Symantec Corp.(a)	6,412		248,786
VERITAS Software Corp.(a)	8,854		290,942
			8,959,217
Thrifts & Mortgage Finance–1.67%
Countrywide Financial Corp.	3,832		320,164
Fannie Mae	20,225		1,559,348
Freddie Mac	14,469		903,155
Golden West Financial Corp.	3,168		328,617
MGIC Investment Corp.	2,075		143,051
Washington Mutual, Inc.	18,720		829,296
			4,083,631

F-8

	Shares	Market Value
Tires & Rubber–0.03%
Cooper Tire & Rubber Co.	1,511	$	30,628
Goodyear Tire & Rubber Co. (The)(a)	3,603		34,229
			64,857
Tobacco–1.05%
Altria Group, Inc.	42,292		2,351,012
R.J. Reynolds Tobacco Holdings, Inc.	1,753		103,532
UST, Inc.	3,426		122,342
			2,576,886
Trading Companies & Distributors–0.04%
W.W. Grainger, Inc.	1,926		92,718
Wireless Telecommunication Services–0.57%
AT&T Wireless Services Inc.(a)	56,503		624,358
Nextel Communications, Inc.-Class A(a)	22,868		603,487
Sprint Corp. (PCS Group)(a)	21,515		174,917
			1,402,762
Total Common Stocks & Other Equity Interests (Cost $202,741,017)			217,773,616

	Principal Amount			Market Value
U.S. Treasury Bills–0.78%(b)
0.79%, 03/18/04	$	100,000	(c)	$	99,886
0.83%, 03/18/04		100,000	(c)		99,886
0.88%, 03/18/04		1,700,000	(c)		1,698,063
					1,897,835
Total U.S. Treasury Bills (Cost $1,897,881)					1,897,835
Repurchase Agreements–9.76%
State Street Bank & Trust Co., 0.91%, 02/02/04 (Cost $23,914,995)(d)		23,914,995			23,914,995
TOTAL INVESTMENTS–99.40% (Cost $228,553,893)					243,586,446
OTHER ASSETS LESS LIABILITIES–0.60%					1,479,519
NET ASSETS–100.00%				$	245,065,965

Notes to Schedule of Investments:

(a) Non-income producing security.

(b) Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

(c) A portion of the principal balance was pledged as collateral to cover margin requirements for open futures contracts. See Note 1 section G and Note 6.

(d) Repurchase agreement entered into 01/30/04 with a maturing value of $23,916,809. Collateralized by $24,390,000 U.S. Government obligations, 1.50% due 06/17/05 with a market value at 01/31/04 of $24,394,610.

See accompanying notes which are an integral part of the financial statements.

F-9

Statement of Assets and Liabilities

January 31, 2004

(Unaudited)

Assets:
Investments, excluding repurchase agreements, at market value (cost $204,638,898)	$	219,671,451
Repurchase agreements (cost $23,914,995)		23,914,995
Total investments (cost $228,553,893)		243,586,446
Receivables for:
Fund shares sold		1,549,273
Dividends and interest		245,190
Investment for deferred compensation and retirement plans		13,406
Other assets		43,928
Total assets		245,438,243
Liabilities:
Payables for:
Fund shares reacquired		191,926
Deferred compensation and retirement plans		15,154
Variation margin		6,900
Accrued distribution fees-Investor Class		49,483
Accrued trustees’ fees		871
Accrued transfer agent fees		88,951
Accrued operating expenses		18,993
Total liabilities		372,278
Net assets applicable to shares outstanding	$	245,065,965
Net assets consist of:
Shares of beneficial interest	$	244,821,866
Undistributed net investment income		(26,210	)
Undistributed net realized gain (loss) from investment securities and futures contracts		(15,800,471	)
Unrealized appreciation of investment securities and futures contracts		16,070,780
	$	245,065,965

Net Assets:
Investor Class	$	240,506,313
Institutional Class	$	4,559,652
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Investor Class		20,213,844
Institutional Class		400,205
Investor Class:
Net asset value and offering price per share	$	11.90
Institutional Class:
Net asset value and offering price per share	$	11.39

See accompanying notes which are an integral part of the financial statements.

F-10

Statement of Operations

For the six months ended January 31, 2004

(Unaudited)

Investment income:
Dividends	$	1,768,020
Interest		78,305
Total investment income		1,846,325
Expenses:
Advisory fees		275,789
Administrative services fees		54,670
Custodian fees		12,624
Distribution fees — Investor Class		270,026
Transfer agent fees — Investor Class		384,813
Transfer agent fees — Institutional Class		939
Trustees’ fees		6,412
Other		116,868
Total expenses		1,122,141
Less:  Expenses reimbursed and expense offset arrangements		(413,516	)
Net expenses		708,625
Net investment income		1,137,700
Realized and unrealized gain from investment securities and futures contracts:
Net realized gain from:
Investment securities		201,133
Futures contracts		1,247,375
		1,448,508
Change in net unrealized appreciation of:
Investment securities		26,888,731
Futures contracts		1,070,230
		27,958,961
Net gain from investment securities and futures contracts		29,407,469
Net increase in net assets resulting from operations	$	30,545,169

See accompanying notes which are an integral part of the financial statements.

F-11

Statement of Changes in Net Assets

For the six months ended January 31, 2004 and the year ended July 31, 2003

(Unaudited)

	January 31, 2004			July 31, 2003
Operations:
Net investment income	$	1,137,700		$	1,783,653
Net realized gain (loss) from investment securities and futures contracts		1,448,508			(1,041,880	)
Change in net unrealized appreciation of investment securities and futures contracts		27,958,961			16,960,878
Net increase in net assets resulting from operations		30,545,169			17,702,651
Distributions to shareholders from net investment income:
Investor Class		(1,149,283	)		(1,732,526	)
Institutional Class		(31,435	)		(36,320	)
Decrease in net assets resulting from distributions		(1,180,718	)		(1,768,846	)
Share transactions–net:
Investor Class		16,098,512			44,485,304
Institutional Class		(304,767	)		3,572,826
Net increase in net assets resulting from share transactions		15,793,745			48,058,130
Net increase in net assets		45,158,196			63,991,935
Net assets:
Beginning of period		199,907,769			135,915,834
End of period (including undistributed net investment income of $(26,210) and $16,808 for 2004 and 2003, respectively)	$	245,065,965		$	199,907,769

See accompanying notes which are an integral part of the financial statements.

F-12

Notes to Financial Statements

January 31, 2004

(Unaudited)

NOTE 1—Significant Accounting Policies

INVESCO S&P 500 Index Fund (the “Fund”) is a series portfolio of AIM Stock Funds (the “Trust”, formerly known as, INVESCO Stock Funds, Inc.). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of four separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund.

The Fund’s investment objective is to seek long-term capital growth. Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end, and as such, the net asset value for shareholder transactions may be different than the net asset value reported in these financial statements. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued 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. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers in a manner specifically authorized 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. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are determined as of the close of the respective markets. 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 a development/event is so significant such that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Trustees. Adjustments to closing prices to reflect fair value on affected foreign securities may be provided by an 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.

B. Repurchase Agreements — Repurchase agreements purchased by the Fund are fully collateralized by securities issued by the U.S. Government, its agencies or instrumentalities and such collateral is in the possession of the Fund’s custodian. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. 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.

C. Securities Transactions and Investment Income —Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

D. Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes.

F-13

E. Redemption Fees — The Fund has instituted a 2% redemption fee on certain share classes that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions, including exchanges of shares held less than 30 days. The redemption fee is accounted for as an addition to paid-in-capital by the Fund and is allocated among the share classes based on the relative net assets of each class.

F. Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. Any capital loss carryforwards listed are reduced for limitations, if any, to the extent required by the Internal Revenue Code.

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.

H. Expenses — Each Class bears expenses incurred specifically on its behalf and, in addition, each Class bears a portion of general expenses, based on relative net assets of each Class.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with A I M Advisors, Inc. (“AIM”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee at the annual rate of 0.25% of the Fund’s average daily net assets. For the period November 25, 2003 through January 31, 2004, the Fund paid advisory fees to AIM of $108,817. Prior to November 25, 2003, the Trust had an investment advisory agreement with INVESCO Funds Group, Inc. (“IFG”). For the period August 1, 2003 through November 24, 2003, the Fund paid advisory fees to IFG of $166,972. AIM has entered into a sub-advisory agreement with INVESCO Institutional (N.A.), Inc. (“INVESCO”) whereby AIM pays INVESCO 40% of the fee paid by the Fund to AIM.

AIM has voluntarily agreed to limit total annual operating expenses of Investor Class and Institutional Class shares to 0.65% and 0.35%, respectively. Voluntary fee waivers or reimbursements may be modified or discontinued at any time without further notice to investors after April 30, 2004 upon consultation with the Board of Trustees. Further, AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds on investments by the Fund in such affiliated money market funds (excluding investments made in money market funds with cash collateral from securities loaned by the Fund, if any).

For the period November 25, 2003 through January 31, 2004, AIM reimbursed no transfer agency expenses of the Fund for Investor Class and Institutional Class shares, respectively. Prior to November 25, 2003, IFG reimbursed transfer agency expenses of the Fund of $186,421 and $939 for Investor Class and Institutional Class shares, respectively. For the period November 25, 2003 through January 31, 2004, AIM reimbursed other class-specific expenses of the Fund of $101,653 and $3,658 for Investor Class and Institutional Class shares, respectively. Prior to November 25, 2003, IFG reimbursed other class-specific expenses of the Fund of $116,283 and $3,247 for Investor Class and Institutional Class shares, respectively. For the period November 25, 2003 through January 31, 2004, AIM reimbursed fund level expenses of the Fund of $1,070. Prior to November 25, 2003, IFG reimbursed no fund level expenses of the Fund.

AIM is entitled to reimbursement from a Fund that has had fees and expenses absorbed pursuant to these arrangements if such reimbursements do not cause the Fund to exceed the then current expense limitations and the reimbursement is made within three years after AIM incurred the expense. At January 31, 2004, the reimbursement that may potentially be made by the Fund to AIM which will expire during the calendar year ended 2005 for Investor Class and Institutional Class were $346,092 and $16,030, respectively, expiring during the calendar year ended 2006 for Investor Class and Institutional Class were $675,868 and $18,029, respectively and expiring during the calendar year ended 2007 for Investor Class and Institutional Class were $90,254 and $2,369, respectively. During the six months ended January 31, 2004, the Fund did not reimburse AIM for any previously reimbursed Fund expenses.

The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the period November 25, 2003 through January 31, 2004, AIM was paid $27,427 for such services. Prior to November 25, 2003, the Trust had an administrative services agreement with IFG. For the period August 1, 2003 through November 24, 2003, IFG was paid $27,242 for such services.

The Fund, pursuant to a transfer agency and service agreement, has agreed to pay AIM Investment Services, Inc. (“AISI”), formerly known as A I M Fund Services, Inc., a fee for providing transfer agency and shareholder services to the Fund. Prior to October 1, 2003, the Trust had a transfer agency and service agreement with IFG. For the period August 1, 2003 through September 30, 2003, IFG retained $82,261 for such services. For the period October 1, 2003 through January 31, 2004, AISI retained $291,259 for such services.

The Trust has entered into master distribution agreements with A I M Distributors, Inc. (“AIM Distributors”) to serve as the distributor for Investor Class and Institutional Class shares of the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Investor Class shares ( the “Plan”). The Fund, pursuant to the Plan, pays AIM Distributors compensation at the annual rate of 0.25% of the average daily net assets of Investor Class shares. Any amounts not paid as a service fee under the Plan would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plan, for the six months ended January 31, 2004, Investor Class shares paid $270,026.

Certain officers and trustees of the Trust are officers and directors of AIM, AISI, INVESCO and/or AIM Distributors.

NOTE 3—Expense Offset Arrangements

Indirect expenses under expense offset arrangements are comprised of custodian credits resulting from periodic overnight cash balances at the custodian. For the six months ended January 31, 2004, the Fund received reductions in custodian fees of $245 under an expense offset arrangement, which resulted in a reduction of the Fund’s total expenses of $245.

F-14

NOTE 4—Trustees’ Fees

Trustees’ fees represent remuneration paid to each Trustee of the Trust who is not an “interested person” of AIM. Trustees have the option to defer compensation payable by the Trust. The Trustees deferring compensation have the option to select various AIM and INVESCO Funds in which their deferral accounts shall be deemed to be invested.

Current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees that also participate in a retirement plan and receive benefits under such plan.

During the six months ended January 31, 2004, the Fund paid legal fees of $592 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 5—Borrowings

The Fund may participate in an interfund lending facility that AIM has established for temporary borrowings by the AIM Funds and the INVESCO Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. Under certain circumstances, a loan will be secured by collateral. To the extent that the loan is required to be secured by collateral, the collateral is marked to market daily to ensure that the market value is at least 102% of the outstanding principal value of the loan. The Fund did not borrow or lend under the facility during the six months ended January 31, 2004.

Effective December 6, 2003, the Fund became a participant in an uncommitted unsecured revolving credit facility with State Street Bank and Trust Company (“SSB”). The Fund may borrow up to the lesser of (i) $125,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which are parties to the credit facility can borrow on a first come, first served basis. Principal on each loan outstanding shall bear interest at the bid rate quoted by SSB at the time of the request for the loan. The Fund did not borrow under the facility during the six months ended January 31, 2004.

The Fund had available a committed Redemption Line of Credit Facility (“LOC”), from a consortium of national banks, to be used for temporary or emergency purposes to meet redemption needs. The LOC permitted borrowings to a maximum of 10% of the net assets at value of the Fund. Each Fund agreed to pay annual fees and interest on the unpaid principal balance based on prevailing market rates as defined in the agreement. The funds which were party to the LOC were charged a commitment fee of 0.10% on the unused balance of the committed line. The Fund did not borrow under the LOC during six months ended January 31, 2004. The LOC expired December 3, 2003.

