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INSTITUTIONAL CLASS OF
AIM LIMITED MATURITY TREASURY FUND
Supplement dated October 1, 1999
to the Prospectus dated November 18, 1998
The following section replaces in its entirety the eighth full paragraph
appearing under the heading "INVESTMENT PROGRAM-INVESTMENT POLICIES" 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 the 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 POLICIES -- 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 OF THE TRUST-PORTFOLIO MANAGEMENT" on page 12 of the
Prospectus:
"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. "
