<PAGE> 1
AIM ASIAN GROWTH FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated March 1,1999,
as revised September 27, 1999
and as supplemented December 21, 1999
This supplement supersedes and replaces in its entirety the supplemented
dated December 21, 1999.
At a meeting held on February 3, 2000, the Board of Directors of AIM
International Funds, Inc. (the company), on behalf of AIM Asian Growth Fund
(the fund), voted to request shareholders to approve the following items
that will affect the fund:
- - An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- - A new advisory agreement between the company and A I M Advisors,
Inc. (AIM). The principal changes to the advisory agreement are
(i) the deletion of references to the provision of administrative
services and certain expense limitations that are no longer
applicable, and (ii) the clarification of provisions relating to
delegations of responsibilities and the non-exclusive nature of
AIM's services. The revised advisory agreement does not change the
fees paid by the fund (except that the agreement permits the fund
to pay a fee to AIM in connection with any new securities lending
program implemented in the future);
- - Changing the fund's fundamental investment restrictions. The
proposed revisions to the fund's fundamental investment
restrictions are described in a supplement to the fund's statement
of additional information; and
- - Changing the fund's investment objective so that it is
non-fundamental. If the investment objective of the fund becomes
non-fundamental, it can be changed in the future by the Board of
Directors of the company without further approval by shareholders.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be
entitled to vote at the meeting. Proposals that are approved are expected
to become effective on or about May 22, 2000.
Effective March 1, 2000, the following replaced in its entirety the second
paragraph appearing under the heading "INVESTMENT OBJECTIVE AND STRATEGIES"
on page 1 of the Prospectus:
"The fund seeks to meet this objective by investing, normally, at
least 65% of its assets in marketable equity securities issued by
Asian companies (except Japanese companies), including companies
with market capitalizations of less than $1 billion. The fund
considers Asian companies to be those (1) organized under the laws
of a country in Asia and having a principal office in a country in
Asia; (2) that derive 50% or more of their total revenues from
business in Asia; or (3) whose equity securities are traded
principally on a stock exchange, or in an over-the-counter market,
in Asia."
<PAGE> 2
AIM EUROPEAN DEVELOPMENT FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated March 1, 1999,
as revised September 27, 1999
At a meeting held on February 3, 2000, the Board of Directors of AIM
International Funds, Inc. (the company), on behalf of AIM European
Development Fund (the fund), voted to request shareholders to approve the
following items that will affect the fund:
- - An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- - A new advisory agreement between the company and A I M Advisors,
Inc. (AIM). The principal changes to the advisory agreement are
(i) the deletion of references to the provision of administrative
services and certain expense limitations that are no longer
applicable, and (ii) the clarification of provisions relating to
delegations of responsibilities and the non-exclusive nature of
AIM's services. The revised advisory agreement does not change the
fees paid by the fund (except that the agreement permits the fund
to pay a fee to AIM in connection with any new securities lending
program implemented in the future);
- - Changing the fund's fundamental investment restrictions. The
proposed revisions to the fund's fundamental investment
restrictions are described in a supplement to the fund's statement
of additional information; and
- - Changing the fund's investment objective so that it is
non-fundamental. If the investment objective of the fund becomes
non-fundamental, it can be changed in the future by the Board of
Directors of the company without further approval by shareholders.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be
entitled to vote at the meeting. Proposals that are approved are expected
to become effective on or about May 26, 2000.
<PAGE> 3
AIM GLOBAL AGGRESSIVE GROWTH FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated March 1, 1999,
as revised December 28, 1999
At a meeting held on February 3, 2000, the Board of Directors of AIM
International Funds, Inc. (the company), on behalf of AIM Global Aggressive
Growth Fund (the fund), voted to request shareholders to approve the
following items that will affect the fund:
- - An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- - A new advisory agreement between the company and A I M Advisors,
Inc. (AIM). The principal changes to the advisory agreement are
(i) the deletion of references to the provision of administrative
services and certain expense limitations that are no longer
applicable, and (ii) the clarification of provisions relating to
delegations of responsibilities and the non-exclusive nature of
AIM's services. The revised advisory agreement does not change the
fees paid by the fund (except that the agreement permits the fund
to pay a fee to AIM in connection with any new securities lending
program implemented in the future);
- - Changing the fund's fundamental investment restrictions. The
proposed revisions to the fund's fundamental investment
restrictions are described in a supplement to the fund's statement
of additional information; and
- - Changing the fund's investment objective so that it is
non-fundamental. If the investment objective of the fund becomes
non-fundamental, it can be changed in the future by the Board of
Directors of the company without further approval by shareholders.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be
entitled to vote at the meeting. Proposals that are approved are expected
to become effective on or about May 26, 2000.
