2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
On November 24, 2005, AIM filed prospectus stickers announcing 6 proposed fund
mergers. The information below lists the funds proposed for merger, general and
fund specific questions and answers.
The information contained in this document can be found in the definitive proxy
statements dated January 9, 2006.
Selling Fund (Target) Buying Fund (Acquiring)
--------------------- -----------------------
AIM Aggressive Growth Fund* AIM Constellation Fund
AIM Weingarten Fund AIM Constellation Fund
AIM Blue Chip Fund AIM Large Cap Growth Fund
AIM Mid Cap Growth Fund AIM Dynamics Fund
AIM Small Company Growth Fund AIM Small Cap Growth Fund
AIM Premier Equity Fund AIM Charter Fund
* Contingent upon the completion of the AIM Aggressive Growth reorganization,
AIM Aggressive Growth Fund 529 Portfolio will reorganize into AIM
Constellation Fund 529 Portfolio effective March 13, 2006.
REASONS FOR THE PROPOSED MERGERS
For the following reasons, AIM believes the proposed mergers are in the best
interest of shareholders.
- - The larger combined asset base of each surviving fund after the
reorganizations may help the fund to achieve operating efficiencies.
- - In most of the proposed mergers, the respective portfolio managers of the
acquiring funds serve on the management teams of the funds to be acquired
and are already familiar with the investment products and processes in each
of the proposed mergers.
- - More specific details on the benefits of individual mergers can be found in
the fund specific section of this Q&A or in the proxy statement for that
merger.
FACTORS THE TRUSTEES CONSIDERED WHEN EVALUATING THE MERGERS
AIM initially proposed that the Trustees consider the mergers at an in-person
meeting held on October 27, 2005, at which preliminary discussions of the
mergers took place. The Trustees of each target fund determined that the mergers
are advisable and in the best interests of each target fund and will not dilute
the interests of each target fund's shareholders. The Trustees approved the
mergers at a telephonic meeting on November 14, 2005.
In evaluating each of the mergers, the Trustees considered a number of factors
regarding the target and acquiring funds, including:
- - Investment objective and principal investment strategies
- - Comparative expenses of each fund and pro forma expenses of buying fund
after giving effect to each merger
- - Comparative performance
- - Comparative sizes of each fund
- - The consequences of the mergers for Federal income tax purposes, including
the treatment of any unrealized capital gains and capital loss
carryforwards, if any, available to offset future capital gains of each
target and acquiring fund
- - Any fees and expenses that will be borne directly or indirectly by each
target or acquiring fund
- - The projected financial impact to AIM and its affiliates
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
KEY DATES
- - November 14, 2005: Board approves proposed mergers
- - December 2, 2005: Record date for shareholder proxy inclusion
- - January 9, 2006: Date of definitive proxy statement filed with SEC
- - January 5-11, 2006: Print proxies
- - January 12-16, 2006: Mail proxies
- - TBD: Close target funds to new investors (actual closing date depends on
when sufficient shareholder votes have been received approving merger)
- - February 28, 2006: Shareholder meeting
- - March 10 & 24, 2006: Valuation Dates of the Mergers (last NAV):
- - March 13 & 27, 2006: Mergers close (3/13- Weingarten, Aggressive Growth and
Blue Chip, 3/27- Premier Equity, Small Company Growth and Mid Cap Growth)
NUMBER OF ACCOUNTS AFFECTED
FUND ACCOUNTS AS OF 7/31/05
- ---- ----------------------
AIM Aggressive Growth Fund 237,692
AIM Weingarten Fund 343,754
AIM Blue Chip Fund 375,805
AIM Mid Cap Growth Fund 34,244
AIM Small Company Growth Fund 93,013
AIM Premier Equity Fund 889,384
METHODS OF COMMUNICATION
- - Press Release announcing Trustee approval of soliciting shareholders for
merger initiatives
- - Fast Faxes to Home Offices and Back Offices announcing:
- Proxy mailing
- If shareholders approve fund merger / date funds will close to new
investors / merger date
- Final distributions and merger factors
- - Public Q&A on how to vote included in proxy and available on
AIMInvestments.com
- - E-Alert to advisors announcing:
- Trustee approval of soliciting shareholders for merger initiatives
- Proxy mailing
- If shareholders approve fund merger / date funds will close to new
investors / merger date
- Final distributions and merger factors
- - Advisor Proxy Update
- - Literature updates
- - Prospectus / SAI Stickers
- - Transaction Confirms
- - E-Alert to advisors announcing completion of mergers
- - Final distributions and merger factors available on AIMInvestments.com
For a complete communication plan including communication activity, task
coordinator, target dates and statuses, please see the communication plan on the
Product Development website.
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
MERGER TRANSACTION EXAMPLE
The investor will receive the closing share price for the surviving fund on the
valuation date (March 10 or 24, 2006) of the merger. The balance of the account
in the reorganizing fund will be calculated at NAV on March 10 or 24, and the
total amount will be invested in the surviving fund at the appropriate
conversion rate to determine the number of shares in the surviving fund the
shareholder will receive. This is not a taxable event for the shareholder.
EXAMPLE: If, at the close of business on March 10, 2006
[ ] AIM Aggressive Growth Fund's NAV = $11.23
[ ] AIM Constellation Fund's NAV = $25.42
[ ] 11.23 / 25.42 = 0.4417781 (merger ratio)
1,000 shares of AIM Aggressive Growth Fund will equate to 441.778 shares of AIM
Constellation Fund at 8:00 a.m. EST on March 13, 2006.
ACCOUNT VALUES
Although the NAV's may be different, shareholders will receive a number of
shares in the surviving fund with a value equal to the value of their account in
the target fund on the effective date of the merger.
TAX IMPLICATIONS
The mergers have been structured as tax-free transactions. Each target fund will
receive an opinion of Ballard Spahr Andrews & Ingersoll, LLP to the effect that
the merger will constitute a tax-free merger for federal income tax purposes.
However, please note that there may be capital gains or dividends distributed to
shareholders of the target fund just prior to the merger that may present tax
consequences to the shareholders.
In certain cases, the surviving fund may be limited in utilizing capital loss
carryforwards that were recognized as of the merger date by one or both funds.
OTHER INITIATIVES INCLUDED IN THE PROXIES
There are no other initiatives that AIM is requesting approval for.
PROSPECTUS DELIVERY
The prospectus of the surviving fund is attached to the proxy statement that
will be mailed to the target funds' shareholders on or about January 12, 2006.
CONFIRMATION STATEMENTS
Pending shareholder approval, confirmation statements for the mergers will be
mailed to those shareholders in the funds to be merged away 2-3 days following
the merger effective dates. Shareholders will also receive a first quarter 2006
statement around the first week in April. Advisors will also receive copies of
confirmation statements; however, AIM has discontinued production of periodic
dealer statements.
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
SHAREHOLDERS NOT WISHING TO INVEST IN THE SURVIVING FUND
Shareholders may exercise their privilege to exchange into another AIM Fund.
Should a shareholder not wish to exchange into another AIM Fund, he or she may
redeem at any time. However, any applicable CDSC will be charged on redemptions.
POST-MERGER SHAREHOLDER COMMUNICATIONS
Shareholders will receive a confirmation immediately following the close of the
merger accompanied by a letter from AIM President, Robert H. Graham.
ACCOUNT FEATURES (E.G. AUTOMATIC INVESTMENTS AND SYSTEMATIC WITHDRAWALS)?
All features will carry over to the account in the surviving fund.
ADVISORY FEES
AIM's uniform fee schedules are designed so that as a fund's assets increase the
advisory fees decrease, as a percentage of average daily net assets. As a result
of the merger, the combined assets may achieve a more advantageous uniform fee
schedule breakpoint, thus resulting in lower advisory fees, as a percentage of
average daily net assets. The shareholder will be subject to the advisory fee of
the acquiring fund, then in effect. Please see the individual merger proxy for
specific information on the pro forma fees and expenses.
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
Detailed information on the mergers, including board considerations, performance
and expenses, can be found in the definitive proxy statements dated January 9,
2006.
AIM AGGRESSIVE GROWTH FUND
THE MERGER OF AIM AGGRESSIVE GROWTH FUND INTO AIM CONSTELLATION FUND IS
CONTINGENT ON SHAREHOLDER APPROVAL OF AIM WEINGARTEN FUND INTO AIM CONSTELLATION
FUND. THE MERGER OF AIM WEINGARTEN FUND INTO AIM CONSTELLATION FUND IS NOT
CONTINGENT ON SHAREHOLDER APPROVAL OF AIM AGGRESSIVE GROWTH FUND INTO AIM
CONSTELLATION FUND.
REASONS FOR SELECTING AIM CONSTELLATION FUND AS THE ACQUIRING FUND
AIM proposed the AIM Aggressive Growth Fund Reorganization, together with the
AIM Weingarten Fund Reorganization, as part of an effort to consolidate the AIM
Funds' growth fund offerings. In considering the AIM Aggressive Growth Fund
Reorganization, the Board noted that the funds have similar investment
objectives and are managed using similar investment strategies. In addition, AIM
Constellation Fund's long-term performance track record is better than AIM
Aggressive Growth Fund's and the expenses of the combined fund are expected to
be lower than those of AIM Aggressive Growth Fund.
The Board noted that since September 16, 2005, both AIM Aggressive Growth Fund
and AIM Constellation Fund have been managed by the same lead portfolio manager
and portfolio management team using similar investment strategies. Although AIM
Constellation Fund and AIM Aggressive Growth Fund only had approximately 20%
portfolio overlap as of July 31, 2005, the amount of portfolio overlap between
the funds is expected to increase because the same portfolio management team now
manages both funds using similar investment strategies. The Board noted that AIM
Aggressive Growth Fund is currently positioned as a small- to mid-cap growth
fund, whereas AIM Constellation Fund has a multi-cap discipline focusing on
mid-and large-cap stocks. Thus, AIM Aggressive Growth Fund shareholders may lose
most of their current small-cap exposure in AIM Constellation Fund's investment
process.
The Board also noted that consummation of the AIM Aggressive Growth Fund
Reorganization is conditioned on consummation of the AIM Weingarten Fund
Reorganization. If the AIM Weingarten Fund Reorganization is not consummated,
the asset retention requirements for small cap stocks necessary to maintain the
tax-free nature of the AIM Aggressive Growth Fund Reorganization could unduly
limit the portfolio manager's flexibility in managing the combined fund because
a disproportionately large percentage of the assets of the combined fund could
be required to be held in small cap stocks.
In 2005 AIM reorganized and consolidated the management teams of the AIM Funds
managed in the growth style. The Reorganizations are intended to further combine
similar funds within that style space which are now managed by the same
portfolio management teams.
OBJECTIVES AND INVESTMENT STRATEGIES
AIM Aggressive Growth Fund, AIM Weingarten fund and AIM Constellation Fund have
similar investment objectives. AIM Weingarten Fund and AIM Constellation Fund
seek growth of capital, while AIM Aggressive Growth Fund seeks long-term growth
of capital. AIM Aggressive Growth Fund, AIM Weingarten Fund and AIM
Constellation Fund also invest in similar types of securities. All three funds
invest primarily in common stocks of companies with above-average long-term
growth in earnings and excellent prospects for future growth. However, AIM
Aggressive Growth Fund invests in small and medium-sized growth companies and
AIM Weingarten Fund invests in seasoned, better capitalized companies, while AIM
Constellation Fund may invest without regard to capitalization. AIM
Constellation Fund also has the ability to use leverage, although its portfolio
management team does not currently do so.
The chart below provides a summary for comparison purposes of the investment
objectives and principal investment strategies of AIM Aggressive Growth Fund,
AIM Weingarten Fund and AIM Constellation Fund.
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
AIM AGGRESSIVE GROWTH FUND AIM WEINGARTEN FUND AIM CONSTELLATION FUND
(SELLING FUND) (SELLING FUND) (BUYING FUND)
- ------------------------------------- ------------------------------------- -----------------------------------
INVESTMENT OBJECTIVES
- - Long-term growth of capital - Growth of capital - Growth of capital
INVESTMENT STRATEGIES
- - Invests primarily in common - Invests in common stocks of - Invests principally in
stocks of small and medium-sized seasoned and better capitalized common stocks, without regard
growth companies. companies. to market capitalization.
- - Portfolio managers focus on - Portfolio managers focus on - Invests in common stocks
companies that are likely to companies that have experienced of companies the portfolio
benefit from new or innovative above-average growth in earnings managers believe are likely to
products, services or processes and have excellent prospects for benefit from new or innovative
as well as those that have future growth. products, services or
experienced above-average, processes as well as those
long-term growth in earnings and that have experienced above
have excellent prospects for average, long-term growth in
future growth. earnings and have excellent
prospects for future growth.
- - May also invest up to 25% of - May also invest up to 20% of - May also invest up to 20%
its total assets in foreign its total assets in foreign of its total assets in foreign
securities. securities. securities.
PORTFOLIO MANAGEMENT
AIM Aggressive Growth Fund AIM Constellation Fund
- -------------------------- ----------------------
Lanny H. Sachnowitz (LEAD) Lanny H. Sachnowitz (LEAD)
Kirk L. Anderson Kirk L. Anderson
James G. Birdsall James G. Birdsall
Asst by Large/Multi-Cap Growth Team Robert J. Lloyd
Asst by Large/Multi-Cap Growth Team
AIM Aggressive Growth Fund and AIM Constellation Fund have been managed by the
same team since 9/16/05.
HISTORICAL PERFORMANCE
Although AIM Aggressive Growth Fund has recently provided better returns, AIM
Constellation Fund has provided better long-term returns to its shareholders.