Additionally the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds in the account so the custodian can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank. In either case, the custodian bank will be compensated an amount equal to the Federal Funds rate plus 100 basis points.

NOTE 6—Futures Contracts

On January 31, 2004, $1,900,000 principal amount of U.S. Treasury obligations were pledged as collateral to cover margin requirements for open futures contracts.

Open Futures Contracts at Period End
Contract	No. of Contracts	Month/ Commitment	Market Value		Unrealized Appreciation
S&P 500 Index	92	Mar.-04/Long	$	25,987,700	$	1,038,227

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be updated at the Fund’s fiscal year-end.

The Fund has a capital loss carryforward for tax purposes which expires as follows:

Expiration	Capital Loss Carryforward
July 31, 2009	$	984,405
July 31, 2010		4,511,356
July 31, 2011		5,082,425
Total capital loss carryforward	$	10,578,186

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended January 31, 2004 was $1,551,227 and $1,117,755, respectively.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	27,387,961
Aggregate unrealized (depreciation) of investment securities		(19,007,911	)
Net unrealized appreciation of investment securities	$	8,380,050

Cost of investments for tax purposes is $235,206,396.

F-15

NOTE 9—Share Information

The Fund currently offers two different classes of shares: Investor Class shares and Institutional Class shares. Investor Class shares and Institutional Class shares are sold at net asset value.

Changes in Shares Outstanding
	Six months ended January 31, 2004					Year ended July 31, 2003
	Shares		Amount			Shares		Amount
Sold:
Investor Class	4,700,859			52,420,096		10,379,029			98,378,776
Institutional Class	34,760			370,238		422,994			3,905,983
Issued as reinvestment of dividends:
Investor Class	98,386			1,131,377		176,457			1,697,518
Institutional Class	2,853			31,435		3,773			36,320
Reacquired:
Investor Class	(3,375,251	)		(37,466,431	)	(5,907,559	)		(55,657,798	)
Institutional Class	(62,572	)		(706,740	)	(38,165	)		(369,482	)
	1,399,035		$	15,779,975	*	5,036,529		$	47,991,317	*

* Amount is net of redemption fees of $13,470 and $300 for Investor Class and Institutional Class for 2004, and $66,808 and $5 for Investor Class and Institutional Class for 2003, respectively, based on the relative net assets of each class.

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Investor Class
	Six months ended January 31, 2004			Year ended July 31,
				2003			2002			2001			2000			1999
Net asset value, beginning of period	$	10.41		$	9.59		$	12.78		$	15.36		$	14.39		$	12.14
Income from investment operations:
Net investment income		0.06			0.10			0.09			0.10			0.11			0.14
Net gains (losses) on securities (both realized and unrealized)		1.49			0.82			(3.19	)		(2.39	)		1.09			2.29
Total from investment operations		1.55			0.92			(3.10	)		(2.29	)		1.20			2.43
Less distributions:
Dividends from net investment income		(0.06	)		(0.10	)		(0.09	)		(0.10	)		—			—
Distributions from net realized gains		—			—			—			(0.19	)		(0.23	)		(0.18	)
Total distributions		(0.06	)		(0.10	)		(0.09	)		(0.29	)		(0.23	)		(0.18	)
Redemption fees added to beneficial interest		0.00			0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	11.90		$	10.41		$	9.59		$	12.78		$	15.36		$	14.39
Total return(a)		14.89	%		9.73	%		(24.33	)%		(15.07	)%		8.34	%		20.09	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	240,506		$	195,668		$	135,578		$	116,309		$	92,784		$	64,613
Ratio of expenses to average net assets:
With expense reimbursements		0.65	%(b)		0.65	%		0.65	%		0.63	%		0.63	%		0.60	%
Without expense reimbursements		1.02	%(b)		1.05	%		1.01	%		0.99	%		0.95	%		0.99	%
Ratio of net investment income to average net assets		1.02	%(b)		1.15	%		0.84	%		0.75	%		0.74	%		1.06	%
Portfolio turnover rate(c)		1	%		1	%		3	%		43	%		13	%		2	%

^(a) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(b) Ratios are annualized and based on average daily net assets of $214,846,943.

^(c) Not annualized for periods less than one year.

F-16

NOTE 10—Financial Highlights (continued)

	Institutional Class
	Six months ended January 31, 2004			Year ended July 31,
				2003			2002			2001			2000			1999
Net asset value, beginning of period	$	9.97		$	9.23		$	12.45		$	15.07		$	14.21		$	12.01
Income from investment operations:
Net investment income		0.07			0.13	(a)		0.08			0.19	(a)		0.15			0.18
Net gains (losses) on securities (both realized and unrealized)		1.42			0.78			(3.11	)		(2.44	)		1.05			2.26
Total from investment operations		1.49			0.91			(3.03	)		(2.25	)		1.20			2.44
Less distributions:
Dividends from net investment income		(0.07	)		(0.17	)		(0.19	)		(0.18	)		—			—
Distributions from net realized gains		—			—			—			(0.19	)		(0.34	)		(0.24	)
Total distributions		(0.07	)		(0.17	)		(0.19	)		(0.37	)		(0.34	)		(0.24	)
Redemption fees added to beneficial interest		0.00			0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	11.39		$	9.97		$	9.23		$	12.45		$	15.07		$	14.21
Total return(b)		14.99	%		9.98	%		(24.50	)%		(15.09	)%		8.47	%		20.40	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	4,560		$	4,239		$	338		$	544		$	2,627		$	4,420
Ratio of expenses to average net assets:
With expense reimbursements		0.35	%(c)		0.35	%		0.35	%		0.35	%		0.36	%		0.35	%
Without expense reimbursements		0.69	%(c)		2.18	%		7.36	%		1.84	%		1.00	%		1.17	%
Ratio of net investment income to average net assets		1.32	%(c)		1.35	%		1.15	%		1.03	%		1.00	%		1.36	%
Portfolio turnover rate(d)		1	%		1	%		3	%		43	%		13	%		2	%

^a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $4,585,331.

^(d) Not annualized for periods less than one year.

NOTE 11—Legal Proceedings

Your Fund’s investment advisor, A I M Advisors, Inc. (“AIM”), is an indirect wholly owned subsidiary of AMVESCAP PLC (“AMVESCAP”). Another indirect wholly owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. (“IFG”), was formerly the investment advisor to the INVESCO Funds. IFG continues to serve as the investment advisor to INVESCO Variable Investment Funds, Inc. (“IVIF”). On November 25, 2003, AIM succeeded IFG as the investment advisor to the INVESCO Funds other than IVIF.

The mutual fund industry as a whole is currently subject to a wide range of inquiries and litigation related to a wide range of issues, including issues of “market timing” and “late trading.” Both AIM and IFG are the subject of a number of such inquiries, as described below.

    A.    Regulatory Inquiries and Actions

        1.    IFG

On December 2, 2003 each of the Securities and Exchange Commission (“SEC”) and the Office of the Attorney General of the State of New York (“NYAG”) filed civil proceedings against IFG and Raymond R. Cunningham, in his capacity as the chief executive officer of IFG. Mr. Cunningham also currently holds the positions of Chief Operating Officer and Senior Vice President of A I M Management Group Inc. (the parent of AIM) and the position of Senior Vice President of AIM. In addition, on December 2, 2003, the State of Colorado filed civil proceedings against IFG. Neither the Fund nor any of the other AIM or INVESCO Funds has been named as a defendant in any of these proceedings.

The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds’ prospectuses and to the INVESCO Funds’ independent directors that IFG had entered into certain arrangements permitting market timing of the INVESCO Funds. The SEC is seeking injunctions, including permanent injunctions from serving as an investment advisor, officer or director of an investment company; an accounting of all market timing as well as certain fees and compensation received; disgorgement; civil monetary penalties; and other relief.

The NYAG and Colorado complaints make substantially similar allegations. The NYAG is seeking injunctions, including permanent injunctions from directly or indirectly selling or distributing shares of mutual funds; disgorgement of all profits obtained, including fees collected, and payment of all restitution and damages caused, directly or indirectly from the alleged illegal activities; civil monetary penalties; and other relief. The State of Colorado is seeking injunctions; restitution, disgorgement and other equitable relief, civil monetary penalties; and other relief.

F-17

NOTE 11—Legal Proceedings (continued)

In addition, IFG has received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing and other related issues concerning the INVESCO Funds. These regulators include the Florida Department of Financial Services, the Commissioner of Securities for the State of Georgia, the Office of the State Auditor for the State of West Virginia, the Office of the Secretary of State for West Virginia, the Department of Banking for the State of Connecticut and the Colorado Securities Division. IFG has also received more limited inquiries concerning related matters from the United States Department of Labor, NASD Inc. and the SEC, none of which directly bears upon the Fund. IFG is providing full cooperation with respect to these inquiries.

        2.    AIM

AIM has also received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing, and related issues concerning the AIM Funds. AIM has received requests for information and documents concerning these and related matters from the SEC, the Massachusetts Secretary of the Commonwealth, the Office of the State Auditor for the State of West Virginia and the Department of Banking for the State of Connecticut. In addition, AIM has received subpoenas concerning these and related matters from the NYAG, the United States Attorney’s Office for the District of Massachusetts, the Commissioner of Securities for the State of Georgia and the Office of the Secretary of State for West Virginia. AIM has also received more limited inquiries from the SEC and NASD, Inc. concerning specific funds, entities and/or individuals, none of which directly bears upon the Fund. AIM is providing full cooperation with respect to these inquiries.

        3.    AMVESCAP Response

AMVESCAP is seeking to resolve both the pending regulatory complaints against IFG alleging market timing and the ongoing market timing investigations with respect to IFG and AIM. AMVESCAP recently found, in its ongoing review of these matters, that shareholders were not always effectively protected from the potential adverse impact of market timing and illegal late trading through intermediaries. These findings were based, in part, on an extensive economic analysis by outside experts who have been retained by AMVESCAP to examine the impact of these activities. In light of these findings, AMVESCAP has publicly stated that any AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities will receive full restitution. AMVESCAP has informed regulators of these findings. In addition, AMVESCAP has retained outside counsel to undertake a comprehensive review of AIM’s and IFG’s policies, procedures and practices, with the objective that they rank among the most effective in the fund industry.

There can be no assurance that AMVESCAP will be able to reach a satisfactory settlement with the regulators, or that any such settlement will not include terms which would have the effect of barring either or both of IFG and AIM, or any other investment advisor directly or indirectly owned by AMVESCAP, from serving as an investment advisor to any registered investment company including the Fund. The Fund has been informed by AIM that, if either of these results occurs, AIM will seek exemptive relief from the SEC to permit it to continue to serve as the Fund’s investment advisor. There can be no assurance that such exemptive relief will be granted. Any settlement with the regulators could also include terms which would bar Mr. Cunningham from serving as an officer or director of any registered investment company.

    B.    Private Actions

In addition to the complaints described above, multiple lawsuits, including purported class action and shareholder derivative suits, have been filed against various parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, A I M Management Group Inc., AMVESCAP, certain related entities and certain of their officers, including Mr. Cunningham). The allegations in the majority of the lawsuits are substantially similar to the allegations in the regulatory complaints against IFG described above. Certain other lawsuits allege that certain AIM and INVESCO Funds inadequately employed fair value pricing. Such lawsuits allege a variety of theories of recovery, including but not limited to: (i) violation of various provisions of the Federal and state securities laws; (ii) violation of various provisions of the Employee Retirement Income Security Act (“ERISA”); (iii) breach of fiduciary duty; and (iv) breach of contract. The lawsuits have been filed in both Federal and state courts and seek such remedies as compensatory damages; restitution; rescission; accounting for wrongfully gotten gains, profits and compensation; injunctive relief; disgorgement; equitable relief; various corrective measures under ERISA; recission of certain Funds’ advisory agreements with AIM; declaration that the advisory agreement is unenforceable or void; refund of advisory fees; interest; and attorneys’ and experts’ fees.

IFG has removed certain of the state court proceedings to Federal District Court. The Judicial Panel on Multidistrict Litigation (the “Panel”) has ruled that all actions alleging market timing throughout the mutual fund industry should be transferred to the United States District Court for the District of Maryland for coordinated pre-trial proceedings. Twelve actions filed against IFG have been conditionally transferred to the Panel in Maryland, and IFG and AIM anticipate that all other market timing actions that may be filed or that are already pending against IFG and/or AIM will be transferred to the Panel as well.

Additional lawsuits or regulatory actions arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the Fund, IFG, AIM, AMVESCAP and related entities and individuals in the future.

As a result of these developments, investors in the AIM and INVESCO Funds might react by redeeming their investments. This might require the Funds to sell investments to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the Funds.

At the present time, management of AIM and the Fund is unable to estimate the impact, if any, that the outcome of the matters described above may have on the Fund or AIM.

F-18

Proxy Results (Unaudited)

A Special Meeting of Shareholders of INVESCO S&P 500 Index Fund, (“Fund”), a portfolio of AIM Stock Funds (formerly INVESCO Stock Funds, Inc. and AIM Stock Funds Inc.), (“Company”), a Delaware statutory trust, was held on October 21, 2003. The meeting was adjourned and reconvened on October 28, 2003, on November 4, 2003 and reconvened on November 11, 2003. The meeting was held for the following purposes:

(1)* To elect sixteen individuals to the Board, each of whom will serve until his or her successor is elected and qualified: Bob R. Baker, Frank S. Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J. Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S. Sklar, Larry Soll, Ph D. and Mark H. Williamson.

(2) To approve a new Investment Advisory Agreement with A I M Advisors, Inc.

(3) To approve a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc.

(4)* To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.

