497(c) Filing for AIM Stock Funds

497 1 d497.htm 497(C) FILING FOR AIM STOCK FUNDS 497(c) Filing for AIM Stock Funds

PROSPECTUS | November 19, 2004

AIM DYNAMICS FUND — INVESTOR CLASS, CLASS A, B, C, AND K

AIM SMALL COMPANY GROWTH FUND — INVESTOR CLASS, CLASS A, B, C, AND K

AIM S&P 500 INDEX FUND — INVESTOR CLASS

Three mutual funds designed for investors seeking long-term capital growth or total return.

The Investor Class shares offered by this Prospectus are offered only to grandfathered investors. Please see the section of the Prospectus entitled “Purchasing Shares.”

Class A, B, and C shares are sold primarily through financial intermediaries. Class K shares are sold to qualified retirement plans, retirement savings programs, educational savings programs and wrap programs primarily through financial intermediaries.


TABLE OF CONTENTS
Investment Goals, Strategies, And Risks		2
Fund Performance		4
Fee Table And Expense Example		6
Investment Risks		8
Principal Risks Associated With The Funds		8
Temporary Defensive Positions		10
Fund Management		10
Portfolio Managers		10
Other Information		11
Dividends And Capital Gain Distributions		12
Financial Highlights		13
Shareholder Information		A-1
Choosing a Share Class		A-1
Tools Used to Combat Excessive Short-Term Trading Activity		A-4
Purchasing Shares		A-5
Redeeming Shares		A-7
Exchanging Shares		A-10
Pricing of Shares		A-12
Taxes		A-13
Obtaining Additional Information		Back Cover

The AIM Family of Funds, AIM and Design, AIM, AIM Funds, AIM Funds and Design, AIM Investor, AIM Lifetime America, AIM LINK, AIM Institutional Funds, aimfunds.com, La Familia AIM de Fondos, La Familia AIM de Fondos and Design, Invierta con DISCIPLINA, Invest with DISCIPLINE, The AIM College Savings Plan, AIM Solo 401(k), AIM Investments and Design and Your goals. Our solutions, are registered service marks and AIM Bank Connection, AIM Internet Connect, AIM Private Asset Management, AIM Private Asset Management and Design, AIM Stylized and/or Design, AIM Alternative Assets and Design, AIM Investments and myaim.com are service marks of A I M Management Group Inc. AIM Trimark is a service mark of A I M Management Group Inc. and AIM Funds Management Inc.

No dealer, salesperson, or any other person has been authorized to give any information or to make any representations other than those contained in this Prospectus, and you should not rely on such other information or representations.

The Securities and Exchange Commission has not approved or disapproved the shares of these Funds. Likewise, the Commission has not determined if this Prospectus is truthful or complete. Anyone who tells you otherwise is committing a federal crime.

AIM STOCK FUNDS

LOGO

A I M Advisors, Inc. (“AIM” or the “Advisor”) is the investment advisor for AIM Dynamics Fund (formerly, INVESCO Dynamics Fund), AIM Small Company Growth Fund (formerly, INVESCO Small Company Growth Fund) and AIM S&P 500 Index Fund (formerly, INVESCO S&P 500 Index Fund) (each a “Fund” and collectively, the “Funds”), and INVESCO Institutional (N.A.), Inc. (“INVESCO Institutional”) is the sub-advisor for AIM S&P 500 Index Fund. On November 25, 2003, the series portfolios of AIM Stock Funds, Inc., a Maryland corporation (the “Company”), were redomesticated as the series portfolios of AIM Stock Funds, a Delaware statutory trust. Prior to November 25, 2003, INVESCO Funds Group, Inc. (“INVESCO”) served as the investment advisor for each series portfolio of the Company. INVESCO Institutional is an affiliate of AIM and INVESCO.

This Prospectus contains important information about the Funds’ Investor Class and, if applicable, Class A, B, C, and K shares. Class A, B, and C shares are sold primarily through financial intermediaries. Class K shares are sold to qualified retirement plans, retirement savings programs, educational savings programs, and wrap programs primarily through financial intermediaries. If you invest through a financial intermediary, please contact your financial intermediary or, with respect to Class K shares, your plan or program sponsor, for detailed information on suitability and transactional issues (i.e., how to purchase or sell shares, minimum investment amounts, and fees and expenses). AIM Dynamics and AIM S&P 500 Index Funds also offer an additional class of shares through separate Prospectuses. Each of the Funds’ classes has varying expenses, with resulting effects on their performance. You can choose the class of shares that is best for you, based on how much you plan to invest and other relevant factors discussed in “Choosing a Share Class.” To obtain additional information about the other class of Dynamics Fund’s and S&P 500 Index Fund’s shares, contact A I M Distributors, Inc. (“ADI”) at 1-800-959-4246.

This Prospectus will tell you more about:

LOGO

Investment Goals & Strategies

LOGO

Potential Investment Risks

LOGO

Past Performance

LOGO

Investment Goals, Strategies, And Risks

FACTORS COMMON TO ALL THE FUNDS

FOR MORE DETAILS ABOUT EACH FUND’S CURRENT INVESTMENTS AND MARKET OUTLOOK, PLEASE SEE THE MOST RECENT ANNUAL OR SEMIANNUAL REPORT.

The Funds seek long-term capital growth. The Funds (except for S&P 500 Index Fund) are actively managed. They invest primarily in equity securities and equity-related instruments that the Advisor believes will rise in price faster than other securities, as well as in options and other investments whose values are based upon the values of equity securities.

All of the Funds (except S&P 500 Index Fund) are managed in the growth style. At the Advisor, growth investing starts with research from the “bottom up”, and focuses on company fundamentals and growth prospects.

We seek securities for the Funds (except S&P 500 Index Fund) that meet the following standards:

Exceptional Growth: The markets and industries they represent are growing significantly faster than the economy as a whole.

Leadership: They are leaders — or emerging leaders — in these markets, securing their positions through technology, marketing, distribution, or some other innovative means.

Financial validation: Their returns — in the form of sales unit growth, rising operating margins, internal funding and other factors — demonstrate exceptional growth and leadership.

Growth investing may be more volatile than other investment styles because growth stocks are more sensitive to investor perceptions of an issuing company’s growth potential. Growth-oriented funds typically will underperform value-oriented funds when investor sentiment favors the value investing style.

S&P 500 Index Fund is passively managed to track the composition and performance of the S&P 500 Stock Index.

At any given time, the Funds may be subject to sector risk. Companies with similar lines of business (for example, financial services, health, or technology) are grouped together in broad categories called sectors. Sector risk is the possibility that a certain sector may underperform other sectors or the market as a whole. The Funds are not limited with respect to sectors in which they can invest. If the portfolio managers allocate more of their respective Fund’s portfolio holdings to a particular economic sector, the Fund’s overall performance will be more susceptible to the economic, business, or other developments which generally affect that sector. A Fund can still be diversified, even if it is heavily weighted in one or more sectors.

In addition to sector risk and the risks out-lined in the following sections for each Fund, the Funds are subject to other principal risks such as market, liquidity, counterparty, foreign securities, lack of timely information, and portfolio turnover risks. These risks are described and discussed later in the Prospectus under the headings “Investment Risks” and “Principal Risks Associated With The Funds.” An investment in a Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. As with any mutual fund, there is always a risk that you may lose money on your investment in a Fund.

LOGO

AIM Dynamics Fund — Investor Class, Class A, B, C, and K

The Fund seeks long-term capital growth. The Fund normally invests at least 65% of its net assets in common stocks of mid-size companies. The Fund considers a company to be a mid-capitalization company if it has a market capitalization, at the time of purchase, within the range of the largest and smallest capitalized companies included in the Russell MidCap^® Index during the most recent 11-month period (based on month-end data) plus the most recent data during the current month. The Russell MidCap^® Index measures the performance of the 800 companies with the lowest market capitalization in the Russell 1000^® Index. The Russell 1000^® Index is a widely recognized, unmanaged index of common stocks of the 1000 largest companies in the Russell 3000^® Index, which measures the performance of the 3000 largest U.S. companies based on total market capitalization. The Fund may invest up to 25% of its assets in securities of non-U.S. issuers. Securities of Canadian issuers and American Depositary Receipts are not subject to this 25% limitation. The Fund also has the flexibility to invest in other types of securities including preferred stocks convertible securities and bonds.

The core of the Fund’s portfolio is invested in securities of established companies that are leaders in attractive growth markets with a history of strong returns. The remainder of the portfolio is invested in securities of companies that show accelerating growth, driven by product cycles, favorable industry or sector conditions, and other factors that the Advisor believes will lead to rapid sales or earnings growth.

The Fund’s strategy relies on many short-term factors including current information about a company, investor interest, price movements of a company’s securities, and general market and monetary conditions. Consequently, the Fund’s investments may be bought and sold relatively frequently.

While the Fund generally invests in mid-sized companies, the Fund sometimes invests in the securities of smaller companies. The prices of these mid-size and small company securities tend to move up and down more rapidly than the securities prices of larger, more established companies, and the price of Fund shares tends to fluctuate more than it would if the Fund invested in the securities of larger companies.

LOGO

AIM Small Company Growth Fund — Investor Class, Class A, B, C, and K

The Fund seeks long-term capital growth. It normally invests 80% of its net assets in small-capitalization companies. The Fund considers a company to be a small-capitalization company if it has a market capitalization, at the time of purchase, no larger than the largest capitalized company included in the Russell 2000^® Index during the most recent 11-month period (based on month-end data) plus the most recent data during the current month. The Russell 2000^® Index is a widely recognized, unmanaged index of common stocks that measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization. We are primarily looking for companies in the developing stages of their life cycles, which are currently priced below our estimation of their potential, have earnings which may be expected to grow faster than the U.S. economy in general, and/or offer the potential for accelerated earnings growth due to rapid growth of sales, new products, management changes, and/or structural changes in the economy.

The Fund may invest up to 25% of its assets in securities of non-U.S. issuers. Securities of Canadian issuers and American Depositary Receipts are not subject to this 25% limitation.

The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. If the fund does trade in this way, it may incur increased transaction costs and brokerage commissions, both of which can lower the actual return on your investment.

Investments in small, developing companies carry greater risk than investments in larger, more established companies. Developing companies generally face intense competition and have a higher rate of failure than larger companies.

LOGO

AIM S&P 500 Index Fund — Investor Class

The Fund seeks price performance and income comparable to the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500” or “Index”). The Fund invests in the stocks that make up the Index, in the same proportions.

The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”). S&P makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general stock market performance. S&P’s only relationship to the Advisor is the licensing of certain trademarks and trade names of S&P and the Index, which is determined, composed, and calculated by S&P without regard to the Advisor or the Fund.

The Fund is not actively managed; instead, the Fund seeks to track the performance of the S&P 500. Therefore, when the S&P 500 drops, the value of shares of the Fund drops accordingly. The Fund makes no effort to hedge against price movements in the S&P 500. Because the Fund will incur operating expenses and transaction costs, the Fund’s performance will not track the performance of the S&P 500 exactly.

LOGO

Fund Performance

Performance information in the bar charts below is that of the Funds’ Investor Class shares which have the longest operating history of the Funds’ classes. Investor Class and Class A, B, C, and K share returns would be similar because all classes of shares invest in the same portfolio of securities. The returns of the classes would differ, however, to the extent of differing levels of expenses or sales loads. In this regard, the returns reflected in the bar charts reflect only the applicable total expenses of the Investor Class shares. If the effect of the other classes’ total expenses were reflected, the returns would be lower than those shown because the other classes have higher total expenses.

The bar charts below show the Funds’ Investor Class shares actual yearly performance (commonly known as their “total return”) for the years ended December 31 over the past decade or since inception. The returns in the bar charts do not reflect a 12b-1 fee in excess of 0.25%, or sales loads; if they did, the total returns shown would be lower. The table below shows the pre-tax and after-tax average annual total returns of Investor Class shares, and pre-tax average annual total returns for Class A, B and C shares and, if applicable, Class K shares for various periods ended December 31, 2003. The after-tax returns are shown only for the Investor Class shares. After-tax returns for other classes of shares offered in this Prospectus will vary.

The information in the charts and table illustrates the variability of each Fund’s total return The table shows each Fund’s performance compared to a broad-based securities market index, a style specific index and/or a peer group index. The indices may not reflect payment of fees, expenses or taxes. The Funds (except for S&P 500 Index Fund) are not managed to track the performance of any particular index, including the indices shown below, and consequently, the performance of the fund may deviate significantly from the performance of the indices shown below. Remember, past performance (before and after taxes) does not indicate how a Fund will perform in the future.


DYNAMICS FUND — INVESTOR CLASS ACTUAL ANNUAL TOTAL RETURN^1,2	SMALL COMPANY GROWTH FUND — INVESTOR CLASS ACTUAL ANNUAL TOTAL RETURN^1,2	S&P 500 INDEX FUND — INVESTOR CLASS ACTUAL ANNUAL TOTAL RETURN^1,2


Best Calendar Qtr. 12/99 38.83% Worst Calendar Qtr. 9/01 (35.02%)	Best Calendar Qtr. 12/99 46.68% Worst Calendar Qtr. 9/01 (28.70%)	Best Calendar Qtr. 12/98 21.22% Worst Calendar Qtr. 9/02 (17.34%)

Returns before taxes for AIM Dynamics Fund, AIM Small Company Growth Fund and AIM S&P 500 Index Fund Investor Class shares’ year-to-date total return as of the calendar quarter ended September 30, 2004 were (1.36%), (3.24%), and 1.01%, respectively.


