<PAGE> 1
AIM FLOATING RATE FUND
SUPPLEMENT DATED OCTOBER 1, 1999
TO THE PROSPECTUS DATED MAY 3, 1999
The following replaces in its entirety the fifth paragraph under the heading
"INVESTMENT OBJECTIVE AND POLICIES" on page 6 of the prospectus:
"The Portfolio may invest up to 20% of its total assets in any
of the following: (a) senior floating rate loans made and notes
issued on an unsecured basis to Borrowers that meet the credit
standards established by AIM and the Sub-advisor ("Unsecured
Corporate Loans" and "Unsecured Corporate Debt Securities"); (b)
secured or unsecured short-term debt obligations including, but
not limited to, U.S. Government and Government agency securities
(some of which may not be backed by the full faith and credit of
the United States), money market instruments (such as
certificates of deposit and bankers' acceptances), corporate and
commercial obligations (such as commercial paper and medium-term
notes) and repurchase agreements, none of which are required to
be secured but all of which will be (or the securities of
counterparties associated therewith will be) investment grade
(i.e., rated Baa, P-3 or higher by Moody's or BBB, A-3 or higher
by Standard & Poor's or, if unrated, determined to be of
comparable quality in the judgment of the Sub-advisor); (c)
fixed rate obligations of U.S. or non-U.S. companies that meet
the credit standards established by AIM and the Sub-advisor and
that the Portfolio expects to swap for a floating rate
structure; or (d) cash or cash equivalents, except that the
Portfolio, pursuant to an exemptive order granted by the SEC,
may invest up to 25% of its total assets in shares of money
market investment companies advised by AIM or its affiliates
("Affiliated Money Market Funds"). In general, a purchase of
investment company securities may result in the duplication of
fees and expenses. With respect to the Portfolio's purchase of
shares of Affiliated Money Market Funds, the Portfolio will
indirectly pay the advisory fees and other operating expenses of
the Affiliated Money Market Funds. Securities rated Baa, BBB,
P-3 or A-3 are considered to have adequate capacity for payment
of principal and interest, but are more susceptible to adverse
economic conditions and, in the case of securities rated BBB or
Baa (or comparable unrated securities), have speculative
characteristics. Such securities or cash will not exceed 20% of
the Portfolio's total assets except (i) during interim periods
pending investment of the net proceeds of public offerings of
the Fund's securities, (ii) pending reinvestment of proceeds of
the sale of a security, and (iii) during temporary defensive
periods when, in the opinion of the Sub-advisor, suitable
Corporate Loans and Corporate Debt Securities are not available
for investment by the Portfolio or prevailing market or economic
conditions warrant. During such periods, the Portfolio may also
invest up to 25% of its total assets in Affiliated Money Market
Funds. Investments in Unsecured Corporate Loans and Unsecured
Corporate Debt Securities will be made on the same basis as
investments in Corporate Loans and Corporate Debt Securities as
described herein, except with respect to collateral
requirements. To a limited extent, incidental to and in
connection with its lending activities, the Portfolio also may
acquire warrants and other equity securities."
