AIM INVESTMENT PORTFOLIOS INC, 485APOS, 1998-07-07

AIM INVESTMENT PORTFOLIOS INC
485APOS, 1998-07-07

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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY 7, 1998

1933 ACT REGISTRATION NO. 2-74549
1940 ACT REGISTRATION NO. 811-03297

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

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FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/

POST-EFFECTIVE AMENDMENT NO. 26

AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/

AMENDMENT NO. 22

------------------------

AIM INVESTMENT PORTFOLIOS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

50 CALIFORNIA STREET, 27TH FLOOR,
SAN FRANCISCO, CALIFORNIA 94111
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(415) 392-6181

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<TABLE>
<S> <C> <C>
MICHAEL A. SILVER, ESQ. SAMUEL D. SIRKO, ESQ. ARTHUR J. BROWN, ESQ.
INVESCO (NY), INC. A I M ADVISORS, INC. R. DARRELL MOUNTS, ESQ.
50 CALIFORNIA STREET, 11 GREENWAY PLAZA, KIRKPATRICK & LOCKHART LLP
27TH FLOOR SUITE 100 1800 MASSACHUSETTS AVENUE, N.W.,
SAN FRANCISCO, CA 94111 HOUSTON, TEXAS 77046 2ND FLOOR
(NAME AND ADDRESS OF AGENT 713-626-1919 WASHINGTON, D.C. 20036
FOR SERVICE) (202) 778-9000
</TABLE>

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IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE:

/ / IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (b) OF RULE 485.

/ / ON PURSUANT TO PARAGRAPH (b) OF RULE 485 OR SUCH OTHER
DATE AS IT MAY BE DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE
COMMISSION.

/ / 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(1) OF RULE 485.

/X/ ON SEPTEMBER 8, 1998 PURSUANT TO PARAGRAPH (a)(1) OF RULE 485.

/ / 75 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(2) OF RULE 485.

/ / ON PURSUANT TO PARAGRAPH (a)(2) OF RULE 485.
IF APPROPRIATE, CHECK THE FOLLOWING BOX:
/ / THIS POST-EFFECTIVE AMENDMENT DESIGNATES A NEW EFFECTIVE DATE FOR A
PREVIOUSLY FILED POST-EFFECTIVE AMENDMENT.

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<PAGE>

AIM INVESTMENT PORTFOLIOS, INC.
CONTENTS OF POST-EFFECTIVE AMENDMENT

This post-effective amendment to the registration statement of AIM
Investment Portfolios, Inc. contains the following documents:

<TABLE>
<S> <C> <C>
Facing Sheet
Contents of Post-Effective Amendment
Cross-Reference Sheet
Part A -- Prospectus
-- AIM Dollar Fund
-- Prospectus -- Advisor Class
-- AIM Dollar Fund
Part B -- Statement of Additional Information
-- AIM Dollar Fund
-- Statement of Additional Information -- Advisor Class
-- AIM Dollar Fund
Part C -- Other Information
Signature Page
-- AIM Investment Portfolios, Inc.
Exhibits
</TABLE>

<PAGE>

AIM INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT

PROSPECTUS -- CLASS A AND CLASS B

<TABLE>
<CAPTION>
ITEM NO. OF
PART A OF FORM N-1A CAPTIONS IN PROSPECTUS
- ------------------------------------------- ---------------------------------------------------------------
<C> <S> <C>
1. Cover Page...................... Cover Page
2. Synopsis........................ Summary
3. Condensed Financial
Information..................... Financial Highlights
4. General Description of
Registrant...................... Investment Objective and Policies; Management; General
Information
5. Management of the
Fund............................ Management
5A. Management's
Discussion of Fund
Performance..................... Not Applicable
6. Capital Stock and Other
Securities...................... Dividends, Distributions and Tax Matters; General Information
7. Purchase of Securities
Being Offered................... How to Purchase Shares; Exchange Privilege; Determination of
Net Asset Value; Management; Terms and Conditions of Purchase
of the AIM Funds; Special Plans
8. Redemption or
Repurchase...................... How to Redeem Shares; Determination of Net Asset Value
9. Pending Legal
Proceedings..................... Not Applicable
</TABLE>

<PAGE>

AIM INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT

PROSPECTUS -- ADVISOR CLASS

<PAGE>

AIM INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT

STATEMENT OF ADDITIONAL INFORMATION -- CLASS A AND CLASS B

<TABLE>
<CAPTION>
ITEM NO. OF
PART B OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------- ------------------------------------------------------------------
<S> <C>
10. Cover Page................... Cover Page
11. Table of Contents............ Table of Contents
12. General Information and
History..................... Cover Page
13. Investment Objective
and Policies................ Investment Objective and Policies; Investment Limitations
14. Management of the
Fund........................ Trustees and Executive Officers; Management
15. Control Persons and
Principal Holders of
Securities.................. Trustees and Executive Officers; Management
16. Investment Advisory and
Other Services.............. Management; Additional Information
17. Brokerage Allocation and
Other Practices............. Execution of Portfolio Transactions
18. Capital Stock and Other
Securities.................. Not Applicable
19. Purchase, Redemption
and Pricing of Securities
Being Offered............... Valuation of Fund Shares; How to Purchase and Redeem Shares
20. Tax Status................... Dividends and Federal Income Taxation
21. Underwriters................. Management
22. Calculation of
Performance Data............ Investment Results
23. Financial Statements......... Financial Statements
</TABLE>

<PAGE>

AIM INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT

STATEMENT OF ADDITIONAL INFORMATION -- ADVISOR CLASS

<TABLE>
<CAPTION>
ITEM NO. OF
PART B OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------- ------------------------------------------------------------------
<S> <C>
10. Cover Page................... Cover Page
11. Table of Contents............ Table of Contents
12. General Information and
History..................... Cover Page
13. Investment Objective
and Policies................ Investment Objective and Policies; Investment Limitations
14. Management of the
Fund........................ Trustees and Executive Officers; Management
15. Control Persons and
Principal Holders of
Securities.................. Trustees and Executive Officers; Management
16. Investment Advisory and
Other Services.............. Management; Additional Information
17. Brokerage Allocation and
Other Practices............. Execution of Portfolio Transactions
18. Capital Stock and Other
Securities.................. Not Applicable
19. Purchase, Redemption
and Pricing of Securities
Being Offered............... Valuation of Shares; How to Purchase and Redeem Shares
20. Tax Status................... Dividends and Federal Income Taxation
21. Underwriters................. Management
22. Calculation of
Performance Data............ Investment Results
23. Financial Statements......... Financial Statements
</TABLE>

<PAGE>
[LOGO]

AIM DOLLAR FUND

PROSPECTUS -- SEPTEMBER 8, 1998

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This Prospectus contains information about AIM Dollar Fund (the "Fund"), which
is a diversified series of AIM Investment Portfolios (the "Trust"), an open-end,
series management investment company. The Fund seeks maximum current income
consistent with liquidity and conservation of capital. The Fund may invest in a
wide variety of high quality, U.S. dollar-denominated money market instruments,
including obligations issued or guaranteed by the U.S. and foreign governments,
their agencies and instrumentalities; U.S. and non-U.S. corporate obligations;
and instruments of U.S. and foreign banks.

THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.

THE FUND'S SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND THE FUND'S SHARES ARE NOT FEDERALLY INSURED OR GUARANTEED BY
THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY. SHARES OF THE FUND INVOLVE INVESTMENT RISKS,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.

This Prospectus sets forth concisely the information about the Fund that
prospective investors should know before investing. It should be read and
retained for future reference. A Statement of Additional Information, dated
September 8, 1998, has been filed with the Securities and Exchange Commission
("SEC") and is incorporated herein by reference. The Statement of Additional
Information is available without charge upon written request to the Fund at 11
Greenway Plaza, Suite 100, Houston, Texas 77046-1173 or by calling 1-800-
347-4246. The SEC maintains a Web site at http://www.sec.gov that contains the
Statement of Additional Information, material incorporated by reference, and
other information regarding the Fund. Additional information about the Fund may
also be obtained on the Web at http://www.aimfunds.com.

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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION PASSED ON
THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

Prospectus Page 1
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AIM DOLLAR FUND

TABLE OF CONTENTS
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<TABLE>
<CAPTION>
Page
---------
<S> <C>
Summary................................................................................... 2
Financial Highlights...................................................................... 6
Investment Objective and Policies......................................................... 7
Management................................................................................ 9
Other Information......................................................................... 12
</TABLE>

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SUMMARY

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<TABLE>
<S> <C> <C>
The Fund: The Fund is a diversified series of the Trust.
Investment Objective: The Fund seeks maximum current income consistent with liquidity and conservation of capital.
Principal Investments: The Fund invests in a wide variety of high quality U.S. dollar-denominated money market instruments
of U.S. and non-U.S. issuers.
Investment Managers: The Fund is managed by AIM Advisors, Inc. ("AIM") and is sub-advised by INVESCO (NY), Inc. (the
"Sub-Adviser"). AIM and the Sub-adviser and their worldwide asset management affiliates provide
investment management and/or administrative services to institutional, corporate and individual
clients around the world. AIM and the Sub-adviser are both indirect wholly owned subsidiaries of
AMVESCAP PLC. AMVESCAP PLC and its subsidiaries are an independent investment management group that
has a significant presence in the institutional and retail segment of the investment management
industry in North America and Europe, and a growing presence in Asia. AIM was organized in 1976 and,
together with its subsidiaries, currently advises approximately 90 investment company portfolios.
Purchasing Shares: Investors may select Class A or Class B shares of the Fund which are offered by this Prospectus at an
offering price that reflects differing sales charges and expense levels. See "Terms and Conditions of
Purchase of the AIM Funds -- Sales Charges and Dealer Concessions." Pursuant to a separate
prospectus, the Fund also offers Advisor Class shares, which represent interests in the Fund. The
Advisor Class has different distribution arrangements.
Class A Shares: Shares are offered at net asset value without an initial sales charge and without contingent deferred
sales charges.
</TABLE>

Prospectus Page 2
<PAGE>
AIM DOLLAR FUND

SUMMARY
(Continued)
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<TABLE>
<S> <C> <C>
Class B Shares: Shares are offered at net asset value without an initial sales charge and are subject to a maximum
contingent deferred sales charge of 5% on certain redemptions made within six years from the date
such shares were purchased. Class B shares automatically convert to Class A shares of the Fund eight
years following the end of the calendar month in which a purchase was made. Class B shares are
subject to higher annual expenses than Class A shares.
Initial investments in any class of shares must be at least $500 and additional investments must be
at least $50. The minimum initial investment is modified for investments through tax-qualified
retirement plans and accounts initially established with an Automatic Investment Plan. The
distributor of the Fund's shares is A I M Distributors, Inc. ("AIM Distributors"), P.O. Box 4739,
Houston, TX 77210-4739. See "How to Purchase Shares" and "Special Plans."
Suitability for Investors: An investor in Class A or Class B shares of the Fund should consider the method of purchasing shares
that is most beneficial given the amount of the purchase, the length of time the shares are expected
to be held, and other circumstances. Investors should consider whether, during the anticipated life
of their investment in the Fund, the accumulated distribution fees and any applicable contingent
deferred sales charges on Class B shares prior to conversion would be less than the initial sales
charge and accumulated distribution fees on Class A shares purchased at the same time, and to what
extent such differential would be offset by the higher return on Class A shares. To assist investors
in making this determination, the table under the caption "Table of Fees and Expenses" sets forth
examples of the charges applicable to each class of shares. Class A shares will normally be more
beneficial than Class B shares to the investor who qualifies for reduced initial sales charges, as
described below. Therefore, AIM Distributors will reject any order for purchase of more than $250,000
for Class B shares.
Exchange Privilege: The Fund is among those mutual funds distributed by AIM Distributors (collectively, "The AIM Family
of Funds"). Class A and Class B shares of the Fund may be exchanged for shares of other funds in The
AIM Family of Funds in the manner and subject to the policies and charges set forth herein. See
"Exchange Privilege."
Redeeming Shares: Class A shareholders of the Fund may redeem all or a portion of their shares at net asset value on
any business day, generally without charge. A contingent deferred sales charge of 1% may apply to
certain redemptions where a purchase of more than $1 million is made at net asset value. See "How to
Redeem Shares -- Contingent Deferred Sales Charge Program for Large Purchases."
</TABLE>

Prospectus Page 3
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AIM DOLLAR FUND

SUMMARY
(Continued)
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<TABLE>
<S> <C> <C>
Class B shareholders of the Fund may redeem all or a portion of their shares at net asset value on
any business day, less a contingent deferred sales charge for redemptions made within six years from
the date such shares were purchased. Class B shares redeemed after six years from the date such
shares were purchased will not be subject to any contingent deferred sales charge. See "How to Redeem
Shares -- Multiple Distribution System."
Distributions: Dividends are declared daily and paid monthly from available net investment income and any realized
net short-term capital gain. Dividends may be reinvested automatically in Fund shares of the
distributing class without a sales charge.
</TABLE>

THE AIM FAMILY OF FUNDS, THE AIM FAMILY OF FUNDS AND DESIGN (I.E., THE AIM
LOGO), AIM AND DESIGN, AIM, AIM LINK, AIM INSTITUTIONAL FUNDS, AIMFUNDS.COM, LA
FAMILIA AIM DE FONDOS AND LA FAMILIA AIM DE FONDOS AND DESIGN ARE REGISTERED
SERVICE MARKS AND INVEST WITH DISCIPLINE AND AIM BANK CONNECTION ARE SERVICE
MARKS OF A I M MANAGEMENT GROUP INC.

Prospectus Page 4
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AIM DOLLAR FUND

TABLE OF FEES AND EXPENSES. The expenses and maximum transaction costs
associated with investing in the Class A and Class B shares of the Fund are
reflected in the following table (1):

<TABLE>
<CAPTION>
CLASS A CLASS B
----------- -----------
<S> <C> <C>
SHAREHOLDER TRANSACTION COSTS (2):
Sales charge on purchases of shares................................................................ None None
Sales charges on reinvested distributions to shareholders.......................................... None None
Maximum contingent deferred sales charge (as a % of net asset value at time of purchase or sale,
whichever is less)................................................................................ None 5.0%
Redemption charges................................................................................. None None
Exchange fees...................................................................................... None None

ANNUAL FUND OPERATING EXPENSES (3):
(AS A % OF AVERAGE NET ASSETS)
Investment management and administration fees...................................................... 0.50% 0.50%
12b-1 distribution and service fees (after waivers)................................................ 0.00% 0.75%
Other expenses (after reimbursements and waivers).................................................. 0.50% 0.50%
----------- -----------
Total Fund Operating Expenses (after reimbursements and waivers)..................................... 1.00% 1.75%
----------- -----------
----------- -----------
</TABLE>

HYPOTHETICAL EXAMPLE OF EFFECT OF EXPENSES (5):
An investor would directly or indirectly pay the following expenses at the end
of the periods shown on a $1,000 investment in the Fund, assuming a 5% annual
return:

<TABLE>
<CAPTION>
TEN
ONE YEAR THREE YEARS FIVE YEARS YEARS(6)
----- ----------- ----- -----------
<S> <C> <C> <C> <C>
Class A shares..................................................... $ 10 $ 32 $ 55 $ 123
Class B shares
Assuming complete redemption at end of period (4)................ 70 89 119 [ ]
Assuming no redemption........................................... 18 56 96 [ ]
</TABLE>

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(1) THIS TABLE IS INTENDED TO ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS
COSTS AND EXPENSES ASSOCIATED WITH INVESTING IN THE FUND. Long-term
shareholders may pay more than the economic equivalent of the maximum
front-end sales charges permitted by the National Association of Securities
Dealers, Inc. rules regarding investment companies.

(2) The maximum 5% contingent deferred sales charge on Class B shares applies to
redemptions during the first year after purchase. The charge generally
declines by 1% annually thereafter, reaching zero after six years. See
"Terms and Conditions of Purchase of the AIM Funds -- Reductions in Initial
Sales Charges."

(3) Expenses are based on the Fund's fiscal year ended December 31, 1997. "Other
expenses" include custody, transfer agent, legal, audit and other expenses.
AIM has undertaken to limit the Fund's expenses (exclusive of brokerage
commissions, taxes, interest and extraordinary expenses) to the annual rate
of 1.00% and 1.75% of the average daily net assets of the Fund's Class A and
Class B shares, respectively. See "Management" herein and the Statement of
Additional Information for more information. Without reimbursements or
waivers, "12b-1 distribution and service fees," "Other expenses" and "Total
Fund Operating Expenses" would have been 0.25%, 0.53%, and 1.28%,
respectively, for Class A shares and 1.00%, 0.53%, and 2.03%, respectively,
for Class B shares.

(4) Assumes deduction of the applicable contingent deferred sales charge.

(5) THE "HYPOTHETICAL EXAMPLE" SET FORTH ABOVE IS NOT A REPRESENTATION OF PAST
OR FUTURE EXPENSES. THE FUND'S ACTUAL EXPENSES, AND AN INVESTOR'S DIRECT AND
INDIRECT EXPENSES, MAY BE MORE OR LESS THAN THOSE SHOWN. The above table and
the assumption in the Hypothetical Example of a 5% annual return are
required by regulation of the SEC applicable to all mutual funds. The 5%
annual return is not a prediction of and does not represent the Fund's
projected or actual performance.

(6) For Class B shares, this number reflects the conversion to Class A shares
eight years following the end of the calendar month in which a purchase was
made.

Prospectus Page 5
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AIM DOLLAR FUND

FINANCIAL HIGHLIGHTS

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The table below provides condensed financial information concerning income and
capital changes for one Class A and Class B share of the Fund. This information
is supplemented by the financial statements and notes thereto included in the
Statement of Additional Information.

AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)

[TO BE ADDED]

------------------------

PERFORMANCE. All advertisements of the Fund will disclose the maximum sales
charge (including deferred sales charges) imposed on purchases of the Fund's
shares. If any advertised performance data does not reflect the maximum sales
charge (if any), such advertisement will disclose that the sales charge has not
been deducted in computing the performance data, and that, if reflected, the
maximum sales charge would reduce the performance quoted. See the Statement of
Additional Information for further details concerning performance comparisons
used in advertisements by the Fund. Further information regarding the Fund's
performance is contained in the Fund's annual report to shareholders, which is
available upon request and without charge.

The Fund's total return is calculated in accordance with a standardized formula
for computation of annualized total return. Standardized total return for Class
B shares reflects the deduction of the maximum applicable contingent deferred
sales charge on a redemption of shares held for the period.

The Fund's total return shows its overall change in value, including changes in
share price and assuming all the Fund's dividends and capital gain distributions
are reinvested. A cumulative total return reflects the Fund's performance over a
stated period of time. An average annual total return reflects the hypothetical
compounded annual rate of return that would have produced the same cumulative
total return if the Fund's performance had been constant over the entire period.
BECAUSE AVERAGE ANNUAL RETURNS TEND TO EVEN OUT VARIATIONS IN THE FUND'S RETURN,
INVESTORS SHOULD RECOGNIZE THAT SUCH RETURNS ARE NOT THE SAME AS ACTUAL
YEAR-BY-YEAR RESULTS. To illustrate the components of overall performance, the
Fund may separate its cumulative and average annual returns into income results
and capital gains or losses.

Yield is computed in accordance with standardized formulas described in the
Statement of Additional Information and can be expected to fluctuate from time
to time and is not necessarily indicative of future results. Accordingly, yield
information may not provide a basis for comparison with investments which pay a
fixed rate of interest for a stated period of time. Yield reflects investment
income net of expenses over the relevant period attributable to a Fund share,
expressed as an annualized percentage of the maximum offering price per share
for Class A shares and net asset value per share for Class B shares.

Yield is a function of the type and quality of the Fund's investments, the
maturity of the securities held in the Fund's portfolio and the operating
expense ratio of the Fund. A shareholder's investment in the Fund is not insured
or guaranteed. These factors should be carefully considered by the investor
before making an investment in the Fund.

From time to time and in its discretion, AIM may waive all or a portion of its
advisory fees and/or assume certain expenses of the Fund. Such practices will
have the effect of increasing the Fund's yield and total return. The performance
of the Fund will vary from time to time and past results are not necessarily
representative of future results. The Fund's performance is a function of its
portfolio management in selecting the type and quality of portfolio securities
and is affected by operating expenses of the Fund as well as by general market
conditions.

Prospectus Page 6
<PAGE>
AIM DOLLAR FUND

INVESTMENT OBJECTIVE
AND POLICIES

- --------------------------------------------------------------------------------

The Fund's investment objective is to seek maximum current income consistent
with liquidity and conservation of capital. The Fund seeks this objective by
investing in high quality, U.S. dollar-denominated money market instruments,
i.e., debt obligations with remaining maturities of 13 months or less. There can
be no assurance that the Fund will achieve its investment objective.

The Fund seeks to maintain a net asset value of $1.00 per share. To do so, the
Fund uses the amortized cost method of valuing its securities pursuant to Rule
2a-7 under the Investment Company Act of 1940, as amended (the "1940 Act"),
certain requirements of which are summarized below.

In accordance with Rule 2a-7, the Fund will (i) maintain a dollar-weighted
average portfolio maturity of 90 days or less and (ii) purchase only instruments
having remaining maturities of 13 months or less.

The Fund will invest only in high quality, U.S. dollar-denominated money market
instruments determined by the Sub-adviser to present minimal credit risks in
accordance with procedures established by the Trust's Board of Trustees (the
"Board"). To be considered high quality, a security must be rated in accordance
with applicable rules in one of the two highest rating categories for short-term
securities by at least two nationally recognized statistical rating
organizations ("NRSROs") (or one, if only one such NRSRO has rated the security)
or, if the issuer has no applicable short-term rating, determined by the
Sub-adviser to be of equivalent credit quality.

High quality securities are divided into "first tier" and "second tier"
securities. The Fund will limit its purchases of Municipal Securities to those
which are "First Tier" securities as defined in Rule 2a-7 under the 1940 Act.
Generally, "First Tier" securities are securities that are rated in the highest
rating category for short-term debt obligations by two NRSROs, or, if only rated
by one NRSRO, are rated in the highest rating category by that NRSRO, or, if
unrated, are determined by the Fund's Sub-adviser (under the supervision of and
pursuant to guidelines established by the Board of Trustees) to be of comparable
quality to a rated security that meets the foregoing quality standards, as well
as securities issued by a registered investment company that is a money market
fund and U.S. government securities.

The rating criteria of Standard & Poor's Corporation ("S&P") and Moody's
Investment Service, Inc. ("Moody's"), two NRSROs currently rating instruments of
the type the Fund may purchase, are more fully described in "Description of Debt
Ratings" in the Statement of Additional Information.

PERMITTED INVESTMENTS. The Fund may invest in the following types of money
market instruments:

/ / OBLIGATIONS ISSUED OR GUARANTEED BY THE U.S. AND FOREIGN GOVERNMENTS, THEIR
AGENCIES AND INSTRUMENTALITIES. These include: direct obligations of the
U.S. Treasury, such as Treasury bills and notes; obligations backed by the
full faith and credit of the U.S. government, such as those issued by the
Government National Mortgage Association; obligations supported primarily or
solely by the creditworthiness of the issuer, such as securities of Fannie
Mae (also known as the Federal National Mortgage Association), Freddie Mac
(also known as the Federal Home Loan Mortgage Corporation) and the Tennessee
Valley Authority; and similar U.S.-dollar denominated instruments of foreign
governments, their agencies, authorities and instrumentalities.

/ / OBLIGATIONS OF U.S. AND NON-U.S. BANKS, including certificates of deposit,
bankers' acceptances and similar instruments, when such banks have total
assets at the time of purchase equal to at least $1 billion.

/ / INTEREST-BEARING DEPOSITS IN U.S. COMMERCIAL AND SAVINGS BANKS having total
assets of $1 billion or less, in principal amounts at each such bank not
greater than are insured by an agency of the U.S. government, provided that
the aggregate amount of such deposits (including interest earned) does not
exceed 5% of the Fund's assets.

/ / COMMERCIAL PAPER AND OTHER SHORT-TERM DEBT OBLIGATIONS OF U.S. AND FOREIGN
COMPANIES, rated at least A-1 by S&P or Prime-1 by Moody's or, if not rated,
determined by the Sub-adviser to be of equivalent

Prospectus Page 7
<PAGE>
AIM DOLLAR FUND
quality, provided that any outstanding intermediate- or long-term debt of
the issuer is rated at least AA by S&P or Aa by Moody's. These instruments
may include corporate bonds and notes (corporate obligations that mature, or
that may be redeemed, in one year or less). These corporate obligations
include variable rate master notes, which are redeemable upon notice and
permit investment of fluctuating amounts at varying rates of interest
pursuant to direct arrangements with the issuer of the instrument.

/ / REPURCHASE AGREEMENTS SECURED BY ANY OF THE FOREGOING. A repurchase
agreement is a transaction in which the Fund purchases a security from a
bank or recognized securities dealer and simultaneously commits to resell
that security to the bank or dealer at an agreed-upon price, date and market
rate of interest unrelated to the coupon rate or maturity of the purchased
security. Although repurchase agreements carry certain risks not associated
with direct investments in securities, including possible decline in the
market value of the underlying securities and delays and costs to the Fund
if the other party to the repurchase agreement becomes bankrupt, the Fund
will enter into repurchase agreements only with banks and dealers believed
by the Sub-adviser to present minimal credit risks in accordance with
guidelines approved by the Board. The Sub-adviser will review and monitor
the creditworthiness of such institutions under the Board's general
supervision. The Fund will not enter into repurchase agreements with
maturities of more than seven days if, as a result, more than 10% of the
value of its net assets would be invested in such repurchase agreements and
other illiquid securities.

INVESTMENT TECHNIQUES. In managing the Fund, the Sub-adviser may employ a number
of professional money management techniques, including varying the composition
of the Fund's investments and the average weighted maturity of the Fund's
portfolio within the limitations described above. Determinations to use such
techniques will be based on the Sub-adviser's identification and assessment of
the relative values of various money market instruments and the future of
interest rate patterns, economic conditions and shifts in fiscal and monetary
policy. The Sub-adviser also may seek to improve the Fund's yield by purchasing
or selling securities in order to take advantage of yield disparities that
regularly occur in the market. For example, frequently there are yield
disparities between different types of money market instruments, and market
conditions from time to time result in similar securities trading at different
prices.

RISKS AND OTHER CONSIDERATIONS. Investors should recognize that in periods of
declining interest rates, the Fund's yield will tend to be somewhat higher than
prevailing market rates; conversely, in periods of rising interest rates, the
Fund's yield will tend to be somewhat lower than those rates. Also, when
interest rates are falling, the net new money flowing into the Fund from the net
sale of its shares likely will be invested in instruments producing lower yields
than the balance of the Fund's portfolio, thereby reducing its yield. The
opposite generally will be true in periods of rising interest rates. The Fund is
designed to provide maximum current income consistent with the liquidity and
safety of principal afforded by investment in a portfolio of high quality money
market instruments; the Fund's yield may be lower than that produced by funds
investing in lower quality and/or longer-term securities.

Although the Fund may invest in instruments of non-U.S. issuers, all such
instruments will be denominated in U.S. dollars and will be first tier
securities. Obligations of non-U.S. issuers are subject to the same risks that
pertain to domestic issues, notably credit risk, market risk and liquidity risk.
Nonetheless, these instruments present risks that are different from those
presented by investment in instruments of U.S. issuers. Obligations of foreign
entities may be subject to certain sovereign risks, including adverse political
and economic developments in a foreign country, the extent and quality of
government regulation of financial markets and institutions, interest
limitations, currency controls, foreign withholding taxes, and expropriation or
nationalization of foreign issuers and their assets. There may be less publicly
available information about foreign issuers than about domestic issuers, and
foreign issuers may not be subject to the same accounting, auditing and
financial recordkeeping standards and requirements as are domestic issuers.
Accordingly, while the Fund's ability to invest in these instruments may provide
it with the potential to produce a higher yield than money market funds
investing solely in instruments of domestic issuers, the Fund presents greater
risk than such other funds.

VARIABLE AND FLOATING RATE SECURITIES. The Fund may purchase variable and
floating rate securities with remaining maturities in excess of 13 months. Such
securities must comply with conditions established by the SEC under which they
may be considered to have remaining maturities of

Prospectus Page 8
<PAGE>
AIM DOLLAR FUND
13 months or less. The yield of these securities varies in relation to changes
in specific money market rates such as the prime rate. These changes are
reflected in adjustments to the yields of the variable and floating rate
securities, and different securities may have different adjustment rates. To the
extent that the Fund invests in such variable and floating rate securities, it
is the Sub-adviser's view that the Fund may be able to take advantage of the
higher yield that is usually paid on longer-term securities. The Sub-adviser
further believes that the variable and floating rates paid on such securities
may substantially reduce the wide fluctuations in market value caused by
interest rate changes and other factors which are typical of longer-term debt
securities.

OTHER INFORMATION. The Fund may acquire participation interests in securities in
which it is permitted to invest. Participation interests are pro rata interests
in securities held by others. Pending investment of proceeds from new sales of
Fund shares or for temporary defensive purposes, the Fund may hold any portion
of its assets in cash. The Fund may borrow money from banks as a temporary
measure (a) for extraordinary or emergency purposes in amounts up to 5% of its
net assets (taken at market value) or (b) in amounts up to 33 1/3% of its net
assets in order to meet redemption requests. The Fund will not purchase
securities while borrowings remain outstanding. The Fund may invest no more than
5% of its total assets in the securities of a single issuer (other than
securities issued or guaranteed by the U.S. government, its agencies, or
instrumentalities).

The Fund's investment objective and policies with respect to borrowing as stated
above are fundamental and may not be changed without the approval of a majority
of its outstanding voting securities. A "majority of the Fund's outstanding
voting securities" means the lesser of (i) 67% of its shares represented at a
meeting at which more than 50% of the outstanding shares are represented, and
(ii) more than 50% of its outstanding shares. In addition, the Fund has adopted
certain investment limitations that also may not be changed without shareholder
approval. A description of these limitations is included in the Statement of
Additional Information. The Fund's other investment policies described herein
are not fundamental and may be changed by vote of the Board without shareholder
approval.

If a percentage restriction on investment or utilization of assets in an
investment policy or restriction is adhered to at the time an investment is
made, a later change in percentage ownership of a security or kind of securities
resulting from changing market values or a similar type of event will not be
considered a violation of the Fund's investment policies or restrictions.

- --------------------------------------------------------------------------------

MANAGEMENT

- --------------------------------------------------------------------------------

The Trust's Board of Trustees has overall responsibility for the operation of
the Fund. The Trust's Board of Trustees has approved all significant agreements
between the Trust on the one side and persons or companies furnishing services
to the Fund on the other, including the investment management and administrative
services agreement with AIM, the investment sub-advisory and sub-administration
agreement between AIM and the Sub-adviser, the agreements with AIM Distributors
regarding distribution of the Fund's shares, the custody agreement and the
transfer agency agreement. The day-to-day operations of the Fund are delegated
to the officers of the Trust, subject always to the objective and policies of
the Fund and to the general supervision of the Trust's Board of Trustees. See
"Trustees and Executive Officers" in the Statement of Additional Information for
information on the Trustees.

INVESTMENT MANAGEMENT AND ADMINISTRATION. Services provided by AIM and the
Sub-adviser as the Fund's investment managers and administrators include
determining the composition of the Fund's portfolio and placing orders to buy,
sell or hold particular securities; furnishing corporate officers and clerical
staff; providing office space, services and equipment; and supervising all
matters relating to the Fund's operation. For these services, the Fund pays AIM
management and administration fees, computed daily and paid monthly, at the
annualized rate of 0.50% of the Fund's average daily net assets. Out of the
aggregate fees payable

Prospectus Page 9
<PAGE>
AIM DOLLAR FUND

by the Fund, AIM pays the Sub-adviser sub-advisory and sub-administration fees
equal to 40% of the aggregate fees AIM receives from the Fund. The Fund pays all
expenses not assumed by AIM, the Sub-adviser, AIM Distributors or other agents.
AIM has undertaken to limit the Fund's expenses (exclusive of brokerage
commissions, interest, taxes and extraordinary expenses) to the annual rate of
1.00% and 1.75% of the average daily net assets of the Fund's Class A and Class
B shares, respectively.

The Sub-adviser also serves as the Fund's pricing and accounting agent. For
these services the Sub-adviser receives a fee consisting of 0.03% of the first
$5 billion of assets, and 0.02% of the assets in excess of $5 billion, of the
AIM Funds that are sub-advised by the Sub-adviser (other than AIM Eastern Europe
Fund). Each of these funds, including the Fund, pays an amount based upon its
relative net assets.

AIM, 11 Greenway Plaza, Suite 100, Houston, Texas 77046, serves as the
investment manager to the Fund pursuant to a master investment management and
administration agreement, dated as of May 29, 1998 (the "Advisory Agreement").
AIM was organized in 1976 and, together with its subsidiaries, manages or
advises approximately 90 investment company portfolios encompassing a broad
range of investment objectives. The Sub-adviser, 50 California Street, 27th
Floor, San Francisco, California 94111, and 1166 Avenue of the Americas, New
York, New York 10036, serves as the sub-adviser to the Fund pursuant to an
investment sub-advisory and sub-administration agreement dated as of May 29,
1998. Prior to May 29, 1998, the Sub-adviser was known as Chancellor LGT Asset
Management, Inc. On May 29, 1998, Liechtenstein Global Trust AG ("LGT"), the
former indirect parent organization of the Sub-adviser, consummated a purchase
agreement with AMVESCAP PLC pursuant to which AMVESCAP PLC acquired LGT's Asset
Management Division, which included the Sub-adviser and certain other
affiliates. As a result of this transaction, the Sub-adviser is now an indirect
wholly owned subsidiary of AMVESCAP PLC. Prior to the sale, the Sub-adviser and
its worldwide asset management affiliates provided investment management and/or
administrative services to institutional, corporate and individual clients
around the world since 1969.

AIM and the Sub-adviser and their worldwide asset management affiliates provide
investment management and/or administrative services to institutional, corporate
and individual clients around the world. AIM and the Sub-adviser are both
indirect wholly owned subsidiaries of AMVESCAP PLC. AMVESCAP PLC and its
subsidiaries are an independent investment management group that has a
significant presence in the institutional and retail segment of the investment
management industry in North America and Europe, and a growing presence in Asia.

In addition to the investment resources of their Houston, San Francisco and New
York offices, AIM and the Sub-adviser draw upon the expertise, personnel, data
and systems of other offices in Atlanta, Boston, Dallas, Denver, Louisville,
Miami, Portland (Oregon), Frankfurt, Hong Kong, London, Singapore, Sydney, Tokyo
and Toronto. In managing the Fund, the Sub-adviser employs a team approach,
taking advantage of its investment resources around the world.

In placing orders for the Fund's portfolio securities transactions, the
Sub-adviser seeks to obtain the best net results. Consistent with its obligation
to obtain the best net results, the Sub-adviser may consider a broker/dealer's
sale of shares of the AIM Funds as a factor in considering through whom
portfolio transactions will be effected.

DISTRIBUTOR. The Trust has entered into master distribution agreements relating
to the Fund (the "Distribution Agreements."), dated May 29, 1998, with AIM
Distributors, a registered broker-dealer and a wholly owned subsidiary of AIM,
pursuant to which AIM Distributors acts as the distributor of Class A and Class
B shares of the Fund. Certain Trustees and officers of the Trust are affiliated
with AIM Distributors.

The Distribution Agreements provide AIM Distributors with the exclusive right to
distribute shares of the Fund directly and through institutions with whom AIM
Distributors has entered into selected dealer agreements. Under the Distribution
Agreement for the Class B shares, AIM Distributors sells Class B shares at net
asset value subject to a contingent deferred sales charge established by AIM
Distributors. AIM Distributors is authorized to advance to institutions through
whom Class B shares are sold a sales commission under schedules established by
AIM Distributors. The Distribution Agreement for the Class B shares provides
that AIM Distributors (or its assignee or transferee) will receive 0.75% (of the
total 1.00% payable under the distribution plan applicable to Class B shares) of
the Fund's average daily net assets attributable to Class B shares attributable
to the sales efforts of AIM Distributors. In the event the Class B

Prospectus Page 10
<PAGE>
AIM DOLLAR FUND

shares Distribution Agreement is terminated, AIM Distributors would continue to
receive payments of asset-based sales charges in respect of the outstanding
Class B shares attributable to the distribution efforts of AIM Distributors;
provided, however, that a complete termination of the Class B shares master
distribution plan (as defined in the plan) would terminate all payments to AIM
Distributors. Termination of the Class B shares distribution plan or
Distribution Agreement does not affect the obligation of Class B shareholders to
pay contingent deferred sales charges.

DISTRIBUTION PLANS. CLASS A PLAN. The Trust has adopted a Master Distribution
Plan applicable to Class A shares of the Fund (the "Class A Plan") pursuant to
Rule 12b-1 under the 1940 Act, to compensate AIM Distributors for the purpose of
financing any activity that is intended to result in the sale of Class A shares
of the Fund.

Under the Class A Plan, the Trust may compensate AIM Distributors an aggregate
amount of 0.25% of the average daily net assets of Class A shares of the Fund
[on an annualized basis].

The Class A Plan is designed to compensate AIM Distributors, on a quarterly
basis, for certain promotional and other sales-related costs, and to implement a
dealer incentive program which provides for periodic payments to selected
dealers who furnish continuing personal shareholder services to their customers
who purchase and own Class A shares of the Fund. Payments can also be directed
by AIM Distributors to selected institutions who have entered into service
agreements with respect to Class A shares of the Fund and who provide continuing
personal shareholder services to their customers who own Class A shares of the
Fund. The service fees payable to selected institutions are calculated at the
annual rate of 0.25% of the average daily net asset value of those Fund shares
that are held in such institution's customers' accounts which were purchased on
or after a prescribed date set forth in the Plan.

Of the aggregate amount payable under the Class A Plan, payments to dealers and
other financial institutions that provide continuing personal shareholder
services to their customers who purchase and own shares of the Fund, in amounts
of up to 0.25% of the average net assets of such Fund attributable to the
customers of such dealers or financial institutions are characterized as a
service fee, and payments to dealers and other financial institutions in excess
of such amount and payments to AIM Distributors would be characterized as an
asset-based sales charge pursuant to the Class A Plan. The Class A Plan also
imposes a cap on the total amount of sales charges, including asset-based sales
charges, that may be paid by the Trust with respect to the Fund. The Class A
Plan does not obligate the Fund to reimburse AIM Distributors for the actual
expenses AIM Distributors may incur in fulfilling its obligations under the
Class A Plan on behalf of the Fund. Thus, under the Class A Plan, even if AIM
Distributors' actual expenses exceed the fee payable to AIM Distributors
thereunder at any given time, the Fund will not be obligated to pay more than
that fee. If AIM Distributors' expenses are less than the fee it receives, AIM
Distributors will retain the full amount of the fee.

CLASS B PLAN. The Trust has also adopted a Master Distribution Plan applicable
to Class B shares of the Fund (the "Class B Plan"). Under the Class B Plan, the
Fund pays distribution expenses at an annual rate of 1.00% of the average daily
net assets attributable to the Fund's Class B shares. Of such amount, the Fund
pays a service fee of 0.25% of the average daily net assets attributable to the
Fund's Class B shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
Class B shares of the Fund. Any amounts not paid as a service fee would
constitute an asset-based sales charge. Amounts paid in accordance with the
Class B Plan with respect to the Fund may be used to finance any activity
primarily intended to result in the sale of Class B shares of the Fund.

BOTH PLANS. Activities that may be financed under the Class A Plan and the Class
B Plan (collectively, the "Plans") include, but are not limited to: printing of
prospectuses and statements of additional information and reports for other than
existing shareholders, overhead, preparation and distribution of advertising
material and sales literature, supplemental payments to dealers and other
institutions such as asset-based sales charges or as payments of service fees
under shareholder service arrangements, and the cost of administering the Plans.
These amounts payable by the Fund under the Plans need not be directly related
to the expenses actually incurred by AIM Distributors on behalf of the Fund.
Thus, even if AIM Distributors' actual expenses exceed the fee payable to AIM
Distributors thereunder at any given time, the Trust will not be obligated to
pay more than that fee, and if AIM Distributors' expenses are less

Prospectus Page 11
<PAGE>
AIM DOLLAR FUND

than the fee it receives, AIM Distributors will retain the full amount of the
fee. Payments pursuant to the Plans are subject to any applicable limitations
imposed by rules of the National Association of Securities Dealers, Inc.

Each of the Plans may be terminated at any time by a vote of the majority of
those trustees who are not "interested persons" of the Trust or by a vote of the
holders of the majority of the outstanding shares of the applicable class.

Under the Plans, AIM Distributors may in its discretion from time to time agree
to waive voluntarily all or any portion of its fee that has not been assigned or
transferred, while retaining its ability to be reimbursed for such fee prior to
the end of each fiscal year.

Under the Plans, certain financial institutions which have entered into service
agreements and which sell shares of the Fund on an agency basis, may receive
payments from the Fund pursuant to the respective Plans. AIM Distributors does
not act as principal, but rather as agent for the Fund, in making such payments.

For additional information concerning the operation of the Plans see the
Statement of Additional Information.

- --------------------------------------------------------------------------------

OTHER INFORMATION

- --------------------------------------------------------------------------------

ORGANIZATION OF THE TRUST. The Trust was organized as a Delaware business trust
on May 7, 1998. On September 4, 1998, the Trust acquired the assets of and
assumed the liabilities of AIM Investment Portfolios, Inc., a Maryland
Corporation.

From time to time the Trust may establish additional funds, each corresponding
to a distinct investment portfolio and a distinct series of the Trust's shares
of beneficial interest. Shares of each fund are entitled to one vote per share
(with proportional voting for fractional shares) and are freely transferable.
Shareholders have no preemptive rights. Other than the automatic conversion of
Class B shares to Class A shares, there are no conversion rights.

On any matter submitted to a vote of shareholders, shares of the Fund will be
voted by the Fund's shareholders individually when the matter affects the
specific interest of the Fund only, such as approval of its investment
management arrangements. In addition, shares of a particular class of the Fund
may vote on matters affecting only that class. The shares of the Fund and the
Trust's other series will be voted in the aggregate on other matters, such as
the election of Trustees and ratification of the selection of the Trust's
independent accountants.

Normally there will be no annual meeting of shareholders in any year, except as
required under the 1940 Act. Shares of the Fund and the Trust's other series do
not have cumulative voting rights, which means that the holders of a majority of
the shares voting for the election of Trustees can elect all the Trustees. A
Trustee may be removed at any meeting of the shareholders of the Trust by a vote
of the shareholders owning at least two-thirds of the outstanding shares. Any
Trustee may call a special meeting of shareholders for any purpose. Furthermore,
Trustees shall promptly call a meeting of shareholders solely for the purpose of
removing one or more Trustees when requested in writing to do so by shareholders
holding 10% of the Trust's outstanding shares.

Pursuant to the Trust's Agreement and Declaration of Trust, the Trust may issue
an unlimited number of shares for the Fund. Each share of the Fund represents an
interest in the Fund only, has a par value of $0.01 per share, represents an
equal proportionate interest in the Fund with other shares of the Fund and is
entitled to such dividends and distributions out of the income earned and gain
realized on the assets belonging to the Fund as may be declared by the Board of
Trustees. Each share of the Fund is equal as to earnings, assets and voting
privileges to each other share in the Fund, except that each normally has
exclusive voting rights with respect to its distribution plan and bears the
expenses, if any, related to the distribution of its shares. Shares of the Fund,
when issued, are fully paid and nonassessable.

COUNSEL. The law firm of Kirkpatrick & Lockhart LLP, 1800 Massachusetts Avenue,
N.W., Washington, D.C. 20036-1800, acts as counsel to the Trust, and to the
Fund.

Prospectus Page 12
<PAGE>
AIM INVESTOR'S GUIDE

The toll-free number for access to routine account information and to
shareholder assistance is
(800) 959-4246 (7:30 a.m. to 6:00 p.m. Central Time).

