<PAGE> 1
ADVISOR CLASS SHARES OF
AIM DEVELOPING MARKETS FUND
AIM LATIN AMERICAN GROWTH FUND
(SERIES PORTFOLIOS OF AIM INVESTMENT FUNDS)
Supplement dated January 24, 2000
To the Statement of Additional Information dated March 1, 1999,
as supplemented October 4, 1999
This supplement supercedes and replaces in its entirety the supplement dated
October 4, 1999.
The following paragraph replaces in its entirety the information
appearing under the heading INVESTMENT STRATEGIES AND RISKS--INVESTMENT IN
OTHER INVESTMENT COMPANIES" on page 8 of the Statement of Additional
Information:
"With respect to certain countries, investments by the Funds
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 Fund invests in such companies, the prices
paid by the Fund and the proceeds to the Fund 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, and the Funds anticipate investing directly in
these markets. The Funds 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 Fund is permitted to, and intends to,
invest its cash (and cash collateral received in connection with the
lending of portfolio securities) in shares of money market investment
companies advised by AIM or its affiliates ("Affiliated Money Market
Funds"), provided that those investments do not exceed 25% of the total
assets of such Fund. In general, a purchase of investment company
securities may result in the duplication of fees and expenses. With
respect to a Fund's purchase of shares of Affiliated Money Market Funds,
the Fund will indirectly pay the advisory fees and other operating
expenses of the Affiliated Money Market Funds."
The following paragraph replaces the first paragraph appearing under
the heading "INVESTMENT STRATEGIES AND RISKS--TEMPORARY DEFENSIVE STRATEGIES"
on page 12 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 Funds may
temporarily hold all or a portion of its assets in cash (U.S. dollars,
foreign currencies or multinational currency units such as Euros), money
market instruments, or high-quality debt securities. Each of the Funds may
also invest up to 25% of its total assets in Affiliated Money Market Funds
for these purposes. In addition, for temporary defensive purposes, most or
all of each Fund's investments may be made in the United States and
denominated in U.S. dollars. To the extent a Fund employs a temporary
defensive strategy, it will not be invested so as to achieve directly its
investment objectives."
The following replaces in its entirety item "(1)" appearing under
the heading "INVESTMENT LIMITATIONS--LATIN AMERICAN FUND" under the
non-fundamental policies discussion on page 36 of the Statement of Additional
Information:
"(1) Invest in securities of an issuer if the investment would cause
Latin American Fund to own more than 10% of any class of securities of any
one issuer, except that the Fund may purchase securities of Affiliated
Money Market Funds to the extent permitted by exemptive order."
The following replaces in its entirety the paragraph appearing after
item "(7)" under the heading "INVESTMENT LIMITATIONS--LATIN AMERICAN FUND"
on page 37 of the Statement of Additional Information:
1
<PAGE> 2
"Latin American Fund has the authority to invest up to 10% of its
total assets in shares of other investment companies pursuant to the 1940
Act. The Fund 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 Fund may
purchase securities of Affiliated Money Market Funds to the extent
permitted by exemptive order."
The section entitled "ALLOCATION OF INITIAL PUBLIC OFFERING ("IPO")
SECURITIES TRANSACTIONS" appearing under the heading "EXECUTION OF PORTFOLIO
TRANSACTIONS" on page 37 of the Statement of Additional Information is deleted
in its entirety.
The sixth paragraph appearing under the heading "INVESTMENT
RESULTS--PERFORMANCE INFORMATION" on page 55 of the Statement of Additional
Information is deleted in its entirety.
The following replaces in its entirety the table appearing under the
heading "MANAGEMENT-TRUSTEES AND EXECUTIVE OFFICERS" on page 39 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 (53) Trustee, Chairman and Director, President and Chief Executive Officer, A I M
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 and Chief Executive Officer, Managed Products,
AMVESCAP PLC.
- ------------------------------- --------------------------- -----------------------------------------------------------
C. DEREK ANDERSON (58) Trustee Senior Managing Partner, Plantagenet Capital Management,
220 Sansome Street LLC (an investment partnership); Chief Executive Officer,
Suite 400 Plantagenet Holdings, Ltd. (an investment banking firm);
San Francisco, CA 94104 and Director, Premium Wear, Inc. (formerly Munsingwear,
Inc.) (a casual apparel company), 'R' Homes, Inc., Big
Online, Inc., Champagne Albert Le Brun and various other
privately owned companies.
- ------------------------------- --------------------------- -----------------------------------------------------------
FRANK S. BAYLEY (60) Trustee Partner, law firm of Baker & McKenzie; Trustee, The
Two Embarcadero Center Badgley Funds; and Director and Chairman, C. D. Stimson
Suite 2400 Company (a private investment company).
San Francisco, CA 94111
- ------------------------------- --------------------------- -----------------------------------------------------------
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.
- ------------------------------- --------------------------- -----------------------------------------------------------
</TABLE>
- ----------------------------
* A trustee who is an "interested person" of the Trust and AIM as
defined in the 1940 Act.
2
<PAGE> 3
<TABLE>
<CAPTION>
- ------------------------------- --------------------------- -----------------------------------------------------------
POSITIONS HELD WITH PRINCIPAL OCCUPATION DURING AT LEAST THE PAST 5 YEARS
NAME, ADDRESS AND AGE REGISTRANT
- ------------------------------- --------------------------- -----------------------------------------------------------
<S> <C> <C>
MELVILLE B. COX (56) 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.
- ------------------------------- --------------------------- -----------------------------------------------------------
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.; Director and Senior Vice President, A I M
Advisors, Inc.; and Director, A I M Distributors, Inc.
and AMVESCAP PLC.
- ------------------------------- --------------------------- -----------------------------------------------------------
CAROL F. RELIHAN (45) 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 A I
Secretary 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 (41) 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>
3
