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PROXY UPDATE [AIM LOGO]
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IMPORTANT INFORMATION ABOUT THE AIM/INVESCO MERGER PROXY YOUR CLIENTS WILL
RECEIVE
As you may know, AIM has entered into an agreement to merge with a subsidiary
of INVESCO plc. When the merger is completed, AIM and INVESCO will be combined
under a new holding company to be named AMVESCO, to reflect a true "merger of
equals." AMVESCO will have combined assets under management of approximately
$150 billion and the capability to offer a broader range of products and
services.
This merger will not change the portfolio management, investment style,
distribution system, fee or load structure of any of the AIM Funds that your
clients own.
However, as a result of the merger it is necessary for the shareholders
of each AIM Fund to approve a new investment advisory agreement (and in some
cases a sub-advisory agreement). At the same time, your clients will also be
asked to vote on other proposals that relate to the management of their Fund.
Proxies will be mailed to AIM's registered shareholders (as of the
December 3 record date) beginning December 26. Shareholder meetings are
scheduled for February 7, 1997.
PROXIES AND BALLOTS
Because your clients are being asked to vote on different issues, we
are mailing different proxies. To reduce costs, Funds have been grouped in the
proxies as noted below based on the common issues up for vote.
- - GROUP A: Blue Chip, Capital Development, Global Aggressive Growth, Global
Growth, Global Income, International Equity, Tax-Exempt Bond Fund of
Connecticut, Tax-Exempt Cash Fund, Tax-Free Intermediate Shares and all AIM
Variable Insurance Funds
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INSIDE THIS UPDATE
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SUMMARY OF PROXY ISSUES ............... PAGE 2
PROXY COVER LETTER .................... PAGE 3
DIVISION PHONE NUMBERS ................ PAGE 4
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- - GROUP B: Charter, Constellation and Weingarten Funds
- - GROUP C: Aggressive Growth Fund
- - GROUP D: Short-Term Investments Co., Short-Term Investments Trust and
Tax-Free Investments Co.
- - GROUP E: Balanced, High Yield, Income, Intermediate Government, Money Market,
Municipal Bond and Limited Maturity Treasury Shares Funds
- - GROUP F: Global Utilities, Growth and Value Funds
Your clients will receive proxies based on the Funds they own. For example, if
they own shares of Global Growth Fund and Charter Fund, they will receive
proxies for both Groups A and B. They will also receive a ballot for each Fund.
If they own shares of Global Utilities and Growth Funds, they will receive only
the proxy for Group E; however, they will receive two ballots, one for each
Fund.
THE SOLICITATION PROCESS
AIM has retained Shareholder Communications Corporation (SCC), a professional
proxy solicitor, to assist with solicitation.
Sometime after the second week in January, SCC will begin calling your
clients who have not voted to remind them to vote. SCC will start with
shareholders owning the largest number of shares. Your clients will be given
the opportunity to vote over the phone.
Please note: shareholders voting by phone will be asked several
questions for identification purposes, including the last four digits of their
Social Security numbers.
VOTING BY MAIL, PHONE OR FAX
Your clients may have three possible ways to vote: mail, phone or fax.
BY PHONE
Registered AIM shareholders and non-objecting beneficial shareholders (NOBOs)
distributed through ADP can vote by phone by calling 800-733-8481, ext. 421
between 9 a.m. and 11 p.m., EST. Please note that your clients cannot vote by
calling AIM Fund Services.
BY FAX
Registered AIM shareholders and NOBOs described above can vote by fax, 24 hours
a day, at 800-733-1885.
BY MAIL
All AIM shareholders can vote by mail. Clients with shares held in street name
accounts (other than NOBOs described above) may only vote by mail. They will
not be able to vote by phone or fax because SCC will not have their records.
They must vote by mail, unless their broker/dealer's proxy department has made
other arrangements.
FOR ADDITIONAL INFORMATION
If you have any additional questions about the proxy process, please call SCC
at 800-733-8481, ext. 421. Call your AIM regional wholesaler or marketing
specialist if you have questions about the merger.
To order copies of
the proxies, call AIM at 800-347-4246
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FOR BROKER USE ONLY
THIS MATERIAL IS PREPARED FOR BROKER USE ONLY AND MAY NOT BE QUOTED, REPRODUCED
OR SHOWN TO MEMBERS OF THE PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE
FOR PUBLIC USE. A I M DISTRIBUTORS, INC. 12/96.
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SUMMARY OF PROXY ISSUES
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VOTING ISSUE REASON
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ALL FUNDS Approve new investment agreement As a result of the merger, the present agreement terminates
with A I M Advisors, Inc. No change in automatically. Shareholders are being asked to approve
fees is proposed. a new agreement on terms substantially identical to the
current agreement. There are no material changes.