INVESTOR'S GUIDE TO
THE AIM FAMILY OF FUNDS-REGISTERED TRADEMARK-

- --------------------------------------------------------------------------------

INTRODUCTION TO THE AIM FAMILY OF FUNDS

THE AIM FAMILY OF FUNDS consists of the following mutual funds:

<TABLE>
<S> <C>
AIM ADVISOR FLEX FUND AIM GLOBAL RESOURCES FUND
AIM ADVISOR INTERNATIONAL VALUE FUND AIM GLOBAL TELECOMMUNICATIONS FUND
AIM ADVISOR LARGE CAP VALUE FUND AIM GLOBAL TRENDS FUND
AIM ADVISOR MULTIFLEX FUND AIM GLOBAL UTILITIES FUND
AIM ADVISOR REAL ESTATE FUND AIM HIGH INCOME MUNICIPAL FUND
AIM AGGRESSIVE GROWTH FUND AIM HIGH YIELD FUND
AIM AMERICA VALUE FUND AIM INCOME FUND
AIM ASIAN GROWTH FUND AIM INTERMEDIATE GOVERNMENT FUND
AIM BALANCED FUND AIM INTERNATIONAL EQUITY FUND
AIM BLUE CHIP FUND AIM INTERNATIONAL GROWTH FUND
AIM CAPITAL DEVELOPMENT FUND AIM JAPAN GROWTH FUND
AIM CHARTER FUND AIM LATIN AMERICAN GROWTH FUND
AIM CONSTELLATION FUND AIM LIMITED MATURITY TREASURY FUND
AIM DEVELOPING MARKETS FUND AIM MID CAP GROWTH FUND
AIM DOLLAR FUND(*) AIM MONEY MARKET FUND(*)
AIM EMERGING MARKETS FUND AIM MUNICIPAL BOND FUND
AIM EUROPEAN DEVELOPMENT FUND AIM NEW PACIFIC GROWTH FUND
AIM EUROPE GROWTH FUND AIM SELECT GROWTH FUND
AIM GLOBAL AGGRESSIVE GROWTH FUND AIM SMALL CAP EQUITY FUND
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND AIM SMALL CAP OPPORTUNITIES FUND
AIM GLOBAL FINANCIAL SERVICES FUND AIM STRATEGIC INCOME FUND
AIM GLOBAL GOVERNMENT INCOME FUND AIM TAX-EXEMPT BOND FUND OF CONNECTICUT
AIM GLOBAL GROWTH FUND AIM TAX-EXEMPT CASH FUND(*)
AIM GLOBAL GROWTH & INCOME FUND AIM TAX-FREE INTERMEDIATE FUND
AIM GLOBAL HEALTH CARE FUND AIM VALUE FUND
AIM GLOBAL HIGH INCOME FUND AIM WEINGARTEN FUND
AIM GLOBAL INCOME FUND AIM WORLDWIDE GROWTH FUND
AIM GLOBAL INFRASTRUCTURE FUND
</TABLE>

(*) Class A shares of AIM TAX-EXEMPT CASH FUND and AIM DOLLAR FUND and AIM Cash
Reserve Shares of AIM MONEY MARKET FUND are offered to investors at net
asset value, without payment of a sales charge, as described below. Other
funds, including the Class A, Class B and Class C shares of AIM MONEY MARKET
FUND, are sold with an initial sales charge or subject to a contingent
deferred sales charge upon redemption, as described below.

IT IS IMPORTANT FOR SHAREHOLDERS CONSIDERING AN EXCHANGE TO CAREFULLY REVIEW
THE PROSPECTUS OF THE FUND WHOSE SHARES WILL BE ACQUIRED IN AN EXCHANGE. THIS
PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL SHARES OF ANY FUND OTHER THAN
THE FUND(S) NAMED ON THE COVER PAGE OF THIS PROSPECTUS.
- --------------------------------------------------------------------------------

HOW TO PURCHASE SHARES

HOW TO OPEN AN ACCOUNT. In order to purchase shares of any of The AIM
Family of Funds ("AIM Funds"), an investor must submit a fully completed new
Account Application form directly to A I M Fund Services, Inc. ("AFS" or the
"Transfer Agent") or through any dealer authorized by A I M Distributors, Inc.
("AIM Distributors") to sell shares of the AIM Funds.

Accounts submitted without a correct, certified taxpayer identification
number or, alternatively, a completed Internal Revenue Service ("IRS") Form W-8
(for non-resident aliens) or Form W-9 (certifying exempt status) accompanying
the registration information will be subject to backup withholding. See the
Account Application for applicable IRS penalties. The minimum initial investment
is $500, except for accounts initially established through an Automatic
Investment Plan, which requires a special authorization form (see "Special
Plans") and for certain retirement accounts. The minimum initial investment for
accounts established with an Automatic Investment Plan is $50. The minimum
initial investment for an Individual Retirement Arrangement ("IRA") or Roth IRA
is $250. There are no minimum initial investment requirements applicable to
money-purchase/profit-sharing plans, 401(k) plans, Simplified Employee Pension
("SEP") accounts, Savings Incentive Match Plans for Employee IRA ("SIMPLE IRA")
accounts, 403(b) plans or 457 (state deferred compensation) plans (except that
the minimum initial investment for salary deferrals for such

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AIM INVESTOR'S GUIDE

plans is $25), or for investment of dividends and distributions of any of the
AIM Funds into any existing AIM Funds account.

AFS' mailing address is:

A I M Fund Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

For additional information or assistance, investors should call the Client
Services Department of AFS at:

(800) 959-4246

Shares of any AIM Funds not named on the cover of this Prospectus, as well
as Advisor Class shares of certain AIM Funds, are offered pursuant to separate
prospectuses. Copies of other prospectuses may be obtained by calling (800)
347-4246.

INITIAL AND SUBSEQUENT PURCHASES BY WIRE: To insure prompt credit to his
account, an investor or his dealer should call AFS' Client Services Department
at (800) 959-4246 prior to sending a wire to receive a reference number for the
wire. The following wire instructions should be used:

<TABLE>
<S> <C>
Beneficiary Bank ABA/Routing #: 113000609
Beneficiary Account Number: 00100366807
Beneficiary Account Name: A I M Fund Services, Inc.
RFB: Fund name, Reference Number (16 character limit)
OBI: Shareholder Name, Shareholder Account Number
(70 character limit)
</TABLE>

HOW TO PURCHASE ADDITIONAL SHARES. Additional shares may be purchased
directly through AIM Distributors or through any dealer who has entered into an
agreement with AIM Distributors. The minimum investment for subsequent purchases
is $50. The minimum employee salary deferral investment for participants in
money-purchase/profit sharing plans, 401(k), IRA/SEP, 403(b) or 457 plans is
$25. There are no such minimum investment requirements for investment of
dividends and distributions of any of the AIM Funds into any other existing AIM
Funds account.

BY MAIL: Investors must indicate their account number and the name of the
Fund being purchased. The remittance slip from a confirmation statement should
be used for this purpose, and sent to AFS.

BY AIM BANK CONNECTION-SM-: To purchase additional shares by electronic
funds transfer, please contact the Client Services Department of AFS for
details.
- --------------------------------------------------------------------------------
TERMS AND CONDITIONS OF PURCHASE OF THE AIM FUNDS

Shares of the AIM Funds, including Class A shares (the "Class A shares") of
AIM ADVISOR FLEX FUND, AIM ADVISOR INTERNATIONAL VALUE FUND, AIM ADVISOR LARGE
CAP VALUE FUND, AIM ADVISOR MULTIFLEX FUND, AIM ADVISOR REAL ESTATE FUND, AIM
AGGRESSIVE GROWTH FUND, AIM AMERICA VALUE FUND, AIM ASIAN GROWTH FUND, AIM
BALANCED FUND, AIM BLUE CHIP FUND, AIM CAPITAL DEVELOPMENT FUND, AIM CHARTER
FUND, AIM CONSTELLATION FUND, AIM DEVELOPING MARKETS FUND, AIM DOLLAR FUND, AIM
EMERGING MARKETS FUND, AIM EUROPEAN DEVELOPMENT FUND, AIM EUROPE GROWTH FUND,
AIM GLOBAL AGGRESSIVE GROWTH FUND, AIM GLOBAL CONSUMER PRODUCTS AND SERVICES
FUND, AIM GLOBAL FINANCIAL SERVICES FUND, AIM GLOBAL GOVERNMENT INCOME FUND, AIM
GLOBAL GROWTH FUND, AIM GLOBAL GROWTH & INCOME FUND, AIM GLOBAL HEALTH CARE
FUND, AIM GLOBAL HIGH INCOME FUND, AIM GLOBAL INCOME FUND, AIM GLOBAL
INFRASTRUCTURE FUND, AIM GLOBAL RESOURCES FUND, AIM GLOBAL TELECOMMUNICATIONS
FUND, AIM GLOBAL TRENDS FUND, AIM GLOBAL UTILITIES FUND, AIM HIGH INCOME
MUNICIPAL FUND, AIM HIGH YIELD FUND, AIM INCOME FUND, AIM INTERMEDIATE
GOVERNMENT FUND, AIM INTERNATIONAL EQUITY FUND, AIM INTERNATIONAL GROWTH FUND,
AIM JAPAN GROWTH FUND, AIM LATIN AMERICAN GROWTH FUND, AIM LIMITED MATURITY
TREASURY FUND, AIM MID CAP GROWTH FUND, AIM MONEY MARKET FUND, AIM MUNICIPAL
BOND FUND, AIM NEW PACIFIC GROWTH FUND, AIM SELECT GROWTH FUND, AIM SMALL CAP
EQUITY FUND, AIM SMALL CAP OPPORTUNITIES FUND, AIM STRATEGIC INCOME FUND, AIM
TAX-EXEMPT BOND FUND OF CONNECTICUT, AIM TAX-EXEMPT CASH FUND, AIM TAX-FREE
INTERMEDIATE FUND, AIM VALUE FUND, AIM WEINGARTEN FUND and AIM WORLDWIDE GROWTH
FUND, collectively (other than AIM AGGRESSIVE GROWTH FUND, AIM LIMITED MATURITY
TREASURY FUND, AIM TAX-EXEMPT BOND FUND OF CONNECTICUT, AIM TAX-EXEMPT CASH FUND
and AIM TAX-FREE INTERMEDIATE FUND), the "Multiple Class Funds," may be
purchased at their respective net asset value plus a sales charge as indicated
below, except that Class A shares of AIM DOLLAR FUND and AIM TAX-EXEMPT

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AIM INVESTOR'S GUIDE

CASH FUND and AIM Cash Reserve Shares of AIM MONEY MARKET FUND are sold without
a sales charge and Class B shares (the "Class B shares") and Class C shares (the
"Class C shares") of the Multiple Class Funds which offer such classes are sold
at net asset value subject to a contingent deferred sales charge payable upon
certain redemptions. Class B shares of AIM DOLLAR FUND, however, may be acquired
only by an exchange of shares of another AIM Fund. These contingent deferred
sales charges are described under the caption "How to Redeem Shares -- Multiple
Distribution System." Securities dealers and other persons entitled to receive
compensation for selling or servicing shares of a Multiple Class Fund may
receive different compensation for selling or servicing one particular class of
shares over another class in the same Multiple Class Fund. Factors an investor
should consider prior to purchasing Class A, Class B or Class C shares (or, if
applicable, AIM Cash Reserve Shares) of a Multiple Class Fund are described
below under "Special Information Relating to Multiple Class Funds." For
information on purchasing any of the AIM Funds and to receive a prospectus,
please call (800) 347-4246. As described below, the sales charge otherwise
applicable to a purchase of shares of a fund may be reduced if certain
conditions are met. In order to take advantage of a reduced sales charge, the
prospective investor or his dealer must advise AIM Distributors that the
conditions for obtaining a reduced sales charge have been met. Net asset value
is determined in the manner described under the caption "Determination of Net
Asset Value."

The following Multiple Class Funds sometimes are referred to herein as the
"AIM/GT Funds": AIM AMERICA VALUE FUND, AIM DEVELOPING MARKETS FUND, AIM DOLLAR
FUND, AIM EMERGING MARKETS FUND, AIM EUROPE GROWTH FUND, AIM GLOBAL CONSUMER
PRODUCTS AND SERVICES FUND, AIM GLOBAL FINANCIAL SERVICES FUND, AIM GLOBAL
GOVERNMENT INCOME FUND, AIM GLOBAL GROWTH & INCOME FUND, AIM GLOBAL HEALTH CARE
FUND, AIM GLOBAL HIGH INCOME FUND, AIM GLOBAL INFRASTRUCTURE FUND, AIM GLOBAL
RESOURCES FUND, AIM GLOBAL TELECOMMUNICATIONS FUND, AIM GLOBAL TRENDS FUND, AIM
INTERNATIONAL GROWTH FUND, AIM JAPAN GROWTH FUND, AIM LATIN AMERICAN GROWTH
FUND, AIM MID CAP GROWTH FUND, AIM NEW PACIFIC GROWTH FUND, AIM SMALL CAP EQUITY
FUND, AIM STRATEGIC INCOME FUND and AIM WORLDWIDE GROWTH FUND.

The following tables show the sales charge and dealer concession at various
investment levels for the AIM Funds.

SALES CHARGES AND DEALER CONCESSIONS

GROUP I. Certain AIM Funds are currently sold with a sales charge ranging
from 5.50% to 2.00% of the offering price on purchases of less than $1,000,000.
These AIM Funds include Class A shares of each of AIM ADVISOR FLEX FUND, AIM
ADVISOR INTERNATIONAL VALUE FUND, AIM ADVISOR LARGE CAP VALUE FUND, AIM ADVISOR
MULTIFLEX FUND, AIM AGGRESSIVE GROWTH FUND, AIM AMERICA VALUE FUND, AIM ASIAN
GROWTH FUND, AIM BLUE CHIP FUND, AIM CAPITAL DEVELOPMENT FUND, AIM CHARTER FUND,
AIM CONSTELLATION FUND, AIM EUROPEAN DEVELOPMENT FUND, AIM EUROPE GROWTH FUND,
AIM GLOBAL UTILITIES FUND, AIM GLOBAL GROWTH & INCOME FUND, AIM INTERNATIONAL
EQUITY FUND, AIM INTERNATIONAL GROWTH FUND, AIM JAPAN GROWTH FUND, AIM MID CAP
GROWTH FUND, AIM MONEY MARKET FUND, AIM NEW PACIFIC GROWTH FUND, AIM SELECT
GROWTH FUND, AIM SMALL CAP EQUITY FUND, AIM SMALL CAP OPPORTUNITIES FUND, AIM
VALUE FUND, AIM WEINGARTEN FUND and AIM WORLDWIDE GROWTH FUND.

<TABLE>
<CAPTION>
DEALER
INVESTOR'S SALES CHARGE CONCESSION
---------------------------- -------------
AS A AS A AS A
PERCENTAGE PERCENTAGE PERCENTAGE
OF THE OF THE OF THE
PUBLIC NET PUBLIC
OFFERING AMOUNT OFFERING
AMOUNT OF INVESTMENT IN SINGLE TRANSACTION PRICE INVESTED PRICE
- --------------------------------------------------------------------------------- ------------- ------------- -------------
<S> <C> <C> <C>
Less than $25,000................................................................ 5.50 % 5.82 % 4.75 %
$25,000 but less than $50,000.................................................... 5.25 5.54 4.50
$50,000 but less than $100,000................................................... 4.75 4.99 4.00
$100,000 but less than $250,000.................................................. 3.75 3.90 3.00
$250,000 but less than $500,000.................................................. 3.00 3.09 2.50
$500,000 but less than $1,000,000................................................ 2.00 2.04 1.60
</TABLE>

There is no sales charge on purchases of $1,000,000 or more; however, AIM
Distributors may pay a dealer concession and/or advance a service fee on such
transactions. See "All Groups of AIM Funds." PURCHASES OF $1,000,000 OR MORE ARE
AT NET ASSET VALUE, SUBJECT TO A CONTINGENT DEFERRED SALES CHARGE OF 1% IF
SHARES ARE REDEEMED PRIOR TO 18 MONTHS FROM THE DATE SUCH SHARES WERE PURCHASED,
AS DESCRIBED UNDER THE CAPTION "HOW TO REDEEM SHARES -- CONTINGENT DEFERRED
SALES CHARGE PROGRAM FOR LARGE PURCHASES."

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AIM INVESTOR'S GUIDE

GROUP II. Certain AIM Funds are currently sold with a sales charge ranging
from 4.75% to 2.00% of the offering price on purchases of less than $1,000,000.
These AIM Funds are: the Class A shares of each of AIM ADVISOR REAL ESTATE FUND,
AIM BALANCED FUND, AIM DEVELOPING MARKETS FUND, AIM EMERGING MARKETS FUND, AIM
GLOBAL AGGRESSIVE GROWTH FUND, AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND,
AIM GLOBAL FINANCIAL SERVICES FUND, AIM GLOBAL GOVERNMENT INCOME FUND, AIM
GLOBAL GROWTH FUND, AIM GLOBAL HEALTH CARE FUND, AIM GLOBAL HIGH INCOME FUND,
AIM GLOBAL INCOME FUND, AIM GLOBAL INFRASTRUCTURE FUND, AIM GLOBAL RESOURCES
FUND, AIM GLOBAL TELECOMMUNICATIONS FUND, AIM GLOBAL TRENDS FUND, AIM HIGH
INCOME MUNICIPAL FUND, AIM HIGH YIELD FUND, AIM INCOME FUND, AIM INTERMEDIATE
GOVERNMENT FUND, AIM LATIN AMERICAN GROWTH FUND, AIM MUNICIPAL BOND FUND, AIM
STRATEGIC INCOME FUND and AIM TAX-EXEMPT BOND FUND OF CONNECTICUT.

<TABLE>
<CAPTION>
DEALER
INVESTOR'S SALES CHARGE CONCESSION
---------------------------- -------------
AS A AS A AS A
PERCENTAGE PERCENTAGE PERCENTAGE
OF THE OF THE OF THE
PUBLIC NET PUBLIC
OFFERING AMOUNT OFFERING
AMOUNT OF INVESTMENT IN SINGLE TRANSACTION PRICE INVESTED PRICE
- --------------------------------------------------------------------------------- ------------- ------------- -------------
<S> <C> <C> <C>
Less than $50,000................................................................ 4.75 % 4.99 % 4.00 %
$50,000 but less than $100,000................................................... 4.00 4.17 3.25
$100,000 but less than $250,000.................................................. 3.75 3.90 3.00
$250,000 but less than $500,000.................................................. 2.50 2.56 2.00
$500,000 but less than $1,000,000................................................ 2.00 2.04 1.60
</TABLE>

GROUP III. Certain AIM Funds are currently sold with a sales charge ranging
from 1.00% to 0.50% of the offering price on purchases of less than $1,000,000.
These AIM Funds are the Class A shares of each of AIM LIMITED MATURITY TREASURY
FUND and AIM TAX-FREE INTERMEDIATE FUND.

<TABLE>
<CAPTION>
DEALER
INVESTOR'S SALES CHARGE CONCESSION
---------------------------- -------------
AS A AS A AS A
PERCENTAGE PERCENTAGE PERCENTAGE
OF THE OF THE OF THE
PUBLIC NET PUBLIC
OFFERING AMOUNT OFFERING
AMOUNT OF INVESTMENT IN SINGLE TRANSACTION PRICE INVESTED PRICE
- --------------------------------------------------------------------------------- ------------- ------------- -------------
<S> <C> <C> <C>
Less than $100,000............................................................... 1.00 % 1.01 % 0.75 %
$100,000 but less than $250,000.................................................. 0.75 0.76 0.50
$250,000 but less than $1,000,000................................................ 0.50 0.50 0.40
</TABLE>

There is no sales charge on purchases of $1,000,000 or more; however, AIM
Distributors may pay a dealer concession and/or advance a service fee on such
transactions.

ALL GROUPS OF AIM FUNDS. AIM Distributors may elect to re-allow the entire
initial sales charge to dealers for all sales with respect to which orders are
placed with AIM Distributors during a particular period. Dealers to whom
substantially the entire sales charge is re-allowed may be deemed to be
"underwriters" as that term is defined under the Securities Act of 1933.

In addition to amounts paid to dealers as a dealer concession out of the
initial sales charge paid by investors, AIM Distributors may, from time to time,
at its expense or as an expense for which it may be compensated under a
distribution plan, if applicable, pay a bonus or other consideration or
incentive to dealers who sell a minimum dollar amount of the shares of the AIM
Funds during a specified period of time. In some instances, these incentives may
be offered only to certain dealers who have sold or may sell significant amounts
of shares. At the option of the dealer, such incentives may take the form of
payment for travel expenses, including lodging, incurred in connection with
trips taken by qualifying registered representatives and their families to
places within or outside the United States. The total amount of such additional
bonus

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AIM INVESTOR'S GUIDE
payments or other consideration shall not exceed 0.25% of the public offering
price of the shares sold. Any such bonus or incentive programs will not change
the price paid by investors for the purchase of the applicable AIM Fund's shares
or the amount that any particular AIM Fund will receive as proceeds from such
sales. Dealers may not use sales of the AIM Funds' shares to qualify for any
incentives to the extent that such incentives may be prohibited by the laws of
any state.

AIM Distributors may make payments to dealers and institutions who are
dealers of record for purchases of $1 million of more of Class A shares (or
shares which normally involve payment of initial sales charges), which are sold
at net asset value and are subject to a contingent deferred sales charge, for
all AIM Funds other than Class A shares of each of AIM LIMITED MATURITY TREASURY
FUND and AIM TAX-FREE INTERMEDIATE FUND as follows: 1% of the first $2 million
of such purchases, plus 0.80% of the next $1 million of such purchases, plus
0.50% of the next $17 million of such purchases, plus 0.25% of amounts in excess
of $20 million of such purchases. See "Contingent Deferred Sales Charge Program
for Large Purchases." AIM Distributors may make payments to dealers and
institutions who are dealers of record for purchases of $1 million or more of
Class A shares (or shares which normally involve payment of initial sales
charges), and which are sold at net asset value and are not subject to a
contingent deferred sales charge, in an amount up to 0.10% of such purchases of
Class A shares of AIM LIMITED MATURITY TREASURY FUND, and in an amount up to
0.25% of such purchases of Class A shares of AIM TAX-FREE INTERMEDIATE FUND.

AIM Distributors may pay sales commissions to dealers and institutions who
sell Class B shares of the AIM Funds at the time of such sales. Payments with
respect to Class B shares will equal 4.00% of the purchase price of the Class B
shares sold by the dealer or institution, and will consist of a sales commission
equal to 3.75% of the purchase price of the Class B shares sold plus an advance
of the first year service fee of 0.25% with respect to such shares. The portion
of the payments to AIM Distributors under the Class B Plan which constitutes an
asset-based sales charge (0.75%) is intended in part to permit AIM Distributors
to recoup a portion of such sales commissions plus financing costs.

AIM Distributors may pay sales commissions to dealers and institutions who
sell Class C shares of the AIM Funds at the time of such sales. Payments with
respect to Class C shares will equal 1.00% of the purchase price of the Class C
shares sold by the dealer or institution, and will consist of a sales commission
of 0.75% of the purchase price of the Class C shares sold plus an advance of the
first year service fee of 0.25% with respect to such shares. AIM Distributors
will retain all payments received by it relating to Class C shares for the first
year after they are purchased. The portion of the payments to AIM Distributors
under the Class A and C Plan attributable to Class C shares which constitutes an
asset-based sales charge (0.75%) is intended in part to permit AIM Distributors
to recoup a portion of on-going sales commissions to dealers plus financing
costs, if any. After the first full year, AIM Distributors will make such
payments quarterly to dealers and institutions based on the average net asset
value of Class C shares which are attributable to shareholders for whom the
dealers and institutions are designated as dealers of record. These commissions
on Class C shares are not paid on sales to investors exempt from the CDSC,
including Class C shareholders of record on April 30, 1995 who purchase
additional shares in any of the Funds on or after May 1, 1995, and in
circumstances where AIM Distributors grants an exemption on particular
transactions.

TIMING OF PURCHASE ORDERS. Orders for the purchase of shares of an AIM Fund
(other than AIM MONEY MARKET FUND, as described below) received prior to the
close of regular trading on the New York Stock Exchange ("NYSE"), which is
generally 4:00 p.m. Eastern Time (and which is hereinafter referred to as "NYSE
Close"), on any business day of an AIM Fund will be confirmed at the price next
determined. Orders received after NYSE Close will be confirmed at the price
determined on the next business day of the AIM Fund. Certain financial
institutions (or their designees) may be authorized to accept purchase orders on
behalf of the AIM Funds. Orders received by authorized institutions (or their
designees) before NYSE Close will be deemed to have been received by an AIM Fund
on such day and will be effected that day, provided that such orders are
transmitted to the Transfer Agent prior to the time set for receipt of such
orders. It is the responsibility of the dealer/financial institution to ensure
that all orders are transmitted on a timely basis to the Transfer Agent. Any
loss resulting from the dealer/financial institution's failure to submit an
order within the prescribed time frame will be borne by that dealer/financial
institution. Please see "How to Purchase Shares -- Purchases by Wire" for
information on obtaining a reference number for wire orders, which will
facilitate the handling of such orders and ensure prompt credit to an investor's
account. A "business day" of an AIM Fund is any day on which the NYSE is open
for business. It is expected that the NYSE will be closed

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AIM INVESTOR'S GUIDE
during the next twelve months on Saturdays and Sundays and on the days on which
New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day
are observed by the NYSE.

An investor who uses a check to purchase shares will be credited with the
full number of shares purchased at the time of receipt of the purchase order, as
previously described. However, in the event of a redemption or exchange of such
shares, the investor may be required to wait up to ten business days before the
redemption proceeds are sent. This delay is necessary in order to ensure that
the check has cleared. If the check does not clear, or if any investment order
must be cancelled due to nonpayment, the investor will be responsible for any
resulting loss to an AIM Fund or to AIM Distributors.

SPECIAL INFORMATION RELATING TO MULTIPLE CLASS FUNDS. The Multiple Class
Funds currently offer two or more classes of shares through separate
distribution systems (the "Multiple Distribution System"). Although each class
of shares of a particular Multiple Class Fund represents an interest in the same
portfolio of investments, each class is subject to a different distribution
structure and, as a result, differing expenses. This Multiple Distribution
System allows investors to select the class that is best suited to the
investor's needs and objectives. In considering the options afforded by the
Multiple Distribution System, investors should consider both the applicable
initial sales charge or contingent deferred sales charge, as well as the ongoing
expenses borne by each class of shares and other relevant factors, such as
whether his or her investment goals are long-term or short-term.

CLASS A SHARES generally are sold subject to the initial sales charges
described above and are subject to the other fees and expenses described
herein. Class A shares of AIM MONEY MARKET FUND are designed to meet the
needs of an investor who wishes to establish a dollar cost averaging
program, pursuant to which Class A shares an investor owns may be exchanged
at net asset value for Class A shares of another Multiple Class Fund or
shares of another AIM Fund which is not a Multiple Class Fund, subject to
the terms and conditions described under the caption "Exchange Privilege --
Terms and Conditions of Exchanges."

CLASS B SHARES are sold without an initial sales charge. Thus, the entire
purchase price of Class B shares is immediately invested in Class B shares.
Class B shares are subject, however, to Rule 12b-1 Plan payments of 1.00%
per annum on the average daily net assets of a Multiple Class Fund
attributable to Class B shares. See the discussion under the caption
"Management -- Distribution Plans." In addition, Class B shares redeemed
within six years from the date such shares were purchased are subject to a
contingent deferred sales charge ranging from 5% for redemptions made within
the first year to 1% for redemptions made within the sixth year. No
contingent deferred sales charge will be imposed if Class B shares are
redeemed after six years from the date such shares were purchased.
Redemptions of Class B shares and associated charges are further described
under the caption "How to Redeem Shares -- Multiple Distribution System."

Class B shares will automatically convert into Class A shares of the same
Multiple Class Fund (together with a pro rata portion of all Class B shares
acquired through the reinvestment of dividends and other distributions)
eight years from the end of the calendar month in which the purchase of
Class B shares was made. Class B shares of AIM GLOBAL TRENDS FUND that were
outstanding on May 29, 1998 and which are continuously held by the
shareholder, automatically convert to Class A shares of AIM GLOBAL TRENDS
FUND seven years from the end of the calendar month in which the purchase of
such Class B shares was made. If a shareholder exchanges Class B shares of
AIM GLOBAL TRENDS FUND that were outstanding on, and continuously held
since, May 29, 1998 for Class B shares of any other AIM Fund, such Class B
shares will be subject to the eight year conversion feature applicable to
Class B shares of all other AIM Funds. Following such conversion of their
Class B shares, investors will be relieved of the higher Rule 12b-1 Plan
payments associated with Class B shares. See "Management -- Distribution
Plans."

AIM Cash Reserve Shares of AIM MONEY MARKET FUND are sold without an initial
sales charge and are not subject to a contingent deferred sales charge;
however, they are subject to the other fees and expenses described in the
prospectus for AIM MONEY MARKET FUND.

TIMING OF PURCHASE, EXCHANGE AND REDEMPTION ORDERS (AIM MONEY MARKET FUND
ONLY). Orders for purchases, exchanges and redemptions of shares of AIM MONEY
MARKET FUND received prior to 12:00 noon

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AIM INVESTOR'S GUIDE
Eastern Time or NYSE Close on any business day of the Fund will be confirmed at
the price next determined. Net asset value is normally determined at 12:00 noon
Eastern Time and NYSE Close on each business day of AIM MONEY MARKET FUND.

SPECIAL INFORMATION RELATING TO AIM MONEY MARKET FUND, AIM TAX-EXEMPT CASH
FUND and AIM DOLLAR FUND (THE "MONEY MARKET FUNDS"). Because each Money Market
Fund uses the amortized cost method of valuing the securities it holds and
rounds its per share net asset value to the nearest whole cent, it is
anticipated that the net asset value of the shares of such funds will remain
constant at $1.00 per share. However, there is no assurance that each Money
Market Fund can maintain a $1.00 net asset value per share. In order to earn
dividends with respect to AIM MONEY MARKET FUND on the same day that a purchase
is made, purchase payments in the form of federal funds must be received by the
Transfer Agent before 12:00 noon Eastern Time on that day. Purchases made by
payments in any other form, or payments in the form of federal funds received
after such time but prior to NYSE Close, will begin to earn dividends on the
next business day following the date of purchase. The Money Market Funds
generally will not issue share certificates but will record investor holdings in
noncertificate form and regularly advise the shareholder of his ownership
position.

SHARE CERTIFICATES. Share certificates for all AIM Funds will be issued
upon written request by a shareholder to AIM Distributors or the Transfer Agent.
Otherwise, such shares will be held on the shareholder's behalf by the
applicable AIM Fund(s) and be recorded on the books of such fund(s). See
"Exchange Privilege -- Exchanges by Telephone" and "How to Redeem Shares --
Redemptions by Telephone" for restrictions applicable to shares issued in
certificate form. Please note that certificates will not be issued for shares
held in prototype retirement plans.

MINIMUM ACCOUNT BALANCE. If (1) an account opened in a fund has been in
effect for at least one year and the shareholder has not made an additional
purchase in that account within the preceding six calendar months and (2) the
value of such account drops below $500 for three consecutive months as a result
of redemptions or exchanges, the fund has the right to redeem the account, after
giving the shareholder 60 days' prior written notice, unless the shareholder
makes additional investments within the notice period to bring the account value
up to $500. If a fund determines that a shareholder has provided incorrect
information in opening an account with a fund or in the course of conducting
subsequent transactions with the fund related to such account, the fund may, in
its discretion, redeem the account and distribute the proceeds of such
redemption to the shareholder.

REDUCTIONS IN INITIAL SALES CHARGES

Reductions in the initial sales charges shown in the sales charge tables
(quantity discounts) apply to purchases of Class A shares of the AIM Funds that
are otherwise subject to an initial sales charge, provided that such purchases
are made by a "purchaser" as hereinafter defined. Purchases of Class A shares of
AIM TAX-EXEMPT CASH FUND and AIM DOLLAR FUND, AIM Cash Reserve Shares of AIM
MONEY MARKET FUND and Class B and Class C shares of the Multiple Class Funds
will not be taken into account in determining whether a purchase qualifies for a
reduction in initial sales charges.

The term "purchaser" means:

- - an individual and his or her spouse and children, including any trust
established exclusively for the benefit of any such person; or a pension,
profit-sharing, or other benefit plan established exclusively for the benefit
of any such person, such as an IRA, Roth IRA, a single-participant
money-purchase/profit-sharing plan or an individual participant in a 403(b)
plan (unless such 403(b) plan qualifies as the purchaser as defined below);

- - a 403(b) plan, the employer/sponsor of which is an organization described
under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the
"Code"), provided that:

a. the employer/sponsor must submit contributions for all participating
employees in a single contribution transmittal (i.e., the funds will
not accept contributions submitted with respect to individual
participants);

b. each transmittal must be accompanied by a single check or wire
transfer; and

c. all new participants must be added to the 403(b) plan by submitting an
application on behalf of each new participant with the contribution
transmittal;

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AIM INVESTOR'S GUIDE

- - a trustee or fiduciary purchasing for a single trust, estate or single
fiduciary account (including a pension, profit-sharing or other employee
benefit trust created pursuant to a plan qualified under Section 401 of the
Code) and 457 plans, although more than one beneficiary or participant is
involved;

- - a Simplified Employee Pension ("SEP"), Salary Reduction and other Elective
Simplified Employee Pension account ("SARSEP"), or Savings Incentive Match
Plans for Employees IRA ("SIMPLE IRA") where the employer has notified AIM
Distributors in writing that all of its related employee SEP, SARSEP or SIMPLE
IRA accounts should be linked;

- - any other organized group of persons, whether incorporated or not, provided
the organization has been in existence for at least six months and has some
purpose other than the purchase at a discount of redeemable securities of a
registered investment company; or

- - the discretionary advised accounts of A I M Advisors, Inc. ("AIM") or A I M
Capital Management, Inc. ("AIM Capital").

Investors or dealers seeking to qualify orders for a reduced initial sales
charge must identify such orders and, if necessary, support their qualification
for the reduced charge. AIM Distributors reserves the right to determine whether
any purchaser is entitled, by virtue of the foregoing definition, to the reduced
sales charge. No person or entity may distribute shares of the AIM Funds without
payment of the applicable sales charge other than to persons or entities who
qualify for a reduction in the sales charge provided herein.

(1) LETTERS OF INTENT. A purchaser, as previously defined, may pay reduced
initial sales charges by completing the appropriate section of the account
application and by fulfilling a Letter of Intent ("LOI"). The LOI privilege is
also available to holders of the Connecticut General Guaranteed Account,
established for tax qualified group annuities, for contracts purchased on or
before June 30, 1992. The LOI confirms such purchaser's intention as to the
total investment to be made in shares of the AIM Funds (except for (i) Class A
shares of AIM DOLLAR FUND, AIM TAX-EXEMPT CASH FUND, and AIM Cash Reserve Shares
of AIM MONEY MARKET FUND and (ii) Class B and Class C shares of the Multiple
Class Funds) within the following 13 consecutive months. By marking the LOI
section on the account application and by signing the account application, the
purchaser indicates that he understands and agrees to the terms of the LOI and
is bound by the provisions described below.

Each purchase of fund shares normally subject to an initial sales charge
made during the 13-month period will be made at the public offering price
applicable to a single transaction of the total dollar amount indicated by the
LOI, as described under "Sales Charges and Dealer Concessions." It is the
purchaser's responsibility at the time of purchase to specify the account
numbers that should be considered in determining the appropriate sales charge.
The offering price may be further reduced as described under "Rights of
Accumulation" if the Transfer Agent is advised of all other accounts at the time
of the investment. Shares acquired through reinvestment of dividends and capital
gain distributions will not be applied to the LOI. At any time during the
13-month period after meeting the original obligation, a purchaser may revise
his intended investment amount upward by submitting a written and signed
request. Such a revision will not change the original expiration date. By
signing an LOI, a purchaser is not making a binding commitment to purchase
additional shares, but if purchases made within the 13-month period do not total
the amount specified, the investor will pay the increased amount of sales charge
as described below. Purchases made within 90 days before signing an LOI will be
applied toward completion of the LOI. The LOI effective date will be the date of
the first purchase with the 90-day period. The Transfer Agent will process
necessary adjustments upon the expiration or completion date of the LOI.
Purchases made more than 90 days before signing an LOI will be applied toward
completion of the LOI based on the value of the shares purchased calculated at
the public offering price on the effective date of the LOI.

To assure compliance with the provisions of the 1940 Act, out of the initial
purchase (or subsequent purchases if necessary) the Transfer Agent will escrow
in the form of shares an appropriate dollar amount (computed to the nearest full
share). All dividends and any capital gain distributions on the escrowed shares
will be credited to the purchaser. All shares purchased, including those
escrowed, will be registered in the purchaser's name. If the total investment
specified under this LOI is completed within the 13-month period, the escrowed
shares will be promptly released. If the intended investment is not completed,
the purchaser will pay the Transfer Agent the difference between the sales
charge on the specified amount and the amount actually purchased. If the
purchaser does not pay such difference within 20 days of the expiration date, he

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AIM INVESTOR'S GUIDE
irrevocably constitutes and appoints the Transfer Agent as his attorney to
surrender for redemption any or all shares, to make up such difference within 60
days of the expiration date.

If at any time before completing the LOI Program, the purchaser wishes to
cancel the agreement, he must give written notice to AIM Distributors. If at any
time before completing the LOI Program the purchaser requests the Transfer Agent
to liquidate or transfer beneficial ownership of his total shares, a
cancellation of the LOI will automatically be effected. If the total amount
purchased is less than the amount specified in the LOI, the Transfer Agent will
redeem an appropriate number of escrowed shares equal to the difference between
the sales charge actually paid and the sales charge that would have been paid if
the total purchases had been made at a single time.

Any investor who purchased shares of the AIM/GT Funds pursuant to a LOI
entered into prior to June 1, 1998 may continue to make such purchases under the
terms of such LOI. See "How to Purchase and Redeem Shares" in the Statement of
Additional Information.

(2) RIGHTS OF ACCUMULATION. A "purchaser," as previously defined, may also
qualify for reduced initial sales charges based upon such purchaser's existing
investment in shares of any of the AIM Funds (except for (i) Class A shares of
AIM DOLLAR FUND, AIM TAX-EXEMPT CASH FUND and AIM Cash Reserve Shares of AIM
MONEY MARKET FUND and (ii) Class B and Class C shares of the Multiple Class
Funds) at the time of the proposed purchase. Rights of accumulation are also
available to holders of the Connecticut General Guaranteed Account, established
for tax-qualified group annuities, for contracts purchased on or before June 30,
1992. To determine whether or not a reduced initial sales charge applies to a
proposed purchase, AIM Distributors takes into account not only the money which
is invested upon such proposed purchase, but also the value of all shares of the
AIM Funds (except for (i) Class A shares of AIM DOLLAR FUND, AIM TAX-EXEMPT CASH
FUND and AIM Cash Reserve Shares of AIM MONEY MARKET FUND and (ii) Class B and
Class C shares of the Multiple Class Funds) owned by such purchaser, calculated
at their then current public offering price. If a purchaser so qualifies for a
reduced sales charge, the reduced sales charge applies to the total amount of
money then being invested by such purchaser and not just to the portion that
exceeds the breakpoint above which a reduced sales charge applies. For example,
if a purchaser already owns qualifying shares of any AIM Fund with a value of
$20,000 and wishes to invest an additional $20,000 in a fund with a maximum
initial sales charge of 5.50%, the reduced initial sales charge of 5.25% will
apply to the full $20,000 purchase and not just to the $15,000 in excess of the
$25,000 breakpoint. To qualify for obtaining the discount applicable to a
particular purchase, the purchaser or his dealer must furnish AFS with a list of
the account numbers and the names in which such accounts of the purchaser are
registered at the time the purchase is made.

PURCHASES AT NET ASSET VALUE. Purchases of shares of any of the AIM Funds
at net asset value (without payment of an initial sales charge) may be made in
connection with: (a) the reinvestment of dividends and other distributions from
a fund (see "Dividends, Distributions and Tax Matters"); (b) exchanges of shares
of certain other funds (see "Exchange Privilege"); (c) use of the reinstatement
privilege (see "How to Redeem Shares"); or (d) a merger, consolidation or
acquisition of assets of a fund.

Shareholders of record of Class A shares of AIM WEINGARTEN FUND and AIM
CONSTELLATION FUND on September 8, 1986, and shareholders of record of Class A
shares of AIM CHARTER FUND on November 17, 1986, may purchase additional Class A
shares of the particular AIM Fund(s) whose shares they owned on such date, at
net asset value (without payment of a sales charge) for as long as they
continuously own Class A shares of such AIM Fund(s) having a market value of at
least $500. In addition, discretionary advised clients of any investment
advisors whose clients held Class A shares of AIM WEINGARTEN FUND or AIM
CONSTELLATION FUND on September 8, 1986, or who held Class A shares of AIM
CHARTER FUND on November 17, 1986, and have held such Class A shares at all
times subsequent to such date, may purchase Class A shares of the applicable AIM
Fund(s) at the net asset value of such shares.

The following persons may purchase Class A shares of the AIM Funds through
AIM Distributors without payment of an initial sales charge: (a) A I M
Management Group Inc. ("AIM Management") and its affiliated companies; (b) any
current or retired officer, director, trustee or employee, or any member of the
immediate family (including spouse, children, parents and parents of spouse) of
any such person, of AIM Management or its affiliates or of certain mutual funds
which are advised or managed by AIM; or any trust established exclusively for
the benefit of such persons; (c) any employee benefit plan established for
employees of AIM Management or its affiliates; (d) any current or retired
officer, director, trustee or employee, or any member of

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AIM INVESTOR'S GUIDE

the immediate family (including spouse, children, parents and parents of spouse)
of any such person, or of CIGNA Corporation or of any of its affiliated
companies, or of First Data Investor Services Group (formerly The Shareholder
Services Group, Inc.); (e) any investment company sponsored by CIGNA
Investments, Inc. or any of its affiliated companies for the benefit of its
directors' deferred compensation plans; (f) discretionary advised clients of AIM
or AIM Capital; (g) registered representatives and employees of dealers who have
entered into agreements with AIM Distributors (or financial institutions that
have arrangements with such dealers with respect to the sale of shares of the
AIM Funds) and any member of the immediate family (including spouse, children,
parents and parents of spouse) of any such person, provided that purchases at
net asset value are permitted by the policies of such person's employer; (h)
certain broker-dealers, investment advisers or bank trust departments that
provide asset allocation, similar specialized investment services or investment
company transaction services for their customers, that charge a minimum annual
fee for such services, and that have entered into an agreement with AIM
Distributors with respect to their use of the AIM Funds in connection with such
services; (i) any employee or any member of the immediate family (including
spouse, children, parents and parents of spouse) of any employee, of Triformis
Inc.; (j) shareholders of the AIM/GT Funds as of April 30, 1987 who since that
date continually have owned shares of one or more of the AIM/GT Funds; and (k)
certain former AMA Investment Advisers' shareholders who became shareholders of
the AIM Global Health Care Fund in October 1989, and who have continuously held
shares in the AIM/GT Funds since that time.

In addition, shares of any AIM Fund may be purchased at net asset value,
without payment of a sales charge, by pension, profit-sharing or other employee
benefit plans created pursuant to a plan qualified under Section 401 of the Code
or plans under Section 457 of the Code, or employee benefit plans created
pursuant to Section 403(b) of the Code and sponsored by nonprofit organizations
defined under Section 501(c)(3) of the Code. Such plans will qualify for
purchases at net asset value provided that (1) the total amount invested in the
plan is at least $1,000,000, (2) the sponsor signs a $1,000,000 LOI, (3) such
shares are purchased by an employer-sponsored plan with at least 100 eligible
employees, or (4) all of the plan's transactions are executed through a single
financial institution or service organization who has entered into an agreement
with AIM Distributors with respect to their use of the AIM Funds in connection
with such accounts. Section 403(b) plans sponsored by public educational
institutions will not be eligible for net asset value purchases based on the
aggregate investment made by the plan or the number of eligible employees.
Participants in such plans will be eligible for reduced sales charges based
solely on the aggregate value of their individual investments in the applicable
AIM Fund. PLEASE NOTE THAT TAX-EXEMPT FUNDS ARE NOT APPROPRIATE INVESTMENTS FOR
SUCH PLANS. AIM Distributors may pay investment dealers or other financial
service firms for share purchases of the Load Funds (as defined under the
caption "Exchange Privilege") sold at net asset value to an employee benefit
plan in accordance with this paragraph as follows: 1% of the first $2 million of
such purchases, plus 0.80% of the next $1 million of such purchases, plus 0.50%
of the next $17 million of such purchases, plus 0.25% of amounts in excess of
$20 million of such purchases and up to 0.10% of the net asset value of any
Class A shares of AIM LIMITED MATURITY TREASURY FUND sold at net asset value to
an employee benefit plan in accordance with this paragraph.

Class A shares of AIM WEINGARTEN FUND and AIM CONSTELLATION FUND may be
deposited at net asset value, without payment of a sales charge, in G/SET series
unit investment trusts, whose portfolios consist exclusively of Class A shares
of AIM WEINGARTEN FUND or AIM CONSTELLATION FUND and stripped United States
Treasury issued notes or bonds bearing no current interest ("Treasury
Obligations"). Class A shares of such funds may also be purchased at net asset
value by other unit investment trusts approved by the Board of Directors of AIM
Equity Funds, Inc. Unit holders of such trusts may elect to invest cash
distributions from such trusts in Class A shares of AIM WEINGARTEN FUND or AIM
CONSTELLATION FUND at net asset value, including: (a) distributions of any
dividend income or other income received by such trusts; (b) distributions of
any net capital gains received in respect of Class A shares of AIM WEINGARTEN
FUND or AIM CONSTELLATION FUND and proceeds of the sales of Class A shares of
AIM WEINGARTEN FUND or AIM CONSTELLATION FUND used to redeem units of such
trusts; and (c) proceeds from the maturity of the Treasury Obligations at the
termination dates of such trusts. Prior to the termination dates of such trusts,
a unit holder may invest the proceeds from the redemption or repurchase of his
units in Class A shares of AIM WEINGARTEN FUND or AIM CONSTELLATION FUND at net
asset value, provided: (a) that the investment in Class A shares of AIM
WEINGARTEN FUND or AIM CONSTELLATION FUND is effected within 30 days of such
redemption or repurchase; and (b) that the unit holder or his dealer provides
AIM Distributors with a letter which: (i) identifies the name, address and
telephone

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AIM INVESTOR'S GUIDE
number of the dealer who sold to the unit holder the units to be redeemed or
repurchased; and (ii) states that the investment in Class A shares of AIM
WEINGARTEN FUND or AIM CONSTELLATION FUND is being funded exclusively by the
proceeds from the redemption or repurchase of units of such trusts.

