<PAGE> 1
CLASS A, CLASS B AND CLASS C SHARES OF
AIM GLOBAL THEME FUNDS:
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
AIM GLOBAL FINANCIAL SERVICES FUND
AIM GLOBAL HEALTH CARE FUND
AIM GLOBAL INFRASTRUCTURE FUND
AIM GLOBAL RESOURCES FUND
AIM GLOBAL TELECOMMUNICATIONS AND TECHNOLOGY FUND
(SERIES PORTFOLIOS OF AIM INVESTMENT FUNDS)
Supplement dated October 4, 1999
To the Statement of Additional Information dated March 1, 1999
as supplemented July 1, 1999
This Supplement supersedes and replaces in its entirety the Supplement
dated July 1, 1999.
"Effective June 1, 1999, the AIM Global Telecommunications Fund's name
changes to the AIM Global Telecommunications and Technology Fund to better
reflect its principal investment strategies."
The following paragraph replaces in its entirety the paragraph
appearing under the heading "INVESTMENT STRATEGIES AND RISKS-TEMPORARY
DEFENSIVE STRATEGIES" on page 10 of the Statement of Additional Information.
"In anticipation of or in response to adverse market conditions, for
cash management purposes, or for defensive purposes, each of the Theme
Portfolios may temporarily hold all or a portion of its assets in cash
(U.S. dollars, foreign currencies or multinational currency units), money
market instruments, or high-quality debt securities. Each of the Theme
Portfolios may also invest up to 25% of its total assets in money market
investment companies advised by AIM or its affiliates ("Affiliated Money
Market Funds") for these purposes. In addition, for temporary defensive
purposes, most or all of each Theme Portfolio's investments may be made in
the United States and denominated in U.S. dollars. To the extent a Fund or
a Portfolio employs a temporary defensive strategy, it will not be
invested so as to achieve directly its investment objectives. For a full
description of money market instruments, see "Money Market Instruments"
herein."
The following paragraph replaces in its entirety the paragraph
appearing under the heading "INVESTMENT STRATEGIES AND RISKS-INVESTMENT IN
OTHER INVESTMENT COMPANIES on page 10 of the Statement of Additional
Information:
"With respect to certain countries, investments by a Theme Portfolio
presently may be made only by acquiring shares of other investment
companies (including investment vehicles or companies advised by AIM or
its affiliates) with local governmental approval to invest in those
countries. To the extent that a Theme Portfolio invests in such investment
companies, the prices paid by the Theme Portfolio and the proceeds to the
Theme Portfolio upon sale of the shares may reflect premiums above or
discounts to the net asset value of the assets owned by such investment
companies. At such time as direct investment in these countries is
allowed, the Theme Portfolios anticipate investing directly in these
markets. The Theme Portfolios may invest in other investment companies to
the extent permitted by the 1940 Act, rules and regulations thereunder,
and any applicable exemptive orders granted by the SEC. Under an exemptive
order granted by the SEC, each Theme Portfolio is permitted to, and
intends to, invest its cash (and cash collateral received in connection
with the lending of portfolio securities) in shares of Affiliated Money
Market Funds, provided that those investments do not exceed 25% of the
total assets of such Theme Portfolio. In general, a purchase of investment
company securities may result in the duplication of fees and expenses.
With respect to a Theme Portfolio's purchase of shares of Affiliated Money
Market Funds, the Theme Portfolio will indirectly pay the advisory fees
and other operating expenses of the Affiliated Money Market Funds."
<PAGE> 2
The following replaces in its entirety items "(1)" and "(6)" appearing
under the heading "INVESTMENT LIMITATIONS-FEEDER FUNDS" under the
non-fundamental policies discussion on page 31 of the Statement of Additional
Information:
"(1) Invest in securities of an issuer if the investment would cause
the Portfolio to own more than 10% of any class of securities of any one
issuer, except that the Portfolio may purchase securities of Affiliated
Money Market Funds to the extent permitted by exemptive order."
(6) Invest more than 10% of its total assets in shares of other
investment companies and may not invest more than 5% of its total assets
in any one investment company or acquire more than 3% of the outstanding
voting securities of any one investment company, except that the Portfolio
may purchase securities of Affiliated Money Market Funds to the extent
permitted by exemptive order."
The following replaces in its entirety item "(1)" appearing under the
heading "INVESTMENT LIMITATIONS-TELECOMMUNICATIONS FUND" under the
non-fundamental policies discussion on page 33 of the Statement of Additional
Information:
"(1) Invest in securities of an issuer if the investment would cause
the Telecommunications Fund to own more than 10% of any class of
securities of any one issuer, except that the Telecommunications Fund may
purchase securities of Affiliated Money Market Funds to the extent
permitted by exemptive order."