	AVERAGE ANNUAL TOTAL RETURN^1,2
(for the periods ended December 31, 2003	1 YEAR	5 YEARS		10 YEARS OR SINCE INCEPTION
DYNAMICS FUND
Investor Class
Return Before Taxes	38.27%	(0.32%	)	8.91%
Return After Taxes on Distributions	38.27%	(0.56%	)	6.41%
Return After Taxes on Distributions and Sale of Fund Shares	24.88%	(0.31%	)	6.22%
Class A
Return Before Taxes	30.71%	—		(5.08%	)¹⁴
Class B
Return Before Taxes	32.26%	—		(5.04%	)¹⁴
Class C
Return Before Taxes	36.21%	—		(16.04%	)¹⁵
Class K
Return Before Taxes	37.98%	—		(12.96%	)¹⁶
S&P 500 Index⁴(reflects no deduction for fees, expenses or taxes)	28.67%	(0.57%	)	11.06%
S&P MidCap 400 Index⁵ (reflects no deduction for fees, expenses, or taxes)	35.62%	9.21%		13.93%
Russell Midcap Growth Index⁶ (reflects no deduction for fees, expenses, or taxes)	42.71%	2.01%		9.40%
Lipper Mid-Cap Growth Fund Index⁷ (reflects no deduction for fees, expenses, or taxes)	35.42%	2.18%		8.25%

SMALL COMPANY GROWTH FUND
Investor Class
Return Before Taxes	33.49%	2.93%		8.18%
Return After Taxes on Distributions	33.49%	1.54%		5.10%
Return After Taxes on Distributions and Sale of Fund Shares	21.77%	1.76%		5.20%
Class A
Return Before Taxes	26.05%	—		(3.73%	)¹⁴
Class B
Return Before Taxes	27.69%	—		(3.53%	)¹⁴
Class C
Return Before Taxes	30.79%	—		(14.58%	)¹⁵
Class K
Return Before Taxes	33.37%	—		(2.74%	)¹⁷
S&P 500 Index⁸(reflects no deduction for fees, expenses or taxes)	28.67%	(0.57%	)	11.06%
Russell 2000 Index⁹(reflects no deduction for fees, expenses, or taxes)	47.25%	7.13%		9.47%
Russell 2000 Growth Index¹⁰ (reflects no deduction for fees, expenses, or taxes)	48.54%	0.86%		5.43%
Lipper Small-Cap Growth Fund Index¹¹ (reflects no deduction for fees, expenses, or taxes)	44.77%	6.16%		9.05%

S&P 500 INDEX FUND
Investor Class
Return Before Taxes	27.62%	(1.37%	)	3.97%³
Return After Taxes on Distributions	27.40%	(1.75%	)	3.56%³
Return After Taxes on Distributions and Sale of Fund Shares	18.14%	(1.34%	)	3.21%³
S&P 500 Index¹²(reflects no deduction for fees, expenses, or taxes)	28.67%	(0.57%	)	3.79%³
Lipper S&P 500 Fund Index¹³ (reflects no deduction for fees, expenses, or taxes)	28.25%	(0.88%	)	3.48%³

After-tax returns are provided on a pre-redemption and post-redemption basis. Pre-redemption return assumes you continue to hold your shares and pay taxes on Fund distributions (i.e., dividends and capital gains) but do not reflect taxes that may be incurred upon selling or exchanging shares. Post-redemption return assumes payment of taxes on fund distributions and also that you close your account and pay remaining federal taxes. After-tax returns are calculated using the highest individual federal in -

come tax rate in effect at the time the distribution is paid. State and local taxes are not considered. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. For investors holding their shares in tax-deferred arrangements such as 401(k) plans or individual retirement accounts, the after-tax return shown is not relevant.

¹	Total return figures include reinvested dividends and capital gain distributions and the effect of each class’ expenses.

²	The total returns are for those classes of shares with a full calendar year of performance. The effect of each Class’ total expenses, including 12b-1 fees, front-end sales charge for Class A, and CDSC for Class B are reflected.

³	The Fund (Investor Class shares) commenced investment operations on December 22, 1997. Index comparison begins on December 31, 1997.

⁴

The Standard and Poor’s 500 Index measures the performance of the 500 most widely held common stocks and is considered one of the best indicators of U.S. stock market performance. The fund has elected to use the S&P 500 Index as its broad-based index rather than the S&P MidCap 400^® Index because the Standard & Poor’s 500 Index is a more widely recognized gauge of U.S. stock market performance. The fund has also included the Russell Mid Growth Index which the fund believes more closely reflects the performance of the types of securities in which the fund invests. In addition, the Lipper Mid-Cap Growth Fund Index (which may or may not include the fund) is included for comparison to a peer group.

⁵	The S&P MidCap 400 Index is an unmanaged index indicative of domestic mid-capitalization stock prices.

⁶	The Russell Midcap Growth Index is an unmanaged index that measures the performance of those Russell Midcap Companies with higher price-to-book ratios and higher forecasted growth values.

⁷

The Lipper Mid Cap Growth Fund Index is an equally weighted representation of the 30 largest funds in the Lipper Mid Cap Growth category. These funds typically invest in stocks with market capitalizations between $1 and $5 billion at the time of purchase and have an above-average price-to-earnings ratio, price-to-book ratio, and a three year sales-per-share growth value, compared to the S&P MidCap 400 Index.

⁸

The Standard & Poor’s 500 Index measures the performance of the 500 most widely held common stocks and is considered one of the best indicators of U.S. stock market performance. The fund has elected to use the Standard & Poor’s 500 Index as its broad-based index rather the Russell 2000^® Index because the Standard & Poor’s 500 Index is a more widely recognized gauge of U.S. stock market performance. The fund has also included the Russell 2000 Growth Index, which the fund believes more closely reflects the performance of the types of securities in which the fund invests. In addition, the Lipper Small-Cap Growth Fund Index (which may or may not include the fund) is included for comparison to a peer group.

⁹

The Russell 2000 Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U. S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

¹⁰	The Russell 2000 Growth Index is an unmanaged index that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

¹¹

The Lipper Small-Cap Growth Fund Index is an equally weighted representation of the 30 largest funds in the Lipper Small-Cap Growth category. These funds typically invest in stocks with market capitalizations below $1 billion at the time of purchase and have above-average price-to-earnings ratio, price-to-book ratio, and a three year sales-per-share growth.

¹²	The S&P 500 Index measures the performance of the 500 most widely held common stocks and is considered one of the best indicators of U.S. stock market performance. In addition, the Lipper S&P 500 Fund Index (which may or may not include the fund) is included for comparison to a peer group.

¹³	The Lipper S&P 500 Index is an equally weighted representation of the 30 largest funds within the Lipper S&P 500 category.

¹⁴	Since inception of Class A and B Shares on March 28, 2002.

¹⁵	Since inception of Class C shares on February 14, 2000.

¹⁶	Since inception of Class K shares on November 30, 2000.

¹⁷	Since inception of Class K on December 14, 2001.

Fee Table And Expense Example

This table describes the fees and expenses that you may pay if you buy and hold Investor Class, Class A, Class B, Class C, or Class K shares of the Funds. If you invest in the Funds through a financial intermediary, you may be charged a commission or transaction fee by the financial intermediary for purchases and sales of Fund shares.

SHAREHOLDER FEES PAID DIRECTLY FROM YOUR INVESTMENT



ALL FUNDS	Investor Class	Class A	Class B	Class C	Class K
Maximum Front-End Sales Charge on purchases as a percentage of offering price	None	5.50%	None	None	None
Maximum Contingent Deferred Sales Charge (CDSC) as a percentage of the total original cost of the shares	None	None¹^,2	5.00%³	1.00%³	None⁴
Maximum Sales Charge on reinvested Dividends/Distributions	None	None	None	None	None

S&P 500 INDEX FUND ONLY
Redemption Fee (as a percentage of amount redeemed)	2.00%⁵	None	None	None	None
Exchange Fee	2.00%⁵	None	None	None	None

ANNUAL FUND OPERATING EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS⁶



DYNAMICS FUND	Investor Class	Class A	Class B	Class C	Class K
Management Fees	0.49%	0.49%	0.49%	0.49%	0.49%
Distribution and Service (12b-1) Fees⁷	0.25%	0.35%	1.00%	1.00%	0.45%
Other Expenses⁸	0.38%	0.38%	0.38%	0.38%	0.38%

Total Annual Fund Operating Expenses^9,¹⁰	1.12%	1.22%	1.87%	1.87%	1.32%


SMALL COMPANY GROWTH FUND	Investor Class	Class A	Class B	Class C	Class K
Management Fees	0.66%	0.66%	0.66%	0.66%	0.66%
Distribution and Service (12b-1) Fees⁷	0.25%	0.35%	1.00%	1.00%	0.45%
Other Expenses⁸	0.47%	0.47%	0.47%	0.47%	0.47%

Total Annual Fund Operating Expenses^9,¹⁰	1.38%	1.48%	2.13%	2.13%	1.58%


S&P 500 INDEX FUND	Investor Class
Management Fees	0.25%
Distribution and Service (12b-1) Fees⁷	0.25%
Other Expenses⁸	0.37%

Total Annual Fund Operating Expenses¹⁰	0.87%

If you buy $1,000,000 or more of Class A shares and redeem those shares within eighteen months from the date of purchase, you may pay a 1% contingent deferred sales charge (CDSC) at the time of redemption.

If you are a retirement plan participant and you bought $1,000,000 or more of Class A shares, you may pay a 1.00% CDSC if a total redemption of the retirement plan assets occurs within 12 months from the date of the retirement plan’s initial purchase.

A 5% and 1% CDSC may be charged on Class B and Class C shares, respectively. Please see the section entitled “How To Buy Shares.”

⁴

If you are a retirement plan participant, you may pay a 0.70% CDSC if the distributor paid a concession to the dealer of record and a total redemption of the retirement plan assets occurs within 12 months from the date of the retirement plan’s initial purchase.

⁵

A 2% fee is charged on redemptions or exchanges of Class A and Investor Class shares held 30 days or less, other than shares acquired through reinvestment of dividends and distributions.

⁶

There is no guarantee that actual expenses will be the same as those shown in the table.

⁷

Because each class pays a 12b-1 distribution and service fee which is based upon each class’s assets, if you own shares of a Fund for a long period of time, you may pay more than the economic equivalent of the maximum front-end sales charge permitted for mutual funds by the National Association of Securities Dealers, Inc.

⁸

Effective April 1, 2004, the Board of Trustees approved a revised expense allocation methodology for the Fund. Effective July 1, 2004, the Board of Trustees approved an amendment to the administrative services and transfer agency agreements. Other expenses have been restated to reflect these changes.

⁹

The Fund’s Advisor 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%, 2.00%, 2.65%, 2.65% and 2.10% on Investor Class, Class A, Class B, Class C and Class K 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 caps stated above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary items (these are expenses that are not anticipated to arise from the Fund’s day-to-day operations), or items designated as such by the Fund’s Board of Trustees; (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, 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, 2005.

¹⁰

The Fund’s Advisor 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) for the Funds as follows: (i) AIM Dynamics Fund’s Investor Class, Class A, Class B, Class C and Class K shares to 1.20%, 1.30%, 1.95%, 1.95% and 1.40%, respectively; (ii) AIM Small Company Growth Fund’s Investor Class, Class A, Class B, Class C and Class K shares to 1.50%, 1.60%, 2.25%, 2.25%, and 1.70%, respectively; and (iii) AIM S&P 500 Index Fund’s Investor Class shares to 0.65%. These expense limitation agreements may be modified or discontinued upon consultation with the Board of Trustees without further notice to investors. Further, at the direction of the Trustees of the Trust, AMVESCAP PLC has assumed expenses incurred by the Fund in connection with matters related to recently settled regulatory actions and investigations concerning market timing activity in the AIM and INVESCO Funds. Total annual operating expenses restated for those items in Note 8 above and net of this arrangement for the year ended July 31, 2004 was 0.65% for AIM S&P 500 Index Fund’s Investor Class shares.

EXPENSE EXAMPLE

The Example is intended to help you compare the cost of investing in the Investor Class, Class A, Class B, Class C, and Class K shares of the Funds to the cost of investing in other mutual funds.

The Example assumes that you invested $10,000 in Investor Class, and, if applicable, Class A, Class B, Class C, or Class K shares of a Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year, and that a Fund’s Investor Class, Class A, Class B, Class C, and Class K shares’ operating expenses remain the same. To the extent fees are waived and/or expenses are reimbursed, your expenses will be lower. Although the actual returns and costs may be higher or lower, based on these assumptions your costs would be:


	1 year	3 years	5 years	10 years
Dynamics Fund
Investor Class	$114	$356	$617	$1,363
Class A	$667	$916	$1,183	$1,946
Class B - With Redemption	$690	$888	$1,211	$2,021
Class B - Without Redemption	$190	$588	$1,011	$2,021
Class C - With Redemption	$290	$588	$1,011	$2,190
Class C - Without Redemption	$190	$588	$1,011	$2,190
Class K	$134	$418	$723	$1,590

Small Company Growth Fund
Investor Class	$141	$437	$755	$1,657
Class A	$692	$992	$1,314	$2,221
Class B - With Redemption	$716	$967	$1,344	$2,297
Class B - Without Redemption	$216	$667	$1,144	$2,297
Class C - With Redemption	$316	$667	$1,144	$2,462
Class C - Without Redemption	$216	$667	$1,144	$2,462
Class K	$161	$499	$860	$1,878

S&P 500 Index Fund
Investor Class	$89	$278	$482	$1,073

LOGO

Investment Risks

BEFORE INVESTING IN A FUND, YOU SHOULD DETERMINE THE LEVEL OF RISK WITH WHICH YOU ARE COMFORTABLE. TAKE INTO ACCOUNT FACTORS LIKE YOUR AGE, CAREER, INCOME AND TIME HORIZON.

You should determine the level of risk with which you are comfortable before you invest. The principal risks of investing in any mutual fund, including these Funds, are:

Not Insured. Mutual funds are not insured by the FDIC or any other government agency, unlike bank deposits such as CDs or savings accounts.

No Guarantee. No mutual fund can guarantee that it will meet its investment objectives.

Possible Loss Of Investment. A mutual fund cannot guarantee its performance, nor assure you that the market value of your investment will increase. You may lose the money you invest, and the Funds will not reimburse you for any of these losses.

Volatility. The price of your mutual fund shares will increase or decrease with changes in the value of a Fund’s underlying investments and changes in the equity markets as a whole.

Not A Complete Investment Plan. An investment in any mutual fund does not constitute a complete investment plan. The Funds are designed to be only a part of your personal investment plan.

LOGO

Principal Risks Associated With The Funds

You should consider the special risk factors discussed below associated with the Funds’ policies in determining the appropriateness of investing in a Fund. See the Statement of Additional Information for a discussion of additional risk factors.

MARKET RISK

Equity stock prices vary and may fall, thus reducing the value of a Fund’s investments. Certain stocks selected for any Fund’s portfolio may decline in value more than the overall stock market. In general, the securities of small companies are more volatility than those of mid-size companies or large companies.

LIQUIDITY RISK

A Fund’s portfolio is liquid if the Fund is able to sell the securities it owns at a fair price within a reasonable time. Liquidity is generally related to the market trading volume for a particular security. Investments in smaller companies or in foreign companies or companies in emerging markets are subject to a variety of risks, including potential lack of liquidity.

DERIVATIVES RISK

A derivative is a financial instrument whose value is “derived,” in some manner, from the price of another security, index, asset, or rate. Derivatives include options contracts, among a wide range of other instruments. The principal risk of investments in derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Some derivatives are more sensitive to interest rate changes and market price fluctuations than others. Also, derivatives are subject to counterparty risk, described below.

Options are a common type of derivative that a Fund may occasionally use to hedge its investments. An option is the right to buy and sell a security or other instrument, index, or commodity at a specific price on or before a specific date. The use of options may increase the performance of the Fund, but also may increase market risk. Other types of derivatives include futures, swaps, caps, floors, and collars.

COUNTERPARTY RISK

This is a risk associated primarily with repurchase agreements and some derivatives transactions. It is the risk that the other party in the transaction will not fulfill its contractual obligation to complete the transaction with a Fund.

FOREIGN SECURITIES RISKS

Investments in foreign and emerging markets carry special risks, including currency, political, regulatory, and diplomatic risks.

Currency Risk. A change in the exchange rate between U.S. dollars and a foreign currency may reduce the value of a Fund’s investment in a security valued in the foreign currency, or based on that currency value.

Political Risk. Political actions, events, or instability may result in unfavorable changes in the value of a security.

Regulatory Risk. Government regulations may affect the value of a security. In foreign countries, securities markets that are less regulated than those in the U.S. may permit trading practices that are not allowed in the U.S.

