<PAGE> 1
AIM SUMMIT FUND, INC.
CLASS I SHARES
Supplement dated January 26, 2000
to the Statement of Additional Information dated March 1, 1999,
as revised October 1, 1999
The following new paragraph is added after the fifth paragraph appearing
under the heading "PERFORMANCE INFORMATION" on page 2 of the Statement of
Additional Information.
"The Fund may participate in the initial public offering ("IPO")
market, and a significant portion of the Fund's returns may be
attributable to its investment in IPOs. Investments in IPOs could have a
magnified impact on a fund with a small asset base. There is no guarantee
that as a fund's assets grow, it will continue to experience substantially
similar performance by investing in IPOs."
The following new section is added after the second paragraph appearing
under the heading "PORTFOLIO TRANSACTIONS AND BROKERAGE -- ALLOCATION OF
PORTFOLIO TRANSACTIONS" on page 32 of the Statement of Additional Information:
"ALLOCATION OF IPO SECURITIES TRANSACTIONS
From time to time, certain of the AIM Funds may become interested in
participating in security distributions that are available in an IPO, and
occasions may arise when purchases of such securities by one AIM Fund may
also be considered for purchase by one or more other AIM Funds. In such
cases, it shall be AIM's practice to specifically combine or otherwise
bunch indications of interest for IPO securities for all AIM Funds
participating in purchase transactions for that security, and to allocate
such transactions in accordance with the following procedures:
AIM will determine the eligibility of each AIM Fund that seeks to
participate in a particular IPO by reviewing a number of factors,
including suitability of the investment with the AIM Fund's investment
objective, policies and strategies, the liquidity of the AIM Fund if such
investment is purchased, and whether the portfolio manager intends to hold
the security as a long-term investment. The allocation of limited supply
securities issued in IPOs will be made to eligible AIM Funds in a manner
designed to be fair and equitable for the eligible AIM Funds, and so that
there is equal allocation of IPOs over the longer term. Where multiple
funds are eligible, rotational participation may occur, based on the
extent to which an AIM Fund has participated in previous IPOs as well as
the size of the AIM Fund. Each eligible AIM Fund with an asset level of
less than $500 million, will be placed in one of three tiers, depending
upon its asset level. The AIM Funds in the tier containing funds with the
smallest asset levels will participate first, each receiving a 40 basis
point allocation (rounded to the nearest share round lot that approximates
40 basis points) (the "Allocation"), based on that AIM Fund's net assets.
This process continues until all of the AIM Funds in the three tiers
receive their Allocations, or until the shares are all allocated. Should
securities remain after this process, eligible AIM Funds will receive
their Allocations on a straight pro rata basis. For the tier of AIM Funds
not receiving a full Allocation, the Allocation may be made only to
certain AIM Funds so that each may receive close to or exactly 40 basis
points.
Any AIM Funds with substantially identical investment objectives and
policies will participate in syndicates in amounts that are substantially
proportionate to each other. In these cases, the net assets of the largest
AIM Fund will be used to determine in which tier, as described in the
paragraph above, such group of AIM Funds will be placed. The price per
share of securities purchased in such syndicate transactions will be the
same for each AIM Fund."
<PAGE> 2
AIM SUMMIT FUND, INC.
CLASS II SHARES
Supplement dated January 26, 2000
to the Statement of Additional Information dated July 1, 1999,
as revised October 1, 1999
The following new paragraph is added after the fifth paragraph appearing
under the heading "PERFORMANCE INFORMATION" on page 2 of the Statement of
Additional Information.
"The Fund may participate in the initial public offering ("IPO")
market, and a significant portion of the Fund's returns may be
attributable to its investment in IPOs. Investments in IPOs could have a
magnified impact on a fund with a small asset base. There is no guarantee
that as a fund's assets grow, it will continue to experience substantially
similar performance by investing in IPOs."
The following new section is added after the second paragraph appearing
under the heading "PORTFOLIO TRANSACTIONS AND BROKERAGE -- ALLOCATION OF
PORTFOLIO TRANSACTIONS" on page 34 of the Statement of Additional Information:
"ALLOCATION OF IPO SECURITIES TRANSACTIONS
From time to time, certain of the AIM Funds may become interested in
participating in security distributions that are available in an IPO, and
occasions may arise when purchases of such securities by one AIM Fund may
also be considered for purchase by one or more other AIM Funds. In such
cases, it shall be AIM's practice to specifically combine or otherwise
bunch indications of interest for IPO securities for all AIM Funds
participating in purchase transactions for that security, and to allocate
such transactions in accordance with the following procedures:
AIM will determine the eligibility of each AIM Fund that seeks to
participate in a particular IPO by reviewing a number of factors,
including suitability of the investment with the AIM Fund's investment
objective, policies and strategies, the liquidity of the AIM Fund if such
investment is purchased, and whether the portfolio manager intends to hold
the security as a long-term investment. The allocation of limited supply
securities issued in IPOs will be made to eligible AIM Funds in a manner
designed to be fair and equitable for the eligible AIM Funds, and so that
there is equal allocation of IPOs over the longer term. Where multiple
funds are eligible, rotational participation may occur, based on the
extent to which an AIM Fund has participated in previous IPOs as well as
the size of the AIM Fund. Each eligible AIM Fund with an asset level of
less than $500 million, will be placed in one of three tiers, depending
upon its asset level. The AIM Funds in the tier containing funds with the
smallest asset levels will participate first, each receiving a 40 basis
point allocation (rounded to the nearest share round lot that approximates
40 basis points) (the "Allocation"), based on that AIM Fund's net assets.
This process continues until all of the AIM Funds in the three tiers
receive their Allocations, or until the shares are all allocated. Should
securities remain after this process, eligible AIM Funds will receive
their Allocations on a straight pro rata basis. For the tier of AIM Funds
not receiving a full Allocation, the Allocation may be made only to
certain AIM Funds so that each may receive close to or exactly 40 basis
points.
Any AIM Funds with substantially identical investment objectives and
policies will participate in syndicates in amounts that are substantially
proportionate to each other. In these cases, the net assets of the largest
AIM Fund will be used to determine in which tier, as described in the
paragraph above, such group of AIM Funds will be placed. The price per
share of securities purchased in such syndicate transactions will be the
same for each AIM Fund."
