<PAGE> 1
AIM EQUITY FUNDS, INC.
AIM CHARTER FUND
AIM WEINGARTEN FUND
AIM CONSTELLATION FUND
Supplement dated August 15, 1997
to the Prospectus dated August 4, 1997
The following replaces in its entirety the Financial Highlights information
contained on pages 6, 8 and 10 of the above-referenced prospectus:
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Shown below for the periods indicated are per share data, ratios and
supplemental data (collectively, "data") for the Class A and Class B shares of
each of the Funds. The data for Class A and Class B shares for the six-month
period ended April 30, 1997, is unaudited. The data with respect to Class A
shares of CHARTER for the fiscal years ended October 31, 1996, 1995 and 1994,
has been audited by KPMG Peat Marwick LLP, independent auditors, whose
unqualified report thereon appears in the Statement of Additional Information.
The data with respect to Class A shares of CHARTER for the seven years ended
October 31, 1993, has been audited by Tait, Weller & Baker, independent
auditors. The data with respect to Class A shares of WEINGARTEN and
CONSTELLATION for each of the years in the eight year period ended October 31,
1996, the ten months ended October 31, 1988 and the year ended December 31, 1987
has been audited by KPMG Peat Marwick LLP, independent auditors, whose
unqualified report thereon appears in the Statement of Additional Information.
The data with respect to Class B shares of CHARTER and WEINGARTEN for the period
June 26, 1995 through October 31, 1995 and the fiscal year ended October 31,
1996 has been audited by KPMG Peat Marwick LLP, independent auditors, whose
unqualified report thereon appears in the Statement of Additional Information.
Class C shares of the Funds commenced operations on August 4, 1997.
(PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
AIM CHARTER FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
APRIL 30, -----------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 11.19 $ 10.63 $ 8.90 $ 9.46 $ 8.36 $ 8.42 $ 6.55
Income from investment
operations:
Net investment income.......... 0.06 0.19 0.15 0.21 0.17 0.18 0.18
Net gains (losses) on
securities (both realized and
unrealized).................. 0.93 1.43 2.11 (0.45) 1.22 0.16 2.15
---------- ---------- ---------- ---------- ---------- ---------- --------
Total from investment
operations................... 0.99 1.62 2.26 (0.24) 1.39 0.34 2.33
---------- ---------- ---------- ---------- ---------- ---------- --------
Less distributions:
Dividends from net investment
income....................... (0.08) (0.16) (0.20) (0.16) (0.29) (0.17) (0.15)
Distributions from capital
gains........................ (0.63) (0.90) (0.33) (0.16) -- (0.23) (0.31)
---------- ---------- ---------- ---------- ---------- ---------- --------
Total distributions............ (0.71) (1.06) (0.53) (0.32) (0.29) (0.40) (0.46)
---------- ---------- ---------- ---------- ---------- ---------- --------
Net asset value, end of
period......................... $ 11.47 $ 11.19 $ 10.63 $ 8.90 $ 9.46 $ 8.36 $ 8.42
========== ========== ========== ========== ========== ========== ========
Total return(a)................. 9.31% 16.70% 27.03% (2.55)% 16.92% 4.17% 37.65%
========== ========== ========== ========== ========== ========== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted)..................... $2,948,273 $2,647,208 $1,974,417 $1,579,074 $1,690,482 $1,256,151 $443,546
========== ========== ========== ========== ========== ========== ========
Ratio of expenses to average
net assets................... 1.10%(b)(c) 1.12% 1.17% 1.17% 1.17% 1.17% 1.29%
========== ========== ========== ========== ========== ========== ========
Ratio of net investment income
to average net assets........ 0.98%(b) 1.81% 1.55% 2.32% 1.89% 2.14% 2.14%
========== ========== ========== ========== ========== ========== ========
Portfolio turnover rate........ 95% 164% 161% 126% 144% 95% 144%
========== ========== ========== ========== ========== ========== ========
Average broker commission
rate(d)...................... $ 0.0628 $ 0.0638 N/A N/A N/A N/A N/A
========== ========== ========== ========== ========== ========== ========
<CAPTION>
YEAR ENDED OCTOBER 31,
--------------------------------------
1990 1989 1988 1987
-------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 6.97 $ 5.40 $ 6.61 $ 8.18
Income from investment
operations:
Net investment income.......... 0.18 0.21 0.15 0.09
Net gains (losses) on
securities (both realized and
unrealized).................. 0.08 1.55 0.16 0.35
-------- ------- ------- -------
Total from investment
operations................... 0.26 1.76 0.31 0.44
-------- ------- ------- -------
Less distributions:
Dividends from net investment
income....................... (0.26) (0.19) (0.12) (0.14)
Distributions from capital
gains........................ (0.42) -- (1.40) (1.87)
-------- ------- ------- -------
Total distributions............ (0.68) (0.19) (1.52) (2.01)
-------- ------- ------- -------
Net asset value, end of
period......................... $ 6.55 $ 6.97 $ 5.40 $ 6.61
======== ======= ======= =======
Total return(a)................. 3.86% 33.68% 5.90% 6.72%
======== ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s
omitted)..................... $102,499 $70,997 $65,799 $82,756
======== ======= ======= =======
Ratio of expenses to average
net assets................... 1.35% 1.35% 1.46% 1.15%
======== ======= ======= =======
Ratio of net investment income
to average net assets........ 2.51% 3.73% 2.83% 1.57%
======== ======= ======= =======
Portfolio turnover rate........ 215% 131% 247% 225%
======== ======= ======= =======
Average broker commission
rate(d)...................... N/A N/A N/A N/A
======== ======= ======= =======
</TABLE>
- ---------------
(a) Does not deduct sales charges and are not annualized for periods less than
one year.