The following new section is added after the tenth paragraph appearing
under the heading "EXECUTION OF PORTFOLIO TRANSACTIONS" on page 36 of the
Statement of Additional Information:
"ALLOCATION OF INITIAL PUBLIC OFFERING ("IPO") SECURITIES TRANSACTIONS
From time to time, certain of the mutual funds managed by AIM or A I M
Capital Management, Inc. (collectively, 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."
2
<PAGE> 3
The following new paragraph is added after the fifth paragraph
appearing under the heading "INVESTMENT RESULTS-PERFORMANCE INFORMATION" on
page 65 of the Statement of Additional Information:
"Some or all of the Theme Portfolios may participate in the IPO market,
and a significant portion of those Theme Portfolios' returns may be
attributable to their investment in IPOs, which have a magnified impact
due to the Theme Portfolios' small asset bases. There is no guarantee that
as the Theme Portfolios' assets grow, they will continue to invest to the
same degree in IPOs or that they will experience substantially similar
performance."
The following replaces in its entirety the table appearing under the
heading "MANAGEMENT-TRUSTEES AND EXECUTIVE OFFICERS" on page 36 of the
Statement of Additional Information:
<TABLE>
<CAPTION>
- ---------------------------- --------------------------- -----------------------------------------------------------
POSITIONS HELD WITH PRINCIPAL OCCUPATION DURING AT LEAST THE PAST 5 YEARS
"NAME, ADDRESS AND AGE REGISTRANT
- ---------------------------- --------------------------- -----------------------------------------------------------
<S> <C> <C>
*ROBERT H. GRAHAM (52) Trustee, Chairman of the Director, President and Chief Executive Officer, A I M
Board and President Management Group 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.
- ---------------------------- --------------------------- -----------------------------------------------------------
C. DEREK ANDERSON (58) Trustee President, Plantagenet Capital Management, LLC (an
220 Sansome Street investment partnership); Chief Executive Officer,
Suite 400 Plantagenet Holdings, Ltd. (an investment banking firm);
San Francisco, CA 94104 Director, Anderson Capital Management, Inc. since 1988;
Director, Premium Wear, Inc. (formerly Munsingwear, Inc.)
(a casual apparel company); and Director, 'R' Homes, Inc.
and various other privately owned companies.
- ---------------------------- --------------------------- -----------------------------------------------------------
FRANK S. BAYLEY (60) Trustee Partner, law firm of Baker & McKenzie; Trustee, The
Two Embarcadero Center Bradley Funds; and Director and Chairman, C. D. Stimson
Suite 2400 Company (a private investment company) and Stimson
San Francisco, CA 94111 Marina, Inc. (a subsidiary of C.D. Stimson Co.).
- ---------------------------- --------------------------- -----------------------------------------------------------
RUTH H. QUIGLEY (64) Trustee Private investor; and President, Quigley Friedlander &
1055 California Street Co., Inc. (a financial advisory services firm) from 1984
San Francisco, CA 94108 to 1986.
- ---------------------------- --------------------------- -----------------------------------------------------------
MELVILLE B. COX (55) Vice President Vice President and Chief Compliance Officer, A I M
Advisors, Inc., A I M Capital Management, Inc., A I M
Distributors, Inc., A I M Fund Services, Inc. and Fund
Management Company.
- ---------------------------- --------------------------- -----------------------------------------------------------
</TABLE>
- --------
* A trustee who is an "interested person" of the Trust and AIM
as defined in the 1940 Act.
3
<PAGE> 4
<TABLE>
<CAPTION>
- ---------------------------- --------------------------- -----------------------------------------------------------
POSITIONS HELD WITH PRINCIPAL OCCUPATION DURING AT LEAST THE PAST 5 YEARS
"NAME, ADDRESS AND AGE REGISTRANT
- ---------------------------- --------------------------- -----------------------------------------------------------
<S> <C> <C>
GARY T. CRUM (52) Vice President Director and President, A I M Capital Management, Inc.;
Director and Executive Vice President, A I M Management
Group Inc. and A I M Advisors, Inc.; and Director, A I M
Distributors, Inc. and AMVESCAP PLC.
- ---------------------------- --------------------------- -----------------------------------------------------------
CAROL F. RELIHAN (44) Vice President Director, Senior Vice President, General Counsel and
Secretary, A I M Advisors, Inc.; Senior 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.
- ---------------------------- --------------------------- -----------------------------------------------------------
SAMUEL D. SIRKO (40) Vice President and Assistant General Counsel and Assistant Secretary of
Secretary 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; and Vice President, Assistant
General Counsel and Assistant Secretary of A I M Advisors,
Inc.
- ---------------------------- --------------------------- -----------------------------------------------------------
DANA R. SUTTON (40) Vice President and Vice President and Fund Controller, A I M Advisors, Inc.;
Treasurer and Assistant Vice President and Assistant Treasurer,
Fund Management Company."
- ---------------------------- --------------------------- -----------------------------------------------------------
</TABLE>
4
