<PAGE> 1
ADVISOR CLASS 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;"
2
<PAGE> 3
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 61 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 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 (52) 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.
- ------------------------------- --------------------------- -----------------------------------------------------------
</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.; 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>
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