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ALL FUNDS Elect Trustees/Directors Shareholders have the opportunity to elect trustees/directors
who oversee matters relating to their Fund.
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ALL FUNDS Ratify selection of KPMG Peat Marwick The law requires that shareholders be asked to ratify the
as independent accountants (VI Funds selection of independent accountants at meetings where
vote on Tait, Weller & Baker as trustees/directors are elected.
independent accountants).
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ALL FUNDS Approve change to policy regarding By changing the current policy, the Funds would have the
(EXCEPT BLUE CHIP investments in other investment flexibility to invest in a wider range of issuers, industries
FUND) companies. and markets with Board approval and SEC exemptive relief. This
may decrease volatility and risk while providing greater
liquidity than investing in individual securities.
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CHARTER, Approve new sub-advisory agreement As a result of the merger, the present agreement terminates
CONSTELLATION AND between A I M Advisors, Inc. and A I M automatically. Shareholders are being asked to approve
WEINGARTEN FUNDS Capital Management, Inc. No change a new agreement on terms substantially identical to the
in fees is proposed. current agreement.
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SUMMIT FUND Approve new sub-advisory agreement As a result of the merger, the present agreement terminates
between A I M Advisors, Inc. and automatically. Shareholders are being asked to approve
TradeStreet Investment Associates. a new agreement on terms substantially identical to the
current agreement.
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CHARTER FUND Eliminate fundamental policy regarding These securities provide additional opportunities for long-
investment in companies with less than term growth.
five years of continuous operation.
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INTERNATIONAL Eliminate fundamental policy regarding These securities provide additional opportunities for long-
EQUITY FUND investment in companies with less than term growth.
three years of continuous operation.
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GLOBAL UTILITIES, Change fundamental policy regarding Provide protection in down markets. For hedging purposes
GROWTH, VALUE, investment in puts, calls, straddles and only; will not be used for speculative investments.
CHARTER AND spreads.
WEINGARTEN FUNDS
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FOR BROKER USE ONLY
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COPY
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Chairman's cover letter for
the AIM proxy to be mailed
to your clients in late
December
THE AIM FAMILY OF FUNDS --Registered Trademark--
11 Greenway Plaza, Suite 1919
Houston, TX 77046
December 20, 1996
Dear Shareholder:
As you may know, A I M Management Group Inc. ("AIM Management"), the parent
company of A I M Advisors, Inc. ("AIM"), the investment advisor to The AIM
Family of Funds--Registered Trademark--, has entered into an agreement under
which AIM Management will merge with a subsidiary of INVESCO plc. As a result
of this merger, it is necessary for the shareholders of each of the AIM Funds
to approve a new investment advisory agreement (and in some cases, a new
sub-advisory agreement).
The following important facts about the transaction are outlined below:
- The merger has no effect on the number of shares you own or the value of
those shares.
- The advisory fees and expenses charged to your Fund will not change as a
result of this merger.
- The investment objectives of the Fund will remain the same and key
employees of AIM will continue to manage your Funds as they have in the
past.
- The merger will not change the quality of the investment management and
shareholder services that you have received over the years.
Shareholders are also being asked to approve Directors, to approve certain
proposed changes in fundamental policies and to ratify the selection of
independent accountants. After careful consideration, the Board of Directors of
your Fund has unanimously approved these proposals and recommends that you read
the enclosed materials carefully and then vote FOR all proposals.
Since all of the AIM Funds are required to conduct shareholder meetings, you
will receive at least one statement and a proxy card for each Fund you own.
PLEASE VOTE EACH PROXY CARD YOU RECEIVE.
Your vote is important. Please take a moment now to sign and return your proxy
cards in the enclosed postage paid return envelope. If we do not hear from you
after a reasonable amount of time you may receive a telephone call from our
proxy solicitor, Shareholder Communications Corporation, reminding you to vote
your shares.
Thank you for your cooperation and continued support.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
FOR BROKER USE ONLY
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NYSE DIVISION:
800-988-4246
NYSE Member Firms
INDEPENDENT AND INSURANCE DEALER DIVISION (IIDD):
800-337-4246
NASD Member Firms, Financial Planners and Insurance Agents
FINANCIAL INSTITUTION DIVISION (FID):
800-578-4246
Banks, Savings & Loans and Credit Unions
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www.aimfunds.com
A I M Distributors, Inc. 12/96.
[AIM LOGO APPEARS HERE]
FOR BROKER USE ONLY
THIS MATERIAL IS PREPARED FOR BROKER USE ONLY AND MAY NOT BE QUOTED, REPRODUCED
OR SHOWN TO MEMBERS OF THE PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE
FOR PUBLIC USE.
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