Average Annual Total Returns as of 7/31/05*
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION INCEPTION DATE
------ ------ ------- --------------- ---------------
AIM AGGRESSIVE GROWTH A SHARES 19.17% -5.28% 5.67% 11.89% 5/1/84
AIM CONSTELLATION A SHARES 14.02% -7.60% 5.03% 14.38% 4/30/76
* Performance at NAV
PERFORMANCE SURVIVOR
The Board determined that it was appropriate for AIM Constellation Fund to be
the surviving fund in the AIM Aggressive Growth Fund Reorganization primarily
because although AIM Aggressive Growth Fund and AIM Constellation Fund currently
have overlapping management teams, the portfolio composition of the combined
fund is expected to be more like that of AIM Constellation Fund over time, and
the investment style that AIM Constellation Fund's management team currently
utilizes to manage AIM Constellation Fund will apply to the combined fund after
the AIM Aggressive Growth Fund Reorganization. Consequently, the Board
determined that AIM Constellation Fund's performance track record more
accurately reflects the results of the investment process that the combined fund
will utilize after the AIM Aggressive Growth Fund Reorganization.
FUND ASSETS
As of July 31, 2005, AIM Constellation Fund had net assets of approximately $5.8
billion, compared to net assets for AIM Aggressive Growth Fund of approximately
$1.8 billion.
EXPENSES
ANNUAL FUND OPERATING EXPENSES (AS A % OF AVERAGE NET ASSETS) FOR A SHARES
The following table shows annual operating expenses for both reorganizing funds,
as well as estimates of expenses for the combined fund, giving effect to the
reorganizations of AIM Weingarten Fund and AIM Aggressive Growth into AIM
Constellation Fund.
AIM AGGRESSIVE AIM WEINGARTEN FUND AIM CONSTELLATION COMBINED PRO FORMA
GROWTH FUND A SHARES A SHARES (%) FUND A SHARES A SHARES (%)
(%) (10/31/04 ) (10/31/04 AS RESTATED) (%) (10/31/04 AS RESTATED) (10/31/04)
-------------------- ---------------------- -------------------------- ------------------
MANAGEMENT FEES 0.64 0.64 0.63 0.63
RULE 12B-1 FEES 0.25 0.25 0.25 0.25
OTHER EXPENSES 0.41 0.46 0.36 0.36
TOTAL EXPENSES 1.30 1.35 1.24 1.24
FEE WAIVERS -- -- 0.03 0.05
TOTAL NET EXPENSES 1.30 1.35 1.21 1.19
- - Effective upon the closing of the Reorganization, the Board approved a
permanent reduction of the advisory fees of the AIM Constellation Fund to
0.80% of the first $150 million, plus 0.625% of the Fund's average daily
net assets in excess of $150 million.
- - Effective July 1, 2005, the Board of Trustees has approved a permanent
reduction of the Rule 12b-1 fees applicable to Class A shares of AIM
Weingarten Fund and AIM Constellation Fund to 0.25%. Distribution and/or
Service (12b-1) Fees reflect this agreement.
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Weingarten Fund has contractually agreed to waive a portion of its advisory
fees to the extent necessary so that the advisory fees payable by the Fund
(based on the Fund's average daily net assets) do not exceed the annual
uniform fee schedule rate of 0.695% of the first $250 million, plus 0.67%
of the next $250 million, plus 0.645% of the next $500 million, plus 0.62%
of the next $1.5 billion, plus 0.595% of the next $2.5 billion, plus 0.57%
of the next $2.5 billion, plus 0.545% of the next $2.5 billion, plus 0.52%
of the Fund's daily net assets in excess of $10 billion. The Fee Waiver
reflects this agreement.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Constellation Fund has contractually agreed to waive a portion of its
advisory fees to the extent necessary so that the advisory fees payable by
the Fund (based on the Fund's average daily net assets) do not exceed the
annual uniform fee schedule rate of 0.75% of the first $150 million, plus
0.615% of the next $4.85 billion, plus 0.57% of the next $2.5 billion, plus
0.545% of the next $2.5 billion, plus 0.52% of the Fund's daily net assets
in excess of $10 billion. The Fee Waiver reflects this agreement.
- - Effective upon the closing of the Reorganization, the advisor for AIM
Constellation Fund has contractually agreed to waive a portion of its
advisory fees for the period January 1, 2005 through December 31, 2009, to
the extent necessary so that the advisory fees payable by the Fund (based
on the Fund's average daily net assets) do not exceed the annual uniform
fee schedule rate of 0.695% of the first $250 million, plus 0.615% of the
next $4 billion, plus 0.595% of the next $750 million, plus 0.57% of the
next $2.5 billion, plus 0.545% of the next $2.5 billion, plus 0.52% of the
Fund's daily net assets in excess of $10 billion. The Fee Waiver reflects
this agreement.
- - At the request of the Board of Trustees, AMVESCAP (as defined herein) has
agreed to reimburse AIM Aggressive Growth Fund, AIM Weingarten Fund and AIM
Constellation Fund for expenses related to market timing matters.
- - AIM Aggressive Growth Fund and AIM Weingarten Fund may incur additional
expenses related to the Reorganizations.
MERGER COSTS
AIM Aggressive Growth Fund's expenses incurred in connection with the AIM
Aggressive Growth Fund Reorganization are expected to be approximately $957,000.
The Board noted AIM's proposal that AIM Aggressive Growth Fund bear 25% and AIM
bear 75% of AIM Aggressive Growth Fund's costs in connection with the AIM
Aggressive Growth Fund Reorganization and concluded it was appropriate for AIM
Aggressive Growth Fund to bear such portion of the expenses in light of the
decrease in expenses that are expected to result from the AIM Aggressive Growth
Fund Reorganization. AIM Constellation Fund's expenses to be incurred in
connection with the AIM Aggressive Growth Fund Reorganization are expected to be
approximately $30,000. AIM Constellation Fund will bear its costs and expenses
incurred in connection with the AIM Aggressive Growth Fund Reorganization.
SHARE CLASSES
CLASSES OF SHARES OF AIM CLASSES OF SHARES OF
AGGRESSIVE GROWTH FUND AIM CONSTELLATION FUND
- ------------------------ ----------------------
Class A Class A
Class B Class B
Class C Class C
Class R Class R
Institutional Class Institutional Class
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
AIM WEINGARTEN FUND
THE MERGER OF AIM AGGRESSIVE GROWTH FUND INTO AIM CONSTELLATION FUND IS
CONTINGENT ON SHAREHOLDER APPROVAL OF AIM WEINGARTEN FUND INTO AIM CONSTELLATION
FUND. THE MERGER OF AIM WEINGARTEN FUND INTO AIM CONSTELLATION FUND IS NOT
CONTINGENT ON SHAREHOLDER APPROVAL OF AIM AGGRESSIVE GROWTH FUND INTO AIM
CONSTELLATION FUND.
REASONS FOR SELECTING AIM CONSTELLATION FUND AS THE ACQUIRING FUND
AIM proposed the AIM Weingarten Fund Reorganization as part of an effort to
consolidate the AIM Funds' growth fund offerings. In considering the AIM
Weingarten Fund Reorganization, the Board noted that AIM Constellation Fund and
AIM Weingarten Fund have the same investment objectives, are managed using
similar investment strategies and invest in similar securities. In addition, AIM
Constellation Fund's long-term performance track record is better than AIM
Weingarten Fund's and the expenses of the combined fund are expected to be lower
than those of AIM Weingarten Fund.
The Board noted that since September 16, 2005, AIM Weingarten Fund and AIM
Constellation Fund have been managed using the same discipline by the same lead
portfolio manager and portfolio management team. The Board noted that because
AIM Weingarten Fund and AIM Constellation Fund have the same investment
objectives and similar investment strategies, there is significant portfolio
overlap between these two funds. As of July 31, 2005, approximately 64% of AIM
Weingarten Fund's total net assets were invested in securities AIM Constellation
Fund also owns.
In addition, the Board noted that AIM Weingarten Fund is currently positioned as
a large-cap growth fund, whereas AIM Constellation Fund has a multi-cap
discipline focusing on mid- and large-cap stocks. Thus, as a result of the AIM
Weingarten Fund Reorganization, AIM Weingarten Fund shareholders may lose some
exposure to large-cap stocks in AIM Constellation Fund's investment process.
In 2005 AIM reorganized and consolidated the management teams of the AIM Funds
managed in the growth style. The Reorganizations are intended to further combine
similar funds within that style space which are now managed by the same
portfolio management teams.
OBJECTIVES AND INVESTMENT STRATEGIES
AIM Aggressive Growth Fund, AIM Weingarten fund and AIM Constellation Fund have
similar investment objectives. AIM Weingarten Fund and AIM Constellation Fund
seek growth of capital, while AIM Aggressive Growth Fund seeks long-term growth
of capital. AIM Aggressive Growth Fund, AIM Weingarten Fund and AIM
Constellation Fund also invest in similar types of securities. All three funds
invest primarily in common stocks of companies with above-average long-term
growth in earnings and excellent prospects for future growth. However, AIM
Aggressive Growth Fund invests in small and medium-sized growth companies and
AIM Weingarten Fund invests in seasoned, better capitalized companies, while AIM
Constellation Fund may invest without regard to capitalization. AIM
Constellation Fund also has the ability to use leverage, although its portfolio
management team does not currently do so.
The chart below provides a summary for comparison purposes of the investment
objectives and principal investment strategies of AIM Aggressive Growth Fund,
AIM Weingarten Fund and AIM Constellation Fund.
AIM AGGRESSIVE GROWTH FUND AIM WEINGARTEN FUND AIM CONSTELLATION FUND
(SELLING FUND) (SELLING FUND) (BUYING FUND)
- ------------------------------------- ------------------------------------- -------------------------------------
INVESTMENT OBJECTIVES
- - Long-term growth of capital - Growth of capital - Growth of capital
INVESTMENT STRATEGIES
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - Invests primarily in common - Invests in common stocks of - Invests principally in common
stocks of small and medium-sized seasoned and better capitalized stocks, without regard to market
growth companies. companies. capitalization.
- - Portfolio managers focus on - Portfolio managers focus on - Invests in common stocks of
companies that are likely to companies that have experienced companies the portfolio managers
benefit from new or innovative above-average growth in earnings believe are likely to benefit
products, services or processes and have excellent prospects for from new or innovative products,
as well as those that have future growth. services or processes as well as
experienced above-average, those that have experienced
long-term growth in earnings and above average, long-term growth
have excellent prospects for in earnings and have excellent
future growth. prospects for future growth.
- - May also invest up to 25% of its - May also invest up to 20% of its - May also invest up to 20% of its
total assets in foreign total assets in foreign total assets in foreign
securities. securities. securities.
PORTFOLIO MANAGEMENT
AIM Weingarten Fund AIM Constellation Fund
- ------------------- ----------------------
Lanny H. Sachnowitz (LEAD) Lanny H. Sachnowitz (LEAD)
James G. Birdsall Kirk L. Anderson
Asst by Large/Multi-Cap Growth Team James G. Birdsall
Robert J. Lloyd
Asst by Large/Multi-Cap Growth Team
AIM Weingarten Fund and AIM Constellation Fund have been managed by the same
team since 9/16/05.
HISTORICAL PERFORMANCE
Although AIM Weingarten Fund has recently provided better returns, AIM
Constellation Fund has provided better long-term returns to its shareholders
than AIM Weingarten Fund.
Average Annual Total Returns as of 7/31/05*
SINCE INCEPTION
1-YEAR 5-YEAR 10-YEAR INCEPTION DATE
------ ------ ------- --------- ---------
AIM WEINGARTEN A SHARES 15.47 -12.56 3.70 11.68 6/17/69
AIM CONSTELLATION A SHARES 14.02 -7.60 5.03 14.38 4/30/76
* Performance at NAV
PERFORMANCE SURVIVOR
The Board determined that it was appropriate for AIM Constellation Fund to be
the surviving fund in the AIM Weingarten Fund Reorganization. The portfolio
composition, investment objectives and strategies, policies and restrictions of
the
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
combined fund will be those of AIM Constellation Fund. The expense structure of
AIM Constellation Fund is more similar to the expense structure of the combined
fund, and AIM Constellation Fund has significantly more assets than AIM
Weingarten Fund. Although the portfolio management team of the combined fund is
more like the team that has managed AIM Weingarten Fund since January 2002, the
anticipated utilization of AIM Constellation Fund's multi-cap strategy and
investment universe is a greater indicator that the combined fund will more
closely resemble AIM Constellation Fund than AIM Weingarten Fund in the future.
Although the management team of the combined fund will be more similar to the
team responsible for AIM Weingarten Fund, the Board determined that it was
appropriate for AIM Constellation Fund to be the surviving fund in the AIM
Weingarten Fund Reorganization. The Board determined AIM Constellation Fund
should be the surviving fund primarily because the portfolio composition of the
combined fund is expected to be more like that of AIM Constellation Fund and the
investment style AIM Constellation Fund's management team currently utilizes to
manage AIM Constellation Fund will apply to the combined fund after the AIM
Weingarten Fund Reorganization. Consequently, the Board determined that AIM
Constellation Fund's performance track record more accurately reflects the
results of the investment process that the combined fund will utilize after the
AIM Weingarten Fund Reorganization.
FUND ASSETS
As of July 31, 2005, AIM Constellation Fund had net assets of approximately $5.8
billion, compared to net assets for AIM Weingarten Fund of approximately $2.5
billion.
EXPENSES
ANNUAL FUND OPERATING EXPENSES (AS A % OF AVERAGE NET ASSETS) FOR A SHARES
The following table shows annual operating expenses for both reorganizing funds,
as well as estimates of expenses for the combined fund, giving effect to the
reorganization of only AIM Weingarten Fund into AIM Constellation Fund.
AIM WEINGARTEN FUND AIM CONSTELLATION
A SHARES (%) FUND A SHARES COMBINED PRO FORMA
(10/31/04 AS (%) (10/31/04 A SHARES (%)
RESTATED) AS RESTATED) (10/31/04)
------------------- ----------------- ------------------
MANAGEMENT FEES 0.64 0.63 0.63
RULE 12B-1 FEES 0.25 0.25 0.25
OTHER EXPENSES 0.46 0.36 0.36
TOTAL EXPENSES 1.35 1.24 1.24
FEE WAIVERS -- 0.03 0.04
TOTAL NET EXPENSES 1.35 1.21 1.20
- - Effective July 1, 2005, the Board of Trustees has approved a permanent
reduction of the Rule 12b-1 fees applicable to Class A shares to 0.25%.
