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RETAIL CLASSES OF
AIM LARGE CAP OPPORTUNITIES FUND
AIM MID CAP OPPORTUNITIES FUND
AIM SMALL CAP OPPORTUNITIES FUND
(SERIES PORTFOLIOS OF AIM SPECIAL OPPORTUNITIES FUNDS)
Supplement dated November 4, 1999
to the Statement of Additional Information dated September 27, 1999
as supplemented October 8, 1999
This supplement supersedes and replaces in its entirety the supplement dated
October 8, 1999.
Class A, Class B and Class C shares of AIM Large Cap Opportunities Fund and
Class B and Class C shares of AIM Mid Cap Opportunities Fund are not currently
available.
Reference is made to pages 22 through 24 of the Statement of Additional
Information.
At a meeting held on November 4, 1999, the Board of Trustees of AIM Special
Opportunities Funds (the trust) voted to amend the fundamental investment
restrictions of each of AIM Mid Cap Opportunities Fund and AIM Small Cap
Opportunities Fund (the funds), subject to shareholder approval. The Board of
Trustees has called a meeting of shareholders of the trust to be held on or
about December 20, 1999 to vote on this and other matters. Only shareholders of
record as of September 29, 1999 are entitled to vote on these matters.
If approved by shareholders, each fund will operate under the following
fundamental investment restrictions:
(a) The funds may not borrow money, except as permitted by 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 to the extent that the funds
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").
(b) The funds may not issue senior securities, except as may be
permitted by the 1940 Act Laws, Interpretations and Exemptions.
(c) The funds may not underwrite the securities of other issuers. This
restriction does not prevent the funds from engaging in transactions
involving the acquisition, disposition or resale of their portfolio
securities, regardless of whether the funds may be considered to be
underwriters under the Securities Act of 1933.
(d) The funds 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 their investments
in the securities of issuers primarily engaged in the same industry.
This restriction does not limit the funds' investments in (i)
obligations issued or guaranteed by the U.S. government, its
agencies or instrumentalities or (ii) tax-exempt obligations issued
by governments or political subdivisions of governments. In
complying with this restriction, the funds will not consider a
bank-issued guaranty or financial guaranty insurance as a separate
security.
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(e) The funds 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 funds 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 funds 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 funds
from engaging in transactions such as futures, contracts and options
thereon or investing in securities that are secured by physical
commodities.
(g) The funds may not make personal loans or loans to persons who
control or are under the common control of the funds, except to the
extent permitted by the 1940 Act Laws, Interpretations and
Exemptions. This restriction does not prevent the funds from
purchasing debt obligations, entering into repurchase agreements,
loaning their assets to broker-dealers or institutional investors,
or investing in loans, including assignments and participation
interests.
(h) Each fund may, notwithstanding any other fundamental investment
policy or restriction, 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 that fund.
Assuming shareholders approve the above fundamental investment restrictions,
the Board of Trustees has adopted the following non-fundamental investment
restrictions for each fund, which the Board of Trustees may change without
shareholder approval and which replace the funds' existing non-fundamental
investment restrictions:
1. In complying with the borrowing restriction set forth in (a), each
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 funds may borrow from banks or broker/dealers
or other investment companies or their series portfolios that have
AIM or an affiliate of AIM as an investment adviser (an "AIM Fund")
on such terms and conditions of any exemptive orders issued by the
SEC.
2. In complying with the concentration restriction set forth in (d)
above, each fund may invest up to 25% of its total assets in the
securities of issuers whose principal business activities are in the
same industry.
3. In complying with the lending restrictions set forth in (g) above,
each 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.
4. Notwithstanding the restriction set forth in (h) above, neither fund
may 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 that fund.
