<PAGE> 1
CLASS A SHARES OF
AIM LIMITED MATURITY TREASURY FUND
Supplement dated October 1, 1999
to the Prospectus dated November 18, 1998
Effective October 1, 1999, the following section replaces in its entirety the
information appearing under the heading "INVESTMENT PROGRAM - INVESTMENT IN
OTHER INVESTMENT COMPANIES" on page 7 of the Prospectus:
"INVESTMENTS IN OTHER INVESTMENT COMPANIES. The Fund may invest in
other investment companies to the extent permitted by the 1940 Act, and
rules and regulations thereunder, and if applicable, exemptive orders
granted by the SEC. The Fund has obtained an exemptive order from the SEC
allowing it to invest in money market funds that have AIM or an affiliate
of AIM as an investment adviser (the "Affiliated Money Market Funds"),
provided that investments in Affiliated Money Market Funds do not exceed
25% of the total assets of such Fund. With respect to the Fund's purchase
of shares of the Affiliated Money Market Funds, the fund will indirectly
pay the advisory fees and other operating expenses of the Affiliated Money
Market Funds."
The following new section is added immediately after the section entitled
"INVESTMENT PROGRAM - INVESTMENT IN OTHER INVESTMENT COMPANIES" on page 7 of the
Prospectus:
"TEMPORARY DEFENSIVE INVESTMENTS. In anticipation of or in response to
adverse market conditions, for cash management purposes or for defensive
purposes, the fund may temporarily hold all or a portion of its assets in
cash, money market instruments, shares of affiliated money market funds,
bonds or other debt securities. As a result, the fund may not achieve its
investment objective."
The following replaces in its entirety the information appearing under the
heading "MANAGEMENT - PORTFOLIO MANAGEMENT" on page 8 of the Prospectus:
"PORTFOLIO MANAGEMENT. AIM uses a team approach and disciplined
investment strategy in providing investment advisory services to all its
accounts, including the Fund. AIM's investment staff consists of
approximately 125 individuals. While individual members of AIM's investment
staff are assigned primary responsibility for the day-to-day management of
each of AIM's accounts, all accounts are reviewed on a regular basis by
AIM's Investment Policy Committee to ensure that they are being invested in
accordance with the accounts' and AIM's investment policies. The
individuals on the investment team who are primarily responsible for the
day-to-day management of the Fund are Laurie F. Brignac, Karen Dunn Kelley
and Scot W. Johnson. Ms. Brignac is Assistant Vice President of A I M
Capital Management, Inc. ("AIM Capital"), a wholly owned subsidiary of AIM,
and has been responsible for the fund since 1999. She has been associated
with AIM since 1992 and has been an investment professional since 1990. Ms.
Kelley is Senior Vice President of AIM Capital; Vice President of AIM and
of the Trust; and has been responsible for the Fund since 1992. Ms. Kelley
has been associated with AIM since 1989 and has a total of 15 years of
experience as an investment professional. Mr. Johnson is Vice President of
AIM Capital, and has been responsible for the Fund since 1998. He has been
associated with AIM since 1994 and has been an investment professional
since 1994."
The following replaces in its entirety the information appearing on page A-13 of
the Prospectus:
"Shares of any AIM Fund may be exchanged for shares of any other AIM
Fund on the terms described on the chart below, except that (i) Load Fund
share purchases of $1,000,000 or more which are subject to a contingent
deferred sales charge may not be exchanged for Lower Load Funds or for AIM
TAX-EXEMPT CASH; (ii) LOWER LOAD FUND SHARE PURCHASES OF $1,000,000 OR MORE
AND AIM CASH RESERVE SHARES OF AIM MONEY MARKET FUND AND AIM TAX-EXEMPT
CASH FUND PURCHASES MAY BE EXCHANGED FOR LOAD FUND SHARES IN AMOUNTS OF
$1,000,000 OR MORE WHICH WILL THEN BE SUBJECT TO A CONTINGENT DEFERRED
SALES CHARGE; HOWEVER, FOR PURPOSES OF CALCULATING THE CONTINGENT DEFERRED
SALES CHARGES ON THE LOAD FUND SHARES ACQUIRED, THE 18-MONTH PERIOD SHALL
BE COMPUTED FROM THE DATE OF SUCH EXCHANGE; (iii) Class A shares may be
exchanged for Class A shares; (iv) Class B shares may be exchanged only for
Class B shares; (v) Class C shares may only be exchanged for Class C
shares; and (vi) AIM Cash Reserve Shares of AIM MONEY MARKET FUND may not
be exchanged for Class A, Class B or Class C shares of AIM MONEY MARKET
Fund, except that AIM Cash Reserve Shares of AIM Money Market Fund may be
exchanged for Class B or Class C shares of another AIM Fund, but only if
the AIM Cash Reserve Shares of AIM Money Market Fund were purchased
directly and not acquired by an exchange.