(b) Ratios are annualized and based on average net assets of $2,885,632,617.
(c) Ratio includes indirectly paid expenses. Excluding indirectly paid expenses,
the ratio of expenses to average net assets would have been 1.09%.
(d) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
1
<PAGE> 2
AIM WEINGARTEN FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
APRIL 30, ----------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 20.19 $ 20.33 $ 17.82 $ 17.62 $ 16.68 $ 15.76 $ 11.15
Income from investment operations:
Net investment income............. -- 0.06 -- 0.07 0.10 0.10 0.11
Net gains (losses) on securities
(both realized and
unrealized)..................... 1.04 2.51 4.36 0.57 0.93 0.98 4.80
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations...................... 1.04 2.57 4.36 0.64 1.03 1.08 4.91
---------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment
income.......................... (0.06) -- (0.07) (0.11) (0.09) (0.07) (0.09)
Distributions from net realized
capital gains................... (2.24) (2.71) (1.78) (0.33) -- (0.09) (0.21)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total distributions............... (2.30) (2.71) (1.85) (0.44) (0.09) (0.16) (0.30)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period..... $ 18.93 $ 20.19 $ 20.33 $ 17.82 $ 17.62 $ 16.68 $ 15.76
========== ========== ========== ========== ========== ========== ==========
Total return(c).................... 5.67% 14.81% 28.20% 3.76% 6.17% 6.85% 44.88%
========== ========== ========== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000s
omitted)........................ $5,014,448 $4,977,493 $4,564,730 $3,965,858 $4,999,983 $5,198,835 $2,534,331
========== ========== ========== ========== ========== ========== ==========
Ratio of expenses to average net
assets(d)....................... 1.11%(e)(f) 1.12% 1.17% 1.21% 1.13% 1.13% 1.18%
========== ========== ========== ========== ========== ========== ==========
Ratio of net investment income to
average net assets(h)........... 0.03%(e) 0.33% (0.02)% 0.45% 0.62% 0.60% 0.72%
========== ========== ========== ========== ========== ========== ==========
Portfolio turnover rate........... 68% 159% 139% 136% 109% 37% 46%
========== ========== ========== ========== ========== ========== ==========
Average brokerage commission
rate(i)......................... $ 0.0622 $ 0.0615 N/A N/A N/A N/A N/A
========== ========== ========== ========== ========== ========== ==========
Borrowings for the period:
Amount of debt outstanding at end
of period....................... -- -- -- -- -- -- --
Average amount of debt outstanding
during the period(j)............ -- -- $ 593,789 -- -- -- --
Average number of shares
outstanding during the period
(000s omitted)(j)............... 264,280 248,189 229,272 249,351 314,490 246,273 102,353
Average amount of debt per share
during the period............... -- -- $ 0.0026 -- -- -- --
<CAPTION>
OCTOBER 31, DECEMBER
----------------------------------- 31,
1990 1989 1988(a) 1987(b)
-------- ---------- ---------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 12.32 $ 9.23 $ 8.36 $ 8.82
Income from investment operations:
Net investment income............. 0.09 0.10 0.07 0.07
Net gains (losses) on securities
(both realized and
unrealized)..................... (0.56) 3.10 0.80 0.83
-------- ---------- ---------- --------
Total from investment
operations...................... (0.47) 3.20 0.87 0.90
-------- ---------- ---------- --------
Less distributions:
Dividends from net investment
income.......................... (0.06) (0.11) -- (0.09)
Distributions from net realized
capital gains................... (0.64) -- -- (1.27)
-------- ---------- ---------- --------
Total distributions............... (0.70) (0.11) -- (1.36)
-------- ---------- ---------- --------
Net asset value, end of period..... $ 11.15 $ 12.32 $ 9.23 $ 8.36
======== ========== ========== ========
Total return(c).................... (4.03)% 35.13% 10.41% 9.75%
======== ========== ========== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted)........................ $632,522 $ 393,320 $ 297,284 $286,453
