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CLASS A AND CLASS B SHARES OF
AIM GLOBAL TELECOMMUNICATIONS FUND
(A SERIES PORTFOLIO OF AIM INVESTMENT FUNDS)
Supplement dated February 5, 1999
to the Prospectus dated September 8, 1998,
as supplemented October 16, 1998
Effective February 5, 1999, the following information replaces in its entirety,
the table under "MANAGEMENT-INVESTMENT MANAGEMENT AND ADMINISTRATION" on page
13.
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BUSINESS EXPERIENCE
NAME/OFFICE PAST FIVE YEARS
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David P. Barnard Vice President of A I M Capital Management, Inc.
Houston ("AIM Capital "), a wholly owned subsidiary of AIM
and Portfolio Manager for the Fund since 1999. He
has been associated with AIM and/or its subsidiaries
since 1982 and has been an investment professional
since 1974.
Claude C. Cody IV Vice President of AIM Capital and Portfolio Manager
Houston for the Fund since 1999. He has been associated
with AIM and/or its subsidiaries since 1992 and has
been an investment professional since 1976.
Robert M. Kippes Vice President of AIM Capital and Portfolio Manager
Houston for the Fund since 1999. He has been associated
with AIM and/or its subsidiaries since he began
working as an investment professional in 1989.
Paul A. Rogge Vice President of AIM Capital and Portfolio Manager
Houston for the Fund since 1999. He has been associated
with AIM since 1991 and has a total of six years of
experience as an investment professional.
Jonathan C. Schoolar Senior Vice President of A I M Capital and Portfolio
Houston Manager of the Fund since 1999. He has been
associated with AIM and/or its subsidiaries since
1986 and has been an investment professional since
1983.
Kenneth A. Zschappel Assistant Vice President of AIM Capital and
Houston Portfolio Manager for the Fund since 1999. He has
been associated with AIM and/or its subsidiaries since
he began working as an investment professional in 1990.
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All of the following changes will be effective June 1, 1999:
The Board of Trustees has approved a change to certain investment strategies of
AIM Global Telecommunications Fund (the "Fund"), which will permit investments
in securities of companies in technology industries, in addition to investments
in securities of companies in telecommunications industries. As a result, the
Fund will be required to invest at least 65% of its total assets in equity
securities of domestic and foreign telecommunications and/or technology
companies. Such companies include those that develop, manufacture, or sell
computer and electronic components and equipment, software, semiconductors,
Internet technology, communications services and equipment, mobile
communications, and broadcasting. In addition, the Fund
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will be permitted to invest up to 35% of its assets in debt securities issued
by domestic and foreign telecommunications and/or technology companies, or
equity and debt securities of other companies the portfolio managers believe
will benefit from developments in either the telecommunications and/or
technology industries.
The Board of Trustees has also approved changing the Fund's name to "AIM Global
Telecommunications and Technology Fund," in order to reflect the above change
to the investment strategies of the Fund.
As a result of its increased exposure to the technology sector, the Fund may be
subject to additional investment risks. Technology companies are subject to
risks of rapid obsolescence of products and services, competitive pressures,
and dependency upon consumer and business acceptance as new technologies
evolve. These companies are increasingly sensitive to short product cycles and
aggressive pricing. Technology companies may be subject to greater governmental
regulation than other industries, necessitating governmental approval of their
products. Technology companies often are small and at an earlier stage of
development and thus may be especially subject to risks such as those arising
out of limited product lines, markets, and financial or managerial resources.
Securities of these companies may be subject to large and rapid price
movements.
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