The results of the voting on the above matters were as follows:

	Trustees/Matter	Votes For	Withholding Authority
(1)*	Bob R. Baker	362,405,144	19,855,030
	Frank S. Bayley	362,437,628	19,822,546
	James T. Bunch	362,488,718	19,771,456
	Bruce L. Crockett	362,515,953	19,744,221
	Albert R. Dowden	362,455,376	19,804,798
	Edward K. Dunn, Jr.	362,445,962	19,814,212
	Jack M. Fields	362,484,095	19,776,079
	Carl Frischling	362,371,394	19,888,780
	Robert H. Graham	362,402,926	19,857,248
	Gerald J. Lewis	362,263,534	19,996,640
	Prema Mathai-Davis	362,317,138	19,943,036
	Lewis F. Pennock	362,372,299	19,887,875
	Ruth H. Quigley	362,270,092	19,990,082
	Louis S. Sklar	362,404,051	19,856,123
	Larry Soll, Ph.D	362,452,103	19,808,071
	Mark H. Williamson	362,227,445	20,032,729

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(2)	Approval of a new Investment Advisory Agreement with A I M Advisors, Inc.	9,501,270	266,325	222,051
(3)	Approval of a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc	9,495,919	256,592	237,135
(4)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	302,828,268	16,875,556	62,556,350	**

A Special Meeting of Shareholders of the Company noted above was reconvened on October 28, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	326,477,030	18,532,333	62,801,232	**

F-19

Proxy Results (Unaudited) (continued)

A Special Meeting of Shareholders of the Company noted above was reconvened on November 4, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	345,396,965	18,782,801	62,618,399	**

A Special Meeting of Shareholders of the Company noted above was reconvened on November 11, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	Approval of an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	354,789,002	19,165,807	57,283,120	**

* Proposal required approval by a combined vote of all the portfolios of AIM Stock Funds.

** Includes Broker Non-Votes

F-20

OTHER INFORMATION

Trustees and Officers

As of January 31, 2004

Board of Trustees	Officers	Office of the Fund
Bob R. Baker Frank S. Bayley James T. Bunch Bruce L. Crockett Albert R. Dowden Edward K. Dunn, Jr. Jack M. Fields Carl Frischling Robert H. Graham Gerald J. Lewis Prema Mathai-Davis Lewis F. Pennock Ruth H. Quigley Louis S. Sklar Larry Soll, Ph.D. Mark H. Williamson	Robert H. Graham Chairman and President Raymond R. Cunningham Executive Vice President Mark H. Williamson Executive Vice President Kevin M. Carome Senior Vice President and Chief Legal Officer Sidney M. Dilgren Vice President and Treasurer Robert G. Alley Vice President Stuart W. Coco Vice President Melville B. Cox Vice President Karen Dunn Kelley Vice President Edgar M. Larsen Vice President	11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Investment Advisor A I M Advisors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Sub-Advisor INVESCO Institutional (N.A.), Inc. One Midtown Plaza 1360 Peachtree Street, N.E. Suite 100 Atlanta, GA 30309 Transfer Agent A I M Investment Services, Inc. P.O. Box 4739 Houston, TX 77210-4739 Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110 Counsel to the Fund Ballard Spahr Andrews & Ingersoll, LLP 1735 Market Street Philadelphia, PA 19103-7599 Counsel to the Trustees Kramer, Levin, Naftalis & Frankel LLP 919 Third Avenue New York, NY 10022-3852 Distributor A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173

Domestic Equity

AIM Aggressive Growth Fund

AIM Balanced Fund*

AIM Basic Balanced Fund*

AIM Basic Value Fund

AIM Blue Chip Fund

AIM Capital Development Fund

AIM Charter Fund

AIM Constellation Fund

AIM Dent Demographic Trends Fund

AIM Diversified Dividend Fund¹

AIM Emerging Growth Fund

AIM Large Cap Basic Value Fund

AIM Large Cap Growth Fund

AIM Libra Fund

AIM Mid Cap Basic Value Fund

AIM Mid Cap Core Equity Fund

AIM Mid Cap Growth Fund

AIM Opportunities I Fund

AIM Opportunities II Fund

AIM Opportunities III Fund

AIM Premier Equity Fund

AIM Select Equity Fund

AIM Small Cap Equity Fund²

AIM Small Cap Growth Fund³

AIM Trimark Endeavor Fund

AM Trimark Small Companies Fund

AIM Weingarten Fund

INVESCO Core Equity Fund

INVESCO Dynamics Fund

INVESCO Mid-Cap Growth Fund

INVESCO Small Company Growth Fund

INVESCO S&P 500 Index Fund

INVESCO Total Return Fund*

* Domestic equity and income fund

International/Global Equity

AIM Asia Pacific Growth Fund

AIM Developing Markets Fund

AIM European Growth Fund

AIM European Small Company Fund

AIM Global Aggressive Growth Fund

AIM Global Growth Fund

AIM Global Trends Fund⁵

AIM Global Value Fund⁶

AIM International Emerging Growth Fund

AIM International Growth Fund

AIM Trimark Fund

INVESCO International Core Equity Fund⁷

Sector Equity

AIM Global Health Care Fund

AIM Real Estate Fund

INVESCO Advantage Health Sciences Fund

INVESCO Energy Fund

INVESCO Financial Services Fund

INVESCO Gold & Precious Metals Fund

INVESCO Health Sciences Fund

INVESCO Leisure Fund

INVESCO Multi-Sector Fund

INVESCO Technology Fund

INVESCO Utilities Fund

Fixed Income

TAXABLE

AIM Floating Rate Fund

AIM High Yield Fund

AIM Income Fund

AIM Intermediate Government Fund

AIM Limited Maturity Treasury Fund

AIM Money Market Fund

AIM Short Term Bond Fund

AIM Total Return Bond Fund

INVESCO U.S. Government Money Fund

TAX-FREE

AIM High Income Municipal Fund

AIM Municipal Bond Fund

AIM Tax-Exempt Cash Fund

AIM Tax-Free Intermediate Fund

Consider the investment objectives, risks, and charges and expenses carefully. For this and other important information about AIM and INVESCO funds, obtain a prospectus from your financial advisor or AIMInvestments.com and read it thoroughly before investing.

¹Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed Aim Diversified Dividend Fund. ²As of the close of business on February 27, 2004. AIM Mid Cap Core Equity Fund is available to new investors on a limited basis. For information on who may continue to invest in AIM Mid Cap Core Equity Fund, please contact your financial advisor. ³AIM Small Cap Equity Fund was closed to most investors on December 19, 2003. For information on who may continue to invest in AIM Small Cap Equity Fund, please contact your financial advisor. ⁴AIM Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. ⁵Effective March 31, 2004, AIM Global Trends Funds was renamed AIM Global Equity Fund. ⁶Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. ⁷Effective November 24, 2003, INVESCO International Blue Chip Value Fund was renamed INVESCO International Core Equity Fund.

If used after April, 2004, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual funds distributed by AIM Distributors, Inc.

A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $149 billion in assets for approximately 11 million shareholders, including individual investors, corporate clients and financial institutions. AIM is a subsidiary of AMVESCAP PLC. one of the world’s largest independent financial services companies with $371 billion in assets under management. Data as of December 31, 2003.

AIMinvestments.com

Your goals. Our solutions.^SM

Mutual Funds Retirement products Annuities College Savings Plan Separately Managed Accounts Offshore Products Alternative Investments Cash Management AIM Logo^SM

INVESCO Small Company

Growth Fund

Semiannual Report to Shareholders - January 31, 2004

COVER IMAGE

Your goals. Our solutions. ^SM

AIM Logo^SM

INVESCO SMALL COMPANY GROWTH FUND seeks long-term capital growth.

n Unless otherwise stated, information presented is as of 1/31/04 and is based on total net assets.

About share classes

n Effective 9/30/03, Class B shares are not available as an investment for retirement plans maintained pursuant to Section 401 of the Internal Revenue Code, including 401(k) plans, money purchase pension plans and profit sharing plans. Plans that have existing accounts invested in Class B shares will continue to be allowed to make additional purchases.

n Investor Class shares are closed to most investors. For more information on who may continue to invest in the Investor Class shares, please see the appropriate prospectus.

n Class K shares are available only to certain retirement plans. Please see the prospectus for more details.

Principal risks of investing in the fund

n Investing in small and mid-size companies involves risks not associated with investing in more established companies. Also, small companies may have business risk, significant stock price fluctuations and illiquidity.

n International investing presents certain risks not associated with investing solely in the United States. These include risks relating to fluctuations in the value of the U.S. dollar relative to the values of other currencies, the custody arrangements made for the fund’s foreign holdings, differences in accounting, political risks and the lesser degree of public information required to be provided by non-U.S. companies. The fund may invest up to 25% of its assets in the securities of non-U.S. issuers. Securities of Canadian issuers and American Depository Receipts are not subject to this 25% limitation.

About indexes used in this report

n The unmanaged Standard & Poor’s Composite Index of 500 Stocks (the S&P 500^® Index) is an index of common stocks frequently used as a general measure of U.S stock market performance.

n The unmanaged Russell 2000^® Growth Index is a subset of the unmanaged Russell 2000 Index, which represents the performance of the stocks of small-capitalization companies; the Growth subset measures the performance of Russell 2000 companies with higher pricehook ratios and higher forecasted growth values.

n The fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the fund may deviate significantly from the performance of the indexes.

n A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of an index of funds reflects fund expenses: performance of a market index does not.

Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor’s.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-959-4246, or on the AIM Web site, AIMinvestrnents.com.

This report must be accompanied or preceded by a currently effective fund prospectus, which contains more complete information, including sales charges and expenses. Read it carefully before you invest.

Not FDIC Insured    May lose value    No bank guarantee

AIMinvestments.com

TO OUR SHAREHOLDERS

GRAHAM

PHOTO

Robert H. Graham

Dear fellow Shareholder in The AIM family of funds^®:

Major stock market indexes here and abroad delivered positive performance during the six months covered by this report. As is historically the case, bond market returns were more modest, but positive as well. The U.S. economy appears to have turned a corner, with solid growth in gross domestic product during the third and fourth quarters of 2003. Overseas, particularly in Europe, economic performance picked up during the second half of 2003.

Investors in the United States seem to have regained their confidence. They added $43.8 billion to U.S. stock mutual funds in January 2004 and $496 million to bond funds. By contrast, money market funds, considered a safe haven because of their emphasis on stability of net asset value, suffered large net outflows during the month. As the reporting period closed, total mutual fund assets stood at a record $7.54 trillion.

The durability of these trends is, of course, unpredictable, and we caution our shareholders against thinking that 2004 will see a rerun of the markets’ good performance during 2003. That said, it is also true that the economy appears to have the wind at its back in terms of fiscal, monetary and tax stimulus, and corporate earnings have been strong.

What should investors do? They should do what we have always urged: Keep their eyes on their long-term goals, keep their portfolios diversified, and work with their financial advisors to tailor their investments to their risk tolerance and investment objectives. We cannot overemphasize the importance of professional guidance when it comes to selecting investments.

For information on your fund’s performance and management during the reporting period, please see the management discussion that begins on the following page.

Visit our Web site

As you are aware, the mutual fund industry and AIM Investments have been the subject of allegations and investigations of late surrounding the issues of market timing and late trading in funds. We understand how unsettling this may be for many of our shareholders. We invite you to visit AIMinvestments.com, our Web site, often. We will continue to post updates on these issues as information becomes available.

The Securities and Exchange Commission, which regulates our industry, has already proposed new rules and regulations, and is planning to propose several more, that address the issues of market timing and late trading, among others. The Investment Company Institute, the industry trade group, and we welcome these efforts. We believe comprehensive rule making is necessary and is the best way to establish new industry responsibilities designed to protect shareholders. We support practical rule changes and structural modifications that are fair, enforceable and, most importantly, beneficial for investors.

Should you visit our Web site, we invite you to explore the other material available there, including general investing information, performance updates on our funds, and market and economic commentary from our financial experts.

As always, AIM is committed to building solutions for your investment goals, and we thank you for your continued participation in AIM Investments. If you have any questions, please contact our Client Service representatives at 800-959-4246.

Sincerely,

GRAHAM SIGNATURE

Robert H. Graham

Chairman and President

March 9, 2004

MANAGEMENT‘S DISCUSSION OF FUND PERFORMANCE

Fund seeks to take advantage of improving economy

For the six months ended January 31,2004, INVESCO Small Company Growth Fund, Investor Class shares returned 16.82%. Performance for other share classes can be found on Page 3. By comparison, the Russell 2000 Growth Index returned 21.81% over the same period. In managing the fund, our focus is on the stocks of companies with sustainable long-term earnings growth potential. The fund underperformed its index because many of the stocks that led the market rally, especially during the third quarter of 2003, did not meet these investment criteria.

Market conditions

The S&P 500 Index, which returned 15.22% for the six months ended January 31, 2004, rallied amid a backdrop of generally improv- ing economic conditions. During this rally, the nation’s gross domestic product, widely regarded as the broadest measure of economic activity, expanded at an annualized rate of 8.2%in the third quarter and 4.1% in the fourth quarter of 2003. In a report to Congress, the Federal Reserve Board (the Fed) noted that industrial production, corporate profits and business and consumer spending all increased during the reporting period.

Indeed, total sales from November 2003 through January 2004 were up 6.2% compared to the same three months a year earlier. The period included the holiday season, which is critical from a sales perspective for many businesses. The Fed also noted in its report that capital spending increased and there was evidence that some firms had started to build up their inventories, indicators that business confidence had improved. The housing market also continued to be “robust,” according to the Fed.

Inflation was subdued and interest rates were low. During the reporting period, the Fed kept the short-term federal funds rate at 1.00%,its lowest level since 1958. The job market remained weak, however. While the unemployment rate declined during the reporting period, it was still 5.6% at the end of January 2004.