FOR ANY FUND NAMED ON THE COVER PAGE OF THIS PROSPECTUS, AIM DISTRIBUTORS
AND ITS AGENTS RESERVE THE RIGHT AT ANY TIME (1) TO WITHDRAW ALL OR ANY PART OF
THE OFFERING MADE BY THIS PROSPECTUS; (2) TO REJECT ANY PURCHASE OR EXCHANGE
ORDER OR TO CANCEL ANY PURCHASE DUE TO NONPAYMENT OF THE PURCHASE PRICE; (3) TO
INCREASE, WAIVE OR LOWER THE MINIMUM INVESTMENT REQUIREMENTS; OR (4) TO MODIFY
ANY OF THE TERMS OR CONDITIONS OF PURCHASE OF SHARES OF SUCH FUND. For any fund
named on the cover page, AIM Distributors and its agents will use their best
efforts to provide notice of any such actions through correspondence with
broker-dealers and existing shareholders, supplements to the AIM Funds'
prospectuses, or other appropriate means, and will provide sixty (60) days'
notice in the case of termination or material modification to the exchange
privilege discussed under the caption "Exchange Privilege."
- --------------------------------------------------------------------------------

SPECIAL PLANS

Except as noted below, each AIM Fund provides the special plans described
below for the convenience of its shareholders. Once established, there is no
obligation to continue to invest through a plan, and a shareholder may terminate
a plan at any time.

Special plan applications and further information, including details of any
fees which are charged to a shareholder investing through a plan, may be
obtained by written request, directed to AFS at the address provided under "How
to Purchase Shares," or by calling the Client Services Department of AFS at
(800) 959-4246. IT IS RECOMMENDED THAT A SHAREHOLDER CONSIDERING ANY OF THE
PLANS DESCRIBED HEREIN CONSULT A TAX ADVISOR BEFORE COMMENCING PARTICIPATION IN
SUCH A PLAN.

SYSTEMATIC WITHDRAWAL PLAN. Under a Systematic Withdrawal Plan, a
shareholder who owns shares which are not subject to a contingent deferred sales
charge, can arrange for monthly, quarterly or annual amounts (but not less than
$50) to be drawn against the balance of his account in the designated AIM Fund.
Shareholders who own shares subject to a contingent deferred sales charge, can
only arrange for monthly or quarterly withdrawals under a Systematic Withdrawal
Plan. Payment of this amount can be made on any day of the month the shareholder
specifies, except the thirtieth or thirty-first day of each month in which a
payment is to be made. A minimum account balance of $5,000 is required to
establish a Systematic Withdrawal Plan, but there is no requirement thereafter
to maintain any minimum investment. With respect to shares subject to a
contingent deferred sales charge (all classes) no contingent deferred sales
charge will be imposed on withdrawals made under a Systematic Withdrawal Plan,
provided that the amounts withdrawn under such a plan do not exceed on an annual
basis 12% of the account value at the time the shareholder elects to participate
in the Systematic Withdrawal Plan. Systematic Withdrawal Plans with respect to
shares subject to a contingent deferred sales charge that exceed on an annual
basis 12% of such account will be subject to a contingent deferred sales charge
on the amounts exceeding 12% of the account value at the time the shareholder
elects to participate in the Systematic Withdrawal Plan.

Under a Systematic Withdrawal Plan, all shares are to be held by the
Transfer Agent and all dividends and distributions are reinvested to shares of
the applicable AIM Fund by the Transfer Agent. To provide funds for payments
made under the Systematic Withdrawal Plan, the Transfer Agent redeems sufficient
full and fractional shares at their net asset value in effect at the time of
each such redemption.

Payments under a Systematic Withdrawal Plan constitute taxable events. Since
such payments are funded by the redemption of shares, they may result in a
return of capital and in capital gains or losses, rather than in ordinary
income. Because sales charges are imposed on additional purchases of shares
(other than Class B or Class C shares of the Multiple Class Funds, and AIM Cash
Reserve Shares of AIM MONEY MARKET FUND), it is disadvantageous to effect such
purchases while a Systematic Withdrawal Plan is in effect.

The Systematic Withdrawal Plan may be terminated at any time upon 10 days'
prior notice to AFS. Each AIM Fund bears its share of the cost of operating the
Systematic Withdrawal Plan. Each AIM Fund reserves the right to initiate a fee
for each withdrawal (not to exceed its cost), but there is no present intent to
do so.

AUTOMATIC INVESTMENT PLAN. Shareholders who wish to make regular systematic
investments may establish an Automatic Investment Plan. Under this plan
withdrawal is made on the shareholder's bank account in

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AIM INVESTOR'S GUIDE
the amount specified by the shareholder (minimum $50 per investment, per
account) and on a day or date(s) specified by the shareholder. The proceeds are
invested in shares of the designated AIM Fund at the applicable offering price
determined on the date of the withdrawal. An Automatic Investment Plan may be
discontinued upon 10 days' prior notice to the Transfer Agent or AIM
Distributors.

AUTOMATIC DIVIDEND INVESTMENT PLAN. Shareholders may elect to have all
dividends and distributions declared by an AIM Fund paid in cash or invested at
net asset value, without payment of an initial sales charge, either in shares of
the same AIM Fund or invested in shares of another AIM Fund. For each of the
Multiple Class Funds, dividends and distributions attributable to Class A shares
may be reinvested in Class A shares of the same fund, in Class A shares of
another Multiple Class Fund or in shares of another AIM Fund which is not a
Multiple Class Fund; dividends and distributions attributable to Class B shares
may be reinvested in Class B shares of the same fund or in Class B shares of
another Multiple Class Fund; dividends and distributions attributable to Class C
shares may be reinvested in Class C shares of the same fund or in Class C shares
of another Multiple Class Fund; and dividends and distributions attributable to
AIM Cash Reserve Shares of AIM MONEY MARKET FUND may be reinvested in additional
shares of such fund, in Class A shares of another Multiple Class Fund or in
shares of another AIM Fund which is not a Multiple Class Fund. See "Dividends,
Distributions and Tax Matters -- Dividends and Distributions" for a description
of payment dates for these options. In order to qualify to have dividends and
distributions of one AIM Fund invested in shares of another AIM Fund, the
following conditions must be satisfied: (a) the shareholder must have an account
balance in the dividend paying fund of at least $5,000; (b) the account must be
held in the name of the shareholder (i.e., the account may not be held in
nominee name); and (c) the shareholder must have requested and completed an
authorization relating to the reinvestment of dividends into another AIM Fund.
An authorization may be given on the account application or on an authorization
form available from AIM Distributors. An AIM Fund will waive the $5,000 minimum
account value requirement if the shareholder has an account in the fund selected
to receive the dividends and distributions with a value of at least $500.

DOLLAR COST AVERAGING. Shareholders may elect to have a specified amount
automatically exchanged, either monthly or quarterly (on or about the 10th or
25th day of the applicable month), from one of their accounts into one or more
AIM Funds, subject to the terms and conditions described under the caption
"Exchange Privilege -- Terms and Conditions of Exchanges." The account from
which exchanges are to be made must have a value of at least $5,000 when a
shareholder elects to begin this program, and the exchange minimum is $50 per
transaction. All of the accounts that are part of this program must have
identical registrations. The net asset value of shares purchased under this
program may vary, and may be more or less advantageous than if shares were not
exchanged automatically. There is no charge for entering the Dollar Cost
Averaging program. Sale charges may apply, as described under the caption
"Exchange Privilege."

PROTOTYPE RETIREMENT PLANS. The AIM Funds (except for AIM HIGH INCOME
MUNICIPAL FUND, AIM MUNICIPAL BOND FUND, AIM TAX-FREE INTERMEDIATE FUND, AIM
TAX-EXEMPT CASH FUND and AIM TAX-EXEMPT BOND FUND OF CONNECTICUT) have made the
following prototype retirement plans available to corporations, individuals and
employees of non-profit organizations and public schools: combination money-
purchase/profit-sharing plans; 403(b) plans; IRA plans; Roth IRA plans; SARSEP
plans; SEP plans; and SIMPLE IRA plans (collectively, "retirement accounts").
Information concerning these plans, including the custodian's fees and the forms
necessary to adopt such plans, can be obtained by calling or writing the AIM
Funds or AIM Distributors. Shares of the AIM Funds are also available for
investment through existing 401(k) plans (for both individuals and employers)
adopted under the Code. The plan custodian currently imposes an annual $10
maintenance fee with respect to each retirement account for which it serves as
the custodian. This fee is generally charged in December. Each AIM Fund and/or
the custodian reserve the right to change this maintenance fee and to initiate
an establishment fee (not to exceed its cost).

PORTFOLIO REBALANCING PROGRAM. The Portfolio Rebalancing Program
("Program") permits eligible shareholders to establish and maintain an
allocation across a range of AIM Funds. The Program automatically rebalances
holdings of AIM Funds to the established allocation on a periodic basis. Under
the Program, a shareholder may predesignate, on a percentage basis, how the
total value of his or her holdings in a minimum of two, and a maximum of ten,
AIM Funds ("Personal Portfolio") is to be rebalanced on a quarterly, semiannual,
or annual basis.

Rebalancing under the Program will be effected through the exchange of
shares of one or more AIM Funds in the shareholder's Personal Portfolio for
shares of the same class(es) of one or more other AIM Funds in the

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AIM INVESTOR'S GUIDE

shareholder's Personal Portfolio. See "Exchange Privilege." If shares of the AIM
Fund(s) in a shareholder's Personal Portfolio have appreciated during a
rebalancing period, the Program will result in shares of AIM Fund(s) that have
appreciated most during the period being exchanged for shares of AIM Fund(s)
that have appreciated least. SUCH EXCHANGES ARE NOT TAX-FREE AND MAY RESULT IN A
SHAREHOLDER'S REALIZING A GAIN OR LOSS, AS THE CASE MAY BE, FOR FEDERAL INCOME
TAX PURPOSES. See "Dividends, Distributions and Tax Matters -- Dividends and
Distributions." Participation in the Program does not assure that a shareholder
will profit from purchases under the Program nor does it prevent or lessen
losses in a declining market.

The Program will automatically rebalance the shareholder's Personal
Portfolio on the 28th day of the last month of the period chosen (or the
immediately preceding business day if the 28th is not a business day), subject
to any limitations below. The Program will not execute an exchange if the
variance in a shareholder's Personal Portfolio for a particular AIM Fund would
be 2% or less. In predesignating percentages, shareholders must use whole
percentages and totals must equal 100%. Shareholders participating in the
Program may not request issuance of physical certificates representing an AIM
Fund's shares. The AIM Funds and AIM Distributors reserve the right to modify,
suspend, or terminate the Program at any time on 60 days' prior written notice
to shareholders. A request to participate in the Program must be received in
good order at least five business days prior to the next rebalancing date. Once
a shareholder establishes the Program for his or her Personal Portfolio, a
shareholder cannot cancel or change which rebalancing frequency, which AIM Funds
or what allocation percentages are assigned to the Program, unless canceled or
changed in writing and received by the Transfer Agent in good order at least
five business days prior to the rebalancing date. Shareholders participating in
the Program may also participate in the Right of Accumulation, LOI, and
Automatic Investment Plan. Certain dealers/financial institutions may charge a
fee for establishing accounts relating to the Program. Investors should contact
their dealers/financial institutions or AIM Distributors for more information.

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AIM INVESTOR'S GUIDE

EXCHANGE PRIVILEGE

TERMS AND CONDITIONS OF EXCHANGES. Shareholders of the AIM Funds may
participate in an exchange privilege as described below. The exchange privilege
is also available to holders of the Connecticut General Guaranteed Account,
established for tax-qualified group annuities, for contracts purchased on or
before June 30, 1992. AIM Distributors acts as distributor for the AIM Funds
which represent a range of different investment objectives and policies. As set
forth under the caption "Terms and Conditions of Purchase of the AIM Funds --
Sales Charges and Dealer Concessions," shares of certain of the AIM Funds,
including the Class A shares of the Multiple Class Funds, listed below and
referred to herein as the "Load Funds," are sold at a public offering price that
includes a maximum sales charge of 5.50% or 4.75% of the public offering price
of such shares; Class A shares (or shares which normally involve the payment of
initial sales charges) of certain of the AIM Funds, listed below and referred to
herein as the "Lower Load Funds," are sold at a public offering price that
includes a maximum sales charge of 1.00% of the public offering price of such
shares; and Class A shares or shares of certain other funds, listed below and
referred to herein as the "No Load Funds," are sold at net asset value, without
payment of a sales charge.

LOAD FUNDS:
- --------------------------------------------------------------------------------
AIM ADVISOR FLEX FUND -- CLASS A
AIM ADVISOR INTERNATIONAL VALUE FUND -- CLASS A
AIM ADVISOR LARGE CAP VALUE FUND -- CLASS A
AIM ADVISOR MULTIFLEX FUND -- CLASS A
AIM ADVISOR REAL ESTATE FUND -- CLASS A
AIM AGGRESSIVE GROWTH FUND -- CLASS A
AIM AMERICA VALUE FUND -- CLASS A
AIM ASIAN GROWTH FUND -- CLASS A
AIM BALANCED FUND -- CLASS A
AIM BLUE CHIP FUND -- CLASS A
AIM CAPITAL DEVELOPMENT FUND -- CLASS A
AIM CHARTER FUND -- CLASS A
AIM CONSTELLATION FUND -- CLASS A
AIM DEVELOPING MARKETS FUND -- CLASS A
AIM EMERGING MARKETS FUND -- CLASS A
AIM EUROPE GROWTH FUND -- CLASS A
AIM EUROPEAN DEVELOPMENT FUND -- CLASS A
AIM GLOBAL AGGRESSIVE GROWTH FUND -- CLASS A
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND -- CLASS A
AIM GLOBAL FINANCIAL SERVICES FUND -- CLASS A
AIM GLOBAL GOVERNMENT INCOME FUND -- CLASS A
AIM GLOBAL GROWTH FUND -- CLASS A
AIM GLOBAL GROWTH & INCOME FUND -- CLASS A
AIM GLOBAL HEALTH CARE FUND -- CLASS A
AIM GLOBAL HIGH INCOME FUND -- CLASS A

AIM GLOBAL INCOME FUND -- CLASS A
AIM GLOBAL INFRASTRUCTURE FUND -- CLASS A
AIM GLOBAL RESOURCES FUND -- CLASS A
AIM GLOBAL TELECOMMUNICATIONS FUND -- CLASS A
AIM GLOBAL TRENDS FUND -- CLASS A
AIM GLOBAL UTILITIES FUND -- CLASS A
AIM HIGH INCOME MUNICIPAL FUND -- CLASS A
AIM HIGH YIELD FUND -- CLASS A
AIM INCOME FUND -- CLASS A
AIM INTERMEDIATE GOVERNMENT FUND -- CLASS A
AIM INTERNATIONAL EQUITY FUND -- CLASS A
AIM INTERNATIONAL GROWTH FUND -- CLASS A
AIM JAPAN GROWTH FUND -- CLASS A
AIM LATIN AMERICAN GROWTH FUND -- CLASS A
AIM MID CAP GROWTH FUND -- CLASS A
AIM MONEY MARKET FUND -- CLASS A
AIM MUNICIPAL BOND FUND -- CLASS A
AIM NEW PACIFIC GROWTH FUND -- CLASS A
AIM SELECT GROWTH FUND -- CLASS A
AIM SMALL CAP EQUITY FUND -- CLASS A
AIM SMALL CAP OPPORTUNITIES FUND -- CLASS A
AIM STRATEGIC INCOME FUND -- CLASS A
AIM TAX-EXEMPT BOND FUND OF CONNECTICUT -- CLASS A
AIM VALUE FUND -- CLASS A
AIM WEINGARTEN FUND -- CLASS A
AIM WORLDWIDE GROWTH FUND -- CLASS A

LOWER LOAD FUNDS:
- --------------------------------------------------------------------------------
AIM LIMITED MATURITY TREASURY FUND -- CLASS A
AIM TAX-FREE INTERMEDIATE FUND -- CLASS A

NO LOAD FUNDS:
- --------------------------------------------------------------------------------
AIM MONEY MARKET FUND -- AIM CASH RESERVE SHARES
AIM TAX-EXEMPT CASH FUND -- CLASS A
AIM DOLLAR FUND -- CLASS A

Shares of any AIM Fund may be exchanged for shares of any other AIM Fund on
the terms described on the chart below, except that (i) Load Fund share
purchases of $1,000,000 or more which are subject to a contingent deferred sales
charge may not be exchanged for Lower Load Funds or for AIM TAX-EXEMPT CASH FUND
(AND CLASS A SHARES OF AIM DOLLAR FUND); (II) LOWER LOAD FUND SHARE PURCHASES OF
$1,000,000 OR MORE AND AIM CASH RESERVE SHARES OF AIM MONEY MARKET FUND, AIM
TAX-EXEMPT CASH FUND AND AIM DOLLAR FUND PURCHASES MAY BE EXCHANGED FOR LOAD
FUND SHARES IN AMOUNTS OF $1,000,000 OR MORE WHICH WILL THEN BE SUBJECT TO A
CONTINGENT DEFERRED SALES CHARGE; HOWEVER, FOR PURPOSES OF CALCULATING THE
CONTINGENT DEFERRED SALES CHARGES ON THE LOAD FUND SHARES ACQUIRED, THE 18-MONTH
PERIOD SHALL BE COMPUTED FROM THE DATE OF SUCH EXCHANGE, (iii) Class A shares
may be exchanged for Class A shares, (iv) Class B shares may be exchanged only
for Class B shares; (v) Class C shares may only be exchanged for Class C shares;
and (vi) AIM Cash Reserve Shares of AIM MONEY MARKET FUND may not be exchanged
for Class A shares of AIM MONEY MARKET FUND or for Class B or Class C shares.

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DEPENDING UPON THE FUND FROM WHICH AND INTO WHICH AN EXCHANGE IS BEING MADE,
SHARES BEING ACQUIRED IN AN EXCHANGE MAY BE ACQUIRED AT THEIR OFFERING PRICE OR
AT THEIR NET ASSET VALUE (WITHOUT PAYMENT OF A SALES CHARGE) AS SET FORTH IN THE
TABLE BELOW FOR SHARES INITIALLY PURCHASED PRIOR TO MAY 1, 1994:

<TABLE>
<CAPTION>
MULTIPLE CLASS FUNDS:
LOWER LOAD NO LOAD --------------------------------
FROM: TO: LOAD FUNDS FUNDS FUNDS CLASS B CLASS C
- --------------------------------------------------------------- --------------- --------------- --------------- ---------------

<S> <C> <C> <C> <C> <C>
Load Funds............. Net Asset Value Net Asset Value Net Asset Value Not Applicable Not Applicable

Lower Load Funds....... Net Asset Value Net Asset Value Net Asset Value Not Applicable Not Applicable

No Load Funds.......... Offering Price if No Load shares were Net Asset Value Net Asset Value Not Applicable Not Applicable
directly purchased. Net Asset Value if if No Load
No Load shares were acquired upon shares were
exchange of shares of any Load Fund or acquired upon
any Lower Load Fund. exchange of
shares of any
Load Fund or
any Lower Load
Fund;
otherwise,
Offering Price.

Multiple Class Funds:

Class B.............. Not Applicable Not Applicable Not Applicable Net Asset Value Not Applicable
</TABLE>

FOR SHARES INITIALLY PURCHASED ON OR AFTER MAY 1, 1994, THE FOREGOING TABLE
IS REVISED AS FOLLOWS:

<S> <C> <C> <C> <C> <C>
Load Funds............. Net Asset Value Net Asset Value Net Asset Value Not Applicable Not Applicable

Lower Load Funds....... Net Asset Value if shares were acquired Net Asset Value Net Asset Value Not Applicable Not Applicable
upon exchange of any Load Fund.
Otherwise, difference in sales charge
will apply.

No Load Funds.......... Offering Price if No Load shares were Net Asset Value Net Asset Value Not Applicable Not Applicable
directly purchased. Net Asset Value if if No Load
No Load shares were acquired upon shares were
exchange of shares of any Load Fund. acquired upon
Difference in sales charge will apply if exchange of
No Load shares were acquired upon shares of any
exchange of Lower Load Fund shares. Load Fund or
any Lower Load
Fund;
otherwise,
Offering Price.

Multiple Class Funds:

Class B.............. Not Applicable Not Applicable Not Applicable Net Asset Value Not Applicable

Class C.............. Not Applicable Not Applicable Not Applicable Not Applicable Net Asset Value
</TABLE>

An exchange is permitted only in the following circumstances: (a) if the
funds offer more than one class of shares, the exchange must be between the same
class of shares (e.g., Class A, Class B and Class C shares of a Multiple Class
Fund cannot be exchanged for each other) except that AIM Cash Reserve Shares of
AIM MONEY MARKET FUND may be exchanged for Class A shares of another Multiple
Class Fund; (b) the dollar amount of the exchange must be at least equal to the
minimum investment applicable to the shares of the fund acquired through such
exchange; (c) the shares of the fund acquired through exchange must be qualified
for sale in the state in which the shareholder resides; (d) the exchange must be
made between accounts having identical registrations and addresses; (e) the full
amount of the purchase price for the shares being exchanged must have already
been received by the fund; (f) the account from which shares have been exchanged
must be coded as having a certified taxpayer identification number on file or,
in the alternative, an appropriate IRS Form W-8 (certificate of foreign status)
or Form W-9 (certifying exempt status) must have been received by the fund; (g)
newly acquired shares (through either an initial or subsequent investment) are
held in an account for at least ten business days, and all other shares are held
in an account for at least one day, prior to the exchange; and (h) certificates
representing shares must be returned before shares can be exchanged. There is no
fee for exchanges among the AIM Funds.

THE CURRENT PROSPECTUS OF EACH OF THE AIM FUNDS AND CURRENT INFORMATION
CONCERNING THE OPERATION OF THE EXCHANGE PRIVILEGE ARE AVAILABLE THROUGH AIM
DISTRIBUTORS OR THROUGH ANY DEALER WHO HAS EXECUTED AN APPLICABLE AGREEMENT WITH
AIM DISTRIBUTORS. BEFORE EXCHANGING SHARES, INVESTORS SHOULD REVIEW THE

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PROSPECTUSES OF THE FUNDS WHOSE SHARES WILL BE ACQUIRED THROUGH EXCHANGE.
EXCHANGES OF SHARES ARE CONSIDERED TO BE SALES FOR FEDERAL AND STATE INCOME TAX
PURPOSES AND MAY RESULT IN A TAXABLE GAIN OR LOSS TO A SHAREHOLDER.

THE EXCHANGE PRIVILEGE IS NOT AN OPTION OR RIGHT TO PURCHASE SHARES BUT IS
PERMITTED UNDER THE RESPECTIVE POLICIES OF THE PARTICIPATING FUNDS, AND MAY BE
MODIFIED OR DISCONTINUED BY ANY OF SUCH FUNDS OR BY AIM DISTRIBUTORS AT ANY
TIME, AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, WITHOUT NOTICE.

Shares of any AIM Fund (other than AIM MONEY MARKET FUND) to be exchanged
are redeemed at their net asset value as determined at NYSE Close on the day
that an exchange request in proper form (described below) is received. Exchange
requests received after NYSE Close will result in the redemption of shares at
their net asset value at NYSE Close on the next business day. See "Terms and
Conditions of Purchase of the AIM Funds -- Timing of Purchase, Exchange and
Redemption Orders (AIM MONEY MARKET FUND only)" for information regarding the
timing of exchange orders for AIM MONEY MARKET FUND. Normally, shares of an AIM
Fund to be acquired by exchange are purchased at their net asset value or
applicable offering price, as the case may be, determined on the date that such
request is received, but under unusual market conditions such purchases may be
delayed for up to five business days if it is determined that a fund would be
materially disadvantaged by an immediate transfer of the proceeds of the
exchange. If a shareholder is exchanging into a fund paying daily dividends
("Dividends, Distributions and Tax Matters -- Dividends and Distributions,"
below), and the release of the exchange proceeds is delayed for the foregoing
five-day period, such shareholder will not begin to accrue dividends until the
sixth business day after the exchange. Shares purchased by check may not be
exchanged until it is determined that the check has cleared, which may take up
to ten business days from the date that the check is received. See "Terms and
Conditions of Purchase of the AIM Funds -- Timing of Purchase Orders."

In the event of unusual market conditions, AIM Distributors reserves the
right to reject any exchange request, if, in the judgment of AIM Distributors,
the number of requests or the total value of the shares that are the subject of
the exchange places a material burden on a fund. For example, the number of
exchanges by investment managers making market timing exchanges may be limited.

EXCHANGES BY MAIL. Investors exchanging their shares by mail should send a
written request to AFS. The request should contain the account registration and
account number, the dollar amount or number of shares to be exchanged, and the
names of the funds from which and into which the exchange is to be made. The
request should comply with all of the requirements for redemption by mail,
except those required for redemption of IRAs. See "How to Redeem Shares."

EXCHANGES BY TELEPHONE. Shareholders or their agents may request an
exchange by telephone. If a shareholder does not wish to allow telephone
exchanges by any person in his account, he should decline that option on the
account application. AIM Distributors has made arrangements with certain dealers
and investment advisory firms to accept telephone instructions to exchange
shares between any of the AIM Funds. AIM Distributors reserves the right to
impose conditions on dealers or investment advisors who make telephone exchanges
of shares of the funds, including the condition that any such dealer or
investment advisor enter into an agreement (which contains additional conditions
with respect to exchanges of shares) with AIM Distributors. To exchange shares
by telephone, a shareholder, dealer or investment advisor who has satisfied the
foregoing conditions must call AFS at (800) 959-4246. If a shareholder is unable
to reach AFS by telephone, he may also request exchanges by telegraph or use
overnight courier services to expedite exchanges by mail, which will be
effective on the business day received by the Transfer Agent as long as such
request is received prior to NYSE Close. The Transfer Agent and AIM Distributors
will not be liable for any loss, expense or cost arising out of any telephone
exchange request that they reasonably believe to be genuine, but may in certain
cases be liable for losses due to unauthorized or fraudulent transactions if
they do not follow reasonable procedures for verification of telephone
transactions. Such reasonable procedures may include recordings of telephone
transactions (maintained for six months), requests for confirmation of the
shareholder's Social Security Number and current address, and mailings of
confirmations promptly after the transaction.

EXCHANGES OF CLASS B AND CLASS C SHARES. A contingent deferred sales charge
will not be imposed in connection with exchanges among Class B or Class C
shares. For purposes of determining a shareholder's holding period of Class B or
Class C shares in the calculation of the applicable contingent deferred sales

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AIM INVESTOR'S GUIDE

charge, the period of time during which Class B or Class C shares were held
prior to an exchange will be added to the holding period of the applicable Class
B or Class C shares acquired in an exchange.

HOW TO REDEEM SHARES

Shares of the AIM Funds may be redeemed directly through AIM Distributors or
through any dealer/ financial institution who has entered into an agreement with
AIM Distributors. In addition to the obligation of the fund(s) named on the
cover page to redeem shares, AIM Distributors also repurchases shares. Although
a contingent deferred sales charge may be applicable to certain redemptions as
described below, there is no redemption fee imposed when shares are redeemed or
repurchased; however, dealers may charge service fees for handling repurchase
transactions.

MULTIPLE DISTRIBUTION SYSTEM. CLASS B SHARES. Class B shares purchased
under the Multiple Distribution System may be redeemed on any business day of a
Multiple Class Fund at the net asset value per share next determined following
receipt of the redemption order, as described under the caption "Timing and
Pricing of Redemption Orders," less the applicable contingent deferred sales
charge shown in the table below. No deferred sales charge will be imposed (i) on
redemptions of Class B shares following six years from the date such shares were
purchased, (ii) on Class B shares acquired through reinvestments of dividends
and distributions attributable to Class B shares or (iii) on amounts that
represent capital appreciation in the shareholder's account above the purchase
price of the Class B shares.

<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES
CHARGE AS % OF DOLLAR
YEARS SINCE PURCHASE MADE AMOUNT SUBJECT TO CHARGE
- ------------------------------------------------------------------------------------------ ---------------------------
<S> <C>
First..................................................................................... 5%
Second.................................................................................... 4%
Third..................................................................................... 3%
Fourth.................................................................................... 3%
Fifth..................................................................................... 2%
Sixth..................................................................................... 1%
Seventh and Following..................................................................... None
</TABLE>

In determining whether a contingent deferred sales charge is applicable, it
will be assumed that a redemption is made first, of any shares held in the
shareholder's account that are not subject to such charge; second, of shares
derived from reinvestment of dividends and other distributions; third, of shares
held for more than six years from the date such shares were purchased; and
fourth, of shares held less than six years from the date such shares were
purchased. The applicable sales charge will be applied against the lesser of the
current market value of shares redeemed or their original cost.

Class B shares that are acquired during a tender offer by AIM Floating Rate
Fund ("Floating Rate Fund") pursuant to an exchange will be subject, in lieu of
the contingent deferred sales charge described above, to a contingent deferred
sales charge equivalent to the early withdrawal charge on the shares of the
Floating Rate Fund. For purposes of computing such early withdrawal charge, the
holding period of Class B shares being redeemed will include the holding period
of the Floating Rate Fund shares prior to exchange.

CLASS C SHARES. Class C shares purchased under the Multiple Distribution
System may be redeemed on any business day of a Multiple Class Fund at the net
asset value per share next determined following receipt of the redemption order,
as described under the caption "Timing and Pricing of Redemption Orders," less a
1% contingent deferred sales charge. No deferred sales charge will be imposed
(i) on redemptions of Class C shares following one year from the date such
shares were purchased; (ii) on Class C shares acquired through reinvestment of
dividends and distributions attributable to Class C shares; (iii) on amounts
that represent capital appreciation in the shareholder's account above the
purchase price of the Class C shares; (iv) on redemptions of additional
purchases of shares of AIM ADVISOR FLEX FUND, AIM ADVISOR INTERNATIONAL VALUE
FUND, AIM ADVISOR LARGE CAP VALUE FUND, AIM ADVISOR MULTIFLEX FUND, and AIM
ADVISOR REAL ESTATE FUND, by shareholders of record on April 30, 1995 of these
funds (shareholders whose broker/dealers maintain a single omnibus account with
the Transfer Agent on behalf of those shareholders, perform sub-accounting
functions with respect to those shareholders, and are unable to segregate
shareholders of record prior to April 30, 1995 from shareholders whose accounts
were opened after that date will be subject to a CDSC on all purchases made
after March 1, 1996).

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AIM INVESTOR'S GUIDE

WAIVERS. Contingent deferred sales charges on Class B and Class C shares
will be waived on redemptions (1) following the death or post-purchase
disability, as defined in Section 72(m)(7) of the Code, of a shareholder or a
settlor of a living trust (provided AIM Distributors is notified of such death
or post-purchase disability at the time of the redemption request and is
provided with satisfactory evidence of such death or post-purchase disability),
(2) in connection with certain distributions from IRAs, custodial accounts
maintained pursuant to Code Section 403(b), deferred compensation plans
qualified under Code Section 457 and plans qualified under Code Section 401
(collectively, "Retirement Plans"), (3) pursuant to a Systematic Withdrawal
Plan, provided that amounts withdrawn under such plan do not exceed on an annual
basis 12% of the value of the shareholder's investment in Class B or Class C
shares at the time the shareholder elects to participate in the Systematic
Withdrawal Plan, (4) effected pursuant to the right of a Multiple Class Fund to
liquidate a shareholder's account if the aggregate net asset value of shares
held in the account is less than the designated minimum account size described
in the prospectus of such Multiple Class Fund, (5) effected by AIM of its
investment in Class B or Class C shares and (6) of Class C shares where such
investor's dealer of record, due to the nature of the investor's account,
notifies AIM Distributors prior to the time of investment that the dealer waives
the payment otherwise payable to the dealer described in the last paragraph
under the caption "Terms and Conditions of Purchase of the AIM Funds -- All
Groups of AIM Funds."

Waiver category (1) above applies only to redemptions of Class B or Class C
shares held at the time of death or initial determination of post-purchase
disability.

Waiver category (2) above applies only to redemptions resulting from:

(i) required minimum distributions to plan participants or beneficiaries who
are age 70 1/2 or older, and only with respect to that portion of such
distributions which does not exceed 12% annually of the participant's or
beneficiary's account value in a particular AIM Fund;

(ii) in-kind transfers of assets where the participant or beneficiary notifies
AIM Distributors of such transfer no later than the time such transfer
occurs;

(iii) tax-free rollovers or transfers of assets to another Retirement Plan
invested in Class B or Class C shares of one or more Multiple Class Funds;

(iv) tax-free returns of excess contributions or returns of excess deferral
amounts; and

(v) distributions upon the death or disability (as defined in the Code) of the
participant or beneficiary.

Shareholders who purchased Class B shares of the AIM/GT Funds or Class C
shares of AIM GLOBAL TRENDS FUND prior to June 1, 1998 are entitled to certain
additional waivers of the contingent deferred sales charge on those shares as
described in the Statement of Additional Information of each respective fund
under "How to Purchase and Redeem Shares."

CONTINGENT DEFERRED SALES CHARGE PROGRAM FOR LARGE PURCHASES. Except for
purchases of Class B and Class C shares of a Multiple Class Fund and purchases
of shares of the No Load Funds and Lower Load Funds, A CONTINGENT DEFERRED SALES
CHARGE OF 1% APPLIES TO PURCHASES OF $1,000,000 OR MORE THAT ARE REDEEMED WITHIN
18 MONTHS OF THE DATE OF PURCHASE. For a description of the AIM Funds
participating in the program, see "Terms and Conditions of Purchase of the AIM
Funds -- Sales Charges and Dealer Concessions." This charge will be 1% of the
lesser of the value of the shares redeemed (excluding reinvested dividends and
capital gains distributions) or the total original cost of such shares. In
determining whether a contingent deferred sales charge is payable, and the
amount of any such charge, shares not subject to the contingent deferred sales
charge are redeemed first (including shares purchased by reinvested dividends
and capital gains distributions and amounts representing increases from capital
appreciation), and then other shares are redeemed in the order of purchase. No
such charge will be imposed upon exchanges unless the shares acquired by
exchange are redeemed within 18 months of the date the shares were originally
purchased. For purposes of computing this 18-MONTH PERIOD, (i) shares of any
Load Fund or AIM Cash Reserve shares of AIM MONEY MARKET FUND [or Class A shares
of AIM DOLLAR FUND] which were acquired through an exchange of shares which
previously were subject to the 1% contingent deferred sales charge will be
credited with the period of time such exchanged shares were held, and (ii)
shares of any Load Fund which are subject to the 1% contingent deferred sales
charge and which were acquired through an exchange of shares of a Lower Load or
a No Load Fund which previously were not subject to the 1% contingent deferred
sales charge will not be credited with the period of time such exchanged shares
were held. The charge will be waived in the following circumstances: (l)
redemptions of shares by employee benefit plans ("Plans") qualified under
Sections 401 or 457 of the Code,

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AIM INVESTOR'S GUIDE
or Plans created under Section 403(b) of the Code and sponsored by nonprofit
organizations as defined under Section 501(c)(3) of the Code, where shares are
being redeemed in connection with employee terminations or withdrawals, and (a)
the total amount invested in a Plan is at least $1,000,000, (b) the sponsor of a
Plan signs a letter of intent to invest at least $1,000,000 in one or more of
the AIM Funds, or (c) the shares being redeemed were purchased by an
employer-sponsored Plan with at least 100 eligible employees; provided, however,
that Plans created under Section 403(b) of the Code which are sponsored by
public educational institutions shall qualify under (a), (b) or (c) above on the
basis of the value of each Plan participant's aggregate investment in the AIM
Funds, and not on the aggregate investment made by the Plan or on the number of
eligible employees; (2) redemptions of shares following the death or
post-purchase disability, as defined in Section 72(m)(7) of the Code, of a
shareholder or a settlor of a living trust; (3) redemptions of shares purchased
at net asset value by private foundations or endowment funds where the initial
amount invested was at least $1,000,000; (4) redemptions of shares purchased by
an investor in amounts of $1,000,000 or more where such investor's dealer of
record, due to the nature of the investor's account, notifies AIM Distributors
prior to the time of investment that the dealer waives the payments otherwise
payable to the dealer as described in the third paragraph under the caption
"Terms and Conditions of Purchase of the AIM Funds -- All Groups of AIM Funds;"
and (5) pursuant to a Systematic Withdrawal Plan, provided that amounts
withdrawn under such plan do not exceed on an annual basis 12% of the value of
the shareholder's investment in Class A shares at the time the shareholder
elects to participate in the Systematic Withdrawal Plan.

Shareholders who purchased $500,000 or more of Class A shares of the AIM/GT
Funds prior to June 1, 1998 are entitled to certain waivers of the contingent
deferred sales charge on those shares as described in the Statement of
Additional Information under "How to Purchase and Redeem Shares."

REDEMPTIONS BY MAIL. Redemption requests must be in writing and sent to the
Transfer Agent. Upon receipt of a redemption request in proper form, payment
will be made as soon as practicable, but in any event will normally be made
within seven days after receipt. However, in the event of a redemption of shares
purchased by check, the investor may be required to wait up to ten business days
before the redemption proceeds are sent. See "Terms and Conditions of Purchase
of the AIM Funds -- Timing of Purchase Orders."

Requests for redemption must include: (a) original signatures of each
registered owner exactly as the shares are registered; (b) the Fund and the
account number of shares to be redeemed; (c) share certificates, either properly
endorsed or accompanied by a duly executed stock power, for the shares to be
redeemed if such certificates have been issued and the shares are not in the
custody of the Transfer Agent; (d) signature guarantees, as described below; and
(e) any additional documents that may be required for redemption by
corporations, partnership, trusts or other entities. The burden is on the
shareholder to inquire as to whether any additional documentation is required.
Any request not in proper form may be rejected and in such case must be renewed
in writing.

In addition to these requirements, shareholders who have invested in a fund
to establish as IRA, should include the following information along with a
written request for either partial or full liquidation of fund shares; (a) a
statement as to whether or not the shareholder has attained age 59 1/2, and (b)
a statement as to whether or not the shareholder elects to have federal income
tax withheld from the proceeds of the liquidation.

REDEMPTIONS BY TELEPHONE. Shareholders may request a redemption by
telephone. If a shareholder does not wish to allow telephone redemptions by any
person in this account, he should decline that option on the account
application. The telephone redemption feature can be used only if: (a) the
redemption proceeds are to be mailed to the address of record or transferred
electronically or wired to the pre-authorized bank account; (b) there has been
no change of address of record on the account within the preceding 30 days; (c)
the shares to be redeemed are not in certificate form; (d) the person requesting
the redemption can provide proper identification information, and (e) the
proceeds of the redemption do not exceed $50,000. Accounts in AIM Distributors'
prototype retirement plans (such as IRA and IRA/SEP) or 403(b) plans are not
eligible for the telephone redemption option. AIM Distributors has made
arrangements with certain dealers and investment advisors to accept telephone
instructions for the redemption of shares. AIM Distributors reserves the right
to impose conditions on these dealers and investment advisors, including the
condition that they enter into agreements (which contain additional conditions
with respect to the redemption of shares) with AIM Distributors. The Transfer
Agent and AIM Distributors will not be liable for any loss, expense or cost
arising out of any telephone redemption request effected in accordance with the
authorization set forth in the appropriate form if they reasonably believe such
request to be genuine, but may in certain

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AIM INVESTOR'S GUIDE

cases be liable for losses due to unauthorized or fraudulent transactions if
they do not follow reasonable procedures for verification of telephone
transactions. Such reasonable procedures may include recordings of telephone
transactions (maintained for six months), requests for confirmation of the
shareholder's taxpayer identification number and current address, and mailings
of confirmations promptly after the transaction.

EXPEDITED REDEMPTIONS (AIM MONEY MARKET FUND ONLY). If a redemption order
is received prior to 11:30 a.m. Eastern Time, the redemption will be effective
on that day and AIM MONEY MARKET FUND will endeavor to transmit payment on that
same business day. If the redemption order is received after 11:30 a.m. and
prior to NYSE Close, the redemption will be made at the next determined net
asset value and payment will generally be transmitted on the next business day.

REDEMPTIONS BY CHECK (AIM TAX-EXEMPT CASH FUND, AIM Cash Reserve Shares of
AIM MONEY MARKET FUND and Class A shares of AIM DOLLAR FUND). After completing
the appropriate authorization form, shareholders may use checks to effect
redemptions from AIM TAX-EXEMPT CASH FUND, AIM Cash Reserve Shares of AIM MONEY
MARKET FUND and Class A shares of AIM DOLLAR FUND. This privilege does not apply
to retirement accounts or qualified plans. Checks may be drawn in any amount of
$250 or more. Checks drawn against insufficient shares in the account, against
shares held less than ten business days, or in amounts of less than the
applicable minimum will be returned to the payee. The payee of the check may
cash or deposit it in the same way as an ordinary bank check. When a check is
presented on the Transfer Agent for payment, the Transfer Agent will cause a
sufficient number of shares of such fund to be redeemed to cover the amount of
the check. Shareholders are entitled to dividends on the shares redeemed through
the day on which the check is presented to the Transfer Agent for payment.

TIMING AND PRICING OF REDEMPTION ORDERS. Shares of the various AIM Funds
(other than AIM MONEY MARKET FUND) are redeemed at their net asset value next
computed after a request for redemption in proper form (including signature
guarantees and other required documentation for written redemptions) is received
by the Transfer Agent or certain financial institutions (or their designees) who
are authorized to accept redemption orders on behalf of the AIM Funds, provided
that such orders are transmitted to the Transfer Agent prior to the time set for
receipt of such orders, except that shares that are subject to a contingent
deferred sales charge, may be subject to the imposition of deferred sales
charges that will be deducted from the redemption proceeds. See "Multiple
Distribution System" and "Contingent Deferred Sales Charge Program for Large
Purchases." Orders for the redemption of shares received in proper form prior to
NYSE Close on any business day of an AIM Fund will be confirmed at the price
determined as of the close of that day. Orders received after NYSE Close will be
confirmed at the price determined on the next business day of an AIM Fund.
Redemptions of shares of AIM MONEY MARKET FUND received prior to 12:00 noon or
NYSE Close on any business day of the Fund will be confirmed at the price next
determined. It is the responsibility of the dealer/financial institution to
ensure that all orders are transmitted on a timely basis. Any resulting loss
from the dealer/financial institution's failure to submit a request for
redemption within the prescribed time frame will be borne by that
dealer/financial institution. Telephone redemption requests must be made by NYSE
Close on any business day of an AIM Fund and will be confirmed at the price
determined as of the close of that day. No AIM Fund will accept requests which
specify a particular date for redemption or which specify any special
conditions.

Payment of the proceeds of redeemed shares is normally made within seven
days following the redemption date. However, in the event of a redemption of
shares purchased by check, the investor may be required to wait up to ten
business days before the redemption proceeds are sent. See "Terms and Conditions
of Purchase of the AIM Funds -- Timing of Purchase Orders." A charge for special
handling (such as wiring of funds or expedited delivery services) may be made by
the Transfer Agent. The right of redemption may not be suspended or the date of
payment upon redemption postponed except under unusual circumstances such as
when trading on the NYSE is restricted or suspended. Payment of the proceeds of
redemptions relating to shares for which checks sent in payment have not yet
cleared will be delayed until it is determined that the check has cleared, which
may take up to ten business days from the date that the check is received.

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AIM INVESTOR'S GUIDE
address that has been changed within the past 30 days; (5) requests to transfer
the registration of shares to another owner, (6) telephone exchange and
telephone redemption authorization forms; (7) changes in previously designated
wiring or electronic funds transfer instructions, and (8) written redemptions or
exchanges of shares previously reported as lost, whether or not the redemption
amount is under $50,000 or the proceeds are to be sent to the address of record.
These requirements may be waived or modified upon notice to shareholders.