Distribution and/or Service (12b-1) Fees reflect this agreement.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Weingarten Fund has contractually agreed to waive a portion of its advisory
fees to the extent necessary so that the advisory fees payable by the Fund
(based on the Fund's average daily net assets) do not exceed the annual
rate of 0.695% of the first $250 million, plus 0.67% of the next $250
million, plus 0.645% of the next $500 million, plus 0.62% of the next $1.5
billion, plus 0.595% of the next $2.5 billion, plus 0.57% of the next $2.5
billion, plus 0.545% of the next $2.5 billion, plus 0.52% of the Fund's
daily net assets in excess of $10 billion. The Fee Waiver reflects this
agreement.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Constellation Fund has contractually agreed to waive a portion of its
advisory fees to the extent necessary so that the advisory fees payable by
the Fund (based on the Fund's average daily net assets) do not exceed the
annual rate of 0.75% of the first $150 million, plus
11
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
0.615% of the next $4.85 billion, plus 0.57% of the next $2.5 billion, plus
0.545% of the next $2.5 billion, plus 0.52% of the Fund's daily net assets
in excess of $10 billion. The Fee Waiver reflects this agreement.
- - Effective upon the closing of the Reorganization, the advisor for AIM
Constellation Fund has contractually agreed to waive a portion of its
advisory fees for the period January 1, 2005 through December 31, 2009, to
the extent necessary so that the advisory fees payable by the Fund (based
on the Fund's average daily net assets) do not exceed the annual rate of
0.695% of the first $250 million, plus 0.615% of the next $4 billion, plus
0.595% of the next $750 million, plus 0.57% of the next $2.5 billion, plus
0.545% of the next $2.5 billion, plus 0.52% of the Fund's daily net assets
in excess of $10 billion. The Fee Waiver reflects this agreement.
- - At the request of the Board of Trustees, AMVESCAP (as defined herein) has
agreed to reimburse AIM Weingarten Fund and AIM Constellation Fund for
expenses related to market timing matters.
- - AIM Weingarten Fund will incur additional expenses in connection with the
Weingarten Fund Reorganization.
The following table shows annual operating expenses for all three reorganizing
funds, as well as estimates of expenses for the combined fund, giving effect to
the reorganizations of AIM Weingarten Fund and AIM Aggressive Growth into AIM
Constellation Fund.
AIM AGGRESSIVE AIM WEINGARTEN AIM CONSTELLATION COMBINED PRO
GROWTH FUND A FUND A SHARES (%) FUND A SHARES FORMA A
SHARES (%) (10/31/04 AS (%) (10/31/04 SHARES (%)
(10/31/04) RESTATED) AS RESTATED) (10/31/04)
-------------- ----------------- ----------------- ------------
MANAGEMENT FEES 0.64 0.64 0.63 0.63
RULE 12B-1 FEES 0.25 0.25 0.25 0.25
OTHER EXPENSES 0.41 0.46 0.36 0.36
TOTAL EXPENSES 1.30 1.35 1.24 1.24
FEE WAIVERS -- -- 0.03 0.05
TOTAL NET EXPENSES 1.30 1.35 1.21 1.19
- - Effective upon the closing of the Reorganization, the Board approved a
permanent reduction of the advisory fees of the AIM Constellation Fund to
0.80% of the first $150 million, plus 0.625% of the Fund's average daily
net assets in excess of $150 million.
- - Effective July 1, 2005, the Board of Trustees has approved a permanent
reduction of the Rule 12b-1 fees applicable to Class A shares of AIM
Weingarten Fund and AIM Constellation Fund to 0.25%. Distribution and/or
Service (12b-1) Fees reflect this agreement.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Weingarten Fund has contractually agreed to waive a portion of its advisory
fees to the extent necessary so that the advisory fees payable by the Fund
(based on the Fund's average daily net assets) do not exceed the annual
uniform fee schedule rate of 0.695% of the first $250 million, plus 0.67%
of the next $250 million, plus 0.645% of the next $500 million, plus 0.62%
of the next $1.5 billion, plus 0.595% of the next $2.5 billion, plus 0.57%
of the next $2.5 billion, plus 0.545% of the next $2.5 billion, plus 0.52%
of the Fund's daily net assets in excess of $10 billion. The Fee Waiver
reflects this agreement.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Constellation Fund has contractually agreed to waive a portion of its
advisory fees to the extent necessary so that the advisory fees payable by
the Fund (based on the Fund's average daily net assets) do not exceed the
annual uniform fee schedule rate of 0.75% of the first $150 million, plus
0.615% of the next $4.85 billion, plus 0.57% of the next $2.5 billion, plus
0.545% of the
12
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
next $2.5 billion, plus 0.52% of the Fund's daily net assets in excess of
$10 billion. The Fee Waiver reflects this agreement.
- - Effective upon the closing of the Reorganization, the advisor for AIM
Constellation Fund has contractually agreed to waive a portion of its
advisory fees for the period January 1, 2005 through December 31, 2009, to
the extent necessary so that the advisory fees payable by the Fund (based
on the Fund's average daily net assets) do not exceed the annual uniform
fee schedule rate of 0.695% of the first $250 million, plus 0.615% of the
next $4 billion, plus 0.595% of the next $750 million, plus 0.57% of the
next $2.5 billion, plus 0.545% of the next $2.5 billion, plus 0.52% of the
Fund's daily net assets in excess of $10 billion. The Fee Waiver reflects
this agreement.
- - At the request of the Board of Trustees, AMVESCAP (as defined herein) has
agreed to reimburse AIM Aggressive Growth Fund, AIM Weingarten Fund and AIM
Constellation Fund for expenses related to market timing matters.
- - AIM Aggressive Growth Fund and AIM Weingarten Fund may incur additional
expenses related to the Reorganizations.
MERGER COSTS
AIM Weingarten Fund's expenses incurred in connection with the AIM Weingarten
Fund Reorganization are expected to be approximately $1,500,000. The Board noted
AIM's proposal that AIM Weingarten Fund bear 50% and AIM bear 50% of AIM
Weingarten Fund's costs in connection with the AIM Weingarten Fund
Reorganization and concluded it was appropriate for AIM Weingarten Fund to bear
such portion of the expenses in light of the decrease in expenses that are
expected to result from the AIM Weingarten Fund Reorganization. AIM
Constellation Fund's expenses to be incurred in connection with the AIM
Weingarten Fund Reorganization are expected to be approximately $30,000. AIM
Constellation Fund will bear its costs and expenses incurred in connection with
the AIM Weingarten Fund Reorganization.
SHARE CLASSES
CLASSES OF SHARES OF CLASSES OF SHARES OF AIM
AIM WEINGARTEN FUND CONSTELLATION FUND
- -------------------- ------------------------
Class A Class A
Class B Class B
Class C Class C
Class R Class R
Institutional Class Institutional Class
13
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
AIM BLUE CHIP FUND
REASONS FOR SELECTING AIM LARGE CAP GROWTH FUND AS THE ACQUIRING FUND
AIM proposed the AIM Blue Chip Fund Reorganization as part of an effort to
consolidate the AIM Funds' large cap growth fund offerings. In considering the
Reorganization, the Board noted that the funds have identical investment
objectives and invest in similar types of securities. In addition, AIM Large Cap
Growth Fund's performance track record is generally better than AIM Blue Chip
Fund's and the expenses of the combined fund are expected to be lower than those
of AIM Blue Chip Fund.
The Board noted that the funds both attract investors looking for a large cap
growth investment program, and despite having different portfolio managers,
there is moderate portfolio overlap between the two funds. As of July 31, 2005,
approximately 49% of AIM Blue Chip Fund's total net assets were invested in
securities AIM Large Cap Growth Fund also owns. The Board noted that AIM Blue
Chip Fund's shareholders may lose some mega-cap and core style exposure, while
gaining some large cap exposure, which could lead to more volatility.
OBJECTIVES AND INVESTMENT STRATEGIES
AIM Blue Chip Fund and AIM Large Cap Growth Fund have identical investment
objectives and invest in similar types of securities. Both funds seek long-term
growth of capital. AIM Blue Chip Fund invests primarily in blue chip companies,
which are large or medium sized companies that have market leading positions and
certain financial characteristics described in AIM Blue Chip Fund's Prospectus.
AIM Large Cap Growth Fund invests primarily in large-capitalization companies
that AIM believes have the potential for above average growth in revenues and
earnings.
The chart below provides a summary for comparison purposes of the investment
objectives and principal investment strategies of AIM Blue Chip Fund and AIM
Large Cap Growth Fund.
AIM BLUE CHIP FUND AIM LARGE CAP GROWTH FUND
(SELLING FUND) (BUYING FUND)
- ------------------------------------- ----------------------------------------
INVESTMENT OBJECTIVES
- - Long-term growth of capital - Long-term growth of capital
INVESTMENT STRATEGIES
- - Invests at least 80% of its net - Invests at least 80% of its net
assets, in securities of blue assets in securities of
chip companies. large-capitalization companies.
- - In complying with the 80% - In complying with the 80%
investment requirement, the fund investment requirement, the fund
may invest primarily in may invest primarily in marketable
marketable equity securities, equity securities, including
including convertible convertible securities, but its
securities, but its investments investments may include other
may include other securities, securities, such as synthetic
such as synthetic instruments. instruments.
- - May invest in United States - No corresponding strategy.
government securities and
high-quality debt securities
when the portfolio managers
believe securities other than
marketable equity securities
offer the opportunity for
long-term growth of capital and
current income.
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2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - No corresponding strategy. - Portfolio Managers may focus on
securities of companies with market
capitalizations that are within the
top 50% of stocks in the Russell
1000 Index at the time of purchase.
- Portfolio managers purchase
securities of a limited number of
large-cap companies that they
believe have the potential for
above-average growth in revenues
and earnings.
- - May invest up to 25% of its - May invest up to 25% of its total
total assets in foreign assets in foreign securities.
securities.
PORTFOLIO MANAGEMENT
AIM Blue Chip Fund AIM Large Cap Growth Fund
- ------------------ -------------------------
Kirk L. Anderson (LEAD) Geoffrey V. Keeling (CO)
Asst by Large/Multi-Cap Growth Team Robert L. Shoss (CO)
Asst by Large/Multi-Cap Growth Team
HISTORICAL PERFORMANCE
AIM Large Cap Growth Fund has provided better short-term returns to its
shareholders than AIM Blue Chip Fund.
Average Annual Total Returns as of 7/31/05*
1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION INCEPTION DATE
------ ------ ------- --------------- --------------
AIM BLUE CHIP A SHARES 9.46% -7.94% 7.02% 8.73% 2/14/87
AIM LARGE CAP GROWTH A SHARES 12.21% -10.67% N/A 0.28% 3/1/99
* Performance at NAV
PERFORMANCE SURVIVOR
The Board determined that it was appropriate for AIM Large Cap Growth Fund to be
the surviving fund in the Reorganization primarily because the same investment
team that has managed AIM Large Cap Growth Fund since its inception in 1999 will
also manage the combined fund. Moreover, the investment strategies and stock
selection techniques of AIM Large Cap Growth Fund will be the investment
strategies and stock selection techniques of the combined fund. Consequently,
the Board determined that AIM Large Cap Growth Fund's performance track record
more accurately reflects the results of the investment process that the combined
fund will utilize after the Reorganization. The Board considered the relative
sizes of the two funds and concluded that AIM Large Cap Growth Fund should be
the surviving fund in the Reorganization, even though AIM Blue Chip Fund has a
larger asset base.
FUND ASSETS
As of July 31, 2005, AIM Large Cap Growth Fund had net assets of approximately
$818 million, compared to net assets for AIM Blue Chip Fund of approximately
$2.2 billion.
15
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
EXPENSES
ANNUAL FUND OPERATING EXPENSES (AS A % OF AVERAGE NET ASSETS) FOR A SHARES
The following table shows annual operating expenses for both reorganizing funds,
as well as estimates of expenses for the combined fund.
AIM LARGE CAP
AIM BLUE CHIP GROWTH FUND COMBINED PRO
FUND A SHARES A SHARES FORMA A
(%) (10/31/04 (%) (10/31/04 SHARES (%)
AS RESTATED) AS RESTATED) (10/31/04)
------------- ------------- ------------
MANAGEMENT FEES 0.64 0.75 0.64
RULE 12B-1 FEES 0.25 0.25 0.25
OTHER EXPENSES 0.46 0.45 0.44
TOTAL EXPENSES 1.35 1.45 1.33
FEE WAIVER 0.01 0.12 0.01
TOTAL NET EXPENSES 1.34 1.33 1.32
- - Effective July 1, 2005, the Board of Trustees has approved a permanent
reduction of the Rule 12b-1 fees applicable to Class A shares to 0.25%.
Distribution and/or Service (12b-1) Fees reflect this agreement.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Blue Chip Fund and AIM Large Cap Growth Fund has contractually agreed to
waive a portion of its advisory fees to the extent necessary so that the
advisory fees payable by the Funds' (based on the Funds' average daily net
assets) do not exceed the annual rate of 0.695% of the first $250 million,
plus 0.67% of the next $250 million, plus 0.645% of the next $500 million,
plus 0.62% of the next $1.5 billion, plus 0.595% of the next $2.5 billion,
plus 0.57% of the next $2.5 billion, plus 0.545% of the next $2.5 billion,
plus 0.52% of the Fund's daily net assets in excess of $10 billion.
- - The investment advisor for AIM Large Cap Growth Fund has contractually
agreed to waive advisory fees and/or reimburse expenses to the extent
necessary to limit Total Annual Fund Operating Expenses (excluding certain
items discussed below) of Class A, Class B, Class C, Class R, Investor
Class and Institutional Class shares to 1.32%, 2.07% 2.07%, 1.57%, 1.32%
and 1.07% of average daily net assets, respectively. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the Total
Annual Fund Operating Expenses to exceed the numbers reflected above: (i)
interest; (ii) taxes; (iii) dividend expense on short sales; (iv)
extraordinary items; (v) expenses related to a merger or reorganization, as
approved by the fund's Board of Trustees; (vi) expenses that the fund has
incurred but did not actually pay because of an expense offset arrangement.