<PAGE> 4
AIM GLOBAL GROWTH FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated March 1, 1999,
as revised November 8, 1999
At a meeting held on February 3, 2000, the Board of Directors of AIM
International Funds, Inc. (the company), on behalf of AIM Global Growth
Fund (the fund), voted to request shareholders to approve the following
items that will affect the fund:
- - An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- - A new advisory agreement between the company and A I M Advisors,
Inc. (AIM). The principal changes to the advisory agreement are
(i) the deletion of references to the provision of administrative
services and certain expense limitations that are no longer
applicable, and (ii) the clarification of provisions relating to
delegations of responsibilities and the non-exclusive nature of
AIM's services. The revised advisory agreement does not change the
fees paid by the fund (except that the agreement permits the fund
to pay a fee to AIM in connection with any new securities lending
program implemented in the future);
- - Changing the fund's fundamental investment restrictions. The
proposed revisions to the fund's fundamental investment
restrictions are described in a supplement to the fund's statement
of additional information; and
- - Changing the fund's investment objective so that it is
non-fundamental. If the investment objective of the fund becomes
non-fundamental, it can be changed in the future by the Board of
Directors of the company without further approval by shareholders.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be
entitled to vote at the meeting. Proposals that are approved are expected
to become effective on or about May 26, 2000.
<PAGE> 5
AIM GLOBAL INCOME FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated March 1,1999,
as revised November 5, 1999 and
as supplemented January 24, 2000
This supplement supersedes and replaces in its entirety the supplement
dated January 24, 2000.
At a meeting held on February 3, 2000, the Board of Directors of AIM
International Funds, Inc. (the company), on behalf of AIM Global Income
Fund (the fund), voted to request shareholders to approve the following
items that will affect the fund:
- - An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- - A new advisory agreement between the company and A I M Advisors,
Inc. (AIM). The principal changes to the advisory agreement are
(i) the deletion of references to the provision of administrative
services and certain expense limitations that are no longer
applicable, and (ii) the clarification of provisions relating to
delegations of responsibilities and the non-exclusive nature of
AIM's services. The revised advisory agreement does not change the
fees paid by the fund (except that the agreement permits the fund
to pay a fee to AIM in connection with any new securities lending
program implemented in the future);
- - Changing the fund's fundamental investment restrictions. The
proposed revisions to the fund's fundamental investment
restrictions are described in a supplement to the fund's statement
of additional information; and
- - Changing the fund's investment objective so that it is
non-fundamental. The investment objective of the fund would be
changed by deleting references to the types of securities that the
fund will purchase to achieve its objective of long-term growth of
capital. If the investment objective of the fund becomes
non-fundamental, it can be changed in the future by the Board of
Directors of the company without further approval by shareholders.
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be
entitled to vote at the meeting. Proposals that are approved are expected
to become effective on or about May 26, 2000.
The sixth paragraph appearing under the heading "PRINCIPAL RISKS OF
INVESTING IN THE FUND" on page 2 of the prospectus is deleted in its
entirety.
The following replaces in its entirety the paragraph appearing under the
heading "PERFORMANCE INFORMATION" on page 3 of the prospectus:
"The bar chart and table shown below provide an indication of the
risks of investing in the fund. The fund's past performance is not
necessarily an indication of its future performance."
The fourth paragraph appearing under the heading "FINANCIAL HIGHLIGHTS" on
page 6 of the prospectus is deleted in its entirety.
<PAGE> 6
AIM INTERNATIONAL EQUITY FUND
CLASS A, CLASS B AND CLASS C SHARES
Supplement dated February 4, 2000
to the Prospectus dated March 1, 1999,
as revised October 8, 1999
At a meeting held on February 3, 2000, the Board of Directors of AIM
International Funds, Inc. (the company), on behalf of AIM International
Equity Fund (the fund), voted to request shareholders to approve the
following items that will affect the fund:
- - An Agreement and Plan of Reorganization which provides for the
reorganization of the company, which is currently a Maryland
corporation, as a Delaware business trust;
- - A new advisory agreement between the company and A I M Advisors,
Inc. (AIM). The principal changes to the advisory agreement are
(i) the deletion of references to the provision of administrative
services and certain expense limitations that are no longer
applicable, and (ii) the clarification of provisions relating to
delegations of responsibilities and the non-exclusive nature of
AIM's services. The revised advisory agreement does not change the
fees paid by the fund (except that the agreement permits the fund
to pay a fee to AIM in connection with any new securities lending
program implemented in the future);
- - Changing the fund's fundamental investment restrictions. The
proposed revisions to the fund's fundamental investment
restrictions are described in a supplement to the fund's statement
of additional information; and
- - Changing the fund's investment objective and making it
non-fundamental. The investment objective of the fund would be
changed by deleting references to the types of securities that the
fund will purchase to achieve its objective. If the investment
objective of the fund becomes non-fundamental, it can be changed
in the future by the Board of Directors of the company without
further approval by shareholders. Pursuant to this proposal, the
fund's investment objective would read: "The fund's investment
objective is to provide long-term growth of capital."
