<PAGE> 1
AIM AGGRESSIVE GROWTH FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Aggressive Growth Fund (the fund),
voted to request shareholders to approve the following items that will affect
the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
the clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future);
- Changing the fund's fundamental investment restrictions. The proposed
revisions to the fund's fundamental investment restrictions are
described in a supplement to the fund's statement of additional
information; and
- Changing the fund's investment objective and making it
non-fundamental. The investment objective of the fund would be changed
by deleting references to the types of securities that the fund will
purchase to achieve its objective. If the investment objective of the
fund becomes non-fundamental, it can be changed in the future by the
Board of Directors of the company without further approval by
shareholders. Pursuant to this proposal, the fund's investment
objective would read: "The fund's investment objective is to achieve
long-term growth of capital."
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
<PAGE> 2
AIM BLUE CHIP FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Blue Chip Fund (the fund), voted to
request shareholders to approve the following items that will affect the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
the clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future);
- Changing the fund's fundamental investment restrictions. The proposed
revisions to the fund's fundamental investment restrictions are
described in a supplement to the fund's statement of additional
information; and
- Changing the fund's investment objective so that it is
non-fundamental. If the investment objective of the fund becomes
non-fundamental, it can be changed in the future by the Board of
Directors of the company without further approval by shareholders.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
<PAGE> 3
AIM CAPITAL DEVELOPMENT FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Capital Development Fund (the fund),
voted to request shareholders to approve the following items that will affect
the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
the clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future);
- Changing the fund's fundamental investment restrictions. The proposed
revisions to the fund's fundamental investment restrictions are
described in a supplement to the fund's statement of additional
information; and
- Changing the fund's investment objective so that it is
non-fundamental. If the investment objective of the fund becomes
non-fundamental, it can be changed in the future by the Board of
Directors of the company without further approval by shareholders.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
<PAGE> 4
AIM CHARTER FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Charter Fund (the fund), voted to
request shareholders to approve the following items that will affect the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future); and
- Changing the fund's fundamental investment restrictions. The proposed
revisions to the fund's fundamental investment restrictions are
described in a supplement to the fund's statement of additional
information.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
At the February 3, 2000 meeting of the company's Board, the Directors also
approved the following investment policy change, which is effective immediately.
The second paragraph under the heading "INVESTMENT OBJECTIVES AND STRATEGIES" on
page 1 of the prospectus is hereby deleted in its entirely, and is replaced with
the following:
"The fund seeks to meet these objectives by investing at least 65% of its
total assets in securities of established companies that have long-term
above-average growth in earnings and dividends, and growth companies that
the portfolio managers believe have the potential for above-average growth
in earnings and dividends. The portfolio managers consider whether to sell
a particular security when they believe the security no longer has that
potential. The fund may also invest up to 20% of its total assets in
foreign securities."
<PAGE> 5
AIM CONSTELLATION FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Constellation Fund (the fund), voted
to request shareholders to approve the following items that will affect the
fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future); and
- Changing the fund's fundamental investment restrictions. The proposed
revisions to the fund's fundamental investment restrictions are
described in a supplement to the fund's statement of additional
information.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
<PAGE> 6
AIM DENT DEMOGRAPHIC TRENDS FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Dent Demographic Trends Fund (the
fund), voted to request shareholders to approve the following items that will
affect the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust; and
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
the clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future).
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
<PAGE> 7
AIM LARGE CAP BASIC VALUE FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000,
as supplemented February 1, 2000
This supplement supersedes and replaces in its entirety the supplement dated
February 1, 2000.
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Large Cap Basic Value Fund (the
fund), voted to request shareholders to approve the following items that will
affect the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust; and
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
the clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future).
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
Currently, only Class A shares of the fund are available to investors.
Class B shares and Class C shares of the fund are not currently available.
Investors may purchase Class A shares of the fund through exchanges from other
AIM Funds, as well as through automatic dividend reinvestment from another AIM
Fund.
<PAGE> 8
AIM LARGE CAP GROWTH FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Large Cap Growth Fund (the fund),
voted to request shareholders to approve the following items that will affect
the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
the clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future); and
- Changing the fund's fundamental investment restrictions. The proposed
revisions to the fund's fundamental investment restrictions are
described in a supplement to the fund's statement of additional
information.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
<PAGE> 9
AIM MID CAP GROWTH FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Mid Cap Growth Fund (the fund),
voted to request shareholders to approve the following items that will affect
the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust; and
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
the clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future).
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
<PAGE> 10
AIM WEINGARTEN FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the company), on behalf of AIM Weingarten Fund (the fund), voted to
request shareholders to approve the following items that will affect the fund:
- An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- A new advisory agreement between the company and A I M Advisors, Inc.
(AIM). The principal changes to the advisory agreement are (i) the
deletion of references to the provision of administrative services and
certain expense limitations that are no longer applicable, and (ii)
clarification of provisions relating to delegations of
responsibilities and the non-exclusive nature of AIM's services. The
revised advisory agreement does not change the fees paid by the fund
(except that the agreement permits the fund to pay a fee to AIM in
connection with any new securities lending program implemented in the
future); and
- Changing the fund's fundamental investment restrictions. The proposed
revisions to the fund's fundamental investment restrictions are
described in a supplement to the fund's statement of additional
information.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be entitled
to vote at the meeting. Proposals that are approved are expected to become
effective on or about May 26, 2000.
