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AIM SUMMIT FUND, INC.
Supplement dated December 16, 1996
to the Prospectus dated March 1, 1996,
as supplemented November 5, 1996
APPROVAL OF NEW ADVISORY, ADMINISTRATIVE SERVICES AND DISTRIBUTION AGREEMENTS
On December 11, 1996, the Board of Directors (the "Board") of AIM
Summit Fund, Inc. (the "Fund") approved a new investment advisory agreement,
subject to shareholder approval, between A I M Advisors, Inc. ("AIM") and the
Fund. The Board also approved a new sub-advisory agreement between AIM and
TradeStreet Investment Associates, Inc. ("TradeStreet"), subject to
shareholder approval. Shareholders will be asked to approve the new investment
advisory agreement and sub-advisory agreement at an annual meeting of
shareholders to be held on February 7, 1997 (the "Annual Meeting"). The Board
has also approved a new administrative services agreement with AIM, a new
administrative services agreement with respect to shareholder services between
AIM and A I M Fund Services, Inc., and a new distribution agreement with A I M
Distributors, Inc. There are no material changes to the terms of the new
agreements, including the fees payable by the Fund. No change is anticipated
in the investment advisory or other personnel responsible for the Fund as a
result of these new agreements.
The Board has approved these new agreements because the Fund's
corresponding existing agreements will terminate upon the consummation of the
proposed merger of A I M Management Group Inc., the parent of AIM, into a
subsidiary of INVESCO plc. INVESCO plc and its subsidiaries are an independent
investment management group engaged in institutional investment management and
retail mutual fund businesses in the United States, Europe and the Pacific
region. It is contemplated that the merger will occur on February 28, 1997.
Provided that the Fund's shareholders approve the new investment advisory
agreement and sub-advisory agreement at the Annual Meeting and the merger is
consummated, the new investment advisory agreement and sub-advisory agreement,
as well as the new administrative services and distribution agreements, will
automatically become effective as of the closing of the merger.
PROPOSED CHANGES TO FUNDAMENTAL INVESTMENT POLICIES
The Board has unanimously approved the elimination of and changes to
certain fundamental investment policies of the Fund, subject to shareholder
approval. Shareholders will be asked to approve these changes at the Annual
Meeting. If approved, they will become effective on March 1, 1997.
The Fund is currently generally prohibited from investing in other
investment companies. The Board has approved the elimination of this
prohibition, and the amendment of other fundamental investment policies that
relate to investment in other investment companies. The elimination of the
fundamental investment policy that prohibits the Fund from investing in other
investment companies and the proposed amendments to the related fundamental
investment policies would permit investment in other investment companies to
the extent permitted by the Investment Company Act of 1940, and rules and
regulations thereunder, and, if applicable, exemptive orders granted by the
Securities and Exchange Commission.
Reference is made to Investment Restriction Nos. 2 and 3 of the Fund,
set forth on page A-9
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of the Fund's Prospectus. The Board of Directors has approved a change to each
of Investment Restriction Nos. 2 and 3. In the event shareholders approve the
proposed changes, Investment Restriction Nos. 2 and 3 will read, respectively,
in full as follows:
(2) More than 5% of the value of the Fund's total assets would be
invested in the securities of a single issuer, except that this
restriction does not apply to obligations issued or guaranteed by the
United States Government or its agencies or instrumentalities, or
repurchase agreements pertaining to such securities, and except that
the Fund may purchase securities of other investment companies to the
extent permitted by applicable law or exemptive order; or
(3) The Fund would own more than 10% of the outstanding voting
securities of any issuer or more than 10% of any class of securities
of an issuer, with the debt and preferred stock of an issuer each
considered to be a separate single class for this purpose, except that
the Fund may purchase securities of other investment companies to the
extent permitted by applicable law or exemptive order.
For additional information regarding the proposed changes described
above, see the Fund's Statement of Additional Information dated March 1, 1996,
as supplemented December 16, 1996.
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