The Board of Directors of the company has called a meeting of the fund's
shareholders to be held on or about May 3, 2000 to vote on these and other
proposals. Only shareholders of record as of February 18, 2000 will be
entitled to vote at the meeting. Proposals that are approved are expected
to become effective on or about May 26, 2000.
<PAGE> 7
AIM ASIAN GROWTH FUND
AIM EUROPEAN DEVELOPMENT FUND
AIM GLOBAL AGGRESSIVE GROWTH FUND
AIM GLOBAL GROWTH FUND
AIM GLOBAL INCOME FUND
AIM INTERNATIONAL EQUITY FUND
(SERIES PORTFOLIOS OF AIM INTERNATIONAL FUNDS, INC.)
Supplement dated February 4, 2000
to the Statement of Additional Information dated March 1, 1999
as revised October 1, 1999, and as supplemented
December 21, 1999 and January 24, 2000
At a meeting held on February 3, 2000, the Board of Directors of AIM
International Funds, Inc. (the "Company"), on behalf of its series portfolios
(the "Funds"), voted to request shareholder approval to amend the Funds'
fundamental investment restrictions. The Board of Directors has called a meeting
of the Funds' shareholders to be held on or about May 3, 2000. Only shareholders
of record as of February 18, 2000 are entitled to vote at the meeting. Proposals
that are approved are expected to become effective on or about May 22, 2000.
If shareholders approve the proposal to amend the Funds' fundamental investment
restrictions, each of Asian Fund, European Fund, Aggressive Growth Fund, Growth
Fund, Income Fund and Equity Fund will operate under the following fundamental
investment restrictions:
Each Fund is subject to the following investment restrictions, which may be
changed only by a vote of a majority of such Fund's outstanding shares, except
that Income Fund is not subject to restriction (a):
(a) the Fund is a "diversified company" as defined in the 1940 Act.
The Fund will not purchase the securities of any issuer if, as a result,
the Fund would fail to be a diversified company within the meaning of the
1940 Act, and the rules and regulations promulgated thereunder, as such
statute, rules and regulations are amended from time to time or are
interpreted from time to time by the SEC staff (collectively, the 1940 Act
laws and interpretations) or except to the extent that the Fund may be
permitted to do so by exemptive order or similar relief (collectively, with
the 1940 Act laws and interpretations, the 1940 Act laws, interpretations
and exemptions). In complying with this restriction, however, the Fund may
purchase securities of other investment companies to the extent permitted
by the 1940 Act laws, interpretations and exemptions.
(b) the Fund may not borrow money or issue senior securities, except
as permitted by the 1940 Act laws, interpretations and exemptions.
(c) the Fund may not underwrite the securities of other issuers. This
restriction does not prevent the Fund from engaging in transactions
involving the acquisition, disposition or resale of its portfolio
securities, regardless of whether the Fund may be considered to be an
underwriter under the Securities Act of 1933.
(d) the Fund will not make investments that will result in the
concentration (as that term may be defined or interpreted by the 1940 Act
laws, interpretations and exemptions) of its investments in the securities
of issuers primarily engaged in the same industry. This restriction does
not limit the Fund's investments in (i) obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities (ii) tax-exempt
obligations issued by governments or political subdivisions of governments.
In complying with this restriction, the Fund will not consider a
bank-issued guaranty or financial guaranty insurance as a separate
security.
(e) the Fund may not purchase real estate or sell real estate unless
acquired as a result of ownership of securities or other instruments. This
restriction does not prevent the Fund from investing in issuers that
invest, deal, or otherwise engage in transactions in real estate or
interests therein, or investing in securities that are secured by real
estate or interests therein.
1
<PAGE> 8
(f) the Fund may not purchase physical commodities or sell physical
commodities unless acquired as a result of ownership of securities or other
instruments. This restriction does not prevent the Fund from engaging in
transactions involving futures contracts and options thereon or investing
in securities that are secured by physical commodities.
(g) the Fund may not make personal loans or loans of its assets to
persons who control or are under common control with the Fund, except to
the extent permitted by 1940 Act laws, interpretations and exemptions. This
restriction does not prevent the Fund from, among other things, purchasing
debt obligations, entering into repurchase agreements, loaning its assets
to broker-dealers or institutional investors, or investing in loans,
including assignments and participation interests.
