RETAIL CLASSES OF

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

                     (SERIES PORTFOLIOS OF AIM FUNDS GROUP)

                       Supplement dated December 13, 2006
        to the Statement of Additional Information dated April 24, 2006,
           as supplemented May 1, 2006, June 30, 2006, August 1, 2006,
                     September 20, 2006 and October 30, 2006


The following information replaces in its entirety the section entitled
"DESCRIPTION OF FUNDS AND THEIR INVESTMENTS AND RISKS - INVESTMENT STRATEGIES
AND RISKS - OTHER INVESTMENTS - OTHER INVESTMENT COMPANIES" on pages 11 and 12
of the Statement of Additional Information:

                  "OTHER INVESTMENT COMPANIES. Each Fund may purchase shares of
         other investment companies. For each Fund, the 1940 Act imposes the
         following restrictions on investments in other investment companies:
         (i) a Fund may not purchase more than 3% of the total outstanding
         voting stock of another investment company; (ii) a Fund may not invest
         more than 5% of its total assets in securities issued by another
         investment company; and (iii) a Fund may not invest more than 10% of
         its total assets in securities issued by other investment companies.
         These restrictions do not apply to investments by the Funds in
         investment companies that are money market funds, including money
         market funds that have AIM or an affiliate of AIM as an investment
         advisor (the "Affiliated Money Market Funds").

                  With respect to a Fund's purchase of shares of another
         investment company, including an Affiliated Money Market Fund, the Fund
         will indirectly bear its proportionate share of the advisory fees and
         other operating expenses of such investment company.

                  EXCHANGE-TRADED FUNDS. Each Fund may purchase shares of
         exchange-traded funds ("ETFs"). Most ETFs are registered under the 1940
         Act as investment companies. Therefore, a Fund's purchase of shares of
         an ETF may be subject to the restrictions on investments in other
         investment companies discussed above under "Other Investment
         Companies."

                  ETFs hold portfolios of securities that are designed to
         replicate, as closely as possible before expenses, the price and yield
         of a specified market index. The performance results of ETFs will not
         replicate exactly the performance of the pertinent index due to
         transaction and other expenses, including fees to service providers,
         borne by ETFs. ETF shares are sold and redeemed at net asset value only
         in large blocks called creation units and redemption units,
         respectively. ETF shares also may be purchased and sold in secondary
         market trading on national securities exchanges, which allows investors
         to purchase and sell ETF shares at their market price throughout the
         day.

                  Investments in ETFs involve the same risks associated with a
         direct investment in the types of securities included in the indicies
         the ETFs are designed to replicate. In addition, shares of an ETF may
         trade at a market price that is less than their net asset value and an
         active trading market in such shares may not develop or continue.
         Finally there can be no assurance that the






         portfolio of securities purchased by an ETF to replicate a particular
         index will replicate such index."

The following information replaces in its entirety the first paragraph under the
heading "DESCRIPTION OF FUNDS AND THEIR INVESTMENTS AND RISKS - FUND POLICIES -
NON FUNDAMENTAL RESTRICTIONS" on page 25 of the Statement of Additional
Information (such paragraph describes each Fund's non-fundamental investment
restriction regarding issuer diversification):

                  "(1) In complying with the fundamental restriction regarding
         issuer diversification, the Fund will not, with respect to 75% of its
         total assets, purchase the securities of any issuer (other than
         securities issued or guaranteed by the U.S. Government or any of its
         agencies or instrumentalities and securities issued by other investment
         companies), if, as a result, (i) more than 5% of the Fund's total
         assets would be invested in the securities of that issuer, or (ii) the
         Fund would hold more than 10% of the outstanding voting securities of
         that issuer. The Fund may purchase securities of other investment
         companies as permitted by the 1940 Act Laws, Interpretations and
         Exemptions."

Effective January 1, 2007, the following information is added after the second
paragraph under the heading "INVESTMENT ADVISORY AND OTHER SERVICES - OTHER
SERVICE PROVIDERS - TRANSFER AGENT" on page 39 of the Statement of Additional
Information:

                  "SUB-TRANSFER AGENT. AIM Funds Management, Inc. ("AFMI"), 5140
         Yonge Street, Suite 900, Toronto, Ontario M2N6X7, a wholly owned,
         indirect subsidiary of AMVESCAP PLC, provides services to the Trust as
         a sub-transfer agent, pursuant to an agreement between AFMI and AIS.
         The Trust does not pay a fee to AFMI for these services. Rather AFMI is
         compensated by AIS, as a sub-contractor."