Currently, in addition to the expense reimbursement arrangement with
AMVESCAP (as defined herein) described more fully below, the only expense
offset arrangements from which the fund benefits are in the form of credits
that the fund receives from banks where the fund or its transfer agent has
deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the fund. This expense limitation
agreement is in effect through October 31, 2006.
- - At the request of the Board of Trustees, AMVESCAP (as defined herein) has
agreed to reimburse AIM Blue Chip and AIM Large Cap Growth Fund for
expenses related to market timing matters.
- - AIM Blue Chip Fund will incur additional expenses in connection with the
Reorganization.
16
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
MERGER COSTS
AIM Blue Chip Fund's expenses incurred in connection with the Reorganization are
expected to be approximately $1,400,000. The Board noted AIM's proposal that AIM
Blue Chip Fund bear 25% and AIM bear 75% of AIM Blue Chip Fund's costs in
connection with the Reorganization and concluded it was appropriate for AIM Blue
Chip Fund to bear such portion of the expenses in light of the decrease in
expenses that are expected to result from the Reorganization. AIM Large Cap
Growth Fund's expenses to be incurred in connection with the Reorganization are
expected to be approximately $30,000. AIM Large Cap Growth Fund will bear its
costs and expenses incurred in connection with the Reorganization.
SHARE CLASSES
CLASSES OF SHARES OF CLASSES OF SHARES OF
AIM BLUE CHIP FUND LARGE CAP GROWTH FUND
- -------------------- ---------------------
Class A Class A
Class B Class B
Class C Class C
Class R Class R
Investor Class Investor Class
Institutional Class Institutional Class
17
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
AIM MID CAP GROWTH FUND
REASONS FOR SELECTING AIM DYNAMICS FUND AS THE ACQUIRING FUND
AIM proposed the AIM Mid Cap Growth Fund Reorganization as part of an effort to
consolidate the AIM Funds' mid cap growth product offerings. In considering the
Reorganization, the Board noted that the funds have identical investment
objectives, are managed using similar investment strategies and invest in
similar securities. In addition, AIM Dynamics Fund's performance track record
relative to its Lipper peer group is generally better than AIM Mid Cap Growth
Fund's and the expenses of the combined fund are expected to be lower than those
of AIM Mid Cap Growth Fund.
The Board noted that AIM Mid Cap Growth Fund and AIM Dynamics Fund are managed
by the same lead portfolio manager supported by the same portfolio management
team. The funds have identical investment strategies, resulting in significant
portfolio overlap between the two funds. As of July 31, 2005, approximately 85%
of AIM Mid Cap Growth Fund's total net assets were invested in securities AIM
Dynamics Fund also owns.
OBJECTIVES AND INVESTMENT STRATEGIES
AIM Mid Cap Growth Fund and AIM Dynamics Fund have identical investment
objectives. Both funds seek long-term growth of capital. In addition, AIM Mid
Cap Growth Fund and AIM Dynamics Fund have similar investment strategies. AIM
Mid Cap Growth Fund invests primarily in securities of mid-capitalization
companies that are likely to benefit from new or innovative products, services
or processes, as well as those that have experienced long-term growth, while AIM
Large Cap Growth Fund focuses on mid-cap companies with high growth potential.
The chart below provides a summary for comparison purposes of the investment
objectives and principal investment strategies of AIM Mid Cap Growth Fund and
AIM Dynamics Fund.
AIM MID CAP GROWTH FUND AIM DYNAMICS FUND
(SELLING FUND) (BUYING FUND)
- ------------------------------------- ----------------------------------------
INVESTMENT OBJECTIVES
- - Long-term growth of capital - Long-term growth of capital
INVESTMENT STRATEGIES
18
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - Invests at least 80% of its net - Normally invests at least 65% of
assets, in securities of its net assets in common stocks of
mid-capitalization companies. mid-size companies.
- The advisor actively manages the
fund, focusing on mid-cap companies
with high growth potential that
also are favorably priced relative
to the growth expectations for that
company.
- The advisor bases its selection of
stocks for the fund on an analysis
of individual companies. The
investment process involves:
- identifying medium sized
companies with
sustainable revenue and
earnings growth that have
attractive stock price
valuations relative to
their projected growth
rates;
- applying fundamental
research including
financial statement
analysis and management
visits to identify stocks
of companies with large
potential markets, cash
generating business
models, improving balance
sheets and solid
management teams; and
- using a variety of
valuation techniques to
determine target buy and
sell prices and a stock's
valuation upside and
downside potential.
- The resulting fund portfolio
contains (1) "core holdings," which
are industry leaders serving
growing, non-cyclical markets whose
performance tends to remain
constant regardless of economic
conditions; and (2)
"earnings-acceleration" holdings
that are driven by near term
catalysts such as new products,
improved processes, and/or specific
economic conditions, which may lead
to rapid sales and earnings growth.
- - In complying with the 80%
investment requirement, the fund
may invest primarily in
marketable equity securities,
including convertible
securities, but its investments
may include other securities,
such as synthetic instruments.
19
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - Under normal conditions, the top - No corresponding strategy
10 holdings may comprise up to
40% of the fund's total assets.
- - No corresponding strategy - The fund sometimes invests in the
securities of small companies.
- - May invest up to 25% of its - May invest up to 25% of its assets
total assets in foreign in non-U.S. issuers.
securities.
PORTFOLIO MANAGEMENT
AIM Mid Cap Growth Fund AIM Dynamics Fund
- ----------------------- -----------------
Karl F. Farmer (CO) Paul J. Rasplicka (LEAD)
Paul J. Rasplicka (CO) Karl F. Farmer
Asst by Mid Cap Growth & GARP Team Asst by Mid Cap Growth & GARP Team
HISTORICAL PERFORMANCE
AIM Mid Cap Growth Fund and AIM Dynamics Fund have comparable performance
records.
Average Annual Total Returns as of 7/31/05*
1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION INCEPTION DATE
------ ------ ------- --------------- --------------
AIM MID CAP GROWTH A SHARES 24.88% -6.38% N/A 1.33% 11/1/99
AIM DYNAMICS A SHARES 24.81% -8.57% 8.60% 9.14% 9/15/67
* Performance at NAV
PERFORMANCE SURVIVOR
The Board determined that it was appropriate for AIM Dynamics Fund to be the
surviving fund in the Reorganization primarily because both funds have similar
investment programs and overlapping management teams. AIM Dynamics Fund has a
lower management fee structure and a significantly larger asset base.
FUND ASSETS
As of July 31, 2005, AIM Dynamics Fund had net assets of approximately $2
billion, compared to net assets for AIM Mid Cap Growth Fund of approximately
$190 million.
20
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
EXPENSES
ANNUAL FUND OPERATING EXPENSES (AS A % OF AVERAGE NET ASSETS) FOR A SHARES
The following table shows annual operating expenses for both reorganizing funds,
as well as estimates of expenses for the combined fund.
AIM MID CAP GROWTH AIM DYNAMICS
FUND A SHARES (%) FUND A SHARES COMBINED PRO
(10/31/04 AS (%) (7/31/05 FORMA A SHARES %)
RESTATED) AS RESTATED) (7/31/05)
------------------ ------------- -----------------
MANAGEMENT FEES .080 0.51 0.51
RULE 12B-1 FEES 0.25 0.25 0.25
OTHER EXPENSES 0.61 0.35 0.37
TOTAL EXPENSES 1.66 1.11 1.13
FEE WAIVER 0.05 -- --
TOTAL NET EXPENSES 1.61 1.11 1.13
- - Effective July 1, 2005, the Board of Trustees has approved a permanent
reduction of the Rule 12b-1 fees applicable to Class A shares to 0.25%.
Distribution and/or Service (12b-1) Fees reflect this agreement.
- - Effective October 1, 2005, the Board of Trustees approved an amendment to
the transfer agency agreement of AIM Dynamics Fund. Other Expenses of AIM
Dynamics Fund have been restated to reflect the changes in fees under the
new agreement. Other Expenses for Class R shares of AIM Dynamics Fund are
based on estimated average net assets for the current fiscal year.
- - The advisor of AIM Dynamics Fund has contractually agreed to waive advisory
fees and/or reimburse expenses to the extent necessary to limit Total
Annual Fund Operating Expenses (excluding certain items discussed below) to
1.90%, 2.65%, 2.65%, 2.15%, 1.90% and 1.65% on Class A, Class B, Class C,
Class R, Investor Class and Institutional Class shares, respectively. In
determining the advisor's obligation to waive advisory fees and/or
reimburse expenses, the following expenses are not taken into account and
could cause the Total Annual Operating Expenses to exceed the numbers
reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short
sales; (iv) extraordinary items; (v) expenses related to a merger or
reorganization, as approved by the fund's Board of Trustees; and (vi)
expenses that the fund has incurred but did not actually pay because of an
expense offset arrangement. Currently, in addition to the expense
reimbursement arrangement with AMVESCAP (as defined herein) described more
fully below, the only expense offset arrangements from which the fund
benefits are in the form of credits that the fund receives from banks where
the fund or its transfer agent has deposit accounts in which it holds
uninvested cash. Those credits are used to pay certain expenses incurred by
the fund. This expense limitation agreement is in effect through July 31,
2006.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Mid Cap Growth Fund has contractually agreed to waive a portion of its
advisory fees to the extent necessary so that the advisory fees payable by
the Fund (based on the Fund's average daily net assets) do not exceed the
annual rate of 0.745% for the first $250 million, plus 0.73% of the next
$250 million, plus 0.715% of the next $500 million, plus 0.70% of the next
$1.5 billion, plus 0.685% of the next $2.5 billion, plus 0.67% of the next
$2.5 billion, plus 0.655% of the next $2.5 billion, plus 0.64% of the
Fund's average daily net assets in excess of $10 billion. The Fee Waiver
reflects this agreement.
- - At the request of the Board of Trustees, AMVESCAP (as defined herein) has
agreed to reimburse AIM Mid Cap Growth Fund and AIM Dynamics Fund for
expenses related to market timing matters.
21
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - AIM Mid Cap Growth Fund will incur additional expenses in connection with
the Reorganization.
MERGER COSTS
AIM Mid Cap Growth fund's expenses incurred in connection with the
Reorganization are expected to be approximately $185,000. The Board noted AIM's
proposal that AIM Mid Cap Growth Fund will bear its share of the costs in
connection with the Reorganization and concluded it was appropriate for AIM Mid
Cap Growth Fund to bear such expenses in light of the decrease in expenses that
are expected to result from the Reorganization. AIM Dynamics Fund's expenses to
be incurred in connection with the Reorganization are expected to be
approximately $30,000. AIM Dynamics Fund will bear its costs and expenses
incurred in connection with the Reorganization.
SHARE CLASSES
CLASSES OF SHARES OF CLASSES OF SHARES OF
AIM MID CAP GROWTH FUND AIM DYNAMICS FUND
- ----------------------- --------------------
Class A Class A
Class B Class B
Class C Class C
Class R Class R
Institutional Class Institutional Class
22
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
AIM SMALL COMPANY GROWTH FUND
REASONS FOR SELECTING AIM SMALL CAP GROWTH FUND AS THE ACQUIRING FUND
AIM proposed the AIM Small Company Growth Fund Reorganization as part of an
effort to consolidate the AIM Funds' small cap growth product offerings. In
considering the Reorganization, the Board noted that the funds have identical
investment objectives and utilize similar investment strategies. Both Funds are
managed by the same lead portfolio manager with support from the same portfolio
management team. In addition, the expenses of the combined fund are expected to
be lower than those of AIM Small Company Growth Fund.
As of July 31, 2005, the funds had relatively low portfolio overlap of
approximately 11%. Due to the sometimes limited availability of common stocks of
smaller companies that meet the investment process of AIM Small Cap Growth
Fund's portfolio managers, AIM Small Cap Growth Fund has been engaged in a
limited offering of its shares since March 18, 2002. The Board noted that AIM
represented that the Reorganization should not negatively impact AIM Small Cap
Growth Fund's ability to invest in suitable securities within the small cap
growth space because of the funds' low portfolio overlap. Thus, the Board
determined that the Reorganization is not inconsistent with the limited offering
of AIM Small Cap Growth Fund's shares.
OBJECTIVES AND INVESTMENT STRATEGIES
AIM Small Company Growth Fund and AIM Small Cap Growth Fund have identical
investment objectives and invest in similar types of securities. Both funds seek
long-term growth of capital and normally invest at least 80% of their net assets
in small-capitalization companies.
The chart below provides a summary for comparison purposes of the investment
objectives and principal investment strategies of AIM Small Company Fund and AIM
Small Cap Growth Fund.
AIM SMALL COMPANY GROWTH FUND AIM SMALL CAP GROWTH FUND
(SELLING FUND) (BUYING FUND)
- ------------------------------------- ----------------------------------------
INVESTMENT OBJECTIVES
- - Long-term growth of capital - Long-term growth of capital
INVESTMENT STRATEGIES
- - Invests at least 80% of its net - Invests at least 80% of its net
assets in securities of assets in securities of
small-capitalization companies. small-capitalization companies.
23
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - The advisor actively manages the - In complying with the 80%
fund in the growth style investment requirement, the fund
focusing on small cap growth may invest primarily in marketable
companies with high growth equity securities, including
potential as demonstrated by convertible securities, but its
quantitative and qualitative investments may include other
analysis. securities, such as synthetic
instruments.
- - The adviser selects stocks for
the fund based on an analysis of
individual companies, focusing
on company fundamentals and
growth prospects. The advisor
uses a three-step process that
includes quantitative,
fundamental and evaluation
analysis. The proprietary
quantitative models and
screening tools reduce an
investment universe of thousands
of companies down to a more
manageable list of investment
candidates. The fundamental
research includes careful
financial statement analysis and
meetings with company management
teams to define a company's key
drivers of success and to access
its durability. The goal is to
ascertain the level, quality and
duration of a Company's growth
prospects, and to gain
confidence in the management
team. The valuation analysis
assesses the degree to which
expected future growth is
discounted in the stock price.
The adviser also carefully
scrutinizes the risks/reward of
each holding to ensure a
continued fit in the fund. The
stock that successfully passes
this selection process is a
viable candidate for the fund's
portfolio.
