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AIM INVESTMENT SECURITIES FUNDS
LIMITED MATURITY TREASURY PORTFOLIO
AIM LIMITED MATURITY TREASURY SHARES
Supplement dated December 16, 1996
to the Prospectus dated November 21, 1996
APPROVAL OF NEW ADVISORY, ADMINISTRATIVE SERVICES AND DISTRIBUTION AGREEMENTS
On December 11, 1996, the Board of Trustees (the "Board") of AIM
Investment Securities Funds (the "Trust") approved a new investment advisory
agreement, subject to shareholder approval, between A I M Advisors, Inc.
("AIM") and the Trust with respect to Limited Maturity Treasury Portfolio (the
"Fund"). Shareholders will be asked to approve the proposed advisory agreement
at an annual meeting of shareholders to be held on February 7, 1997 (the
"Annual Meeting"). The Board has also approved a new administrative services
agreement with AIM and a new distribution agreement with A I M Distributors,
Inc. There are no material changes to the terms of the new agreements,
including the fees payable by the Fund. No change is anticipated in the
investment advisory or other personnel responsible for the Fund as a result of
these new agreements.
The Board has approved these new agreements because the Fund's
corresponding existing agreements will terminate upon the consummation of the
proposed merger of A I M Management Group Inc., the parent of AIM, into a
subsidiary of INVESCO plc. INVESCO plc and its subsidiaries are an independent
investment management group engaged in institutional investment management and
retail mutual fund businesses in the United States, Europe and the Pacific
region. It is contemplated that the merger will occur on February 28, 1997.
Provided that the Fund's shareholders approve the new advisory agreement at the
Annual Meeting and the merger is consummated, the new advisory agreement, as
well as the new administrative services and distribution agreements, will
automatically become effective as of the closing of the merger.
PROPOSED CHANGES TO FUNDAMENTAL INVESTMENT POLICIES
The Board has unanimously approved the elimination of a certain
fundamental investment policy of the Fund, subject to shareholder approval.
Shareholders will be asked to approve this change at the Annual Meeting. If
approved, it will become effective on March 1, 1997.
The Fund is currently prohibited from investing in other investment
companies. The Board has approved the elimination of this prohibition for the
Fund to permit investment in other investment companies to the extent permitted
by the Investment Company Act of 1940, and rules and regulations thereunder,
and, if applicable, exemptive orders granted by the Securities and Exchange
Commission.
For additional information regarding the proposed change described
above, see the Fund's Statement of Additional Information dated November 21,
1996, as supplemented December 16, 1996.