                                       2



                             INSTITUTIONAL CLASS OF

                             AIM BASIC BALANCED FUND
                              AIM GLOBAL VALUE FUND
                      AIM INTERNATIONAL SMALL COMPANY FUND
                          AIM MID CAP BASIC VALUE FUND
                            AIM SMALL CAP EQUITY FUND

                     (SERIES PORTFOLIOS OF AIM FUNDS GROUP)

                       Supplement dated December 13, 2006
        to the Statement of Additional Information dated April 24, 2006,
                  as supplemented May 1, 2006, August 1, 2006,
                     September 20, 2006 and October 30, 2006


The following information replaces in its entirety the section entitled
"DESCRIPTION OF FUNDS AND THEIR INVESTMENTS AND RISKS - INVESTMENT STRATEGIES
AND RISKS - OTHER INVESTMENTS - OTHER INVESTMENT COMPANIES" on page 11 of the
Statement of Additional Information:

                  "OTHER INVESTMENT COMPANIES. Each Fund may purchase shares of
         other investment companies. For each Fund, the 1940 Act imposes the
         following restrictions on investments in other investment companies:
         (i) a Fund may not purchase more than 3% of the total outstanding
         voting stock of another investment company; (ii) a Fund may not invest
         more than 5% of its total assets in securities issued by another
         investment company; and (iii) a Fund may not invest more than 10% of
         its total assets in securities issued by other investment companies.
         These restrictions do not apply to investments by the Funds in
         investment companies that are money market funds, including money
         market funds that have AIM or an affiliate of AIM as an investment
         advisor (the "Affiliated Money Market Funds").

                  With respect to a Fund's purchase of shares of another
         investment company, including an Affiliated Money Market Fund, the Fund
         will indirectly bear its proportionate share of the advisory fees and
         other operating expenses of such investment company.

                  EXCHANGE-TRADED FUNDS. Each Fund may purchase shares of
         exchange-traded funds ("ETFs"). Most ETFs are registered under the 1940
         Act as investment companies. Therefore, a Fund's purchase of shares of
         an ETF may be subject to the restrictions on investments in other
         investment companies discussed above under "Other Investment
         Companies."

                  ETFs hold portfolios of securities that are designed to
         replicate, as closely as possible before expenses, the price and yield
         of a specified market index. The performance results of ETFs will not
         replicate exactly the performance of the pertinent index due to
         transaction and other expenses, including fees to service providers,
         borne by ETFs. ETF shares are sold and redeemed at net asset value only
         in large blocks called creation units and redemption units,
         respectively. ETF shares also may be purchased and sold in secondary
         market trading on national securities exchanges, which allows investors
         to purchase and sell ETF shares at their market price throughout the
         day.

                  Investments in ETFs involve the same risks associated with a
         direct investment in the types of securities included in the indicies
         the ETFs are designed to replicate. In addition, shares of an ETF may
         trade at a market price that is less than their net asset value and an
         active trading market in such shares may not develop or continue.
         Finally there can be no assurance that the portfolio of securities
         purchased by an ETF to replicate a particular index will replicate such
         index."






The following information replaces in its entirety the first paragraph under the
heading "DESCRIPTION OF FUNDS AND THEIR INVESTMENTS AND RISKS - FUND POLICIES -
NON FUNDAMENTAL RESTRICTIONS" on page 25 of the Statement of Additional
Information (such paragraph describes each Fund's non-fundamental investment
restriction regarding issuer diversification):

                  "(1) In complying with the fundamental restriction regarding
         issuer diversification, the Fund will not, with respect to 75% of its
         total assets, purchase the securities of any issuer (other than
         securities issued or guaranteed by the U.S. Government or any of its
         agencies or instrumentalities and securities issued by other investment
         companies), if, as a result, (i) more than 5% of the Fund's total
         assets would be invested in the securities of that issuer, or (ii) the
         Fund would hold more than 10% of the outstanding voting securities of
         that issuer. The Fund may purchase securities of other investment
         companies as permitted by the 1940 Act Laws, Interpretations and
         Exemptions."

Effective January 1, 2007, the following information is added after the second
paragraph under the heading "INVESTMENT ADVISORY AND OTHER SERVICES - OTHER
SERVICE PROVIDERS - TRANSFER AGENT" on page 38 of the Statement of Additional
Information:

                  "SUB-TRANSFER AGENT. AIM Funds Management, Inc. ("AFMI"), 5140
         Yonge Street, Suite 900, Toronto, Ontario M2N6X7, a wholly owned,
         indirect subsidiary of AMVESCAP PLC, provides services to the Trust as
         a sub-transfer agent, pursuant to an agreement between AFMI and AIS.
         The Trust does not pay a fee to AFMI for these services. Rather AFMI is
         compensated by AIS, as a sub-contractor."



                                       2