<PAGE> 1
CLASS A, CLASS B AND CLASS C SHARES OF
AIM EMERGING MARKETS DEBT FUND
AIM GLOBAL GOVERNMENT INCOME FUND
AIM GLOBAL GROWTH & INCOME FUND
AIM STRATEGIC INCOME 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 1, 1999
This supplement supercedes and replaces in its entirety the supplement dated
October 1, 1999.
The following paragraph replaces in its entirety the paragraph
appearing under the heading "INVESTMENT STRATEGIES AND RISKS--TEMPORARY
DEFENSIVE STRATEGIES" on page 14 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 and
the Portfolio may temporarily hold all or a portion of its assets in cash
(U.S. dollars, and for the Growth & Income Fund, the Strategic Income Fund
and Government Income Fund foreign currencies or multinational currency
units), money market instruments, or high-quality debt securities. Each of
the Funds and the Portfolio 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 Fund's and the
Portfolio's investments may be made in the United States and denominated
in U.S. dollars. To the extent a Fund or the Portfolio employs a temporary
defensive strategy, it will not be invested so as to achieve directly its
investment objectives."
The following paragraph replaces in its entirety the paragraph
appearing under the heading "INVESTMENT STRATEGIES AND RISKS--INVESTMENT IN
OTHER INVESTMENT COMPANIES" on page 14 of the Statement of Additional
Information:
"With respect to certain countries, investments by Government Income
Fund, Strategic Income Fund, Growth & Income Fund, and the 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 Fund or Portfolio invests in such
investment companies, the prices paid by the Fund or Portfolio and the
proceeds to the Fund or 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, Government Income Fund, Strategic Income Fund,
Growth & Income Fund, and the Portfolio anticipate investing directly in
these markets. Government Income Fund, Strategic Income Fund, Growth &
Income Fund, and the Portfolio 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 of the Government Income Fund, Strategic
Income Fund, Growth & Income Fund and the 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 Fund or Portfolio. In general, a purchase of
investment company securities may result in the duplication of fees and
expenses. With respect to a Fund's or Portfolio's purchase of shares of
Affiliated Money Market Funds, the Fund or 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 item "(2)" appearing under
the heading "INVESTMENT LIMITATIONS-- GOVERNMENT INCOME FUND" under
the non-fundamental policies discussion on page 37 of the Statement of
Additional Information:
"(2) Invest in securities of an issuer if the investment would cause
the 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 items "(3)" and "(4)"
appearing under the heading "INVESTMENT LIMITATIONS--STRATEGIC INCOME
FUND" under the non-fundamental policies discussion on page 38 of the Statement
of Additional Information:
"(2) Borrow money to purchase securities and will not invest in
securities of an issuer if the investment would cause the Fund to own more
than 10% of any class of securities of any one issuer (provided, however,
that the Fund may invest all of its investable assets in an open-end
management investment company with substantially the same investment
objectives, policies, and limitations as the Fund), except that the Fund
may purchase securities of Affiliated Money Market Funds to the extent
permitted by exemptive order;
(3) Invest more than 10% of its total assets in shares of other
investment companies and 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 (provided, however, that the Fund
may invest all of its investable assets in an open-end management
investment company with substantially the same investment objectives,
policies, and limitations as the Fund), 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 items "(1)" and "(4)"
appearing under the heading "INVESTMENT LIMITATIONS--EMERGING MARKETS DEBT
FUND AND THE PORTFOLIO" under the non-fundamental policies discussion on page
39 of the Statement of Additional Information:
"(1) Invest in securities of an issuer if the investment would cause
the Fund or the Portfolio to own more than 10% of any class of securities
of any one issuer (provided, however, that the Fund may invest all of its
investable assets in an open-end management investment company with
substantially the same investment objectives as the Fund), except that the
Fund or the Portfolio may purchase securities of Affiliated Money Market
Funds to the extent permitted by exemptive order;
(4) Invest more than 10% of its total assets in shares of other
investment companies and 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 (provided, however, that the Fund
may invest all of its investable assets in an open-end management
investment company with substantially the same investment objectives as
the Fund), except that the Fund or 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--GROWTH & INCOME FUND" under the
non-fundamental policies discussion on page 40 of the Statement of Additional
Information:
"(1) Invest in securities of an issuer if the investment would cause
the 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 section entitled "ALLOCATION OF INITIAL PUBLIC OFFERING ("IPO")
SECURITIES TRANSACTIONS" appearing under the heading "EXECUTION OF PORTFOLIO
TRANSACTIONS" on page 41 of the Statement of Additional Information is deleted
in its entirety.
The eighth paragraph appearing under the heading "INVESTMENT
RESULTS--PERFORMANCE INFORMATION" on page 72 of the Statement of Additional
Information is deleted in its entirety.
2
<PAGE> 3
The following replaces in its entirety the table appearing under the heading
"MANAGEMENT--TRUSTEES AND EXECUTIVE OFFICERS" on page 43 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.
- ------------------------------- --------------------------- -----------------------------------------------------------
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.
- ------------------------------- --------------------------- -----------------------------------------------------------
</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>
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 M
Secretary 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>
4