All sectors of the S&P 500 Index recorded gains for the reporting period. Information technology, energy and industrials were the top-performing secton while health care, consumer staples and telecommunication services were the weakest-performing sectors.

Small- and mid-cap stocks generally out- performed large-cap stocks for the reporting period, and value stocks generally outper- formed growth stocks. Small-cap value stocks, on average, were the best-performing segment of the market.

Small- and mid-cap stocks generally outperformed large-cap stocks for the reporting period

Your fund

During the reporting period, we continued to adjust the portfolio to take advantage of an economic recovery. We increased the fund’s exposure to more aggressive sectors such as information technology, industrials, and materials. Simultaneously, we eliminated the fund’s holdings in consumer staples, a more defensive sector, and reduced its exposure to energy,

TOP 10 EQUITY HOLDINGS*
1. iShares Russell 2000 Growth Index Fund	1.2	%
2. Aeroflex Inc.	1.1
3. Corinthian Colleges, Inc.	1.1
4. Marvel Enterprises, Inc.	1.1
5. Labor Ready, Inc.	1.0
6. F5 Networks, Inc.	1.0
7. Affiliated Managers Group, Inc.	1.0
8. Plexus Corp.	1.0
9. Arris Group Inc.	1.0
10. Aeropostale, Inc.	0.9

TOP 10 INDUSTRIES*
1. Biotechnology	6.5	%
2. Semiconductors	6.5
3. Communications Equipment	4.9
4. Application Software	4.3
5. Casinos & Gaming	4.1
6. Regional Banks	3.6
7. Diversified Commercial Services	3.4
8. Health Care Services	3.3
9. Asset Management & Custody Banks	3.1
10. Health Care Equipment	3.1

TOTAL NUMBER OF HOLDINGS*		144
TOTAL NET ASSETS	$	1.1 billion

*Excludes money market fund holdings.

The fund’s holdings are subject to change, and there is no assurance that the fund will continue to hold any particular security.

2

which also is more defensive in nature. We increased the fund’s exposure to health care, as we found what we consider attractive investment opportunities in this sector.

At the close of the period, the fund’s top sector weightings were in information technology, health care and consumer discretionary. These sectors also had the most positive impact on fund performance. However, our information technology and health care stocks generally underperformed those in the Russell 2000 Growth Index. In our opinion, that was because the index contained more speculative technology and health care stocks of companies that did not meet our criteria of sustainable long-term earnings growth potential.

Stocks that made a positive contribution to fund performance included Aeroflex, which produces high tech components for the aerospace and communications industries, and Marvel Enterprises, a toy manufacturer and comic book publisher. Aeroflex’s stock more than doubled in value over the reporting period as the company reported record sales for the quarter ended December 31, 2003. Marvel’s stock also appreciated in value as the company reported earnings that beat analysts’ expectations for three consecutive quarters in 2003.

Scientific Games, which operates government lottery networks, was another stock that enhanced performance. The company, which reported a 15% increase in revenue for the third quarter of 2003, announced the completion of the acquisition of one of its major competitors in November.

Detracting from performance were Regeneration Technologies, which produces tissues for implants in various medical proce- dures, and The BISYS Group, which provides outsourcing and other services for financial institutions and corporate clients. After both companies revised their earnings estimates downward for the quarter ended September 30, 2003, their stock prices declined. Regeneration Technologies rebounded, however, and reported record net income for 2003. The fund no longer owned The BISYS Group stock as of the end of the reporting period.

In closing

Throughout the reporting period, we remained committed to the fund’s capitalization target, selection criteria and sell discipline. We are pleased to be able to report the fund’s solid performance for the period, and we appreciate your participation in the fund.

See important fund and index disclosures inside front cover.

COWELL

PHOTO

Stacie L. Cowell,

Lead Manager

Ms.Cowell, Chartered Financial Analyst, serves as the lead portfolio manager for INVESCO Small Company Growth Fund. She began her investment career in 1989 and joined INVESCO in 1996. Ms.Cowell holds a master’s in finance from the University of Colorado. She received her bachelor’s in economics from Colgate University

COOKE

PHOTO

Cameron Cooke

Mr.Cooke is co-manager for INVESCO Small Company Growth Fund. He began his investment career in 1996, joining INVESCO in 2000. He received his bachelor’s in economics from the University of North Carolina at Chapel Hill.

FUND VS. INDEXES

Total returns, 7/31/03-1/31/04, excluding applicable sales charges.

If sales charges were Included, returns would be lower.

Class A Shares	16.80	%
Class B Shares	16.45
Class C Shares	16.33
Class K Shares	16.62
Investor Class Shares	16.82
Russell 2000 Growth Index	21.81
Source: Lipper, Inc.

Past performance cannot guarantee comparable future results.

[ARROW GRAPHIC LOGO]

For a presentation of your fund’s long-term performance record, please turn the page.

3

LONG-TERM PERFORMANCE

Your fund’s long-term performance

Below you will find a presentation of your fund’s long-term performance record for periods ended 1/31/04, the close of the six-month period covered by this report. As required by industry regulations, we also present long-term performance for periods ended 12/31/03, the most recent calendar quarter-end.

Please read the important disclosure accompanying these tables, which explains how fund performance is calculated and the sales charges, if any, that apply to the share class in which you are invested.

AVERAGE ANNUAL TOTAL RETURNS
As of 1/31/04, including applicable sales charges
Class A Shares
Inception (3/28/02)	-1.01	%
1 Year	36.13
Class B Shares
Inception (3/28/02)	-0.77	%
1 Year	38.18
Class C Shares
Inception (2/14/00)	-13.26	%
1 Year	41.08
Class K Shares
Inception (12/14/01)	-0.44	%
1 Year	43.83
Investor Class Shares
Inception (12/26/91)	11.47	%
10 Years	8.60
5 Years	3.70
1 Year	44.07

AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/03, including applicable sales charges
Class A Shares
Inception (3/28/02)	-3.73	%
1 Year	26.05
Class B Shares
Inception (3/28/02)	-3.53	%
1 Year	27.69
Class C Shares
Inception (2/14/00)	-14.58	%
1 Year	30.79
Class K Shares
Inception (12/14/01)	-2.74	%
1 Year	33.37
Investor Class Shares
Inception (12/26/91)	11.11	%
10 Years	8.18
5 Years	2.93
1 Year	33.49

The performance data quoted represent past performance and cannot guarantee comparable future rasults, current performance may be lower or higher. Please visit AlMinvestments.com for the most recent month-end performance. Performance figures rflect reinvested distributions, changes in net asset value and the effect of the maximum sale charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class K shares have no sales charge: therefore, performance quoted is at net asset value. Class K share returns do not include a 0.70% contingent deferred sales charges (CDSC) that may be imposed on a total redemption of retirement plan assets within the first year. Investor Class shares have no sales charge: therefore performance quoted is at net asset value. The performance of the fund’s share classes will differ due to different sales charge structures and class expenses.

Had the advisor not waived fees and/ or reimbursed expenses. Class B, C and K share returns would have been lower.

ARROW BUTTON IMAGE For More Information Visit AIMinvestments.com

4

FINANCIALS

Schedule of Investments

January 31, 2004

(Unaudited)

	Shares	Market Value
Common Stocks & Other Equity Interests–91.00%
Airlines–0.67%
AirTran Holdings, Inc.(a)	617,900	$	7,118,208
Apparel Retail–2.56%
Aeropostale, Inc.(a)	339,100		10,122,135
Finish Line, Inc. (The)–Class A(a)	167,500		5,695,000
Hot Topic, Inc.(a)	183,150		5,580,580
Men’s Wearhouse, Inc. (The)(a)	259,700		6,048,413
			27,446,128
Application Software–4.31%
Agile Software Corp.(a)	668,800		6,955,520
Altiris, Inc.(a)	135,920		4,913,508
FileNET Corp.(a)	271,200		7,946,160
Inet Technologies, Inc.(a)	361,600		5,398,688
MicroStrategy Inc.–Class A(a)	104,100		6,494,799
MSC.Software Corp.(a)	759,600		7,725,132
RSA Security Inc.(a)	408,730		6,756,307
			46,190,114
Asset Management & Custody Banks–3.13%
Affiliated Managers Group, Inc.(a)	122,800		10,413,440
Eaton Vance Corp.	227,500		8,588,125
Investors Financial Services Corp.	187,100		7,753,424
National Financial Partners Corp.	202,700		6,727,613
			33,482,602
Biotechnology–6.53%
Abgenix, Inc.(a)	354,300		5,527,080
Connectics Corp.(a)	401,500		8,837,015
Dendreon Corp.(a)	400,100		5,601,400
Gen-Probe Inc.(a)	184,700		6,966,884
IDEXX Laboratories, Inc.(a)	108,100		5,300,143
ILEX Oncology, Inc.(a)	318,700		7,409,775
Ligand Pharmaceuticals Inc.–Class B(a)(b)	100,000		1,451,000
Ligand Pharmaceuticals Inc.–Class B(a)	313,500		4,548,885
Martek Biosciences Corp.(a)	82,700		5,363,922
Nabi Biopharmaceuticals(a)	104,200		1,684,914
Neurocrine Biosciences, Inc.(a)	102,100		5,777,839
NPS Pharmaceuticals, Inc.(a)	210,600		7,267,806
OSI Pharmaceuticals, Inc.(a)	121,100		4,214,280
			69,950,943

	Shares	Market Value
Broadcasting & Cable TV–0.62%
Radio One, Inc.–Class D(a)	362,600	$	6,682,718
Casinos & Gaming–4.05%
Alliance Gaming Corp.(a)	342,000		8,242,200
Mandalay Resort Group	136,400		6,393,068
Pinnacle Entertainment, Inc.(a)	397,500		4,952,850
Scientific Games Corp.–Class A(a)	414,200		6,208,858
Station Casinos, Inc.	282,300		9,883,323
WMS Industries Inc.(a)	264,700		7,689,535
			43,369,834
Communications Equipment–4.91%
Arris Group Inc.(a)	1,107,000		10,184,400
F5 Networks, Inc.(a)	311,900		10,607,719
NETGEAR, Inc.(a)	462,100		7,800,248
NetScreen Technologies, Inc.(a)	337,800		8,823,336
REMEC, Inc.(a)	622,800		6,234,228
Tekelec(a)	436,100		8,874,635
			52,524,566
Computer Storage & Peripherals–0.65%
Dot Hill Systems Corp.(a)	492,700		7,006,194
Construction & Farm Machinery & Heavy Trucks–2.13%
Joy Global Inc.	250,500		6,595,665
Oshkosh Truck Corp.	156,700		9,132,476
Wabash National Corp.( a)	255,900		7,039,809
			22,767,950
Data Processing & Outsourced Services–0.49%
Syntel, Inc.	179,800		5,192,624
Diversified Commercial Services–3.39%
Corinthian Colleges, Inc.(a)	186,200		11,598,398
Corporate Executive Board Co. (The)(a)	143,700		6,861,675
ITT Educational Services, Inc.(a)	113,130		6,264,008
LECG Corp.(a)	217,600		5,083,136
Sylvan Learning Systems, Inc.(a)	215,900		6,522,339
			36,329,556
Diversified Metals & Mining–0.65%
Arch Coal, Inc.	250,600		6,921,572
Electronic Equipment Manufacturers–1.59%
Aeroflex Inc.(a)	806,860		11,876,979
Digital Theater Systems Inc.(a)	201,700		5,111,078
			16,988,057

F-1

	Shares	Market Value
Electronic Manufacturing Services–2.59%
Benchmark Electronics, Inc.(a)	205,200	$	7,214,832
Merix Corp.(a)	300,900		8,169,435
Plexus Corp.(a)	474,200		10,399,206
Trimble Navigation Ltd.(a)	53,590		1,990,868
			27,774,341
Employment Services–2.39%
Heidrick & Struggles International, Inc.(a)	435,050		9,331,823
Labor Ready, Inc.(a)	818,000		10,756,700
Resources Connection, Inc.(a)	160,360		5,493,934
			25,582,457
Environmental Services–0.69%
Stericycle, Inc.(a)	165,900		7,332,780
General Merchandise Stores–0.87%
Tuesday Morning Corp.(a)	296,000		9,356,560
Health Care Equipment–3.01%
Advanced Neuromodulation Systems, Inc.(a)	202,150		8,933,009
ALARIS Medical Systems, Inc.(a)	237,800		4,756,000
ArthroCare Corp.(a)	143,475		3,510,833
Cyberonics, Inc.(a)	134,600		4,085,110
INAMED Corp.(a)	95,550		4,924,647
Therasense, Inc.(a)	224,400		6,002,700
			32,212,299
Health Care Facilities–2.28%
Community Health Systems Inc.(a)	288,100		8,141,706
Select Medical Corp.	508,500		8,797,050
United Surgical Partners International, Inc.(a)	196,600		7,498,324
			24,437,080
Health Care Services–3.32%
Accredo Health, Inc.(a)	279,400		9,471,660
DaVita, Inc.(a)	177,600		7,125,312
Dendrite International, Inc.(a)	337,000		5,725,630
eResearch Technology, Inc.(a)	160,600		5,380,100
SFBC International, Inc.(a)	256,100		7,859,709
			35,562,411
Health Care Supplies–0.40%
Regeneration Technologies, Inc.(a)	426,100		4,261,000
Homebuilding–0.46%
Ryland Group, Inc. (The)	64,000		4,880,000
Industrial Gases–0.77%
Airgas, Inc.	365,400		8,290,926