======== ========== ========== ========
Ratio of expenses to average net
assets(d)....................... 1.25% 1.19% 1.08%(g) 0.95%
======== ========== ========== ========
Ratio of net investment income to
average net assets(h)........... 0.75% 0.96% 0.90%(g) 0.66%
======== ========== ========== ========
Portfolio turnover rate........... 79% 87% 93% 108%
======== ========== ========== ========
Average brokerage commission
rate(i)......................... N/A N/A N/A N/A
======== ========== ========== ========
Borrowings for the period:
Amount of debt outstanding at end
of period....................... -- $3,781,000 -- $355,000
Average amount of debt outstanding
during the period(j)............ $485,359 $1,082,551 $ 228,587 $509,259
Average number of shares
outstanding during the period
(000s omitted)(j)............... 44,770 31,275 33,031 25,825
Average amount of debt per share
during the period............... $ .011 $ .035 $ .007 $ .020
</TABLE>
- ---------------
(a) The Fund changed investment advisors on September 30, 1988.
(b) Per share information has been restated to reflect a 2 for 1 stock split,
effected in the form of a dividend, on September 29, 1987.
(c) Does not deduct sales charges and, for periods less than one year, total
returns are not annualized.
(d) After waiver of fees and/or expense reimbursements. Ratios of expenses to
average net assets prior to waiver of fees and/or expense reimbursements
were 1.14%(annualized), 1.15%, 1.19%, 1.24%, 1.17% and 1.15% for the periods
1997-1992, respectively.
(e) Ratios are annualized and based on average net assets of $5,167,944,740.
(f) Includes indirectly paid expenses. Excluding indirectly paid expenses, the
ratio of expenses to average net assets would have remained the same.
(g) Annualized.
(h) After waiver of fees and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to waiver of fees and/or expense
reimbursements were 0.00% (annualized), 0.30%, (0.04)%, 0.42%, 0.58% and
0.58% for the periods 1997-1992, respectively.
(i) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
(j) Averages computed on a daily basis.
2
<PAGE> 3
AIM CONSTELLATION FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
APRIL 30, -------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
---------- ----------- ---------- ---------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 25.48 $ 23.69 $ 18.31 $ 17.04 $ 13.25 $ 11.72 $ 6.59
Income from investment operations:
Net investment income (loss)...... (0.05) (0.06) (0.05) (0.02) (0.04) (0.04) (0.03)
Net gains (losses) on securities
(both realized and
unrealized)..................... (0.54) 2.60 5.95 1.29 3.83 1.76 5.16
---------- ----------- ---------- ---------- ---------- ------- ---------
Total from investment
operations...................... (0.59) 2.54 5.90 1.27 3.79 1.72 5.13
---------- ----------- ---------- ---------- ---------- ------- ---------
Less distributions:
Dividends from net investment
income.......................... -- -- -- -- -- -- --
Distributions from capital
gains........................... (0.89) (0.75) (0.52) -- -- (0.19) --
---------- ----------- ---------- ---------- ---------- ------- ---------
Total distributions............... (0.89) (0.75) (0.52) -- -- (0.19) --
---------- ----------- ---------- ---------- ---------- ------- ---------
Net asset value, end of period..... $ 24.00 $ 25.48 $ 23.69 $ 18.31 $ 17.04 $ 13.25 $ 11.72
========== =========== ========== ========== ========== ======= =========
Total return(c).................... (2.41)% 11.26% 33.43% 7.45% 28.60% 14.82% 77.85%
========== =========== ========== ========== ========== ======= =========
Ratios/supplemental data:
Net assets, end of period (000s
omitted)........................ $11,505,286 $11,255,506 $7,000,350 $3,726,029 $2,756,497 $966,472 $ 342,835
========== =========== ========== ========== ========== ======= =========
Ratio of expenses to average net
assets(d)....................... 1.12%(e)(f) 1.14% 1.16% 1.20% 1.22% 1.21% 1.35%
========== =========== ========== ========== ========== ======= =========
