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ADVISOR CLASS SHARES OF
AIM GLOBAL TRENDS FUND
(A SERIES PORTFOLIO OF AIM SERIES TRUST)
Supplement dated October 1, 1999
To the Statement of Additional Information dated August 27, 1999
The following paragraph replaces in its entirety the paragraph appearing under
the heading "INVESTMENT STRATEGIES AND RISKS -- OTHER INVESTMENT PRACTICES
OF THE FUND -- INVESTMENTS IN OTHER INVESTMENT COMPANIES" on page 6 of the
Statement of Additional Information:
"The Fund may invest in other investment companies to the extent
permitted by the 1940 Act, rules and regulations thereunder, and any
applicable exemptive orders granted by the SEC. To the extent that the Fund
invests in such investment companies, the prices paid by the Fund and the
proceeds to the Fund upon sale of the shares may reflect premiums above or
discounts to the net asset value of the assets owned by such investment
companies. Under an exemptive order granted by the SEC, the Fund is
permitted to, and intends to, invest its cash (and cash collateral received
in connection with the lending of portfolio securities) in shares of money
market investment companies advised by AIM or its affiliates ("Affiliated
Money Market Funds"), provided that those investments do not exceed 25% of
the total assets of the Fund. In general, a purchase of investment company
securities may result in the duplication of fees and expenses. With respect
to the Fund's purchase of shares of Affiliated Money Market Funds, the Fund
will indirectly pay the advisory fees and other operating expenses of the
Affiliated Money Market Funds."
The following paragraph replaces in its entirety the paragraph under the heading
"INVESTMENT STRATEGIES AND RISKS -- PRIMARY INVESTMENT PRACTICES OF THE FUND
- -- TEMPORARY DEFENSIVE STRATEGIES" on page 10 of the Statement of Additional
Information:
"In anticipation of or in response to adverse market conditions,
for cash management purposes, or for defensive purposes, the Fund may
temporarily hold all or a portion of its assets in cash, (U.S. dollars,
foreign currency or multinational currency units) money market
instruments, or high-quality debt securities. The Fund may also invest up
to 25% of its total assets in Affiliated Money Market Funds for these
purposes. To the extent the Fund employs a temporary defensive strategy,
it will not be invested so as to achieve directly its investment
objectives. Money market instruments in which the Fund may invest
include, but are not limited to, United States government securities;
high-grade commercial paper; bank certificates of deposit; bankers'
acceptances and repurchase agreements related to any of the foregoing.
"High-grade commercial paper" refers to commercial paper rated A-1 by
Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P"),
or P-1 by Moody's Investors Service, Inc. ("Moody's") or, if not rated,
determined by AIM to be of comparable quality."
The following is added as a new section before the heading "EXECUTION OF
PORTFOLIO TRANSACTIONS -- PORTFOLIO TURNOVER" on page 33 of the Statement of
Additional Information:
"ALLOCATION OF INITIAL PUBLIC OFFERING ("IPO") SECURITIES TRANSACTIONS
From time to time, certain of the mutual funds managed by AIM or A I M
Capital Management, Inc. (collectively, the "AIM Funds") may become
interested in participating in security distributions that are available in
an IPO, and occasions may arise when purchases of such securities by one
AIM Fund may also be considered for purchase by one or more other AIM
Funds. In such cases, it shall be AIM's practice to specifically combine or
otherwise bunch indications of interest for IPO securities for all AIM
Funds participating in purchase transactions for that security, and to
allocate such transactions in accordance with the following procedures:
AIM will determine the eligibility of each AIM Fund that seeks to
participate in a particular IPO by reviewing a number of factors, including
suitability of the investment with the AIM Fund's investment objective,
policies and strategies, the liquidity of the AIM Fund if such investment
is purchased, and whether the portfolio manager intends
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to hold the security as a long-term investment. The allocation of limited
supply securities issued in IPOs will be made to eligible AIM Funds in a
manner designed to be fair and equitable for the eligible AIM Funds, and so
that there is equal allocation of IPOs over the longer term. Where multiple
funds are eligible, rotational participation may occur, based on the extent
to which an AIM Fund has participated in previous IPOs as well as the size
of the AIM Fund. Each eligible AIM Fund with an asset level of less than
$500 million will be placed in one of three tiers, depending upon its asset
level. The AIM Funds in the tier containing funds with the smallest asset
levels will participate first, each receiving a 40 basis point allocation
(rounded to the nearest share round lot that approximates 40 basis points)
(the "Allocation"), based on that AIM Fund's net assets. This process
continues until all of the AIM Funds in the three tiers receive their
Allocations, or until the shares are all allocated. Should securities
remain after this process, eligible AIM Funds will receive their
Allocations on a straight pro rata basis. For the tier of AIM Funds not
receiving a full Allocation, the Allocation may be made only to certain AIM
Funds so that each may receive close to or exactly 40 basis points.