Diplomatic Risk. A change in diplomatic relations between the U.S. and a foreign country could affect the value or liquidity of investments.

LACK OF TIMELY INFORMATION RISK

Timely information about a security or its issuer may be unavailable, incomplete, or inaccurate. This risk is more common to securities issued by foreign companies and companies in emerging markets than it is to the securities of U.S.-based companies.

PORTFOLIO TURNOVER RISK

A Fund’s investments may be bought and sold relatively frequently. A high turnover rate may affect a Fund’s performance because it results in higher brokerage commissions and may result in taxable gain distributions to a Fund’s shareholders.

Although each Fund generally invests in publicly-traded equity securities of growing companies, the Funds also may invest in other types of securities and other financial instruments, indicated in the chart below. Although these investments typically are not part of any Fund’s principal investment strategy, they may constitute a significant portion of a Fund’s portfolio, thereby possibly exposing a Fund and its investors to the following additional risks.


INVESTMENT		RISKS
American Depositary Receipts (ADRs)
These are securities issued by U.S. banks that represent shares of foreign corporations held by those banks. Although traded in U.S. securities markets and valued in U.S. dollars, ADRs carry most of the risks of investing directly in foreign securities.		Market, Information, Political, Regulatory, Diplomatic, Liquidity, and Currency Risks
Repurchase Agreements
A contract under which the seller of a security agrees to buy it back at an agreed-upon price and time in the future.		Counterparty Risk

LOGO

Temporary Defensive Positions

When securities markets or economic conditions are unfavorable or unsettled, we might try to protect the assets of a Fund by investing in securities that are highly liquid, such as high-quality money market instruments like short-term U.S. government obligations, commercial paper, or repurchase agreements, even though that is not the normal investment strategy of any Fund. We have the right to invest up to 100% of a Fund’s assets in these securities, although we are unlikely to do so. Even though the securities purchased for defensive purposes often are considered the equivalent of cash, they also have their own risks. Investments that are highly liquid or comparatively safe tend to offer lower returns. Therefore, a Fund’s performance could be comparatively lower if it concentrates in defensive holdings.

Fund Management

INVESTMENT ADVISOR

AIM, INVESCO INSTITUTIONAL AND ADI ARE SUBSIDIARIES OF AMVESCAP PLC, AN INTERNATIONAL INVESTMENT MANAGEMENT COMPANY THAT MANAGES MORE THAN $363 BILLION IN ASSETS WORLDWIDE AS OF
SEPTEMBER 30, 2004. AMVESCAP IS BASED IN LONDON, WITH MONEY MANAGERS LOCATED IN EUROPE, NORTH AND SOUTH AMERICA, AND THE FAR EAST.

AIM is the investment advisor for each Fund, and INVESCO Institutional is the sub-advisor for AIM S&P 500 Index Fund. INVESCO Institutional is an affiliate of AIM and INVESCO. AIM is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.

The Advisor supervises all aspects of AIM Dynamics Fund’s and AIM Small Company Growth Fund’s operations and provides investment advisory services to each Fund, including obtaining and evaluating economic, statistical and financial information to formulate and implement investment programs for the Fund. AIM has acted as an investment advisor since its organization in 1976. Today, AIM, together with its subsidiaries, advises or manages over 200 investment portfolios, encompassing a broad range of investment objectives.

INVESCO Institutional (N.A.), Inc. — Structured Products Group is located at 1166 Avenue of the Americas, 27th Floor, New York City, NY 10036. As sub-advisor, INVESCO Institutional is responsible for the AIM S&P 500 Index Fund’s day-to-day management, including the investment decisions and the execution of securities transactions with respect to the Fund.

ADI is the Funds’ distributor and is responsible for the sale of the Funds’ shares.

AIM, INVESCO, INVESCO Institutional and ADI are subsidiaries of AMVESCAP PLC.

Prior to November 25, 2003, INVESCO served as the investment advisor for each series portfolio of the Company. The following table shows the fees the Funds paid to AIM and INVESCO for their advisory services in the fiscal year ended July 31, 2004.


FUND		ADVISORY FEE AS A PERCENTAGE OF AVERAGE ANNUAL NET ASSETS UNDER MANAGEMENT
Dynamics		0.49%
Small Company Growth		0.66%
S&P 500 Index		0.25%

Portfolio Managers

The following individuals are primarily responsible for the day-to-day management of their respective Fund’s portfolio holdings:


Fund		Portfolio Manager(s)
Dynamics		Paul J. Rasplicka
		Michael Chapman

Small Company Growth		Jay K. Rushin

S&P 500 Index		Jeremy Lefkowitz

DYNAMICS FUND

Paul J. Rasplicka (lead manager), is Senior Portfolio Manager and has been responsible for Dynamics Fund since 2004. He has been associated with the Advisor and/or its affiliates since 1994.

Michael Chapman, is Portfolio Manager and has been responsible for Dynamics Fund since 2004. He has been associated with the Advisor and/or its affiliates since 2001. From 1999 to 2001, he was an equity analyst with Chase Manhattan Bank. During part

of 1999, he was a securities analyst with Gulf Investment Management. From 1995 to 1999, he was a portfolio manager with US Global Investors, Inc.

They are assisted by the MidCap Growth & GARP (growth at a reasonable price) Teams.

SMALL COMPANY GROWTH FUND

Jay K. Rushin (lead manager), is Portfolio Manager and has been responsible for Small Company Growth Fund since 2004. He has been associated with the Advisor and/or its affiliates since 1998.

Mr. Rushin is assisted by the Aggressive Growth Team.

S&P 500 INDEX FUND

Jeremy Lefkowitz, Portfolio Manager, has been responsible for the S&P 500 Index Fund since 2003. He is head of INVESCO Institutional’s Structured Products Group (“SPG”) Portfolio Management Team, which is responsible for the management of all stock selection, tactical asset allocation, and index portfolios. He has been associated with the Advisor and/or its affiliates since 1982. He is assisted by SPG’s Portfolio Management Team.

More information on the Funds’ management teams may be found on our website http://www.aiminvestments.com/teams. The website is not part of this prospectus.

Other Information

SUITABILITY FOR INVESTORS

Only you can determine if an investment in a Fund is right for you based upon your own economic situation, the risk level with which you are comfortable and other factors. Like most mutual funds, each Fund seeks to provide higher returns than the market or its competitors, but cannot guarantee that performance. Each Fund seeks to minimize risk by investing in many different companies in a variety of industries. In general, the Funds are most suitable for investors who:

are willing to grow their capital over the long-term (at least five years)

understand that shares of a Fund can, and likely will, have daily price fluctuations

are investing through tax-deferred retirement accounts, such as traditional and Roth Individual Retirement Accounts (“IRAs”), as well as employer-sponsored qualified retirement plans, including 401(k)s and 403(b)s, all of which have longer investment horizons.

You probably do not want to invest in the Funds if you are:

primarily seeking current dividend income

unwilling to accept potentially significant changes in the price of Fund shares

speculating on short-term fluctuations in the stock markets.

SALES CHARGES

Purchases of Class A shares of AIM Dynamics Fund and AIM Small Company Growth Fund are subject to a maximum 5.50% initial sales charge as listed under the heading “Category I Initial Sales Charges” in the “Shareholder Information — Choosing a Share Class” section of this prospectus. Certain purchases of Class A shares at net asset value may be subject to the contingent deferred sales charge listed in that section. Purchases of Class B and Class C shares are subject to the contingent deferred sales charges listed in that section. Certain purchases of Class K shares may be subject to the contingent deferred sales charge listed in that section.

LOGO

Dividends And Capital Gain Distributions

The Funds earn ordinary or investment income primarily from dividends and interest on their investments. The Funds expect to distribute substantially all of this investment income, less Fund expenses, to shareholders annually, with respect to Dynamics and Small Company Growth Funds, and quarterly, with respect to the S&P 500 Index Fund. All Funds can make distributions at other times, if they choose to do so. Please note that classes with higher expenses are expected to have lower dividends.

NET INVESTMENT INCOME AND NET REALIZED CAPITAL GAINS, IF ANY, ARE DISTRIBUTED TO SHAREHOLDERS AT LEAST ANNUALLY. DISTRIBUTIONS ARE TAXABLE WHETHER REINVESTED IN ADDITIONAL SHARES OR PAID TO YOU IN CASH (EXCEPT FOR TAX-EXEMPT OR TAX-DEFERRED ACCOUNTS).

Each Fund also realizes capital gains or losses when it sells securities in its portfolio for more or less than it had paid for them. If total gains on sales exceed total losses (including losses carried forward from previous years), a Fund has a net realized capital gain. Net realized capital gain, if any, is distributed to shareholders at least annually, usually in December. Dividends and capital gain distributions are paid to you if you hold shares on the record date of the distribution regardless of how long you have held your shares.

Under present federal income tax laws, capital gains may be taxable at different rates, depending on how long a Fund has held the underlying investment. Short-term capital gains which are derived from the sale of assets held one year or less are taxed as ordinary income. Long-

term capital gains which are derived from the sale of assets held for more than one year are taxed at up to the maximum capital gains rate, currently 15% for individuals.

A Fund’s daily NAV reflects ordinary income and realized capital gains that have not yet been distributed to shareholders. As such, a Fund’s NAV will drop by the amount of a distribution, net of market fluctuations, on the day the distribution is declared. If you buy shares of a Fund just before a distribution is declared, you may wind up “buying a distribution.” This means that if the Fund declares a dividend or capital gain distribution shortly after you buy, you will receive some of your investment back as

a taxable distribution. Although purchasing your shares at the resulting higher NAV may mean a smaller capital gain or greater loss upon sale of the shares, most shareholders want to avoid the purchase of shares immediately before the distribution record date. However, keep in mind that your basis in the Fund will be increased to the extent such distributions are reinvested in the Fund. If you sell your shares of a Fund at a loss for tax purposes and then replace those shares with a substantially identical investment either thirty days before or after that sale, the transaction is usually considered a “wash sale” and you will not be able to claim a tax loss at the time of sale. Instead the loss will be deferred to a later date.

Dividends and capital gain distributions paid by each Fund are automatically reinvested in additional Fund shares at the NAV on the ex-distribution date, unless you choose to have them automatically reinvested in the same share class of another INVESCO or AIM Fund or paid to you by check or electronic funds transfer. Dividends and other distributions, whether received in cash or reinvested in additional Fund shares, are generally subject to federal income tax.

Financial Highlights

The financial highlights table is intended to help you understand the financial performance of the various classes of each Fund for the past five fiscal years (or, if shorter, the periods of the class’ operations). Certain information reflects financial results for a single Fund share. The total returns in the table represent the annual percentages that an investor would have earned (or lost) on an investment in a Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the financial statements, is included in each Fund’s annual report. This Report is available without charge by contacting AIM Investment Services, Inc. at the address or telephone number on the back cover of this Prospectus.


	YEAR ENDED JULY 31,
	2004		2003		2002		2001		2000
DYNAMICS FUND — INVESTOR CLASS
PER SHARE DATA
Net Asset Value — Beginning of Period	$12.81		$10.81		$17.23		$27.86		$19.39
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.11	)^(a)	(0.00	)	(0.00	)	(0.12	)^(a)	(0.00	)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	1.49		2.00		(6.40	)	(10.43	)	9.51
Total from Investment Operations	1.38		2.00		(6.40	)	(10.55	)	9.51
Less Distributions from Net Realized Gains	—		—		(0.02	)	(0.08	)	(1.04	)
Net Asset Value — End of Period	$14.19		$12.81		$10.81		$17.23		$27.86


TOTAL RETURN^(b)	10.77%		18.50%		(37.17%	)	(37.94%	)	50.34%

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$2,992,578		$3,863,821		$3,688,213		$6,562,467		$7,865,489
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and/or Expense Reimbursements	1.19%^(c	⁾	1.21%		1.21%		1.00%		0.89%
Without Fee Waivers and/or Expense Reimbursements	1.29%^(c	⁾	1.46%		1.23%		1.00%		0.89%
Ratio of Net Investment Income (Loss) to Average Net Assets	(0.78%	)^(c)	(0.78%	)	(0.86%	)	(0.49%	)	(0.34%	)
Portfolio Turnover Rate^(d)	95%		91%		81%		55%		75%

(a)	Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year.

(c)	Ratios are based on average daily net assets of $3,808,289,157.

(d)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,				MARCH 28, 2002 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002
DYNAMICS FUND — CLASS A
PER SHARE DATA
Net Asset Value — Beginning of Period	$12.84		$10.82		$15.30
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.13	)^(a)	(0.09	)	(0.03	)^(a)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	1.50		2.11		(4.45	)
Total from Investment Operations	1.37		2.02		(4.48	)
Net Asset Value — End of Period	$14.21		$12.84		$10.82


TOTAL RETURN^(b)	10.67%		18.56%		(29.22	)%

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$12,692		$6,108		$2,006
RATIO OF EXPENSES TO AVERAGE NET ASSETS	1.30%^(c	^)(d)	1.24%		1.11%^(e	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(0.89	)%^(c)	(0.81	)%	(0.76	)%^(e)
Portfolio turnover rate^(f)	95%		91%		81%

(a)	Calculated using average shares outstanding.

(b)

(c)	Ratios are based on average daily net assets of $12,015,799.

(d)	After fee waivers and/or expense reimbursements. Ratio of expenses to average net assets prior to fee waivers and/or expense reimbursements was 1.31%.

(e)	Annualized.

(f)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,				MARCH 28, 2002 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002
DYNAMICS FUND — CLASS B
PER SHARE DATA
Net Asset Value — Beginning of Period	$12.69		$10.78		$15.30
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.22	)^(a)	(0.08	)	(0.06	)^(a)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	1.47		1.99		(4.46	)
Total from Investment Operations	1.25		1.91		(4.52	)
Net Asset Value — End of Period	$13.94		$12.69		$10.78


TOTAL RETURN^(b)	9.85%		17.72%		(29.54%	)

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$2,282		$1,409		$390
RATIO OF EXPENSES TO AVERAGE NET ASSETS
With Fee Waivers and/or Expense Reimbursements	1.95%^(c	⁾	1.96%		2.09%^(d	⁾
Without Fee Waivers and/or Expense Reimbursements	2.26%^(c	⁾	2.52%		2.09%^(d	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(1.54%	)^(c)	(1.53%	)	(1.71%	)^(d)
Portfolio turnover rate^(e)	95%		91%		81%

(a)	Calculated using average shares outstanding.

(b)

(c)	Ratios are based on average daily net assets of $2,124,070.

(d)	Annualized.

