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CLASS A, B AND C SHARES OF
AIM HIGH YIELD FUND
Supplement dated October 15, 1999
to the Prospectus dated May 3, 1999
The following replaces in its entirety the second paragraph appearing under the
heading "INVESTMENT OBJECTIVE AND STRATEGIES" on page 1 of the Prospectus:
"The fund seeks to meet this objective by investing at least 65% of
the value of its assets in lower-quality debt securities, i.e., "junk
bonds." The fund will principally invest in junk bonds rated B or above by
Moody's Investors Service, Inc. or Standard & Poor's Ratings Services or
deemed by the portfolio managers to be of comparable quality. The fund
will invest at least 80% of its total assets in debt securities, including
convertible debt securities and/or cash or cash equivalents. The fund may
also invest in preferred stock. The fund may invest up to 25% of its total
assets in foreign securities."
The following replaces in its entirety the fourth full paragraph appearing
under the heading "INVESTMENT OBJECTIVE AND STRATEGIES" on page 1 of the
Prospectus:
"In anticipation of or in response to adverse market conditions, for
cash management purposes, or for defensive purposes, the fund may
temporarily hold all or a portion of its assets in cash, money market
instruments, shares of affiliated money market funds, bonds or other debt
securities. As a result, the fund may not achieve its investment
objective."
The following new section is added immediately after the section entitled
"SHAREHOLDER INFORMATION-REDEEMING SHARES-REDEMPTION OF AIM CASH RESERVE
SHARES OF AIM MONEY MARKET FUND ACQUIRED BY EXCHANGE" on Page A-4 of the
Prospectus:
"REDEMPTION OF CLASS B SHARES OR CLASS C SHARES ACQUIRED BY EXCHANGE FROM
AIM CASH RESERVE SHARES OF AIM MONEY MARKET FUND
We will begin the holding period for purposes of calculating the CDSC on
Class B shares or Class C shares acquired by exchange from AIM Cash
Reserve Shares of AIM Money Market Fund at the time of the exchange into
Class B shares or Class C shares."
The following replaces in its entirety the first paragraph under the heading
"SHAREHOLDER INFORMATION-EXCHANGING SHARES-PERMITTED EXCHANGES" on Page A-6 of
the Prospectus:
"Except as otherwise stated below, you may exchange your shares for shares
of the same class of another AIM Fund. You may exchange AIM Cash Reserve
Shares of AIM Money Market Fund for Class A shares of another AIM Fund, or
vice versa. You also may exchange AIM Cash Reserve Shares of AIM Money
Market Fund for Class B shares or Class C shares of another AIM Fund, but
only if the AIM Cash Reserve Shares were purchased directly and not
acquired by exchange. You may be required to pay an initial sales charge
when exchanging from a Fund with a lower initial sales charge than the one
into which you are exchanging. If you exchange from Class A shares not
subject to a CDSC into Class A shares subject to those charges, you will
be charged a CDSC when you redeem the exchanged shares. The CDSC charged
on redemption of those shares will be calculated starting on the date you
acquired those shares through exchange."
A new paragraph (5) is added under the heading "SHAREHOLDER
INFORMATION-EXCHANGING SHARES-PERMITTED EXCHANGES-YOU WILL NOT PAY A SALES
CHARGE WHEN EXCHANGING:" on Page A-6 of the Prospectus, and the new paragraph
(5) reads as follows:
"(5) AIM Cash Reserve Shares of AIM Money Market Fund for Class B shares
and Class C shares."
The following replaces in its entirety the information appearing under the
heading "SHAREHOLDER INFORMATION-EXCHANGING SHARES-EXCHANGE CONDITIONS" on
page A-6 of the prospectus:
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"The following conditions apply to all exchanges:
o You must meet the minimum purchase requirements for the AIM Fund into
which you are exchanging;
o Shares of the AIM Fund you wish to acquire must be available for sale in
your state of residence;
o Exchanges must be made between accounts with identical registration
information;
o The account you wish to exchange from must have a certified tax
identification number (or the Fund has received an appropriate Form
W-8 or W-9);
o Shares must have been held for at least one day prior to the exchange;
o If you have physical share certificates, you must return them to the
transfer agent prior to the exchange; and
o You are limited to a maximum of 10 exchanges per calendar year,
because excessive short-term trading or market-timing activity can
hurt fund performance. If you exceed that limit, or if an AIM Fund
or the distributor determines, in its sole discretion, that your
short-term trading is excessive or that you are engaging in
market-timing activity, it may reject any additional exchange
orders. An exchange is the movement out of (redemption) one AIM Fund
and into (purchase) another AIM Fund."
