-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WDLUCEXaI20R8GG7uVT/7Epxq0SxNC6Rts+DpKkIDV0Jod35V8wp7wmpvmkqDYyn VwabwgU+w38o87CxVsry3g== 0000950129-04-003293.txt : 20040514 0000950129-04-003293.hdr.sgml : 20040514 20040514162148 ACCESSION NUMBER: 0000950129-04-003293 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20040514 EFFECTIVENESS DATE: 20040514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIM FUNDS GROUP/DE CENTRAL INDEX KEY: 0000019034 IRS NUMBER: 060841973 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-27334 FILM NUMBER: 04808073 BUSINESS ADDRESS: STREET 1: 11 GREENWAY PLZ STE 100 CITY: HOUSTON STATE: TX ZIP: 77046 BUSINESS PHONE: 7136261919 MAIL ADDRESS: STREET 1: AIM FUNDS GROUP STREET 2: 11 GREENWAY PLZ STE 100 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: AIM FUNDS GROUP DATE OF NAME CHANGE: 19921016 FORMER COMPANY: FORMER CONFORMED NAME: CIGNA GROWTH FUND INC DATE OF NAME CHANGE: 19860227 FORMER COMPANY: FORMER CONFORMED NAME: CG FUND INC DATE OF NAME CHANGE: 19830516 497 1 h15527be497.txt AIM FUNDS GROUP - 497(E) CLASS A, CLASS B, CLASS C AND CLASS R SHARES OF AIM PREMIER EQUITY FUND Supplement dated May 14, 2004 to the Prospectus dated April 30, 2004 as supplemented April 30, 2004 The following replaces in its entirety the information appearing in the second paragraph under the heading "INVESTMENT OBJECTIVES AND STRATEGIES" on page 1 of the Prospectus: "The fund seeks to meet its objectives by investing, normally, at least 80% of its assets in equity securities, including convertible securities. In managing the fund, the advisor diversifies the investment portfolio among the core, growth and value equity investment disciplines to construct a single, core investment portfolio. A separate portfolio management team will independently manage the assets represented by each investment discipline. Normally, 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. However, the allocation will vary according to the performance of each investment discipline, as well as periodic rebalancing by the advisor to maintain a core investment portfolio during various market cycles. In complying with the 80% investment requirement, the fund's investments may include synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the fund's direct investments, and may include warrants, futures, options, exchange-traded funds and American Depositary Receipts. The core discipline portfolio managers focus on equity securities of (1) out-of-favor cyclical growth companies, (2) established growth companies that are undervalued compared to historical relative valuation parameters, (3) 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 (4) 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 (1) companies with the potential to consistently generate above-average growth in sales and earnings, (2) established large-cap companies with strong business franchises, and (3) 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." The following new paragraph is added after the third paragraph appearing under the heading "INVESTMENT OBJECTIVES AND STRATEGIES" on page 1 of the Prospectus: "The core discipline portfolio managers consider whether to reduce or eliminate a particular security when they believe the company no longer fits into one or more of the core categories. A growth stock may be reduced or eliminated when it no longer meets investment criteria, based on negative earnings revisions or deterioration in the fundamental business prospects, or to capitalize on a more attractive investment opportunity. A value stock may be reduced or eliminated in order to capitalize on a more attractive investment opportunity, when its market value exceeds the portfolio manager's estimate of its intrinsic value or when permanent, fundamental deterioration results in a reduction in intrinsic value with inadequate upside potential or unexpected deterioration in financial strength." The following new paragraph is added after the first paragraph appearing under the heading "PRINCIPAL RISKS OF INVESTING IN THE FUND" on page 1 of the Prospectus: "The fund's investments in different, independently-managed investment disciplines create allocation risk, which is the risk that the allocation of investments among core, growth and value companies may have a more significant effect on the fund's net asset value when one of these disciplines is performing more poorly than the other(s). Additionally, the active rebalancing of the 1 fund among these investment disciplines may result in increased transaction costs. The independent management of the three discipline sections may also result in adverse tax consequences if the portfolio managers responsible for the fund's three investment disciplines effect transactions in the same security on or about the same time." The following replaces in its entirety the information appearing under the heading "FUND MANAGEMENT - PORTFOLIO MANAGERS" on page 5 of the Prospectus: "The advisor uses a team approach to investment management. The individual members of the team who are primarily responsible for the management of the fund's portfolio are o Ronald S. Sloan (lead manager of the fund, who is responsible for the percentage allocation of assets among the three style disciplines, and also lead manager of the Mid/Large Cap Core Team), Senior Portfolio Manager, who has been responsible for the fund since 2004 and has been associated with the advisor and/or its affiliates since 1998. o Lanny H. Sachnowitz (lead manager of the Large Cap Growth Team), Senior Portfolio Manager, who has been responsible for the fund since 2004 and has been associated with the advisor and/or its affiliates since 1987. o Bret W. Stanley (lead manager of the Basic Value Team), Senior Portfolio Manager, who has been responsible for the fund since 2004 and has been associated with the advisor and/or its affiliates since 1998. More information on the fund's Mid/Large Cap Core, Large Cap Growth and Basic Value Teams may be found on our website (http://www.aiminvestments.com/teams). The website is not a part of this prospectus." 