Acceptable guarantors include banks, broker-dealers, credit unions, national
securities exchanges, savings associations and any other organization, provided
that such institution or organization qualifies as an "eligible guarantor
institution" as that term in defined in rules adopted by the Securities and
Exchange Commission ("SEC"), and further provided that such guarantor
institution is listed in one of the reference guides contained in the Transfer
Agent's current Signature Guarantee Standards and Procedures, such as certain
domestic banks, credit unions, securities dealers, or securities exchanges. The
Transfer Agent will also accept signatures with either: (1) a signature
guaranteed with a medallion stamp of the STAMP Program, or (2) a signature
guaranteed with a medallion stamp of the NYSE Medallion Signature Program,
provided that in either event, the amount of the transaction involved does not
exceed the surety coverage amount indicated on the medallion. For information
regarding whether a particular institution or organization qualifies as an
"eligible guarantor institution," an investor should contact the Client Services
Department of AFS.

REINSTATEMENT PRIVILEGE (CLASS A SHARES ONLY). Within 90 days of a
redemption, a shareholder may invest all or part of the redemption proceeds in
Class A shares of any AIM Fund at the net asset value next computed after
receipt by the Transfer Agent of the funds to be reinvested; provided, however,
if the redemption was made from Class A shares of either AIM LIMITED MATURITY
TREASURY FUND or AIM TAX-FREE INTERMEDIATE FUND, the reinvested proceeds will be
subject to the difference in sales charge between the shares redeemed and the
shares the proceeds are reinvested in. The shareholder must ask the Transfer
Agent for such privilege at the time of reinvestment. A realized gain on the
redemption is taxable, and reinvestment may alter any capital gains payable. If
there has been a loss on the redemption and shares of the same fund are
repurchased, all of the loss may not be tax deductible, depending on the timing
and amount reinvested. Under the Code, if the redemption proceeds of fund shares
on which a sales charge was paid are reinvested in shares of the same fund, or
exchanged for shares of another AIM Fund, at a reduced sales charge within 90
days of the payment of the sales charge, the shareholder's basis in the fund
shares redeemed may not include the amount of the sales charge paid, thereby
reducing the loss or increasing the gain recognized from the redemption;
however, the shareholder's basis in the fund shares purchased will include the
sales charge. Each AIM Fund may amend, suspend or cease offering the privilege
at any time as to shares redeemed after the date of such amendment, suspension
or cessation. This privilege may only be exercised once each year by a
shareholder with respect to each AIM Fund.

Shareholders who are assessed a contingent deferred sales charge in
connection with the redemption of Class A shares and who subsequently reinvest a
portion or all of the value of the redeemed shares in Class A shares of any AIM
Fund within 90 days after such redemption may do so at net asset value if such
privilege is claimed at the time of reinvestment. Such reinvested proceeds will
not be subject to either a front-end sales charge at the time of reinvestment or
an additional contingent deferred sales charge upon subsequent redemption. In
order to exercise this reinvestment privilege, the shareholder must notify the
Transfer Agent of his or her intent to do so at the time of reinvestment. This
reinvestment privilege does not apply to Class B or Class C shares.

DETERMINATION OF NET ASSET VALUE

The net asset value per share (or share price) of each AIM Fund is
determined as of 4:00 p.m. Eastern Time (12:00 noon Eastern Time and NYSE Close
with respect to AIM MONEY MARKET FUND) on each "business day" of a fund as
previously defined. In the event the NYSE closes early (i.e. before 4:00 p.m.
Eastern Time) on a particular day, the net asset value of an AIM Fund's share
will be determined as of the close of the NYSE on such day. For purposes of
defining net asset value per share, futures and options contracts generally will
be valued 15 minutes after the close of trading of the NYSE. The net asset value
per share is calculated by subtracting a class' liabilities from its assets and
dividing the result by the total number of class shares outstanding. The
determination of net asset value per share is made in accordance with generally
accepted accounting principles. Among other items, liabilities include accrued
expenses and dividends payable, and total assets include portfolio securities
valued at their market value, as well as income accrued but

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AIM INVESTOR'S GUIDE
not yet received. Securities for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
supervision of the fund's officers and in accordance with methods which are
specifically authorized by its governing Board of Directors or Trustees.
Short-term obligations with maturities of 60 days or less, and the securities
held by the Money Market Funds, are valued at amortized cost as reflecting fair
value. AIM HIGH INCOME MUNICIPAL FUND, AIM MUNICIPAL BOARD FUND, AIM TAX-EXEMPT
BOND FUND OF CONNECTICUT and AIM TAX-FREE INTERMEDIATE FUND value variable rate
securities that have an unconditional demand or put feature exercisable within
seven days or less at par, which reflects the market value of such securities.

Generally, trading in foreign securities, corporate bonds, U.S. Government
securities and money market instruments is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities used
in computing the net asset value of an AIM Fund's shares are determined as of
such times. Foreign currency exchange rates are also generally determined prior
to the close of the NYSE. Occasionally, events affecting the values of such
securities and such exchange rates may occur between the times at which the
values of the securities are determined and the close of the NYSE which will not
be reflected in the computation of an AIM Fund's net asset value. If events
materially affecting the value of such securities occur during such period, then
these securities will be valued at their fair value as determined in good faith
by or under the supervision of the Board of Directors or Trustees of the
applicable AIM Fund. Securities listed primarily on foreign exchanges may trade
on days when the NYSE is closed (such as a Saturday). As a result, the net asset
value of a fund may be significantly affected by such trading on days when
shareholders cannot purchase or redeem shares of that fund.

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AIM INVESTOR'S GUIDE

DIVIDENDS, DISTRIBUTIONS AND TAX MATTERS

DIVIDENDS AND DISTRIBUTIONS

Each AIM Fund's policy regarding the payment of dividends and distributions
is set forth below.

<TABLE>
<CAPTION>
DISTRIBUTIONS DISTRIBUTIONS
OF NET OF NET
DIVIDENDS FROM REALIZED REALIZED
NET INVESTMENT SHORT-TERM LONG-TERM
FUND INCOME CAPITAL GAINS CAPITAL GAINS
- -------------------------------------------------- ---------------------------- ----------------- -------------
<S> <C> <C> <C>
AIM ADVISOR FLEX FUND............................. declared and paid quarterly quarterly annually
AIM ADVISOR INTERNATIONAL VALUE FUND.............. declared and paid annually annually annually
AIM ADVISOR LARGE CAP VALUE FUND.................. declared and paid quarterly quarterly annually
AIM ADVISOR MULTIFLEX FUND........................ declared and paid quarterly quarterly annually
AIM ADVISOR REAL ESTATE FUND...................... declared and paid quarterly quarterly annually
AIM AGGRESSIVE GROWTH FUND........................ declared and paid annually annually annually
AIM AMERICA VALUE FUND............................ declared and paid annually annually annually
AIM ASIAN GROWTH FUND............................. declared and paid annually annually annually
AIM BALANCED FUND................................. declared and paid quarterly annually annually
AIM BLUE CHIP FUND................................ declared and paid annually annually annually
AIM CAPITAL DEVELOPMENT FUND...................... declared and paid annually annually annually
AIM CHARTER FUND.................................. declared and paid quarterly annually annually
AIM CONSTELLATION FUND............................ declared and paid annually annually annually
AIM DEVELOPING MARKETS FUND....................... declared and paid annually annually annually
AIM DOLLAR FUND................................... declared daily; paid monthly annually annually
AIM EMERGING MARKETS FUND......................... declared and paid annually annually annually
AIM EUROPE GROWTH FUND............................ declared and paid annually annually annually
AIM EUROPEAN DEVELOPMENT FUND..................... declared and paid annually annually annually
AIM GLOBAL AGGRESSIVE GROWTH FUND................. declared and paid annually annually annually
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND.... declared and paid annually annually annually
AIM GLOBAL FINANCIAL SERVICES FUND................ declared and paid annually annually annually
AIM GLOBAL GOVERNMENT INCOME FUND................. declared and paid monthly annually annually
AIM GLOBAL GROWTH FUND............................ declared and paid annually annually annually
AIM GLOBAL GROWTH & INCOME FUND................... declared and paid quarterly annually annually
AIM GLOBAL HEALTH CARE FUND....................... declared and paid annually annually annually
AIM GLOBAL HIGH INCOME FUND....................... declared and paid monthly annually annually
AIM GLOBAL INCOME FUND............................ declared daily; paid monthly annually annually
AIM GLOBAL INFRASTRUCTURE FUND.................... declared and paid annually annually annually
AIM GLOBAL RESOURCES FUND......................... declared and paid annually annually annually
AIM GLOBAL TELECOMMUNICATIONS FUND................ declared and paid annually annually annually
AIM GLOBAL TRENDS FUND............................ declared and paid annually annually annually
AIM GLOBAL UTILITIES FUND......................... declared daily; paid monthly annually annually
AIM HIGH INCOME MUNICIPAL FUND.................... declared daily; paid monthly annually annually
AIM HIGH YIELD FUND............................... declared daily; paid monthly annually annually
AIM INCOME FUND................................... declared daily; paid monthly annually annually
AIM INTERMEDIATE GOVERNMENT FUND.................. declared daily; paid monthly annually annually
AIM INTERNATIONAL EQUITY FUND..................... declared and paid annually annually annually
AIM INTERNATIONAL GROWTH FUND..................... declared and paid annually annually annually
AIM JAPAN GROWTH FUND............................. declared and paid annually annually annually
AIM LATIN AMERICAN GROWTH FUND.................... declared and paid annually annually annually
AIM LIMITED MATURITY TREASURY FUND................ declared daily; paid monthly annually annually
AIM MID CAP GROWTH FUND........................... declared and paid annually annually annually
AIM MONEY MARKET FUND............................. declared daily; paid monthly at least annually annually
AIM MUNICIPAL BOND FUND........................... declared daily; paid monthly annually annually
AIM NEW PACIFIC GROWTH FUND....................... declared and paid annually annually annually
AIM SELECT GROWTH FUND............................ declared and paid annually annually annually
AIM SMALL CAP EQUITY FUND......................... declared and paid annually annually annually
AIM SMALL CAP OPPORTUNITIES FUND.................. declared and paid annually annually annually
AIM STRATEGIC INCOME FUND......................... declared and paid monthly annually annually
AIM TAX-EXEMPT BOND FUND OF CONNECTICUT........... declared daily; paid monthly annually annually
AIM TAX-EXEMPT CASH FUND.......................... declared daily; paid monthly at least annually annually
AIM TAX-FREE INTERMEDIATE FUND.................... declared daily; paid monthly annually annually
AIM VALUE FUND.................................... declared and paid annually annually annually
AIM WEINGARTEN FUND............................... declared and paid annually annually annually
AIM WORLDWIDE GROWTH FUND......................... declared and paid annually annually annually
</TABLE>

In determining the amount of capital gains, if any, available for
distribution, net capital gains are offset against available net capital losses,
if any, carried forward from previous fiscal periods. Each AIM Fund may make
additional distributions, if necessary, to avoid a non-deductible 4% federal
excise tax on certain undistributed income and capital gain (the "Excise Tax").

A-23
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AIM INVESTOR'S GUIDE

like shares of another Multiple Class Fund, to the extent permitted. For funds
that do not declare a dividend daily, such dividends and distributions will be
reinvested at the net asset value per share determined on the ex-dividend date.
For funds that declare a dividend daily, such dividends and distributions will
be reinvested at the net asset value per share determined on the payable date.
Shareholders may elect, by written notice to the Transfer Agent, to receive such
distributions, or the dividend portion thereof, in cash, or to invest such
dividends and distributions in shares of another fund in the AIM Funds; provided
that (i) dividends and distributions attributable to Class B shares may only be
reinvested in Class B shares, (ii) dividends and distributions attributable to
Class C shares may only be reinvested in Class C shares, (iii) dividends and
distributions attributable to Class A shares may not be reinvested in Class B or
Class C shares, and (iv) dividends and distributions attributable to the AIM
Cash Reserve Shares of AIM MONEY MARKET FUND may not be reinvested in the Class
A shares of that Fund or in any Class B or Class C shares. Investors who have
not previously selected such a reinvestment option on the account application
form may contact the Transfer Agent at any time to obtain a form to authorize
such reinvestments in another AIM Fund. Such reinvestments into the AIM Funds
are not subject to sales charges, and shares so purchased are automatically
credited to the account of the shareholder.

Dividends on Class B and Class C shares of an AIM Fund are expected to be
lower than dividends for Class A shares of that fund or AIM Cash Reserve Shares
because of higher distribution fees paid by Class B and Class C shares.
Dividends on all shares may also be affected by other class-specific expenses.

Changes in the form of dividend and distribution payments may be made by the
shareholder at any time by notice to the Transfer Agent and are effective as to
any subsequent payment if such notice is received by the Transfer Agent prior to
the record date of such payment. Any dividend and distribution election remains
in effect until the Transfer Agent receives a revised written election by the
shareholder.

Any dividend or distribution paid by a fund which does not declare dividends
daily has the effect of reducing the net asset value per share on the
ex-dividend date by the amount of the dividend or distribution. Therefore, a
dividend or distribution declared shortly after a purchase of shares by an
investor would represent, in substance, a return of capital to the shareholder
with respect to such shares even though it would be subject to income taxes, as
discussed below.

TAX MATTERS

Each AIM Fund has qualified and intends to continue to qualify for treatment
as a regulated investment company under Subchapter M of the Code. As long as a
fund qualifies for this tax treatment, it is not subject to federal income tax
on net investment income, net capital gains and net gains from foreign currency
transactions, if any, that are distributed to its shareholders. Each fund, for
all federal tax purposes (including determining taxable income, distribution
requirements and other requirements of Subchapter M), is treated as a separate
corporation. Therefore, no fund may offset its gains against another fund's
losses, and each fund must individually comply with all of the provisions of the
Code that are applicable to its operations.

TAX TREATMENT OF DIVIDENDS AND DISTRIBUTIONS--GENERAL. Because each AIM
Fund intends to distribute to its shareholders substantially all of its net
investment income, net realized capital gains and net gains from foreign
currency transactions, if any, it is not expected that any such fund will be
required to pay any federal income tax. Each AIM Fund also intends to meet the
distribution requirements of the Code to avoid imposition of the Excise Tax.
Nevertheless, shareholders normally are subject to federal income tax, and any
applicable state and local income taxes, on the dividends and distributions
received by them from a fund whether in the form of cash or additional fund
shares, except for "exempt-interest dividends" paid by AIM HIGH INCOME MUNICIPAL
FUND, AIM MUNICIPAL BOND FUND, AIM TAX-EXEMPT BOND FUND OF CONNECTICUT, AIM
TAX-EXEMPT CASH FUND and AIM TAX-FREE INTERMEDIATE FUND (the "Tax-Exempt
Funds"), which are exempt from federal income tax. With respect to tax-exempt
shareholders, dividends and distributions from the AIM Funds are not subject to
federal income taxation to the extent permitted under the applicable tax
exemption.

A-24
<PAGE>
AIM INVESTOR'S GUIDE
corporate taxpayer's net capital gain depending on the taxpayer's holding period
and marginal rate of federal income tax -- generally, 28% for gain recognized on
capital assets held for more than one year but not more than 18 months and 20%
(10% for taxpayers in the 15% marginal tax bracket) for gain recognized on
capital assets held for more than 18 months. An AIM Fund may divide each net
capital gain distribution into a 28% rate gain distribution and a 20% rate gain
distribution (in accordance with its holding periods for the securities it sold
that generated the distributed gain), in which event its shareholders must treat
those portions accordingly; thus, the relevant holding period is determined by
how long the fund has held the securities on which the gain was realized, not by
how long a shareholder has held fund shares.

Dividends paid by a fund (but not other distributions) may qualify for the
federal 70% dividends received deduction for corporate shareholders to the
extent of the qualifying dividends received by the fund on domestic common or
preferred stock. It is not likely that dividends received from AIM ADVISOR
INTERNATIONAL VALUE FUND, AIM ADVISOR REAL ESTATE FUND, AIM ASIAN GROWTH FUND,
AIM DEVELOPING MARKETS FUND, AIM DOLLAR FUND, AIM EMERGING MARKETS FUND, AIM
EUROPEAN DEVELOPMENT FUND, AIM EUROPE GROWTH FUND, AIM GLOBAL AGGRESSIVE GROWTH
FUND, AIM GLOBAL GOVERNMENT INCOME FUND, AIM GLOBAL GROWTH FUND, AIM GLOBAL HIGH
INCOME FUND, AIM GLOBAL INCOME FUND, AIM GLOBAL TRENDS FUND, AIM HIGH YIELD
FUND, AIM INCOME FUND, AIM INTERMEDIATE GOVERNMENT FUND, AIM INTERNATIONAL
EQUITY FUND, AIM INTERNATIONAL GROWTH FUND, AIM JAPAN GROWTH FUND, AIM LATIN
AMERICAN GROWTH FUND, AIM LIMITED MATURITY TREASURY FUND, AIM MONEY MARKET FUND,
AIM NEW PACIFIC GROWTH FUND, AIM STRATEGIC INCOME FUND or any of the Tax-Exempt
Funds will qualify for this dividends received deduction.

Shortly after the end of each year, shareholders will receive information
regarding the amount and federal income tax treatment of all dividends and
distributions paid during the year. The information regarding capital gain
distributions will designate the portions thereof subject to the different
maximum rates of tax applicable to non-corporate taxpayers' net capital gain
indicated above. Certain dividends and distributions declared in October,
November or December of a calendar year are taxable to shareholders as though
received on December 31 of that year if paid to them during January of the
following calendar year. No gain or loss will be recognized by shareholders upon
the automatic conversion of Class B shares of a Multiple Class Fund into Class A
shares of such fund.

For each redemption of a fund's shares by a non-exempt shareholder, the fund
or the securities dealer effecting the transaction is required to file an
information return with the IRS.

TO AVOID BEING SUBJECT TO FEDERAL INCOME TAX WITHHOLDING AT THE RATE OF 31%
ON TAXABLE DIVIDENDS, DISTRIBUTIONS AND REDEMPTION PAYMENTS, SHAREHOLDERS OF A
FUND MUST FURNISH THE FUND WITH THEIR TAXPAYER IDENTIFICATION NUMBER AND CERTIFY
UNDER PENALTIES OF PERJURY THAT THE NUMBER PROVIDED IS CORRECT AND THAT THEY ARE
NOT SUBJECT TO BACKUP WITHHOLDING FOR ANY REASON.

Under the Code, nonresident alien individuals, foreign partnerships and
foreign corporations may be subject to federal income tax withholding at a 30%
rate on ordinary income dividends. Under applicable treaty law, residents of
treaty countries may qualify for a reduced rate of withholding or a withholding
exemption.

DIVIDENDS AND DISTRIBUTIONS MAY BE SUBJECT TO TREATMENT UNDER FOREIGN, STATE
OR LOCAL TAX LAWS THAT DIFFERS FROM THE FEDERAL INCOME TAX CONSEQUENCES
DISCUSSED HEREIN. ADDITIONAL INFORMATION ABOUT TAXES IS SET FORTH IN THE
STATEMENTS OF ADDITIONAL INFORMATION. INVESTORS SHOULD CONSULT THEIR TAX
ADVISORS BEFORE INVESTING.

TAX-EXEMPT FUNDS -- SPECIAL TAX INFORMATION. Shareholders will not be
required to include the "exempt-interest" portion of dividends paid by the
Tax-Exempt Funds in their gross income for federal income tax purposes. However,
shareholders will be required to report the receipt of exempt-interest dividends
and other tax-exempt interest on their federal income tax returns. Moreover,
exempt-interest dividends from the Tax-Exempt Funds may be subject to state
income taxes, may affect the amount of social security and railroad retirement
benefits subject to federal income tax, may affect the deductibility of interest
on certain indebtedness of a shareholder, and may have other collateral federal
income tax consequences. In addition, the Tax-Exempt Funds may invest in
Municipal Securities the interest on which will constitute an item of tax
preference and which therefore could give rise to a federal alternative minimum
tax liability for certain shareholders; each Tax-Exempt Fund may invest up to
20% of its net assets in such securities and other

A-25
<PAGE>
AIM INVESTOR'S GUIDE
taxable securities. For additional information concerning the alternative
minimum tax and certain collateral tax consequences of the receipt of
exempt-interest dividends, see the Statements of Additional Information
applicable to the Tax-Exempt Funds.

The Tax-Exempt Funds may pay dividends to shareholders that are taxable, but
will endeavor to avoid investments that would result in taxable dividends. The
percentage of dividends that constitutes exempt-interest dividends, and the
percentage thereof (if any) that constitutes items of tax preference, will be
determined annually. These percentages may differ from the actual percentages
for any particular day.

To the extent that dividends are derived from taxable investments or net
realized short-term capital gains, they will constitute ordinary income for
federal income tax purposes, whether received in cash or additional fund shares.
Distributions of net capital gain will be taxable as long-term capital gains,
whether received in cash or additional fund shares and regardless of the length
of time a shareholder may have held his shares.

From time to time, proposals have been introduced before Congress that would
have the effect of reducing or eliminating the federal tax exemption on
Municipal Securities. If such a proposal were enacted, the ability of the
Tax-Exempt Funds to pay exempt-interest dividends might be adversely affected.

AIM AMERICA VALUE FUND, AIM DOLLAR FUND, AIM GLOBAL GOVERNMENT INCOME FUND,
AIM GLOBAL GROWTH & INCOME FUND, AIM GLOBAL HIGH INCOME FUND, AIM INTERMEDIATE
GOVERNMENT FUND, AIM LIMITED MATURITY TREASURY FUND, AIM MID CAP GROWTH FUND,
AIM SMALL CAP EQUITY FUND, AIM STRATEGIC INCOME FUND -- SPECIAL TAX
INFORMATION. Certain states exempt from income taxes dividends paid by mutual
funds attributable to interest on U.S. Treasury and certain other U.S.
government obligations. Investors should consult with their own tax advisors
concerning the availability of such exemption.

AIM ADVISOR INTERNATIONAL VALUE FUND, AIM ASIAN GROWTH FUND, AIM DEVELOPING
MARKETS FUND, AIM EMERGING MARKETS FUND, AIM EUROPE GROWTH FUND, AIM EUROPEAN
DEVELOPMENT FUND, AIM GLOBAL AGGRESSIVE GROWTH FUND, AIM GLOBAL CONSUMER
PRODUCTS AND SERVICES FUND, AIM GLOBAL FINANCIAL SERVICES FUND, AIM GLOBAL
GROWTH FUND, AIM GLOBAL GROWTH & INCOME FUND, AIM GLOBAL HEALTH CARE FUND, AIM
GLOBAL INCOME FUND, AIM GLOBAL INFRASTRUCTURE FUND, AIM GLOBAL RESOURCES FUND,
AIM GLOBAL TELECOMMUNICATIONS FUND, AIM GLOBAL UTILITIES FUND, AIM INTERNATIONAL
EQUITY FUND, AIM INTERNATIONAL GROWTH FUND, AIM JAPAN GROWTH FUND, AIM LATIN
AMERICAN GROWTH FUND, AIM NEW PACIFIC GROWTH FUND, AIM WORLDWIDE GROWTH FUND --
SPECIAL TAX INFORMATION. For taxable years in which it is eligible to do so,
each of these funds may elect to pass through to its shareholders credits for
foreign taxes paid. If a fund makes such an election, a shareholder who receives
a distribution (1) will be required to include in gross income his proportionate
share of foreign taxes allocable to the distribution and (2) may claim a credit
or deduction for such share for his taxable year in which the distribution is
received, subject to the general limitations imposed on the allowance of foreign
tax credits and deductions. Shareholders should also note that certain gains or
losses attributable to fluctuations in exchange rates or foreign currency
forward contracts may increase or decrease the amount of income of the fund
available for distribution to shareholders and should note that if, for any
fund, such losses exceed other income during a taxable year, the fund would not
be able to pay ordinary income dividends for that year.

GENERAL INFORMATION

CUSTODIAN AND TRANSFER AGENT. State Street Bank and Trust Company, 225
Franklin Street, Boston, Massachusetts 02110, serves as custodian for the
portfolio securities and cash of the AIM Funds other than AIM HIGH INCOME
MUNICIPAL FUND, AIM MUNICIPAL BOND FUND, AIM LIMITED MATURITY TREASURY FUND, AIM
TAX-EXEMPT BOND FUND OF CONNECTICUT, AIM TAX-EXEMPT CASH FUND and AIM TAX-FREE
INTERMEDIATE FUND, for which The Bank of New York, 90 Washington Street, 11th
Floor, New York, New York 10286, serves as custodian. Chase Bank of Texas, N.A.,
P.O. Box 2558, Houston, Texas 77252-8084, serves as Sub-Custodian for retail
purchases of the AIM Funds.

A I M Fund Services, Inc., P.O. Box 4739, Houston, Texas 77210-4739, a
wholly-owned subsidiary of AIM, serves as each AIM Fund's transfer agent and
dividend payment agent.

SHAREHOLDER INQUIRIES. Shareholder inquiries concerning their accounts
should be directed to an A I M Fund Services, Inc. Client Services
Representative by calling (800) 959-4246. The Transfer Agent may impose certain
copying charges for requests for copies of shareholder account statements and
other historical account information older than the current year and the
immediately preceding year.

A-26
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AIM INVESTOR'S GUIDE

YEAR 2000 COMPLIANCE PROJECT. In providing services to the AIM Funds, AIM
Management and its subsidiaries rely on both internal software systems as well
as external software systems provided by third parties (the "Software"). Many
software systems in use today are unable to distinguish between the year 2000
from the year 1900. This defect if not cured will likely adversely affect the
services that AIM Management, its subsidiaries and other service providers to
the AIM Funds provide the AIM Funds and their shareholders.

To address this issue, AIM Management and its subsidiaries, together with
independent technology consultants, are undertaking a comprehensive Year 2000
Compliance Project (the "Project"). The Project consists of three phases, namely
(i) inventorying every software application in use at AIM Management and its
subsidiaries, as well as remote, third party software systems on which AIM
Management and its subsidiaries rely, (ii) identifying those applications that
may not function properly after December 31, 1999, and (iii) correcting and
subsequently testing those applications that may not function properly after
December 31, 1999. Phases (i) and (ii) are complete and Phase (iii) has
commenced. The Project is scheduled to be completed during the fourth quarter of
1998. Software applications acquired by AIM Management and its subsidiaries
after completion of the Project will be viewed to confirm Year 2000 compliance
upon installation.

OTHER INFORMATION. This Prospectus sets forth basic information that
investors should know about the fund(s) named on the cover page prior to
investing. Recipients of this Prospectus will be provided with a copy of the
annual report of the fund(s) to which this Prospectus relates, upon request and
without charge. If several members of a household own shares of the same fund,
only one annual or semi-annual report will be mailed to that address. To receive
additional copies, please call (800) 347-4246, or write to A I M Distributors,
Inc., P.O. Box 4739, Houston, Texas 77210-4739. A Statement of Additional
Information has been filed with the SEC and is available upon request and
without charge, by writing or calling AIM Distributors. The SEC maintains a Web
site at http://www.sec.gov that contains the Statement of Additional
Information, material incorporated by reference, and other information regarding
the Fund. This Prospectus omits certain information contained in the
registration statement filed with the SEC. Copies of the registration statement,
including items omitted from this Prospectus, may be obtained from the SEC by
paying the charges prescribed under its rules and regulations.

A-27
<PAGE>
AIM DOLLAR FUND

[LOGO]

INVESTMENT MANAGER
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173

SUB-ADVISER
INVESCO (NY), Inc.
50 California Street, 27th Floor
San Francisco, CA 94111

PRINCIPAL UNDERWRITER
A I M Distributors, Inc.
P.O. Box 4739
Houston, TX 77210-4739

TRANSFER AGENT
A I M Fund Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110

INDEPENDENT ACCOUNTANTS
[ ]

[ ]
[ ]
[ ]

For more complete information about any other fund in The AIM Family of
Funds-Registered Trademark-, including charges and expenses, please call
(800) 347-4246 or write to A I M Distributors, Inc. and request a free
prospectus. Please read the prospectus carefully before you invest or send
money.

<PAGE>

[LOGO]

AIM DOLLAR FUND:
ADVISOR CLASS

PROSPECTUS -- SEPTEMBER 8, 1998
- --------------------------------------------------------------------------------

This Prospectus contains information about AIM Dollar Fund (the "Fund"), which
is a diversified series of AIM Investment Portfolios (the "Trust"), an open-end,
series, management investment company. The Fund is a diversified portfolio which
seeks maximum current income consistent with liquidity and conservation of
capital. The Fund may invest in a wide variety of high quality, U.S.
dollar-denominated money market instruments, including obligations issued or
guaranteed by the U.S. and foreign governments, their agencies and
instrumentalities; U.S. and non-U.S. corporate obligations; and instruments of
U.S. and foreign banks.

THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.

This Prospectus sets forth concisely the information about the Fund that
prospective investors should know before investing. It should be read and
retained for future reference. A Statement of Additional Information, dated
September 8, 1998, has been filed with the Securities and Exchange Commission
("SEC") and is incorporated herein by reference. The Statement of Additional
Information is available without charge upon written request to the Trust at 11
Greenway Plaza, Suite 100, Houston, Texas 77046-1173, or calling (800) 347-4246.
The SEC maintains a Web site at http://www.sec.gov that contains the Statement
of Additional Information, material incorporated by reference, and other
information regarding the Fund. Additional information about the Fund may also
be obtained from http://www.aimfunds.com.

THE FUND'S SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND THE FUND'S SHARES ARE NOT FEDERALLY INSURED OR GUARANTEED BY
THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY. SHARES OF THE FUND INVOLVE INVESTMENT RISKS,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.

- --------------------------------------------------------------------------------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION
PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Prospectus Page 1
<PAGE>
AIM DOLLAR FUND

TABLE OF CONTENTS
- ------------------------------------------------------------

<TABLE>
<CAPTION>
Page
---------
<S> <C>
Summary................................................................................... 2
Financial Highlights...................................................................... 5
Investment Objectives and Policies........................................................ 6
Management................................................................................ 8
Other Information......................................................................... 10
</TABLE>

- --------------------------------------------------------------------------------

SUMMARY

- ------------------------------------------------------------

<TABLE>
<S> <C> <C>
The Fund: The Fund is a diversified series of the Trust.

Investment Objective: The Fund seeks maximum current income consistent with liquidity and conservation of capital.

Principal Investments: The Fund invests in a wide variety of high quality U.S. dollar-denominated money market instruments
of U.S. and non-U.S. issuers.

Investment Managers: The Fund is managed by AIM Advisors, Inc. ("AIM") and is sub-advised by INVESCO (NY), Inc. (the
"Sub-adviser"). AIM and the Sub-adviser and their worldwide asset management affiliates provide
investment management and/or administrative services to institutional, corporate and individual
clients around the world. AIM and the Sub-adviser are both indirect wholly owned subsidiaries of
AMVESCAP PLC. AMVESCAP PLC and its subsidiaries are an independent investment management group that
has a significant presence in the institutional and retail segment of the investment management
industry in North America and Europe, and a growing presence in Asia. AIM was organized in 1976 and,
together with its subsidiaries, currently advises approximately 90 investment company portfolios.
</TABLE>

Prospectus Page 2
<PAGE>
AIM DOLLAR FUND

SUMMARY
(Continued)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Purchasing Shares: Advisor Class shares are offered through this Prospectus to (a) trustees or other fiduciaries
purchasing shares for employee benefit plans which are sponsored by organizations which have at least
1,000 employees; (b) any account with assets of at least $10,000 if (i) a financial planner, trust
company, bank trust department or registered investment adviser has investment discretion over such
account, and (ii) the account holder pays such person as compensation for its advice and other
services an annual fee of at least 0.50% on the assets in the account; (c) any account with assets of
a least $10,000 if (i) such account is established under a "wrap fee" program, and (ii) the account
holder pays the sponsor of such program an annual fee of at least 0.50% on the assets in the account;
(d) accounts advised by the Sub-adviser or one of the companies formerly affiliated with the Asset
Management Division of Liechtenstein Global Trust AG, provided such accounts were invested in Advisor
Class shares of any of the funds in The AIM Family of Funds on May 29, 1998; and (e) any of the
companies composing or affiliated with AMVESCAP PLC. Pursuant to a separate prospectus the Fund also
offers Class A and Class B shares, which represent interests in the Fund. The Class A and Class B
shares have different distribution arrangements.

Initial investments in Advisor Class shares must be at least $500 and additional investments must be
at least $50. The distributor of the Advisor Class shares is A I M Distributors, Inc. ("AIM
Distributors"), P.O. Box 4739, Houston, TX 77210-4739. See "How to Purchase Shares."

Exchange Privilege: The Fund is among those mutual funds distributed by AIM Distributors (collectively, "The AIM Family
of Funds"). Advisor Class shares of the Fund may be exchanged for Advisor Class shares of certain
funds in the AIM Family of Funds in the manner and subject to the policies and charges set forth
herein. See "Exchange Privilege."

Redeeming Shares: Advisor Class shareholders of the Fund may redeem all or a portion of their shares at net asset value
on any business day. See "How to Redeem Shares."

Distributions: Dividends are declared daily and paid monthly from available net investment income and any realized
net short-term capital gain. Dividends and distributions may be reinvested automatically in Advisor
Class shares or in Advisor Class shares of certain funds in the AIM Family of Funds without a sales
charge.
</TABLE>

Prospectus Page 3
<PAGE>
AIM DOLLAR FUND

TABLE OF FEES AND EXPENSES. The expenses and maximum transaction costs
associated with investing in the Advisor Class shares of the Fund are reflected
in the following table (1):

<TABLE>
<S> <C>
SHAREHOLDER TRANSACTION COSTS:
Sales charge on purchases of shares......................................................................... None
Sales charges on reinvested distributions to shareholders................................................... None
Maximum contingent deferred sales charge (as a % of net asset value at time of purchase or sale, whichever
is less)................................................................................................. None
Redemption charges.......................................................................................... None
Exchange fees............................................................................................... None

ANNUAL FUND OPERATING EXPENSES (2):
(AS A % OF AVERAGE NET ASSETS)
Investment management and administration fees............................................................... 0.50%
12b-1 distribution and service fees......................................................................... None
Other expenses (after waivers).............................................................................. 0.50%
-----------
Total Fund Operating Expenses................................................................................. 1.00%
-----------
-----------
</TABLE>

HYPOTHETICAL EXAMPLE OF EFFECT OF EXPENSES (3):

An investor would directly or indirectly pay the following expenses at the end
of the periods shown on a $1,000 investment in the Fund, assuming a 5% annual
return:

<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
----- ----------- ----- -----
<S> <C> <C> <C> <C>
Advisor Class shares..................................................... $ 10 $ 32 $ 55 $ 123
</TABLE>

- --------------

(1) THIS TABLE IS INTENDED TO ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS
COSTS AND EXPENSES ASSOCIATED WITH INVESTING IN THE FUND.

(2) Expenses are based on the Fund's fiscal year ended December 31, 1997. "Other
Expenses" include custody, transfer agency, legal, audit and other operating
expenses. Effective January 1, 1998, AIM has undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest and
extraordinary expenses) to the annual rate of 1.00% of the average daily net
assets of the Fund's Advisor Class shares. See "Management" herein and the
Statement of Additional Information for more information. Without
reimbursements, "Other expenses" and "Total Fund Operating Expenses" would
have been 0.53% and 1.03%, respectively, for the Advisor Class shares of the
Fund. Investors purchasing Advisor Class shares through financial planners,
trust companies, bank trust departments or registered investment advisers,
or under a "wrap fee" program, will be subject to additional fees charged by
such entities or by the sponsors of such programs. Where any account advised
by one of the companies affiliated with AMVESCAP PLC invests in Advisor
Class shares of the Fund, such account shall not be subject to duplicative
advisory fees.

(3) THE "HYPOTHETICAL EXAMPLE" IS NOT A REPRESENTATION OF PAST OR FUTURE
EXPENSES. THE FUND'S ACTUAL EXPENSES, AND AN INVESTOR'S DIRECT AND INDIRECT
EXPENSES, MAY BE MORE OR LESS THAN THOSE SHOWN. The above table and the
assumption in the Hypothetical Example of a 5% annual return are required by
regulation of the SEC applicable to all mutual funds. The 5% annual return
is not a prediction of and does not represent the Fund's projected or actual
performance.

Prospectus Page 4
<PAGE>
AIM DOLLAR FUND

FINANCIAL HIGHLIGHTS

- --------------------------------------------------------------------------------

The table below provides condensed financial information concerning income and
capital changes for one Advisor Class share of the Fund. This information is
supplemented by the financial statements and accompanying notes appearing in the
Statement of Additional Information.

AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)

[TO BE ADDED]

------------------------

The Fund's total return is calculated in accordance with a standardized formula
for computation of annualized total return.

From time to time and in its discretion, AIM may waive all or a portion of its
advisory fees and/or assume certain expenses of the Fund. Such practices will
have the effect of increasing the Fund's total return. The performance of the
Fund will vary from time to time and past results are not necessarily
representative of future results. The Fund's performance is a function of its
portfolio management in selecting the type and quality of portfolio securities
and is affected by operating expenses of the Fund as well as by general market
conditions.

Prospectus Page 5
<PAGE>
AIM DOLLAR FUND

INVESTMENT OBJECTIVE
AND POLICIES

- --------------------------------------------------------------------------------

High quality securities are divided into "first tier" and "second tier"
securities. The Fund will limit its purchases of Municipal Securities to those
which are "First Tier" securities as defined in Rule 2a-7 under the 1940 Act.
Generally, "First Tier" securities are securities that are rated in the highest
rating category for short-term debt obligations by two NRSROs, or, if only rated
by one NRSRO, are rated in the highest rating category by that NRSRO, or, if
unrated, are determined by the Fund's sub-adviser (under the supervision of and
pursuant to guidelines established by the Board of Trustees) to be of comparable
quality to a rated security that meets the foregoing quality standards, as well
as securities issued by a registered investment company that is a money market
fund and U.S. government securities.

The rating criteria of Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), two NRSROs currently rating instruments of
the type the Fund may purchase, are more fully described in "Description of Debt
Ratings" in the Statement of Additional Information.

PERMITTED INVESTMENTS. The Fund may invest in the following types of money
market instruments:

Prospectus Page 6
<PAGE>
AIM DOLLAR FUND

quality, provided that any outstanding intermediate- or long-term debt of
the issuer is rated at least AA by S&P or Aa by Moody's. These instruments
may include corporate bonds and notes (corporate obligations that mature, or
that may be redeemed, in one year or less). These corporate obligations
include variable rate master notes, which are redeemable upon notice and
permit investment of fluctuating amounts at varying rates of interest
pursuant to direct arrangements with the issuer of the instrument.

Prospectus Page 7
<PAGE>
AIM DOLLAR FUND

13 months or less. The yield of these securities varies in relation to changes
in specific money market rates such as the prime rate. These changes are
reflected in adjustments to the yields of the variable and floating rate
securities, and different securities may have different adjustment rates. To the
extent that the Fund invests in such variable and floating rate securities, it
is the Sub-adviser's view that the Fund may be able to take advantage of the
higher yield that is usually paid on longer-term securities. The Sub-adviser
further believes that the variable and floating rates paid on such securities
may substantially reduce the wide fluctuations in market value caused by
interest rate changes and other factors which are typical of longer-term debt
securities.

- --------------------------------------------------------------------------------

MANAGEMENT

- --------------------------------------------------------------------------------

Prospectus Page 8
<PAGE>
AIM DOLLAR FUND

by the Fund, AIM pays the Sub-adviser sub-advisory and sub-administration fees
equal to 40% of the aggregate fees AIM receives from the Fund. The Fund pays all
expenses not assumed by AIM, the Sub-adviser, AIM Distributors or other agents.
AIM has undertaken to limit the Fund's expenses (exclusive of brokerage
commissions, interest, taxes and extraordinary expenses) to the annual rate of
1.00% of the average daily net assets of the Fund's Advisor Class shares.

AIM, 11 Greenway Plaza, Suite 100, Houston, Texas 77046, serves as the
investment manager to the Fund pursuant to a master investment management and
administration agreement, dated as of May 29, 1998 (the "Advisory Agreement").
AIM was organized in 1976 and, together with its subsidiaries, manages or
advises approximately 90 investment company portfolios encompassing a broad
range of investment objectives. The Sub-adviser, 50 California Street, 27th
Floor, San Francisco, California 94111, and 1166 Avenue of the Americas, New
York, New York 10036, serves as the sub-adviser to the Fund pursuant to an
investment sub-advisory and sub-administrative agreement dated as of May 29,
1998. Prior to May 29, 1998, the Sub-adviser was known as Chancellor LGT Asset
Management, Inc. On May 29, 1998, Liechtenstein Global Trust AG ("LGT"), the
former indirect parent organization of the Sub-adviser, consummated a purchase
agreement with AMVESCAP PLC pursuant to which AMVESCAP PLC acquired LGT's Asset
Management Division, which included the Sub-adviser and certain other
affiliates. As a result of this transaction, the Sub-adviser is now an indirect
wholly owned subsidiary of AMVESCAP PLC. Prior to the sale, the Sub-adviser and
its worldwide asset management affiliates provided investment management and/or
administrative services to institutional, corporate and individual clients
around the world since 1969.

DISTRIBUTOR. The Trust has entered into a Master Distribution Agreement, dated
May 29, 1998 (the "Distribution Agreement"), with AIM Distributors, a registered
broker-dealer and a wholly owned subsidiary of AIM, to act as the distributor of
Advisor Class shares of the Fund. Certain Trustees and officers of the Trust are
affiliated with AIM Distributors.

The Distribution Agreement provides AIM Distributors with the exclusive right to
distribute Advisor Class shares of the Fund directly and through institutions
with whom AIM Distributors has entered into selected dealer agreements.

Prospectus Page 9
<PAGE>
AIM DOLLAR FUND

OTHER INFORMATION

- --------------------------------------------------------------------------------

COUNSEL. The law firm of Kirkpatrick & Lockhart LLP, 1800 Massachusetts Avenue,
N.W., Washington, D.C. 20036-1800, acts as counsel to the Trust, to the Fund.

Prospectus Page 10
<PAGE>
AIM INVESTOR'S GUIDE

The toll-free number for access to routine account information and to
shareholder assistance is
(800) 959-4246 (7:30 a.m. to 6:00 p.m. Central Time).

INVESTOR'S GUIDE TO
THE AIM FAMILY OF FUNDS-REGISTERED TRADEMARK-
FOR ADVISOR CLASS SHARES

- --------------------------------------------------------------------------------

INTRODUCTION TO THE AIM FAMILY OF FUNDS

THE AIM FAMILY OF FUNDS consists of approximately 50 mutual funds, several
of which offer Advisor Class shares. Only Advisor Class shares are offered
through this Prospectus. Advisor Class shares are available from the following
funds (collectively, the "Advisor Class Funds"):

<TABLE>
<S> <C>
AIM AMERICA VALUE FUND AIM GLOBAL RESOURCES FUND
AIM DEVELOPING MARKETS FUND AIM GLOBAL TELECOMMUNICATIONS FUND
AIM DOLLAR FUND AIM GLOBAL TRENDS FUND
AIM EMERGING MARKETS FUND AIM INTERNATIONAL GROWTH FUND
AIM EUROPE GROWTH FUND AIM JAPAN GROWTH FUND
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND AIM LATIN AMERICAN GROWTH FUND
AIM GLOBAL FINANCIAL SERVICES FUND AIM MID CAP GROWTH FUND
AIM GLOBAL GOVERNMENT INCOME FUND AIM NEW PACIFIC GROWTH FUND
AIM GLOBAL GROWTH & INCOME FUND AIM SMALL CAP EQUITY FUND
AIM GLOBAL HEALTH CARE FUND AIM STRATEGIC INCOME FUND
AIM GLOBAL HIGH INCOME FUND AIM WORLDWIDE GROWTH FUND
AIM GLOBAL INFRASTRUCTURE FUND
</TABLE>

IT IS IMPORTANT FOR SHAREHOLDERS CONSIDERING AN EXCHANGE TO CAREFULLY REVIEW
THE PROSPECTUS OF THE FUND WHOSE SHARES WILL BE ACQUIRED IN AN EXCHANGE. ADVISOR
CLASS SHARES OF A FUND MAY BE EXCHANGED ONLY FOR ADVISOR CLASS SHARES OF ANOTHER
FUND. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL SHARES OF ANY FUND
OTHER THAN THE FUND(S) NAMED ON THE COVER PAGE OF THIS PROSPECTUS.
- --------------------------------------------------------------------------------

HOW TO PURCHASE SHARES

Shares offered by this Prospectus are available for purchase only by certain
investors and are offered at net asset value without the imposition of a
front-end or contingent deferred sales charge or Rule 12b-1 fees.

HOW TO OPEN AN ACCOUNT. Advisor Class shares are available through
Financial Advisers (as defined herein) who have entered into agreements with
A I M Distributors, Inc. ("AIM Distributors"). In order to purchase Advisor
Class shares of any Advisor Class Fund, the Financial Adviser, on behalf of the
investor, must submit a fully completed new Account Application form directly to
A I M Fund Services, Inc. ("AFS" or the "Transfer Agent"). The Transfer Agent
will not accept new Account Application forms submitted directly by investors.