(e)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,								FEBRUARY 14, 2002 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002		2001		2000
DYNAMICS FUND — CLASS C
PER SHARE DATA
Net Asset Value — Beginning of Period	$12.44		$10.60		$17.04		$27.78		$28.25
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.22	)^(a)	(0.18	)	(0.25	)	(0.06	)	(0.00	)^(a)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	1.45		2.02		(6.17	)	(10.60	)	(0.47	)
Total from Investment Operations	1.23		1.84		(6.42	)	(10.66	)	(0.47	)
Less Distributions from Net Realized Gains	—		—		(0.02	)	(0.08	)	—
Net Asset Value — End of Period	$13.67		$12.44		$10.60		$17.04		$27.78


TOTAL RETURN^(b)	9.89%		17.47%		(37.76%	)	(38.45%	)	(1.66%	)

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$11,287		$13,537		$13,440		$28,887		$4,779
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and/or Expense Reimbursements	1.95%^(c	⁾	1.96%		1.96%		1.86%		1.71%^(d	⁾
Without Fee Waivers and/or Expense Reimbursements	2.67%^(c	⁾	3.05%		2.16%		1.86%		1.71%^(d	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(1.54%	)^(c)	(1.54%	)	(1.59%	)	(1.34%	)	(1.20%	)^(d)
Portfolio Turnover Rate^(e)	95%		91%		81%		55%		75%

(a)	Calculated using average shares outstanding.

(b)

(c)	Ratios are based on average daily net assets of $13,759,200.

(d)	Annualized.

(e)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,						NOVEMBER 30, 2000 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002		2001
DYNAMICS FUND — CLASS K
PER SHARE DATA
Net Asset Value — Beginning of Period	$12.74		$10.76		$17.19		$22.50
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.14	)^(a)	(0.02	)	(0.15	)^(a)	(0.03	)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	1.48		2.00		(6.26	)	(5.28	)
Total from Investment Operations	1.34		1.98		(6.41	)	(5.31	)
Less Distributions from Net Realized Gains	—		—		(0.02	)	—
Net Asset Value — End of Period	$14.08		$12.74		$10.76		$17.19


TOTAL RETURN^(b)	10.52%		18.40%		(37.32%	)	(23.60%	)

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$25,977		$45,258		$44,745		$6
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and/or Expense Reimbursements	1.40%^(c	⁾	1.41%		1.36%		1.48%^(d	⁾
Without Fee Waivers and/or Expense Reimbursements	1.54%^(c	⁾	1.61%		1.36%		3.06%^(d	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(0.99%	)^(c)	(0.98%	)	(1.05%	)	(1.03%	)^(d)
Portfolio Turnover Rate^(e)	95%		91%		81%		55%

(a)	Calculated using average shares outstanding.

(b)

(c)	Ratios are based on average daily net assets of $42,497,874.

(d)	Annualized.

(e)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,
	2004		2003		2002		2001		2000
SMALL COMPANY GROWTH FUND — INVESTOR CLASS
PER SHARE DATA
Net Asset Value — Beginning of Period	$9.99		$8.41		$12.76		$18.50		$13.61
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.13	)^(a)	(0.00	)	(0.01	)	(0.04	)^(a)	(0.00	)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	0.63		1.58		(4.34	)	(4.77	)	6.88
Total from Investment Operations	0.50		1.58		(4.35	)	(4.81	)	6.88
Less Distributions from Net Realized Gains	—		—		—		(0.93	)	(1.99	)
Net Asset Value — End of Period	$10.49		$9.99		$8.41		$12.76		$18.50


TOTAL RETURN^(b)	5.00%		18.79%		(34.09%	)	(26.53%	)	53.55%

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$497,472		$890,227		$800,520		$1,395,113		$1,440,445
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and Expense Reimbursements	1.49%^(c	⁾	1.50%		1.45%		1.29%		1.20%
Without Fee Waivers and Expense Reimbursements	1.59%^(c	⁾	1.67%		1.45%		1.29%		1.21%
Ratio of Net Investment Income (Loss) to Average Net Assets	(1.21%	)^(c)	(0.94%	)	(1.01%	)	(0.28%	)	(0.34%	)
Portfolio Turnover Rate	130%		119%		99%		112%		186%

(a)	Calculated using average shares outstanding.

(b)

(c)	Ratios are based on average daily net assets of $808,224,900.

Financial Highlights (continued)


	YEAR ENDED JULY 31,				MARCH 28, 2002 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002
SMALL COMPANY GROWTH FUND — CLASS A
PER SHARE DATA
Net Asset Value — Beginning of Period	$10.00		$8.41		$11.25
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.14	)^(a)	(0.01	)	(0.02	)^(a)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	0.63		1.60		(2.82	)
Total from Investment Operations	0.49		1.59		(2.84	)
Net Asset Value — End of Period	$10.49		$10.00		$8.41


TOTAL RETURN^(b)	4.90%		18.91%		(25.24%	)

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$5,737		$6,372		$2,607
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and Expense Reimbursements	1.60%^(c	⁾	1.38%		1.24%^(d	⁾
Without Fee Waivers and Expense Reimbursements	1.63%^(c	⁾	1.38%		1.24%^(d	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(1.32%	)^(c)	(0.69%	)	(0.74%	)^(d)
Portfolio Turnover Rate^(e)	130%		119%		99%

(a)	Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year.

(c)	Ratios are based on average daily net assets of $6,089,612.

(d)	Annualized.

(e)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,				MARCH 28, 2002 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002
SMALL COMPANY GROWTH FUND — CLASS B
PER SHARE DATA
Net Asset Value — Beginning of Period	$9.91		$8.41		$11.25
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.22	)^(a)	(0.07	)	(0.04	)^(a)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	0.64		1.57		(2.80	)
Total from Investment Operations	0.42		1.50		(2.84	)
Net Asset Value — End of Period	$10.33		$9.91		$8.41


TOTAL RETURN^(b)	4.24%		17.84%		(25.24%	)

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$1,762		$408		$67
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and Expense Reimbursements	2.25%^(c	⁾	2.25%		2.14%^(d	⁾
Without Fee Waivers and Expense Reimbursements	2.89%^(c	⁾	4.00%		2.14%^(d	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(1.97%	)^(c)	(1.61%	)	(1.68%	)^(d)
Portfolio Turnover Rate^(e)	130%		119%		99%

(a)	Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year.

(c)	Ratios are based on average daily net assets of $1,153,879.

(d)	Annualized.

(e)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,								FEBRUARY 14, 2000 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002		2001		2000
SMALL COMPANY GROWTH FUND — CLASS C
PER SHARE DATA
Net Asset Value — Beginning of Period	$9.49		$8.09		$12.54		$18.37		$20.68
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.20	)^(a)	(0.18	)	(0.18	)^(a)	(0.12	)	(0.00	)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	0.59		1.58		(4.27	)	(4.78	)	(2.31	)
Total from Investment Operations	0.39		1.40		(4.45	)	(4.90	)	(2.31	)
Less Distributions from Net Realized Gains	—		—		—		(0.93	)	—
Net Asset Value — End of Period	$9.88		$9.49		$8.09		$12.54		$18.37


TOTAL RETURN^(b)	4.11%		17.45%		(35.57%	)	(27.24%	)	(11.17%	)

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$1,907		$1,673		$1,087		$2,034		$1,926
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and Expense Reimbursements	2.25%^(c	⁾	2.25%		2.25%		2.13%		1.83%^(d	⁾
Without Fee Waivers and Expense Reimbursements	3.48%^(c	⁾	3.55%		2.70%		2.13%		1.83%^(d	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(1.97%	)^(c)	(1.73%	)	(1.81%	)	(1.12%	)	(0.91%	)^(d)
Portfolio Turnover Rate^(e)	130%		119%		99%		112%		186%

(a)	Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year.

(c)	Ratios are based on average daily net assets of $2,783,310.

(d)	Annualized.

(e)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,				DECEMBER 14, 2001 (DATE SALES COMMENCED) TO JULY 31,
	2004		2003		2002
SMALL COMPANY GROWTH FUND — CLASS K
PER SHARE DATA
Net Asset Value — Beginning of Period	$9.99		$8.43		$11.76
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)	(0.16	)^(a)	(0.01	)	(0.05	)^(a)
Net Gains (Losses) on Securities (Both Realized and Unrealized)	0.63		1.57		(3.28	)
Total from Investment Operations	0.47		1.56		(3.33	)
Net Asset Value — End of Period	$10.46		$9.99		$8.43


TOTAL RETURN^(b)	4.70%		18.51%		(28.32%	)

RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s Omitted)	$95,752		$95,105		$66,451
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and Expense Reimbursements	1.70%^(c	⁾	1.70%		1.17%^(d	⁾
Without Fee Waivers and Expense Reimbursements	1.98%^(c	⁾	3.12%		1.17%^(d	⁾
Ratio of Net Investment Income (Loss) to Average Net Assets	(1.42%	)^(c)	(1.12%	)	(0.80%	)^(d)
Portfolio Turnover Rate^(e)	130%		119%		99%

(a)	Calculated using average shares outstanding.

(b)

(c)	Ratios are based on average daily net assets of $113,169,476.

(d)	Annualized.

(e)	Not annualized for periods less than one year.

Financial Highlights (continued)


	YEAR ENDED JULY 31,
	2004		2003		2002		2001		2000
S&P 500 INDEX FUND — INVESTOR CLASS
PER SHARE DATA
Net Asset Value — Beginning of Period	$10.41		$9.59		$12.78		$15.36		$14.39
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income	0.11		0.10		0.09		0.10		0.11
Net Gains (Losses) on Securities (Both Realized and Unrealized)	1.18		0.82		(3.19	)	(2.39	)	1.09
Total from Investment Operations	1.29		0.92		(3.10	)	(2.29	)	1.20
LESS DISTRIBUTIONS:
Dividends from Net Investment Income	(0.10	)	(0.10	)	(0.09	)	(0.10	)	—
Distributions from Net Realized Gains	—		—		—		(0.19	)	(0.23	)
Total Distributions	(0.10	)	(0.10	)	(0.09	)	(0.29	)	(0.23	)
Redemption Fees Added to Shares of Beneficial Interest	0.00		0.00		0.00		0.00		0.00
Net Asset Value — End of Period	$11.60		$10.41		$9.59		$12.78		$15.36


TOTAL RETURN^(a)	12.43%		9.73%		(24.33%	)	(15.07%	)	8.34%

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period (000s Omitted)	$234,090		$195,668		$135,578		$116,309		$92,784
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
With Fee Waivers and Expenses Reimbursements	0.65%^(b	⁾	0.65%		0.65%		0.63%		0.63%
Without Fee Waivers and Expense Reimbursements	1.00%^(b	⁾	1.05%		1.01%		0.99%		0.95%
Ratio of Net Investment Income to Average Net Assets	0.99%^(b	⁾	1.15%		0.84%		0.75%		0.74%
Portfolio Turnover Rate	2%		1%		3%		43%		13%

(a)

(b)	Ratios are based on average daily net assets of $227,257,169.

THE AIM FUNDS

Shareholder Information

In addition to the fund, A I M Advisors, Inc. serves as investment advisor to many other mutual funds (the AIM funds). The following information is about all the AIM funds.

CHOOSING A SHARE CLASS

Most of the AIM funds have multiple classes of shares, each class representing an interest in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment. In deciding which class of shares to purchase, you should consider, among other things, (i) the length of time you expect to hold your shares, (ii) the provisions of the distribution plan applicable to the class, if any, (iii) the eligibility requirements that apply to purchases of a particular class, and (iv) any services you may receive in making your investment determination. Your financial advisor can help you decide among the various classes. Please contact your financial advisor.

Class A¹

Class A3

Class B³

Class C

Class K

Class R

Investor Class

• Initial sales charge

• No initial sales charge

• Reduced or waived initial sales charge for certain purchases²

• No contingent deferred sales charge

• Contingent deferred sales charge on redemptions within six years

• Contingent deferred sales charge on redemptions within one year⁶

• Generally, no contingent deferred sales charge²

• No contingent deferred sales charge

• Generally, lower distribution and service (12b-1) fee than Class B, Class C, Class K or Class R shares (See ”Fee Table and Expense Example”)

• 12b-1 fee of 0.35%

• 12b-1 fee of 1.00%

• 12b-1 fee of 0.45%

• 12b-1 fee of 0.50%

• 12b-1 fee of 0.25%⁸

• Does not convert to Class A shares

• Converts to Class A shares at the end of the month which is eight years after the date on which shares were purchased along with a pro rata portion of its reinvested dividends and distributions⁴

• Does not convert to Class A shares

• Generally more appropriate for long-term investors

• Generally more appropriate for short-term investors

• Purchase orders limited to amount less than $100,000⁵

• Generally more appropriate for short-term investors

• Generally, only available to retirement plans, educational savings programs and wrap programs

• Generally, only available to employee benefit plans⁷

• Closed to new investors, except as described in the “Purchasing
Shares — Grandfathered Investors” section of your prospectus

Certain AIM funds also offer Institutional Class shares to certain eligible institutional investors; consult the fund’s Statement of Additional Information for details.

As of the close of business on October 30, 2002, Class A shares of AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund were closed to new investors.

A contingent deferred sales charge may apply in some cases.

Effective September 30, 2003, Class B shares will not be made available as an investment for retirement plans maintained pursuant to Section 401 of the Internal Revenue Code. These plans include 401(k) plans (including AIM Solo 401(k) plans), money purchase pension plans and profit sharing plans. Plans that have existing accounts invested in Class B shares will continue to be allowed to make additional purchases.

⁴

AIM Money Market Fund: Class B shares convert to AIM Cash Reserve Shares.

AIM Global Equity Fund: If you held Class B shares on May 29, 1998 and continue to hold them, those shares will convert to Class A shares of that fund at the end of the month which is seven years after the date on which shares were purchased. If you exchange those shares for Class B shares of another AIM fund, the shares into which you exchanged will not convert to Class A shares until the end of the month which is eight years after the date on which you purchased your original shares.

⁵

Any purchase order for Class B shares in excess of $100,000 will be rejected. Although our ability to monitor or enforce this limitation for underlying shareholders of omnibus accounts is severely limited, we have advised the administrators of omnibus accounts maintained by brokers, retirement plans and approved fee-based programs of this limitation.

⁶

A contingent deferred sales charge (CDSC) does not apply to redemption of Class C shares of AIM Short Term Bond Fund unless you exchange Class C shares of another AIM fund that are subject to a CDSC into AIM Short Term Bond Fund.

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⁷

Generally, Class R shares are only available to employee benefit plans. These may include, for example, retirement and deferred compensation plans maintained pursuant to Sections 401, 403, 457 of the Internal Revenue Code; nonqualified deferred compensation plans; health savings accounts maintained pursuant to Section 223 of the Internal Revenue Code, respectively; and voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Internal Revenue Code. Retirement plans maintained pursuant to Section 401 generally include 401(k) plans, profit sharing plans, money purchase pension plans, and defined benefit plans. Retirement plans maintained pursuant to Section 403 must be established and maintained by non-profit organizations operating pursuant to Section 501(c)(3) of the Internal Revenue Code in order to purchase Class R shares. Class R shares are generally not available for individual retirement accounts such as traditional, Roth, SEP, SAR-SEP and SIMPLE IRAs, with the exception of traditional IRAs established in connection with the rollover of assets from an employer-sponsored retirement plan in which an AIM fund was offered as an investment option.

⁸

Investor Class shares of AIM Money Market Fund and AIM Tax-Exempt Cash Fund do not have a 12b-1 fee.