	Shares	Market Value
Industrial Machinery–1.57%
IDEX Corp.	192,700	$	8,035,590
Kennametal Inc.	206,200		8,742,880
			16,778,470
Internet Retail–0.33%
Netflix Inc.(a)	48,600		3,568,698
Internet Software & Services–2.33%
Ask Jeeves, Inc.(a)	165,300		3,588,663
Openwave Systems Inc.(a)	392,166		5,819,743
SupportSoft, Inc.(a)	619,600		8,296,444
webMethods, Inc.(a)	671,500		7,211,910
			24,916,760
Investment Banking & Brokerage–1.69%
Knight Trading Group, Inc.(a)	592,300		8,173,740
Raymond James Financial, Inc.	259,700		9,878,988
			18,052,728
Investment Companies—Exchange Traded Funds–1.18%
iShares Russell 2000 Growth Index Fund	203,500		12,651,595
IT Consulting & Other Services–1.28%
Cognizant Technology Solutions Corp.(a)	42,900		2,317,887
MAXIMUS, Inc.(a)	147,100		5,663,350
SRA International, Inc.–Class A(a)	154,199		5,763,959
			13,745,196
Leisure Products–1.06%
Marvel Enterprises, Inc.(a)	352,200		11,351,406
Managed Health Care–0.75%
Sierra Health Services, Inc.(a)	273,400		8,037,960
Oil & Gas Drilling–2.35%
Grey Wolf, Inc.(a)	1,987,400		8,307,332
Patterson-UTI Energy, Inc.(a)	236,900		8,192,002
Precision Drilling Corp. (Canada)(a)	187,600		8,691,508
			25,190,842
Oil & Gas Equipment & Services–1.52%
Maverick Tube Corp.(a)	384,900		6,989,784
National-Oilwell, Inc.(a)	362,400		9,317,304
			16,307,088
Oil & Gas Exploration & Production–0.74%
Spinnaker Exploration Co.(a)	233,800		7,953,876
Pharmaceuticals–2.63%
Cypress Bioscience, Inc.(a)	209,745		2,282,026
Eon Labs, Inc.(a)	64,400		3,679,172

F-2

	Shares	Market Value
Pharmaceuticals–(Continued)
MGI Pharma, Inc.(a)	159,200	$	7,592,248
Pharmaceutical Resources, Inc.(a)	77,200		4,787,172
POZEN Inc.(a)	134,700		2,012,418
Valeant Pharmaceuticals International	331,400		7,781,272
			28,134,308
Property & Casualty Insurance–0.65%
United National Group, Ltd.–Class A (Cayman Islands)(a)	359,600		6,958,260
Publishing–0.60%
Getty Images, Inc.(a)	130,900		6,459,915
Regional Banks–3.61%
Greater Bay Bancorp	276,100		7,515,442
PrivateBancorp, Inc.	137,700		6,704,613
Silicon Valley Bancshares(a)	183,600		6,348,888
South Financial Group, Inc. (The)	153,000		4,542,570
Southwest Bancorp. of Texas, Inc.	223,700		8,404,409
Wintrust Financial Corp.	109,100		5,108,062
			38,623,984
Restaurants–0.75%
P.F. Chang’s China Bistro, Inc.(a)	103,200		4,778,160
Panera Bread Co.–Class A(a)	79,400		3,235,550
			8,013,710
Semiconductor Equipment–2.99%
Asyst Technologies, Inc.(a)	339,700		5,204,204
Cymer, Inc.(a)	195,700		8,612,757
MKS Instruments, Inc.(a)	348,200		8,231,448
Ultratech, Inc.(a)	71,000		2,063,260
Varian Semiconductor Equipment Associates, Inc.(a)	162,100		7,900,754
			32,012,423
Semiconductors–6.53%
Artisan Components, Inc.(a)	275,400		4,995,756
Conexant Systems, Inc.(a)	1,168,000		7,790,560
Integrated Silicon Solution, Inc.(a)	309,100		4,998,147
Lattice Semiconductor Corp.(a)	761,200		8,167,676
Microsemi Corp.(a)	219,600		6,686,820
Semtech Corp.(a)	366,300		9,131,859
Skyworks Solutions, Inc.(a)	528,400		5,648,596
Trident Microsystems, Inc.(a)	318,900		5,567,994
Vitesse Semiconductor Corp.(a)	989,100		8,160,075
Zoran Corp.(a)	454,700		8,721,146
			69,868,629

	Shares	Market Value
Specialty Stores–2.67%
Advance Auto Parts, Inc.(a)	202,400	$	7,877,408
Guitar Center, Inc.(a)	181,500		6,236,340
Linens ’n Things, Inc.(a)	199,600		5,760,456
PETCO Animal Supplies, Inc.(a)	274,400		8,701,224
			28,575,428
Steel–0.75%
Allegheny Technologies, Inc.	501,100		4,710,340
GrafTech International Ltd.(a)	269,500		3,352,580
			8,062,920
Systems Software–0.55%
Secure Computing Corp.(a)	345,900		5,932,185
Trucking–0.70%
Central Freight Lines, Inc.(a)	113,300		1,985,016
Overnite Corp.	245,800		5,508,378
			7,493,394
Wireless Telecommunication Services–1.31%
Nextel Partners, Inc.–Class A(a)	376,400		4,866,852
Western Wireless Corp.–Class A(a)	404,600		9,168,236
			14,035,088
Total Common Stocks & Other Equity Interests (Cost $785,138,313)			974,385,783
Money Market Funds–9.82%
INVESCO Treasurer’s Series Money Market Reserve Fund (Cost $105,114,375)(c)	105,114,375		105,114,375
TOTAL INVESTMENTS–100.82% (excluding investments purchased with cash collateral from securities loaned) (Cost $890,252,688)			1,079,500,158
Investments Purchased With Cash Collateral From Securities Loaned
Money Market Funds–4.14%
INVESCO Treasurer’s Series Money Market Reserve Fund(c)(d)	44,275,920		44,275,920
Total Money Market Funds (purchased with cash collateral from securities loaned) (Cost $44,275,920)			44,275,920
TOTAL INVESTMENTS–104.96% (Cost $934,528,608)			1,123,776,078
OTHER ASSETS LESS LIABILITIES–(4.96%)			(53,074,779	)
NET ASSETS–100.00%		$	1,070,701,299

Notes to Schedule of Investments:

(a) Non-income producing security.

(b) Security fair valued in accordance with the procedures established by the Board of Trustees.

(c) The money market fund and the Fund are affiliated by having the same investment advisor. See Note 3.

(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 the financial statements.

F-3

Statement of Assets and Liabilities

January 31, 2004

(Unaudited)

Assets:
Investments, at market value (cost $785,138,313)*	$	974,385,783
Investments in affiliated money market funds (cost $149,390,295)		149,390,295
Total investments (cost $934,528,608)		1,123,776,078
Receivables for:
Investments sold		22,046,950
Fund shares sold		1,682,134
Dividends		135,669
Investment for deferred compensation and retirement plans		103,677
Other assets		45,947
Total assets		1,147,790,455
Liabilities:
Payables for:
Investments purchased		26,096,163
Fund shares reacquired		4,677,874
Deferred compensation and retirement plans		122,978
Collateral upon return of securities loaned		44,275,920
Accrued distribution fees		245,170
Accrued trustees’ fees		1,824
Accrued transfer agent fees		1,510,298
Accrued operating expenses		158,929
Total liabilities		77,089,156
Net assets applicable to shares outstanding	$	1,070,701,299
Net assets consist of:
Shares of beneficial interest	$	1,506,868,846
Undistributed net investment income (loss)		(6,542,868	)
Undistributed net realized gain (loss) from investment securities and option contracts		(618,872,149	)
Unrealized appreciation of investment securities and option contracts		189,247,470
	$	1,070,701,299

Net Assets:
Class A	$	5,402,535
Class B	$	1,165,971
Class C	$	2,434,242
Class K	$	126,431,554
Investor Class	$	935,266,997
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		462,671
Class B		101,080
Class C		220,505
Class K		10,849,590
Investor Class		80,153,138
Class A:
Net asset value per share	$	11.68
Offering price per share:
(Net asset value of $11.68 ÷ 94.50%)	$	12.36
Class B:
Net asset value and offering price per share	$	11.54
Class C:
Net asset value and offering price per share	$	11.04
Class K:
Net asset value and offering price per share	$	11.65
Investor Class:
Net asset value and offering price per share	$	11.67

* At January 31, 2004, securities with an aggregate market value of $43,620,132 were on loan to brokers.

See accompanying notes which are an integral part of the financial statements.

F-4

Statement of Operations

For the six months ended January 31, 2004

(Unaudited)

Investment income:
Dividends	$	1,105,546
Dividends and interest from affiliates*		447,700
Total investment income		1,553,246
Expenses:
Advisory fees		3,432,408
Administrative services fees		242,678
Custodian fees		70,929
Distribution fees:
Class A		11,157
Class B		3,203
Class C		15,552
Class K		254,648
Investor Class		1,166,116
Transfer agent fees:
Class A		7,050
Class B		1,541
Class C		30,969
Class K		507,689
Investor Class		2,461,685
Trustees’ fees		15,002
Other		569,805
Total expenses		8,790,432
Less:  Fees waived, expenses reimbursed and expense offset arrangements		(764,620	)
Net expenses		8,025,812
Net investment income (loss)		(6,472,566	)
Realized and unrealized gain from investment securities and option contracts:
Net realized gain from:
Investment securities		127,070,449
Option contracts written		48,845
		127,119,294
Change in net unrealized appreciation of:
Investment securities		39,458,535
Option contracts written		36,301
		39,494,836
Net gain from investment securities and option contracts		166,614,130
Net increase in net assets resulting from operations	$	160,141,564

* Dividends from affiliated money market funds are net of fees paid to security lending counterparties.

See accompanying notes which are an integral part of the financial statements.

F-5

Statement of Changes in Net Assets

For the six months ended January 31, 2004 and the year ended July 31, 2003

(Unaudited)

	January 31, 2004			July 31, 2003
Operations:
Net investment income (loss)	$	(6,472,566	)	$	(8,216,081	)
Net realized gain (loss) from investment securities and option contracts		127,119,294			(68,052,955	)
Change in net unrealized appreciation of investment securities and option contracts		39,494,836			229,128,853
Net increase in net assets resulting from operations		160,141,564			152,859,817
Share transactions–net:
Class A		(2,066,190	)		3,071,872
Class B		669,335			288,316
Class C		131,742			50,289
Class K		14,441,971			14,773,347
Investor Class		(96,402,330	)		(47,990,339	)
Net increase (decrease) in net assets resulting from share transactions		(83,225,472	)		(29,806,515	)
Net increase in net assets		76,916,092			123,053,302
Net assets:
Beginning of period		993,785,207			870,731,905
End of period (including undistributed net investment income (loss) of $(6,542,868) and $(70,302) for 2004 and 2003, respectively)	$	1,070,701,299		$	993,785,207

See accompanying notes which are an integral part of the financial statements.

F-6

Notes to Financial Statements

January 31, 2004

(Unaudited)

NOTE 1—Significant Accounting Policies

INVESCO Small Company Growth Fund (the “Fund”) is a series portfolio of AIM Stock Funds (the “Trust”, formerly known as, INVESCO Stock Funds, Inc.). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of four separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The Fund currently offers multiple classes of shares. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund.

The Fund’s investment objective is to seek long-term capital growth. Each company listed in the Schedule of Investments is organized in the United States of America unless otherwise noted.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end, and as such, the net asset value for shareholder transactions may be different than the net asset value reported in these financial statements. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each security traded in the over-the-counter market (but not securities reported on the NASDAQ National Market System) is valued 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. Debt obligations (including convertible bonds) are valued on the basis of prices provided by an independent pricing service. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to special securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities for which market prices are not provided by any of the above methods are valued based upon quotes furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations, the mean between the last bid and asked prices. Securities for which market quotations are not readily available or are questionable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers in a manner specifically authorized 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. Short-term obligations having 60 days or less to maturity and commercial paper are valued at amortized cost which approximates market value. For purposes of determining net asset value per share, futures and option contracts generally will be valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are determined as of the close of the respective markets. 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 a development/event is so significant such that there is a reasonably high degree of certainty as to both the effect and the degree of effect that the development/event has actually caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Trustees. Adjustments to closing prices to reflect fair value on affected foreign securities may be provided by an 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.

B. Repurchase Agreements — Repurchase agreements purchased by the Fund are fully collateralized by securities issued by the U.S. Government, its agencies or instrumentalities and such collateral is in the possession of the Fund’s custodian. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. 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.

C. Securities Transactions and Investment Income —Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

F-7

D. Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to use a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E. Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) which is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. Any capital loss carryforwards listed are reduced for limitations, if any, to the extent required by the Internal Revenue Code.

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. 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.

H. Expenses — Each Class bears expenses incurred specifically on its behalf and, in addition, each Class bears a portion of general expenses, based on relative net assets of each Class.

NOTE 2—Advisory Fees and Other Fees Paid to

Affiliates

The Trust has entered into a master investment advisory agreement with A I M Advisors, Inc. (“AIM”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee based on the annual rate of the Fund’s average net assets as follows:

Average Net Assets	Rate
First $350 million	0.75	%
From $350 million to $700 million	0.65	%
From $700 million to $2 billion	0.55	%
From $2 billion to $4 billion	0.45	%
From $4 billion to $6 billion	0.40	%
From $6 billion to $8 billion	0.375	%
Over $8 billion	0.35	%

For the period November 25, 2003 through January 31, 2004, the Fund paid advisory fees to AIM of $1,260,314. Prior to November 25, 2003, the Trust had an investment advisory agreement with INVESCO Funds Group, Inc. (“IFG”). For the period August 1, 2003 through November 24, 2003, the Fund paid advisory fees to IFG of $2,172,094. AIM has entered into a sub-advisory agreement with INVESCO Institutional (N.A.), Inc. (“INVESCO”) whereby AIM pays INVESCO 40% of the fee paid by the Fund to AIM.