AFS' mailing address is:

A I M Fund Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

For additional information or assistance, investors should call the Client
Services Department of AFS at:

(800) 959-4246

Advisor Class shares of any Advisor Class Funds not named on the cover of
this Prospectus, as well as Class A, Class B and Class C shares of other funds
distributed by AIM Distributors ("AIM Funds"), are offered

A-1
<PAGE>
AIM INVESTOR'S GUIDE
pursuant to separate prospectuses. Copies of other prospectuses may be obtained
by calling (800) 347-4246.

INITIAL AND SUBSEQUENT PURCHASES BY WIRE: To insure prompt credit to his
account, an investor or his Financial Adviser should call AFS' Client Services
Department at (800) 959-4246 prior to sending a wire to receive a reference
number for the wire. The following wire instructions should be used:

<TABLE>
<S> <C>
Beneficiary Bank ABA/Routing #: 113000609
Beneficiary Account Number: 00100366807
Beneficiary Account Name: A I M Fund Services, Inc.
RFB: Fund name, Reference Number (16 character limit)
Shareholder Name, Shareholder Account Number
OBI: (70 character limit)
</TABLE>

It is recommended that investors in wrap fee accounts and advisory accounts
place orders through their Financial Advisers.

HOW TO PURCHASE ADDITIONAL SHARES. Additional Advisor Class shares may be
purchased directly through AIM Distributors or through any Financial Adviser who
has entered into an agreement with AIM Distributors. The minimum investment for
additional purchases of Advisor Class shares is $50.

BY MAIL: Investors must indicate their account number and the name of the
Fund being purchased. The remittance slip from a confirmation statement should
be used for this purpose, and sent to AFS.

BY AIM BANK CONNECTION(SM): To purchase additional Advisor Class shares by
electronic funds transfer, please contact the Client Services Department of AFS
for details.
- --------------------------------------------------------------------------------

TERMS AND CONDITIONS OF PURCHASE OF THE AIM FUNDS

In addition to the Advisor Class Funds, the AIM Funds consist of the
following funds: AIM ADVISOR FLEX FUND, AIM ADVISOR INTERNATIONAL VALUE FUND,
AIM ADVISOR LARGE CAP VALUE FUND, AIM ADVISOR MULTIFLEX FUND, AIM ADVISOR REAL
ESTATE FUND, AIM AGGRESSIVE GROWTH FUND, AIM ASIAN GROWTH FUND, AIM BALANCED
FUND, AIM BLUE CHIP FUND, AIM CAPITAL DEVELOPMENT FUND, AIM CHARTER FUND, AIM
CONSTELLATION FUND, AIM EUROPEAN DEVELOPMENT FUND, AIM GLOBAL AGGRESSIVE GROWTH
FUND, AIM GLOBAL GROWTH FUND, AIM GLOBAL INCOME FUND, AIM GLOBAL UTILITIES FUND,
AIM HIGH INCOME MUNICIPAL FUND, AIM HIGH YIELD FUND, AIM INCOME FUND, AIM
INTERMEDIATE GOVERNMENT FUND, AIM INTERNATIONAL EQUITY FUND, AIM LIMITED
MATURITY TREASURY FUND, AIM MONEY MARKET FUND, AIM MUNICIPAL BOND FUND, AIM
SELECT GROWTH FUND, AIM SMALL CAP OPPORTUNITIES FUND, AIM TAX-EXEMPT BOND FUND
OF CONNECTICUT, AIM TAX-EXEMPT CASH FUND, AIM TAX-FREE INTERMEDIATE FUND, AIM
VALUE FUND and AIM WEINGARTEN FUND, collectively (other than AIM AGGRESSIVE
GROWTH FUND, AIM LIMITED MATURITY TREASURY FUND, AIM TAX-EXEMPT BOND FUND OF
CONNECTICUT, AIM TAX-EXEMPT CASH FUND and AIM TAX-FREE INTERMEDIATE FUND), with
the Advisor Class Funds, the "Multiple Class Funds." For information on
purchasing any of the AIM Funds and to receive a prospectus, please call (800)
347-4246. Net asset value is determined in the manner described under the
caption "Determination of Net Asset Value."

Advisor Class shares are offered through this Prospectus to (a) trustees or
other fiduciaries purchasing shares for employee benefit plans that are
sponsored by organizations that have at least 1,000 employees; (b) any account
with assets of at least $10,000 if (i) a financial planner, trust company, bank
trust department or registered investment adviser has investment discretion over
the account and (ii) the account holder pays such person as compensation for its
advice and other services an annual fee of at least .50% of the assets in the
account; (c) any account with assets of at least $10,000 if (i) the account is
established under a "wrap fee" program and (ii) the account holder pays the
sponsor of such program an annual fee of at least .50% of the assets in the
account; (d) accounts advised by INVESCO (NY), Inc. or one of the companies
formerly affiliated with Liechtenstein Global Trust AG, provided such accounts
were invested in Advisor Class shares on May 29, 1998; (e) any of the companies
affiliated with AMVESCAP PLC; and (f) AIM GLOBAL TRENDS FUND (certain Advisor
Class Funds only).

Financial planners, trust companies, bank trust departments and registered
investment advisers referenced in clause (b) above, and sponsors of "wrap fee"
programs referenced in clause (c) above are collectively referred to as
"Financial Advisers." Financial Advisers and other fiduciaries may be required
to provide information satisfactory to AIM Distributors concerning their
eligibility to purchase Advisor Class shares.

A-2
<PAGE>
AIM INVESTOR'S GUIDE

Investors in wrap fee programs and advisory accounts may only purchase Advisor
Class shares through Financial Advisers who have entered into agreements with
AIM Distributors. Investors may be charged a fee by their agents or brokers for
effecting transactions in Advisor Class shares.

AIM Distributors may, from time to time, pay a bonus or other consideration
or incentive to dealers who sell a minimum dollar amount of the shares of the
AIM Funds during a specified period of time. In some instances, these incentives
may be offered only to certain dealers who have sold or may sell significant
amounts of shares. At the option of the dealer, such incentives may take the
form of payment for travel expenses, including lodging, incurred in connection
with trips taken by qualifying registered representatives and their families to
places within or outside the United States. The total amount of such additional
bonus payments or other consideration shall not exceed 0.25% of the public
offering price of the shares sold. Any such bonus or incentive programs will not
change the price paid by investors for the purchase of the applicable AIM Fund's
shares or the amount that any particular AIM Fund will receive as proceeds from
such sales. Dealers may not use sales of the AIM Funds' shares to qualify for
any incentives to the extent that such incentives may be prohibited by the laws
of any state.

TIMING OF PURCHASE ORDERS. Orders for the purchase of Advisor Class shares
received prior to the close of regular trading on the New York Stock Exchange
("NYSE"), which is generally 4:00 p.m. Eastern Time (and which is hereinafter
referred to as "NYSE Close"), on any business day of an AIM Fund will be
confirmed at the price next determined. Orders received after NYSE Close will be
confirmed at the price determined on the next business day of the AIM Fund.
Certain financial institutions (or their designees) may be authorized to accept
purchase orders on behalf of the AIM Funds. Orders received by authorized
institutions (or their designees) before NYSE Close will be deemed to have been
received by an AIM Fund on such day and will be effected that day, provided that
such orders are transmitted to the Transfer Agent prior to the time set for
receipt of such orders. It is the responsibility of the dealer/financial
institution to ensure that all orders are transmitted on a timely basis to the
Transfer Agent. Any loss resulting from the dealer/financial institution's
failure to submit an order within the prescribed time frame will be borne by
that dealer/financial institution. Please see "How to Purchase Shares -- Initial
and Subsequent Purchases by Wire" for information on obtaining a reference
number for wire orders, which will facilitate the handling of such orders and
ensure prompt credit to an investor's account. A "business day" of an AIM Fund
is any day on which the NYSE is open for business. It is expected that the NYSE
will be closed during the next twelve months on Saturdays and Sundays and on the
days on which New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day are observed by the NYSE.

SPECIAL INFORMATION RELATING TO AIM DOLLAR FUND. Because AIM DOLLAR FUND
uses the amortized cost method of valuing the securities it holds and rounds its
per share net asset value to the nearest whole cent, it is anticipated that the
net asset value of the shares of that fund will remain constant at $1.00 per
share. However, there is no assurance that AIM DOLLAR FUND can maintain a $1.00
net asset value per share. AIM DOLLAR FUND generally will not issue share
certificates but will record investor holdings in noncertificate form and
regularly advise the shareholder of his ownership position.

A-3
<PAGE>
AIM INVESTOR'S GUIDE

redemptions or exchanges, the fund has the right to redeem the account, after
giving the shareholder 60 days' prior written notice, unless the shareholder
makes additional investments within the notice period to bring the account value
up to $500. If a fund determines that a shareholder has provided incorrect
information in opening an account with a fund or in the course of conducting
subsequent transactions with the fund related to such account, the fund may, in
its discretion, redeem the account and distribute the proceeds of such
redemption to the shareholder.

[SPECIAL PLANS

Except as noted below, each Advisor Class Fund provides the special plans
described below for the convenience of its Advisor Class shareholders. Once
established, there is no obligation to continue to invest through a plan, and a
shareholder may terminate a plan at any time.

AUTOMATIC DIVIDEND INVESTMENT PLAN. Advisor Class shareholders may elect to
have all dividends and distributions declared by an Advisor Class Fund paid in
cash or invested at net asset value either in Advisor Class shares of the same
Advisor Class Fund or invested in shares of another Advisor Class Fund. See
"Dividends, Distributions and Tax Matters -- Dividends and Distributions" for a
description of payment dates for these options. In order to qualify to have
dividends and distributions of one Advisor Class Fund invested in shares of
another Advisor Class Fund, the following conditions must be satisfied: (a) the
shareholder must have an account balance in the dividend paying fund of at least
$5,000; (b) the account must be held in the name of the shareholder (i.e., the
account may not be held in nominee name); and (c) the shareholder must have
requested and completed an authorization relating to the reinvestment of
dividends into another Advisor Class Fund. An authorization may be given on the
account application or on an authorization form available from AIM Distributors.
An Advisor Class Fund will waive the $5,000 minimum account value requirement if
the shareholder has an account in the fund selected to receive the dividends and
distributions with a value of at least $500.

PORTFOLIO REBALANCING PROGRAM. The Portfolio Rebalancing Program
("Program") permits eligible shareholders to establish and maintain an
allocation across a range of Advisor Class Funds. The Program automatically
rebalances holdings of Advisor Class Funds to the established allocation on a
periodic basis. Under the Program, a shareholder may predesignate, on a
percentage basis, how the total value of his or her holdings in a minimum of
two, and a maximum of ten, Advisor Class Funds ("Personal Portfolio") is to be
rebalanced on a quarterly, semiannual, or annual basis.

Rebalancing under the Program will be effected through the exchange of
shares of one or more Advisor Class Funds in the shareholder's Personal
Portfolio for shares of the same class(es) of one or more other Advisor Class
Funds in the shareholder's Personal Portfolio. See "Exchange Privilege." If
shares of the Advisor Class Fund(s) in a shareholder's Personal Portfolio have
appreciated during a rebalancing period, the Program will result in shares of
Advisor Class Fund(s) that have appreciated most during the period being
exchanged for shares of Advisor Class Fund(s) that have appreciated least. SUCH
EXCHANGES ARE NOT TAX-FREE AND MAY RESULT IN A SHAREHOLDER'S REALIZING A GAIN OR
LOSS, AS THE CASE MAY BE, FOR FEDERAL INCOME TAX PURPOSES. See "Dividends,
Distributions and Tax Matters -- Dividends and Distributions." Participation in

A-4
<PAGE>
AIM INVESTOR'S GUIDE
the Program does not assure that a shareholder will profit from purchases under
the Program nor does it prevent or lessen losses in a declining market.

The Program will automatically rebalance the shareholder's Personal
Portfolio on the 28th day of the last month of the period chosen (or the
immediately preceding business day if the 28th is not a business day), subject
to any limitations below. The Program will not execute an exchange if the
variance in a shareholder's Personal Portfolio for a particular Advisor Class
Fund would be 2% or less. In predesignating percentages, shareholders must use
whole percentages and totals must equal 100%. Shareholders participating in the
Program may not request issuance of physical certificates representing an
Advisor Class Fund's shares. The AIM Funds and AIM Distributors reserve the
right to modify, suspend, or terminate the Program at any time on 60 days' prior
written notice to shareholders. A request to participate in the Program must be
received in good order at least five business days prior to the next rebalancing
date. Once a shareholder establishes the Program for his or her Personal
Portfolio, a shareholder cannot cancel or change which rebalancing frequency,
which Advisor Class Funds or what allocation percentages are assigned to the
Program, unless canceled or changed in writing and received by the Transfer
Agent in good order at least five business days prior to the rebalancing date.
Certain dealers/financial institutions may charge a fee for establishing
accounts relating to the Program. Investors should contact their
dealers/financial institutions or AIM Distributors for more information.]

- --------------------------------------------------------------------------------
EXCHANGE PRIVILEGE

TERMS AND CONDITIONS OF EXCHANGES. Advisor Class shareholders of the
Advisor Class Funds may participate in an exchange privilege as described below.
AIM Distributors acts as distributor for the Advisor Class Funds which represent
a range of different investment objectives and policies.

Advisor Class shares of any Advisor Class Fund may be exchanged only for
Advisor Class shares of any other Advisor Class Fund.

Investors in wrap fee programs and advisory accounts interested in making an
exchange should contact their Financial Advisers to request the prospectus of an
Advisor Class Fund being considered. Other investors should contact AIM
Distributors for the appropriate prospectus.

An exchange is permitted only in the following circumstances: (a) the dollar
amount of the exchange must be at least equal to the minimum investment
applicable to the shares of the Advisor Class Fund acquired through such
exchange; (b) the shares of the Advisor Class Fund acquired through exchange
must be qualified for sale in the state in which the shareholder resides; (c)
the exchange must be made between accounts having identical registrations and
addresses; (d) the full amount of the purchase price for the shares being
exchanged must have already been received by the fund; (e) the account from
which shares have been exchanged must be coded as having a certified taxpayer
identification number on file or, in the alternative, an appropriate IRS Form
W-8 (certificate of foreign status) or Form W-9 (certifying exempt status) must
have been received by the fund; (f) newly acquired shares (through either an
initial or subsequent investment) are held in an account for at least ten
business days, and all other shares are held in an account for at least one day,
prior to the exchange; and (g) certificates representing shares must be returned
before shares can be exchanged. There is no fee for exchanges among the Advisor
Class Funds.

THE CURRENT PROSPECTUS OF EACH OF THE ADVISOR CLASS FUNDS AND CURRENT
INFORMATION CONCERNING THE OPERATION OF THE EXCHANGE PRIVILEGE ARE AVAILABLE
THROUGH AIM DISTRIBUTORS OR THROUGH ANY DEALER WHO HAS EXECUTED AN APPLICABLE
AGREEMENT WITH AIM DISTRIBUTORS. BEFORE EXCHANGING SHARES, INVESTORS SHOULD
REVIEW THE PROSPECTUSES OF THE FUNDS WHOSE SHARES WILL BE ACQUIRED THROUGH
EXCHANGE. EXCHANGES OF SHARES ARE CONSIDERED TO BE SALES FOR FEDERAL AND STATE
INCOME TAX PURPOSES AND MAY RESULT IN A TAXABLE GAIN OR LOSS TO A SHAREHOLDER.

Shares of any Advisor Class Fund to be exchanged are redeemed at their net
asset value as determined at NYSE Close on the day that an exchange request in
proper form (described below) is received. Exchange requests received after NYSE
Close will result in the redemption of shares at their net asset value at NYSE
Close on the next business day. Normally, Advisor Class shares of an Advisor
Class Fund to be acquired by exchange are purchased at their net asset value
determined on the date that such request is received, but

A-5
<PAGE>
AIM INVESTOR'S GUIDE

under unusual market conditions such purchases may be delayed for up to five
business days if it is determined that an Advisor Class Fund would be materially
disadvantaged by an immediate transfer of the proceeds of the exchange. If a
shareholder is exchanging into an Advisor Class Fund that declares daily
dividends ("Dividends, Distributions and Tax Matters -- Dividends and
Distributions," below), and the release of the exchange proceeds is delayed for
the foregoing five-day period, such shareholder will not begin to accrue
dividends until the sixth business day after the exchange. Advisor Class shares
purchased by check may not be exchanged until it is determined that the check
has cleared, which may take up to ten business days from the date that the check
is received. See "Terms and Conditions of Purchase of the AIM Funds -- Timing of
Purchase Orders."

EXCHANGES BY MAIL. Investors exchanging their Advisor Class shares by mail
should send a written request to AFS. The request should contain the account
registration and account number, the dollar amount or number of Advisor Class
shares to be exchanged, and the names of the Advisor Class Funds from which and
into which the exchange is to be made. The request should comply with all of the
requirements for redemption by mail. See "How to Redeem Shares."

EXCHANGES BY TELEPHONE. Shareholders or their agents may request an
exchange by telephone. A shareholder may give exchange information to his
Financial Adviser. If a shareholder does not wish to allow telephone exchanges
by any person in his account, he should decline that option on the account
application. AIM Distributors has made arrangements with certain dealers and
investment advisory firms to accept telephone instructions to exchange shares
between any of the Advisor Class Funds. AIM Distributors reserves the right to
impose conditions on dealers or investment advisors who make telephone exchanges
of shares of the Advisor Class Funds, including the condition that any such
dealer or investment advisor enter into an agreement (which contains additional
conditions with respect to exchanges of shares) with AIM Distributors. To
exchange shares by telephone, a Financial Adviser, shareholder or dealer who has
satisfied the foregoing conditions must call AFS at (800) 959-4246. If a
Financial Adviser, shareholder or dealer is unable to reach AFS by telephone, he
may also request exchanges by telegraph or use overnight courier services to
expedite exchanges by mail, which will be effective on the business day received
by the Transfer Agent as long as such request is received prior to NYSE Close.
The Transfer Agent and AIM Distributors will not be liable for any loss, expense
or cost arising out of any telephone exchange request that they reasonably
believe to be genuine, but may in certain cases be liable for losses due to
unauthorized or fraudulent transactions if they do not follow reasonable
procedures for verification of telephone transactions. Such reasonable
procedures may include recordings of telephone transactions (maintained for six
months), requests for confirmation of the shareholder's Social Security Number
and current address, and mailings of confirmations promptly after the
transaction.

- --------------------------------------------------------------------------------
HOW TO REDEEM SHARES

Shares of the AIM Funds may be redeemed directly through AIM Distributors or
through any dealer/ financial institution who has entered into an agreement with
AIM Distributors. In addition to the obligation of the fund(s) named on the
cover page to redeem shares, AIM Distributors also repurchases shares. No
redemption fee is imposed when Advisor Class shares are redeemed or repurchased;
however, dealers/ financial institutions may charge service fees for handling
repurchase transactions.

Requests for redemption must include: (a) original signatures of each
registered owner exactly as the shares are registered; (b) the fund and the
account number of shares to be redeemed; (c) share certificates, either properly
endorsed or accompanied by a duly executed stock power, for the shares to be
redeemed if such certificates have been issued and the shares are not in the
custody of the Transfer Agent; (d) signature guarantees, as described below; and
(e) any additional documents that may be required for redemption by

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AIM INVESTOR'S GUIDE

corporations, partnership, trusts or other entities. The burden is on the
shareholder to inquire as to whether any additional documentation is required.
Any request not in proper form may be rejected and in such case must be renewed
in writing.

REDEMPTIONS BY TELEPHONE. Shareholders may request a redemption by
telephone. If a shareholder does not wish to allow telephone redemptions by any
person in his account, he should decline that option on the account application.
The telephone redemption feature can be used only if: (a) the redemption
proceeds are to be mailed to the address of record or transferred electronically
or wired to the pre-authorized bank account; (b) there has been no change of
address of record on the account within the preceding 30 days; (c) the shares to
be redeemed are not in certificate form; (d) the person requesting the
redemption can provide proper identification information, and (e) the proceeds
of the redemption do not exceed $50,000. AIM Distributors has made arrangements
with certain dealers and investment advisors to accept telephone instructions
for the redemption of shares. AIM Distributors reserves the right to impose
conditions on these dealers and investment advisors, including the condition
that they enter into agreements (which contain additional conditions with
respect to the redemption of shares) with AIM Distributors. The Transfer Agent
and AIM Distributors will not be liable for any loss, expense or cost arising
out of any telephone redemption request effected in accordance with the
authorization set forth in the appropriate form if they reasonably believe such
request to be genuine, but may in certain cases be liable for losses due to
unauthorized or fraudulent transactions if they do not follow reasonable
procedures for verification of telephone transactions. Such reasonable
procedures may include recordings of telephone transactions (maintained for six
months), requests for confirmation of the shareholder's taxpayer identification
number and current address, and mailings of confirmations promptly after the
transaction.

TIMING AND PRICING OF REDEMPTION ORDERS. Advisor Class shares of the
Advisor Class Funds are redeemed at their net asset value next computed after a
request for redemption in proper form (including signature guarantees and other
required documentation for written redemptions) is received by the Transfer
Agent or certain financial institutions (or their designees) who are authorized
to accept redemption orders on behalf of the AIM Funds, provided that such
orders are transmitted to the Transfer Agent prior to the time set for receipt
of such orders. Orders for the redemption of Advisor Class shares received on
any business day of an AIM Fund will be confirmed at the price determined as of
the close of that day. Orders received after NYSE Close will be confirmed at the
price determined on the next business day of an AIM Fund. It is the
responsibility of the dealer/financial institution to ensure that all orders are
transmitted on a timely basis. Any resulting loss from the dealer/financial
institution's failure to submit a request for redemption within the prescribed
time frame will be borne by that dealer/financial institution. Telephone
redemption requests must be made by NYSE Close on any business day of an AIM
Fund and will be confirmed at the price determined as of the close of that day.
No AIM Fund will accept requests which specify a particular date for redemption
or which specify any special conditions.

SIGNATURE GUARANTEES. A signature guarantee is designed to protect the
investor, the AIM Funds, AIM Distributors, and their agents by verifying the
signature of each investor seeking to redeem, transfer, or exchange shares of an
AIM Fund. Examples of when signature guarantees are required are: (1)
redemptions by mail in excess of $50,000; (2) redemptions by mail if the
proceeds are to be paid to someone other than the name(s) in which the account
is registered; (3) written redemptions requesting proceeds to be sent to other
than the bank of record for the account; (4) redemptions requesting proceeds to
be sent to a new address or an address that has been changed within the past 30
days; (5) requests to transfer the registration of shares to another owner, (6)
telephone exchange and telephone redemption authorization forms; (7) changes in
previously designated wiring or electronic funds transfer instructions, and (8)
written redemptions or exchanges of shares previously reported as lost, whether
or not the redemption amount is under $50,000 or the

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AIM INVESTOR'S GUIDE
proceeds are to be sent to the address of record. These requirements may be
waived or modified upon notice to shareholders.

DETERMINATION OF NET ASSET VALUE

The net asset value per share (or share price) of each Advisor Class Fund is
determined as of 4:00 p.m. Eastern Time on each "business day" of a fund as
previously defined. In the event the NYSE closes early (i.e. before 4:00 p.m.
Eastern Time) on a particular day, the net asset value of an Advisor Class
Fund's share will be determined as of the close of the NYSE on such day. For
purposes of defining net asset value per share, futures and options contracts
generally will be valued 15 minutes after the close of trading of the NYSE. The
net asset value per share is calculated by subtracting a class' liabilities from
its assets and dividing the result by the total number of class shares
outstanding. The determination of net asset value per share is made in
accordance with generally accepted accounting principles. Among other items,
liabilities include accrued expenses and dividends payable, and total assets
include portfolio securities valued at their market value, as well as income
accrued but not yet received. Securities for which market quotations are not
readily available are valued at fair value as determined in good faith by or
under the supervision of the fund's officers and in accordance with methods
which are specifically authorized by its governing Board of Directors or
Trustees. Short-term obligations with maturities of 60 days or less, and the
securities held by the AIM DOLLAR FUND, are valued at amortized cost as
reflecting fair value.

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AIM INVESTOR'S GUIDE

DIVIDENDS, DISTRIBUTIONS AND TAX MATTERS

DIVIDENDS AND DISTRIBUTIONS

Each Advisor Class Fund's policy regarding the payment of dividends and
distributions is set forth below.

In determining the amount of capital gains, if any, available for
distribution, net capital gains are offset against available net capital losses,
if any, carried forward from previous fiscal periods. Each Advisor Class Fund
may make additional distributions, if necessary, to avoid a non-deductible 4%
federal excise tax on certain undistributed income and capital gain (the "Excise
Tax").

All dividends and distributions of an AIM Fund are automatically reinvested
on the payment date in full and fractional shares of such fund, unless the
shareholder has made an alternate election as to the method of payment.
Dividends and distributions attributable to Advisor Class shares of an Advisor
Class Fund are reinvested in additional Advisor Class shares of that fund,
absent an election by a shareholder to receive cash or to have such dividends
and distributions reinvested in Advisor Class shares of another Advisor Class
Fund, to the extent permitted. For funds that do not declare a dividend daily,
such dividends and distributions will be reinvested at the net asset value per
share determined on the ex-dividend date. For funds that declare a dividend
daily, such dividends and distributions will be reinvested at the net asset
value per share determined on the payable date. Shareholders may elect, by
written notice to the Transfer Agent, to receive such distributions, or only the
dividend portion thereof, in cash, or to invest such dividends and distributions
in Advisor Class shares of another Advisor Class Fund. Investors who have not
previously selected such a reinvestment option on the account application form
may contact the Transfer Agent at any time to obtain a form to authorize such
reinvestments in another Advisor Class Fund.

Dividends on Advisor Class shares of an Advisor Class Fund are expected to
be higher than dividends on shares of other classes of that fund because of the
service and distribution fees paid by those other classes of shares. Dividends
on all shares may also be affected by other class-specific expenses.

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AIM INVESTOR'S GUIDE

TAX MATTERS

TAX TREATMENT OF DIVIDENDS AND DISTRIBUTIONS -- GENERAL. Because each AIM
Fund intends to distribute to its shareholders substantially all of its net
investment income, net realized capital gains and net gains from foreign
currency transactions, if any, it is not expected that any such fund will be
required to pay any federal income tax. Each AIM Fund also intends to meet the
distribution requirements of the Code to avoid imposition of the Excise Tax.
Nevertheless, shareholders normally are subject to federal income tax, and any
applicable state and local income taxes, on the dividends and distributions
received by them from a fund whether in the form of cash or additional fund
shares. With respect to tax-exempt shareholders, dividends and distributions
from the AIM Funds are not subject to federal income taxation to the extent
permitted under the applicable tax exemption.

Dividends from an AIM Fund's net investment income, net short-term capital
gain and net gains from certain foreign currency transactions are taxable to its
shareholders as ordinary income to the extent of its earnings and profits.
Distributions of net capital gain (i.e., the excess of net long-term capital
gain over net short-term capital loss) are taxable as long-term capital gains,
regardless of the length of time the shareholder held his shares. Under the
Taxpayer Relief Act of 1997, different maximum tax rates apply to a non-
corporate taxpayer's net capital gain depending on the taxpayer's holding period
and marginal rate of federal income tax -- generally, 28% for gain recognized on
capital assets held for more than one year but not more than 18 months and 20%
(10% for taxpayers in the 15% marginal tax bracket) for gain recognized on
capital assets held for more than 18 months. An AIM Fund may divide each net
capital gain distribution into a 28% rate gain distribution and a 20% rate gain
distribution (in accordance with its holding periods for the securities it sold
that generated the distributed gain), in which event its shareholders must treat
those portions accordingly; thus, the relevant holding period is determined by
how long the fund has held the securities on which the gain was realized, not by
how long a shareholder has held fund shares.

For each redemption of a fund's shares by a non-exempt shareholder, the fund
or the securities dealer effecting the transaction is required to file an
information return with the IRS.

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AIM INVESTOR'S GUIDE

AIM AMERICA VALUE FUND, AIM DOLLAR FUND, AIM GLOBAL GOVERNMENT INCOME FUND,
AIM GLOBAL GROWTH & INCOME FUND, AIM GLOBAL HIGH INCOME FUND, AIM MID CAP GROWTH
FUND, AIM SMALL CAP EQUITY FUND AND AIM STRATEGIC INCOME FUND -- SPECIAL TAX
INFORMATION. Certain states exempt from income taxes dividends paid by mutual
funds attributable to interest on U.S. Treasury and certain other U.S.
government obligations. Investors should consult with their own tax advisors
concerning the availability of such exemption.

AIM DEVELOPING MARKETS FUND, AIM EMERGING MARKETS FUND, AIM EUROPE GROWTH
FUND, AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND, AIM GLOBAL FINANCIAL
SERVICES FUND, AIM GLOBAL GROWTH & INCOME FUND, AIM GLOBAL HEALTH CARE FUND, AIM
GLOBAL INFRASTRUCTURE FUND, AIM GLOBAL RESOURCES FUND, AIM GLOBAL
TELECOMMUNICATIONS FUND, AIM INTERNATIONAL GROWTH FUND, AIM JAPAN GROWTH FUND,
AIM LATIN AMERICAN GROWTH FUND, AIM NEW PACIFIC GROWTH FUND AND AIM WORLDWIDE
GROWTH FUND -- SPECIAL TAX INFORMATION. For taxable years in which it is
eligible to do so, each of these funds may elect to pass through to its
shareholders credits for foreign taxes paid. If a fund makes such an election, a
shareholder who receives a distribution (1) will be required to include in gross
income his proportionate share of foreign taxes allocable to the distribution
and (2) may claim a credit or deduction for such share for his taxable year in
which the distribution is received, subject to the general limitations imposed
on the allowance of foreign tax credits and deductions. Shareholders should also
note that certain gains or losses attributable to fluctuations in exchange rates
or foreign currency forward contracts may increase or decrease the amount of
income of the fund available for distribution to shareholders and should note
that if, for any fund, such losses exceed other income during a taxable year,
the fund would not be able to pay ordinary income dividends for that year.

GENERAL INFORMATION

CUSTODIAN AND TRANSFER AGENT. State Street Bank and Trust Company, 225
Franklin Street, Boston, Massachusetts 02110, serves as custodian for the
portfolio securities and cash of the Advisor Class Funds. Chase Bank of Texas,
N.A., P.O. Box 2558, Houston, Texas 77252-8084, serves as Sub-Custodian for
retail purchases of the AIM Funds.

A I M Fund Services, Inc., P.O. Box 4739, Houston, Texas 77210-4739, a
wholly-owned subsidiary of AIM, serves as each Advisor Class Fund's transfer
agent and dividend payment agent.

To address this issue, AIM Management and its subsidiaries, together with
independent technology consultants, are undertaking a comprehensive Year 2000
Compliance Project (the "Project"). The Project consists of three phases, namely
(i) inventorying every software application in use at AIM Management and its
subsidiaries, as well as remote, third party software systems on which AIM
Management and its subsidiaries rely, (ii) identifying those applications that
may not function properly after December 31, 1999, and (iii) correcting and
subsequently testing those applications that may not function properly after
December 31, 1999. Phases (i) and (ii) are complete and Phase (iii) has
commenced. The Project is scheduled to be completed during the fourth quarter of
1998. Software applications acquired by AIM Management and its subsidiaries
after completion of the Project will be reviewed to confirm Year 2000 compliance
upon installation.

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AIM INVESTOR'S GUIDE
several members of a household own shares of the same fund, only one annual or
semi-annual report will be mailed to that address. To receive additional copies,
please call (800) 347-4246, or write to A I M Distributors, Inc., P.O. Box 4739,
Houston, Texas 77210-4739. A Statement of Additional Information has been filed
with the SEC and is available upon request and without charge, by writing or
calling AIM Distributors. The SEC maintains a Web site at http://www.sec.gov
that contains the Statement of Additional Information, material incorporated by
reference, and other information regarding the Fund. This Prospectus omits
certain information contained in the registration statement filed with the SEC.
Copies of the registration statement, including items omitted from this
Prospectus, may be obtained from the SEC by paying the charges prescribed under
its rules and regulations.

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AIM DOLLAR FUND

[LOGO]

INVESTMENT MANAGER
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173

SUB-ADVISER
INVESCO (NY), Inc.
50 California Street, 27th Floor
San Francisco, CA 94111

PRINCIPAL UNDERWRITER
A I M Distributors, Inc.
P.O. Box 4739
Houston, TX 77210-4739

TRANSFER AGENT
A I M Fund Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110

INDEPENDENT ACCOUNTANTS

[ ]
[ ]
[ ]

STATEMENT OF ADDITIONAL INFORMATION

CLASS A AND CLASS B SHARES OF
AIM DOLLAR FUND

(Series Portfolio of AIM Investment Portfolios)

11 Greenway Plaza
Suite 100
Houston, TX 77046-1173 (713) 626-1919

THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND
IT SHOULD BE READ IN CONJUNCTION WITH A PROSPECTUS OF THE
ABOVE-NAMED FUND, A COPY OF WHICH MAY BE OBTAINED FREE
OF CHARGE FROM AUTHORIZED DEALERS OR BY WRITING
A I M DISTRIBUTORS, INC.,
P.O. BOX 4739, HOUSTON TX 77210-4739
OR BY CALLING (800) 347-4246.

STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 8, 1998
RELATING TO THE AIM DOLLAR FUND PROSPECTUS DATED SEPTEMBER 8, 1998

[LOGO]

Statement of Additional Information Page 1
<PAGE>
AIM DOLLAR FUND

TABLE OF CONTENTS

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Introduction............................................................................................................. 3
Investment Objective and Policies........................................................................................ 4
Investment Limitations................................................................................................... 6
Trustees and Executive Officers.......................................................................................... 8
Control Persons and Principal Holders of Securities...................................................................... 10
Management............................................................................................................... 11
Dividends and Taxes...................................................................................................... 15
How to Purchase and Redeem Shares........................................................................................ 16
Valuation of Fund Shares................................................................................................. 19
Execution of Portfolio Transactions...................................................................................... 20
Additional Information................................................................................................... 21
Investment Results....................................................................................................... 22
Description of Debt Ratings.............................................................................................. 27
Financial Statements..................................................................................................... 28
</TABLE>

Statement of Additional Information Page 2
<PAGE>
AIM DOLLAR FUND

INTRODUCTION

- --------------------------------------------------------------------------------

This Statement of Additional Information relates to the Class A and Class B
shares of AIM Dollar Fund (the "Fund"). The Fund is a diversified series of AIM
Investment Portfolios (the "Trust"), a registered open-end management investment
company organized as a Delaware business trust.

A I M Advisors, Inc. ("AIM") serves as the investment manager of and
administrator for, and INVESCO (NY), Inc. (the "Sub-adviser") serves as the
investment sub-adviser of and sub-administrator for the Fund.

The Trust is a series mutual fund. The rules and regulations of the United
States Securities and Exchange Commission (the "SEC") require all mutual funds
to furnish prospective investors certain information concerning the activities
of the fund being considered for investment. This information for the Fund is
included in a Prospectus dated September 8, 1998. Additional copies of the
Prospectus and this Statement of Additional Information may be obtained without
charge by writing the principal distributor of the Fund's shares, A I M
Distributors, Inc. ("AIM Distributors"), P.O. Box 4739, Houston, TX 77210-4739
or by calling (800) 347-4246. Investors must receive a Prospectus before they
invest.

This Statement of Additional Information is intended to furnish prospective
investors with additional information concerning the Fund. Some of the
information required to be in this Statement of Additional Information is also
included in the Prospectus; and, in order to avoid repetition, reference will be
made to sections of the Prospectus. Additionally, the Prospectus and this
Statement of Additional Information omit certain information contained in the
Registration Statement filed with the SEC. Copies of the Registration Statement,
including items omitted from the Prospectus and this Statement of Additional
Information, may be obtained from the SEC by paying the charges prescribed under
its rules and regulations.

GENERAL INFORMATION ABOUT THE FUNDS

THE TRUST AND ITS SHARES

The Trust previously operated under the name AIM Investment Portfolios, Inc.,
which was organized as a Maryland corporation in 1981. The Trust was reorganized
on September 4, 1998 as a Delaware business trust, and is registered with the
SEC as a diversified open-end series management investment company. The Trust
currently consists of a single portfolio, the AIM Dollar Fund. The Fund has
three separate classes: Class A, Class B and Advisor Class shares. All
historical financial and other information contained in this Statement of
Additional Information for periods prior to September 4, 1998, is that of the
series of GT Global Dollar Fund (renamed AIM Dollar Fund).

This Statement of Additional Information relates solely to the Class A and B
shares of the Fund.

The term "majority of the outstanding shares" of the Trust, of the Fund or of a
particular class of the Fund means, respectively, the vote of the lesser of (a)
67% or more of the shares of the Trust, the Fund or such class present at a
meeting of the Trust's shareholders, if the holders of more than 50% of the
outstanding shares of the Trust, the Fund or such class are present or
represented by proxy, or (b) more than 50% of the outstanding shares of the
Trust, the Fund or such class.

Class A, Class B and Advisor Class shares of the Fund have equal rights and
privileges. Each share of a particular class is entitled to one vote, to
participate equally in dividends and distributions declared by the Trust's Board
of Trustees with respect to the class of the Fund and, upon liquidation of the
Fund, to participate proportionately in the net assets of the Fund allocable to
such class remaining after satisfaction of outstanding liabilities of the Fund
allocable to such class. Fund shares are fully paid, non-assessable and fully
transferable when issued and have no preemptive rights and have such conversion
and exchange rights as set forth in the Prospectus and this Statement of
Additional Information. Fractional shares have proportionately the same rights,
including voting rights, as are provided for a full share.

Shareholders of the Fund do not have cumulative voting rights, and therefore the
holders of more than 50% of the outstanding shares of the Fund voting together
for election of trustees may elect all of the members of the Board of Trustees
of the Trust. In such event, the remaining holders cannot elect any trustees of
the Trust.

Statement of Additional Information Page 3
<PAGE>
AIM DOLLAR FUND

INVESTMENT OBJECTIVE
AND POLICIES

- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE
The investment objective of the Fund is maximum current income consistent with
liquidity and conservation of capital. The Fund seeks its objective by investing
in high quality, U.S. dollar-denominated money market instruments.

CHANGES IN A SECURITY'S RATING

Subsequent to the purchase of a security by the Fund, the security may cease to
be rated or its rating may be reduced below the minimum rating required for its
purchase, as described in the Prospectus. In such event the Fund, the Trust's
Board of Trustees (the "Board") and the Sub-adviser will review the situation
and take appropriate action in accordance with procedures adopted by the Board
pursuant to Rule 2a-7 under the Investment Company Act of 1940, as amended (the
"1940 Act").

VARIABLE AND FLOATING RATE OBLIGATIONS
Floating and variable rate demand notes and bonds are obligations ordinarily
having stated maturities in excess of 13 months, but which permit the holder to
demand payment of principal at any time, or at specified intervals not exceeding
13 months, in each case upon not more than 30 days' notice. The issuer of such
obligations generally has a corresponding right, after a given period, to prepay
in its discretion the outstanding principal amount of the obligation plus
accrued interest upon a specified number of days' notice to the holders thereof.
The interest rates payable on certain securities in which the Fund may invest
are not fixed and may fluctuate based upon changes in market rates. Variable and
floating rate obligations have interest rates that are adjusted at designated
intervals or whenever there are changes in the market rates of interest on which
the interest rates are based. Variable and floating rate obligations permit the
Fund to "lock in" the current interest rate for only the period until the next
rate adjustment, but the rate adjustment feature tends to limit the extent to
which the market value of the obligation will fluctuate.

BANKERS' ACCEPTANCES
Bankers' acceptances are negotiable obligations of a bank to pay a draft which
has been drawn on it by a customer. These obligations are backed by large banks
and usually are backed by goods in international trade.

CERTIFICATES OF DEPOSIT
Certificates of deposit are negotiable certificates representing a commercial
bank's obligations to repay funds deposited with it, earning specified rates of
interest over a given period of time.

COMMERCIAL PAPER
Commercial paper consists of short-term promissory notes issued by large
corporations with a high quality rating to finance short-term credit needs.

U.S. GOVERNMENT OBLIGATIONS
U.S. government obligations are debt securities issued or guaranteed by the U.S.
Treasury or by an agency or instrumentality of the U.S. government. However, not
all U.S. government obligations are backed by the full faith and credit of the
United States. For example, securities issued by the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation and the Tennessee Valley
Authority are supported only by the credit of the issuer. There is no guarantee
that the U.S. government will provide support to such U.S. government sponsored
agencies, as it is not so obligated by law. Therefore, the purchase of such
securities involves more risk than investment in other U.S. government
obligations.

REPURCHASE AGREEMENTS
A repurchase agreement is a transaction in which the Fund purchases a security
from a bank or recognized securities dealer and simultaneously commits to resell
that security to the bank or dealer at an agreed-upon price, date and market
rate of interest unrelated to the coupon rate or maturity of the purchased
security. Although repurchase agreements carry certain risks not associated with
direct investments in securities, including possible decline in the market value
of the underlying securities and delays and costs to the Fund if the other party
to the repurchase agreement becomes bankrupt, the Fund intends to enter into
repurchase agreements only with banks and dealers believed by the Sub-adviser to
present

Statement of Additional Information Page 4
<PAGE>
AIM DOLLAR FUND
minimal credit risks in accordance with guidelines established by the Board. The
Sub-adviser will review and monitor the creditworthiness of such institutions
under the Board's general supervision.

The Fund will invest only in repurchase agreements collateralized at all times
in an amount at least equal to the repurchase price plus accrued interest. To
the extent that the proceeds from any sale of such collateral upon a default in
the obligation to repurchase were less than the repurchase price, the Fund would
suffer a loss. If the financial institution which is party to the repurchase
agreement petitions for bankruptcy or otherwise becomes subject to bankruptcy or
other liquidation proceedings, there may be restrictions on the Fund's ability
to sell the collateral and the Fund could suffer a loss. However, with respect
to financial institutions whose bankruptcy or liquidation proceedings are
subject to the U.S. Bankruptcy Code, the Fund intends to comply with provisions
under that code that would allow the immediate resale of such collateral. There
is no limitation on the amount of the Fund's assets that may be subject to
repurchase agreements at any given time. The Fund will not enter into a
repurchase agreement with a maturity of more than seven days if, as a result,
more than 10% of the value of its net assets would be invested in such
repurchase agreements and other illiquid investments.

WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may buy and sell securities on a when-issued or delayed delivery basis,
with payment and delivery taking place at a future date. The market value of
securities purchased in this way may change before the delivery date, which
could increase fluctuations in the Fund's yield. Ordinarily, the Fund will not
earn interest on securities purchased until they are delivered.

ILLIQUID SECURITIES
The Fund will not invest more than 10% of its net assets in illiquid securities.
The term "illiquid securities" for this purpose means securities that cannot be
disposed of within seven days in the ordinary course of business at
approximately the amount at which the Fund has valued the securities and
includes, among other things, repurchase agreements maturing in more than seven
days, and restricted securities other than those the Sub-adviser has determined
to be liquid pursuant to guidelines established by the Board. Commercial paper
issues in which the Fund may invest include securities issued by major
corporations without registration under the Securities Act of 1933, as amended
(the "1933 Act"), in reliance on the exemption from such registration afforded
by Section 3(a)(3) thereof and commercial paper issued in reliance on the so-
called "private placement" exemption from registration afforded by Section 4(2)
of the 1933 Act ("Section 4(2) paper"). Section 4(2) paper is restricted as to
disposition under the federal securities laws in that any resale must similarly
be made in an exempt transaction. Section 4(2) paper is normally resold to other
institutional investors through or with the assistance of investment dealers who
make a market in Section 4(2) paper, thus providing liquidity.

Not all restricted securities are illiquid. In recent years a large
institutional market has developed for certain securities that are not
registered under the 1933 Act, including private placements, repurchase
agreements, commercial paper, foreign securities and corporate bonds and notes.
These instruments are often restricted securities because the securities are
sold in transactions not requiring registration. Institutional investors
generally will not seek to sell these instruments to the general public, but
instead will often depend either on an efficient institutional market in which
such unregistered securities can be readily resold on or an issuer's ability to
honor a demand for repayment. Therefore, the fact that there are contractual or
legal restrictions on resale to the general public or certain institutions is
not dispositive of the liquidity of such investments.

Rule 144A under the 1933 Act establishes a "safe harbor" from the registration
requirements of the 1933 Act for resales of certain securities to qualified
institutional buyers. Institutional markets for restricted securities have
developed as a result of Rule 144A, providing both readily ascertainable values
for restricted securities and the ability to liquidate an investment to satisfy
share redemption orders. Such markets include automated systems for the trading,
clearance and settlement of unregistered securities, such as the PORTAL System
sponsored by the National Association of Securities Dealers, Inc. An
insufficient number of qualified institutional buyers interested in purchasing
Rule 144A-eligible restricted securities held by the Fund, however, could affect
adversely the marketability of such portfolio securities and the Fund might be
unable to dispose of such securities promptly or at favorable prices.