Distribution and Service (12b-1) Fees

Each AIM fund (except AIM Tax-Free Intermediate Fund with respect to its Class A shares and AIM Money Market Fund and AIM Tax-Exempt Cash Fund with respect to their Investor Class shares) has adopted 12b-1 plans that allow the AIM fund to pay distribution fees to A I M Distributors, Inc. (the distributor) for the sale and distribution of its shares and fees for services provided to shareholders, all or a substantial portion of which are paid to the dealer of record. Because the AIM fund pays these fees out of its assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.

Sales Charges

Sales charges on the AIM funds and classes of those funds are detailed below. As used below, the term “offering price” with respect to all categories of Class A shares includes the initial sales charge.

Certain categories of persons are permitted to purchase Class A shares of AIM funds without paying an initial sales charge because their transactions involve little expense, such as persons who have a relationship with the funds or with AIM and certain programs for purchase. For more detailed information regarding eligibility to purchase or redeem shares at reduced or without sales charges, please consult the fund’s website at www.aiminvestments.com and click on the links “My Account”, Service Center, or consult the fund’s Statement of Additional Information, which is available upon request free of charge.

Initial Sales Charges

The AIM funds (except AIM Short Term Bond Fund) are grouped into three categories with respect to initial sales charges. The “Other Information” section of your prospectus will tell you in what category your particular AIM fund is classified.

Category I Initial Sales Charges

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


	Investor’s Sales Charge
Amount of investment in single transaction	As a % of offering price		As a % of investment
Less than $ 25,000	5.50	%	5.82	%
$ 25,000 but less than $ 50,000	5.25		5.54
$ 50,000 but less than $ 100,000	4.75		4.99
$100,000 but less than $ 250,000	3.75		3.90
$250,000 but less than $ 500,000	3.00		3.09
$500,000 but less than $1,000,000	2.00		2.04

Category II Initial Sales Charges

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


	Investor’s Sales Charge
Amount of investment in single transaction	As a % of offering price		As a % of investment
Less than $ 50,000	4.75	%	4.99	%
$ 50,000 but less than $ 100,000	4.00		4.17
$100,000 but less than $ 250,000	3.75		3.90
$250,000 but less than $ 500,000	2.50		2.56
$500,000 but less than $1,000,000	2.00		2.04

Category III Initial Sales Charges

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


	Investor’s Sales Charge
Amount of investment in single transaction	As a % of offering price		As a % of investment
Less than $ 100,000	1.00	%	1.01	%
$100,000 but less than $ 250,000	0.75		0.76
$250,000 but less than $1,000,000	0.50		0.50

AIM Short Term Bond Fund Initial Sales Charges

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


	Investor’s Sales Charge
Amount of investment in single transaction	As a % of offering price		As a % of investment
Less than $ 100,000	2.50	%	2.56	%
$100,000 but less than $ 250,000	2.00		2.04
$250,000 but less than $ 500,000	1.50		1.52
$500,000 but less than $1,000,000	1.25		1.27

Shares Sold without a Sales Charge

You will not pay an initial sales charge on purchases of Class A shares of AIM Tax-Exempt Cash Fund and AIM Cash Reserve Shares of AIM Money Market Fund.

You will not pay an initial sales charge or a contingent deferred sales charge (CDSC) on Class A3 shares of AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund.

You will not pay an initial sales charge or a CDSC on Investor Class shares of any AIM fund.

Contingent Deferred Sales Charges for Class A Shares and AIM Cash Reserve Shares of AIM Money Market Fund

You can purchase $1,000,000 or more (a Large Purchase) of Class A shares of Category I and II AIM funds and AIM Short Term Bond Fund at net asset value. However, if you redeem these shares prior to 18 months after the date of purchase, they will be subject to a CDSC of 1%.

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THE AIM FUNDS

If you currently own Class A shares of a Category I, II or III AIM fund or AIM Short Term Bond Fund and make additional purchases (through October 30, 2002 for Category III AIM funds only) at net asset value that result in account balances of $1,000,000 or more, the additional shares purchased will be subject to a CDSC (an 18-month, 1% CDSC for Category I and II AIM fund and AIM Short Term Bond Fund shares, and a 12-month, 0.25% CDSC for Category III AIM fund shares). The CDSC for Category III AIM fund shares will not apply to additional purchases made prior to November 15, 2001 or after October 30, 2002.

Some retirement plans can purchase Class A shares at their net asset value per share. If the distributor paid a concession to the dealer of record in connection with a Large Purchase of Class A shares by a retirement plan, the Class A shares may be subject to a 1% CDSC at the time of redemption if all retirement plan assets are redeemed within one year from the date of the plan’s initial purchase.

You may be charged a CDSC when you redeem AIM Cash Reserve Shares of AIM Money Market Fund or Class A shares of AIM Tax-Exempt Cash Fund if you acquired those shares through an exchange, and the shares originally purchased were subject to a CDSC.

The distributor may pay a dealer concession and/or a service fee for Large Purchases and purchases by certain retirement plans.

Contingent Deferred Sales Charges for Class B and Class C Shares

You can purchase Class B and Class C shares at their net asset value per share. However, when you redeem them, they are subject to a CDSC in the following percentages:


Year since purchase made	Class B	Class C
First	5%	1%
Second	4	None
Third	3	None
Fourth	3	None
Fifth	2	None
Sixth	1	None
Seventh and following	None	None

You can purchase Class C shares of AIM Short Term Bond Fund at their net asset value and not subject to a CDSC. However, you may be charged a CDSC when you redeem Class C shares of AIM Short Term Bond Fund if you acquired those shares through an exchange, and the shares originally purchased were subject to a CDSC.

Contingent Deferred Sales Charges for Class K and Class R Shares

You can purchase Class K and Class R shares at their net asset value per share. If the distributor pays a concession to the dealer of record, however, the Class K shares are subject to a 0.70% CDSC, and the Class R shares are subject to a 0.75% CDSC at the time of redemption if all retirement plan assets are redeemed within 12 months from the date of the retirement plan’s initial purchase.

Computing a CDSC

The CDSC on redemptions of shares is computed based on the lower of their original purchase price or current market value, net of reinvested dividends and capital gains distributions. In determining whether to charge a CDSC, we will assume that you are redeeming shares on which there is no CDSC first and, then, shares in the order of purchase.

Reduced Sales Charges and Sales Charge Exceptions

You may qualify for reduced sales charges or sales charge exceptions. To qualify for these reductions or exceptions, you or your financial consultant must notify the transfer agent at the time of purchase that your purchase qualifies for such treatment. Certain individuals and employer-sponsored retirement plans may link accounts for the purpose of qualifying for lower initial sales charges. You or your financial consultant must provide other account numbers to be considered for Rights of Accumulation, or mark the Letter of Intent section on the account application, or provide other relevant documentation, so that the transfer agent can verify your eligibility for the reduction or exception. Consult the fund’s Statement of Additional Information for details.

Reduced Sales Charges

You may be eligible to buy Class A shares at reduced initial sales charge rates under Rights of Accumulation or Letters of Intent under certain circumstances.

Purchases of Class A shares of AIM Tax-Exempt Cash Fund, Class A3 shares of AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund, AIM Cash Reserve Shares of AIM Money Market Fund and Class B and Class C shares of AIM Floating Rate Fund and Investor Class shares of any AIM fund will not be taken into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to Rights of Accumulation or Letters of Intent.

Rights of Accumulation

You may combine your new purchases of Class A shares of an AIM fund with AIM fund shares currently owned (Class A, B, C, K or R) for the purpose of qualifying for the lower initial sales charge rates that apply to larger purchases. The applicable initial sales charge for the new purchase is based on the total of your current purchase and the public offering price of all other shares you own. The transfer agent may automatically link certain accounts registered in the same name, with the same taxpayer identification number, for the purpose of qualifying you for lower initial sales charge rates.

Letters of Intent

Under a Letter of Intent (LOI), you commit to purchase a specified dollar amount of Class A shares of AIM funds during a 13-month period. The amount you agree to purchase determines the initial sales charge you pay. If the full face amount of the LOI is not invested by the end of the 13-month period, your account will be adjusted to the higher initial sales charge level for the amount actually invested.

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Initial Sales Charge Exceptions

You will not pay initial sales charges

n	on shares purchased by reinvesting dividends and distributions;

n	when exchanging shares among certain AIM funds; and

n	when a merger, consolidation, or acquisition of assets of an AIM fund occurs.

Contingent Deferred Sales Charge (CDSC) Exceptions

You will not pay a CDSC

n	if you redeem Class B shares you held for more than six years;

n	if you redeem Class C shares you held for more than one year;

n	if you redeem Class C shares of an AIM fund other than AIM Short Term Bond Fund and you received such Class C shares by exchanging Class C shares of AIM Short Term Bond Fund;

n	if you redeem Class C shares of AIM Short Term Bond Fund unless you received such Class C shares by exchanging Class C shares of another AIM fund and the original purchase was subject to a CDSC;

n	if you are a participant in a retirement plan and your plan redeems, at any time, less than all of the Class K or Class R shares held through such plan that would otherwise be subject to a CDSC;

n	if you are a participant in a retirement plan and your plan redeems, after having held them for more than one year from the date of the plan’s initial purchase, all of the Class K or Class R shares held through such plan that would otherwise be subject to a CDSC;

n	if you are a participant in a qualified retirement plan and redeem Class C, Class K or Class R shares in order to fund a distribution;

n	if you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any twelve-month period;

n	if you redeem shares to pay account fees;

n	for redemptions following the death or post-purchase disability of a shareholder or beneficial owner;

n	if you redeem shares acquired through reinvestment of dividends and distributions; and

n	on increases in the net asset value of your shares.

There may be other situations when you may be able to purchase or redeem shares at reduced or without sales charges. Consult the fund’s Statement of Additional Information for details.

TOOLS USED TO COMBAT EXCESSIVE SHORT-TERM TRADING ACTIVITY

While the funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors. Excessive short-term trading activity in the funds’ shares (i.e., a purchase of fund shares followed shortly thereafter by a redemption of such shares, or vice versa) may hurt the long-term performance of certain funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio holdings at a disadvantageous time. A I M Advisors, Inc. and its affiliates (collectively, the “AIM Affiliates”) currently use the following tools designed to discourage excessive short-term trading in the retail AIM funds (the “funds”):

(1)

trade activity monitoring;

(2)

trading guidelines;

(3)

redemption fee on trades in certain funds; and

(4)

selective use of fair value pricing.

Each of these tools is described in more detail below. Although these tools are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together eliminate the possibility that excessive short-term trading activity in the funds will occur. Moreover, each of these tools involves judgments that are inherently subjective. The AIM Affiliates seek to make these judgments to the best of their abilities in a manner that they believe is consistent with shareholder interests.

Trade Activity Monitoring

The AIM Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of this monitoring, the AIM Affiliates believe that a shareholder has engaged in excessive short-term trading, they may, in their discretion, ask the shareholder to stop such activities or refuse to process purchases or exchanges in the shareholder’s accounts other than exchanges into a money market fund. In making such judgments, the AIM Affiliates seek to act in a manner that they believe is consistent with the best interests of shareholders.

The ability of the AIM Affiliates to monitor trades that are placed by the underlying shareholders of omnibus accounts maintained by brokers, retirement plan accounts and approved fee-based program accounts is severely limited in those instances in which the broker, retirement plan administrator or fee-based program sponsor maintains the underlying shareholder accounts. This is one reason why this tool cannot eliminate the possibility of excessive short-term trading.

Trading Guidelines

If you exceed four exchanges out of a fund (other than AIM Money Market Fund, AIM Tax-Exempt Cash Fund, AIM Limited Maturity Treasury Fund and Premier INVESCO U.S. Government Money Portfolio) per calendar year, or a fund or the distributor determines, in its sole discretion, that your short-term trading activity is excessive (regardless of whether or not you exceed such guidelines), it may, in its discretion, reject any additional purchase and exchange orders. Each fund and the distributor reserves the discretion to accept exchanges in excess of these guidelines on a case-by-case basis if it believes that granting such exceptions would be consistent with the best interests of shareholders. An exchange is the movement out of (redemption) one fund and into (purchase) another fund.

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THE AIM FUNDS

The ability of the AIM Affiliates to monitor exchanges made by the underlying shareholders of omnibus accounts maintained by brokers, retirement plan accounts and approved fee-based program accounts is severely limited in those instances in which the broker, retirement plan administrator or fee-based program sponsor maintains the underlying shareholder accounts. This is one reason why this tool cannot eliminate the possibility of excessive short-term trading.

Redemption Fee

You may be charged a 2% redemption fee if you redeem, including redeeming by exchange, Class A, Investor Class or Institutional Class (applicable only to AIM S&P 500 Index Fund) shares of certain funds within 30 days of purchase. The AIM Affiliates expect to charge the redemption fee on other classes of shares when the funds’ transfer agent system has the capability of processing the fee across these other classes. See “Redeeming Shares — Redemption Fee” for more information.

The ability of a fund to assess a redemption fee on the underlying shareholders of omnibus accounts maintained by brokers, retirement plan accounts and approved fee-based program accounts is severely limited in those instances in which the broker, retirement plan administrator or fee-based program sponsor maintains the underlying shareholder account and may be further limited by systems limitations applicable to these types of accounts. Additionally, the AIM Affiliates maintain certain retirement plan accounts on a record keeping system that is currently incapable of processing the redemption fee. The provider of this system is working to enhance the system to facilitate the processing of this fee. These are two reasons why this tool cannot eliminate the possibility of excessive short-term trading activity.

Fair Value Pricing

The trading hours for most foreign securities end prior to the close of the New York Stock Exchange, the time the fund’s net asset value is calculated. The occurrence of certain events after the close of foreign markets, but prior to the close of the U.S. market (such as a significant change in the U.S. market) often will result in an adjustment to the trading prices of foreign securities when foreign markets open on the following business day. If such events occur, the fund may value foreign securities at fair value, taking into account such events, when it calculates its net asset value. Fair value determinations are made in good faith in accordance with procedures adopted by the Board of Trustees of the fund. The overall pricing methodology and pricing services can change from time to time as approved by the Board of Trustees. See “Pricing of Shares — Determination of Net Asset Value” for more information.

Fair value pricing results in an estimated price and may reduce the possibility that short-term traders could take advantage of potentially “stale” prices of portfolio holdings. However, if cannot eliminate the possibility of excessive short-term trading.

PURCHASING SHARES

If you hold your shares through a broker/dealer or other financial institution, your eligibility to purchase those shares, the conditions for purchase and sale, and the minimum and maximum amounts allowed may differ depending on that institution’s policies.

Minimum Investments Per AIM Fund Account

There are no minimum investments with respect to Class K and Class R shares for AIM fund accounts. The minimum investments with respect to Class A, A3, B and C shares and Investor Class shares for AIM fund accounts are as follows:


Type of Account	Initial Investments			Additional Investments
Employer-Sponsored Retirement Plans (includes section 401, 403 and 457 plans, and SEP, SARSEP and SIMPLE IRA plans)	$	0	($25 per AIM fund investment for salary deferrals from Employer-Sponsored Retirement Plans)	$	50
Systematic Purchase Plan		50			50
IRA, Roth IRA or Coverdell ESA		250			50
All other accounts		1,000			50

How to Purchase Shares

You may purchase shares using one of the options below. Purchase orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be processed. Additionally, Federal law requires that the AIM fund verify and record your identifying information.

