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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934
Release No. 34-56025A / July 6, 2007

Administrative Proceeding File No. 3-11701


In the Matter of

Invesco Funds Group, Inc., AIM Advisors, Inc., and AIM Distributors, Inc.

Respondents.



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NOTICE OF PROPOSED DISTRIBUTION PLAN AND OPPORTUNITY FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the Securities and Exchange Commission’s (“Commission”) Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. 201.1103, that Enforcement Division has submitted to the Commission two proposed plans (“Distribution Plans”) for the distribution of monies placed into the two separate Fair Funds created by the Commission’s October 8, 2004 Order in the above-captioned matter. One plan is for the benefit of Invesco Funds Group, Inc. (“IFG”) shareholders and the other for the benefit of AIM Fund (“AIM”) shareholders.

On October 8, 2004, in the above-captioned matter, the Commission issued an Order Instituting Administrative and Cease-and Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (“Order”) (Securities Exchange Act of 1934 Release No. 50506, Investment Advisers Act of 1940 Release No. 2311 and Investment Company Act of 1940 Release No. 26629). Among other things, the Commission’s Order authorized and established a Fair Fund with a related distribution plan to be developed by an Independent Distribution Consultant for the benefit of IFG shareholders. This Fair Fund is comprised of disgorgement and penalties from IFG and additional amounts to compensate shareholders for losses attributable to marking timing trading.

OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested parties are advised that they may print a copy of the proposed Distribution Plan from the Commission’s public website, www.sec.gov or IFG’s public website, www.invescofairfund.com Interested parties may also obtain a written copy of the proposed Distribution Plan by submitting a written request to Jeffery A. Cohen, Assistant Regional Director, United States Securities and Exchange Commission, Burnett Plaza, Suite 1900, 801 Cherry Street, Unit #18, Fort Worth, Texas 76102-6882. Any person or entity wishing to comment on the Distribution Plan must do so by submitting their comments, in writing, no later than August 6, 2007.

  1. by sending a letter to the Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, N.E., Washington, DC 20549-1090;
     
  2. by using the Commission's Internet comment form (http://www.sec.gov/litigation/admin.shtml); or
     
  3. by sending an e-mail to rule-comments@sec.gov.

Comments submitted by e-mail or via the Commission’s website should include the Administrative Proceeding File Number (Admin. Proc. File No. 3-11701) in the subject line. Comments received will be available to the public. Commenters should only submit information that they wish to make publicly available.

THE DISTRIBUTION PLAN

The Distribution Plan provides that IFG will distribute the Fair Fund consisting of $325 million plus interest to shareholders of certain IFG Funds.

The Distribution Plan provides for the allocation and distribution of the Fair Fund, including any accrued interest, to eligible accountholders based on the difference between the actual return of the fund and the estimated return of the fund “but for” the market timing trades addressed by the Order, taking into account the differences in cash balances resulting from those trades. In addition to being compensated for harm caused by market timing, investor accounts will also receive an amount representing a return of advisory fees paid to IFG. Eligible shareholders do not need to go through a claims process.

For the Commission, by its Secretary, pursuant to delegated authority.

Nancy M. Morris
Secretary

See also Proposed Distribution Plan


http://www.sec.gov/litigation/admin/2007/34-56025a.htm


Modified: 07/16/2007