With respect to liquidity determinations generally, the Board has the ultimate
responsibility for determining whether specific securities, including restricted
securities pursuant to Rule 144A under the 1933 Act, are liquid or illiquid. The
Board has delegated the function of making day-to-day determinations of
liquidity to the Sub-adviser, in accordance with procedures approved by the
Board. The Sub-adviser takes into account a number of factors in reaching
liquidity decisions, including (1) the frequency of trading in the security; (2)
the number of dealers that make quotes for the security; (3) the number of
dealers that have undertaken to make a market in the security; (4) the number of
other potential purchasers; and (5) the nature of the security and how trading
is effected (E.G., the time needed to sell the security, how offers are

Statement of Additional Information Page 5
<PAGE>
AIM DOLLAR FUND
solicited and the mechanics of transfer). The Sub-adviser monitors the liquidity
of securities held by the Fund and periodically reports such determinations to
the Board as applicable. If the liquidity percentage restriction of the Fund is
satisfied at the time of investment, a later increase in the percentage of
illiquid securities held by the Fund resulting from a change in market value or
assets will not constitute a violation of that restriction. If as a result of a
change in market value or assets, the percentage of illiquid securities held by
the Fund increases above the applicable limit, the Sub-adviser will take
appropriate steps to bring the aggregate amount of illiquid assets back within
the prescribed limitations as soon as reasonably practicable, taking into
account the effect of any disposition on the Fund.

- --------------------------------------------------------------------------------

INVESTMENT LIMITATIONS

- --------------------------------------------------------------------------------

The Fund has adopted the following investment limitations as fundamental
policies that may not be changed without approval by the affirmative vote of a
majority of the outstanding shares of the Fund. The Fund may not:

(1) Purchase securities of any one issuer if, as a result, more than 5%
of the Fund's total assets would be invested in securities of that issuer or
the Fund would own or hold more than 10% of the outstanding voting
securities of that issuer, except that up to 25% of the Fund's total assets
may be invested without regard to this limitation, and except that this
limitation does not apply to securities issued or guaranteed by the U.S.
government, its agencies or instrumentalities or to securities issued by
other investment companies;

(2) Issue senior securities or borrow money, except as permitted under
the 1940 Act and then not in excess of 33 1/3% of the Fund's total assets
(including the amount borrowed but reduced by any liabilities not
constituting borrowings) at the time of the borrowing, except that the Fund
may borrow up to an additional 5% of its total assets (not including the
amount borrowed) for temporary or emergency purposes;

(3) Engage in the business of underwriting securities of other issuers,
except to the extent that the Fund might be considered an underwriter under
the federal securities laws in connection with its disposition of portfolio
securities;

(4) Purchase or sell real estate, except that investments in securities
of issuers that invest in real estate and investments in mortgage-backed
securities, mortgage participations or other instruments supported by
interests in real estate are not subject to this limitation, and except that
the Fund may exercise rights under agreements relating to such securities,
including the right to enforce security interests and to hold real estate
acquired by reason of such enforcement until that real estate can be
liquidated in an orderly manner;

(5) Make loans, except through loans of portfolio securities or through
repurchase agreements, provided that for purposes of this limitation, the
acquisition of bonds, debentures, other debt securities or instruments, or
participations or other interests therein and investments in government
obligations, commercial paper, certificates of deposit, bankers' acceptances
or similar instruments will not be considered the making of a loan;

(6) Purchase or sell physical commodities, but the Fund may purchase,
sell or enter into financial options and futures, forward and spot currency
contracts, swap transactions and other financial contracts or derivative
instruments; or

(7) Purchase any security if, as a result of that purchase, 25% or more
of the Fund's total assets would be invested in securities of issuers having
their principal business activities in the same industry, except that this
limitation does not apply to securities issued or guaranteed by the U.S.
government, its agencies or instrumentalities;

Notwithstanding any other investment policy of the Fund, the Fund may invest all
of its investable assets (cash, securities and receivables related to
securities) in an open-end management investment company having substantially
the same investment objective, policies and limitations as the Fund.

For purposes of the concentration policy contained in limitation (7), above, the
Fund intends to comply with the SEC staff position that securities issued or
guaranteed as to principal and interest by any single foreign government are
considered to be securities of issuers in the same industry.

Statement of Additional Information Page 6
<PAGE>
AIM DOLLAR FUND

If a percentage restriction is adhered to at the time of investment, a later
increase or decrease in percentage resulting from a change in values or assets
will not constitute a violation of that restriction.

The following investment policies of the Fund are not fundamental policies and
may be changed by vote of the Trust's Board of Trustees without shareholder
approval. The Fund may not:

(1) Invest more than 10% of its net assets in illiquid securities;

(2) Purchase securities on margin, provided that the Fund may obtain
short-term credits as may be necessary for the clearance of purchases and
sales of securities, and further provided that the Fund may make margin
deposits in connection with its use of financial options and futures,
forward and spot currency contracts, swap transactions and other financial
contracts or derivative instruments; or

(3) Mortgage, pledge, or hypothecate any of its assets, provided that
this shall not apply to the transfer of securities in connection with any
permissible borrowing or to collateral arrangements in connection with
permissible activities.

Statement of Additional Information Page 7
<PAGE>
AIM DOLLAR FUND

TRUSTEES AND EXECUTIVE
OFFICERS

- --------------------------------------------------------------------------------

The Trust's Trustees and Executive Officers are listed below. Unless otherwise
indicated, the address of each Executive Officer is 11 Greenway Plaza, Suite
100, Houston, Texas 77046.

<TABLE>
<CAPTION>
NAME, POSITION(S) WITH THE PRINCIPAL OCCUPATIONS AND BUSINESS
TRUST AND ADDRESS EXPERIENCE FOR PAST 5 YEARS
- --------------------------------------- ------------------------------------------------------------------------------------------
<S> <C>
William J. Guilfoyle*, 40 President, GT Global, Inc. since 1995; Director, GT Global since 1991; Senior Vice
Trustee, Chairman of the Board and President and Director of Sales and Marketing, GT Global from May 1992 to April 1995;
President Director, Liechtenstein Global Trust AG (holding company of the various international LGT
50 California Street companies) Advisory Board from January 1996 to May 1998; Director, G.T. Global Insurance
San Francisco, CA 94111 Agency ("G.T. Insurance") since 1996; President and Chief Executive Officer, G.T.
Insurance since 1995; Senior Vice President and Director, Sales and Marketing, G.T.
Insurance from April 1995 to November 1995; Senior Vice President, Retail Marketing, G.T.
Insurance from 1992 to 1993; and Trustee, each of the other investment companies
registered under the 1940 Act that is sub-advised or sub-administered by the Sub-adviser.

C. Derek Anderson, 57 President, Plantagenet Capital Management, LLC (an investment partnership); Chief
Trustee Executive Officer, Plantagenet Holdings, Ltd. (an investment banking firm); Director,
220 Sansome Street Anderson Capital Management, Inc. since 1988; Director, PremiumWear, Inc. (formerly
Suite 400 Munsingwear, Inc.)(a casual apparel company); Director, "R" Homes, Inc. and various other
San Francisco, CA 94104 companies; and Trustee, each of the other investment companies registered under the 1940
Act that is sub-advised or sub-administered by the Sub-adviser.

Frank S. Bayley, 58 Partner, law firm of Baker & McKenzie; Director and Chairman, C.D. Stimson Company (a
Trustee private investment company); and Trustee, each of the other investment companies
Two Embarcadero Center registered under the 1940 Act that is sub-advised or sub- administered by the Sub-adviser.
Suite 2400
San Francisco, CA 94111

Arthur C. Patterson, 54 Managing Partner, Accel Partners (a venture capital firm); Director, Viasoft and PageMart,
Trustee Inc. (both public software companies) and several other privately held software and
428 University Avenue communications companies; and Trustee, each of the other investment companies registered
Palo Alto, CA 94301 under the 1940 Act that is sub-advised or sub-administered by the Sub-adviser.

Ruth H. Quigley, 63 Private investor; President, Quigley Friedlander & Co., Inc. (a financial advisory
Trustee services firm) from 1984 to 1986; and Trustee, each of the other investment companies
1055 California Street registered under the 1940 Act that is sub-advised or sub- administered by the Sub-adviser.
San Francisco, CA 94108
</TABLE>

- ------------------

* Mr. Guilfoyle is an "interested person" of the Trust as defined by the 1940
Act due to his affiliation with the Sub-adviser.

Statement of Additional Information Page 8
<PAGE>
AIM DOLLAR FUND

Kenneth W. Chancey, 53 Senior Vice President -- Mutual Fund Accounting, the Sub-adviser since 1997; Vice
Vice President and President -- Mutual Fund Accounting, the Sub-adviser from 1992 to 1997.
Principal Accounting Officer
50 California Street
San Francisco, CA 94111

Melville B. Cox, 54 Vice President and Chief Compliance Officer, A I M Advisors, Inc., A I M Capital
Vice President Management, Inc., A I M Distributors, Inc., A I M Fund Services, Inc. and Fund Management
Company.

Gary T. Crum, 50 Director and President, A I M Capital Management, Inc.; Director and Senior Vice
Vice President President, A I M Management Group Inc. and A I M Advisors, Inc.; and Director, A I M
Distributors, Inc. and AMVESCAP PLC.

Robert H Graham, 51 Director, President and Chief Executive Officer, A I M Management Group Inc.; Director and
Vice President President, A I M Advisors, Inc.; Director and Senior Vice President, A I M Capital
Management, Inc., A I M Distributors, Inc., A I M Fund Services, Inc. and Fund Management
Company; and Director, AMVESCAP PLC.

Helge K. Lee, 52 Chief Legal and Compliance Officer -- North America, the Sub-adviser since October 1997;
Vice President and Secretary Secretary and Chief Legal and Compliance Officer, INVESCO (NY) Asset Management, Inc.,
50 California Street INVESCO (NY), Inc., GT Global Investor Services, Inc. and G.T. Insurance since August
San Francisco, CA 94111 1997; Secretary and Chief Legal and Compliance Officer, GT Global from August 1997 to
April 1998; Executive Vice President of the Asset Management Division of Liechtenstein
Global Trust AG, from October 1996 to May 1998; Senior Vice President, General Counsel and
Secretary of INVESCO (NY) Asset Management, Inc., INVESCO (NY), Inc., GT Global, GT Global
Investor Services, Inc. and G.T. Insurance from May 1994 to October 1996; and Senior Vice
President, General Counsel and Secretary of Strong/Corneliuson Management, Inc. and
Secretary of each of the Strong Funds from October 1991 to May 1994.

Carol F. Relihan+, 43 Director, Senior Vice President, General Counsel and Secretary, A I M Advisors, Inc.; Vice
Vice President President, General Counsel and Secretary, A I M Management Group Inc.; Director, Vice
President and General Counsel, Fund Management Company; Vice President and General
Counsel, A I M Fund Services, Inc.; and Vice President, A I M Capital Management, Inc. and
A I M Distributors, Inc.

Dana R. Sutton, 39 Vice President and Fund Controller, A I M Advisors, Inc.; and Assistant Vice President and
Vice President and Assistant Assistant Treasurer, Fund Management Company.
Treasurer
</TABLE>

- --------------
+ Mr. Arthur and Ms. Relihan are married to each other.

Statement of Additional Information Page 9
<PAGE>
AIM DOLLAR FUND

The Board of Trustees has a Nominating and Audit Committee, comprised of Miss
Quigley and Messrs. Anderson, Bayley and Patterson, which is responsible for
nominating persons to serve as Trustees, reviewing audits of the Trust and
recommending firms to serve as independent auditors of the Trust. Each of the
Trustees and Officers of the Trust is also a Trustee and Officer of AIM
Investment Funds, AIM Floating Rate Fund, AIM Growth Series, AIM Series Trust,
AIM Eastern Europe Fund, GT Global Variable Investment Trust, GT Global Variable
Investment Series, Global High Income Portfolio, Growth Portfolio, Floating Rate
Portfolio and Global Investment Portfolio, which also are registered investment
companies advised by AIM and sub-advised by the Sub-adviser. All of the Trust's
Trustees also serve as directors or trustees of some or all of the other
investment companies managed, administered or advised by AIM. All of the Trust's
executive officers hold similar offices with some or all of the other investment
companies managed, administered or advised by AIM. Each Trustee who is not a
trustee, officer or employee of the Sub-adviser or any affiliated company is
paid aggregate fees of $5,000 a year, plus $300 per fund for each meeting of the
Board attended, and reimbursed travel and other expenses incurred in connection
with attendance at such meetings. Other Trustees and Officers receive no
compensation or expense reimbursement from the Trust. For the fiscal year ended
December 31, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and Miss Quigley, who
are not trustees, officers or employees of the Sub-adviser or any affiliated
company, received total compensation of $3,588, $3,716, $3,100 and $3,409,
respectively, from the Trust for their services as Trustees. For the fiscal year
ended December 31, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and Miss
Quigley, who are not trustees, officers or employees of the Sub-adviser or any
other affiliated company, received total compensation of $103,654, $106,556,
$89,700 and $98,038, respectively, from the investment companies managed or
administered by AIM and sub-advised or sub-administered by the Sub-adviser, for
which he or she serves as Trustee. Fees and expenses disbursed to the Trustees
contained no accrued or payable pension or retirement benefits. As of June 26,
1998, the Officers and Trustees and their families as a group owned in the
aggregate beneficially or of record less than 1% of the outstanding shares of
the Fund.

- --------------------------------------------------------------------------------

CONTROL PERSONS AND
PRINCIPAL HOLDERS OF SECURITIES

- --------------------------------------------------------------------------------

To the best knowledge of the Trust, the names and addresses of the holders of 5%
or more of the outstanding shares of any class of the Fund's equity securities
as of June 26, 1998, and the percentage of the outstanding shares held by such
holders are set forth below:

<TABLE>
<CAPTION>
PERCENT
PERCENT OWNED OF
OWNED OF RECORD AND
AIM DOLLAR FUND NAME AND ADDRESS OF OWNER RECORD* BENEFICIALLY
- --------------------------------------------- --------------------------- -------- ------------
<S> <C> <C> <C>
Class A Bear Stearns Securities 8.18% -0-
Corp.
FBO 101-40029-2Y
One Metrotech Center
Brooklyn, New York
11201-3870
Merrill Lynch, Pierce, 7.87% -0-
Fenner & Smith
141 W. Jackson Boulevard
Suite 290
Chicago, Illinois
60604-2904
Bear Stearns Securities 7.02% -0-
Corp.
FBO 102-06578-29
One Metrotech Center
Brooklyn, New York
11201-3870
Advisor Class G.T. Capital Holdings, Inc. 10.67% -0-
SERP Deferred Compensation
50 California Street 27th
Floor
San Francisco, California
94111-4624
Attn: Ellen Hoke
</TABLE>

- --------------

* The Trust has no knowledge as to whether all or any portion of the shares
owned of record are also owned beneficially.

Statement of Additional Information Page 10
<PAGE>
AIM DOLLAR FUND

MANAGEMENT

- --------------------------------------------------------------------------------

INVESTMENT MANAGEMENT AND ADMINISTRATION SERVICES

AIM serves as the Fund's investment manager and administrator under an
investment management and administration contract between the Trust and AIM
("Management Contract"). The Sub-adviser serves as the sub-adviser and sub-
administrator to the Fund under a Sub-Advisory and Sub-Administration Contract
between AIM and the Sub-adviser ("Sub-Management Contract," and together with
the Management Contract, the "Management Contracts"). As investment managers and
administrators, AIM and the Sub-adviser make all investment decisions for the
Fund and administer the Fund's affairs. Among other things, AIM and the
Sub-adviser furnish the services and pay the compensation and travel expenses of
persons who perform the executive, administrative, clerical and bookkeeping
functions of the Trust and the Fund, and provide suitable office space,
necessary small office equipment and utilities.

The Management Contracts may be renewed for one-year terms with respect to the
Fund, provided that any such renewal has been specifically approved at least
annually by: (i) the Board, or by the vote of a majority of the Fund's
outstanding voting securities (as defined in the 1940 Act), and (ii) a majority
of Trustees who are not parties to the Management Contracts or "interested
persons" of any such party (as defined in the 1940 Act), cast in person at a
meeting called for the specific purpose of voting on such approval. Either the
Trust or each of AIM or the Sub-adviser may terminate the Management Contracts
without penalty upon sixty days' written notice to the other party. The
Management Contracts terminate automatically in the event of their assignment
(as defined in the 1940 Act).

For the fiscal years ended December 31, 1997, 1996 and 1995, the Fund paid
investment management and administration fees to the Sub-adviser in the amounts
of $1,384,735, $1,808,976 and $1,665,299, respectively. During the fiscal years
ended December 31, 1997 and 1996, the Sub-adviser reimbursed the Fund for a
portion of its investment management and administration fees in the amounts of
$88,707 and $173,045, respectively. No such reimbursements were made during the
fiscal year ended December 31, 1995.

THE DISTRIBUTION PLANS

THE CLASS A PLAN. The Trust has adopted a Master Distribution Plan pursuant to
Rule 12b-1 under the 1940 Act relating to the Class A shares of the Fund (the
"Class A Plan"). The Class A Plan provides that the Class A shares pay 0.25% per
annum of their average daily net assets as compensation to AIM Distributors for
the purpose of financing any activity which is primarily intended to result in
the sale of Class A shares. Of such amounts, the Fund pays a service fee of
0.25% of the average daily net assets attributable to Class A shares to selected
dealers and other institutions which furnish continuing personal shareholder
services to their customer who purchase and own Class A shares. Activities
appropriate for financing under the Class A Plan include, but are not limited
to, the following: printing of prospectuses and statements of additional
information and reports for other than existing shareholders; overhead;
preparation and distribution of advertising material and sales literature;
expenses of organizing and conducting sales seminars; supplemental payments to
dealers and other institutions such as asset-based sales charges or as payments
of service fees under shareholder service arrangements; and costs of
administering the Class A Plan.

THE CLASS B PLAN. The Trust has also adopted a Master Distribution Plan pursuant
to Rule 12b-1 under the 1940 Act relating to Class B shares of the Fund (the
"Class B Plan", and collectively with the Class A Plan, the "Plans"). Under the
Class B Plan, the Fund pays compensation to AIM Distributors at an annual rate
of 1.00% of the average daily net assets attributable to Class B shares. Of such
amount, the Fund pays a service fee of 0.25% of the average daily net assets
attributable to Class B shares to selected dealers and other institutions which
furnish continuing personal shareholder services to their customers who purchase
and own Class B shares. Amounts paid in accordance with the Class B Plan may be
used to finance any activity primarily intended to result in the sale of Class B
shares, including but not limited to printing of prospectuses and statements of
additional information and reports for other than existing shareholders;
overhead; preparation and distribution of advertising material and sales
literature; expenses of organizing and conducting sales seminars; supplemental
payments to dealers and other institutions such as asset-based sales charges or
as payments of service fees under shareholder service arrangements; and costs of
administering the Class B Plan. AIM

Statement of Additional Information Page 11
<PAGE>
AIM DOLLAR FUND

Distributors may transfer and sell its rights to payments under the Class B Plan
in order to finance distribution expenditures in respect of Class B shares.

BOTH PLANS. Pursuant to an incentive program, AIM Distributors may enter into
agreements ("Shareholder Service Agreements") with investment dealers selected
from time to time by AIM Distributors for the provision of distribution
assistance in connection with the sale of the Funds' shares to such dealers'
customers, and for the provision of continuing personal shareholder services to
customers who may from time to time directly or beneficially own shares of the
Funds. The distribution assistance and continuing personal shareholder services
to be rendered by dealers under the Shareholder Service Agreements may include,
but shall not be limited to, the following: distributing sales literature;
answering routine customer inquiries concerning the Fund; assisting customers in
changing dividend options, account designations and addresses, and in enrolling
in any of the several special investment plans offered in connection with the
purchase of the Fund's shares; assisting in the establishment and maintenance of
customer accounts and records and in the processing of purchase and redemption
transactions; investing dividends and any capital gains distributions
automatically in the Fund's shares; and providing such other information and
services as the Fund or the customer may reasonably request.

Under the Plans, in addition to the Shareholder Service Agreements authorizing
payments to selected dealers, banks may enter into Shareholder Service
Agreements authorizing payments under the Plans to be made to banks which
provide services to their customers who have purchased shares. Services provided
pursuant to Shareholder Service Agreements with banks may include some or all of
the following: answering shareholder inquiries regarding the Fund; performing
sub-accounting; establishing and maintaining shareholder accounts and records;
processing customer purchase and redemption transactions; providing periodic
statements showing a shareholder's account balance and the integration of such
statements with those of other transactions and balances in the shareholder's
other accounts serviced by the bank; forwarding applicable prospectuses, proxy
statements, reports and notices to bank clients who hold Fund shares; and such
other administrative services as the Fund reasonably may request, to the extent
permitted by applicable statute, rule or regulation. Similar agreements may be
permitted under the Plans for institutions which provide recordkeeping for and
administrative services to 401(k) plans.

Financial intermediaries and any other person entitled to receive compensation
for selling Fund shares may receive different compensation for selling shares of
one particular class over another.

Under a Shareholder Service Agreement, the Fund agrees to pay periodically fees
to selected dealers and other institutions who render the foregoing services to
their customers. The fees payable under a Shareholder Service Agreement
generally will be calculated at the end of each payment period for each business
day of the Fund during such period at the annual rate of 0.25% of the average
daily net asset value of the Fund's shares purchased or acquired through
exchange. Fees calculated in this manner shall be paid only to those selected
dealers or other institutions who are dealers or institutions of record at the
close of business on the last business day of the applicable payment period for
the account in which the Fund's shares are held.

Payments pursuant to the Plans are subject to any applicable limitations imposed
by rules of the National Association of Securities Dealers, Inc. ("NASD"). The
Plans conform to rules of the NASD by limiting payments made to dealers and
other financial institutions who provide continuing personal shareholder
services to their customers who purchase and own shares of the Fund to no more
than 0.25% per annum of the average daily net assets of the funds attributable
to the customers of such dealers or financial institutions, and by imposing a
cap on the total sales charges, including asset based sales charges, that may be
paid by the Fund and its respective classes.

AIM Distributors does not act as principal, but rather as agent for the Fund, in
making dealer incentive and shareholder servicing payments under the Plans.
These payments are an obligation of the Fund and not of AIM Distributors.

Prior to June 1, 1998, the Trust had adopted a different Rule 12b-1, that
operated as a "reimbursement-type" plan (the "Prior Plan"). The information
provided below relates to payments made under the Prior Plan, which provided for
payments to GT Global Inc., the distributor of the Fund at the time the Prior
Plan was in effect.

For the fiscal year ended December 31, 1997, the Fund paid the following amounts
under the Prior Plan:

<TABLE>
<CAPTION>
% OF CLASS
AVERAGE DAILY
NET ASSETS
--------------------
CLASS A CLASS B CLASS A CLASS B
-------------- -------------- --------- ---------
<S> <C> <C> <C> <C>
$ -- $ -- --% --%
</TABLE>

Statement of Additional Information Page 12
<PAGE>
AIM DOLLAR FUND

Actual fees by category paid by the Fund with regard to the Class A shares
during the year ended December 31, 1997 follows:

<TABLE>
<S> <C>
CLASS A
Advertising...................................................................... $ --
Printing and mailing prospectuses, semi-annual reports and annual reports (other
than to current shareholders)................................................... $ --
Seminars......................................................................... $ --
Compensation to Underwriters to partially offset other marketing expenses........ $ --
Compensation to Dealers including finder's fees.................................. $ --
Compensation to Sales Personnel.................................................. $ --
Annual Report Total.............................................................. $ --
</TABLE>

Actual fees by category paid by the Fund with regard to the Class B Shares
during the year ended December 31, 1997 as follows:

<TABLE>
<S> <C>
CLASS B
Advertising...................................................................... $ --
Printing and mailing prospectuses, semi-annual reports and annual reports (other
than to current shareholders)................................................... $ --
Seminars......................................................................... $ --
Compensation to Underwriters to partially offset upfront dealer commissions and
other marketing costs........................................................... $ --
Compensation to Dealers.......................................................... $ --
Compensation to Sales Personnel.................................................. $ --
Annual Report Total.............................................................. $ --
</TABLE>

The Plans require AIM Distributors to provide the Board of Trustees at least
quarterly with a written report of the amounts expended pursuant to the Plans
and the purposes for which such expenditures were made. The Board of Trustees
reviews these reports in connection with their decisions with respect to the
Plans.

As required by Rule 12b-1, the Plans and related forms of Shareholder Service
Agreements were approved by the Board of Trustees, including a majority of the
Trustees who are not "interested persons" (as defined in the 1940 Act) of the
Trust and who have no direct or indirect financial interest in the operation of
the Plans or in any agreements related to the Plans ("Qualified Trustees"). In
approving the Plans in accordance with the requirements of Rule 12b-1, the
Trustees considered various factors and determined that there is a reasonable
likelihood that the Plans would benefit each class of the Fund and their
respective shareholders.

The Plans do not obligate the Fund to reimburse AIM Distributors for the actual
expenses AIM Distributors may incur in fulfilling its obligations under the
Plans. Thus, even if AIM Distributors' actual expenses exceed the fee payable to
AIM Distributors thereunder at any given time, the Fund will not be obligated to
pay more than that fee. If AIM Distributors' expenses are less than the fee it
receives, AIM Distributors will retain the full amount of the fee.

Unless terminated earlier in accordance with their terms, the Plans continue in
effect until [June 30, 1999] and each year thereafter, as long as such
continuance is specifically approved at least annually by the Board of Trustees,
including a majority of the Qualified Trustees.

The Plans may be terminated by the vote of a majority of the Independent
Trustees, or, with respect to a particular class, by the vote of a majority of
the outstanding voting securities of that class.

Any change in the Plans that would increase materially the distribution expenses
paid by the applicable class requires shareholder approval; otherwise, it may be
amended by the Trustees, including a majority of the Qualified Trustees, by
votes cast in person at a meeting called for the purpose of voting upon such
amendment. As long as the Plans are in effect, the selection or nomination of
the Qualified Trustees is committed to the discretion of the Qualified Trustees.
In the event

Statement of Additional Information Page 13
<PAGE>
AIM DOLLAR FUND

the Class A Plan is amended in a manner which the Board of Trustees determines
would materially increase the charges paid under the Class A Plan, the Class B
shares of the Fund will no longer convert into Class A shares of the same Fund
unless the Class B shares, voting separately, approve such amendment. If the
Class B shareholders do not approve such amendment, the Board of Trustees will
(i) create a new class of shares of the Fund which is identical in all material
respects to the Class A shares as they existed prior to the implementation of
the amendment and (ii) ensure that the existing Class B shares of the Fund will
be exchanged or converted into such new class of shares no later than the date
the Class B shares were scheduled to convert into Class A shares.

The principal differences between the Class A Plan, on the one hand, and the
Class B Plan, on the other hand, are: (i) the Class A Plan allows payment to AIM
Distributors or to dealers or financial institutions of up to 0.25% of average
daily net assets of the Class A shares of the Fund, as compared to 1.00% of such
assets of the Fund's Class B shares; (ii) the Class B Plan obligates the Class B
shares to continue to make payments to AIM Distributors following termination of
the Class B shares Distribution Agreement with respect to Class B shares sold by
or attributable to the distribution efforts of AIM Distributors unless there has
been a complete termination of the Class B Plan (as defined in such Plan) and
(iii) the Class B Plan expressly authorizes AIM Distributors to assign, transfer
or pledge its rights to payments pursuant to the Class B Plan.

THE DISTRIBUTOR

Information concerning AIM Distributors and the continuous offering of the
Fund's shares is set forth in the Prospectus under the headings "How to Purchase
Shares" and "Terms and Conditions of Purchase of the AIM Funds." A Master
Distribution Agreement with AIM Distributors relating to the Class A and Class B
shares of the Funds was approved by the Board of Trustees on , 1998.
Both such Master Distribution Agreements are hereinafter collectively referred
to as the "Distribution Agreements."

The Distribution Agreements provide that AIM Distributors will bear the expenses
of printing from the final proof and distributing the Fund's prospectuses and
statements of additional information relating to public offerings made by AIM
Distributors pursuant to the Distribution Agreements (other than those
prospectuses and statements of additional information distributed to existing
shareholders of the Fund), and any promotional or sales literature used by AIM
Distributors or furnished by AIM Distributors to dealers in connection with the
public offering of the Fund's shares, including expenses of advertising in
connection with such public offerings. AIM Distributors has not undertaken to
sell any specified number of shares of any classes of the Fund.

AIM Distributors expects to pay sales commissions from its own resources to
dealers and institutions who sell Class B shares of the Funds at the time of
such sales. Payments with respect to Class B shares will equal 4.0% of the
purchase price of the Class B shares sold by the dealer or institution, and will
consist of a sales commission equal to 3.75% of the purchase price of the Class
B shares sold plus an advance of the first year service fee of 0.25% with
respect to such shares. The portion of the payments to AIM Distributors under
the Class B Plan which constitutes an asset-based sales charge (0.75%) is
intended in part to permit AIM Distributors to recoup a portion of such sales
commissions plus financing costs. AIM Distributors anticipates that it will
require a number of years to recoup from Class B Plan payments the sales
commissions paid to dealers and institutions in connection with sales of Class B
shares. In the future, if multiple distributors serve a Fund, each such
distributor (or its assignee or transferee) would receive a share of the
payments under the Class B Plan based on the portion of the Fund's Class B
shares sold by or attributable to the distribution efforts of that distributor.

The Trust (on behalf of any class of the Fund) or AIM Distributors may terminate
the Distribution Agreements on sixty (60) days' written notice without penalty.
The Distribution Agreements will terminate automatically in the event of their
assignment. In the event the Class B shares Distribution Agreement is
terminated, AIM Distributors would continue to receive payments of asset based
distribution fees in respect of the outstanding Class B shares attributable to
the distribution efforts of AIM Distributors; provided, however, that a complete
termination of the Class B Plan (as defined in such Plan) would terminate all
payments to AIM Distributors. Termination of the Class B Plan or Distribution
Agreement does not affect the obligation of the Funds and their Class B
shareholders to pay contingent deferred sales charges.

Statement of Additional Information Page 14
<PAGE>
AIM DOLLAR FUND

The following chart reflects the total sales charges paid in connection with the
sale of Class A shares of each Fund and the amount retained by GT Global, Inc.,
the Trust's distributor prior to June 1, 1998, for the fiscal year ended
December 31, 1997.

<TABLE>
<CAPTION>
1997
--------------------------------
SALES AMOUNT
CHARGES RETAINED
---------------- --------------
<S> <C> <C>
$ -- $ --
</TABLE>

The following chart reflects the contingent deferred sales charges paid by Class
A and Class B shareholders for the fiscal year ended December 31, 1997, for
Class A and Class B shares:

<TABLE>
<CAPTION>
1997
------------
<S> <C>
Class A $ --
Class B $ --
</TABLE>

TRANSFER AGENCY AND ACCOUNTING AGENCY SERVICES

The Transfer Agency and Service Agreement between the Trust and A I M Fund
Services, Inc. ("AFS"), a registered transfer agent and wholly-owned subsidiary
of AIM, provides that AFS will perform certain shareholder services for the Fund
for a fee per account serviced. The Transfer Agency and Service Agreement
provides that AFS will receive a per account fee plus out-of-pocket expenses to
process orders for purchases, redemptions and exchanges of shares; prepare and
transmit payments for dividends and distributions declared by the Fund; maintain
shareholder accounts and provide shareholders with information regarding the
Fund and its accounts. The Transfer Agency and Service Agreement became
effective on September 8, 1998. The Sub-adviser also serves as the Fund's
pricing and accounting agent. For the fiscal years ended December 31, 1997, 1996
and 1995, the accounting services fees for the Fund were $69,517, $90,682 and
$86,710, respectively.

EXPENSES OF THE FUND

The Fund pays all expenses not assumed by AIM, the Sub-adviser, AIM Distributors
and other agents. These expenses include, in addition to the advisory,
administration, distribution, transfer agency, pricing and accounting agency and
brokerage fees discussed above, legal and audit expenses, custodian fees,
trustee's fees, organizational fees, fidelity bond and other insurance premiums,
taxes, extraordinary expenses and the expenses of reports and prospectuses sent
to existing investors. The allocation of general Trust expenses and expenses
shared among the Fund and other funds organized as series of the Trust are
allocated on a basis deemed fair and equitable, which may be based on the
relative net assets of the Fund or the nature of the service performed and
relative applicability to the Fund. Expenditures, including costs incurred in
connection with the purchase or sale of portfolio securities, which are
capitalized in accordance with generally accepted accounting principles
applicable to investment companies, are accounted for as capital items and not
as expenses.

DIVIDENDS AND TAXES

- --------------------------------------------------------------------------------

DAILY INCOME DIVIDENDS
Net investment income and any realized net short-term capital gain are
determined and declared as a dividend each day. Each such dividend is payable to
shareholders as of the close of business on that day. Orders to purchase Fund
shares are executed on the business day on which Federal Funds, i.e., monies
held on deposit at a Federal Reserve Bank, become available. Shares begin
accruing dividends on the day following the date of purchase. Shares are
entitled to the dividend declared on the day a redemption request is received by
the Transfer Agent. Dividends are automatically reinvested in Fund shares of the
distributing class on the last Business Day of the month, at net asset value,
unless a shareholder otherwise instructs the Transfer Agent in writing. A
shareholder that does so will be mailed a check in the amount of each dividend.
For the purpose of calculating dividends, daily net investment income of the
Fund consists of (a) all interest income accrued on investments (including any
discount or premium ratably accrued or amortized, respectively, to the date of
maturity or determined in such other manner the Fund chooses in accordance with
generally accepted accounting

Statement of Additional Information Page 15
<PAGE>
AIM DOLLAR FUND
principles), (b) minus all accrued liabilities, including interest, taxes and
other expense items, and reserves for contingent or undetermined liabilities,
all determined in accordance with those principles, (c) plus or minus all
realized gains or losses on investments, if any.

TAXES -- GENERAL
To continue to qualify for treatment as a regulated investment company under the
Internal Revenue Code of 1986, as amended (the "Code"), the Fund must distribute
to its shareholders for each taxable year at least 90% of its investment company
taxable income (consisting of net investment income and any net short-term
capital gain) and must meet several additional requirements. These requirements
include the following: (1) the Fund must derive at least 90% of its gross income
each taxable year from dividends, interest and gains from the sale or other
disposition of securities, or other income derived with respect to its business
of investing in securities; and (2) the Fund must diversify its holdings so
that, at the close of each quarter of its taxable year, (i) at least 50% of the
value of its total assets is represented by cash and cash items, U.S. government
securities and other securities limited, with respect to any one issuer, to an
amount that does not exceed 5% of the value of the Fund's total assets and (ii)
not more than 25% of the value of its total assets is invested in the securities
of any one issuer (other than U.S. government securities).

The Fund will be subject to a nondeductible 4% excise tax to the extent it fails
to distribute by the end of any calendar year substantially all of its ordinary
income for that year and capital gain net income, if any, for the one-year
period ending on October 31 of that year, plus certain other amounts.

Dividends from the Fund's investment company taxable income are taxable to its
shareholders as ordinary income. The Fund does not expect to receive any
dividend income from U.S. corporations, which means that no part of the
dividends from the Fund will not be eligible for the dividends-received
deduction allowed to corporations. Dividends will be taxed for federal income
tax purposes in the same manner whether they are received in cash or reinvested
in additional Fund shares.

NON-U.S. SHAREHOLDERS
Dividends paid by the Fund to a shareholder who, as to the United States, is a
nonresident alien individual, nonresident alien fiduciary of a trust or estate,
foreign corporation or foreign partnership (a "foreign shareholder") will be
subject to U.S. withholding tax (at a rate of 30% or lower treaty rate).
Withholding will not apply if a dividend paid by the Fund to a foreign
shareholder is "effectively connected with the conduct of a U.S. trade or
business," in which case the reporting and withholding requirements applicable
to U.S. citizens or other domestic taxpayers will apply.

The foregoing is a general and abbreviated summary of certain federal tax
considerations affecting the Fund and its shareholders. Investors are urged to
consult their own tax advisers for more detailed information and for information
regarding any foreign, state and local taxes applicable to an investment in the
Fund.

HOW TO PURCHASE AND REDEEM SHARES

- --------------------------------------------------------------------------------

A complete description of the manner in which shares of the Fund may be
purchased appears in the Fund's Prospectus under the headings "How to Purchase
Shares," "Terms and Conditions of Purchase of the AIM Funds" and "Special
Plans."

The sales charge normally deducted on purchases of Class A shares is used to
compensate AIM Distributors and participating dealers for their expenses
incurred in connections with the distribution of the Fund's Class A shares.
Since there is little expense associated with unsolicited orders placed directly
with AIM Distributors by persons who, because of their relationship with the
Fund or with AIM and its affiliates, are familiar with the Fund, or whose
programs for purchase involve little expense (e.g., because of the size of the
transaction and shareholder records required), AIM Distributors believes that it
is appropriate and in the Fund's best interests that such persons, and certain
other persons whose purchases result in relatively low expenses of distribution,
be permitted to purchase Class A shares of the Fund through AIM Distributors
without payment of a sales charge. The persons who may purchase Class A shares
of the Fund without a sales charge are set forth in the Fund's Prospectus. In
addition, the Fund offers programs such as Right of Accumulation and Letter of
Intent, which are described in the Prospectus, that are designed to permit
investors to aggregate purchases

Statement of Additional Information Page 16
<PAGE>
AIM DOLLAR FUND

of different funds, or separate purchases over time, in order to qualify for a
lower sales charge rate. See "Terms and Conditions of Purchase of the AIM Funds
- -- Reductions in Initial Sales Charges" in the Prospectus.

Class B shares will automatically convert into Class A shares of the Fund eight
years following the end of the calendar month in which a purchase was made. For
the purpose of calculating the holding period required for conversion of Class B
shares, the initial issuance of Class B shares shall mean (i) the date on which
such Class B shares were issued, or (ii) for Class B shares obtained through an
exchange, or a series of exchanges, the date on which the original Class B
shares were issued. For purposes of conversion to Class A, Class B shares
purchased through the reinvestment of dividends and other distributions paid in
respect of Class B shares will be held in a separate sub-account. Each time any
Class B shares in the shareholder's regular account (other than those in the
sub-account) convert to Class A, a pro rata portion of the Class B shares in the
sub-account will also convert to Class A. The portion will be determined by the
ratio that the shareholder's Class B shares converting to Class A bears to the
shareholder's total Class B shares not acquired through dividends and other
distributions.

The availability of the conversion feature is subject to the continuing
availability of an opinion of counsel to the effect that the dividends and other
distributions paid on Class A and Class B shares will not result in
"preferential dividends" under the Internal Revenue Code (the "Code") and the
conversion of shares does not constitute a taxable event. If the conversion
feature ceased to be available, the Class B shares beyond the eighth year. AIM
and the Sub-adviser has no reason to believe that this condition for the
availability of the conversion feature will not be met.

Class B shares purchased before June 1, 1998 are subject to the following
waivers from the contingent deferred sales charge otherwise due upon redemption,
in addition to the waivers provided for redemptions of currently issued Class B
shares as described in the Prospectus: (1) total or partial redemptions
resulting from a distribution following retirement in the case of a
tax-qualified employer-sponsored retirement; (2) minimum required distributions
made in connection with an IRA, Keogh Plan or custodial account under Section
403(b) of the Code or other retirement plan following attainment of age 70 1/2;
(3) a one-time reinvestment in Class B shares of the Fund within 180 days of a
prior redemption; (4) redemptions pursuant to distributions from a tax-qualified
employer-sponsored retirement plan, which is invested in AIM Funds, which are
permitted to be made without penalty pursuant to the Code, other than tax-free
rollovers or transfers of assets, and the proceeds of which are reinvested in
AIM Funds; (5) redemptions made in connection with participant-directed
exchanges between options in an employer-sponsored benefit plan; (6) redemptions
made for the purpose of providing cash to fund a loan to a participant in a
tax-qualified retirement plan; (7) redemptions made in connection with a
distribution from any retirement plan or account that is permitted in accordance
with the provisions of Section 72(t)(2) of the Code and the regulations
promulgated thereunder; (8) redemptions made in connection with a distribution
from a qualified profit-sharing or stock bonus plan described in Section 401(k)
of the Code to a participant or beneficiary under Section 401(k)(2)(B)(IV) of
the Code upon hardship of the covered employee (determined pursuant to Treasury
Regulation Section 1.401(k)-1(d)(2)); and (9) redemptions made by or for the
benefit of certain states, counties or cities, or any instrumentalities,
departments or authorities thereof where such entities are prohibited or limited
by applicable law from paying a sales charge or commission.

For purposes of a Letter of Intent entered into prior to June 1, 1998, any
registered investment adviser, trust company or bank trust department which
exercises investment discretion and which intends within thirteen months to
invest $500,000 or more can be treated as a single purchaser, provided further
that such entity places all purchases and redemption orders. Such entities
should be prepared to establish their qualifications for such treatment.

Complete information concerning the method of exchanging shares of the Fund for
shares of the other AIM Funds is set forth in the Prospectus under the heading
"Exchange Privilege."

Information concerning redemption of the Fund's shares is set forth in the
Prospectus under the heading "How to Redeem Shares." In addition to the Fund's
obligation to redeem shares, AIM Distributors may also repurchase shares as an
accommodation to shareholders. To effect a repurchase, those dealers who have
executed Selected Dealer Agreements with AIM Distributors must phone orders to
the order desk of the Fund at (800) 959-4246 and guarantee delivery of all
required documents in good order. A repurchase is effected at the net asset
value per share of the Fund next determined after the repurchase order is
received. Such an arrangement is subject to timely receipt by A I M Fund
Services, Inc., the Fund's transfer agent, of all required documents in good
order. If such documents are not received within a reasonable time after the
order is placed, the order is subject to cancellation. While there is no charge
imposed by a Fund or by AIM Distributors (other than any applicable contingent
deferred sales charge) when shares are redeemed or repurchased, dealers may
charge a fair service fee for handling the transaction.

Statement of Additional Information Page 17
<PAGE>
AIM DOLLAR FUND

The right of redemption may be suspended or the date of payment postponed when
(a) trading on the New York Stock Exchange ("NYSE") is restricted, as determined
by applicable rules and regulations of the SEC, (b) the NYSE is closed for other
than customary weekend and holiday closings, (c) the SEC has by order permitted
such suspension, or (d) an emergency as determined by the SEC exists making
disposition of portfolio securities or the valuation of the net assets of a Fund
not reasonably practicable.

The Fund's net asset value is calculated by dividing the number of outstanding
shares into the net assets of the Fund. Net assets are the excess of the Fund's
assets over its liabilities. A more detailed description of how the Fund's net
asset value is calculated appears in the Prospectus under the heading
"Determination of Net Asset Value."

PROGRAMS AND SERVICES FOR SHAREHOLDERS

The Fund provides certain services for shareholders and certain investment or
redemption programs. See "Exchange Privilege" and "How to Redeem Shares" in the
Prospectus. All inquiries concerning these programs should be made directly to
A I M Fund Services, Inc., P.O. Box 4739, Houston, TX 77210-4739, toll free at
(800) 959-4246.

DIVIDEND ORDER

Dividends may be paid to someone other than the registered owner, or sent to an
address other than the address of record. (Please note that signature guarantees
are required to effect this option.) An investor also may direct that his or her
dividends be invested in one of the other AIM Funds and there is no sales charge
for these investments; initial investment minimums apply. See "Dividends,
Distributions and Tax Matters -- Dividends and Distributions" in the Prospectus.
To effect this option, please contact your authorized dealer. For more
information concerning AIM Funds other than the Fund, please obtain a current
prospectus by contacting your authorized dealer, by writing to A I M Fund
Services, Inc., P.O. Box 4739, Houston, Texas 77210-4739, or by calling toll
free (800) 959-4246.

Statement of Additional Information Page 18
<PAGE>
AIM DOLLAR FUND

VALUATION OF FUND SHARES

- --------------------------------------------------------------------------------

The net asset value per share of the Fund is determined daily as of 12:00 noon
and the close of trading on the NYSE (generally 4:00 p.m. Eastern time) on each
business day of the Fund. In the event the NYSE closes early (i.e., before 4:00
p.m. Eastern time) on a particular day, the net asset value of a Fund is
determined as of the close of the NYSE on such day. Net asset value per share is
determined by dividing the value of the Fund's securities, cash and other assets
(including interest accrued but not collected) attributable to a particular
class, less all its liabilities (including accrued expenses and dividends
payable) attributable to that class, by the number of shares outstanding of that
class and rounding the resulting per share net asset value to the nearest one
cent. Determination of the net asset value per share is made in accordance with
generally accepted accounting principles.

The securities of the Fund are valued on the basis of amortized cost. This
method values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium,
regardless of the impact of fluctuating interest rates on the market value of
the security. While this method provides certainty in valuation, it may result
in periods during which value, as determined by amortized cost, is higher or
lower than the price the Fund would receive if the security were sold. During
such periods, the daily yield on shares of the Fund computed as described under
"Performance Information" may differ somewhat from an identical computation made
by another investment company with identical investments utilizing available
indications as to the market value of its portfolio securities.