- - No corresponding strategy - The fund may also invest up to 20%
of its assets in equity securities
of issuers that have market
capitalizations, at the time of
purchase, in other market
capitalization ranges, and in
investment-grade non-convertible
debt securities, U.S. government
securities and high-quality money
market instruments.
- - May invest up to 25% of its - May invest up to 25% of its total
total assets in securities of assets in foreign securities.
non-U.S. issuers.
PORTFOLIO MANAGEMENT
AIM Small Company Growth Fund AIM Small Cap Growth Fund
- ----------------------------- -------------------------
Juliet S. Ellis (LEAD) Juliet S. Ellis (LEAD)
Juan R. Hartsfield Juan R. Hartsfield
Asst by Small Cap Core/Growth Team Asst by Small Cap Core/Growth Team
AIM Small Company Growth Fund and AIM Small Cap Growth Fund have been managed by
the same team since 9/16/05.
24
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
HISTORICAL PERFORMANCE
Although AIM Small Company Growth Fund has recently provided better returns, AIM
Small Cap Growth Fund has provided better long-term returns to its shareholders
than AIM Small Company Growth Fund.
Average Annual Total Returns as of 7/31/05*
1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION INCEPTION DATE
------ ------ ------- --------------- --------------
AIM SMALL COMPANY GROWTH A SHARES 26.12% N/A N/A 4.97% 3/28/02
AIM SMALL CAP GROWTH A SHARES 22.01% -2.97% N/A 12.45% 10/18/95
* Performance at NAV
PERFORMANCE SURVIVOR
The Board determined that it was appropriate for AIM Small Cap Growth Fund to be
the surviving fund in the Reorganization primarily because the management team
that will manage the combined fund has managed AIM Small Cap Growth Fund longer
than AIM Small Company Growth Fund. Consequently, the Board determined that AIM
Small Cap Growth Fund's performance track record more accurately reflects the
results of the investment process that the combined fund will utilize after the
Reorganization.
FUND ASSETS
As of July 31, 2005, AIM Small Cap Growth Fund had net assets of approximately
$1.7 billion, compared to net assets for AIM Small Company Growth Fund of
approximately $450 million.
EXPENSES
ANNUAL FUND OPERATING EXPENSES (AS A % OF AVERAGE NET ASSETS) FOR A SHARES
The following table shows annual operating expenses for both reorganizing funds,
as well as estimates of expenses for the combined fund.
AIM SMALL COMPANY AIM SMALL CAP GROWTH
GROWTH FUND A SHARES FUND A SHARES (%) COMBINED PRO
(%) (7/31/05 AS (12/31/04 AS FORMA A SHARES
RESTATED) RESTATED) (%) (12/31/04)
-------------------- -------------------- --------------
MANAGEMENT FEES .072 0.69 0.68
RULE 12B-1 FEES 0.25 0.25 0.25
OTHER EXPENSES 0.42 0.34 0.35
TOTAL EXPENSES 1.39 1.28 1.29
FEE WAIVER -- -- --
TOTAL NET EXPENSES 1.39 1.28 1.28
- - Effective July 1, 2005, the Board of Trustees has approved a permanent
reduction of the Rule 12b-1 fees applicable to Class A shares to 0.25%.
Distribution and/or Service (12b-1) Fees reflect this agreement.
- - Effective October 1, 2005, the Board of Trustees approved an amendment to
the transfer agency agreement. Other Expenses have been restated to reflect
the changes in fees under the new agreement. Other Expenses for Class R
25
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
shares and Institutional Class shares for AIM Small Company Growth Fund are
based on estimated average net assets for the current fiscal year.
- - The advisor for AIM Small Company Growth Fund has contractually agreed to
waive advisory fees and/or reimburse expenses to the extent necessary to
limit Total Annual Fund Operating Expenses (excluding certain items
discussed below) for the fund's Class A, Class B, Class C, Class R,
Investor Class and Institutional Class shares to 1.90%, 2.65%, 2.65%,
2.15%, 1.90% and 1.65% of average daily net assets, respectively. In
determining the advisor's obligation to waive advisory fees and/or
reimburse expenses, the following expenses are not taken into account, and
could cause the Total Annual Fund Operating Expenses to exceed the limits
stated above: (i) interest; (ii) taxes; (iii) dividend expenses on short
sales, (iv) extraordinary items; (v) expenses related to a merger or
reorganization, as approved by the fund's Board of Trustees; and (vi)
expenses that the fund has incurred but did not actually pay because of an
expense offset arrangement. Currently, in addition to the expense
reimbursement arrangement with AMVESCAP (as defined herein) described more
fully below, the expense offset arrangements from which the fund benefits
are in the form of credits that the fund receives from banks where the fund
or its transfer agent has deposit accounts in which it holds uninvested
cash. Those credits are used to pay certain expenses incurred by the fund.
This expense limitation agreement is in effect through July 31, 2006. Upon
closing of the Reorganization, the investment advisor has contractually
agreed to continue these limitations.
- - The advisor for AIM Small Company Growth Fund has voluntarily agreed to
waive advisory fees and/or reimburse expenses to the extent necessary to
limit Total Annual Fund Operating Expenses (excluding certain items
discussed above) to 1.50%, 2.25%, 2.25%, 1.75%, 1.50% and 1.25% on Class A,
Class B, Class C, Class R, Investor Class and Institutional Class shares,
respectively. These expense limitation agreements may be modified or
discontinued at any time upon consultation with the Board of Trustees
without further notice to investors. Upon closing of the reorganization,
the investment advisor voluntarily agreed to continue these limitations.
- - At the request of the Board of Trustees, AMVESCAP (as defined herein) has
agreed to reimburse AIM Small Company Growth Fund and AIM Small Cap Growth
Fund for expenses related to market timing matters.
- - AIM Small Company Growth Fund will incur additional expenses in connection
with the Reorganization.
MERGER COSTS
AIM Small Company Growth Fund's expenses incurred in connection with the
Reorganization are expected to be approximately $450,000. The Board noted AIM's
proposal that AIM Small Company Growth Fund bear 25% and AIM bear 75% of AIM
Small Company Growth Fund's costs in connection with the Reorganization and
concluded it was appropriate for AIM Small Company Growth Fund to bear such
portion of the expenses in light of the decrease in expenses that are expected
to result from the Reorganization. AIM Small Cap Growth Fund's expenses to be
incurred in connection with the Reorganization are expected to be approximately
$30,000. AIM Small Cap Growth Fund will bear its costs and expenses incurred in
connection with the Reorganization.
SHARE CLASSES
CLASSES OF SHARES OF AIM CLASSES OF SHARES OF AIM
SMALL COMPANY GROWTH FUND SMALL CAP GROWTH FUND
- ------------------------- ------------------------
Class A Class A
Class B Class B
Class C Class C
Class R Class R
Investor Class Investor Class*
Institutional Class Institutional Class
* On 11/11/05, AIM filed to add Investor Class shares for AIM Small Cap
Growth Fund.
26
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
AIM PREMIER EQUITY FUND
PLEASE NOTE THAT SOME AIM PREMIER EQUITY FUND SHAREHOLDERS WILL RECEIVE AN
ADDITIONAL MAILING CONTAINING A PROXY CORRECTION REGARDING THE PERFORMANCE BAR
CHART FOR AIM CHARTER FUND.
REASONS FOR SELECTING AIM CHARTER FUND AS THE ACQUIRING FUND
AIM proposed the AIM Premier Equity Fund Reorganization as part of an effort to
consolidate the AIM Funds' large cap core fund offerings. In considering the
Reorganization, the Board noted that the funds have similar investment
objectives, are managed using similar investment strategies and invest in
similar securities. In addition, AIM Charter Fund's performance track record
relative to its Lipper peer group is generally better than AIM Premier Equity
Fund's and the expenses of the combined fund are expected to be lower than those
of AIM Premier Equity Fund.
The Board noted that approximately 50% of AIM Premier Equity Fund and all of AIM
Charter Fund have been managed using the same discipline by the same lead
portfolio manager and portfolio management team. The Board noted that the funds
have similar investment objectives and similar investment strategies, resulting
in significant portfolio overlap between the two funds. As of July 31, 2005,
approximately 59% of AIM Premier Equity Fund's total net assets were invested in
securities AIM Charter Fund also owns. The Board noted that AIM Charter Fund is
a large-cap core fund, while AIM Premier Equity Fund also includes value and
growth disciplines. Thus, shareholders of AIM Premier Equity Fund may lose
exposure to those value and growth disciplines in AIM Charter Fund's investment
process.
OBJECTIVES AND INVESTMENT STRATEGIES
AIM Premier Equity Fund and AIM Charter Fund have similar investment objectives.
AIM Premier Equity Fund seeks long-term growth of capital with a secondary
objective of income, while AIM Charter Fund seeks growth of capital. AIM Premier
Equity Fund and AIM Charter Fund also invest in similar types of securities.
However, while AIM Premier Equity Fund seeks income as a secondary objective
when selecting stocks for investment, AIM Charter Fund seeks to invest primarily
in undervalued equity securities.
The chart below provides a summary for comparison purposes of the investment
objectives and principal investment strategies of AIM Premier Equity Fund and
AIM Charter Fund.
AIM PREMIER EQUITY FUND AIM CHARTER FUND
(SELLING FUND) (BUYING FUND)
- ------------------------------------- ----------------------------------------
INVESTMENT OBJECTIVES
- - Long-term growth of capital - Growth of capital
- - Income
INVESTMENT STRATEGIES
- - Invests at least 80% of its net - Invests at least 65% of its total
assets, plus the amount of any assets in securities, of
borrowings for investment established companies that have
purposes, in equity securities, long-term above-average growth in
including convertible earnings, and growth companies that
securities. the portfolio managers believe have
the potential for above-average
growth in earnings.
- - In complying with the 80% - No corresponding strategy.
investment requirement, the
fund's investments may include
synthetic instruments.
27
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - Diversified among the core, - The portfolio manager seeks to
growth and value equity identify those companies that are,
investment disciplines to in his view, undervalued relative
construct a single, core to current or projected earnings or
investment portfolio. the current market value of assets
owned by the company.
- - A greater percentage of the
fund's assets will be invested
using the core investment
discipline than using either the
growth or value investment
disciplines.
- - The core discipline portfolio
managers focus on equity
securities of out-of-favor
cyclical growth companies,
established growth companies
that are undervalued compared to
historical relative valuation
parameters, companies where
there is early but tangible
evidence of improving prospects
that are not yet reflected in
the price of the company's
equity securities, and companies
whose equity securities are
selling at prices that do not
reflect the current market value
of their assets and where there
is reason to expect realization
of this potential in the form of
increased equity values (the
"core categories").
- - The growth discipline portfolio
managers focus on equity
securities of companies with the
potential to consistently
generate above-average growth in
sales and earnings, established
large-cap companies with strong
business franchises, and
companies experiencing
significant positive change
leading to accelerating revenue
or earnings growth - usually
above market expectations.
- - The value discipline portfolio
managers focus on equity
securities of companies that are
selling at a substantial
discount to calculated intrinsic
value.
- - May invest in preferred stocks - No corresponding strategy.
and debt instruments that have
prospects for growth of capital.
- - May also invest up to 25% of its - May also invest up to 20% of its
total assets in foreign total assets in foreign securities.
securities.
PORTFOLIO MANAGEMENT
AIM Premier Equity Fund AIM Charter Fund
- -------------------------------- -------------------------------
Ronald S. Sloan (LEAD) Ronald S. Sloan
Lanny H. Sachnowitz Asst by Mid/Large Cap Core Team
Bret W. Stanley
Asst by Mid/Large Cap Core Team,
Large/Multi-Cap Growth Team,
and Basic Value Team
28
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
HISTORICAL PERFORMANCE
Although AIM Premier Equity Fund has recently provided better returns, AIM
Charter Fund has provided better long-term returns to its shareholders than AIM
Premier Equity Fund.
Average Annual Total Returns as of 7/31/05*
1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION INCEPTION DATE
------ ------ ------- --------------- --------------
AIM PREMIER EQUITY A SHARES 12.23% -6.41% 5.66% 12.28% 5/1/84
AIM CHARTER A SHARES 10.39% -5.64% 7.42% 11.82% 11/26/68
* Performance at NAV
PERFORMANCE SURVIVOR
The Board determined that it was appropriate for AIM Charter Fund to be the
surviving fund in the Reorganization primarily because the investment team
responsible for both funds has managed AIM Charter Fund longer than AIM Premier
Equity Fund and the portfolio composition of the combined fund is expected to be
most like that of AIM Charter Fund over time. Consequently, the Board determined
that AIM Charter Fund's investment process more accurately reflects the
investment process that the combined fund will utilize after the Reorganization.
FUND ASSETS
As of July 31, 2005, AIM Charter Fund had net assets of approximately $2.6
billion, compared to net assets for AIM Premier Equity Fund of approximately
$5.7 billion.
EXPENSES
ANNUAL FUND OPERATING EXPENSES (AS A % OF AVERAGE NET ASSETS) FOR A SHARES
The following table shows annual operating expenses for both reorganizing funds,
as well as estimates of expenses for the combined fund.
AIM PREMIER EQUITY AIM CHARTER FUND
FUND A SHARES (%) A SHARES (%) COMBINED PRO FORMA
(12/31/04 AS (10/31/04 AS A SHARES (%)
RESTATED) RESTATED) (10/31/04)
------------------ ---------------- ------------------
MANAGEMENT FEES 0.63 0.63 0.63
RULE 12B-1 FEES 0.25 0.25 0.25
OTHER EXPENSES 0.40 0.34 0.34
TOTAL EXPENSES 1.28 1.22 1.22
FEE WAIVER 0.05 0.01 0.05
TOTAL NET EXPENSES 1.23 1.21 1.17
- - Effective upon the closing of the Reorganization, the Board approved a
permanent reduction of the advisory fee of the AIM Charter Fund to 0.80% of
the first $150 million, plus 0.625% of the Fund's average daily net assets
in excess of $150 million.
29
2006 FUND REORGANIZATIONS (MERGERS)
THIS DOCUMENT IS FOR INTERNAL TRAINING USE ONLY
- - The Board of Trustees has approved a permanent reduction of the Rule 12b-1
fees applicable to AIM Charter Fund Class A shares to 0.25% effective July
1, 2005. Distribution and/or Service (12b-1) Fees reflect this agreement.