2 INSTITUTIONAL CLASS SHARES OF AIM BALANCED FUND AIM BASIC BALANCED FUND AIM MID CAP BASIC VALUE FUND AIM PREMIER EQUITY FUND Supplement dated May 14, 2004 to the Prospectus dated April 30, 2004 as supplemented April 30, 2004 The following replaces in its entirety the information appearing in the second paragraph under the heading "INVESTMENT OBJECTIVES AND STRATEGIES - AIM PREMIER EQUITY FUND (PREMIER EQUITY)" on page 1 of the Prospectus: "The fund seeks to meet its objectives by investing, normally, at least 80% of its assets in equity securities, including convertible securities. In managing the fund, the advisor diversifies the investment portfolio among the core, growth and value equity investment disciplines to construct a single, core investment portfolio. A separate portfolio management team will independently manage the assets represented by each investment discipline. Normally, 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. However, the allocation will vary according to the performance of each investment discipline, as well as periodic rebalancing by the advisor to maintain a core investment portfolio during various market cycles. In complying with the 80% investment requirement, the fund's investments may include synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the fund's direct investments, and may include warrants, futures, options, exchange-traded funds and American Depositary Receipts. The fund may invest in preferred stocks and debt instruments that have prospects for growth of capital. The core discipline portfolio managers focus on equity securities of (1) out-of-favor cyclical growth companies, (2) established growth companies that are undervalued compared to historical relative valuation parameters, (3) 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 (4) 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 (1) companies with the potential to consistently generate above-average growth in sales and earnings, (2) established large-cap companies with strong business franchises, and (3) 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. The core discipline portfolio managers consider whether to reduce or eliminate a particular security when they believe the company no longer fits into one or more of the core categories. A growth stock may be reduced or eliminated when it no longer meets investment criteria, based on negative earnings revisions or deterioration in the fundamental business prospects, or to capitalize on a more attractive investment opportunity. A value stock may be reduced or eliminated in order to capitalize on a more attractive investment opportunity, when its market value exceeds the portfolio manager's estimate of its intrinsic value or when permanent, fundamental deterioration results in a reduction in intrinsic value with inadequate upside potential or unexpected deterioration in financial strength." The following new paragraph is added after the first paragraph appearing under the heading "PRINCIPAL RISKS OF INVESTING IN THE FUND - PREMIER EQUITY" on page 3 of the Prospectus: "The fund's investments in different, independently-managed investment disciplines create allocation risk, which is the risk that the allocation of investments among core, growth and value companies may have a more significant effect on the fund's net asset value when one of these 1 disciplines is performing more poorly than the other(s). Additionally, the active rebalancing of the fund among these investment disciplines may result in increased transaction costs. The independent management of the three disciplines sections may also result in adverse tax consequences if the portfolio managers responsible for the fund's three investment disciplines effect transactions in the same security on or about the same time." The following replaces in its entirety the information appearing under the heading "FUND MANAGEMENT - PORTFOLIO MANAGERS - PREMIER EQUITY" on page 11 of the Prospectus: o "Ronald S. Sloan (lead manager of the fund, who is responsible for the percentage allocation of assets among the three style disciplines, and also lead manager of the Mid/Large Cap Core Team), Senior Portfolio Manager, who has been responsible for the fund since 2004 and has been associated with the advisor and/or its affiliates since 1998. o Lanny H. Sachnowitz (lead manager of the Large Cap Growth Team), Senior Portfolio Manager, who has been responsible for the fund since 2004 and has been associated with the advisor and/or its affiliates since 1987. o Bret W. Stanley (lead manager of the Basic Value Team), Senior Portfolio Manager, who has been responsible for the fund since 2004 and has been associated with the advisor and/or its affiliates since 1998. More information on the fund's Mid/Large Cap Core, Large Cap Growth and Basic Value Teams may be found on our website (http://www.aiminvestments.com/teams). The website is not a part of this prospectus." 2 -----END PRIVACY-ENHANCED MESSAGE-----