The valuation of portfolio instruments based upon their amortized cost and the
concomitant maintenance of the net asset value per share of $1.00 for the Fund
is permitted in accordance with applicable rules and regulations of the SEC
which require the Fund to adhere to certain conditions. These rules require,
among other things, that the Fund maintain a dollar-weighted average portfolio
maturity of 90 days or less, purchase only instruments having remaining
maturities of 397 calendar days or less and invest only in securities determined
by the Board of Trustees to be "Eligible Securities" (as defined in Rule 2a-7
under the 1940 Act) and to present minimal credit risk to the Fund.

The Board of Trustees is required to establish procedures designed to stabilize,
to the extent reasonably practicable, the Fund's price per share at $1.00, as
computed for the purpose of sales and redemptions. Such procedures include
review of the Fund's holdings by the Board of Trustees at such intervals as they
may deem appropriate, to determine whether the net asset value calculated by
using available market quotations or other reputable sources for the Fund
deviates from $1.00 per share and, if so, whether such deviation may result in
material dilution or is otherwise unfair to existing holders of the Fund's
shares. In the event the Board of Trustees determines that such a deviation
exists for the Fund, it will take such corrective action as the Board of
Trustess deems necessary and appropriate with respect to the Fund, including the
sale of portfolio instruments prior to maturity to realize capital gains or
losses or to shorten the average portfolio maturity; the withholding of
dividends; redemption of shares in kind; or the establishment of a net asset
value per share by using available market quotations.

The Fund intends to comply with any amendments made to Rule 2a-7 which may
require corresponding changes in the Fund's procedures which are designed to
stabilize the Fund's price per share at $1.00.

Statement of Additional Information Page 19
<PAGE>
AIM DOLLAR FUND

EXECUTION OF PORTFOLIO
TRANSACTIONS

- --------------------------------------------------------------------------------

Subject to policies established by the Board, the Sub-adviser is responsible for
the execution of the Fund's portfolio transactions and the selection of
broker/dealers who execute such transactions on behalf of the Fund. Purchases
and sales of money market instruments by the Fund generally are made on a
principal basis, in which the dealer through whom the trade is executed retains
a "spread" as compensation. The spread is the difference in the price at which
the dealer buys or sells the instrument to the Fund and the price which the
dealer is able to resell or at which the dealer originally purchased,
respectively, the instrument. In executing transactions, the Sub-adviser seeks
the best net results for the Fund, taking into account such factors as the price
(including the applicable dealer spread), size of the order, difficulty of
execution and operational facilities of the firm involved. Although the
Sub-adviser generally seeks reasonably competitive spreads, payment of the
lowest spread is not necessarily consistent with the best net results. The Fund
has no obligation to deal with any broker/dealer or group of broker/dealers in
the execution of portfolio transactions.

Investment decisions for the Fund and for other investment accounts managed by
the Sub-adviser are made independently of each other in light of differing
conditions. However, the same investment decision occasionally may be made for
two or more of such accounts, including the Fund. In such cases, simultaneous
transactions may occur. Purchases or sales are then allocated as to price or
amount in a manner deemed fair and equitable to all accounts involved. While in
some cases this practice could have a detrimental effect upon the price or value
of the security as far as the Fund is concerned, in other cases the Sub-adviser
believes that coordination and the ability to participate in volume transactions
will be beneficial to the Fund.

Under a policy adopted by the Board, and subject to the policy of obtaining the
best net results, the Sub-adviser may consider a broker/dealer's sale of the
shares of the Fund and the other funds for which AIM or the Sub-adviser serves
as investment manager and/or administrator in selecting broker/dealers for the
execution of portfolio transactions. This policy does not imply a commitment to
execute portfolio transactions through all broker/dealers that sell shares of
the Fund and such other funds.

Statement of Additional Information Page 20
<PAGE>
AIM DOLLAR FUND

ADDITIONAL INFORMATION

- --------------------------------------------------------------------------------

AIM was organized in 1976, and along with its subsidiaries, manages or advises
approximately 90 investment company portfolios encompassing a broad range of
investment objectives. AIM is a direct, wholly owned subsidiary of A I M
Management Group Inc. ("AIM Management"), a holding company that has been
engaged in the financial services business since 1976. AIM is the sole
shareholder of the Fund's principal underwriter, AIM Distributors. AIM
Management is an indirect wholly owned subsidiary of AMVESCAP PLC, 11 Devonshire
Square, London, EC2M 4YR, England. AMVESCAP PLC and its subsidiaries are an
independent investment management group that has a significant presence in the
institutional and retail segment of the investment management industry in North
America and Europe, and a growing presence in Asia.

CUSTODIAN
State Street Bank and Trust Company ("State Street"), 225 Franklin Street,
Boston, MA 02110, acts as custodian of the Fund's assets. State Street is
authorized to establish and has established separate accounts in foreign
currencies and to cause securities of the Fund to be held in separate accounts
outside the United States in the custody of non-U.S. banks.

INDEPENDENT ACCOUNTANTS

The Fund's independent accountants are, .
conducts annual audits of the Fund's financial
statements, assists in the preparation of the Fund's federal and state income
tax returns and consults with the Trust and the Fund as to matters of
accounting, regulatory filings, and federal and state income taxation.

The financial statements of the Trust included in this Statement of Additional
Information have been audited by , as stated in their
opinion appearing herein, and are included in reliance upon such opinion given
upon the authority of that firm as experts in accounting and auditing.

SHAREHOLDER LIABILITY

Under Delaware law, the shareholders of the Trust enjoy the same limitations
extended to shareholders of private, for-profit corporations. There is a remote
possibility, however, that under certain circumstances shareholders of the Trust
may be held personally liable for the Trust's obligations. However, the Trust
Agreement disclaims shareholder liability for acts or obligations of the Trust
and requires that notice of such disclaimer be given in each agreement,
obligation or instrument entered into or executed by the Trust or a trustee. The
Trust Agreement provides for indemnification from the Trust property for all
losses and expenses of any shareholder held personally liable for the Trust's
obligations. Thus, the risk of a shareholder incurring financial loss on account
of such liability is limited to circumstances in which the Trust itself would be
unable to meet its obligations and where the other party was held not to be
bound by the disclaimer.

NAME
Prior to May 29, 1998, the Fund operated under the name of GT Global Dollar
Fund.

Statement of Additional Information Page 21
<PAGE>
AIM DOLLAR FUND

INVESTMENT RESULTS

- --------------------------------------------------------------------------------

The Fund may, from time to time, provide yield information or comparisons of its
yield to various averages including data from Lipper Analytical Services, Inc.,
Bank Rate Monitor-TM-, IBC/Donaghue's Money Fund Report, MONEY Magazine, and
other industry publications, in advertisements or in reports furnished to
current or prospective shareholders.

The Fund calculates its yield for its shares daily, based upon the seven days
ending on the day of the calculation, called the "base period." The yield is
computed by determining the net change in the value of a hypothetical account
with a balance of one share at the beginning of the base period, with the net
change, excluding capital changes, but including the value of any additional
shares purchased with dividends earned from the original one share and all
dividends declared on the original and any purchased shares; dividing the net
change in the account's value by the value of the account at the beginning of
the base period to determine the base period return; and multiplying the base
period return by (365/7). The Fund's effective yield is computed by compounding
the unannualized base period return by adding 1 to the base period return;
raising the sum to the 365/7th power; and subtracting 1 from the result.

For the seven-day period ended December 31, 1997, the Fund's Class A share yield
was 4.55% and effective yield was 4.66%. The seven-day and effective yields are
calculated as follows:

Assumptions:

<TABLE>
<S> <C>
Value of hypothetical pre-existing account with exactly one share
at the beginning of the period:........................................... $1.000000000
Value of same account* (excluding capital changes) at the end
of the seven-day period ending Dec. 31, 1997:............................. $1.000873532
</TABLE>

- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.

Calculation:

<TABLE>
<S> <C> <C>
Ending account value:...................... $1.000873532
Less beginning account value:.............. $1.000000000
Net change in account value:............... $ .000873532
Seven-day yield = $.000873532 x 365/7 = 4.55%
Effective yield** = [1 + .000873532] 365/7 -1 = 4.66%
</TABLE>

- --------------
** The effective yield assumes a year's compounding of the seven-day yield.

For the seven-day period ended December 31, 1997, the Fund's Class B share yield
was 3.82% and effective yield was 3.89%. The seven-day and effective yields are
calculated as follows:

Assumptions:

- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.

Calculation:

<TABLE>
<S> <C> <C>
Ending account value:...................... $1.000731785
Less beginning account value:.............. $1.000000000
Net change in account value:............... $ .000731785
Seven-day yield = $.000731785 x 365/7 = 3.82%
Effective yield** = [1 + .000731785] 365/7 -1 = 3.89%
</TABLE>

- --------------
** The effective yield assumes a year's compounding of the seven-day yield.

Statement of Additional Information Page 22
<PAGE>
AIM DOLLAR FUND

The Fund's investment results may also be calculated for longer periods in
accordance with the following method: by subtracting (a) the net asset value of
one share at the beginning of the period, from (b) the net asset value of all
shares an investor would own at the end of the period for the share held at the
beginning of the period (assuming reinvestment of all dividends and
distributions) and dividing by (c) the net asset value per share at the
beginning of the period. The resulting percentage indicates the positive or
negative rate of return that an investor would have earned from the reinvested
dividends and distributions and any changes in share price during the period.

TOTAL RETURN QUOTATIONS

The standard formula for calculating total return, as described in the
Prospectus, is as follows:

P(1+T)to the power of n=ERV

<TABLE>
<S> <C> <C>
Where P = a hypothetical initial payment of $1,000.
T = average annual total return (assuming the applicable maximum sales load is
deducted at the beginning of the 1, 5, or 10 year periods).
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000 payment at the end of the 1, 5,
or 10 year periods (or fractional portion of such period).
</TABLE>

The Fund's Standardized Returns for its Class A shares, stated as average
annualized total returns, at December 31, 1997, were as follows:

<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended Dec. 31, 1997......................................................................... [4.62%
Five years ended Dec. 31, 1997................................................................... 3.93%
Ten years ended Dec. 31, 1997.................................................................... 4.84%]
</TABLE>

The Fund's Standardized Returns for its Class B shares, which were first offered
on April 1, 1993, stated as average annualized total returns, were as follows:

<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended Dec. 31, 1997......................................................................... [(1.16)%
April 1, 1993 (commencement of operations) through Dec. 31, 1997................................. 2.87%]
</TABLE>

Standard total return quotes may be accompanied by total return figures
calculated by alternative methods. For example, average annual total return may
be calculated without assuming payment of the full sales load according to the
following formula:

P(1+U)to the power of n=ERV

<TABLE>
<S> <C> <C>
Where P = a hypothetical initial payment of $1,000.
U = average annual total return assuming payment of only a stated portion of, or
none of, the applicable maximum sales load at the beginning of the stated
period.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000 payment at the end of the
stated period.
</TABLE>

The Fund's non-standardized returns for its Class A shares, stated as average
annualized total returns, at December 31, 1997, were as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended Dec. 31, 1997..................................................................... [4.62%
Five years ended Dec. 31, 1997............................................................... 3.93%
Ten years ended Dec. 31, 1997................................................................ 4.84%]
</TABLE>

The Fund's non-standardized return for its Class B shares, stated as average
annualized total returns, at December 31, 1997, were as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended Dec. 31, 1997....................................................................... [3.84%
April 1, 1993 (commencement of operations) through Dec. 31, 1997............................... 3.24%]
</TABLE>

Statement of Additional Information Page 23
<PAGE>
AIM DOLLAR FUND

Cumulative total return across a stated period may be calculated as follows:

P(1+V)to the power of n=ERV

<TABLE>
<S> <C> <C>
Where P = a hypothetical initial payment of $1,000.
V = cumulative total return assuming payment of all of, a stated portion of, or none
of, the applicable maximum sales load at the beginning of stated period.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000 payment at the end of the
stated period.
</TABLE>

The Fund's non-standardized return for its Class A shares, stated as aggregate
total return, at December 31, 1997, was as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Sept. 16, 1985 (commencement of operations) through Dec. 31, 1997............................ [82.77%]
</TABLE>

The Fund's non-standardized return for its Class B shares, stated as aggregate
total return (reflecting deduction of the applicable contingent deferred sales
charge), at December 31, 1997, was as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 (commencement of operations) through Dec. 31, 1997............................. [14.37%]
</TABLE>

The Fund's non-standardized return for its Class B shares, stated as aggregate
total return (not reflecting deduction of the applicable contingent deferred
sales charge), at December 31, 1997, was as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 (commencement of operations) through Dec. 31, 1997............................. [16.37%]
</TABLE>

The Fund's investment results will vary from time to time depending upon market
conditions, the composition of the Fund's portfolio and operating expenses of
the Fund, so that current or past yield or total return figures should not be
considered representative of what an investment in the Fund may earn in any
future period. These factors and possible differences in the methods used in
calculating investment results should be considered when comparing the Fund's
investment results with those published for other investment companies and other
investment vehicles. Investment results also should be considered relative to
the risks associated with the investment objective and policies. The Fund's
investment results will be calculated separately for Class A and Class B shares.
The Fund will include performance data for both Class A and Class B shares of
the Fund in any advertisement or information including performance data for the
Fund.

Statement of Additional Information Page 24
<PAGE>
AIM DOLLAR FUND

PERFORMANCE INFORMATION

Total return and yield figures for the Fund are neither fixed nor guaranteed,
and the Fund's principal is not insured. Performance quotations reflect
historical information and should not be considered representative of the Fund's
performance for any period in the future. Performance is a function of a number
of factors which can be expected to fluctuate. The Fund may provide performance
information in reports, sales literature and advertisements. The Fund may also,
from time to time, quote information about the Fund published or aired by
publications or other media entities which contain articles or segments relating
to investment results or other data about the Fund. Such publications or media
entities may include the following, among others:

Advertising Age
Barron's
Best's Review
Broker World
Business Week
Changing Times
Christian Science Monitor
CNBC
CNN
Consumer Reports

Economist
EuroMoney
FACS of the Week
Financial Planning

Financial Product News

Financial Services Week
Financial World

Forbes
Fortune
Global Finance
Hartford Courant Inc.
Insurance Forum
Institutional Investor
Insurance Week
Investor's Daily
Journal of the American

Society of CLU & ChFC

Kiplinger Letter
Money

Mutual Fund Forecaster
Mutual Fund Magazine
Nation's Business
New York Times
PBS
Pension World
Pensions & Investments
Personal Investor
Philadelphia Inquirer
Smart Money
USA Today
U.S. News & World Report
Wall Street Journal
Washington Post

The Fund and AIM Distributors may from time to time, in advertisements, sales
literature and reports furnished to present or prospective shareholders, compare
the Fund with the following, or compare the Fund's performance to performance
data of similar mutual funds as published in the following, among others:

Bank Rate National Monitor Index
Bear Stearns Foreign Bond Index
Bond Buyer Index
CDA/Wiesenberger Investment Company Services
(data and mutual fund rankings and
comparisons)
CNBC/Financial News Composite Index
COFI
Consumer Price Index
Datastream
Donoghue's
Dow Jones Industrial Average
EAFE Index
First Boston High Yield Index
Fitch (publications)
Ibbotson Associates International Bond Index
International Bank for Reconstruction and
Development (publications)
International Finance Corporation Emerging
Markets Database
International Financial Statistics
Lehman Bond Indices
Lipper Analytical Data Services, Inc. (data and
mutual fund rankings and comparisons)

Micropal, Inc. (data and mutual fund rankings
and comparisons)

Moody's Investors Service (publications)
Morgan Stanley Capital International All
Country (AC) World Index
Morgan Stanley Capital International World
Indices
Morningstar, Inc. (data and mutual fund rankings
and comparisons)
NASDAQ
Organization for Economic Cooperation and
Development (publications)
Salomon Brothers Global Telecommunications
Index
Salomon Brothers World Government Bond
Index-Non-U.S.
Salomon Brothers World Government Bond Index
Standard & Poor's (publications)
Standard & Poor's 500 Composite Stock Price
Index
Stangar
Wilshire Associates
World Bank (publications and reports)
The World Bank Publication of Trends in
Developing Countries
Worldscope

Statement of Additional Information Page 25
<PAGE>
AIM DOLLAR FUND

The Fund may also compare its performance to rates on Certificates of Deposit
and other fixed rate investments such as the following:

10-year Treasuries
30-year Treasuries
30-day Treasury Bills

Information relating to foreign market performance, capitalization and
diversification is based on sources believed to be reliable but may be subject
to revision and has not been independently verified by the Fund or AIM
Distributors. Advertising for the Fund may from time to time include discussions
of general economic conditions and interest rates. Advertising for the Fund may
also include reference to the use of the Fund as part of an individual's overall
retirement investment program. From time to time, sales literature and/or
advertisements for the Fund may disclose (i) the largest holdings in the Fund's
portfolio, (ii) certain selling group members and/or (iii) certain institutional
shareholders.

From time to time, the Fund's sales literature and/or advertisements may discuss
generic topics pertaining to the mutual fund industry. This includes, but is not
limited to, literature addressing general information about mutual funds,
variable annuities, dollar-cost averaging, stocks, bonds, money markets,
certificates of deposit, retirement, retirement plans, asset allocation,
tax-free investing, college planning, and inflation.

Although performance data may be useful to prospective investors when comparing
a Fund's performance with other funds and other potential investments, investors
should note that the methods of computing performance of other potential
investments are not necessarily comparable to the methods employed by a Fund.

Statement of Additional Information Page 26
<PAGE>
AIM DOLLAR FUND

DESCRIPTION OF DEBT RATINGS

- --------------------------------------------------------------------------------

COMMERCIAL PAPER RATINGS
S&P. "A-1" and "A-2" are the two highest commercial paper rating categories:

A-1. This highest category indicates that the degree of safety regarding
timely payment is strong. Those issues determined to possess extremely
strong safety characteristics are denoted with a plus sign (+) designation.

A-2. Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated "A-1".

MOODY'S. "Prime-1" and "Prime-2" are the two highest commercial paper rating
categories.

Prime-1. Issuers (or supporting institutions) assigned this highest
rating have a superior ability for repayment of senior short-term debt
obligations. Prime-1 repayment ability will often be evidenced by many of
the following characteristics: leading market positions in well-established
industries; high rates of return on funds employed; conservative
capitalization structure with moderate reliance on debt and ample asset
protection; broad margins in earnings coverage of fixed financial charges
and high internal cash generation; and well-established access to a range of
financial markets and assured sources of alternate liquidity.

Prime-2. Issuers (or supporting institutions) assigned this rating have
a strong ability for repayment of senior short-term debt obligations. This
will normally be evidenced by many of the characteristics cited above but to
a lesser degree. Earnings trends and coverage ratios, while sound, may be
more subject to variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample alternate
liquidity is maintained.

BOND RATINGS
S&P: Its ratings for high quality bonds are as follows:

An obligation rated "AAA" has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.

An obligation rated "AA" differs from the highest rated obligations only
in a small degree. The obligor's capacity to meet its financial commitment
on the obligation is very strong.

MOODY'S: Its ratings for high quality bonds are as follows:

Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to
as "gilt edged." Interest payments are protected by a large or by an
exceptionally stable margin, and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized
are most unlikely to impair the fundamentally strong position of such
issues.

Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there may
be other elements present which make the long-term risk appear somewhat
larger than the Aaa securities.

NOTE RATINGS
S&P: The SP-1 rating denotes a very strong or strong capacity to pay
principal and interest. Those issues determined to possess overwhelming safety
characteristics will be given a plus (+) designation.

The SP-2 rating denotes a satisfactory capacity to pay principal and interest.

MOODY'S: The MIG 1 designation denotes best quality. There is strong
protection by established cash flows, superior liquidity support or demonstrated
broad-based access to the market for refinancing.

The MIG 2 designation denotes high quality. Margins of protection are ample
although not as large as in the preceding group.

Statement of Additional Information Page 27
<PAGE>
AIM DOLLAR FUND

FINANCIAL STATEMENTS

- --------------------------------------------------------------------------------

The audited financial statements of the Fund as of December 31, 1997 and for the
fiscal year then ended, and the unaudited financial statements as of June 30,
1998 and for the six months then ended, appear on the following pages.

Statement of Additional Information Page 28
<PAGE>

STATEMENT OF ADDITIONAL INFORMATION

ADVISOR CLASS SHARES OF

AIM DOLLAR FUND

(Series Portfolio of AIM Investment Portfolios)

11 Greenway Plaza

Suite 100

Houston, TX 77046-1173

(713) 626-1919

- --------------------------------------------------------------------------------

THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND

IT SHOULD BE READ IN CONJUCTION WITH A PROSPECTUS OF THE

ABOVE-NAMED FUND, A COPY OF WHICH MAY BE OBTAINED FREE

OF CHARGE FROM AUTHORIZED DEALERS OR BY WRITING

A I M DISTRIBUTORS, INC.

P.O. BOX 4739, HOUSTON TX 77210-4739

OR BY CALLING (800) 347-4246.

- --------------------------------------------------------------------------------

STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 8, 1998

RELATING TO THE AIM DOLLAR FUND PROSPECTUS,

DATED SEPTEMBER 8, 1998

- --------------------------------------------------------------------------------

[LOGO]

Statement of Additional Information Page 1
<PAGE>
- --------------------------------------------------------------------------------

TABLE OF CONTENTS

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Introduction............................................................................................................. 3
Investment Objective and Policies........................................................................................ 4
Investment Limitations................................................................................................... 6
Trustees and Executive Officers.......................................................................................... 8
Control Persons and Principal Holders of Securities...................................................................... 10
Management............................................................................................................... 11
Dividends and Taxes...................................................................................................... 12
How to Purchase and Redeem Shares........................................................................................ 13
Valuation of Fund Shares................................................................................................. 14
Execution of Portfolio Transactions...................................................................................... 15
Additional Information................................................................................................... 16
Investment Results....................................................................................................... 17
Description of Debt Ratings.............................................................................................. 21
Financial Statements..................................................................................................... 22
</TABLE>

Statement of Additional Information Page 2
<PAGE>
AIM DOLLAR FUND

INTRODUCTION

- --------------------------------------------------------------------------------

This Statement of Additional Information relates to the Advisor Class shares of
AIM Dollar Fund (the "Fund"). The Fund is a diversified series of AIM Investment
Portfolios (the "Trust"), a registered open-end management investment company
organized as a Delaware business trust.

The Trust is a series mutual fund. The rules and regulations of the United
States Securities and Exchange Commission (the "SEC") require all mutual funds
to furnish prospective investors certain information concerning the activities
of the fund being considered for investment. This information for the Fund is
included in a Prospectus dated September 8, 1998. Additional copies of the
Prospectuses and this Statement of Additional Information may be obtained
without charge by writing the principal distributor of the Fund's shares, A I M
Distributors, Inc. ("AIM Distributors"), P.O. Box 4739, Houston, TX 77210-4739
or by calling (800) 347-4246. Investors must receive a Prospectus before they
invest.

GENERAL INFORMATION ABOUT THE FUNDS

THE TRUST AND ITS SHARES

The Trust previously operated under the name AIM Investment Portfolios, Inc.,
which was organized as a Maryland corporation on July 13, 1981. The Trust was
reorganized on September 4, 1998 as a Delaware business trust, and is registered
with the SEC as a diversified open-end series management investment company. The
Trust currently consists of a single portfolio, the AIM Dollar Fund. The Fund
has three separate classes: Class A, Class B and Advisor Class shares. All
historical financial and other information contained in this Statement of
Additional Information for periods prior to September 4, 1998, is that of GT
Global Dollar Fund. (renamed AIM Dollar Fund).

This Statement of Additional Information relates solely to the Advisor Class
shares of the Fund.

Statement of Additional Information Page 3
<PAGE>
AIM DOLLAR FUND

INVESTMENT OBJECTIVE
AND POLICIES

- --------------------------------------------------------------------------------

CHANGES IN A SECURITY'S RATING

COMMERCIAL PAPER
Commercial paper consists of short-term promissory notes issued by large
corporations with a high quality rating to finance short-term credit needs.

REPURCHASE AGREEMENTS
A repurchase agreement is a transaction in which the Fund purchases a security
from a bank or recognized securities dealer and simultaneously commits to resell
that security to the bank or dealer, an agreed-upon price, date and market rate
of interest unrelated to coupon rate or maturity of the purchased security.
Although repurchase agreements carry certain risks not associated with direct
investments in securities, including possible decline in the market value of the
underlying securities and delays and costs to the Fund if the other party to the
repurchase agreement becomes bankrupt, the Fund intends to enter into repurchase
agreements only with banks and dealers believed by the Sub-adviser to present

- --------------------------------------------------------------------------------

INVESTMENT LIMITATIONS

- --------------------------------------------------------------------------------

Statement of Additional Information Page 6
<PAGE>
AIM DOLLAR FUND

The following investment policies of the Fund are not fundamental policies and
may be changed by vote of the Trust's Board of Trustees without shareholder
approval. The Fund may not:

(1) Invest more than 10% of its net assets in illiquid securities;

Statement of Additional Information Page 7
<PAGE>
AIM DOLLAR FUND

TRUSTEES AND EXECUTIVE
OFFICERS

- --------------------------------------------------------------------------------

The Trust's Trustees and Executive Officers are listed below. Unless otherwise
indicated, the address of each Executive Officer is 11 Greenway Plaza, Suite
100, Houston, Texas 77046.

<TABLE>
<CAPTION>
NAME, POSITION(S) WITH THE PRINCIPAL OCCUPATIONS AND BUSINESS
TRUST AND ADDRESS EXPERIENCE FOR PAST 5 YEARS
- -------------------------------- ------------------------------------------------------------------------
<S> <C>
William J. Guilfoyle*, 40 President, GT Global, Inc. since 1995; Director, GT Global since 1991;
Trustee, Chairman of the Board Senior Vice President and Director of Sales and Marketing, GT Global
and President from May 1992 to April 1995; Director, Liechtenstein Global Trust AG
50 California Street (holding company of the various international LGT companies) Advisory
San Francisco, CA 94111 Board from January 1996 to May 1998; Director, G.T. Global Insurance
Agency ("G.T. Insurance") since 1996; President and Chief Executive
Officer, G.T. Insurance since 1995; Senior Vice President and Director,
Sales and Marketing, G.T. Insurance from April 1995 to November 1995;
Senior Vice President, Retail Marketing, G.T. Insurance from 1992 to
1993; and Trustee, each of the other investment companies registered
under the 1940 Act that is sub-advised or sub-administered by the
Sub-adviser.

C. Derek Anderson, 57 President, Plantagenet Capital Management, LLC (an investment
Trustee partnership); Chief Executive Officer, Plantagenet Holdings, Ltd. (an
220 Sansome Street investment banking firm); Director, Anderson Capital Management, Inc.
Suite 400 since 1988; Director, PremiumWear, Inc. (formerly Munsingwear, Inc.)(a
San Francisco, CA 94104 casual apparel company); Director, "R" Homes, Inc. and various other
companies; and Trustee, each of the other investment companies
registered under the 1940 Act that is sub-advised or sub-administered by
the Sub-adviser.

Frank S. Bayley, 58 Partner, law firm of Baker & McKenzie; Director and Chairman, C.D.
Trustee Stimson Company (a private investment company); and Trustee, each of the
Two Embarcadero Center other investment companies registered under the 1940 Act that is
Suite 2400 sub-advised or sub- administered by the Sub-adviser.
San Francisco, CA 94111

Arthur C. Patterson, 54 Managing Partner, Accel Partners (a venture capital firm); Director,
Trustee Viasoft and PageMart, Inc. (both public software companies) and several
428 University Avenue other privately held software and communications companies; and Trustee,
Palo Alto, CA 94301 each of the other investment companies registered under the 1940 Act
that is sub-advised or sub-administered by the Sub-adviser.

Ruth H. Quigley, 63 Private investor; President from 1984 to 1986; and Quigley Friedlander &
Trustee Co., Inc. (a financial advisory services firm) from 1984 to 1986; and
1055 California Street Trustee, each of the other investment companies registered under the
San Francisco, CA 94108 1940 Act that is sub-advised or sub-administered by the Sub-adviser.
</TABLE>

- --------------

* Mr. Guilfoyle is an "interested person" of the Trust as defined by the 1940
Act due to his affiliation with the Sub-adviser.

Statement of Additional Information Page 8
<PAGE>
AIM DOLLAR FUND

<S> <C>
John J. Arthur+, 53 Director, Senior Vice President and Treasurer, A I M Advisors, Inc.;
Vice President Vice President and Treasurer, A I M Management Group Inc., A I M Capital
Management, Inc., A I M Distributors, Inc., A I M Fund Services, Inc.
and Fund Management Company.

Kenneth W. Chancey, 53 Senior Vice President -- Mutual Fund Accounting, the Sub-adviser since
Vice President and 1997; Vice President -- Mutual Fund Accounting, the Sub-adviser from
Principal Accounting Officer 1992 to 1997.
50 California Street
San Francisco, CA 94111

Melville B. Cox, 54 Vice President and Chief Compliance Officer, A I M Advisors, Inc., A I M
Vice President Capital Management, Inc., A I M Distributors, Inc., A I M Fund Services,
Inc. and Fund Management Company.

Gary T. Crum, 50 Director and President, A I M Capital Management, Inc.; Director and
Vice President Senior Vice President, A I M Management Group Inc. and A I M Advisors,
Inc.; and Director, A I M Distributors, Inc. and AMVESCAP PLC.

Robert H. Graham, 51 Director, President and Chief Executive Officer, A I M Management Group
Vice President Inc.; Director and President, A I M Advisors, Inc.; Director and Senior
Vice President, A I M Capital Management, Inc., A I M Distributors,
Inc., A I M Fund Services, Inc. and Fund Management Company; and
Director, AMVESCAP PLC.

Helge K. Lee, 52 Chief Legal and Compliance Officer -- North America, the Sub-adviser
Vice President and Secretary since October 1997; Secretary and Chief Legal and Compliance Officer,
50 California Street INVESCO (NY) Asset Management, Inc., INVESCO (NY), Inc., GT Global
San Francisco, CA 94111 Investor Services, Inc. and G.T. Insurance since August 1997; Secretary
and Chief Legal and Compliance Officer, GT Global from August 1997 to
April 1998; Executive Vice President of the Asset Management Division of
Liechtenstein Global Trust AG, from October 1996 to May 1998; Senior
Vice President, General Counsel and Secretary of INVESCO (NY) Asset
Management, Inc., INVESCO (NY), Inc., GT Global, GT Global Investor
Services, Inc. and G.T. Insurance from May 1994 to October 1996; and
Senior Vice President, General Counsel and Secretary of
Strong/Corneliuson Management, Inc. and Secretary of each of the Strong
Funds from October 1991 to May 1994.

Carol F. Relihan+, 43 Director, Senior Vice President, General Counsel and Secretary, A I M
Vice President Advisors, Inc.; Vice President, General Counsel and Secretary, A I M
Management Group Inc.; Director, Vice President and General Counsel,
Fund Management Company; Vice President and General Counsel, A I M Fund
Services, Inc.; and Vice President, A I M Capital Management, Inc. and A
I M Distributors, Inc.

Dana R. Sutton, 39 Vice President and Fund Controller, A I M Advisors, Inc.; and Assistant
Vice President and Assistant Vice President and Assistant Treasurer, Fund Management Company.
Treasurer
</TABLE>

- ------------------
+ Mr. Arthur and Ms. Relihan are married to each other.

Statement of Additional Information Page 9
<PAGE>
AIM DOLLAR FUND

The Board of Trustees has a Nominating and Audit Committee, comprised of Miss
Quigley and Messrs. Anderson, Bayley and Patterson, which is responsible for
nominating persons to serve as Trustees, reviewing audits of the Trust and
recommending firms to serve as independent auditors of the Trust. Each of the
Trustees and Officers of the Trust is also a Trustee and Officer of AIM
Investment Funds, AIM Floating Rate Fund, AIM Growth Series, AIM Series Trust,
AIM Eastern Europe Fund, GT Global Variable Investment Trust, GT Global Variable
Investment Series, Global High Income Portfolio, Growth Portfolio, Floating Rate
Portfolio and Global Investment Portfolio which also are registered investment
companies advised by AIM and sub-advised by the Sub-adviser or an affiliate
thereof. All of the Trust's Trustees also serve as directors or trustees of some
or all of the other investment companies managed, administered or advised by
AIM. All of the Trust's executive officers hold similar offices with some or all
of the other investment companies managed, administered or advised by AIM. Each
Trustee who is not a trustee, officer or employee of the Sub-adviser or any
affiliated company is paid aggregate fees of $5,000 a year, plus $300 per Fund
for each meeting of the Board attended, and reimbursed travel and other expenses
incurred in connection with attendance at such meetings. Other Trustees and
Officers receive no compensation or expense reimbursement from the Trust. For
the fiscal year ended December 31, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson
and Miss Quigley, who are not trustees, officers or employees of the Sub-adviser
or any affiliated company, received total compensation of $3,588, $3,716, $3,100
and $3,409, respectively, from the Trust for their services as Trustees. For the
fiscal year ended December 31, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and
Miss Quigley, who are not directors, officers or employees of the Sub-adviser or
any other affiliated company received total compensation of $103,654, $106,556,
$89,700 and $98,038, respectively, from the investment companies managed or
administered by AIM and sub-advised or sub-administered by the Sub-adviser for
which he or she serves as a Trustee. Fees and expenses disbursed to the Trustees
contained no accrued or payable pension or retirement benefits. As of June 26,
1998, the Officers and Trustees and their families as a group owned in the
aggregate beneficially or of record less than 1% of the outstanding shares of
the Fund.

- --------------------------------------------------------------------------------

CONTROL PERSONS AND
PRINCIPAL HOLDERS OF SECURITIES

- --------------------------------------------------------------------------------

- --------------

* The Trust has no knowledge as to whether all or any portion of the shares
owned of record are also owned beneficially.

Statement of Additional Information Page 10
<PAGE>
AIM DOLLAR FUND

MANAGEMENT

- --------------------------------------------------------------------------------

INVESTMENT MANAGEMENT AND ADMINISTRATION SERVICES

AIM serves as the Fund's investment manager and administrator under an
investment management and administration contract between the Trust and AIM
("Management Contract"). The Sub-adviser serves as the sub-adviser and sub-
administrator to the Fund under a sub-advisory and sub-administration contract
between AIM and the Sub-adviser ("Sub-Management Contract," and together with
the Management Contract, the "Management Contracts"). As investment managers and
administrators, AIM and the Sub-adviser make all investment decisions for the
Fund and administer the Fund's affairs. Among other things, AIM and the
Sub-adviser furnish the services and pay the compensation and travel expenses of
persons who perform the executive, administrative, clerical and bookkeeping
functions of the Trust and the Fund, and provide suitable office space,
necessary small office equipment and utilities.

DISTRIBUTION SERVICES

The Fund's Advisor Class are offered continuously through the Fund's principal
underwriter and distributor, AIM Distributors, on a "best efforts" basis
pursuant to a distribution contract between the Trust and AIM Distributors
without a front-end sales charge or a contingent deferred sales charge.

TRANSFER AGENCY AND ACCOUNTING AGENCY SERVICES

EXPENSES OF THE FUND

The Fund pays all expenses not assumed by AIM, the Sub-adviser, AIM Distributors
and other agents. These expenses include, in addition to the advisory,
administration, distribution, transfer agency, pricing and accounting agency and
brokerage fees discussed above, legal and audit expenses, custodian fees,
trustees' fees, organizational fees, fidelity bond and other insurance premiums,
taxes, extraordinary expenses and the expenses of reports and prospectuses sent
to existing investors. The allocation of general Trust expenses and expenses
shared among the Fund and other funds organized as series of the Trust are
allocated on a basis deemed fair and equitable, which may be based on the
relative net assets of the Fund or the nature of the services performed and
relative applicability to the Fund. Expenditures, including costs incurred in
connection with the purchase or sale of portfolio securities, which are
capitalized in accordance with generally accepted accounting principles
applicable to investment companies, are accounted for as capital items and not
as expenses.

Statement of Additional Information Page 11
<PAGE>
AIM DOLLAR FUND

DIVIDENDS AND TAXES

- --------------------------------------------------------------------------------

DAILY INCOME DIVIDENDS
Net investment income and any realized net short-term capital gain are
determined and declared as a dividend each day. Each such dividend is payable to
shareholders as of the close of business on that day. Orders to purchase Fund
shares are executed on the business day on which Federal Funds, i.e., monies
held on deposit at a Federal Reserve Bank, become available. Shares begin
accruing dividends on the day following the date of purchase. Shares are
entitled to the dividend declared on the day a redemption request is received by
the Transfer Agent. Dividends are automatically reinvested in Advisor Class
shares of the Fund on the last Business Day of the month, at net asset value,
unless a shareholder otherwise instructs the Transfer Agent in writing. A
shareholder that does so will be mailed a check in the amount of each dividend.
For the purpose of calculating dividends, daily net investment income of the
Fund consists of (a) all interest income accrued on investments (including any
discount or premium ratably accrued or amortized, respectively, to the date of
maturity or determined in such other manner the Fund chooses in accordance with
generally accepted accounting principles), (b) minus all accrued liabilities,
including interest, taxes and other expense items, and reserves for contingent
or undetermined liabilities, all determined in accordance with those principles,
(c) plus or minus all realized gains or losses on investments, if any.

Dividends from the Fund's investment company taxable income are taxable to its
shareholders as ordinary income. The Fund does not expect to receive any
dividend income from U.S. corporations, which means that no part of the
dividends from the Fund will be eligible for the dividends-received deduction
allowed to corporations. Dividends will be taxed for federal income tax purposes
in the same manner whether they are received in cash or reinvested in additional
Fund shares.

Statement of Additional Information Page 12
<PAGE>
AIM DOLLAR FUND

HOW TO PURCHASE AND REDEEM SHARES

- --------------------------------------------------------------------------------

Complete information concerning the method of exchanging shares of the Fund for
shares of the other AIM Funds is set forth in the Prospectus under the heading
"Exchange Privilege."

PROGRAMS AND SERVICES FOR SHAREHOLDERS

DIVIDEND ORDER

Statement of Additional Information Page 13
<PAGE>
AIM DOLLAR FUND

VALUATION OF FUND SHARES

- --------------------------------------------------------------------------------

The Board of Trustees is required to establish procedures designed to stabilize,
to the extent reasonably practicable, the Fund's price per share at $1.00, as
computed for the purpose of sales and redemptions. Such procedures include
review of the Fund's holdings by the Board of Trustees at such intervals as they
may deem appropriate, to determine whether the net asset value calculated by
using available market quotations or other reputable sources for the Fund
deviates from $1.00 per share and, if so, whether such deviation may result in
material dilution or is otherwise unfair to existing holders of the Fund's
shares. In the event the Board of Trustees determines that such a deviation
exists for the Fund, it will take such corrective action as the Board of
Trustees deems necessary and appropriate with respect to the Fund, including the
sale of portfolio instruments prior to maturity to realize capital gains or
losses or to shorten the average portfolio maturity; the withholding of
dividends; redemption of shares in kind; or the establishment of a net asset
value per share by using available market quotations.

The Fund intends to comply with any amendments made to Rule 2a-7 which may
require corresponding changes in the Fund's procedures which are designed to
stabilize the Fund's price per share at $1.00.

Statement of Additional Information Page 14
<PAGE>
AIM DOLLAR FUND

EXECUTION OF PORTFOLIO
TRANSACTIONS

- --------------------------------------------------------------------------------

Under a policy adopted by the Board and subject to the policy of obtaining the
best net results, the Sub-adviser may consider a broker/dealer's sale of the
shares of the Fund and the other funds for which AIM or the Sub-adviser serves
as investment manager and/or administrator in selecting broker/dealers for the
execution of portfolio transactions. This policy does not imply a commitment to
execute portfolio transactions through all broker/dealers that sell shares of
the Fund and such other funds.

Statement of Additional Information Page 15
<PAGE>
AIM DOLLAR FUND

ADDITIONAL INFORMATION

- --------------------------------------------------------------------------------

AIM was organized in 1976, and along with its subsidiaries, manages or advises
approximately 90 investment company portfolios encompassing a broad range of
investment objectives. AIM is a direct, wholly owned subsidiary of A I M
Management Group Inc. ("AIM Management"), a holding company that has been
engaged in the financial services business since 1976. AIM is the sole
shareholder of the Funds' principal underwriter, AIM Distributors. AIM
Management is an indirect wholly owned subsidiary of AMVESCAP PLC, 11 Devonshire
Square, London, EC2M 4YR, England. AMVESCAP PLC and its subsidiaries are an
independent investment management group that has a significant presence in the
institutional and retail segment of the investment management industry in North
America and Europe, and a growing presence in Asia.

INDEPENDENT ACCOUNTANTS

The Fund's independent accountants are ,
conducts annual audits of the Fund's financial
statements, assists in the preparation of the Fund's federal and state income
tax returns and consults with the Trust and the Fund as to matters of
accounting, regulatory filings, and federal and state income taxation.

SHAREHOLDER LIABILITY

NAME
Prior to May 29, 1998, the Fund operated under the name of GT Global Dollar
Fund.

Statement of Additional Information Page 16
<PAGE>
AIM DOLLAR FUND

INVESTMENT RESULTS

- --------------------------------------------------------------------------------

For the seven-day period ended December 31, 1997, the Fund's Class A share yield
was 4.55% and effective yield was 4.66%. The seven-day and effective yields are
calculated as follows:

Assumptions:

- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.

Calculation:

<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000873532
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000873532

Seven-day yield = $.000873532 x 365/7 = 4.55%
Effective yield** = [1 + .000873532] 365/7 -1 = 4.66%
</TABLE>

- --------------
** The effective yield assumes a year's compounding of the seven-day yield.

For the seven-day period ended December 31, 1997, the Fund's Advisor Class share
yield was 4.55% and effective yield was 4.66%. The seven-day and effective
yields are calculated as follows:

Assumptions:

- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.

Calculation:

<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000873375
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000873375

Seven-day yield = $.000873375 x 365/7 = 4.55%
Effective yield** = [1 + .000873375] 365/7 -1 = 4.66%
</TABLE>

- --------------
** The effective yield assumes a year's compounding of the seven-day yield.

Statement of Additional Information Page 17
<PAGE>
AIM DOLLAR FUND

TOTAL RETURN QUOTATIONS

The standard formula for calculating total return, as described in the
Prospectus, is as follows:

P(1+T)to the power of n=ERV

<TABLE>
<S> <C> <C> <C>
Where P = a hypothetical initial payment of $1,000.
T = average annual total return (assuming the applicable maximum sales load is
deducted at the beginning of the 1, 5, or 10 year periods).
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000 payment at the end of the 1, 5,
or 10 year periods (or fractional portion of such period).
</TABLE>

The Fund's standardized returns for its Class A shares, stated as average
annualized total returns, at December 31, 1997, were as follows:

<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended Dec. 31, 1997......................................................................... [4.62%
Five years ended Dec. 31, 1997................................................................... 3.93%
Ten years ended Dec. 31, 1997.................................................................... 4.84%]
</TABLE>

The Fund's standardized returns for its Advisor Class shares, stated as average
annualized total returns, were as follows:

<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended Dec. 31, 1997......................................................................... [4.61%
June 1, 1995 (commencement of operations) through Dec. 31, 1997.................................. 4.67%]
</TABLE>

P(1+U)to the power of n=ERV

<TABLE>
<S> <C> <C> <C>
Where P = a hypothetical initial payment of $1,000.
U = average annual total return assuming payment of only a stated portion of, or none
of, the applicable maximum sales load at the beginning of the stated period.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000 payment at the end of the stated
period.
</TABLE>

The Fund's non-standardized returns for its Class A shares, stated as average
annualized total returns, at December 31, 1997, were as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended Dec. 31, 1997....................................................................... [4.62%
Five years ended Dec. 31, 1997................................................................. 3.93%
Ten years ended Dec. 31, 1997.................................................................. 4.84%]
</TABLE>

The Fund's non-standardized return for its Advisor Class shares, stated as
average annualized total returns, at December 31, 1997, were as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended Dec. 31, 1997....................................................................... [4.61%
June 1, 1995 (commencement of operations) through Dec. 31, 1997................................ 4.67%]
</TABLE>

Statement of Additional Information Page 18
<PAGE>
AIM DOLLAR FUND

Cumulative total return across a stated period may be calculated as follows:

P(1+V)to the power of n=ERV

<TABLE>
<S> <C> <C> <C>
Where P = a hypothetical initial payment of $1,000.
V = cumulative total return assuming payment of all of, a stated portion of, or none
of, the applicable maximum sales load at the beginning of the stated period.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000 payment at the end of the stated
period.
</TABLE>

The Fund's non-standardized return for its Class A shares, stated as aggregate
total return, at December 31, 1997, was as follows:

The Fund's non-standardized return for its Advisor Class shares, stated as
aggregate total return, at December 31, 1997, was as follows:

<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
June 1, 1995 (commencement of operations) through Dec. 31, 1997.............................. [12.52%]
</TABLE>

PERFORMANCE INFORMATION

Advertising Age
Barron's
Best's Review
Broker World
Business Week
Changing Times
Christian Science Monitor
CNBC
CNN
Consumer Reports

Economist
EuroMoney
FACS of the Week
Financial Planning

Financial Product News

Financial Services Week
Financial World

Forbes
Fortune
Global Finance
Hartford Courant Inc.
Insurance Forum
Institutional Investor
Insurance Week
Investor's Daily
Journal of the American

Society of CLU & ChFC

Kiplinger Letter
Money

Statement of Additional Information Page 19
<PAGE>
AIM DOLLAR FUND

The Fund may also compare its performance to rates on Certificates of Deposit
and other fixed rate investments such as the following:

10-year Treasuries
30-year Treasuries
30-day Treasury Bills

Statement of Additional Information Page 20
<PAGE>
AIM DOLLAR FUND

DESCRIPTION OF DEBT RATINGS

- --------------------------------------------------------------------------------

COMMERCIAL PAPER RATINGS
S&P. "A-1" and "A-2" are the two highest commercial paper rating categories:

A-2. Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated "A-1".