- - Other Expenses of AIM Premier Equity Fund Institutional Class shares are
based on estimated amounts for the current fiscal year.
- - Effective January 1, 2005 through December 31, 2009, the advisor for AIM
Premier Equity Fund and AIM Charter Fund has contractually agreed to waive
a portion of its advisory fees to the extent necessary so that the advisory
fees payable by the Fund (based on the Fund's average daily net assets) do
not exceed the annual uniform fee schedule rate of 0.75% of the first $150
million, plus 0.615% of the next $4.85 billion, plus 0.57% of the next $2.5
billion, plus 0.545% of the next $2.5 billion, plus 0.52% of the Fund's
average daily net assets in excess of $10 billion. The Fee Waiver reflects
this agreement.
- - Effective July 1, 2005 through June 30, 2006, the AIM Premier Equity Fund's
advisor has contractually agreed to waive an additional 0.02% of its
Management Fees.
- - At the request of the Board of Trustees AMVESCAP (as defined herein) has
agreed to reimburse AIM Premier Equity and AIM Charter Fund for expenses
related to market timing matters.
- - AIM Premier Equity Fund will incur additional expenses in connection with
the Reorganization.
MERGER COSTS
AIM Premier Equity Fund's expenses incurred in connection with the
Reorganization are expected to be approximately $3,000,000. The Board noted
AIM's proposal that AIM Premier Equity Fund bear 14% and AIM bear 86% of AIM
Premier Equity Fund's costs in connection with the Reorganization and concluded
it was appropriate for AIM Premier Equity Fund to bear such portion of expenses
in light of the decrease in expenses that are expected to result from the
Reorganization. AIM Charter Fund's expenses to be incurred in connection with
the Reorganization are expected to be approximately $30,000. AIM Charter Fund
will bear its costs and expenses incurred in connection with the Reorganization.
SHARE CLASSES
CLASSES OF SHARES OF AIM CLASSES OF SHARES OF
PREMIER EQUITY FUND AIM CHARTER FUND
- ------------------------ --------------------
Class A Class A
Class B Class B
Class C Class C
Class R Class R
Institutional Class Institutional Class
30
AIM FAST FAX
Jan. 13, 2006
AIM INVESTMENTS(R) MAILS PROXIES FOR
SIX PROPOSED FUND REORGANIZATIONS
AIM Investments announced in November 2005 that the Board of Trustees of each of
the applicable funds listed below had approved the reorganization of six AIM
funds. AIM began mailing proxy statements to shareholders (of record as of Dec.
2, 2005) on Jan. 12, 2006. Please note that some AIM Premier Equity Fund
shareholders will receive an additional mailing containing a proxy correction.
A shareholder meeting is scheduled for Feb. 28, 2006, at which shareholders of
the target funds will vote on their respective reorganizations. If approved by
shareholders, the reorganizations of AIM Aggressive Growth Fund, AIM Blue Chip
Fund and AIM Weingarten Fund are expected to be completed by March 13, 2006. If
approved by shareholders, the reorganizations of AIM Mid Cap Growth Fund, AIM
Premier Equity Fund and AIM Small Company Growth Fund are expected to be
completed by March 27, 2006.
The funds approved for reorganizations are:
ACQUIRING FUND
EXISTING FUND ACQUIRING FUND FUND MANAGEMENT TEAM
- ------------- -------------- --------------------
AIM Aggressive Growth Fund* AIM Constellation Fund Lanny H. Sachnowitz (Lead)
Kirk L. Anderson
James G. Birdsall
Robert J. Lloyd
Asst by Large/Multi-Cap Growth Team
AIM Weingarten Fund AIM Constellation Fund Lanny H. Sachnowitz (Lead)
Kirk L. Anderson
James G. Birdsall
Robert J. Lloyd
Asst by Large/Multi-Cap Growth Team
AIM Blue Chip Fund AIM Large Cap Growth Fund Geoffrey V. Keeling (Co)
Robert L. Shoss (Co)
Asst by Large Cap Growth Team
AIM Mid Cap Growth Fund AIM Dynamics Fund Karl F. Farmer (Co)
Paul J. Rasplicka (Co)
Asst by Mid Cap Growth & GARP Team
AIM Small Company Growth Fund AIM Small Cap Growth Fund Juliet S. Ellis (Lead)
Juan R. Hartsfield
Asst by Small Cap Core/Growth Team
AIM Premier Equity Fund AIM Charter Fund Ronald S. Sloan
Asst by Mid/Large Cap Core Team
CONTINUED, PAGE 2
FOR INSTITUTIONAL INVESTOR USE ONLY
AIM FAST FAX (CONTINUED)
COMMUNICATION PLAN
AIM Investments will provide communications at various times leading up to the
completion of the reorganizations. The table below lists the details of planned
communications.
What will I get? When will I get it? How will I get it?
- ---------------- ------------------- ------------------
Fast Fax announcing availability Jan. 12, 2006 - Fax
of proxy materials
- Available on AIMinvestments.com
Advisor Proxy Update Jan. 17, 2006 - Direct mailing
Press release announcing outcome On or about Feb. 28, 2006 - Available on AIMinvestments.com
of shareholder meeting
Fast Fax announcing outcome of On or about Feb. 28, 2006 - Fax
shareholder meeting
- Available on AIMinvestments.com
Fast Fax announcing completion March 13, 2006 and March 27, 2006 - Fax
of reorganizations including
final distribution information - Available on AIMinvestments.com
and reorganization ratios
Confirmation statements On or about the week of March 13, - Direct mailing
2006 and the week of March 27,
2006
For more information on fund reorganizations, please contact the sales desk for
your division:
INDEPENDENT NATIONAL
RETIREMENT AND FINANCIAL ADVISOR INSTITUTIONAL FINANCIAL DEALER ACCOUNTS
EDUCATION DIVISION (IFAD) SALES DIVISION (FDD) DIVISION
- -------------- ----------------- ------------- ---------------- ------------
800-370-1519 800-337-4246 800-410-4246 800-998-4246 800-349-0104
FOR INSTITUTIONAL INVESTOR USE ONLY
THIS MATERIAL IS FOR INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED,
REPRODUCED OR SHOWN TO THE PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE
FOR PUBLIC USE.
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
CAREFULLY. FOR THIS AND OTHER INFORMATION ABOUT AIM FUNDS, OBTAIN A PROSPECTUS
FROM AIMINVESTMENTS.COM. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING.
AIM Investments is a registered service mark of A I M Management Group Inc.
A I M Distributors, Inc. is the distributor for the retail mutual funds
represented by AIM Investments.
<Table>
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE (AIM INVESTMENTS--Registered Trademark-- LOGO APPEARS HERE)
Your goals.
Our solutions--Registered Trademark--.
</Table>
AIMinvestments.com 01/06 A I M Distributors, Inc
MANAGEMENT INFORMATION SERVICES
PROPOSED SCRIPT FOR TELEPHONE VOTING
OPENING:
WHEN CONNECTED TO THE TOLL-FREE NUMBER, SHAREHOLDER WILL HEAR:
"Welcome. "Please enter the control number labeled as such or located in the box
indicated by an arrow on the upper portion of your proxy card."
WHEN SHAREHOLDER ENTERS THE CONTROL NUMBER, HE/SHE WILL HEAR:
"Please refer to your proxy card as you vote. To vote as the Board recommends,
press 1 now. To vote otherwise, press 0 now."
OPTION 1: VOTING AS MANAGEMENT RECOMMENDS
IF SHAREHOLDER ELECTS TO VOTE AS MANAGEMENT RECOMMENDS, HE/SHE WILL HEAR:
"You have voted as the Board recommended. If this is correct, press 1. If
incorrect, press 0."
IF SHAREHOLDER PRESSES 1, HE/SHE WILL HEAR:
"If you have received more than one proxy card, you must vote each card
separately. If you would like to vote another proxy, press 1 now. To end this
call, press 0 now."
IF SHAREHOLDER PRESSES 0 TO END THE CALL,
"Thank you for voting."
IF SHAREHOLDER ELECTS TO REVOTE OR VOTE ANOTHER PROXY, HE/SHE IS RETURNED TO THE
"PLEASE ENTER THE CONTROL NUMBER" SPEECH (ABOVE). IF SHAREHOLDER ELECTS TO END
THE CALL, HE/SHE WILL HEAR:
CALL IS TERMINATED.
MANAGEMENT INFORMATION SERVICES
1/13/2006
OPTION 0: VOTING OTHERWISE (NOT AS BOARD RECOMMENDS)
IF SHAREHOLDER ELECTS TO VOTE EACH PROPOSAL SEPARATELY, HE/SHE WILL HEAR:
"Proposal 1: To vote FOR, press 1. Against, press 9. Abstain, press 0."
IF SHAREHOLDER PRESSES 1 FOR PROPOSAL 1, HE/SHE WILL HEAR:
"Your votes have been cast as follows. Proposal 1 "For". If this is correct,
press 1. If incorrect, press 0."
IF SHAREHOLDER PRESSES 1, HE/SHE WILL HEAR:
"If you have received more than one proxy card, you must vote each card
separately. If you would like to vote another proxy, press 1 now. To end this
call, press 0 now."
IF SHAREHOLDER PRESSES 0, HE/SHE WILL HEAR:
"Please refer to your proxy card as you vote. To vote as the Board recommends,
press 1 now. To vote otherwise, press 0 now."
IF SHAREHOLDER PRESSES 9 FOR PROPOSAL 1, HE/SHE WILL HEAR:
"Your votes have been cast as follows. Proposal 1 "Against". If this is correct,
press 1. If incorrect, press 0."
IF SHAREHOLDER PRESSES 1, HE/SHE WILL HEAR:
"If you have received more than one proxy card, you must vote each card
separately. If you would like to vote another proxy, press 1 now. To end this
call, press 0 now."
IF SHAREHOLDER PRESSES 0, HE/SHE WILL HEAR:
"Please refer to your proxy card as you vote. To vote as the Board recommends,
press 1 now. To vote otherwise, press 0 now."
IF SHAREHOLDER PRESSES 0 FOR PROPOSAL 1, HE/SHE WILL HEAR:
"Your votes have been cast as follows. Proposal 1 "Abstain". If this is correct,
press 1. If incorrect, press 0."
IF SHAREHOLDER PRESSES 1, HE/SHE WILL HEAR:
"If you have received more than one proxy card, you must vote each card
separately. If you would like to vote another proxy, press 1 now. To end this
call, press 0 now."
IF SHAREHOLDER PRESSES 0, HE/SHE WILL HEAR:
"Please refer to your proxy card as you vote. To vote as the Board recommends,
press 1 now. To vote otherwise, press 0 now."
MANAGEMENT INFORMATION SERVICES
1/13/2006
IF THE SHAREHOLDER PRESSES 1, HE/SHE WILL HEAR:
"If you have received more than one proxy card, you must vote each card
separately. If you would like to vote another proxy, press 1 now. To end this
call, press 0 now."
IF SHAREHOLDER ELECTS TO END THE CALL, HE/SHE WILL HEAR.
"Thank you for voting."
IF SHAREHOLDER ELECTS TO REVOTE THE CANCELLED VOTE OR VOTE ANOTHER PROXY, HE/SHE
IS RETURNED TO THE "PLEASE ENTER THE CONTROL NUMBER" SPEECH (ABOVE).
CALL IS TERMINATED.
MANAGEMENT INFORMATION SERVICES
1/13/2006
PROXY VOTING INFORMATION
A proxy statement was mailed to AIM shareholders of record as of the close of
business on December 2, 2005, for the funds listed below. The purpose of the
proxy statement is to request approval of an Agreement and Plan of
Reorganization or Plan of Reorganization, as applicable. Each proxy statement
contains disclosure information about the proposal for which votes are being
solicited. You can also access your fund's proxy statement, common questions
regarding your fund's proposal, prospectus, and annual report by clicking on the
fund name listed below.
- - AIM Aggressive Growth Fund - AIM Premier Equity Fund
- - AIM Blue Chip Fund - AIM Small Company Growth Fund
- - AIM Mid Cap Growth Fund - AIM Weingarten Fund
HOW TO VOTE
You may cast your vote by any of the following methods. HOWEVER YOU CHOOSE TO
VOTE, IT IS IMPORTANT THAT YOU VOTE NOW TO SAVE THE EXPENSE OF ADDITIONAL
SOLICITATIONS.
(BY INTERNET)
You may vote your shares at www.proxyweb.com unless your shares are held through
a broker, in which case you may vote your shares at www.proxyvote.com.
Enter the control number listed on the proxy card you received in the mail and
follow the instructions on the web site.
(BY TELEPHONE)
Call toll-free 1-888-221-0697.
Enter the control number listed on the proxy card and follow the recorded
instructions.
(BY MAIL)
Complete and sign the proxy card and return it in the postage-paid envelope
provided in the shareholder mailing.
IN PERSON
The shareholder meeting will be held on February 28, 2006. Please notify AIM
Investments at 1-800-952-3502 if you plan to vote your shares at the meeting.
IF YOU HAVE ANY QUESTIONS...
If you have questions on the proxy or the voting process, please contact your
financial consultant or call AIM toll-free at 1-800-952-3502 any business day
between 7:30 a.m. and 7:00 p.m. CT.
If we have not received your proxy card after a reasonable amount of time, a
representative from our proxy solicitation firm, Management Information
Services, may contact you to remind you to exercise your right to vote.