At the February 3, 2000 meeting of the company's Board, the Directors also
approved a change in the fund's investment objective. The change would delete
references to the types of securities that the fund will purchase to achieve its
objective. Pursuant to this change, which will become effective on or about May
26, 2000, the fund's investment objective will read: "The fund's investment
objective is to provide growth of capital."
<PAGE> 11
RETAIL CLASSES OF
AIM AGGRESSIVE GROWTH FUND
AIM BLUE CHIP FUND
AIM CAPITAL DEVELOPMENT FUND
AIM CHARTER FUND
AIM CONSTELLATION FUND
AIM DENT DEMOGRAPHIC TRENDS FUND
AIM LARGE CAP BASIC VALUE FUND
AIM LARGE CAP GROWTH FUND
AIM MID CAP GROWTH FUND
AIM WEINGARTEN FUND
(SERIES PORTFOLIOS OF AIM EQUITY FUNDS, INC.)
Supplement dated February 4, 2000
to the Statement of Additional Information dated January 6, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM Equity
Funds, Inc. (the "Company"), on behalf of its series portfolios (the "Funds"),
voted to request shareholder approval to amend the Funds' fundamental investment
restrictions. The Board of Directors has called a meeting of the Fund's
shareholders to be held on or about May 3, 2000. Only shareholders of record as
of February 18, 2000 are entitled to vote at the meeting. Proposals that are
approved are expected to become effective on or about May 26, 2000.
If shareholders approve the proposal to amend the Funds' fundamental investment
restrictions, each of the AIM Aggressive Growth Fund, AIM Blue Chip Fund, AIM
Capital Development Fund, AIM Charter Fund, AIM Constellation Fund, AIM Large
Cap Growth Fund and AIM Weingarten Fund will operate under the following
fundamental investment restrictions:
Each Fund is subject to the following investment restrictions, which may be
changed only by a vote of a majority of such Fund's outstanding shares:
(a) the Fund is a "diversified company" as defined in the 1940 Act.
The Fund will not purchase the securities of any issuer if, as a result,
the Fund would fail to be a diversified company within the meaning of the
1940 Act, and the rules and regulations promulgated thereunder, as such
statute, rules and regulations are amended from time to time or are
interpreted from time to time by the SEC staff (collectively, the 1940 Act
laws and interpretations) or except to the extent that the Fund may be
permitted to do so by exemptive order or similar relief (collectively, with
the 1940 Act laws and interpretations, the 1940 Act laws, interpretations
and exemptions). In complying with this restriction, however, the Fund may
purchase securities of other investment companies to the extent permitted
by the 1940 Act laws, interpretations and exemptions.
(b) the Fund may not borrow money or issue senior securities, except
as permitted by the 1940 Act laws, interpretations and exemptions.
(c) the Fund may not underwrite the securities of other issuers. This
restriction does not prevent the Fund from engaging in transactions
involving the acquisition, disposition or resale of its portfolio
securities, regardless of whether the Fund may be considered to be an
underwriter under the Securities Act of 1933.
(d) the Fund will not make investments that will result in the
concentration (as that term may be defined or interpreted by the 1940 Act
laws, interpretations and exemptions) of its investments in the securities
of issuers primarily engaged in the same industry. This restriction does
not limit the Fund's investments in (i) obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities or (ii) tax-exempt
obligations
1
<PAGE> 12
issued by governments or political subdivisions of governments. In
complying with this restriction, the Fund will not consider a bank-issued
guaranty or financial guaranty insurance as a separate security.
(e) the Fund may not purchase real estate or sell real estate unless
acquired as a result of ownership of securities or other instruments. This
restriction does not prevent the Fund from investing in issuers that
invest, deal, or otherwise engage in transactions in real estate or
interests therein, or investing in securities that are secured by real
estate or interests therein.
(f) the Fund may not purchase physical commodities or sell physical
commodities unless acquired as a result of ownership of securities or other
instruments. This restriction does not prevent the Fund from engaging in
transactions involving futures contracts and options thereon or investing
in securities that are secured by physical commodities.
(g) the Fund may not make personal loans or loans of its assets to
persons who control or are under common control with the Fund, except to
the extent permitted by 1940 Act laws, interpretations and exemptions. This
restriction does not prevent the Fund from, among other things, purchasing
debt obligations, entering into repurchase agreements, loaning its assets
to broker-dealers or institutional investors, or investing in loans,
including assignments and participation interests.
(h) the Fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company with substantially the same
fundamental investment objectives, policies and restrictions as the Fund.
The investment restrictions set forth above provide the Funds with the ability
to operate under new interpretations of the 1940 Act or pursuant to exemptive
relief from the SEC without receiving prior shareholder approval of the change.
