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AIM INVESTMENT SECURITIES FUNDS
LIMITED MATURITY TREASURY PORTFOLIO
INSTITUTIONAL SHARES
Supplement dated April 10, 1996
to the Prospectus dated November 17, 1995,
as Supplemented December 28, 1995
This Supplement replaces and incorporates the Supplement dated December 28,
1995.
The second sentence under the caption "SUMMARY - Redemption of Shares" on page
2 is deleted and replaced in its entirety by the following:
"Payment for redeemed shares for which redemption orders are received
prior to 4:00 p.m. Eastern Time will normally be made in federal funds
on the next business day."
The first sentence under the caption "SUMMARY - Dividends and Distributions" on
page 2 is deleted and replaced in its entirety by the following:
"The net investment income of the Fund is declared as a dividend daily
to shareholders of record immediately prior to 4:00 p.m. Eastern
Time."
The fourth sentence of the first paragraph under the caption "Purchase of
Shares" on page 8 of the Prospectus is deleted and replaced by the following:
"Accordingly, in order to be accepted for execution, purchase orders
must be received by the Fund prior to the determination of net asset
value (4:00 p.m. Eastern Time) on a business day of the Fund, which
means any day on which the New York Stock Exchange (the "NYSE") is
open for business."
The third paragraph under the caption "Purchase of Shares" on page 8 of the
Prospectus is revised to read in its entirety as follows:
"To facilitate the investment of the proceeds of purchase orders, the
Fund urges Institutions to place their orders as early in the day as
possible. Subject to the conditions stated above and the Fund's right
to reject any purchase order, purchase orders received by the Fund
prior to 4:00 p.m. Eastern Time on any business day will be accepted
on that day (a) when payment for the shares of the class of the Fund
purchased is received by The Bank of New York, the Fund's custodian
bank, in the form described below and notice of such order is provided
to AIFS or (b) at the time the order is placed, if the Fund is assured
of payment, and will be priced at the net asset value determined as of
4:00 p.m. Eastern Time on such day. Payment for such shares must be
received by The Bank of New York, the Fund's custodian, on the next
business day of the Fund following the effective date of purchase.
Dividends begin accruing on the first business day of the Fund
following the day on which a purchase order for the Fund is effective.
Purchase orders received by the Fund after 4:00 p.m. Eastern Time on
any business day will be effective on the next business day of the
Fund and will be priced at the net asset value determined at the end
of such day."
The second paragraph under the caption "Redemption of Shares" on pages 8 - 9 of
the Prospectus is revised to read in its entirety as follows:
"Payment for redeemed shares is normally made by Federal Reserve wire
to the commercial bank account designated in the shareholder's Account
Application. If a redemption request is received by AIFS prior to 4:00
p.m. Eastern Time on a business day of the Fund, the redemption will
be effected at the net asset value determined as of
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4:00 p.m. Eastern Time on such day and the shares to be redeemed will
receive the dividend declared on the day the request is received. The
proceeds of a redemption request effected prior to 4:00 p.m. Eastern
Time will not be wired to the redeeming shareholder until the next
business day of the Fund. A redemption request received by AIFS after
4:00 p.m. Eastern Time or on other than a business day of the Fund
will be effected at the net asset value of the Fund determined as of
4:00 p.m. Eastern Time on the next business day of the Fund, and the
proceeds of such redemption will normally be wired on the business day
next following such determination, or two (2) business days after the
receipt of the redemption request."