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DEPENDING UPON THE FUND FROM WHICH AND INTO WHICH AN EXCHANGE IS BEING
MADE, SHARES BEING ACQUIRED IN AN EXCHANGE MAY BE ACQUIRED AT THEIR
OFFERING PRICE OR AT THEIR NET ASSET VALUE (WITHOUT PAYMENT OF A SALES
CHARGE) AS SET FORTH IN THE TABLE BELOW FOR SHARES INITIALLY PURCHASED
PRIOR TO MAY 1, 1994:
<TABLE>
<CAPTION>
MULTIPLE CLASS FUNDS:
LOWER LOAD NO LOAD ----------------------------
FROM TO: LOAD FUNDS FUNDS FUNDS CLASS B CLASS C
- ---- --------------- ---------- ------ ------- -------
<S> <C> <C> <C> <C> <C>
Load Funds Net Asset Value Net Asset Value New Asset Value Not Applicable Not Applicable
Lower Load Funds Net Asset Value Net Asset Value Net Asset Value Not Applicable Not Applicable
No Load Funds Offering Price if No Load shares Net Asset Value if Net Asset Value Net Asset Value Net Asset Value
were directly purchased. Net No Load shares if shares were if shares were
Asset Value if No Load shares were acquired upon directly purchased directly purchased
were acquired upon exchange exchange of shares (applicable to AIM (applicable to AIM
of shares of any Load Fund or of any Load Fund or Cash Reserve Cash Reserve
any Lower Load Fund. any Lower Load Fund; Shares of AIM Shares of AIM
otherwise, Offering Money Market Money Market
Price. Fund only) Fund only)
Multiple Class
Funds:
Class B Not Applicable Not Applicable Not Applicable Net Asset Value Not Applicable
</TABLE>
FOR SHARES INITIALLY PURCHASED ON OR AFTER MAY 1, 1994, THE FOREGOING TABLE
IS REVISED AS FOLLOWS:
<TABLE>
<S> <C> <C> <C> <C> <C>
Load Funds Net Asset Value Net Asset Value New Asset Value Not Applicable Not Applicable
Lower Load Funds Net Asset Value if shares were Net Asset Value Net Asset Value Not Applicable Not Applicable
acquired upon exchange of any
Load Fund. Otherwise, difference
in sales charge will apply.
No Load Funds Offering Price if No Load shares Net Asset Value if Net Asset Value Net Asset Value Net Asset Value
were directly purchased. Net No Load shares if shares were if shares were
Asset Value if No Load shares were acquired upon directly purchased directly purchased
were acquired upon exchange exchange of shares (applicable to AIM (applicable to AIM
of shares of any Load Fund. of any Load Fund or Cash Reserve Cash Reserve
Difference in sales charge will any Lower Load Fund; Shares of AIM Shares of AIM
will apply if No Load shares otherwise, Offering Money Market Money Market
were acquired upon exchange Price. Fund only) Fund only)
of Lower Load Fund shares.
Multiple Class
Funds:
Class B Not Applicable Not Applicable Not Applicable Net Asset Value Not Applicable
Class C Not Applicable Not Applicable Not Applicable Not Applicable Net Asset Value
</TABLE>
An exchange is permitted only in the following circumstances: (a) if
the funds offer more than one class of shares, the exchange must be between
the same class of shares (e.g., Class A, Class B and Class C shares of a
Multiple Class Fund cannot be exchanged for each other) except that AIM
Cash Reserve Shares of AIM MONEY MARKET FUND may be exchanged for Class A
shares of another Multiple Class Fund; (b) the dollar amount of the
exchange must be at least equal to the minimum investment applicable to the
shares of the fund acquired through such exchange; (c) the shares of the
fund acquired through exchange must be qualified for sale in the state in
which the shareholder resides; (d) the exchange must be made between
accounts having identical registrations and addresses; (e) the full amount
of the purchase price for the shares being exchanged must have already been
received by the fund; (f) the account from which shares have been exchanged
must be coded as having a certified taxpayer identification number on file
or, in the alternative, an appropriate IRS Form W-8 (certificate of foreign
status) or Form W-9 (certifying exempt status) must have been received by
the fund; (g) newly acquired shares (through either an initial or
subsequent investment) are held in an account for at least ten business
days, and all other shares are held in an account for at least one day,
prior to the exchange; (h) certificates representing shares must be
returned before shares can be exchanged; and (i) you are limited to a
maximum of 10 exchanges per calendar year, because excessive short-term
trading or market-timing activity can hurt fund performance. If you exceed
the exchange limit, or if an AIM Fund or the distributor determines, in its
sole discretion, that your short-term trading is excessive or that you are
engaging in market-timing activity, it may reject any additional exchange
orders.
<PAGE> 3
An exchange is the movement out of (redemption) one AIM Fund and into
(purchase) another AIM Fund. There is no fee for exchanges among the AIM
Funds. "
The following section replaces in its entirety the section entitled "INVESTOR'S
GUIDE TO THE AIM FAMILY OF FUNDS--Registered Trademark-- -- EXCHANGE PRIVILEGE
- - EXCHANGES OF CLASS B AND CLASS C SHARES" on Page A-14 of the Prospectus:
"EXCHANGES INVOLVING CLASS B AND CLASS C SHARES. A contingent deferred
sales charge will not be imposed in connection with exchanges among Class B
or among Class C shares. For purposes of determining a shareholder's
holding period of Class B or Class C shares in the calculation of the
applicable contingent deferred sales charge, the period of time during
which Class B or Class C shares were held prior to an exchange will be
added to the holding period of the applicable Class B or C shares acquired
in an exchange. We will begin the holding period for purposes of
calculating the CDSC on Class B shares or Class C shares acquired by
exchange from AIM Cash Reserve Shares of AIM Money Market Fund at the time
of the exchange into Class B shares or Class C shares. "
