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AIM LARGE CAP OPPORTUNITIES FUND
AIM MID CAP OPPORTUNITIES FUND
AIM SMALL CAP OPPORTUNITIES FUND
(SERIES PORTFOLIOS OF AIM SPECIAL OPPORTUNITIES FUNDS)
Supplement dated December 14, 2000
to the Statement of Additional Information dated November 28, 2000
The following paragraph replaces in its entirety the second full paragraph
appearing under the heading "HEDGING AND OTHER INVESTMENT TECHNIQUES" on page
17 of the Statement of Additional Information:
"Options. The Funds may write (sell) "covered" put and call
options and buy put and call options, including securities index and
foreign currency options. A call option is a contract that gives to
the holder the right to buy a specified amount of the underlying
security at a fixed or determinable price (called the exercise or
strike price) upon exercise of the option. A put option is a contract
that gives the holder the right to sell a specified amount of the
underlying security at a fixed or determinable price upon exercise of
the option. In the case of index options, exercises are settled
through the payment of cash rather than the delivery of property."
The following paragraphs are added after the sixth full paragraph appearing
under the heading "HEDGING AND OTHER INVESTMENT TECHNIQUES" on page 18 of the
Statement of Additional Information:
"Each Fund can cover a written put option by:
o Selling short the underlying security, index, interest rate,
foreign currency or futures contract at the same or greater price
than the exercise price of the put option;
o Purchasing a put option on the same security or index or interest
rate, foreign currency or futures contract with the same or
greater exercise price;
o Purchasing a put option on the same security or index or interest
rate, foreign currency or futures contract with a lesser exercise
price and segregating cash or liquid securities in an amount
equal to the difference between the exercise prices; or
o Segregating cash or liquid securities (not limited to the
underlying security), marked to market daily, equal to at least
the exercise price of the optioned securities, interest rate,
foreign currency or futures contract.
Each Fund can cover a written call option by:
o Purchasing the underlying security (or securities convertible
into the underlying security without additional consideration),
index, interest rate, foreign currency or futures contract;
o Purchasing a call option on the same security or index or
interest rate, foreign currency or futures contract with the same
or lesser exercise price;
o Purchasing a call option on the same security or index or
interest rate, foreign currency or futures contract with a
greater exercise price and segregating cash or liquid securities
in an amount equal to the difference between the exercise prices;
o Segregating cash or liquid securities (not limited to the
underlying security) equal to at least the market value of the
optioned securities, interest rate, foreign currency or futures
contract, all marked to market daily; or
o In the case of an index, purchasing a portfolio of securities
substantially replicating the movement of the index."
The following paragraph replaces in its entirety the seventh full paragraph
appearing under the heading "HEDGING AND OTHER INVESTMENT TECHNIQUES" on page
18 of the Statement of Additional Information:
"The Funds will not purchase options if, at the time of the
investment, the aggregate premiums paid for outstanding options will
exceed 25% of the Funds' total assets."
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The following information is added to the table appearing under the heading
"MANAGEMENT - Trustee and Officers" on page 22 of the Statement of Additional
Information:
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POSITIONS HELD
"NAME, ADDRESS AND AGE WITH REGISTRANT PRINCIPAL OCCUPATION DURING AT LEAST
THE PAST 5 YEARS
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ALBERT R. DOWDEN (59) Trustee Chairman of the Board of Directors, The Cortland Trust
1815 Central Park Drive (investment company) and DHJ Media, Inc.; and Director,
P.O. Box 774000-PMB #222 Magellan Insurance Company. Formerly, Director, President
Steamboat Springs, CO 80477 and Chief Executive Officer, Volvo Group North America,
Inc.; Senior Vice President, AB Volvo; and Director, The
Hertz Corporation, Genmar Corporation (boat manufacturer),
National Media Corporation and Annuity and Life Re
(Holdings), Ltd."
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