AIM PROXY INFORMATION BY FUND
AIM AGGRESSIVE GROWTH FUND
1. Please read the proxy statement in full. (PDF)
2. Access some typical questions that shareholders may have regarding the
proxy statement. (PDF)
3. You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com.
ADDITIONAL FUND MATERIALS:
o Prospectus (PDF)
o Annual Report (PDF)
Return to top
AIM BLUE CHIP FUND
1. Please read the proxy statement in full. (PDF)
2. Access some typical questions that shareholders may have regarding the
proxy statement. (PDF)
3. You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com.
ADDITIONAL FUND MATERIALS:
o Prospectus (PDF)
o Annual Report (PDF)
Return to top
AIM MID CAP GROWTH FUND
1. Please read the proxy statement in full. (PDF)
2. Access some typical questions that shareholders may have regarding the
proxy statement. (PDF)
3. You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com.
ADDITIONAL FUND MATERIALS:
o Prospectus (PDF)
o Annual Report (PDF)
Return to top
AIM PREMIER EQUITY FUND
1. Please read the proxy statement in full. (PDF)
2. Access some typical questions that shareholders may have regarding the
proxy statement. (PDF)
3. You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com.
ADDITIONAL FUND MATERIALS:
o Prospectus (PDF)
o Annual Report (PDF)
o Semiannual Report (PDF)
Return to top
AIM SMALL COMPANY GROWTH FUND
1. Please read the proxy statement in full. (PDF)
2. Access some typical questions that shareholders may have regarding the
proxy statement. (PDF)
3. You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com.
ADDITIONAL FUND MATERIALS:
o Prospectus (PDF)
o Annual Report (PDF)
Return to top
AIM WEINGARTEN FUND
1. Please read the proxy statement in full. (PDF)
2. Access some typical questions that shareholders may have regarding the
proxy statement. (PDF)
3. You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com.
ADDITIONAL FUND MATERIALS:
o Prospectus (PDF)
o Annual Report (PDF)
Return to top
IF YOU HAVE ANY QUESTIONS...
If you have questions on the proxy or the voting process, please contact your
financial consultant or call AIM toll-free at 1.800.952.3502 any business day
between 7:30 a.m. and 7:00 p.m. CT.
If we have not received your proxy card after a reasonable amount of time, a
representative from our proxy solicitation firm, Management Information
Services, may contact you to remind you to exercise your right to vote.
Return to top
Prospectuses | Help | Site Map | Terms of Use | Privacy
AIM INVESTMENT SERVICES, INC. 01/2006
(c) 2005 A I M Management Group Inc. All Rights Reserved.
QUESTIONS & ANSWERS FOR AIM AGGRESSIVE GROWTH FUND
We encourage you to read the proxy statement in full; however, the following
represent some typical questions that shareholders may have regarding the proxy
statement/prospectus.
HOW DO I VOTE?
Voting may take place in the following ways:
- You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com. You will need the control number from your proxy
card to vote on the Internet. Because Internet voting is the most
economical way to vote your proxy, we encourage all shareholders to
use this method.
- You may call in your vote to a 24-hour automated system at
1-888-221-0697. You will need the control number from your proxy card
to vote by telephone. For questions or to vote through a customer
service representative you may call 1-888-684-2426; you will be asked
to verify your identity such as your current address and ZIP code.
- You may indicate your vote on the proxy card and return it in the
postage-paid envelope provided in the shareholder mailing.
- If you do attend the meeting, you may vote your shares in person.
Please notify AIM Investments at 1-800-952-3502 if you plan to attend
the meeting.
HOW DOES THE BOARD RECOMMEND THAT I VOTE?
The Board, including the independent trustees, unanimously recommends that you
vote FOR the proposal on the proxy card.
WHY SHOULD I VOTE?
Every vote is important. If shareholders fail to vote their proxies, the fund
may not receive enough votes to go forward with the February 28, 2006,
shareholder meeting. If this happens, additional solicitations may have to be
made to obtain a quorum, or proxies may have to be resent to shareholders.
HAS AIM CONTRACTED FOR THE SERVICES OF A PROXY SOLICITOR?
Yes, AIM has hired Management Information Services as its proxy solicitor. If we
do not receive your vote after a reasonable amount of time, you may receive a
telephone call from them reminding you to vote your shares.
WILL MY VOTE BE CONFIDENTIAL USING THE ONLINE PROXY VOTING SYSTEM?
The Web proxy voting system offered by proxyweb.com maintains a high level of
security to ensure the confidentiality of your vote. Security features include:
- SECURE SOCKETS LAYER (SSL) - A security measure that encrypts all
information that travels between proxyweb.com's Web server and the
shareholder's computer.
- CONTROL NUMBER - Each shareholder is required to enter his or her
control number. Proxyweb.com verifies the number and presents the
holder with the proxy card.
- FIREWALL - To protect the confidentiality of your account records,
proxyweb.com uses only control numbers and card codes to register
votes. Voted positions are then periodically uploaded to our master
database of shareholders listed as of the record date. All
account-specific data remains behind our firewall.
HOW DO I SIGN THE PROXY CARD?
The following general rules for signing proxy cards may be of assistance to you
and could help avoid the time and expense involved in validating your vote if
you fail to sign your proxy card properly.
Individual Accounts: Shareholders should sign exactly as their name appears in
the account registration shown on the proxy card.
Joint Accounts: All joint owners should sign exactly as their names appear in
the account registration shown on the proxy card.
All Other Accounts: The capacity of the individual signing the proxy card (for
example, "trustee") should be indicated unless it is reflected in the form of
registration. If a corporation, limited liability company, or partnership,
please sign full entity name and indicate the signer's position with the entity.
WHAT IS THE DEADLINE FOR VOTING?
All votes must be received before or at the Shareholder Meeting, which will be
held on February 28, 2006 at 3:00 p.m. Central Time.
WHAT IS THE PROPOSAL BEING PRESENTED AT THE MEETING AND WHAT AM I BEING ASKED TO
VOTE ON?
- You are being asked to vote on the approval of a Plan of
Reorganization (the "Plan") under which all of the assets and
liabilities of AIM Aggressive Growth Fund (the "Fund"), a portfolio of
AIM Equity Funds ("Trust") will be transferred to AIM Constellation
Fund ("Buying Fund"), also a portfolio of Trust, and Trust will issue
shares of each class of Buying Fund to shareholders of the
corresponding class of shares of the Fund.
WHERE CAN I FIND MORE INFORMATION CONCERNING THE PROPOSAL?
Further details about the proposal can be found in the proxy statement.
QUESTIONS & ANSWERS FOR AIM BLUE CHIP FUND
We encourage you to read the proxy statement in full; however, the following
represent some typical questions that shareholders may have regarding the proxy
statement/prospectus.
HOW DO I VOTE?
Voting may take place in the following ways:
- You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com. You will need the control number from your proxy
card to vote on the Internet. Because Internet voting is the most
economical way to vote your proxy, we encourage all shareholders to
use this method.
- You may call in your vote to a 24-hour automated system at
1-888-221-0697. You will need the control number from your proxy card
to vote by telephone. For questions or to vote through a customer
service representative you may call 1-888-684-2426; you will be asked
questions to verify your identity such as your current address and ZIP
code.
- You may indicate your vote on the proxy card and return it in the
postage-paid envelope provided in the shareholder mailing.
- If you do attend the meeting, you may vote your shares in person.
Please notify AIM Investments at 1-800-952-3502 if you plan to attend
the meeting.
HOW DOES THE BOARD RECOMMEND THAT I VOTE?
The Board, including the independent trustees, unanimously recommends that you
vote FOR the proposal on the proxy card.
WHY SHOULD I VOTE?
Every vote is important. If shareholders fail to vote their proxies, the fund
may not receive enough votes to go forward with the February 28, 2006,
shareholder meeting. If this happens, additional solicitations may have to be
made to obtain a quorum, or proxies may have to be resent to shareholders.
HAS AIM CONTRACTED FOR THE SERVICES OF A PROXY SOLICITOR?
Yes, AIM has hired Management Information Services as its proxy solicitor. If we
do not receive your vote after a reasonable amount of time, you may receive a
telephone call from them reminding you to vote your shares.
WILL MY VOTE BE CONFIDENTIAL USING THE ONLINE PROXY VOTING SYSTEM?
The Web proxy voting system offered by proxyweb.com maintains a high level of
security to ensure the confidentiality of your vote. Security features include:
- SECURE SOCKETS LAYER (SSL) - A security measure that encrypts all
information that travels between proxyweb.com's Web server and the
shareholder's computer.
- CONTROL NUMBER - Each shareholder is required to enter his or her
control number. Proxyweb.com verifies the number and presents the
holder with the proxy card.
- FIREWALL - To protect the confidentiality of your account records,
proxyweb.com uses only control numbers and card codes to register
votes. Voted positions are then periodically uploaded to our master
database of shareholders listed as of the record date. All
account-specific data remains behind our firewall.
HOW DO I SIGN THE PROXY CARD?
The following general rules for signing proxy cards may be of assistance to you
and could help avoid the time and expense involved in validating your vote if
you fail to sign your proxy card properly.
Individual Accounts: Shareholders should sign exactly as their name appears in
the account registration shown on the proxy card.
Joint Accounts: All joint owners should sign exactly as their names appear in
the account registration shown on the proxy card.
All Other Accounts: The capacity of the individual signing the proxy card (for
example, "trustee") should be indicated unless it is reflected in the form of
registration. If a corporation, limited liability company, or partnership,
please sign full entity name and indicate the signer's position with the entity.
WHAT IS THE DEADLINE FOR VOTING?
All votes must be received before or at the Shareholder Meeting, which will be
held on February 28, 2006 at 3:00 p.m. Central Time.
WHAT IS THE PROPOSAL BEING PRESENTED AT THE MEETING AND WHAT AM I BEING ASKED TO
VOTE ON?
- You are being asked to vote on the approval of a Plan of
Reorganization (the "Plan") under which all of the assets and
liabilities of AIM Blue Chip Fund (the "Fund"), a portfolio of AIM
Equity Funds ("Trust"), will be transferred to AIM Large Cap Growth
Fund ("Buying Fund"), also a portfolio of Trust, and Trust will issue
shares of each class of Buying Fund to shareholders of the
corresponding class of shares of the Fund.
WHERE CAN I FIND MORE INFORMATION CONCERNING THE PROPOSAL?
Further details about the proposal can be found in the proxy statement.
QUESTIONS & ANSWERS FOR AIM MID CAP GROWTH FUND
We encourage you to read the proxy statement in full; however, the following
represent some typical questions that shareholders may have regarding the proxy
statement/prospectus.
HOW DO I VOTE?
Voting may take place in the following ways:
- You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com. You will need the control number from your proxy
card to vote on the Internet. Because Internet voting is the most
economical way to vote your proxy, we encourage all shareholders to
use this method.
- You may call in your vote to a 24-hour automated system at
1-888-221-0697. You will need the control number from your proxy card
to vote by telephone. For questions or to vote through a customer
service representative you may call 1-888-684-2426; you will be asked
questions to verify your identity such as your current address and ZIP
code.
- You may indicate your vote on the proxy card and return it in the
postage-paid envelope provided in the shareholder mailing.
- If you do attend the meeting, you may vote your shares in person.
Please notify AIM Investments at 1-800-952-3502 if you plan to attend
the meeting.
HOW DOES THE BOARD RECOMMEND THAT I VOTE?
The Board, including the independent trustees, unanimously recommends that you
vote FOR the proposal on the proxy card.
WHY SHOULD I VOTE?
Every vote is important. If shareholders fail to vote their proxies, the fund
may not receive enough votes to go forward with the February 28, 2006,
shareholder meeting. If this happens, additional solicitations may have to be
made to obtain a quorum, or proxies may have to be resent to shareholders.
HAS AIM CONTRACTED FOR THE SERVICES OF A PROXY SOLICITOR?
Yes, AIM has hired Management Information Services as its proxy solicitor. If we
do not receive your vote after a reasonable amount of time, you may receive a
telephone call from them reminding you to vote your shares.
WILL MY VOTE BE CONFIDENTIAL USING THE ONLINE PROXY VOTING SYSTEM?
The Web proxy voting system offered by proxyweb.com maintains a high level of
security to ensure the confidentiality of your vote. Security features include:
- SECURE SOCKETS LAYER (SSL) - A security measure that encrypts all
information that travels between proxyweb.com's Web server and the
shareholder's computer.
- CONTROL NUMBER - Each shareholder is required to enter his or her
control number. Proxyweb.com verifies the number and presents the
holder with the proxy card.
- FIREWALL - To protect the confidentiality of your account records,
proxyweb.com uses only control numbers and card codes to register
votes. Voted positions are then periodically uploaded to our master
database of shareholders listed as of the record date. All
account-specific data remains behind our firewall.
HOW DO I SIGN THE PROXY CARD?
The following general rules for signing proxy cards may be of assistance to you
and could help avoid the time and expense involved in validating your vote if
you fail to sign your proxy card properly.
Individual Accounts: Shareholders should sign exactly as their name appears in
the account registration shown on the proxy card.
Joint Accounts: All joint owners should sign exactly as their names appear in
the account registration shown on the proxy card.
All Other Accounts: The capacity of the individual signing the proxy card (for
example, "trustee") should be indicated unless it is reflected in the form of
registration. If a corporation, limited liability company, or partnership,
please sign full entity name and indicate the signer's position with the entity.
WHAT IS THE DEADLINE FOR VOTING?
All votes must be received before or at the Shareholder Meeting, which will be
held on February 28, 2006 at 3:00 p.m. Central Time.
WHAT IS THE PROPOSAL BEING PRESENTED AT THE MEETING AND WHAT AM I BEING ASKED TO
VOTE ON?
- You are being asked to vote on the approval of an Agreement and Plan
of Reorganization (the "Agreement") under which all of the assets and
liabilities of AIM Mid Cap Growth Fund (the "Fund"), a portfolio of
AIM Equity Funds ("Trust") will be transferred to AIM Dynamics Fund
("Buying Fund"), a portfolio of AIM Stock Funds ("Buyer"), and Buyer
will issue shares of each class of Buying Fund to shareholders of the
corresponding class of shares of the Fund.
WHERE CAN I FIND MORE INFORMATION CONCERNING THE PROPOSAL?
Further details about the proposal can be found in the proxy statement.
QUESTIONS & ANSWERS FOR AIM PREMIER EQUITY FUND
We encourage you to read the proxy statement in full; however, the following
represent some typical questions that shareholders may have regarding the proxy
statement/prospectus.
HOW DO I VOTE?
Voting may take place in the following ways:
- You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com. You will need the control number from your proxy
card to vote on the Internet. Because Internet voting is the most
economical way to vote your proxy, we encourage all shareholders to
use this method.