AIM has contractually agreed to limit total annual operating expenses for Class A, Class B, Class C and Class K shares to 2.10%, 2.75%, 2.75% and 2.20%, respectively and has voluntarily agreed to limit total annual operating expenses of Class A, Class B, Class C, Class K and Investor Class shares to 1.60%, 2.25%, 2.25%, 1.70% and 1.50%, respectively. The expense limitations exclude interest, taxes, fund merger and reorganization expenses, extraordinary items, including other items designated as such by the Board of Trustees and increases in expenses due to expense offset arrangements, if any. Voluntary fee waivers or reimbursements may be modified or discontinued at any time without further notice to investors after April 1, 2004 upon consultation with the Board of Trustees. Further, AIM has voluntarily agreed to waive advisory fees of the Fund in the amount of 25% of the advisory fee AIM receives from the affiliated money market funds on investments by the Fund in such affiliated money market funds (excluding investments made in money market funds with cash collateral from securities loaned by the Fund). For the six months ended January 31, 2004, AIM waived fees of $2,579.

For the period November 25, 2003 through January 31, 2004, AIM reimbursed transfer agency expenses of the Fund of $0, $331, $7,349, $30,131 and $0 for Class A, Class B, Class C, Class K and Investor Class shares, respectively. Prior to November 25, 2003, IFG reimbursed transfer agency expenses of the Fund of $0, $752, $21,625, $246,986 and $431,159 for Class A, Class B, Class C, Class K and Investor Class shares, respectively. For the period November 25, 2003 through January 31, 2004, AIM reimbursed other class-specific expenses of the Fund of $0, $4,538, $6,687, $0 and $0 for Class A, Class B, Class C, Class K and Investor Class shares, respectively. Prior to November 25, 2003, IFG did not reimburse other class-specific expenses of the Fund. For the period November 25, 2003 through January 31, 2004, AIM reimbursed fund level expenses of the Fund of $12,288. Prior to November 25, 2003, IFG did not reimburse fund level expenses of the Fund.

AIM is entitled to reimbursement from a Fund that has had fees and expenses absorbed pursuant to these arrangements if such reimbursements do not cause the Fund to exceed the then current expense limitations and the reimbursement is made within three years after AIM incurred the expense. At January 31, 2004, the reimbursement that may potentially be made by the

F-8

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates (continued)

Fund to AIM which will expire during the calendar year ended 2005 for Class A, Class B, Class C, Class K and Investor Class was $0, $519, $21,413, $730,404 and $1,052,315, respectively, expiring during the calendar year ended 2006 for Class A, Class B, Class C, Class K and Investor Class was $0, $4,027, $57,835, $541,288 and $611,424, respectively and expiring during the calendar year ended 2007 for Class A, Class B, Class C, Class K and Investor Class was $0, $4,847, $13,497, $26,098 and $86,868, respectively. During the six months ended January 31, 2004, the Fund reimbursed AIM for previously reimbursed Fund expenses of $237,348.

The Fund, pursuant to a master administrative services agreement with AIM, has agreed to pay AIM for certain administrative costs incurred in providing accounting services to the Fund. For the period November 25, 2003 through January 31, 2004, AIM was paid $115,545 for such services. Prior to November 25, 2003, the Trust had an administrative services agreement with IFG. For the period August 1, 2003 through November 24, 2003, IFG was paid $127,133 for such services.

The Fund, pursuant to a transfer agency and service agreement, has agreed to pay AIM Investment Services, Inc. (“AISI”), formerly known as A I M Fund Services, Inc., a fee for providing transfer agency and shareholder services to the Fund. Prior to October 1, 2003, the Trust had a transfer agency and service agreement with IFG. For the period August 1, 2003 through September 30, 2003, IFG retained $916,594 for such services. For the period October 1, 2003 through January 31, 2004, AISI retained $2,063,401 for such services.

The Trust has entered into a master distribution agreement with A I M Distributors, Inc. (“AIM Distributors”) to serve as the distributor for the Class A, Class B, Class C, Class K and Investor Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C, Class K and Investor Class shares (collectively the “Plans”). The Fund, pursuant to the Class A, Class B, Class C and Class K Plans, pays AIM Distributors compensation at the annual rate of 0.35% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.45% of the average daily net assets of Class K shares. Of these amounts, 0.25% of the average daily net assets of the Class A, Class B, Class C or Class K shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. NASD Rules also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. The Fund, pursuant to the Investor Class Plan, pays AIM Distributors for its actual expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of the Investor Class shares. Pursuant to the Plans, for the six months ended January 31, 2004, the Class A, Class B, Class C, Class K and Investor Class shares paid $11,157, $3,203, $15,552, $254,648 and $1,166,116, respectively.

Front-end sales commissions and contingent deferred sales charges (“CDSC”) (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the six months ended January 31, 2004 AIM Distributors retained $4,047 in front-end sales commissions from the sale of Class A shares and $0, $0, $33 and $0 from Class A, Class B, Class C and Class K shares, respectively, for CDSC imposed upon redemptions by shareholders.

Certain officers and trustees of the Trust are officers and directors of AIM, AISI, INVESCO and/or AIM Distributors.

NOTE 3—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 in affiliated money market funds and cash collateral from securities lending transactions in affiliated money market funds. Each day the prior day’s balance invested in the affiliated money market fund is redeemed in full and a new purchase amount is submitted to invest the current day’s available cash. The tables below show the transactions in and earnings from investments in affiliated money market funds for the period ended January 31, 2004.

Investments of Daily Available Cash Balances:

	Market Value 07/31/03		Purchases at Cost		Proceeds from Sales			Unrealized Appreciation (Depreciation)		Market Value 01/31/04		Dividend Income		Realized Gain (Loss)
INVESCO Treasurer’s Series Money Market Reserve Fund	$	35,000,000	$	523,742,542	$	(453,628,167	)	$	—	$	105,114,375	$	343,178	$	—

Investments of Cash Collateral from Securities Lending Transactions:

	Market Value 07/31/03		Purchases at Cost		Proceeds from Sales			Unrealized Appreciation (Depreciation)		Market Value 01/31/04		Dividend Income*		Realized Gain (Loss)
INVESCO Treasurer’s Series Money Market Reserve Fund	$	32,721,694	$	150,267,914	$	(138,713,688	)	$	—	$	44,275,920	$	84,275	$	—
Total	$	67,721,694	$	674,010,456	$	(592,341,855	)	$	—	$	149,390,295	$	427,453	$	—

* Dividend income is net of fees paid to security lending counterparties.

F-9

NOTE 4—Expense Offset Arrangements

Indirect expenses under expense offset arrangements are comprised of custodian credits resulting from periodic overnight cash balances at the custodian. For the six months ended January 31, 2004, the Fund received reductions in custodian fees of $195 under an expense offset arrangement, which resulted in a reduction of the Fund’s total expenses of $195.

NOTE 5—Trustees’ Fees

Trustees’ fees represent remuneration paid to each Trustee of the Trust who is not an “interested person” of AIM. Trustees have the option to defer compensation payable by the Trust. The Trustees deferring compensation have the option to select various AIM and INVESCO Funds in which their deferral accounts shall be deemed to be invested.

Current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees that also participate in a retirement plan and receive benefits under such plan.

During the six months ended January 31, 2004, the Fund paid legal fees of $906 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Borrowings

The Fund may participate in an interfund lending facility that AIM has established for temporary borrowings by the AIM Funds and the INVESCO Funds. An interfund loan will be made under this facility only if the loan rate (an average of the rate available on bank loans and the rate available on investments in overnight repurchase agreements) is favorable to both the lending fund and the borrowing fund. Under certain circumstances, a loan will be secured by collateral. To the extent that the loan is required to be

NOTE 6—Borrowings (continued)

secured by collateral, the collateral is marked to market daily to ensure that the market value is at least 102% of the outstanding principal value of the loan. The Fund did not borrow under the facility during the six months ended January 31, 2004.

Effective December 6, 2003, the Fund became a participant in an uncommitted unsecured revolving credit facility with State Street Bank and Trust Company (“SSB”). The Fund may borrow up to the lesser of (i) $125,000,000 or (ii) the limits set by its prospectus for borrowings. The Fund and other funds advised by AIM which are parties to the credit facility can borrow on a first come, first served basis. Principal on each loan outstanding shall bear interest at the bid rate quoted by SSB at the time of the request for the loan. The Fund did not borrow under the facility during the six months ended January 31, 2004.

The Fund had available a committed Redemption Line of Credit Facility (“LOC”), from a consortium of national banks, to be used for temporary or emergency purposes to meet redemption needs. The LOC permitted borrowings to a maximum of 10% of the net assets at value of the Fund. Each fund agreed to pay annual fees and interest on the unpaid principal balance based on prevailing market rates as defined in the agreement. The funds which were party to the LOC were charged a commitment fee of 0.10% on the unused balance of the committed line. The Fund did not borrow under the LOC during six months ended January 31, 2004. The LOC expired December 3, 2003.

Additionally the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (i) leave funds in the account so the custodian can be compensated by earning the additional interest; or (ii) compensate by paying the custodian bank. In either case, the custodian bank will be compensated an amount equal to the Federal Funds rate plus 100 basis points.

NOTE 7—Advances to Affiliates

Pursuant to an exemptive order from the SEC, the advisor established an interfund lending facility that the Fund may participate in for temporary borrowings by the other AIM and INVESCO Funds. An interfund loan will be made only if the loan rate is favorable to both parties. Advances were made to the following affiliated investment companies during the period:

Transactions During the Period
	Advances Outstanding 07/31/03		Increases in Advances to Affiliates		Decreases in Advances to Affiliates			Advances Outstanding 01/31/04		Average Advances to Affiliates		Interest Income
INVESCO Dynamics Fund	$	—	$	590,086,000	$	(590,086,000	)	$	—	$	3,206,989	$	19,532
INVESCO Growth & Income Fund		—		1,664,000		(1,664,000	)		—		9,044		52
INVESCO International Blue Chip Value Fund		—		1,014,000		(1,014,000	)		—		5,511		33
INVESCO Select Income Fund		—		3,710,000		(3,710,000	)		—		20,163		115
INVESCO VIF-High Yield Fund		—		10,877,000		(10,877,000	)		—		59,114		344
INVESCO VIF-Telecommunications Fund		—		5,378,000		(5,378,000	)		—		29,228		171
	$	—	$	612,729,000	$	(612,729,000	)	$	—	$	3,330,049	$	20,247

F-10

NOTE 8—Portfolio Securities Loaned

The Fund has entered into a securities lending agreement with SSB. Under the terms of the agreement, the Fund receives income, recorded monthly, after deduction of other amounts payable to SSB or to the borrower from lending transactions. In exchange for such fees, SSB is authorized to loan securities on behalf of the Fund, against receipt of collateral at least equal in value to the value of the securities loaned. Cash collateral is invested by SSB in an affiliated money market fund. The Fund bears the risk of any deficiency in the amount of collateral available for return to a borrower due to a loss in an approved investment.

At January 31, 2004, securities with an aggregate value of $43,620,132 were on loan to brokers. The loans were secured by cash collateral of $44,275,920 received by the Fund and subsequently invested in an affiliated money market fund. For the January 31, 2004 ended six months, the Fund received dividends on cash collateral net of fees paid to counterparties of $84,275 for securities lending transactions.

NOTE 9—Option Contracts Written

Transactions During the Period
	Call Option Contracts
	Number of Contracts		Premiums Received
Beginning of period	1,507		$	57,887
Closed	(1,507	)		(57,887	)
End of period	—		$	—

NOTE 10—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be updated at the Fund’s fiscal year-end.

The Fund has a capital loss carryforward for tax purposes which expires as follows:

Expiration	Capital Loss Carryforward
July 31, 2006	$	4,086,304
July 31, 2009		36,460,063
July 31, 2010		375,274,025
July 31, 2011		306,907,143
Total capital loss carryforward	$	722,727,535

NOTE 11—Investment Securities

The aggregate amount of investment securities (other than short-term securities and money market funds) purchased and sold by the Fund during the six months ended January 31, 2004 was $644,464,780 and $740,383,230, respectively.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	198,459,686
Aggregate unrealized (depreciation) of investment securities		(13,429,031	)
Net unrealized appreciation of investment securities	$	185,030,655
Cost of investments for tax purposes is $938,745,423.

F-11

NOTE 12—Share Information

The Fund currently offers five different classes of shares: Class A shares, Class B shares, Class C shares, Class K shares and Investor Class shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C shares are sold with CDSC. Class K shares and Investor Class shares are sold at net asset value. Under some circumstances, Class A shares and Class K shares are subject to CDSC. Generally, Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase.

Changes in Shares Outstanding
	Six months ended January 31, 2004					Year ended July 31, 2003
	Shares		Amount			Shares		Amount
Sold:
Class A	693,251		$	7,218,732		3,884,403		$	33,795,850
Class B	64,235			719,705		33,843			293,246
Class C	1,683,261			16,785,877		44,602,549			359,966,858
Class K	2,284,113			24,827,405		2,413,736			21,412,308
Investor Class	32,087,835			348,341,492		104,518,131			885,646,023
Automatic conversion of Class B shares to Class A shares:*
Class A	4			41		—			—
Class B	(4	)		(41	)	—			—
Reacquired:
Class A	(867,668	)		(9,284,963	)	(3,557,109	)		(30,723,978	)
Class B	(4,345	)		(50,329	)	(608	)		(4,930	)
Class C	(1,639,114	)		(16,654,135	)	(44,560,541	)		(359,916,569	)
Class K	(955,802	)		(10,385,434	)	(779,789	)		(6,638,961	)
Investor Class	(41,022,434	)		(444,743,822	)	(110,607,182	)		(933,636,362	)
	(7,676,668	)	$	(83,225,472	)	(4,052,567	)	$	(29,806,515	)

* Prior to the six months ended January 31, 2004, conversion of Class B shares to Class A shares were included in Class A shares sold and Class B shares reacquired.