Even though the Funds have this flexibility, the Board of Directors has adopted
internal guidelines for each Fund relating to certain of these restrictions
which the adviser must follow in managing the Funds. Any changes to these
guidelines, which are set forth below, require the approval of the Board of
Directors.
1. In complying with the fundamental restriction regarding issuer
diversification, the Fund will not, with respect to 75% of its total
assets, purchase securities of any issuer (other than securities
issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities), if, as a result, (i) more than 5% of the Fund's
total assets would be invested in the securities of that issuer, or
(ii) the Fund would hold more than 10% of the outstanding voting
securities of that issuer. The Fund may (i) purchase securities of
other investment companies as permitted by Section 12(d)(1) of the
1940 Act and (ii) invest its assets in securities of other money
market funds and lend money to other investment companies and their
series portfolios that have AIM as an investment adviser, subject to
the terms and conditions of any exemptive orders issued by the SEC.
2. In complying with the fundamental restriction regarding borrowing
money and issuing senior securities, the Fund may borrow money in an
amount not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). The Fund may
borrow from banks, broker/dealers or other investment companies or
their series portfolios that have AIM or an affiliate of AIM as an
investment advisor (an AIM Fund). Other than AIM Constellation Fund,
the Fund may not borrow for leveraging, but may borrow for temporary
or emergency purposes, in anticipation of or in response to adverse
market conditions, or for cash management purposes. Other than AIM
Constellation Fund, the Fund may not purchase additional securities
when any borrowings from banks exceed 5% of the Fund's total assets.
3. In complying with the fundamental restriction regarding industry
concentration, the Fund may invest up to 25% of its total assets in
the securities of issuers whose principal business activities are in
the same industry.
4. In complying with the fundamental restriction with regard to making
loans, the Fund may lend up to 33 1/3% of its total assets and may
lend money to another AIM Fund, on such terms and conditions as the
SEC may require in an exemptive order.
2
<PAGE> 13
5. Notwithstanding the fundamental restriction on investing all of the
Fund's assets in an open-end fund, the Fund may not invest all of its
assets in the securities of a single open-end management investment
company with the same fundamental investment objectives, policies and
limitations as the Fund.
If a percentage restriction is adhered to at the time of investment, a later
change in percentage resulting from changes in values of assets will not be
considered a violation of the restriction.
Effective immediately, the following new section is added after the second
paragraph appearing under the heading "INVESTMENT STRATEGIES AND RISKS -
BORROWING" on page 20 of the Statement of Additional Information:
"EQUITY-LINKED DERIVATIVES
Each Fund may invest in equity-linked derivative products designed to
replicate the composition and performance of particular indices. Examples
of such products include S&P Depositary Receipts ("SPDRs"), World Equity
Benchmark Series ("WEBs"), NASDAQ 100 tracking shares ("QQQs"), Dow Jones
Industrial Average Instruments ("DIAMONDS") and Optomised Portfolios as
Listed Securities ("OPALS"). Investments in equity-linked derivatives
involve the same risks associated with a direct investment in the types of
securities included in the indices such products are designed to track.
There can be no assurance that the trading price of the equity-linked
derivatives will equal the underlying value of the basket of securities
purchased to replicate a particular index or that such basket will
replicate the index. Investments in equity-linked derivatives may
constitute investment in other investment companies. See "Investment in
Other Investment Companies.""
Effective immediately, the following paragraph replaces in its entirety the
paragraph appearing under the heading "INVESTMENT STRATEGIES AND RISKS -
INVESTMENT IN OTHER INVESTMENT COMPANIES" on page 20 of the Statement of
Additional Information:
"Each of the Funds may invest in other investment companies to the
extent permitted by the 1940 Act, and rules and regulations thereunder, and
if applicable, exemptive orders granted by the SEC. The following
restrictions apply to investments in other investment companies other than
Affiliated Money Market Funds (defined below): (i) a Fund may not purchase
more than 3% of the total outstanding voting stock of another investment
company; (ii) a Fund may not invest more than 5% of its total assets in
securities issued by another investment company; and (iii) a Fund may not
invest more than 10% of its total assets in securities issued by other
investment companies other than Affiliated Money Market Funds. With respect
to a Fund's purchase of shares of another investment company, including
Affiliated Money Market Funds, the Fund will indirectly bear its
proportionate share of the advisory fees and other operating expenses of
such investment company. The Funds have obtained an exemptive order from
the SEC allowing them to invest in money market funds that have AIM or an
affiliate of AIM as an investment adviser (the "Affiliated Money Market
Funds"), provided that investments in Affiliated Money Market Funds do not
exceed 25% of the total assets of such Fund. With respect to a Fund's
purchase of shares of the Affiliated Money Market Funds, the Fund will
indirectly pay the advisory fees and other operating expenses of the
Affiliated Money Market Funds."
Currently, only Class A shares of AIM Large Cap Basic Value Fund are available
to investors.
Class B shares and Class C shares of AIM Large Cap Basic Value Fund are not
currently available.
Investors may purchase Class A shares of AIM Large Cap Basic Value Fund through
exchanges from other AIM Funds, as well as through automatic dividend
reinvestment from another AIM Fund.
3