- You may call in your vote to a 24-hour automated system at
1-888-221-0697. You will need the control number from your proxy card
to vote by telephone. For questions or to vote through a customer
service representative you may call 1-888-684-2426; you will be asked
questions to verify your identity such as your current address and ZIP
code.
- You may indicate your vote on the proxy card and return it in the
postage-paid envelope provided in the shareholder mailing.
- If you do attend the meeting, you may vote your shares in person.
Please notify AIM Investments at 1-800-952-3502 if you plan to attend
the meeting.
HOW DOES THE BOARD RECOMMEND THAT I VOTE?
The Board, including the independent trustees, unanimously recommends that you
vote FOR the proposal on the proxy card.
WHY SHOULD I VOTE?
Every vote is important. If shareholders fail to vote their proxies, the fund
may not receive enough votes to go forward with the February 28, 2006,
shareholder meeting. If this happens, additional solicitations may have to be
made to obtain a quorum, or proxies may have to be resent to shareholders.
HAS AIM CONTRACTED FOR THE SERVICES OF A PROXY SOLICITOR?
Yes, AIM has hired Management Information Services as its proxy solicitor. If we
do not receive your vote after a reasonable amount of time, you may receive a
telephone call from them reminding you to vote your shares.
WILL MY VOTE BE CONFIDENTIAL USING THE ONLINE PROXY VOTING SYSTEM?
The Web proxy voting system offered by proxyweb.com maintains a high level of
security to ensure the confidentiality of your vote. Security features include:
- SECURE SOCKETS LAYER (SSL) - A security measure that encrypts all
information that travels between proxyweb.com's Web server and the
shareholder's computer.
- CONTROL NUMBER - Each shareholder is required to enter his or her
control number. Proxyweb.com verifies the number and presents the
holder with the proxy card.
- FIREWALL - To protect the confidentiality of your account records,
proxyweb.com uses only control numbers and card codes to register
votes. Voted positions are then periodically uploaded to our master
database of shareholders listed as of the record date. All
account-specific data remains behind our firewall.
HOW DO I SIGN THE PROXY CARD?
The following general rules for signing proxy cards may be of assistance to you
and could help avoid the time and expense involved in validating your vote if
you fail to sign your proxy card properly.
Individual Accounts: Shareholders should sign exactly as their name appears in
the account registration shown on the proxy card.
Joint Accounts: All joint owners should sign exactly as their names appear in
the account registration shown on the proxy card.
All Other Accounts: The capacity of the individual signing the proxy card (for
example, "trustee") should be indicated unless it is reflected in the form of
registration. If a corporation, limited liability company, or partnership,
please sign full entity name and indicate the signer's position with the entity.
WHAT IS THE DEADLINE FOR VOTING?
All votes must be received before or at the Shareholder Meeting, which will be
held on February 28, 2006 at 3:00 p.m. Central Time.
WHAT IS THE PROPOSAL BEING PRESENTED AT THE MEETING AND WHAT AM I BEING ASKED TO
VOTE ON?
- You are being asked to vote on the approval of an Agreement and Plan
of Reorganization (the "Agreement") under which all of the assets and
liabilities of AIM Premier Equity Fund (the "Fund"), a portfolio of
AIM Funds Group ("Trust"), will be transferred to AIM Charter Fund
("Buying Fund"), a portfolio of AIM Equity Funds ("Buyer"), and Buyer
will issue shares of each class of Buying Fund to shareholders of the
corresponding class of shares of the Fund.
WHERE CAN I FIND MORE INFORMATION CONCERNING THE PROPOSED AGREEMENT?
Further details about the proposal can be found in the proxy statement.
QUESTIONS & ANSWERS FOR AIM SMALL COMPANY GROWTH FUND
We encourage you to read the proxy statement in full; however, the following
represent some typical questions that shareholders may have regarding the proxy
statement/prospectus.
HOW DO I VOTE?
Voting may take place in the following ways:
- You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com. You will need the control number from your proxy
card to vote on the Internet. Because Internet voting is the most
economical way to vote your proxy, we encourage all shareholders to
use this method.
- You may call in your vote to a 24-hour automated system at
1-888-221-0697. You will need the control number from your proxy card
to vote by telephone. For questions or to vote through a customer
service representative you may call 1-888-684-2426; you will be asked
questions to verify your identity such as your current address and ZIP
code.
- You may indicate your vote on the proxy card and return it in the
postage-paid envelope provided in the shareholder mailing.
- If you do attend the meeting, you may vote your shares in person.
Please notify AIM Investments at 1-800-952-3502 if you plan to attend
the meeting.
HOW DOES THE BOARD RECOMMEND THAT I VOTE?
The Board, including the independent trustees, unanimously recommends that you
vote FOR the proposal on the proxy card.
WHY SHOULD I VOTE?
Every vote is important. If shareholders fail to vote their proxies, the fund
may not receive enough votes to go forward with the February 28, 2006,
shareholder meeting. If this happens, additional solicitations may have to be
made to obtain a quorum, or proxies may have to be resent to shareholders.
HAS AIM CONTRACTED FOR THE SERVICES OF A PROXY SOLICITOR?
Yes, AIM has hired Management Information Services as its proxy solicitor. If we
do not receive your vote after a reasonable amount of time, you may receive a
telephone call from them reminding you to vote your shares.
WILL MY VOTE BE CONFIDENTIAL USING THE ONLINE PROXY VOTING SYSTEM?
The Web proxy voting system offered by proxyweb.com maintains a high level of
security to ensure the confidentiality of your vote. Security features include:
- SECURE SOCKETS LAYER (SSL) - A security measure that encrypts all
information that travels between proxyweb.com's Web server and the
shareholder's computer.
- CONTROL NUMBER - Each shareholder is required to enter his or her
control number. Proxyweb.com verifies the number and presents the
holder with the proxy card.
- FIREWALL - To protect the confidentiality of your account records,
proxyweb.com uses only control numbers and card codes to register
votes. Voted positions are then periodically uploaded to our master
database of shareholders listed as of the record date. All
account-specific data remains behind our firewall.
HOW DO I SIGN THE PROXY CARD?
The following general rules for signing proxy cards may be of assistance to you
and could help avoid the time and expense involved in validating your vote if
you fail to sign your proxy card properly.
Individual Accounts: Shareholders should sign exactly as their name appears in
the account registration shown on the proxy card.
Joint Accounts: All joint owners should sign exactly as their names appear in
the account registration shown on the proxy card.
All Other Accounts: The capacity of the individual signing the proxy card (for
example, "trustee") should be indicated unless it is reflected in the form of
registration. If a corporation, limited liability company, or partnership,
please sign full entity name and indicate the signer's position with the entity.
WHAT IS THE DEADLINE FOR VOTING?
All votes must be received before or at the Shareholder Meeting, which will be
held on February 28, 2006 at 3:00 p.m. Central Time.
WHAT IS THE PROPOSAL BEING PRESENTED AT THE MEETING AND WHAT AM I BEING ASKED TO
VOTE ON?
- You are being asked to vote on the approval of an Agreement and Plan
of Reorganization (the "Agreement") under which all of the assets and
liabilities of AIM Small Company Growth Fund (the "Fund"), a portfolio
of AIM Stock Funds ("Trust"), will be transferred to AIM Small Cap
Growth Fund ("Buying Fund"), a portfolio of AIM Growth Series
("Buyer"), and Buyer will issue shares of each class of Buying Fund to
shareholders of the corresponding class of shares of the Fund.
WHERE CAN I FIND MORE INFORMATION CONCERNING THE PROPOSED AGREEMENT?
Further details about the proposal can be found in the proxy statement.
QUESTIONS & ANSWERS FOR AIM WEINGARTEN FUND
We encourage you to read the proxy statement in full; however, the following
represent some typical questions that shareholders may have regarding the proxy
statement/prospectus.
HOW DO I VOTE?
Voting may take place in the following ways:
- You may vote your shares at www.proxyweb.com unless your shares are
held through a broker, in which case you may vote your shares at
www.proxyvote.com. You will need the control number from your proxy
card to vote on the Internet. Because Internet voting is the most
economical way to vote your proxy, we encourage all shareholders to
use this method.
- You may call in your vote to a 24-hour automated system at
1-888-221-0697. You will need the control number from your proxy card
to vote by telephone. For questions or to vote through a customer
service representative you may call 1-888-684-2426; you will be asked
questions to verify your identity such as your current address and ZIP
code.
- You may indicate your vote on the proxy card and return it in the
postage-paid envelope provided in the shareholder mailing.
- If you do attend the meeting, you may vote your shares in person.
Please notify AIM Investments at 1-800-952-3502 if you plan to attend
the meeting.
HOW DOES THE BOARD RECOMMEND THAT I VOTE?
The Board, including the independent trustees, unanimously recommends that you
vote FOR the proposal on the proxy card.
WHY SHOULD I VOTE?
Every vote is important. If shareholders fail to vote their proxies, the fund
may not receive enough votes to go forward with the February 28, 2006,
shareholder meeting. If this happens, additional solicitations may have to be
made to obtain a quorum, or proxies may have to be resent to shareholders.
HAS AIM CONTRACTED FOR THE SERVICES OF A PROXY SOLICITOR?
Yes, AIM has hired Management Information Services as its proxy solicitor. If we
do not receive your vote after a reasonable amount of time, you may receive a
telephone call from them reminding you to vote your shares.
WILL MY VOTE BE CONFIDENTIAL USING THE ONLINE PROXY VOTING SYSTEM?
The Web proxy voting system offered by proxyweb.com maintains a high level of
security to ensure the confidentiality of your vote. Security features include:
- SECURE SOCKETS LAYER (SSL) - A security measure that encrypts all
information that travels between proxyweb.com's Web server and the
shareholder's computer.
- CONTROL NUMBER - Each shareholder is required to enter his or her
control number. Proxyweb.com verifies the number and presents the
holder with the proxy card.
- FIREWALL - To protect the confidentiality of your account records,
proxyweb.com uses only control numbers and card codes to register
votes. Voted positions are then periodically uploaded to our master
database of shareholders listed as of the record date. All
account-specific data remains behind our firewall.
HOW DO I SIGN THE PROXY CARD?
The following general rules for signing proxy cards may be of assistance to you
and could help avoid the time and expense involved in validating your vote if
you fail to sign your proxy card properly.
Individual Accounts: Shareholders should sign exactly as their name appears in
the account registration shown on the proxy card.
Joint Accounts: All joint owners should sign exactly as their names appear in
the account registration shown on the proxy card.
All Other Accounts: The capacity of the individual signing the proxy card (for
example, "trustee") should be indicated unless it is reflected in the form of
registration. If a corporation, limited liability company, or partnership,
please sign full entity name and indicate the signer's position with the entity.
WHAT IS THE DEADLINE FOR VOTING?
All votes must be received before or at the Shareholder Meeting, which will be
held on February 28, 2006 at 3:00 p.m. Central Time.
WHAT IS THE PROPOSAL BEING PRESENTED AT THE MEETING AND WHAT AM I BEING ASKED TO
VOTE ON?
- You are being asked to vote on the approval of a Plan of
Reorganization (the "Plan") under which all of the assets and
liabilities of AIM Weingarten Fund (the "Fund"), a portfolio of AIM
Equity Funds ("Trust"), will be transferred to AIM Constellation Fund
("Buying Fund"), also a portfolio of Trust, and Trust will issue
shares of each class of Buying Fund to shareholders of the
corresponding class of shares of the Fund.
WHERE CAN I FIND MORE INFORMATION CONCERNING THE PROPOSED PLAM?
Further details about the proposals can be found in the proxy statement.
HYPERLINK ALERT
You are leaving the AIM Investments Web Site.
As a convenience to our users, the AIM Investments web site contains links to
other web sites that are created and maintained by other organizations.
AIM INVESTMENTS DOES NOT CONTROL, CANNOT GUARANTEE, AND IS NOT RESPONSIBLE FOR
THE ACCURACY, TIMELINESS, OR EVEN THE CONTINUED AVAILABILITY OR EXISTENCE OF THE
INFORMATION CONTAINED ON THE WEB SITE YOU ARE ABOUT TO ENTER.
Access is provided for the convenience of online shareholder voting for the AIM
Investments only and should not be construed as an offer, solicitation,
recommendation, endorsement or approval by AIM Investments of any other products
or services described in such other web sites.
[OK GRAPHIC]
- --------------------------------------------------------------------------------
Prospectuses | Help | Site Map | Terms of Use | Privacy
- --------------------------------------------------------------------------------
A I M MANAGEMENT GROUP INC.
(c) 2005 A I M Management Group Inc. All Rights Reserved.
The following information appears in the AIM Aggressive Growth Fund Annual
Report to Shareholders dated October 31, 2005.
"You have recently received or should shortly receive a proxy requesting your
vote on a proposed merger of AIM Aggressive Fund into AIM Constellation Fund. We
encourage you to read the proxy materials carefully and to vote promptly. The
ways in which you may cast your proxy ballot are detailed in the proxy
materials."
The following information appears in the AIM Blue Chip Fund Annual Report to
Shareholders dated October 31, 2005.
"You have recently received or should shortly receive a proxy requesting your
vote on a proposed merger of AIM Blue Chip Fund into AIM Large Cap Growth Fund.
We encourage you to read the proxy materials carefully and to vote promptly. The
ways in which you may cast your proxy ballot are detailed in the proxy
materials."
The following information appears in the AIM Mid Cap Growth Fund Annual Report
to Shareholders dated October 31, 2005.
"You have recently received or should shortly receive a proxy requesting your
vote on a proposed merger of AIM Mid Cap Growth Fund into AIM Dynamics Fund. We
encourage you to read the proxy materials carefully and to vote promptly. The
ways in which you may cast your proxy ballot are detailed in the proxy
materials."
The following information appears in the AIM Weingarten Fund Annual Report to
Shareholders dated October 31, 2005.
"You have recently received or should shortly receive a proxy requesting your
vote on a proposed merger of AIM Weingarten Fund into AIM Constellation Fund. We
encourage you to read the proxy materials carefully and to vote promptly. The
ways in which you may cast your proxy ballot are detailed in the proxy
materials."