Any AIM Funds with substantially identical investment objectives and
policies will participate in syndicates in amounts that are substantially
proportionate to each other. In these cases, the net assets of the largest
AIM Fund will be used to determine in which tier, as described in the
paragraph above, such group of AIM Funds will be placed. The price per
share of securities purchased in such syndicate transactions will be the
same for each AIM Fund."
The following new paragraph is added after the third paragraph under the section
entitled "INVESTMENT RESULTS -- PERFORMANCE INFORMATION" on page 52 of the
Statement of Additional Information:
"The Fund may participate in the IPO market, and a significant portion
of the Fund's return may be attributable to its investment in IPOs, which
have a magnified impact due to the Fund's small asset base. There is no
guarantee that as the Fund's assets grow, it will continue to experience
substantially similar performance by investing in IPOs."
The following replaces in its entirety the table appearing under the heading
"MANAGEMENT - TRUSTEES AND EXECUTIVE OFFICERS" on page 34 of the Statement of
Additional Information:
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POSITIONS HELD WITH
"NAME, ADDRESS AND AGE REGISTRANT PRINCIPAL OCCUPATION DURING AT LEAST THE PAST 5 YEARS
- --------------------------- ------------------- -----------------------------------------------------
<S> <C> <C>
*ROBERT H. GRAHAM (52) Trustee, Chairman Director, President and Chief Executive Officer,
of the Board and A I M Management Group Inc.; Director and
President President, A I M Advisors, Inc.; Director and
Senior Vice President, A I M Capital Management,
Inc., A I M Distributors, Inc., A I M Fund Services,
Inc. and Director, AMVESCAP PLC.
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C. DEREK ANDERSON (58) Trustee President, Plantagenet Capital Management, LLC (an
220 Sansome Street investment partnership); Chief Executive Officer,
Suite 400 Plantagenet Holdings, Ltd. (an investment banking
San Francisco, CA 94104 firm); Director, Anderson Capital Management, Inc.
since 1988; Director, Premium Wear, Inc. (formerly
Munsingwear, Inc.) (a casual apparel company); and
Director, 'R' Homes, Inc. and various other privately
owned companies.
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</TABLE>
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* A trustee who is an "interested person" of the Trust and AIM as
defined in the 1940 Act.
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<TABLE>
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POSITIONS HELD WITH
"NAME, ADDRESS AND AGE REGISTRANT PRINCIPAL OCCUPATION DURING AT LEAST THE PAST 5 YEARS
- --------------------------- ------------------- -----------------------------------------------------
<S> <C> <C>
FRANK S. BAYLEY (60) Trustee Partner, law firm of Baker & McKenzie; Trustee, The
Two Embarcadero Center Bradley Funds; and Director and Chairman, C. D.
Suite 2400 Stimson Company (a private investment company) and
San Francisco, CA 94111 Stimson Marina, Inc. (a subsidiary of C.D. Stimson
Co.).
- --------------------------- ------------------- -----------------------------------------------------
RUTH H. QUIGLEY (64) Trustee Private investor; and President, Quigley Friedlander &
1055 California Street Co., Inc. (a financial advisory services firm) from
San Francisco, CA 94108 1984 to 1986.
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MELVILLE B. COX (55) Vice President Vice President and Chief Compliance Officer, A I M
Advisors, Inc., A I M Capital Management, Inc., A I M
Distributors, Inc., A I M Fund Services, Inc. and
Fund Management Company.
- --------------------------- ------------------- -----------------------------------------------------
GARY T. CRUM (52) Vice President Director and President, A I M Capital Management,
Inc.; Director and Executive Vice President, A I M
Management Group Inc. and A I M Advisors, Inc.; and
Director, A I M Distributors, Inc. and AMVESCAP PLC.
- --------------------------- ------------------- -----------------------------------------------------
CAROL F. RELIHAN (44) Vice President Director, Senior Vice President, General Counsel and
Secretary, A I M Advisors, Inc.; Senior Vice
President, General Counsel and Secretary, A I M
Management Group Inc.; Director, Vice President and
General Counsel, Fund Management Company; Vice
President and General Counsel, A I M Fund Services,
Inc.; and Vice President, A I M Capital Management,
Inc. and A I M Distributors, Inc.
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SAMUEL D. SIRKO (40) Vice President and Assistant General Counsel and Assistant Secretary of
Secretary A I M Management Group, Inc., A I M Capital Management,
Inc., A I M Distributors, Inc., A I M Fund Services,
Inc., and Fund Management Company; and Vice President,
Assistant General Counsel and Assistant Secretary of
A I M Advisors, Inc.
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DANA R. SUTTON (40) Vice President and Vice President and Fund Controller, A I M Advisors,
Treasurer Inc.; and Assistant Vice President and Assistant
Treasurer, Fund Management Company."
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