Ratio of net investment income
(loss) to average net
assets(h)....................... (0.37)%(e) (0.27)% (0.32)% (0.15)% (0.31)% (0.42)% (0.41)%
========== =========== ========== ========== ========== ======= =========
Portfolio turnover rate........... 33% 58% 45% 79% 70% 62% 109%
========== =========== ========== ========== ========== ======= =========
Average broker commission
rate(i)......................... 0.0588 $ 0.0596 N/A N/A N/A N/A N/A
========== =========== ========== ========== ========== ======= =========
Borrowings for the period:
Amount of debt outstanding at end
of period (000s omitted)........ -- -- -- -- -- -- --
Average amount of debt outstanding
during the period(j)............ -- -- -- -- -- -- --
Average number of shares
outstanding during the period
(000s omitted)(j)............... 468,998 381,030 244,731 182,897 124,101 55,902 21,205
Average amount of debt per share
during the period............... -- -- -- -- -- -- --
<CAPTION>
OCTOBER 31,
--------------------------------- DECEMBER 31,
1990 1989 1988(a) 1987(b)
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 9.40 $ 7.34 $ 6.35 $ 10.58
Income from investment operations:
Net investment income (loss)...... (0.03) 0.01 (0.03) (0.05)
Net gains (losses) on securities
(both realized and
unrealized)..................... (1.23) 2.46 1.02 0.36
--------- --------- --------- ----------
Total from investment
operations...................... (1.26) 2.47 0.99 0.31
--------- --------- --------- ----------
Less distributions:
Dividends from net investment
income.......................... (0.01) -- -- --
Distributions from capital
gains........................... (1.54) (0.41) -- (4.54)
--------- --------- --------- ----------
Total distributions............... (1.55) (0.41) -- (4.54)
--------- --------- --------- ----------
Net asset value, end of period..... $ 6.59 $ 9.40 $ 7.34 $ 6.35
========= ========= ========= ==========
Total return(c).................... (16.17)% 35.50% 15.59% 2.85%
========= ========= ========= ==========
Ratios/supplemental data:
Net assets, end of period (000s
omitted)........................ $ 83,304 $ 74,731 $ 78,272 $ 71,418
========= ========= ========= ==========
Ratio of expenses to average net
assets(d)....................... 1.37% 1.36% 1.30(g) 1.11%
========= ========= ========= ==========
Ratio of net investment income
(loss) to average net
assets(h)....................... (0.44)% 0.07% (0.57)%(g) (0.41)%
========= ========= ========= ==========
Portfolio turnover rate........... 192% 149% 131% 135%
========= ========= ========= ==========
Average broker commission
rate(i)......................... N/A N/A N/A N/A
========= ========= ========= ==========
Borrowings for the period:
Amount of debt outstanding at end
of period (000s omitted)........ -- $ 9,610 $ 5,266 $ 109
Average amount of debt outstanding
during the period(j)............ $2,344,356 $2,608,721 $2,147,733 $2,365,545
Average number of shares
outstanding during the period
(000s omitted)(j)............... 11,397 10,050 10,845 9,668
Average amount of debt per share
during the period............... $ 0.21 $ 0.26 $ 0.20 $ 0.24
</TABLE>
- ---------------
(a) The Fund changed investment advisors on September 30, 1988.
(b) Per share information has been restated to reflect a 2 for 1 stock split,
effected in the form of a dividend, on June 19, 1987.
(c) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(d) Ratios of expenses prior to waiver of advisory fees are 1.14% (annualized),
1.16%, 1.18% and 1.21% for the years 1997-1994, respectively.
(e) Ratios are annualized and based on average net assets of $11,958,901,203.
(f) Ratio includes indirectly paid expenses. Excluding indirectly paid
expenses, the ratio of expenses to average net assets would have remained
the same.
(g) Annualized.
(h) Ratios of net investment income (loss) prior to waiver of advisory fees are
(0.39)% (annualized), (0.29)%, (0.34)% and (0.16)% for the years 1997-1994,
respectively.
(i) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
(j) Averages computed on a daily basis.
3