Purchase Options

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


	Opening An Account	Adding To An Account
Through a Financial Consultant	Contact your financial consultant.	Same
By Mail	Mail completed account application and check to the transfer agent, AIM Investment Services, Inc., P.O. Box 4739, Houston, TX 77210-4739.	Mail your check and the remittance slip from your confirmation statement to the transfer agent.

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	Opening An Account	Adding To An Account
By Wire	Mail completed account application to the transfer agent. Call the transfer agent at (800) 959-4246 to receive a reference number. Then, use the following wire instructions:	Call the transfer agent to receive a reference number. Then, use the wire instructions at left.
	Beneficiary Bank ABA/Routing #: 113000609
	Beneficiary Account Number: 00100366807
	Beneficiary Account Name: AIM Investment Services, Inc.
	RFB: Fund Name, Reference #
	OBI: Your Name, Account #
By Telephone	Open your account using one of the methods described above.	Select the AIM Bank Connection^SM option on your completed account application or complete an AIM Bank Connection form. Mail the application or form to the transfer agent. Once the transfer agent has received the form, call the transfer agent to place your purchase order. Call the AIM 24-hour Automated Investor Line at 1-800-246-5463. You may place your order after you have provided the bank instructions that will be requested.
By Internet	Open your account using one of the methods described above.	Access your account at www.aiminvestments.com. The proper bank instructions must have been provided on your account. You may not purchase shares in AIM prototype retirement accounts on the internet.

Grandfathered Investors

Investor Class shares of a fund may be purchased only by: (1) persons or entities who had established an account, prior to April 1, 2002, in Investor Class shares of any of the funds currently distributed by A I M Distributors, Inc. (the “Grandfathered Funds”) and have continuously maintained such account in Investor Class shares since April 1, 2002; (2) any person or entity listed in the account registration for any Grandfathered Funds, which account was established prior to April 1, 2002 and continuously maintained since April 1, 2002, such as joint owners, trustees, custodians and designated beneficiaries; (3) customers of certain financial institutions, wrap accounts or other fee-based advisory programs, or insurance company separate accounts, which have had relationships with A I M Distributors, Inc. and/or any of the Grandfathered Funds prior to April 1, 2002 and continuously maintained such relationships since April 1, 2002; (4) defined benefit, defined contribution and deferred compensation plans; and (5) AIM fund trustees, employees of AMVESCAP PLC and its subsidiaries, AMVESCAP directors, and their immediate families.

Special Plans

Systematic Purchase Plan

You can arrange for periodic investments in any of the AIM funds by authorizing the AIM fund to withdraw the amount of your investment from your bank account on a day or dates you specify and in an amount of at least $50. You may stop the Systematic Purchase Plan at any time by giving the transfer agent notice ten days prior to your next scheduled withdrawal.

Dollar Cost Averaging

Dollar Cost Averaging allows you to make automatic monthly or quarterly exchanges, if permitted, from one AIM fund account to one or more other AIM fund accounts with the identical registration. The account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur on (or about) the 10th or 25th day of the month, whichever you specify, in the amount you specify. The minimum amount you can exchange to another AIM fund is $50.

Automatic Dividend Investment

All of your dividends and distributions may be paid in cash or invested in any AIM fund at net asset value. Unless you specify otherwise, your dividends and distributions will automatically be reinvested in the same AIM fund. You may invest your dividends and distributions (1) into another AIM fund in the same class of shares; or (2) from Class A shares into AIM Cash Reserve Shares of AIM Money Market Fund, or vice versa.

You must comply with the following requirements to be eligible to invest your dividends and distributions in shares of another AIM fund:

(1)

Your account balance (a) in the AIM fund paying the dividend must be at least $5,000; and (b) in the AIM fund receiving the dividend must be at least $500;

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(2)

Both accounts must have identical registration information; and

(3)

You must have completed an authorization form to reinvest dividends into another AIM fund.

Portfolio Rebalancing Program

If you have at least $5,000 in your account, you may participate in the Portfolio Rebalancing Program. Under this Program, you can designate how the total value of your AIM fund holdings should be rebalanced, on a percentage basis, between two and ten of your AIM funds on a quarterly, semiannual or annual basis. Your portfolio will be rebalanced through the exchange of shares in one or more of your AIM funds for shares of the same class of one or more other AIM funds in your portfolio. If you wish to participate in the Program, make changes or cancel the Program, the transfer agent must receive your request to participate, changes, or cancellation in good order at least five business days prior to the next rebalancing date, which is normally the 28th day of the last month of the period you choose. You may realize taxable gains from these exchanges. We may modify, suspend or terminate the Program at any time on 60 days prior written notice.

Retirement Plans

Shares of most of the AIM funds can be purchased through tax-sheltered retirement plans made available to corporations, individuals and employees of non-profit organizations and public schools. A plan document must be adopted to establish a retirement plan. You may use AIM sponsored retirement plans, which include IRAs, Roth IRAs, SIMPLE IRA plans, SEP/SARSEP plans, 403(b) plans, 401(k) plans and Money Purchase/Profit Sharing plans, or another sponsor’s retirement plan. The plan custodian of the AIM sponsored retirement plan assesses an annual maintenance fee of $10. Contact your financial consultant for details.

REDEEMING SHARES

Redemption Fee

You may be charged a 2% redemption fee (on total redemption proceeds) if you redeem, including redeeming by exchange, Class A, Investor Class or Institutional Class (applicable only to AIM S&P 500 Index Fund) shares of the following funds (either by selling or exchanging to another AIM fund) within 30 days of their purchase:


AIM Asia Pacific Growth Fund		AIM Global Value Fund
AIM Developing Markets Fund		AIM High Yield Fund
AIM European Growth Fund		AIM International Core Equity Fund
AIM European Small Company Fund		AIM International Emerging Growth Fund
AIM Global Aggressive Growth Fund		AIM International Growth Fund
AIM Global Equity Fund		AIM S&P 500 Index Fund
AIM Global Growth Fund		AIM Trimark Fund

The redemption fee will be retained by the fund from which you are redeeming shares (including redemptions by exchange), and is intended to offset the trading costs, market impact and other costs associated with short-term money movements in and out of the fund. The redemption fee is imposed to the extent that the number of fund shares you redeem exceeds the number of fund shares that you have held for more than 30 days. In determining whether the minimum 30 day holding period has been met, only the period during which you have held shares of the fund from which you are redeeming is counted. For this purpose, shares held longest will be treated as being redeemed first and shares held shortest as being redeemed last.

The 2% redemption fee will not be charged on transactions involving the following:

(1)

total or partial redemptions of shares by omnibus accounts maintained by brokers that do not have the systematic capability to process the redemption fee;

(2)

total or partial redemptions of shares by approved fee-based programs that do not have the systematic capability to process the redemption fee;

(3)

total or partial redemptions of shares held through retirement plans maintained pursuant to Sections 401, 403, 408, 408A and 457 of the Internal Revenue Code (the “Code”) where the systematic capability to process the redemption fee does not exist;

(4)

total or partial redemptions effectuated pursuant to an automatic non-discretionary rebalancing program or a systematic withdrawal plan set up in the funds;

(5)

total or partial redemptions requested within 30 days following the death or post-purchase disability of (i) any registered shareholder on an account or (ii) the settlor of a living trust which is the registered shareholder of an account, of shares held in the account at the time of death or initial determination of post-purchase disability;

(6)

total or partial redemption of shares acquired through investment of dividends and other distributions; or

(7)

redemptions initiated by a fund.

The AIM Affiliates’ goals are to apply the redemption fee on all classes of shares regardless of the type of account in which such shares are held. This goal is not immediately achievable because of systems limitations and marketplace resistance. Currently, the redemption fee may be applied on Class A and Investor Class shares (and Institutional Shares for AIM S&P 500 Index Fund). AIM expects to charge the redemption fee on all other classes of shares when the funds’ transfer agent system has the capability of processing the fee across these other classes. In addition, AIM intends to develop a plan to encourage brokers that maintain omnibus accounts, sponsors of fee-based program accounts and retirement plan administrators for accounts that are exempt from the redemption fee pursuant to the terms above to modify computer programs to impose the redemption fee or to develop alternate processes to monitor and restrict short-term trading activity in the funds. Lastly, the provider of AIM’s retirement plan record keeping system is working to enhance the system to facilitate the processing of the redemption fee. Until such computer programs are

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modified or alternate processes are developed, the fund’s ability to assess a redemption fee on these types of share classes and accounts is severely limited. These are reasons why the redemption fees cannot eliminate the possibility of excessive short-term trading activity.

The funds have the discretion to waive the 2% redemption fee if a fund is in jeopardy of failing the 90% income test or losing its registered investment company qualification for tax purposes.

Your broker or financial consultant may charge service fees for handling redemption transactions. Your shares also may be subject to a contingent deferred sales charge (CDSC).

Redemption of Class A Shares and AIM Cash Reserve Shares Acquired by Exchange for Purchases Made Prior to November 15, 2001.

If you purchased $1,000,000 or more of Class A shares of any AIM fund at net asset value prior to November 15, 2001, or entered into a Letter of Intent prior to November 15, 2001 to purchase $1,000,000 or more of Class A shares of a Category I, II or III AIM fund at net asset value, your shares may be subject to a CDSC upon redemption, as described below.


Shares Initially Purchased	Shares Held After an Exchange	CDSC Applicable Upon Redemption of Shares
• Class A shares of Category I or II Fund	• Class A shares of Category I or II Fund or AIM Short Term Bond Fund • Class A shares of Category III Fund¹ • AIM Cash Reserve Shares of AIM Money Market Fund	• 1% if shares are redeemed within 18 months of initial purchase of Category I or II Fund or AIM Short Term Bond Fund shares

• Class A shares of Category III Fund1	• Class A shares of Category III Fund¹ • Class A shares of AIM Tax-Exempt Cash Fund • AIM Cash Reserve Shares of AIM Money Market Fund	• No CDSC

Beginning on February 17, 2003, Class A shares of a Category I, II or III Fund or AIM Short Term Bond Fund may not be exchanged for Class A shares of a Category III Fund.

Redemption of Class A Shares and AIM Cash Reserve Shares Acquired by Exchange for Purchases Made On and After November 15, 2001

If you purchase $1,000,000 or more of Class A shares of any AIM fund on and after November 15, 2001 (and through October 30, 2002 with respect to Class A shares of Category III AIM funds), or if you make additional purchases of Class A shares on and after November 15, 2001 (and through October 30, 2002 with respect to Class A shares of Category III AIM funds) at net asset value, your shares may be subject to a CDSC upon redemption, as described below.


Shares Initially Purchased	Shares Held After an Exchange	CDSC Applicable Upon Redemption of Shares
• Class A shares of Category I or II Fund or AIM Short Term Bond Fund	• Class A shares of Category I or II Fund or AIM Short Term Bond Fund • Class A shares of Category III Fund¹ • AIM Cash Reserve Shares of AIM Money Market Fund	• 1% if shares are redeemed within 18 months of initial purchase of Category I or II Fund or AIM Short Term Bond Fund shares

• Class A shares of Category III Fund	• Class A shares of Category I or II Fund or AIM Short Term Bond Fund	• 1% if shares are redeemed within 18 months of initial purchase of Category III Fund shares

• Class A shares of Category III Fund	• Class A shares of Category III Fund¹ • Class A shares of AIM Tax-Exempt Cash Fund • AIM Cash Reserve Shares of AIM Money Market Fund	• 0.25% if shares are redeemed within 12 months of initial purchase of Category III Fund shares

Beginning on February 17, 2003, Class A shares of a Category I, II or III Fund or AIM Short Term Bond Fund may not be exchanged for Class A shares of a Category III Fund.

Redemption of Class A Shares and AIM Cash Reserve Shares Acquired by Exchange for Purchases Made After October 30, 2002

If you purchase $1,000,000 or more of Class A shares of any AIM fund on or after October 31, 2002, or if you make additional purchases of Class A shares on and after October 31, 2002 at net asset value, your shares may be subject to a CDSC upon redemption as described below.


Shares Initially Purchased	Shares Held After an Exchange	CDSC Applicable Upon Redemption of Shares
• Class A shares of Category I or II Fund or AIM Short Term Bond Fund	• Class A shares of Category I or II Fund or AIM Short Term Bond Fund • Class A shares of Category III Fund² • AIM Cash Reserve Shares of AIM Money Market Fund	• 1% if shares are redeemed within 18 months of initial purchase of Category I or II Fund or AIM Short Term Bond Fund shares

• Class A shares of Category III Fund1	• Class A shares of Category I or II Fund or AIM Short Term Bond Fund	• 1% if shares are redeemed within 18 months of initial purchase of Category III Fund shares

• Class A shares of Category III Fund¹	• Class A shares of Category III Fund² • Class A shares of AIM Tax-Exempt Cash Fund • AIM Cash Reserve Shares of AIM Money Market	• No CDSC

As of the close of business on October 30, 2002, only existing shareholders of Class A shares of a Category III Fund may purchase such shares.

Beginning on February 17, 2003, Class A shares of a Category I, II or III Fund or AIM Short Term Bond Fund may not be exchanged for Class A shares of Category III Fund.

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Redemption of Class B Shares Acquired by Exchange from AIM Floating Rate Fund

If you redeem Class B shares you acquired by exchange via a tender offer by AIM Floating Rate Fund, the early withdrawal charge applicable to shares of AIM Floating Rate Fund will be applied instead of the CDSC normally applicable to Class B shares.


How to Redeem Shares
Through a Financial Consultant		Contact your financial consultant, including your retirement plan or program sponsor.

By Mail		Send a written request to the transfer agent. Requests must include (1) original signatures of all registered owners; (2) the name of the AIM fund and your account number; (3) if the transfer agent does not hold your shares, endorsed share certificates or share certificates accompanied by an executed stock power; and (4) signature guarantees, if necessary (see below). The transfer agent may require that you provide additional information, such as corporate resolutions or powers of attorney, if applicable. If you are redeeming from an IRA account, you must include a statement of whether or not you are at least 59¹/2 years old and whether you wish to have federal income tax withheld from your proceeds. The transfer agent may require certain other information before you can redeem from an employer-sponsored retirement plan. Contact your employer for details.

By Telephone		Call the transfer agent at 1-800-959-4246 or our AIM 24-hour Automated Investor Line at 1-800-246-5463. You will be allowed to redeem by telephone if (1) the proceeds are to be mailed to the address on record (if there has been no change communicated to us within the last 30 days) or transferred electronically to a pre-authorized checking account; (2) you do not hold physical share certificates; (3) you can provide proper identification information; (4) the proceeds of the redemption do not exceed $250,000; and (5) you have not previously declined the telephone redemption privilege. Certain accounts, including retirement accounts and 403(b) plans, may not be redeemed by telephone. The transfer agent must receive your call during the hours of the customary trading session of the New York Stock Exchange (NYSE) in order to effect the redemption at that day’s closing price. You may, with limited exceptions, redeem from an IRA account by telephone. Redemptions from other types of retirement accounts must be requested in writing.

