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AIM ADVISOR FLEX FUND
AIM ADVISOR INTERATIONAL VALUE FUND
AIM ADVISOR LARGE CAP VALUE FUND
AIM ADVISOR REAL ESTATE FUND
Supplement dated October 1, 1999
to the Statement of Additional Information dated May 3, 1999,
as revised July 1, 1999
The following new paragraph is added after the second paragraph under the
section entitled "PORTFOLIO TRANSACTIONS AND BROKERAGE - ALLOCATION OF PORTFOLIO
TRANSACTIONS" on Page 53 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 initial
public offering ("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."
The following new paragraph is added after the second paragraph under the
section entitled "PERFORMANCE INFORMATION" on Page 55 of the Statement of
Additional Information:
"Some or all of the Funds may participate in the IPO market, and a
significant portion of those Funds' returns may be attributable to their
investment in IPOs, which have a magnified impact due to small
asset bases. There is no guarantee that as of those Funds' assets grow,
they will continue to experience substantially similar performance by
investing in IPOs."