(h) the Fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company with substantially the same
fundamental investment objectives, policies and restrictions as the Fund.
The investment restrictions set forth above provide the Funds with the ability
to operate under new interpretations of the 1940 Act or pursuant to exemptive
relief from the SEC without receiving prior shareholder approval of the change.
Even though the Funds have this flexibility, the Board of Directors has adopted
internal guidelines for each Fund relating to certain of these restrictions
which the adviser must follow in managing the Funds. Any changes to these
guidelines, which are set forth below, require the approval of the Board of
Directors.
1. In complying with the fundamental restriction regarding issuer
diversification, the Fund will not, with respect to 75% of its total
assets, purchase securities of any issuer (other than securities
issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities), if, as a result, (i) more than 5% of the Fund's
total assets would be invested in the securities of that issuer, or
(ii) the Fund would hold more than 10% of the outstanding voting
securities of that issuer. The Fund may (i) purchase securities of
other investment companies as permitted by Section 12(d)(1) of the
1940 Act and (ii) invest its assets in securities of other money
market funds and lend money to other investment companies and their
series portfolios that have AIM as an investment adviser, subject to
the terms and conditions of any exemptive orders issued by the SEC.
(This restriction does not apply to Income Fund.)
2. In complying with the fundamental restriction regarding borrowing
money and issuing senior securities, the Fund may borrow money in an
amount not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). The Fund may
borrow from banks, broker/dealers or other investment companies or
their series portfolios that have AIM or an affiliate of AIM as an
investment advisor (an AIM fund). The Fund may not borrow for
leveraging, but may borrow for temporary or emergency purposes, in
anticipation of or in response to adverse market conditions, or for
cash management purposes. The Fund may not purchase additional
securities when any borrowings from banks exceed 5% of the Fund's
total assets.
3. In complying with the fundamental restriction regarding industry
concentration, the Fund may invest up to 25% of its total assets in
the securities of issuers whose principal business activities are in
the same industry.
4. In complying with the fundamental restriction with regard to making
loans, the Fund may lend up to 33 1/3% of its total assets and may
lend money to another AIM fund, on such terms and conditions as the
SEC may require in an exemptive order.
5. Notwithstanding the fundamental restriction with regard to investing
all assets in an open-end fund, the Fund may not invest all of its
assets in the securities of a single open-end management investment
company with the same fundamental investment objectives, policies and
limitations as the Fund.
If a percentage restriction is adhered to at the time of investment, a later
change in percentage resulting from changes in values of assets will not be
considered a violation of the restriction.
2
<PAGE> 9
Effective immediately, the following paragraph is added at the top of page 26 of
the Statement of Additional Information:
"EQUITY-LINKED DERIVATIVES
Each of the funds other than Income Fund may invest in equity-linked
derivative products designed to replicate the composition and performance
of particular indices. Examples of such products include S&P Depositary
Receipts ("SPDRs"), World Equity Benchmark Series ("WEBs"), NASDAQ 100
tracking shares ("QQQs"), Dow Jones Industrial Average Instruments
("DIAMONDS") and Optomised Portfolios as Listed Securities ("OPALS").
Investments in equity-linked derivatives involve the same risks associated
with a direct investment in the types of securities included in the indices
such products are designed to track. There can be no assurance that the
trading price of the equity-linked derivatives will equal the underlying
value of the basket of securities purchased to replicate a particular index
or that such basket will replicate the index. Investments in equity-linked
derivatives may constitute investment in other investment companies. See
"Investment in Other Investment Companies.""
Effective immediately, the following replaces in its entirety the paragraph
appearing under the HEADING "INVESTMENT STRATEGIES AND RISKS - INVESTMENT IN
OTHER INVESTMENT COMPANIES" on page 26 of the Statement of Additional
Information:
"Each of the Funds 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 following restrictions
apply to investments in other investment companies other than Affiliated
Money Market Funds (defined below): (i) a Fund may not purchase more than
3% of the total outstanding voting stock of another investment company;
(ii) a Fund may not invest more than 5% of its total assets in securities
issued by another investment company; and (iii) a Fund may not invest more
than 10% of its total assets in securities issued by other investment
companies other than Affiliated Money Market Funds. With respect to a
Fund's purchase of shares of another investment company, including
Affiliated Money Market Funds, the Fund will indirectly bear its
proportionate share of the advisory fees and other operating expenses of
such investment company. The Funds have obtained an exemptive order from
the SEC allowing them 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 a 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."
3