NOTE 13—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Class A
	Six months ended January 31, 2004			Year ended July 31, 2003			March 28, 2002 (Date sales commenced) to July 31, 2002
Net asset value, beginning of period	$	10.00		$	8.41		$	11.25
Income from investment operations:
Net investment income (loss)		(0.07	)(a)		(0.01	)		(0.02	)(a)
Net gains (losses) on securities (both realized and unrealized)		1.75			1.60			(2.82	)
Total from investment operations		1.68			1.59			(2.84	)
Net asset value, end of period	$	11.68		$	10.00		$	8.41
Total return(b)		16.80	%		18.91	%		(25.24	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	5,403		$	6,372		$	2,607
Ratio of expenses to average net assets		1.55	%(c)		1.38	%		1.24	%(d)
Ratio of net investment income (loss) to average net assets		(1.26	)%(c)		(0.69	)%		(0.74	)%(d)
Portfolio turnover rate(e)		66	%		119	%		99	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $6,340,932.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-12

NOTE 13—Financial Highlights (continued)

	Class B
	Six months ended January 31, 2004			Year ended July 31, 2003			March 28, 2002 (Date sales commenced) to July 31, 2002
Net asset value, beginning of period	$	9.91		$	8.41		$	11.25
Income from investment operations:
Net investment income (loss)		(0.11	)(a)		(0.07	)		(0.04	)(a)
Net gains (losses) on securities (both realized and unrealized)		1.74			1.57			(2.80	)
Total from investment operations		1.63			1.50			(2.84	)
Net asset value, end of period	$	11.54		$	9.91		$	8.41
Total return(b)		16.45	%		17.84	%		(25.24	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	1,166		$	408		$	67
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		2.25	%(c)		2.25	%		2.14	%(d)
Without fee waivers and expense reimbursements		4.00	%(c)		4.00	%		2.14	%(d)
Ratio of net investment income (loss) to average net assets		(1.96	)%(c)		(1.61	)%		(1.68	)%(d)
Portfolio turnover rate(e)		66	%		119	%		99	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $637,135.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

	Class C
	Six months ended January 31, 2004			Year ended July 31,									February 14, 2000 (Date sales commenced) to July 31, 2000
				2003			2002			2001
Net asset value, beginning of period	$	9.49		$	8.09		$	12.54		$	18.37		$	20.68
Income from investment operations:
Net investment income (loss)		(0.10	)(a)		(0.18	)		(0.18	)(a)		(0.12	)		(0.00	)
Net gains (losses) on securities (both realized and unrealized)		1.65			1.58			(4.27	)		(4.78	)		(2.31	)
Total from investment operations		1.55			1.40			(4.45	)		(4.90	)		(2.31	)
Less distributions from net realized gains		—			—			—			(0.93	)		—
Net asset value, end of period	$	11.04		$	9.49		$	8.09		$	12.54		$	18.37
Total return(b)		16.33	%		17.45	%		(35.57	)%		(27.24	)%		(11.17	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	2,434		$	1,673		$	1,087		$	2,034		$	1,926
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		2.25	%(c)		2.25	%		2.25	%		2.13	%		1.83	%(d)
Without fee waivers and expense reimbursements		4.54	%(c)		3.55	%		2.70	%		2.13	%		1.83	%(d)
Ratio of net investment income (loss) to average net assets		(1.96	)%(c)		(1.73	)%		(1.81	)%		(1.12	)%		(0.91	)%(d)
Portfolio turnover rate(e)		66	%		119	%		99	%		112	%		186	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, does not include sales charges and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $3,093,494.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-13

NOTE 13—Financial Highlights (continued)

	Class K
	Six months ended January 31, 2004			Year ended July 31, 2003			December 14, 2001 (Date sales commenced) to July 31, 2002
Net asset value, beginning of period	$	9.99		$	8.43		$	11.76
Income from investment operations:
Net investment income (loss)		(0.08	)(a)		(0.01	)		(0.05	)(a)
Net gains (losses) on securities (both realized and unrealized)		1.74			1.57			(3.28	)
Total from investment operations		1.66			1.56			(3.33	)
Net asset value, end of period	$	11.65		$	9.99		$	8.43
Total return(b)		16.62	%		18.51	%		(28.32	)%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	126,432		$	95,105		$	66,451
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		1.70	%(c)		1.70	%		1.17	%(d)
Without fee waivers and expense reimbursements		2.19	%(c)		3.12	%		1.17	%(d)
Ratio of net investment income (loss) to average net assets		(1.41	)%(c)		(1.12	)%		(0.80	)%(d)
Portfolio turnover rate(e)		66	%		119	%		99	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $112,561,854.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

	Investor Class
	Six months ended January 31, 2004			Year ended July 31,												Two months ended July 31, 1999			Year ended May 31, 1999
				2003			2002			2001			2000
Net asset value, beginning of period	$	9.99		$	8.41		$	12.76		$	18.50		$	13.61		$	12.08		$	11.90
Income from investment operations:
Net investment income (loss)		(0.07	)(a)		(0.00	)		(0.01	)		(0.04	)(a)		(0.00	)		(0.00	)		(0.00	)
Net gains (losses) on securities (both realized and unrealized)		1.75			1.58			(4.34	)		(4.77	)		6.88			1.53			1.35
Total from investment operations		1.68			1.58			(4.35	)		(4.81	)		6.88			1.53			1.35
Less distributions from net realized gains		—			—			—			(0.93	)		(1.99	)		—			(1.17	)
Net asset value, end of period	$	11.67		$	9.99		$	8.41		$	12.76		$	18.50		$	13.61		$	12.08
Total return(b)		16.82	%		18.79	%		(34.09	)%		(26.53	)%		53.55	%		12.67	%		12.91	%
Ratios/supplemental data:
Net assets, end of period (000s omitted)	$	935,267		$	890,227		$	800,520		$	1,395,113		$	1,440,445		$	452,861		$	318,109
Ratio of expenses to average net assets:
With fee waivers and expense reimbursements		1.50	%(c)		1.50	%		1.45	%		1.29	%		1.20	%		1.50	%(d)		1.51	%(d)
Without fee waivers and expense reimbursements		1.59	%(c)		1.67	%		1.45	%		1.29	%		1.21	%		1.62	%(d)		1.59	%(d)
Ratio of net investment income (loss) to average net assets		(1.21	)%(c)		(0.94	)%		(1.01	)%		(0.28	)%		(0.34	)%		(0.69	)%(d)		(0.58	)%(d)
Portfolio turnover rate(e)		66	%		119	%		99	%		112	%		186	%		41	%		203	%

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and is not annualized for periods less than one year.

^(c) Ratios are annualized and based on average daily net assets of $927,822,545.

^(d) Annualized.

^(e) Not annualized for periods less than one year.

F-14

NOTE 14—Legal Proceedings

Your Fund’s investment advisor, A I M Advisors, Inc. (“AIM”), is an indirect wholly owned subsidiary of AMVESCAP PLC (“AMVESCAP”). Another indirect wholly owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. (“IFG”), was formerly the investment advisor to the INVESCO Funds. IFG continues to serve as the investment advisor to INVESCO Variable Investment Funds, Inc. (“IVIF”). On November 25, 2003, AIM succeeded IFG as the investment advisor to the INVESCO Funds other than IVIF.

The mutual fund industry as a whole is currently subject to a wide range of inquiries and litigation related to a wide range of issues, including issues of “market timing” and “late trading.” Both AIM and IFG are the subject of a number of such inquiries, as described below.

    A.    Regulatory Inquiries and Actions

        1.    IFG

On December 2, 2003 each of the Securities and Exchange Commission (“SEC”) and the Office of the Attorney General of the State of New York (“NYAG”) filed civil proceedings against IFG and Raymond R. Cunningham, in his capacity as the chief executive officer of IFG. Mr. Cunningham also currently holds the positions of Chief Operating Officer and Senior Vice President of A I M Management Group Inc. (the parent of AIM) and the position of Senior Vice President of AIM. In addition, on December 2, 2003, the State of Colorado filed civil proceedings against IFG. Neither the Fund nor any of the other AIM or INVESCO Funds has been named as a defendant in any of these proceedings.

The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds’ prospectuses and to the INVESCO Funds’ independent directors that IFG had entered into certain arrangements permitting market timing of the INVESCO Funds. The SEC is seeking injunctions, including permanent injunctions from serving as an investment advisor, officer or director of an investment company; an accounting of all market timing as well as certain fees and compensation received; disgorgement; civil monetary penalties; and other relief.

The NYAG and Colorado complaints make substantially similar allegations. The NYAG is seeking injunctions, including permanent injunctions from directly or indirectly selling or distributing shares of mutual funds; disgorgement of all profits obtained, including fees collected, and payment of all restitution and damages caused, directly or indirectly from the alleged illegal activities; civil monetary penalties; and other relief. The State of Colorado is seeking injunctions; restitution, disgorgement and other equitable relief, civil monetary penalties; and other relief.

In addition, IFG has received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing and other related issues concerning the INVESCO Funds. These regulators include the Florida Department of Financial Services, the Commissioner of Securities for the State of Georgia, the Office of the State Auditor for the State of West Virginia, the Office of the Secretary of State for West Virginia, the Department of Banking for the State of Connecticut and the Colorado Securities Division. IFG has also received more limited inquiries concerning related matters from the United States Department of Labor, NASD Inc. and the SEC, none of which directly bears upon the Fund. IFG is providing full cooperation with respect to these inquiries.

        2.    AIM

AIM has also received inquiries in the form of subpoenas or other oral or written requests for information from various regulators concerning market timing activity, late trading, fair value pricing, and related issues concerning the AIM Funds. AIM has received requests for information and documents concerning these and related matters from the SEC, the Massachusetts Secretary of the Commonwealth, the Office of the State Auditor for the State of West Virginia and the Department of Banking for the State of Connecticut. In addition, AIM has received subpoenas concerning these and related matters from the NYAG, the United States Attorney’s Office for the District of Massachusetts, the Commissioner of Securities for the State of Georgia and the Office of the Secretary of State for West Virginia. AIM has also received more limited inquiries from the SEC and NASD, Inc. concerning specific funds, entities and/or individuals, none of which directly bears upon the Fund. AIM is providing full cooperation with respect to these inquiries.

        3.    AMVESCAP Response

AMVESCAP is seeking to resolve both the pending regulatory complaints against IFG alleging market timing and the ongoing market timing investigations with respect to IFG and AIM. AMVESCAP recently found, in its ongoing review of these matters, that shareholders were not always effectively protected from the potential adverse impact of market timing and illegal late trading through intermediaries. These findings were based, in part, on an extensive economic analysis by outside experts who have been retained by AMVESCAP to examine the impact of these activities. In light of these findings, AMVESCAP has publicly stated that any AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities will receive full restitution. AMVESCAP has informed regulators of these findings. In addition, AMVESCAP has retained outside counsel to undertake a comprehensive review of AIM’s and IFG’s policies, procedures and practices, with the objective that they rank among the most effective in the fund industry.

There can be no assurance that AMVESCAP will be able to reach a satisfactory settlement with the regulators, or that any such settlement will not include terms which would have the effect of barring either or both of IFG and AIM, or any other investment advisor directly or indirectly owned by AMVESCAP, from serving as an investment advisor to any registered investment company including the Fund. The Fund has been informed by AIM that, if either of these results occurs, AIM will seek exemptive relief from the SEC to permit it to continue to serve as the Fund’s investment advisor. There can be no assurance that such exemptive relief will be granted. Any settlement with the regulators could also include terms which would bar Mr. Cunningham from serving as an officer or director of any registered investment company.

    B.    Private Actions

In addition to the complaints described above, multiple lawsuits, including purported class action and shareholder derivative suits, have been filed against various parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, A I M Management Group Inc., AMVESCAP, certain related entities and certain of their officers, including Mr. Cunningham). The allegations in the majority of the lawsuits are substantially similar to the allegations in the regulatory complaints against IFG described above. Certain other lawsuits allege that certain AIM and INVESCO Funds inadequately employed fair value pricing. Such lawsuits allege a variety of theories of recovery, including but not limited to: (i) violation of various provisions of the Federal and state securities laws; (ii)

F-15

NOTE 14—Legal Proceedings (continued)

violation of various provisions of the Employee Retirement Income Security Act (“ERISA”); (iii) breach of fiduciary duty; and (iv) breach of contract. The lawsuits have been filed in both Federal and state courts and seek such remedies as compensatory damages; restitution; rescission; accounting for wrongfully gotten gains, profits and compensation; injunctive relief; disgorgement; equitable relief; various corrective measures under ERISA; recission of certain Funds’ advisory agreements with AIM; declaration that the advisory agreement is unenforceable or void; refund of advisory fees; interest; and attorneys’ and experts’ fees.

IFG has removed certain of the state court proceedings to Federal District Court. The Judicial Panel on Multidistrict Litigation (the “Panel”) has ruled that all actions alleging market timing throughout the mutual fund industry should be transferred to the United States District Court for the District of Maryland for coordinated pre-trial proceedings. Twelve actions filed against IFG have been conditionally transferred to the Panel in Maryland, and IFG and AIM anticipate that all other market timing actions that may be filed or that are already pending against IFG and/or AIM will be transferred to the Panel as well.

Additional lawsuits or regulatory actions arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the Fund, IFG, AIM, AMVESCAP and related entities and individuals in the future.

As a result of these developments, investors in the AIM and INVESCO Funds might react by redeeming their investments. This might require the Funds to sell investments to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the Funds.

At the present time, management of AIM and the Fund is unable to estimate the impact, if any, that the outcome of the matters described above may have on the Fund or AIM.