By Internet		Place your redemption request at www.aiminvestments.com. You will be allowed to redeem by internet if (1) you do not hold physical share certificates; (2) you can provide proper identification information; (3) the proceeds of the redemption do not exceed $250,000; and (4) you have already provided proper bank information. AIM prototype retirement accounts may not be redeemed on the internet. The transfer agent must confirm your transaction during the hours of the customary trading session of the NYSE in order to effect the redemption at that day’s closing price.

Timing and Method of Payment

We normally will send out checks within one business day, and in any event no more than seven days, after we accept your request to redeem. If you redeem shares recently purchased by check, you will be required to wait up to ten business days before we will send your redemption proceeds. This delay is necessary to ensure that the purchase check has cleared.

Redemption by Mail

If you mail us a request in good order to redeem your shares, we will mail you a check in the amount of the redemption proceeds to the address on record with us. If your request is not in good order, you may have to provide us with additional documentation in order to redeem your shares.

Redemption by Telephone

If you redeem by telephone, we will mail you a check in the amount of the redemption proceeds to your address of record (if there has been no change communicated to the transfer agent within the previous 30 days) or transmit them electronically to your pre-authorized bank account. We use reasonable procedures to confirm that instructions communicated by telephone are genuine and are not liable for telephone instructions that are reasonably believed to be genuine.

Redemption by Internet

If you redeem by internet, we will transmit your redemption proceeds electronically to your pre-authorized bank account. We use reasonable procedures to confirm that instructions communicated by internet are genuine and we are not liable for internet instructions that are reasonably believed to be genuine.

Payment for Systematic Redemptions

You may arrange for regular monthly or quarterly withdrawals from your account of at least $100. You also may make annual withdrawals if you own Class A shares. We will redeem enough shares from your account to cover the amount withdrawn. You must have an account balance of at least $5,000 to establish a Systematic Redemption Plan. You can stop this plan at any time by giving ten days prior notice to the transfer agent.

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Expedited Redemptions

(AIM Cash Reserve Shares of AIM Money Market Fund only)

If we receive your redemption order before 11:30 a.m. Eastern Time, we will try to transmit payment of redemption proceeds on that same day. If we receive your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the NYSE, we generally will transmit payment on the next business day.

Redemptions by Check

(Class A shares of AIM Tax-Exempt Cash Fund and AIM Cash Reserve Shares of AIM Money Market Fund only)

You may redeem shares of these AIM funds by writing checks in amounts of $250 or more if you have completed an authorization form. Redemption by check is not available for retirement accounts.

Signature Guarantees

We require a signature guarantee when you redeem by mail and

(1)

the amount is greater than $250,000;

(2)

you request that payment be made to someone other than the name registered on the account;

(3)

you request that payment be sent somewhere other than the bank of record on the account; or

(4)

you request that payment be sent to a new address or an address that changed in the last 30 days.

The transfer agent will accept a guarantee of your signature by a number of financial institutions. Call the transfer agent for additional information. Some institutions have transaction amount maximums for these guarantees. Please check with the guarantor institution.

Redemptions in Kind

Although the AIM funds generally intend to pay redemption proceeds solely in cash, the AIM funds reserve the right to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind).

Redemptions by the AIM Funds

If your account (Class A, Class A3, Class B, Class C and Investor Class shares only) has been open at least one year, you have not made an additional purchase in the account during the past six calendar months, and the value of your account falls below $500 ($250 for Investor Class shares) for three consecutive months due to redemptions or exchanges (excluding retirement accounts), the AIM funds have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed during the notice period by bringing the account value up to $500 ($250 for Investor Class shares) or by utilizing the Automatic Investment Plan.

If an AIM fund determines that you have not provided a correct Social Security or other tax ID number on your account application, or the AIM fund is not able to verify your identity as required by law, the AIM fund may, at its discretion, redeem the account and distribute the proceeds to you.

EXCHANGING SHARES

You may, under certain circumstances, exchange shares in one AIM fund for those of another AIM fund. An exchange is the movement out of (redemption) one fund and into (purchase) another fund. Before requesting an exchange, review the prospectus of the AIM fund you wish to acquire. Exchange privileges also apply to holders of the Connecticut General Guaranteed Account, established for tax-qualified group annuities, for contracts purchased on or before June 30, 1992.

You may be charged a redemption fee on certain redemptions, including exchanges. See “Redeeming Shares — Redemption Fee.”

Permitted Exchanges

Except as otherwise stated under “Exchanges Not Permitted,” you generally may exchange your shares for shares of the same class of another AIM fund.

You may also exchange:

(1)

Class A shares of an AIM fund for AIM Cash Reserve Shares of AIM Money Market Fund;

(2)

Class A shares of an AIM fund (excluding AIM Limited Maturity Treasury Fund, AIM Tax-Exempt Cash Fund and AIM Tax-Free Intermediate Fund) for Class A3 shares of an AIM fund;

(3)

Class A3 shares of an AIM fund for AIM Cash Reserve shares of AIM Money Market Fund;

(4)

Class A3 shares of an AIM fund for Class A shares of any AIM fund (excluding AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund);

(5)

AIM Cash Reserve Shares of AIM Money Market Fund for Class A3 shares of an AIM fund;

(6)

AIM Cash Reserve Shares of AIM Money Market Fund for Class A shares of any AIM fund (excluding AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund, effective February 17, 2003, and AIM Tax-Exempt Cash Fund);

(7)

Investor Class shares of an AIM fund for Class A shares of any AIM fund (excluding AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund) or Class A3 shares of an AIM fund; or

(8)

Class A or A3 shares of an AIM fund for Investor Class shares of any AIM fund as long as you are eligible to purchase Investor Class shares of any AIM fund at the time of exchange.

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You may be required to pay an initial sales charge when exchanging from a fund with a lower initial sales charge than the one into which you are exchanging. If you exchange into shares that are subject to a CDSC, we will begin the holding period for purposes of calculating the CDSC on the date you made your initial purchase.

Exchanges Not Subject to a Sales Charge

You will not pay an initial sales charge when exchanging:

(1)

Class A shares with an initial sales charge (excluding Class A shares of AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund) for

(a)

Class A shares of another AIM fund;

(b)

AIM Cash Reserve Shares of AIM Money Market Fund; or

(c)

Class A3 shares of AIM Limited Maturity Treasury Fund or AIM Tax-Free Intermediate Fund.

(2)

Class A shares of AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund with an initial sales charge for

(a)

AIM Cash Reserve Shares of AIM Money Market Fund or Class A shares of AIM Tax-Exempt Cash Fund; or

(b)

Class A shares of another AIM Fund, but only if

(i)

you acquired the original shares before May 1, 1994; or

(ii)

you acquired the original shares on or after May 1, 1994 by way of an exchange from shares with higher initial sales charges; or

(3)

AIM Cash Reserve Shares of AIM Money Market Fund or Class A shares of AIM Tax-Exempt Cash Fund for

(a)

Class A shares of an AIM fund subject to an initial sales charge (excluding Class A shares of AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund), but only if you acquired the original shares

(i)

prior to May 1, 1994 by exchange from Class A shares subject to an initial sales charge;

(ii)

on or after May 1, 1994 by exchange from Class A shares subject to an initial sales charge (excluding Class A shares of AIM Limited Maturity Treasury Fund and AIM Tax-Free Intermediate Fund); or

(4)

Class A3 shares of AIM Limited Maturity Treasury Fund or AIM Tax-Free Intermediate Fund for

(a)

AIM Cash Reserve Shares of AIM Money Market Fund; or

(b)

Class A shares of AIM Tax-Exempt Cash Fund.

You will not pay a CDSC or other sales charge when exchanging:

(1)

Class A shares for other Class A shares;

(2)

Class B shares for other Class B shares;

(3)

Class C shares for other Class C shares;

(4)

Class K shares for other Class K shares;

(5)

Class R shares for other Class R shares.

Exchanges Not Permitted

Certain classes of shares are not covered by the exchange privilege. You may not exchange:

(1)

Class A shares of a Category I or II AIM fund, Class A shares of AIM Short Term Bond Fund for Class A shares of a Category III AIM fund after February 16, 2003; or

(2)

Class A shares of a Category III AIM fund for Class A shares of another Category III AIM fund after February 16, 2003.

For shares purchased prior to November 15, 2001, you may not exchange:

(1)

Class A shares of Category I or II AIM funds (i) subject to an initial sales charge or (ii) purchased at net asset value and subject to a contingent deferred sales charge (CDSC) for Class A shares of AIM Tax-Exempt Cash Fund;

(2)

Class A shares of Category III AIM funds purchased at net asset value for Class A shares of a Category I or II AIM fund, Class A shares of AIM Short Term Bond Fund;

(3)

AIM Cash Reserve Shares of AIM Money Market Fund for Class B or Class C shares of any AIM fund;

(4)

AIM Cash Reserve Shares of AIM Money Market Fund or Class A shares of AIM Tax-Exempt Cash Fund for Class A shares of a Category I or II AIM fund, Class A shares of AIM Short Term Bond Fund that are subject to a CDSC; or

(5)

on or after January 15, 2002, AIM Cash Reserve Shares of AIM Money Market Fund or Class A shares of AIM Tax-Exempt Cash Fund for Class A shares of Category III AIM Funds that are subject to a CDSC.

For shares purchased on or after November 15, 2001, you may not exchange:

(1)

Class A shares of Category I or II AIM fund, Class A shares of AIM Short Term Bond Fund (i) subject to an initial sales charge or (ii) purchased at net asset value and subject to a CDSC for Class A shares of AIM Tax-Exempt Cash Fund;

(2)

Class A shares of AIM Tax-Exempt Cash Fund for Class A shares of any other AIM fund (i) subject to an initial sales charge or (ii) purchased at net asset value and subject to a CDSC or for AIM Cash Reserve Shares of AIM Money Market Fund; or

(3)

AIM Cash Reserve Shares of AIM Money Market Fund for Class B or Class C shares of any AIM fund or for Class A shares of any AIM fund that are subject to a CDSC, however, if you originally purchased Class A shares of a Category I or II AIM fund or AIM Short Term Bond Fund, and exchanged those shares for AIM Cash Reserve Shares of AIM Money Market Fund, you may further exchange the AIM Cash Reserve Shares for Class A shares of a Category I or II AIM fund or AIM Short Term Bond Fund.

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Exchange Conditions

The following conditions apply to all exchanges:

n	You must meet the minimum purchase requirements for the AIM fund into which you are exchanging;

n	Shares of the AIM fund you wish to acquire must be available for sale in your state of residence;

n	Exchanges must be made between accounts with identical registration information;

n	The account you wish to exchange from must have a certified tax identification number (or the Fund has received an appropriate Form W-8 or W-9);

n	Shares must have been held for at least one day prior to the exchange; and

n	If you have physical share certificates, you must return them to the transfer agent prior to the exchange.

Terms of Exchange

Under unusual market conditions, an AIM fund may delay the purchase of shares being acquired in an exchange for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds. The exchange privilege is not an option or right to purchase shares. Any of the participating AIM funds or the distributor may modify or terminate this privilege at any time. The AIM fund or the distributor will provide you with notice of such modification or termination whenever it is required to do so by applicable law, but may impose changes at any time for emergency purposes.

By Mail

If you wish to make an exchange by mail, you must include original signatures of each registered owner exactly as the shares are registered, the account registration and account number, the dollar amount or number of shares to be exchanged and the names of the AIM funds from which and into which the exchange is to be made.

By Telephone

Conditions that apply to exchanges by telephone are the same as redemptions by telephone, including that the transfer agent must receive exchange requests during the hours of the customary trading session of the NYSE; however, you still will be allowed to exchange by telephone even if you have changed your address of record within the preceding 30 days.

By Internet

You will be allowed to exchange by internet if you do not hold physical share certificates and you provide the proper identification information.

Exchanging Class B, Class C and Class R Shares

If you make an exchange involving Class B or Class C shares or Class R shares subject to a CDSC, the amount of time you held the original shares will be credited to the holding period of the Class B, Class C or Class R shares, respectively, into which you exchanged for the purpose of calculating contingent deferred sales charges (CDSC) if you later redeem the exchanged shares. If you redeem Class B or Class C shares acquired by exchange via a tender offer by AIM Floating Rate Fund, you will be credited with the time period you held the Class B or Class C shares of AIM Floating Rate Fund for the purpose of computing the early withdrawal charge applicable to those shares.

Each AIM fund and its agents reserve the right at any time to:

reject or cancel all or any part of any purchase or exchange order;

modify any terms or conditions of purchase of shares of any AIM fund;

reject or cancel any request to establish the Systematic Purchase Plan and Systematic Redemption Plan options on the same account; or

suspend, change or withdraw all or any part of the offering made by this prospectus.

PRICING OF SHARES

Determination of Net Asset Value

The price of each AIM fund’s shares is the fund’s net asset value per share. The AIM funds value portfolio securities for which market quotations are readily available at market value. The AIM funds’ short-term investments are valued at amortized cost when the security has 60 days or less to maturity. AIM Money Market Fund and AIM Tax-Exempt Cash Fund value all of their securities at amortized cost. AIM High Income Municipal Fund, AIM Municipal Bond Fund and AIM Tax-Free Intermediate Fund value variable rate securities that have an unconditional demand or put feature exercisable within seven days or less at par, which reflects the market value of such securities.

The AIM funds value all other securities and assets at their fair value. Foreign securities are converted into U.S. dollar amounts using exchange rates as of the close of the NYSE. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the net asset value of the AIM funds’ shares are determined as of the close of the respective markets. Events affecting the values of such securities may occur between the times at which the particular foreign market closes and the close of the customary trading session of the NYSE which would not ordinarily be reflected in the computation of the AIM fund’s net asset value. If a development/event is so significant such that there is a reasonably high degree of certainty as to both the effect and the degree of the effect that the development/event has actually

MCF—11/04—A

A-12

THE AIM FUNDS

caused that closing price to no longer reflect actual value, the closing prices, as determined at the close of the applicable foreign market, may be adjusted to reflect the fair value of the affected foreign securities as of the close of the NYSE as determined in good faith by or under the supervision of the Board of Trustees. Adjustments to closing prices to reflect fair value on affected foreign securities may be provided by an independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, ADRs, domestic and foreign index futures, and exchange-traded funds. Because some of the AIM funds may invest in securities that are primarily listed on foreign exchanges that trade on days when the AIM funds do not price their shares, the value of those funds’ assets may change on days when you will not be able to purchase or redeem fund shares.

Each AIM fund determines the net asset value of its shares on each day the NYSE is open for business, as of the close of the customary trading session, or any earlier NYSE closing time that day. AIM Money Market Fund also determines its net asset value as of 12:00 noon Eastern Time on each day the NYSE is open for business.

Timing of Orders

You can purchase, exchange or redeem shares during the hours of the customary trading session of the NYSE. The AIM funds price purchase, exchange and redemption orders at the net asset value calculated after the transfer agent receives an order in good order. An AIM fund may postpone the right of redemption only under unusual circumstances, as allowed by the Securities and Exchange Commission, such as when the NYSE restricts or suspends trading.

