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INSTITUTIONAL CLASSES OF
AIM CHARTER FUND
AIM CONSTELLATION FUND
AIM WEINGARTEN FUND
(SERIES PORTFOLIOS OF AIM EQUITY FUNDS)
Supplement dated November 7, 2000 to
the Statement of Additional Information dated June 21, 2000,
as supplemented June 30, 2000 and July 5, 2000
This supplement supercedes and replaces in its entirety the supplement dated
June 30, 2000 and July 5, 2000.
Effective November 28, 2000, A I M Distributors, Inc. ("AIM Distributors"),
P.O. Box 4739, Houston Texas 77210-4739, will act as the exclusive distributor
of shares of the Institutional Class. AIM Distributors will provide all
services that were previously provided by FMC which includes the payment of
promotional expenses, including the incremental costs of printing prospectuses
and statements of additional information, annual reports and other periodic
reports for distribution to persons who are not shareholders of the
Institutional Classes of the Funds and the costs of preparing and distributing
any other supplemental sales literature. AIM Distributors may, from time to
time, at its expense, pay a bonus or other consideration or incentive to
dealers or banks who sell a minimum dollar amount of the shares of the
Institutional Class of a Fund during a specific period of time. A complete
description of all services that will be provided appears under the caption
"The Distributor" on page 33 in the Statement of Additional Information.
The following paragraph replaces in its entirety the tenth full paragraph
appearing under the heading "INVESTMENT ADVISORY AND OTHER SERVICES" on page 30
of the Statement of Additional Information:
"AIM has voluntarily agreed, effective July 1, 2000, to waive
advisory fees payable by Charter, Constellation and Weingarten in an
amount equal to 0.025% for each $5 billion increment in net assets
over $5 billion, up to a maximum waiver of 0.175% on net assets in
excess of $35 billion, so that the effective fee schedules are as
follows:
CHARTER AND CONSTELLATION
NET ASSETS ANNUAL RATE
---------- -----------
First $30 million 1.00%
Over $30 million to and including $150 million 0.75%
Over $150 million to and including $5 billion 0.625%
Over $5 billion to and including $10 billion 0.60%
Over $10 billion to and including $15 billion 0.575%
Over $15 billion to and including $20 billion 0.55%
Over $20 billion to and including $25 billion 0.525%
Over $25 billion to and including $30 billion 0.50%
Over $30 billion to and including $35 billion 0.475%
Over $35 billion 0.45%
WEINGARTEN
NET ASSETS ANNUAL RATE
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First $30 million 1.00%
Over $30 million to and including $350 million 0.75%
Over $350 million to and including $5 billion 0.625%
Over $5 billion to and including $10 billion 0.60%
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Over $10 billion to and including $15 billion 0.575%
Over $15 billion to and including $20 billion 0.55%
Over $20 billion to and including $25 billion 0.525%
Over $25 billion to and including $30 billion 0.50%
Over $30 billion to and including $35 billion 0.475%
Over $35 billion 0.45%
In addition, pursuant to a prior fee waiver arrangement, AIM waived
through June 30, 2000 a portion of its advisory fees payable by
Charter, Constellation and Weingarten at net asset levels higher than
those currently incorporated in the advisory fee schedule.
Accordingly, with respect to each of Charter and Constellation, AIM
received a fee calculated at an annual rate of 1.0% of the first $30
million of such Fund's average daily net assets, plus 0.75% of such
Fund's average daily net assets in excess of $30 million to and
including $150 million, plus 0.625% of such Fund's average daily net
assets in excess of $150 million to and including $2 billion, plus
0.60% of the Fund's average daily net assets in excess of $2 billion.
With respect to Weingarten, AIM received a fee calculated at an annual
rate of 1.0% of the first $30 million of the Fund's average daily net
assets, plus 0.75% of the Fund's average daily net assets in excess of
$30 million to and including $350 million, plus 0.625% of the Fund's
average daily net assets in excess of $350 million to and including $2
billion, plus 0.60% of the Fund's average daily net assets in excess
of $2 billion to and including $3 billion, plus 0.575% of the Fund's
average daily net assets in excess of $3 billion to and including $4
billion, plus 0.55% of the Fund's average daily net assets in excess
of $4 billion. As compensation for its services, AIM pays 50% of the
advisory fees it receives pursuant to the Master Advisory Agreement
with respect to Charter, Constellation and Weingarten to AIM Capital."
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