MOODY'S. "Prime-1" and "Prime-2" are the two highest commercial paper rating
categories.

BOND RATINGS
S&P: Its ratings for high quality bonds are as follows:

An obligation rated "AAA" has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.

An obligation rated "AA" differs from the highest rated obligations only
in a small degree. The obligor's capacity to meet its financial commitment
on the obligation is very strong.

MOODY'S: Its ratings for high quality bonds are as follows:

The SP-2 rating denotes a satisfactory capacity to pay principal and interest.

MOODY'S: The MIG 1 designation denotes best quality. There is strong
protection by established cash flows, superior liquidity support or demonstrated
broad-based access to the market for refinancing.

The MIG 2 designation denotes high quality. Margins of protection are ample
although not as large as in the preceding group.

Statement of Additional Information Page 21
<PAGE>
AIM DOLLAR FUND

FINANCIAL STATEMENTS

- --------------------------------------------------------------------------------

Statement of Additional Information Page 22
<PAGE>

AIM INVESTMENT PORTFOLIOS, INC.
PART C: OTHER INFORMATION

ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS

(a) FINANCIAL STATEMENTS -- To be Filed.

(b) EXHIBITS REQUIRED BY PART C, ITEM 24 OF FORM N-1A.

<TABLE>
<S> <C>
(1) Agreement and Declaration of Trust -- To be Filed.
(2) By-Laws -- To be Filed.
(3) Not Applicable.
(4) To be Filed.
(5)(a) Form of Investment Management and Administration Contract -- To be Filed.
(5)(b) Form of Investment Sub-Advisory and Sub-Administration Contract -- To be
Filed.
(6)(a) Form of Distribution Agreement with respect to Class A shares -- To be
Filed.
(6)(b) Form of Distribution Agreement with respect to Class B shares -- To be
Filed.
(6)(c) Form of Distribution Agreement with respect to Advisor Class shares -- To
be Filed.
(7) Not Applicable.
(8)(a) Custodian Agreement between Registrant and State Street Bank and Trust
Company (1).
(8)(b) Letter Agreement Assigning Custodian Agreement -- To be Filed.
(9)(a) Transfer Agency Contract -- To be Filed.
(9)(b) Form of Fund Accounting and Pricing Agent Agreement -- Filed herewith.
(9)(c) Other material contracts:
</TABLE>

(i) Form of Selected Dealer Agreement (3).

(ii) Form of Bank Sales Contract (3).

(iii) Form of Shareholder Service Agreement (3).

(iv) Form of Bank Shareholder Service Agreement (3).

(v) Form of Service Agreement for Bank Trust Department and
for Broker -- To be Filed.

<TABLE>
<S> <C>
(10)(a) Opinion and Consent of Counsel -- To be Filed.
(10)(b) Opinion and Consent of Delaware Counsel -- To be Filed.
(11) Consent of Coopers & Lybrand L.L.P., Independent Accountants -- To be
Filed.
(12) Not Applicable.
(13) Not Applicable.
</TABLE>

C-1
<PAGE>

<TABLE>
<S> <C>
(14)(a) IRA Application (3).
(14)(b) SEP and SARSEP IRA Adoption Agreement (3).
(14)(c) Profit Sharing/Money Purchase Pension Plan (3).
(14)(d) 403(b) Plan (3).
(14)(e) SIMPLE IRA Application (3).
(14)(f) Roth IRA Application (3).
(15)(a) Form of Distribution Plan adopted pursuant to Rule 12b-1 with respect to
Class A shares (3).
(15)(b) Form of Distribution Plan adopted pursuant to Rule 12b-1 with respect to
Class B shares (3).
(16) Schedules of Computation of Performance Quotations relating to the Class A,
Class B and Advisor Class shares of the AIM Dollar Fund (1).
(17) Financial Data Schedule (2).
(18) Multiple Class Plan adopted pursuant to Rule 18f-3 -- Filed herewith.
</TABLE>

<TABLE>
<S> <C>
Other Exhibits:
(a) Power of Attorney for Helge K. Lee and Michael A. Silver for AIM Investment
Portfolios, Inc. (2).
</TABLE>

- ------------------------
(1) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 22 to the Registration Statement on Form N-1A,
filed on April 24, 1997.

(2) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 23 to the Registration Statement on Form N-1A,
filed on March 10, 1998.

(3) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 25 to the Registration Statement on Form N-1A,
filed on May 29, 1998.

ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE REGISTRANT

None.

ITEM 26. NUMBER OF HOLDERS OF SECURITIES

As of May 7, 1998:

<TABLE>
<CAPTION>
TITLE OF CLASS NUMBER OF RECORD HOLDERS
- -------------------------------------------------------------- ---------------------------
<S> <C>
Shares of Common Stock, $0.01 par value, of
AIM Dollar Fund Class A....................................... 6,425
AIM Dollar Fund Class B....................................... 4,155
AIM Dollar Fund Advisor Class................................. 257
</TABLE>

ITEM 27. INDEMNIFICATION

Article VII(g) of the Registrant's Articles of Incorporation provides for
indemnification of certain persons acting on behalf of the Registrant.

Insofar as indemnification for liabilities arising under the Securities Act
of 1933, as amended ("1933 Act"), may be permitted to Directors, Officers and
Controlling Persons by the Registrant's Articles of Incorporation, By-Laws, or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the 1933 Act, and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the Registrant of expenses incurred or paid by a Director, Officer or
Controlling Person of the Registrant in the

C-2
<PAGE>

successful defense of any action, suit or proceeding) is asserted by such
Director, Officer or Controlling Person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the 1933 Act and will be governed by the final
adjudication of such issues.

ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER AND SUB-ADVISER

See the material under the heading "Management" included in Part A
(Prospectus) of this Amendment and the material appearing under the headings
"Trustees and Executive Officers" and "Management" included in Part B (Statement
of Additional Information) of this Amendment. Information as to the Directors
and Officers of A I M Advisors, Inc. and INVESCO (NY), Inc. is included in
Schedule A and Schedule D of Part I of each entity's Form ADV (File No.
801-12313 and File No. 801-10254, respectively), filed with the Securities and
Exchange Commission, which are incorporated herein by reference thereto.

ITEM 29. PRINCIPAL UNDERWRITERS

(a) A I M Distributors, Inc. is also the principal underwriter for the
following other investment companies: AIM Advisor Funds, Inc. (which includes
five funds: AIM Advisor Flex Fund, AIM Advisor International Value Fund, AIM
Advisor Large Cap Value Fund, AIM Advisor Multiflex Fund and AIM Advisor Real
Estate Fund); AIM Equity Funds, Inc. (which includes six funds: AIM Aggressive
Growth Fund, AIM Blue Chip Fund, AIM Capital Development Fund, AIM Charter Fund,
AIM Constellation Fund and AIM Weingarten Fund); AIM Funds Group (which includes
nine funds: AIM Balanced Fund, AIM Global Utilities Fund, AIM High Yield Fund,
AIM Income Fund, AIM Intermediate Government Fund, AIM Money Market Fund, AIM
Municipal Bond Fund, AIM Select Growth Fund and AIM Value Fund); AIM
International Funds, Inc. (which includes six funds: AIM Asian Growth Fund, AIM
European Development Fund, AIM International Equity Fund, AIM Global Aggressive
Growth Fund, AIM Global Growth Fund and AIM Global Income Fund); AIM Investment
Securities Funds (which includes one fund: AIM Limited Maturity Treasury Fund);
AIM Summit Fund, Inc.; AIM Tax-Exempt Funds, Inc. (which includes four funds:
AIM High Income Municipal Fund, AIM Tax-Exempt Bond Fund of Connecticut, AIM
Tax-Exempt Cash Fund and AIM Tax-Free Intermediate Fund); AIM Variable Insurance
Funds, Inc. (which includes thirteen funds: AIM V.I. Aggressive Growth Fund, AIM
V.I. Balanced Fund, AIM V.I. Capital Appreciation Fund, AIM V.I. Capital
Development Fund, AIM V.I. Diversified Income Fund, AIM V.I. Global Utilities
Fund, AIM V.I. Government Securities Fund, AIM V.I. Growth Fund, AIM V.I. Growth
and Income Fund, AIM V.I. High Yield Fund, AIM V.I. International Equity Fund,
AIM V.I. Money Market Fund, AIM V.I. Value Fund); AIM Growth Series (which
includes eight funds: AIM Small Cap Equity Fund, AIM America Value Fund, AIM Mid
Cap Growth Fund, AIM Europe Growth Fund, AIM International Growth Fund, AIM
Japan Growth Fund, AIM New Pacific Growth Fund and AIM Worldwide Growth Fund);
AIM Investment Funds, Inc. (which includes thirteen funds: AIM Strategic Income
Fund, AIM Global High Income Fund, AIM Global Government Income Fund, AIM Global
Health Care Fund, AIM Global Growth & Income Fund, AIM Latin American Growth
Fund, AIM Developing Markets Fund, AIM Emerging Markets Fund, AIM Global
Telecommunications Fund, AIM Global Financial Services Fund, AIM Global
Infrastructure Fund, AIM Global Resources Fund and AIM Global Consumer Products
and Services Fund); AIM Series Trust (which includes one fund: AIM Global Trends
Fund); and GT Global Floating Rate Fund, Inc.

C-3
<PAGE>
(b) Directors and Officers of A I M Distributors, Inc.

The business address of each person listed is 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173.

<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES WITH
BUSINESS ADDRESS PRINCIPAL UNDERWRITER
- -------------------------------------- ------------------------------------------------------------------------
<S> <C>

Charles T. Bauer Chairman of the Board of Directors

Michael J. Cemo President & Director

Gary T. Crum Director

Robert H. Graham Senior Vice President & Director

William G. Littlepage Senior Vice President & Director

John J. Caldwell Senior Vice President

Marilyn M. Miller Senior Vice President

James L. Salners Senior Vice President

Gordon J. Sprague Senior Vice President

Michael C. Vessels Senior Vice President

B.J. Thompson First Vice President

James R. Anderson Vice President

John J. Arthur Vice President & Treasurer

Mary K. Coleman Vice President

Melville B. Cox Vice President & Chief Compliance Officer

Charles R. Dewey Vice President

Sidney M. Dilgren Vice President

Tony D. Green Vice President

William H. Kleh Vice President

Ofelia M. Mayo Vice President, General Counsel & Assistant Secretary

Terri L. Ransdell Vice President

Carol F. Relihan Vice President

Kamala C. Sachidanandan Vice President
</TABLE>

C-4
<PAGE>
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES WITH
BUSINESS ADDRESS PRINCIPAL UNDERWRITER
- -------------------------------------- ------------------------------------------------------------------------
<S> <C>
Frank V. Serebrin Vice President

Christopher T. Simutis Vice President

Robert D. Van Sant, Jr. Vice President

Gary K. Wendler Vice President

David E. Hessel Assistant Vice President, Assistant Treasurer & Controller

Kathleen J. Pflueger Secretary

Luke P. Beausoleil Assistant Vice President

Tisha B. Christopher Assistant Vice President

Glenda A. Dayton Assistant Vice President

Kathleen M. Douglas Assistant Vice President

Terri N. Fiedler Assistant Vice President

Mary E. Gentempo Assistant Vice President

Jeffrey L. Horne Assistant Vice President

Melissa E. Hudson Assistant Vice President

Jodie L. Johnson Assistant Vice President

Kathryn A. Jordan Assistant Vice President

Wayne W. LaPlante Assistant Vice President

Kim T. Lankford Assistant Vice President

Ivy B. McLemore Assistant Vice President

David B. O'Neil Assistant Vice President

Patricia M. Shyman Assistant Vice President

Nicholas D. White Assistant Vice President

Norman W. Woodson Assistant Vice President

Nancy L. Martin Assistant General Counsel & Assistant Secretary

Samuel D. Sirko Assistant General Counsel & Assistant Secretary

Stephen I. Winer Assistant Secretary
</TABLE>

C-5
<PAGE>
(c) None.

ITEM 30. LOCATION OF ACCOUNTS AND RECORDS

Accounts, books and other records required by Rules 31a-1 and 31a-2 under
the Investment Company Act of 1940, as amended, are maintained and held in the
offices of the Registrant and its sub-adviser, INVESCO (NY), Inc., 50 California
Street, 27th Floor, San Francisco, CA 94111.

Records covering shareholder accounts and portfolio transactions are also
maintained and kept by the Registrant's Transfer Agent, A I M Fund Services,
Inc., 11 Greenway Plaza, Suite 100, Houston, Texas 77046, and by the
Registrant's Custodian, State Street Bank and Trust Company, 225 Franklin
Street, Boston, MA 02110.

ITEM 31. MANAGEMENT SERVICES

Not applicable.

ITEM 32. UNDERTAKINGS

Not applicable.

C-6
<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, and
the Investment Company Act of 1940, as amended, the Registrant has duly caused
this Post-Effective Amendment to this Registration Statement to be signed on its
behalf by the undersigned, thereto duly authorized, in the City of San
Francisco, and the State of California, on the 6th day of July, 1998.

AIM INVESTMENT PORTFOLIOS, INC.

By: William J. Guilfoyle*
President

Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment has been signed below by the following persons in the
capacities indicated on the 6th day of July, 1998.

<TABLE>
<S> <C>
William J. Guilfoyle* President, Director and
Chairman of the Board
(Principal Executive Officer)

/s/ KENNETH W. CHANCEY Vice President and
- ------------------------------------------- Principal Accounting Officer
Kenneth W. Chancey

C. Derek Anderson* Director

Arthur C. Patterson* Director

Frank S. Bayley* Director

Ruth H. Quigley* Director

Robert G. Wade, Jr.* Director

*By: /s/ MICHAEL A. SILVER
- ------------------------------------------
Michael A. Silver
Attorney-in-Fact, pursuant to
Power of Attorney previously filed
</TABLE>

C-7

<PAGE>

FUND ACCOUNTING AND PRICING AGENT AGREEMENT

This Fund Accounting and Pricing Agent Agreement (the "Agreement") is made
as of May 29, 1998, by and between AIM Investment Portfolios (the "Company") and
INVESCO (NY), INC. ("INVESCO (NY)").

WHEREAS, the Company is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment company;

WHEREAS, the Company currently operates one mutual fund, which is organized
as a separate and distinct series consisting of shares of beneficial interest
(such existing fund and such funds as may hereafter be established being
referred to in this Agreement as the "Funds" and singly as a "Fund");

WHEREAS, the Company is part of a complex of investment companies that are
sub-advised and/or sub-administered by INVESCO (NY) and with which INVESCO (NY)
has entered into Fund Accounting and Pricing Agent Agreements (the "INVESCO (NY)
Funds");

WHEREAS, the Company desires to retain INVESCO (NY) to act as its
accounting and pricing agent, and INVESCO (NY) is willing to act in such
capacities.

NOW, THEREFORE, in consideration of the foregoing and the terms and
conditions hereinafter set forth, the Company and INVESCO (NY) hereby agree as
follows:

SECTION 1. APPOINTMENT. The Company hereby appoints INVESCO (NY) to
act as the accounting and pricing agent for each Fund for the period and on the
terms and conditions set forth in this Agreement. INVESCO (NY) hereby accepts
such appointment and agrees to render the services set forth for the
compensation herein provided.

SECTION 2. DEFINITIONS. As used in this Agreement and in addition to
the terms defined elsewhere herein, the following terms shall have the meanings
assigned to them in this Section:

(a) "Authorized Person" means any officer of the Company
and any other person, whether or not any such person is an officer or
employee of the Company, duly authorized by the Board of Trustees (the
"Board"), the President or any Vice President of the Fund to give Oral
and/or Written Instructions on behalf of the Company or any Fund.

(b) "Commission" means the Securities and Exchange
Commission.

<PAGE>

(d) "Governing Documents" means the Articles of
Incorporation, By-Laws and other applicable charter documents of the
Company, all as they may be amended from time to time.

(e) "Oral Instruction" means oral instructions actually
received by INVESCO (NY) from an Authorized Person or from a person
reasonably believed by INVESCO (NY) to be an Authorized Person, provided
that, any Oral Instruction shall be promptly confirmed by Written
Instructions.

(f) "Prospectus" means the current prospectus and statement
of additional information of a Fund, taken together.

(g) "Shares" means shares of beneficial interest of any of
the Funds.

(h) "Shareholder" means any owner of Shares.

(i) "Written Instructions" means written instructions
delivered by hand, mail, tested telegram or telex, cable or facsimile
sending device received by INVESCO (NY) and signed by an Authorized Person.

SECTION 3. COMPLIANCE WITH LAWS, ETC. In performing its
responsibilities hereunder, INVESCO (NY) shall comply with all terms and
provisions of the Governing Documents, the Prospectus and all applicable state
and federal laws including, without limitation, the 1940 Act and the rules and
regulations promulgated by the Commission thereunder.

SECTION 4. SERVICES. In consideration of the compensation payable
hereunder and subject to the supervision and control of the Company's Boards,
INVESCO (NY) shall provide the following services to the Funds:

(a) PRICING AGENT. As pricing agent, INVESCO (NY) shall:

(1) Obtain security market quotes from services approved by the
investment manager of the Funds or, if such quotes are unavailable,
then obtain such prices from the investment manager of the Funds or
from such sources as the investment manager may direct, and, in either
case, calculate the market value of the Funds' investments; and

(2) Value the assets of the Funds and compute the net asset
value per Share of the Funds at such dates and times and in the manner
specified in the then currently effective Prospectus and transmit to
the Funds' investment manager.

(b) ACCOUNTING AGENT. As fund accounting agent, INVESCO (NY) shall:

- 2 -
<PAGE>

(1) Calculate the net income of each Fund;

(2) Calculate capital gains or losses for each Fund from the
sale or disposition of assets, if any;

(3) Maintain the general ledger and other accounts, books and
financial records of the Company, as required under Section 31(a) of
the 1940 Act and the rules promulgated by the Commission thereunder in
connection with the services provided by INVESCO (NY);

(4) Perform the following functions on a daily basis:

(A) journalize each Fund's investment, capital share and
income and expense activities;

(B) reconcile cash and investment balances of each Fund
with the Custodian and provide the Funds' investment manager with
the beginning cash balance available for investment purposes and
update the cash availability throughout the day as required by
the investment manager;

(C) verify investment buy/sell trade tickets received from
a Fund's investment manager and transmit trades to a Fund's
Custodian for proper settlement;

(D) maintain individual ledgers for investment securities;

(E) maintain historical tax lots for investment securities;

(F) calculate various contractual expenses (e.g., advisory
and custody fees);

(G) post to and prepare the Funds' statement of assets and
liabilities and statement of operations; and

(H) monitor expense accruals and notify an Authorized
Person of any proposed adjustments;

(5) Receive and act upon notices, Oral and Written Instructions,
certificates, instruments or other communications from a Fund's
shareholder servicing and transfer agent;

(6) Assist in the preparation of financial statements
semiannually

- 3 -
<PAGE>

which will include the following items:

(A) schedule of investments;

(B) statement of assets and liabilities;

(D) changes in net assets;

(E) cash statement; and

(F) schedule of capital gains and losses;

(7) Prepare monthly security transaction listings;

(8) Prepare quarterly broker security transactions summaries;
and

(9) At the reasonable request of the Company, assist in the
preparation of various reports or other financial documents required
by federal, state and other appropriate laws and regulations.

SECTION 5. COMPENSATION. As compensation for the services rendered
by INVESCO (NY) hereunder during the term of the Agreement, each Fund shall pay
to INVESCO (NY) monthly such fees as shall be agreed to from time to time by the
Company and INVESCO (NY), in writing and attached hereto as Schedule A. In
addition, as may be agreed to from time to time in writing by the Company and
INVESCO (NY), each Fund shall reimburse INVESCO (NY) for certain expenses that
it incurs in rendering services with respect to that Fund under this Agreement.

SECTION 6. RELIANCE BY INVESCO (NY) ON INSTRUCTIONS. Unless
otherwise provided in this Agreement, INVESCO (NY) shall act only upon Oral or
Written Instructions. INVESCO (NY) shall be entitled to rely upon any such
Instructions actually received by it under this Agreement. The Company agrees
that INVESCO (NY) shall incur no liability to the Company or any of the Funds in
acting upon Oral or Written Instructions given to INVESCO (NY) hereunder,
provided that, such Instructions reasonably appear to have been received from an
Authorized Person.

SECTION 7. COOPERATION WITH AGENTS OF THE COMPANY. INVESCO (NY)
shall cooperate with the Company's agents and employees, including, without
limitation, their independent accountants, and shall take all reasonable action
in the performance of its obligations under this Agreement to assure that all
necessary information is made available to such agents to the extent necessary
in the performance of their duties to the Company.

- 4 -
<PAGE>

SECTION 8. CONFIDENTIALITY. INVESCO (NY), on behalf of itself and
its employees, agrees to treat confidentially all records and other information
relating to the Company and the Funds except when requested to divulge such
information by duly constituted authorities provided that notification and prior
approval is obtained from the Company, which approval shall not be unreasonably
withheld and may not be withheld if INVESCO (NY), in its judgment, may be
subject to civil or criminal contempt proceedings for failure to comply.

SECTION 9. STANDARD OF CARE. In the performance of its
responsibilities hereunder, INVESCO (NY) shall exercise care and diligence in
the performance of its duties and act in good faith and use its best efforts to
ensure the accuracy and completeness of all services under this Agreement. In
performing services hereunder, INVESCO (NY):

(a) shall be under no duty to take any action on behalf of the
Company or the Funds except as specifically set forth herein or as may be
specifically agreed to by INVESCO (NY) in writing, and in computing the net
asset value per Share of a Fund, INVESCO (NY) may rely upon any information
furnished to it including, without limitation, information (1) as to the
accrual of liabilities of a Fund and as to liabilities of a Fund not
appearing on the books of account kept by INVESCO (NY), (2) as to the
existence, status and proper treatment of reserves, if any, authorized by a
Fund, (3) as to the sources of quotations to be used in computing net asset
value, (4) as to the fair value to be assigned to any securities or other
property for which price quotations are not readily available and (5) as to
the sources of information with respect to "corporate actions" affecting
portfolio securities of a Fund (information as to "corporate actions" shall
include information as to dividends, distributions, interest payments,
prepayments, stock splits, stock dividends, rights offerings, conversions,
exchanges, recapitalizations, mergers, redemptions, calls, maturity dates
and similar actions, including ex-dividend and record dates and the amounts
and terms thereof);

(b) shall be responsible and liable for all losses, damages and
costs (including reasonable attorneys' fees) incurred by the Company or any
Fund which is due to or caused by INVESCO (NY)'s negligence in the
performance of its duties under this Agreement or for INVESCO (NY)'s
negligent failure to perform such duties as are specifically assumed by
INVESCO (NY) in this Agreement, provided that, to the extend that duties,
obligations and responsibilities are not expressly set forth in this
Agreement, INVESCO (NY) shall not be liable for any act or omission that
does not constitute willful misfeasance, bad faith or negligence on the
part of INVESCO (NY) or reckless disregard by INVESCO (NY) of such duties,
obligations and responsibilities; and

(c) without limiting the generality of the foregoing, INVESCO
(NY) shall not, in connection with INVESCO (NY)'s duties under this
Agreement, be under any duty or obligation to inquire into and shall not be
liable for or in respect of:

(1) the validity or invalidity or authority or lack of
authority of any Oral or Written Instruction, notice or other
instrument which conforms

- 5 -
<PAGE>

to the applicable requirements of this Agreement, if any and that
INVESCO (NY) reasonably believes to be genuine; and

(2) delays or errors or loss of data occurring by reason of
circumstances beyond INVESCO (NY)'s control including, without
limitation, acts of civil or military authorities, national
emergencies, labor difficulties, fire, mechanical breakdown,
denial of access, earthquake, flood or catastrophe, acts of God,
insurrection, war, riots, or failure of the mails,
transportation, communication or power supply.

Notwithstanding any other provisions of this Agreement, the following provisions
shall apply with respect to INVESCO (NY)'s computation of a Fund's net asset
value: INVESCO (NY) shall be held to the exercise of reasonable care in
computing and determining net asset value as provided in Section 4(a), above,
but shall not be held accountable or liable for any losses, damages or expenses
of a Fund or any Shareholder or former Shareholder may incur arising from or
based upon errors or delays in the determination of such net asset value unless
such error or delay was due to INVESCO (NY)'s negligence or willful misfeasance
in the computation and determination of such net asset value. The parties
hereto acknowledge, however, that INVESCO (NY) causing an error or delay in the
determination of net asset value may, but does not in an of itself, constitute
negligence or willful misfeasance. In no event shall INVESCO (NY) be liable or
responsible to the Company or a Fund or any other party for any error or delay
which continued or was undetected after the date of an audit of the Company or
any Fund performed by the certified public accountants employed by the Company
if, in the exercise of reasonable care in accordance with generally accepted
accounting principles, such accountants should have become aware of such error
or delay in the course of performing such audit. INVESCO (NY)'s liability for
any such negligence or willful misfeasance which results in an error in
determination of such net asset value be limited to the direct out-of-pocket
loss a Fund and/or any Shareholder or former Shareholder shall actually incur.

Without limiting the generality of the foregoing, INVESCO (NY) shall
not be held accountable or liable to a Fund a Shareholder or former Shareholder
or any other person for any delays or losses, damages or expenses any of them
may suffer or incur resulting from (1) INVESCO (NY)'s failure to receive timely
and suitable notification concerning quotations, corporate actions or similar
matters relating to or affecting portfolio securities of a Fund or (2) any
errors in the computation of a net asset value based upon or arising out of
quotations or information as to corporate actions if received by INVESCO (NY)
from a source that INVESCO (NY) was authorized to rely upon. Nevertheless,
INVESCO (NY) will use its best judgment in determining whether to verify through
other sources any information that it has received as to quotations or corporate
actions if INVESCO (NY) has reason to believe that any such information is
incorrect.

SECTION 10. RECEIPT OF ADVICE. If INVESCO (NY) is in doubt as to any
action to be taken or omitted by it, INVESCO (NY) may request, and shall be
entitled to rely upon, directions and advice from the Company, including Oral or
Written Instructions where

- 6 -
<PAGE>

appropriate, or from counsel of its own choosing (who may also be counsel for
the Company or any Fund), with respect to any question of law. In case of
conflict between directions, advice or Oral and Written Instructions received by
INVESCO (NY) pursuant to this Section, INVESCO (NY) shall be entitled to rely on
and follow the advice received from counsel as described above. INVESCO (NY)
shall be protected in any action or in action that it takes in reliance on any
directions, advice or Oral or Written Instructions received pursuant to this
Section that INVESCO (NY), after the receipt of the same, in good faith believes
to be consistent with such directions, advice or Oral or Written Instructions,
as the case may be. Notwithstanding the foregoing, nothing in this Section
shall be construed as imposing on INVESCO (NY) any obligation to seek such
directions, advice or Oral or Written Instruction, or to act in accordance with
them when received, unless the same is a condition to INVESCO (NY)'s properly
taking or omitting to take such action under the terms of this Agreement.

SECTION 11. INDEMNIFICATION OF INVESCO (NY). The Company agrees to
indemnify and hold harmless INVESCO (NY) and its officers, directors, employees,
nominees and subcontractors, if any, from all taxes, charges, expenses,
assessments, claims and liabilities, including, without limitation, liabilities
arising under the 1940 Act, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, the Commodities Exchange Act and
any state or foreign securities or blue sky laws, and expenses, including,
without limitation, reasonable attorneys' fees and disbursements, arising
directly or indirectly from any action or thing that INVESCO (NY) takes or omits
to take or do:

(a) at the request or on the direction of or in reliance upon
the advice of the Company;

(b) upon Oral or Written Instructions; or

provided that, INVESCO (NY) shall not be indemnified against any liability to
the Company or the Funds, or any expenses incident thereto, arising out of
INVESCO (NY)'s own willful misfeasance, bad faith or negligence or reckless
disregard of its duties in connection with the performance of its duties and
obligations specifically described in this Agreement.

SECTION 12. INDEMNIFICATION OF THE COMPANY. INVESCO (NY) agrees to
indemnify and hold harmless the Company and its officers, trustees, directors
and employees, from all taxes, charges, expenses, assessments, claims and
liabilities, including, without limitation, liabilities arising under the 1940
Act, the Securities Act of 1933, as amended, the Securities Exchange Act of
1934, as amended, the Commodities Exchange Act and any state or foreign
securities or blue sky laws, and expenses, including, without limitation,
reasonable attorneys' fees and disbursements, arising directly or indirectly
from any action or omission of INVESCO (NY) that does not meet the standard of
care to which INVESCO (NY) is subject under Section 9, above.

- 7 -
<PAGE>

SECTION 13. LIMITATION OF LIABILITY OF SHAREHOLDERS AND TRUSTEES OF
THE COMPANY. It is expressly agreed that the obligations of the Company
hereunder shall not be binding upon any of the shareholders, trustees,
directors, officers, nominees, agents or employees of the Company personally,
but shall only bind the assets and property of the applicable Funds, as provided
in the Governing Documents. The execution and delivery of this Agreement has
been authorized by the Board of the Company, and this Agreement has been
executed and delivered by an authorized officer of the Company acting as such,
and neither such authorization by the Board nor such execution and delivery by
such officer shall be deemed to have been made by any of them individually or to
impose any liability on any of them personally, but shall bind only the assets
and property of the applicable Fund as provided in the Governing Documents.

SECTION 14. DURATION AND TERMINATION. This Agreement shall continue
with respect to the Company and each Fund until termination with respect to the
Company, or with respect to one or more Funds, is effected by the Company or
INVESCO (NY) upon sixty days' prior written notice to the other. In the event
of the "assignment" of this Agreement within the meaning of the 1940 Act, this
Agreement shall terminate automatically.

SECTION 15. NOTICES. All notices and other communications hereunder,
including Written Instructions, shall be in writing or by confirming telegram,
cable, telex or facsimile sending device. Notices with respect to a party shall
be directed to such address as may from time to time be designated by that party
to the other.

SECTION 16. FURTHER ACTIONS. The Company and INVESCO (NY) agree to
perform such further acts and to execute such further documents as may be
necessary or appropriate to effect the purposes of this Agreement.

SECTION 17. AMENDMENTS. This Agreement, or any part thereof, may be
amended only by an instrument in writing signed by the Company and INVESCO (NY).

SECTION 18. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together constitute one and the same instrument.

SECTION 19. SHAREHOLDER LIABILITY. It is expressly agreed that the
obligations of the Company hereunder shall not be binding upon any of the
Trustees, Shareholders, nominees, officers, agents or employees of the Company
personally, but shall only bind the assets and property of the Funds, as
provided in the Company's Agreement and Declaration of Trust. The execution and
delivery of this Agreement has been authorized by the Trustees of the Company
and this Agreement has been executed and delivered by an authorized officer of
the Company acting as such; neither such authorization by such Trustees nor such
execution and delivery by such officer shall be deemed to have been made by any
of them individually or to impose any liability on any of them personally, but
shall bind only the assets

- 8 -
<PAGE>

and property of the Funds, as provided in the Company's Agreement and
Declaration of Trust.

SECTION 20. MISCELLANEOUS. This Agreement embodies the entire
agreement and understanding between the Company and INVESCO (NY) and supersedes
all prior agreements and understandings relating to the subject matter hereof,
provided that the Company and INVESCO (NY) may embody in one or more separate
documents their agreement or agreements with respect to such matters that this
Agreement provides may be later agreed to by and between the Company and INVESCO
(NY) from time to time. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement shall be governed by and construed in accordance with California law.
If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement shall not
be affected thereby. This Agreement shall be binding upon and shall inure to
the benefit of the Company and INVESCO (NY) and their respective successors.

IN WITNESS WHEREOF, the Company and INVESCO (NY) have caused this
Agreement to be executed by their officers designated below as of this day,
month and year first above written.

AIM INVESTMENT PORTFOLIOS

By:
----------------------------

Attest:
-----------------------

INVESCO (NY), INC.

By:
----------------------------

Attest:
-----------------------

- 9 -
<PAGE>

SCHEDULE A

FUND ACCOUNTING AND PRICING AGENT FEES

The Fund shall pay a Fee to INVESCO (NY) determined as a percentage of the
Fund's net assets. The annualized rate at which the fee is paid (the Fee Rate)
and the Fee shall be calculated as set forth below:

- - An ASSET MULTIPLIER is determined by multiplying .0003 times the first $5
billion in average net assets of the INVESCO (NY) Funds plus .0002 times the
net assets over $5 billion.

- - The FEE RATE is determined by dividing the Asset Multiplier by the net assets
of the INVESCO (NY) Funds.

- - The MONTHLY FEE is determined then by multiplying the average daily Fee Rate
by the number of days in the month and by the Fund's average daily net assets
then dividing by 365/or 366

Example: For Fund X having $100 million in average net assets during December
1997, in which the INVESCO (NY) Funds have average net assets of $8 billion:

Asset Multiplier = (.0003) ($5 billion) + (.0002) ($3 billion) = $2.1
million

Fee Rate = $2.1 million = .0002625
------------
$8 billion

Monthly Fee = ( 31 ) (.0002625) ($100 million) = $2,229.45
-------
( 365 )

- 10 -

<PAGE>

MULTIPLE CLASS PLAN
OF
AIM INVESTMENT FUNDS
AIM INVESTMENT PORTFOLIOS
AIM GROWTH SERIES
AIM SERIES TRUST

1. This Multiple Class Plan ("Plan") adopted in accordance with Rule 18f-3
under the Act shall govern the terms and conditions under which the Funds
may issue separate Classes of Shares representing interests in one or more
Portfolios of each Fund.

2. DEFINITIONS. As used herein, the terms set forth below shall have the
meanings ascribed to them below.

a. ACT - Investment Company Act of 1940, as amended.

b. ADVISOR CLASS SHARES - shall mean those Shares of a Fund designated as
Advisor Class Shares in the Fund's organizing documents.

c. CDSC - contingent deferred sales charge.

d. CDSC PERIOD - the period of years following acquisition of Shares
during which such Shares may be assessed a CDSC upon redemption.

e. CLASS - a class of Shares of a Fund representing an interest in a
Portfolio.

f. CLASS A SHARES - shall mean those Shares designated as Class A Shares
in the Fund's organizing documents, as well as those Shares deemed to
be Class A Shares for purposes of this Plan.

g. CLASS B SHARES - shall mean those Shares designated as Class B Shares
in the Fund's organizing documents.

h. CLASS C SHARES - shall mean those Shares designated as Class C Shares
in the Fund's organizing documents, as well as those Shares deemed to
be Class C Shares for purposes of this Plan. Class C Shares may not
be available for each Fund.

i. DIRECTORS - the directors or trustees of a Fund.

j. DISTRIBUTION EXPENSES - expenses incurred in activities which are
primarily intended to result in the distribution and sale of Shares as
defined in a Plan of Distribution and/or agreements relating thereto.

k. DISTRIBUTION FEE - a fee paid by a Fund to the Distributor to
compensate the Distributor for Distribution Expenses.

<PAGE>

l. DISTRIBUTOR - A I M Distributors, Inc. or Fund Management Company, as
applicable.

m. FUND - each of AIM Investment Funds, AIM Investment Portfolios, AIM
Growth Series, and AIM Series Trust.

n. PLAN OF DISTRIBUTION - any plan adopted under Rule 12b-1 under the Act
with respect to payment of a Distribution Fee.

o. PORTFOLIO - a series of the Shares of a Fund constituting a separate
investment portfolio of the Fund.

p. SERVICE FEE - a fee paid to financial intermediaries for the ongoing
provision of personal services to Fund shareholders and/or the
maintenance of shareholder accounts.

q. SHARE - a share of common stock or of beneficial interest in a Fund,
as applicable.

3. ALLOCATION OF INCOME AND EXPENSES.

a. DISTRIBUTION AND SERVICE FEES - Each Class shall bear directly any and
all Distribution Fees and/or Service Fees payable by such Class
pursuant to a Plan of Distribution adopted by the Fund with respect to
such Class.

b. ALLOCATION OF OTHER EXPENSES - Each Class shall bear proportionately
all other expenses incurred by a Fund based on the relative net assets
attributable to each such Class.

c. ALLOCATION OF INCOME, GAINS, AND LOSSES - Except to the extent
provided in the following sentence, each Portfolio will allocate
income and realized and unrealized capital gains and losses to a Class
based on the relative net assets of each Class. Notwithstanding the
foregoing, each Portfolio that declares dividends on a daily basis
will allocate income on the basis of settled shares.

d. WAIVER AND REIMBURSEMENT OF EXPENSES - A Portfolio's adviser,
underwriter, or any other provider of services to the Portfolio may
waive or reimburse the expenses of a particular Class or Classes.

4. DISTRIBUTION AND SERVICING ARRANGEMENTS. The distribution and servicing
arrangements identified below will apply for the following Classes offered
by a Fund with respect to a Portfolio. The provisions of the Fund's
prospectus describing the distribution and servicing arrangements in detail
are incorporated herein by this reference.

a. CLASS A SHARES. Class A Shares shall be offered at net asset value
plus a front-end sales charge as approved from time to time by the
Directors and set forth in the Fund's prospectus, which may be reduced
or eliminated for certain money market fund shares, for larger
purchases, under a combined purchase privilege, under a right of
accumulation, under a letter of intent or for certain categories of
purchasers as permitted by Rule 22(d)

<PAGE>

of the Act and as set forth in the Fund's prospectus. Class A Shares
that are not subject to a front-end sales charge as a result of the
foregoing shall be subject to a CDSC for the CDSC Period set forth in
Section 5(a) of this Plan if so provided in the Fund's prospectus. The
offering price of Shares subject to a front-end sales charge shall be
computed in accordance with Rule 22c-1 and Section 22(d) of the Act
and the rules and regulations thereunder. Class A Shares shall be
subject to ongoing Service Fees and/or Distribution Fees approved from
time to time by the Directors and set forth in the Fund's prospectus.

b. CLASS B SHARES. Class B Shares shall be (i) offered at net asset
value, (ii) subject to a CDSC for the CDSC Period set forth in Section
5(b), (iii) subject to ongoing Service Fees and Distribution Fees
approved from time to time by the Directors and set forth in the
Fund's prospectus, and (iv) to the extent provided for in the Fund's
prospectus, converted to Class A Shares eight years from the end of
the calendar month in which the shareholder's order to purchase was
accepted as set forth in the Fund's prospectus, except that Class B
Shares of AIM Series Trust which were acquired prior to June 1, 1998
shall convert to Class A Shares as of the close of business on the
last business day of the month in which the seventh anniversary of the
initial issuance of such Class B Shares occurs.

c. CLASS C SHARES. Class C Shares shall be (i) offered at net asset
value, (ii) subject to a CDSC for the CDSC Period set forth in Section
5(c), and (iii) subject to ongoing service Fees and Distribution Fees
approved from time to time by the Directors and set forth in the
Fund's prospectus.

d. ADVISOR CLASS SHARES. Advisor Class Shares shall be (i) offered at net
asset value and (ii) offered only to certain categories of investors
as approved from time to time by the Trustees and as set forth in the
Fund's prospectus.

5. CDSC. A CDSC shall be imposed upon redemptions of Class A Shares that do
not incur a front-end sales charge and of Class B Shares and Class C Shares
as follows:

a. CLASS A SHARES. The CDSC Period for Class A Shares shall be the period
set forth in the Fund's prospectus. The CDSC Rate shall be as set
forth in the Fund's prospectus, the relevant portions of which are
incorporated herein by this reference. No CDSC shall be imposed on
Class A Shares unless so provided in a Fund's prospectus.

b. CLASS B SHARES. The CDSC Period for the Class B Shares shall be six
years. The CDSC Rate for the Class B Shares shall be as set forth in
the Fund's prospectus, the relevant portions of which are incorporated
herein by this reference.

c. CLASS C SHARES. The CDSC Period for the Class C Shares shall be one
year. The CDSC Rate for the Class C Shares shall be as set forth in
the Fund's prospectus, the relevant portions of which are incorporated
herein by reference.

<PAGE>

d. METHOD OF CALCULATION. The CDSC shall be assessed on an amount equal
to the lesser of the then current market value or the cost of the
Shares being redeemed. No CDSC shall be imposed on increases in the
net asset value of the Shares being redeemed above the initial
purchase price. No CDSC shall be assessed on Shares derived from
reinvestment of dividends or capital gains distributions. The order in
which Shares are to be redeemed when not all of such Shares would be
subject to a CDSC shall be determined by the Distributor in accordance
with the provisions of Rule 6c-10 under the Act.

e. WAIVER. The Distributor may in its discretion waive a CDSC otherwise
due upon the redemption of Shares and disclosed in the Fund's
prospectus or statement of additional information and, for the Class A
Shares, as allowed under Rule 6c-10 under the Act.

6. EXCHANGE PRIVILEGES. Exchanges of Shares shall be permitted as follows:

a. Class A Shares may be exchanged for Class A Shares of such other
mutual funds as are disclosed in the Fund's prospectus, subject to
such terms and limitations as disclosed in the Fund's prospectus and
statement of additional information.

b. Class B Shares may be exchanged for Class B Shares of such other
mutual funds as are disclosed in the Fund's prospectus, subject to
such terms and limitations as disclosed in the Fund's prospectus and
statement of additional information.

c. Class C Shares may be exchanged for Class C Shares of such other
mutual funds as are disclosed in the Fund's prospectus, subject to
such terms and limitations as disclosed in the Fund's prospectus and
statement of additional information.

d. Advisor Class Shares may be exchanged for Advisor Class Shares of such
other mutual funds as are disclosed in the Fund's prospectus, subject
to such terms and limitations as disclosed in the Fund's prospectus
and statement of additional information.

e. Depending upon the Portfolio from which and into which an exchange is
being made and when the shares were purchased, shares being acquired
in an exchange may be acquired at their offering price, at their net
asset value or by paying the difference in sales charges, as disclosed
in the Fund's prospectus and statement of additional information.

f. CDSC Computation. The CDSC payable upon redemption of Class A Shares,
Class B Shares, and Class C Shares subject to a CDSC shall be computed
in the manner described in the Fund's prospectus.

7. SERVICE AND DISTRIBUTION FEES. The Service Fee and Distribution Fee
applicable to any Class shall be those set forth in the Fund's prospectus,
relevant portions of which are incorporated herein by this reference. All
other terms and conditions with respect to Service Fees and Distribution
Fees shall be governed by the Plan of Distribution adopted by the Fund with
respect to such fees and Rule 12b-1 under the Act.

<PAGE>

8. CONVERSION OF CLASS B SHARES.

a. SHARES RECEIVED UPON REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS -
Shares purchased through the reinvestment of dividends and
distributions paid on Shares subject to conversion shall be treated as
if held in a separate sub-account. Each time any Shares in a
shareholder's account (other than Shares held in the sub-account)
convert to Class A Shares, a proportionate number of Shares held in
the sub-account shall also convert to Class A Shares.

b. CONVERSIONS ON BASIS OF RELATIVE NET ASSET VALUE - All conversions
shall be effected on the basis of the relative net asset values of the
two Classes without the imposition of any sales load or other charge.

c. AMENDMENTS TO PLAN OF DISTRIBUTION FOR CLASS A SHARES - If any
amendment is proposed to the Plan of Distribution under which Service
Fees and Distribution Fees are paid with respect to Class A Shares of
a Fund that would increase materially the amount to be borne by those
Class A Shares, then no Class B Shares shall convert into Class A
Shares of that Fund until the holders of Class B Shares of that Fund
have also approved the proposed amendment. If the holders of such
Class B Shares do not approve the proposed amendment, the Directors of
the Fund and the Distributor shall take such action as is necessary to
ensure that the Class voting against the amendment shall convert into
another Class identical in all material respects to Class A Shares of
the Fund as constituted prior to the amendment.

9. This Plan shall not take effect until a majority of the Directors of a
Fund, including a majority of the Directors who are not interested persons
of the Fund, shall find that the Plan, as proposed and including the
expense allocations, is in the best interests of each Class individually
and the Fund as a whole.

10. This Plan may not be amended to materially change the provisions of this
Plan unless such amendment is approved in the manner specified in Section 9
above.