AIM BALANCED FUND
                             AIM BASIC BALANCED FUND
                         AIM EUROPEAN SMALL COMPANY FUND
                              AIM GLOBAL VALUE FUND
                     AIM INTERNATIONAL EMERGING GROWTH FUND
                          AIM MID CAP BASIC VALUE FUND
                             AIM PREMIER EQUITY FUND
                             AIM SELECT EQUITY FUND
                            AIM SMALL CAP EQUITY FUND

                     (SERIES PORTFOLIOS OF AIM FUNDS GROUP)

                         Supplement dated March 19, 2004
          to the Statement of Additional Information dated May 1, 2003
                as supplemented June 12, 2003, October 21, 2003,
             December 16, 2003, January 16, 2004 and March 3, 2004


The following replaces in its entirety the information appearing in the fifth
paragraph under the heading "BROKERAGE ALLOCATION AND OTHER PRACTICES -
BROKERAGE SELECTION":

         "AIM may determine target levels of brokerage business with various
         brokers on behalf of its clients (including the Funds) over a certain
         time period. The target levels will be based upon the following
         factors, among others: (1) the execution services provided by the
         broker; and (2) the research services provided by the broker. Fund
         transactions also may be effected through broker-dealers that recommend
         the Funds to their clients, or that act as agent in the purchase of a
         Fund's shares for their clients. AIM will not enter into a binding
         commitment with brokers to place trades with such brokers involving
         brokerage commissions in precise amounts."

The following replaces in its entirety the information appearing in the second
paragraph under the heading "PURCHASE, REDEMPTION AND PRICING OF SHARES -
PAYMENTS TO DEALERS":

         "In addition to, or instead of, amounts paid to dealers as a sales
         commission, AIM Distributors may, from time to time, at its expense out
         of its own financial resources or as an expense for which it may be
         compensated or reimbursed by an AIM Fund under a distribution plan, if
         applicable, make cash payments to dealer firms as an incentive to sell
         shares of the funds and/or to promote retention of their customers'
         assets in the funds. Such cash payments may be calculated on sales of
         shares of AIM Funds ("Sales-Based Payments"), in which case the total
         amount of such payments shall not exceed 0.25% of the public offering
         price of the shares sold. Such cash payments also may be calculated on
         the average daily net assets of the applicable AIM Fund(s) attributable
         to that particular dealer ("Asset-Based Payments"), in which case the
         total amount of such cash payments shall not exceed 0.25% per annum of
         those assets during a defined period. AIM Distributors may agree to
         make such cash payments to a dealer firm in the form of either or both
         Sales-Based Payments and Asset-Based Payments. AIM Distributors may
         also make other cash payments to dealer firms in addition to or in lieu
         of Sales-Based Payments and Asset-Based Payments, in the form of
         payment for travel expenses, including lodging, incurred in connection
         with trips taken by qualifying registered representatives of those
         dealer firms and their families to places within or outside the United
         States; meeting fees; entertainment; transaction processing and
         transmission charges; advertising or other promotional expenses; or
         other expenses as determined in AIM Distributor's discretion. In
         certain cases these other payments could be significant to the dealer
         firms. Any payments described above will not change the price paid by
         investors for the purchase of the applicable AIM Fund's shares or the
         amount that any particular AIM Fund will receive as proceeds from such
         sales. AIM Distributors determines the cash payments described above in
         its discretion in response to requests from dealer firms, based on
         factors it deems relevant. Dealers may not use sales of the AIM Funds'
         shares to qualify for any incentives to the extent that such incentives
         may be prohibited by the laws of any state."


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                            INSTITUTIONAL CLASSES OF

                                AIM BALANCED FUND
                             AIM PREMIER EQUITY FUND

                     (SERIES PORTFOLIOS OF AIM FUNDS GROUP)

                         Supplement dated March 19, 2004
          to the Statement of Additional Information dated May 1, 2003
                as supplemented June 12, 2003, October 21, 2003,
             December 16, 2003, January 16, 2004 and March 3, 2004


The following replaces in its entirety the information appearing in the fifth
paragraph under the heading "BROKERAGE ALLOCATION AND OTHER PRACTICES -
BROKERAGE SELECTION":

         "AIM may determine target levels of brokerage business with various
         brokers on behalf of its clients (including the Funds) over a certain
         time period. The target levels will be based upon the following
         factors, among others: (1) the execution services provided by the
         broker; and (2) the research services provided by the broker. Fund
         transactions also may be effected through broker-dealers that recommend
         the Funds to their clients, or that act as agent in the purchase of a
         Fund's shares for their clients. AIM will not enter into a binding
         commitment with brokers to place trades with such brokers involving
         brokerage commissions in precise amounts."


                                       1