F-16

Proxy Results (Unaudited)

A Special Meeting of Shareholders of INVESCO Small Company Growth Fund, (“Fund”) a portfolio of AIM Stock Funds (formerly INVESCO Stock Funds, Inc. and AIM Stock Funds, Inc.), (“Company”), a Delaware statutory trust, was held on October 21, 2003. The meeting was adjourned and reconvened on October 28, 2003, on November 4, 2003 and reconvened on November 11, 2003. The meeting was held for the following purposes:

(1)* To elect sixteen individuals to the Board, each of whom will serve until his or her successor is elected and qualified: Bob R. Baker, Frank S. Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J. Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S. Sklar, Larry Soll, Ph D. and Mark H. Williamson.

(2) To approve a new Investment Advisory Agreement with A I M Advisors, Inc.

(3) To approve a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc.

(4)* To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.

The results of the voting on the above matters were as follows:

	Trustees/Matter	Votes For	Withholding Authority
(1)*	Bob R. Baker	362,405,144	19,855,030
	Frank S. Bayley	362,437,628	19,822,546
	James T. Bunch	362,488,718	19,771,456
	Bruce L. Crockett	362,515,953	19,744,221
	Albert R. Dowden	362,455,376	19,804,798
	Edward K. Dunn, Jr.	362,445,962	19,814,212
	Jack M. Fields	362,484,095	19,776,079
	Carl Frischling	362,371,394	19,888,780
	Robert H. Graham	362,402,926	19,857,248
	Gerald J. Lewis	362,263,534	19,996,640
	Prema Mathai-Davis	362,317,138	19,943,036
	Lewis F. Pennock	362,372,299	19,887,875
	Ruth H. Quigley	362,270,092	19,990,082
	Louis S. Sklar	362,404,051	19,856,123
	Larry Soll, Ph.D	362,452,103	19,808,071
	Mark H. Williamson	362,227,445	20,032,729

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(2)	Approval of a new Investment Advisory Agreement with A I M Advisors, Inc.	52,026,488	712,302	905,199
(3)	Approval of a new Sub-Advisory Agreement between A I M Advisors, Inc. and INVESCO Institutional (N.A.), Inc	52,025,431	797,211	821,347
(4)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	302,828,268	16,875,556	62,556,350	**

A Special Meeting of Shareholders of the Company noted above was reconvened on October 28, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	326,477,030	18,532,333	62,801,232	**

F-17

Proxy Results (Unaudited) (continued)

A Special Meeting of Shareholders of the Company noted above was reconvened on November 4, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	To approve an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	345,396,965	18,782,801	62,618,399	**

A Special Meeting of Shareholders of the Company noted above was reconvened on November 11, 2003. At the reconvened meeting the following matter was then considered:

	Matter	Votes For	Votes Against	Withheld/ Abstentions
(1)*	Approval of an Agreement and Plan of Reorganization which provides for the redomestication of Company as a Delaware statutory trust and, in connection therewith, the sale of all of Company’s assets and the dissolution of Company as a Maryland corporation.	354,789,002	19,165,807	57,283,120	**

* Proposal required approval by a combined vote of all the portfolios of AIM Stock Funds.

** Includes Broker Non-Votes

F-18

OTHER INFORMATION

Trustees and Officers

Board of Trustees	Officers	Office of the Fund
Bob R. Baker Frank S. Bayley James T. Bunch Bruce L. Crockett Albert R. Dowden Edward K. Dunn, Jr. Jack M. Fields Carl Frischling Robert H. Graham Gerald J. Lewis Prema Mathai-Davis Lewis F. Pennock Ruth H. Quigley Louis S. Sklar Larry Soll, Ph.D. Mark H. Williamson	Robert H. Graham Chairman and President Raymond R. Cunningham Executive Vice President Mark H. Williamson Executive Vice President Kevin M. Carome Senior Vice President and Chief Legal Officer Sidney M. Dilgren Vice President and Treasurer Robert G. Alley Vice President Stuart W. Coco Vice President Melville B. Cox Vice President Karen Dunn Kelley Vice President Edgar M. Larsen Vice President	11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Investment Advisor A I M Advisors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173 Sub-Advisor INVESCO Institutional (N.A.), Inc. One Midtown Plaza 1360 Peachtree Street, N.E. Suite 100 Atlanta, GA 30309 Transfer Agent A I M Investment Services, Inc. P.O. Box 4739 Houston, TX 77210-4739 Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110 Counsel to the Fund Ballard Spahr Andrews & Ingersoll, LLP 1735 Market Street Philadelphia, PA 19103-7599 Counsel to the Trustees Kramer, Levin, Naftalis & Frankel LLP 919 Third Avenue New York, NY 10022-3852 Distributor A I M Distributors, Inc. 11 Greenway Plaza Suite 100 Houston, TX 77046-1173

Domestic Equity

AIM Aggressive Growth Fund

AIM Balanced Fund*

AIM Basic Balanced Fund*

AIM Basic Value Fund

AIM Blue Chip Fund

AIM Capital Development Fund

AIM Charter Fund

AIM Constellation Fund

AIM Dent Demographic Trends Fund

AIM Diversified Dividend Fund¹

AIM Emerging Growth Fund

AIM Large Cap Basic Value Fund

AIM Large Cap Growth Fund

AIM Libra Fund

AIM Mid Cap Basic Value Fund

AIM Mid Cap Core Equity Fund

AIM Mid Cap Growth Fund

AIM Opportunities I Fund

AIM Opportunities II Fund

AIM Opportunities III Fund

AIM Premier Equity Fund

AIM Select Equity Fund

AIM Small Cap Equity Fund²

AIM Small Cap Growth Fund³

AIM Trimark Endeavor Fund

AM Trimark Small Companies Fund

AIM Weingarten Fund

INVESCO Core Equity Fund

INVESCO Dynamics Fund

INVESCO Mid-Cap Growth Fund

INVESCO Small Company Growth Fund

INVESCO S&P 500 Index Fund

INVESCO Total Return Fund*

*Domestic equity and income fund

International/Global Equity

AIM Asia Pacific Growth Fund

AIM Developing Markets Fund

AIM European Growth Fund

AIM European Small Company Fund

AIM Global Aggressive Growth Fund

AIM Global Growth Fund

AIM Global Trends Fund⁵

AIM Global Value Fund⁶

AIM International Emerging Growth Fund

AIM International Growth Fund

AIM Trimark Fund

INVESCO International Core Equity Fund

Sector Equity

AIM Global Health Care Fund

AIM Real Estate Fund

INVESCO Advantage Health Sciences Fund

INVESCO Energy Fund

INVESCO Financial Services Fund

INVESCO Gold & Precious Metals Fund

INVESCO Health Sciences Fund

INVESCO Leisure Fund

INVESCO-Multi Sector Fund

INVESCO Technology Fund

INVESCO Utilities Fund

Consider the investment objectives, risks, and charges and expenses carefully. For this and other important information about AIM and INVESCO funds, obtain a prospectus from your financial advisor or AIMinvestments.com and read it thoroughly before investing.

Fixed Income

TAXABLE

AIM Floating Rate Fund

AIM HighYield Fund

AIM Income Fund

AIM Intermediate Government Fund

AIM Limited Maturity Treasury Fund

AIM Money Market Fund

AIM ShortTerm Bond Fund

AlMTotal Return Bond Fund

INVESCO U.S. Government Money Fund

TAX-FREE

AIM High Income Municipal Fund

AIM Municipal Bond Fund

AIM Tax-Exempt Cash Fund

AIM Tax-Free Intermediate Fund

Effective May 2, 2003, AIM Large Cap Core Equity Fund was renamed AIM Diversified Dividend Fund. ²As of the close of business on February 27, 2004, AIM Mid Cap Core Equity Fund is available to new investors on a limited basis. For information on who may continue to invest in AIM Mid Cap Core Equity Fund, please contact your financial advisor. ³AIM Small Cap Equity Fund was closed to most investors on December 19, 2003. For information on who may continue to invest in AIM Small Cap Equity Fund, please contact your financial advisor. ⁴AIM Small Cap Growth Fund was closed to most investors on March 18, 2002. For information on who may continue to invest in AIM Small Cap Growth Fund, please contact your financial advisor. ⁵Effective March 31, 2004, AIM Global Trends Fund was renamed AIM Global Equity Fund. ⁶Effective April 30, 2003, AIM Worldwide Spectrum Fund was renamed AIM Global Value Fund. ⁷Effective November 24, 2003, INVESCO International Blue Chip Value Fund was renamed INVESCO International Core Equity Fund.

If used after April, 2004, this brochure must be accompanied by a fund Performance & Commentary or by an AIM Quarterly Performance Review for the most recent quarter-end. Mutual funds distributed by A I M Distributors, Inc.

A I M Management Group Inc. has provided leadership in the investment management industry since 1976 and manages $149 billion in assets for approximately 11 million shareholders, including individual investors, corporate clients and financial institutions. AIM is a subsidiary of AMVESCAP PLC, one of the world’s largest independent financial services companies with $371 billion in assets under management. Data as of December 31, 2003.

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ITEM 2. CODE OF ETHICS FOR FINANCIAL OFFICERS.

Not applicable for semi-annual reports.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable for semi-annual reports.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable for semi-annual reports.

ITEM 5. LISTED COMPANIES AUDIT COMMITTEE MEMBERS.

Not applicable.

ITEM 6. [RESERVED]

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There has been a material change to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees. The Registrant, formerly a Maryland corporation, was redomesticated as a Delaware statutory trust on November 24, 2003. As a Maryland corporation, the Registrant did not have such procedures in place. As part of the process of redomesticating as a Delaware statutory trust, the Registrant adopted new bylaws which include procedures that shareholders of the Registrant must follow in recommending nominees to the Registrant’s Board of Trustees (the “Board”). Pursuant to the Registrant’s current bylaws, any shareholder may submit names of individuals to be considered by the Registrant’s Governance Committee or the Board, as applicable, provided: (i) that such person submits such names in a timely manner in compliance with the notice provisions set forth in the bylaws; (ii) that such person was a shareholder of record at the time of submission of such names and is entitled to vote at the meeting of shareholders at which trustees will be elected; and (iii) that the Governance Committee or the Board, as applicable, shall make the final determination of persons to be nominated.

Notice provisions set forth in the Registrant’s current bylaws require that any shareholder desiring to nominate a person for election as trustee at a shareholder meeting that has been called for the purpose of electing one or more trustees must submit to the secretary of the Registrant the nomination in writing at not later than the close of business on the later of the 90^th day prior to such shareholder meeting or the tenth day following the day on which public announcement is made of the shareholder meeting and not earlier than the close of business on the 120^th day prior to the shareholder meeting. The notice must set forth: (i) as to each person whom the shareholder proposes to nominate for election or reelection as a trustee all information relating to such person that is required to be disclosed in solicitations of proxies for election of trustees in an election contest, or is otherwise required, in each case pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a trustee if elected); and (ii) as to the shareholder giving the notice and the beneficial owner, if any, on whose behalf the nomination is made: (a) the name and address of such shareholder, as they appear on the Registrant’s books, and of such beneficial owner; and (b) the number of shares of each series portfolio of the Registrant which are owned of record or beneficially by such shareholder and such beneficial owner.

The Registrant also adopted Shareholder Communication Procedures (the “Procedures”) on December 10, 2003. The Procedures are intended to set forth the process by which shareholders of the Registrant may send communications to the Board. If a shareholder sends a recommendation of a nominee to the Board or to an individual trustee, such communication would be covered by the Procedures; provided, however, that shareholder proposals submitted pursuant to Rule 14a-8 under the 1934 Act, and communications made in connection with such proposals are not subject to the Procedures.

Pursuant to the Procedures, shareholders should send their communications to Ivy B. McLemore, First Vice President Corporate Communications. Communications made to Mr. McLemore may be communicated by telephone, e-mail or regular mail to the following address: (713) 214-1904, ivy.mclemore@aiminvestments.com, A I M Management Group Inc., 11 Greenway Plaza, Suite 100, Houston, TX 77046. All shareholder communications received by Mr. McLemore shall be promptly forwarded to the individual trustee of the Registrant to whom they were addressed or to the full Board, as applicable. Copies of all shareholder communications will also be distributed to the Chairs of each of the Registrant’s Audit Committee, Governance Committee, Investments Committee and Valuation Committee, to counsel for the Registrant and to counsel for the independent trustees of the Registrant. Counsel for the Registrant, upon receipt of their copy of a shareholder communication, shall work with such Chairs and counsel for the independent trustees to determine whether such shareholder communication should be distributed to any trustees to whom it was not sent and whether and in what manner the trustees should respond to such shareholder communication. Responses, if any, to shareholder communications shall be coordinated by counsel for the Registrant, working with the Chairs and counsel for the independent trustees.

ITEM 10. CONTROLS AND PROCEDURES.

(a) As of March 22, 2004, an evaluation was performed under the supervision and with the participation of the officers of AIM Variable Insurance Funds (the “Registrant”), including the Principal Executive Officer (“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 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of March 22, 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 of Form N-CSR 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 go 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 half-year (the Registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. However, changes in certain other controls have been implemented during such time period, involving such things as trade monitoring, fair value pricing, revising trading guidelines, and establishing redemption fees on trades in certain funds, which could affect the Registrant.

ITEM 11. EXHIBITS.

11	(a)(1)	Not applicable for semi-annual reports.
11	(a)(2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940.
11	(a)(3)	Not applicable.
11	(b)	Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AIM Stock Funds

By:	/s/ ROBERT H. GRAHAM
	Robert H. Graham Principal Executive Officer

Date: April 8, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ ROBERT H. GRAHAM
	Robert H. Graham Principal Executive Officer

Date: April 8, 2004

By:	/s/ SIDNEY M. DILGREN
	Sidney M. Dilgren Principal Financial Officer

Date: April 8, 2004

EXHIBIT INDEX

11	(a)(1)	Not applicable for semi-annual reports.
11	(a)(2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940.
11	(a)(3)	Not applicable.
11	(b)	Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002.