TAXES

In general, dividends and distributions you receive are taxable as ordinary income or long-term capital gains for federal income tax purposes, whether you reinvest them in additional shares or take them in cash. Distributions are generally taxable to you at different rates depending on the length of time the fund holds its assets and the type of income that the fund earns. Different tax rates apply to ordinary income, qualified dividend income, and long-term capital gain distributions, regardless of how long you have held your shares. Every year, you will be sent information showing the amount of dividends and distributions you received from each AIM fund during the prior year.

Any long-term or short-term capital gains realized from redemptions of AIM fund shares will be subject to federal income tax. Exchanges of shares for shares of another AIM fund are treated as a sale, and any gain realized on the transaction will generally be subject to federal income tax.

Investors in tax-exempt funds should read the information under the heading “Other Information — Special Tax Information Regarding the Fund” in their prospectus.

The foreign, state and local tax consequences of investing in AIM fund shares may differ materially from the federal income tax consequences described above. In addition, the preceding discussion concerning the taxability of fund dividends and distributions and of redemptions and exchanges of AIM fund shares is inapplicable to investors that are generally exempt from federal income tax, such as retirement plans that are qualified under Section 401 of the Internal Revenue Code, individual retirement accounts (IRAs) and Roth IRAs. You should consult your tax advisor before investing.

MCF—11/04—A

A-13

Obtaining Additional Information

More information may be obtained free of charge upon request. The Statement of Additional Information (SAI), a current version of which is on file with the Securities and Exchange Commission (SEC), contains more details about the Funds and is incorporated by reference into the prospectus (is legally a part of this prospectus). Annual and semiannual reports to shareholders contain additional information about the Funds’ investments. The Funds’ annual report also discusses the market conditions and investment strategies that significantly affected the Funds’ performance during its last fiscal year. Beginning with fiscal periods ending after July 9, 2004, the Funds also files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year on Form N-Q.

If you have questions about this Fund, another fund in The AIM Family of Funds_® or your account, or wish to obtain free copies of the

Funds’ current SAI or annual or semiannual reports, please contact us

You also can review and obtain copies of the Fund’s SAI, financial reports, the Funds’ Forms N-Q and other information at the SEC’s Public Reference Room in Washington, D.C.; on the EDGAR database on the SEC’s internet website (http://www.sec.gov); or, after paying a duplication fee, by sending a letter to the SEC’s Public Reference Room, Washington, D.C. 20549-0102 or by sending an electronic mail request to publicinfo@sec.gov. Please call the SEC at 1-202-942-8090 for information about the Public Reference Room.

AIM Dynamics Fund

AIM Small Company Growth Fund

AIM S&P 500 Index Fund

SEC 1940 Act file number: 811-1474


By Mail:		AIM Investment Services, Inc. P. O. Box 4739 Houston, TX 77210-4739

By Telephone:		(800) 959-4246

On the Internet:		You can send us a request by e-mail or download prospectuses, annual or semiannual reports via our website: http://www.aiminvestments.com

The Funds’ most recent portfolio holdings, as filed on Form N-Q, are also available at www.aiminvestments.com.


AIMinvestments.com		I-STO-PRO-1

PROSPECTUS | November 19, 2004

AIM DYNAMICS FUND — INSTITUTIONAL CLASS

A no-load class of shares of a mutual fund designed for investors seeking long-term capital growth.


TABLE OF CONTENTS
Investment Goals, Strategies, And Risks		2
Fund Performance		3
Fee Table And Expense Example		4
Investment Risks		5
Principal Risks Associated With The Fund		5
Temporary Defensive Positions		6
Fund Management		6
Portfolio Managers		7
Potential Rewards		7
Share Price		7
Tools Used To Combat Excessive Short-Term Trading Activity		8
How To Buy Shares		9
Your Account Services		12
How To Sell Shares		13
Taxes		13
Dividends And Capital Gain Distributions		14
Financial Highlights		15
Obtaining Additional Information		Back Cover

The AIM Family of Funds, AIM and Design, AIM, AIM Funds, AIM Funds and Design, AIM Investor, AIM Lifetime America, AIM LINK, AIM Institutional Funds, aimfunds.com, La Familia AIM de Fondos, La Familia AIM de Fondos and Design, Invierta con DISCIPLINA, Invest with DISCIPLINE, The AIM College Savings Plan, AIM Solo 401(k), AIM Investments and Design and Your goals. Our solutions. are registered service marks and AIM Bank Connection, AIM Internet Connect, AIM Private Asset Management, AIM Private Asset Management and Design, AIM Stylized and/or Design, AIM Alternative Assets and Design, AIM Investments and myaim.com are service marks of A I M Management Group Inc. AIM Trimark is a service mark of A I M Management Group Inc. and AIM Funds Management Inc.

The Securities and Exchange Commission has not approved or disapproved the shares of the Fund. Likewise, the Commission has not determined if this Prospectus is truthful or complete. Anyone who tells you otherwise is committing a federal crime.

AIM STOCK FUNDS

LOGO

A I M Advisors, Inc. (“AIM” or the “Advisor”) is the investment advisor for the Fund. On November 25, 2003, a series portfolio of AIM Stock Funds, Inc., a Maryland corporation (the “Company”), was redomesticated as the Fund, which is a series portfolio of AIM Stock Funds, a Delaware statutory trust. Prior to November 25, 2003, INVESCO Funds Group, Inc. (“INVESCO”) served as the investment advisor for the series portfolio of the Company.

This Prospectus contains important information about the Fund’s Institutional Class shares, which are offered only to institutional investors and qualified retirement plans. The Fund also offers one or more additional classes of shares through a separate prospectus. Each of the Fund’s classes has varying expenses, with resulting effects on their performance. You can choose the class of shares that is best for you, based on how much you plan to invest and other relevant factors discussed in “How To Buy Shares.” To obtain additional information about other classes of shares, contact AIM Distributors, Inc. (“ADI”) at 1-800-347-4246.

This Prospectus will tell you more about:

LOGO

Investment Goals & Strategies

LOGO

Potential Investment Risks

LOGO

Past Performance

LOGO

Investment Goals, Strategies, and Risks

FOR MORE DETAILS ABOUT
THE FUND’S CURRENT INVESTMENTS AND MARKET
OUTLOOK, PLEASE SEE THE
MOST RECENT ANNUAL OR SEMIANNUAL REPORT.

The Fund seeks long-term capital growth. It is actively managed. The Fund invests primarily in equity securities and equity-related instruments that the Advisor believes will rise in price faster than other securities, as well as in options and other investments whose values are based upon the values of equity securities.

The Fund normally invests at least 65% of its net assets in common stocks of mid-sized companies. The Fund considers a company to be a mid-capitalization company if it has a market capitalization, at the time of purchase, within the range of the largest and smallest capitalized companies included

in the Russell MidCap_® Index during the most recent 11-month period (based on month-end data) plus the most recent data during the current month. The Russell MidCap_® Index measures the performance of the 800 companies with the lowest market capitalization in the Russell 1000_® Index. The Russell 1000_® Index is a widely recognized, unmanaged index of common stocks of the 1000 largest companies in the Russell 3000_® Index, which measures the performance of the 3000 largest U.S. companies based on total market capitalization. The Fund may invest up to 25% of its assets in securities of non-U.S. issuers. Securities of Canadian issuers and American Depositary Receipts are not subject to this 25% limitation. The Fund also has the flexibility to invest in other types of securities including preferred stocks, convertible securities, and bonds.

At the Advisor, growth investing starts with research from the “bottom up”, and focuses on company fundamentals and growth prospects.

We seek securities for the Fund that meet the following standards:

Exceptional growth: The markets and industries they represent are growing significantly faster than the economy as a whole.

Leadership: They are leaders — or emerging leaders — in these markets, securing their positions through technology, marketing, distribution or some other innovative means.

Financial validation: Their returns — in the form of sales unit growth, rising operating margins, internal funding and other factors — demonstrate exceptional growth and leadership.

At any given time, the Fund may be subject to sector risk. Companies that have similar lines of business (for example, financial services, health or technology) are grouped together in broad categories called sectors. Sector risk is the possibility that a certain sector may underperform other sectors or the market as a whole. The Fund is not limited with respect to sectors in which it can invest. If the portfolio manager allocates more of the Fund’s portfolio holdings to a particular economic sector, the Fund’s overall performance will be more susceptible to the economic, business or other developments which generally affect that sector. The Fund can still be diversified, even if it is heavily weighted in one or more sectors.

Other principle risks of investing in the Fund are market, liquidity, counterparty, foreign securities, and lack of timely information risks. These risks are described and discussed later in the Prospectus under the headings “Investment Risks” and “Principal Risks Associated With The Fund.” An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. As with any other mutual fund, there is always a risk that you may lose money on your investment in the Fund.

LOGO

Fund Performance

The bar chart below shows the Fund’s Institutional Class shares’ actual yearly performance (commonly known as its “total return”) for the years ended December 31 since inception. The table below shows pre-tax and after-tax average annual total returns for various periods ended December 31, 2003.

After-tax returns are provided on a pre-redemption and post-redemption basis. Pre-redemption returns assume you continue to hold your shares and pay taxes on Fund distributions (i.e., dividends and capital gains) but do not reflect taxes that may be incurred upon selling or exchanging shares. Post-redemption returns assume payment of taxes on fund distributions and also that you close your account and pay remaining federal taxes. After-tax returns are calculated using the highest individual federal income tax rates in effect at the time the distribution is paid. State and local taxes are not considered. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. For investors holding their shares in tax-deferred arrangements such as 401(k) plans or individual retirement accounts, the after-tax returns shown are not relevant.

The information in the bar chart and table illustrates the variability of the Fund’s Institutional Class shares’ total return. The table shows the Fund’s performance compared to a broad-based securities market index, a style specific index and a peer group index. The indices may not reflect payment of fees, expenses or taxes. The fund is not managed to track the performance of any particular index, including the indices shown below, and consequently, the performance of the fund may deviate significantly from the performance of the indices shown below. Remember, past performance (before and after taxes) does not indicate how a Fund will perform in the future.

DYNAMICS FUND — INSTITUTIONAL CLASS

ACTUAL ANNUAL TOTAL RETURN^1,2

LOGO

Best Calendar Qtr. 12/01 30.80%
Worst Calendar Qtr. 9/01 (34.91%)


	AVERAGE ANNUAL TOTAL RETURN
(for the period ended December 31, 2003)	1 YEAR		SINCE INCEPTION
Dynamics Fund - Institutional Class¹
Return Before Taxes	38.75	%	(12.49	%)³
Return After Taxes on Distributions	38.75		(12.51	)³
Return After Taxes on Distributions and Sale of Fund Shares	25.19		(10.31	)³
S&P 500 Index⁴ (reflects no deduction for fees, expenses, or taxes)	28.67		(5.19	)³
S&P MidCap 400 Index⁵ (reflects no deduction for fees, expenses, or taxes)	35.62		(6.68	)³
Russell Midcap Growth Index⁶ (reflects no deduction for fees, expenses, or taxes)	42.71		(8.76	)³
Lipper Mid-Cap Growth Fund Index⁷ (reflects no deduction for fees, expenses, or taxes)	35.42		(9.10	)³

¹	Total return figures include reinvested dividends and capital gain distributions and the effect of the Institutional Class expenses.

²	Return before taxes for Institutional Class shares of the Fund year-to-date as of the calendar quarter ended September 30, 2004 was (0.94%).

³	Since inception of Institutional Class shares on May 22, 2000. Index comparison begins on May 31, 2000.

⁴

The Standard and Poor’s 500 Index measures the performance of the 500 most widely held common stocks and is considered one of the best indicators of U.S. stock market performance. The Fund has elected to use the S&P 500 Index as its broad-based index rather than the S&P Mid Cap 400 Index because the Standard & Poor’s 500 Index is a more widely recognized gauge of U.S. stock market performance. The Fund has also included the Russell Midcap Growth Index, which the Fund believes more closely reflects the performance of the types of securities in which the Fund invests. In addition, the Lipper Mid-Cap Growth Fund Index (which may or may not include the Fund) is included for comparison to a peer group.

⁵	The S&P MidCap 400 Index is an unmanaged index indicative of domestic mid-capitalization stocks.

⁶	The Russell Midcap Growth Index is an unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values.

⁷

The Lipper Mid-Cap Growth Fund Index is an equally weighted representation of the 30 largest funds in the Lipper Mid Cap Growth category. These funds typically invest in stocks with market capitalizations between $1 and $5 billion at the time of purchase and have an above-average price-to-earnings ratio, price-to-book ratio, and a three year sales-per-share growth value, compared to the S&P MidCap 400 Index.

Fee Table And Expense Example

This table describes the fees and expenses that you may pay if you buy and hold Institutional Class shares of the Fund.

SHAREHOLDER FEES PAID DIRECTLY FROM YOUR INVESTMENT

You pay no fees to purchase Institutional Class shares of the Fund, to exchange to another AIM Fund, or to sell your shares. Accordingly, no fees are paid directly from your shareholder account.

ANNUAL FUND OPERATING EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS¹


Management Fees		0.49%
Distribution and Service (12b-1) Fees		None
Other Expenses²		0.16%

Total Annual Fund Operating Expenses^3,4		0.65%

¹	There is no guarantee that actual expenses will be the same as those shown in the table.

Effective April 1, 2004 the Board of Trustees approved a revised expense allocation methodology for the Fund. Effective July 1, 2004, the Board of Trustees approved an amendment to the administrative services and transfer agency agreements. Other expenses have been restated to reflect these changes.

The Fund’s Advisor 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 1.65% on Institutional Class shares. 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 caps stated above; (i) interest; (ii) taxes; (iii) dividend expenses on short sales; (iv) extraordinary items (these are expenses that are not anticipated to arise from the Fund’s day-to-day operations), or items designated as such by the Fund’s Board of Trustees; (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, 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, 2005.

⁴

The Fund’s Advisor 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 0.95%. This limitation agreement may be modified or discounted upon consultation with the Board of Trustees without further notice to investors. Further, at the direction of the Trustees of the Trust, AMVESCAP PLC has assumed expenses incurred by the Fund in connection with matters related to recently settled regulatory actions and investigations concerning market timing activity in the AIM and INVESCO Funds.

EXPENSE EXAMPLE

The Example is intended to help you compare the cost of investing in the Institutional Class shares of the Fund to the cost of investing in other mutual funds.

The Example assumes that you invested $10,000 in the Institutional Class shares of the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s Institutional Class shares’ operating expenses remain the same. To the extent fees are waived and/or expenses are reimbursed, your expenses will be lower. Although your actual returns and costs may be higher or lower, based on these assumptions your costs would be:


1 year	3 years	5 years	10 years
$66	$208	$362	$810

LOGO

Investment Risks

BEFORE INVESTING IN THE FUND, YOU SHOULD DETERMINE THE LEVEL OF RISK WITH WHICH YOU ARE COMFORTABLE. TAKE INTO ACCOUNT FACTORS LIKE YOUR AGE, CAREER, INCOME, AND TIME HORIZON.

You should determine the level of risk with which you are comfortable before you invest. The principal risks of investing in any mutual fund, including the Fund, are:

Not Insured. Mutual funds are not insured by the FDIC or any other agency, unlike bank deposits such as CDs or savings accounts.

No Guarantee. No mutual fund can guarantee that it will meet its investment objectives.

Volatility. The price of your mutual fund shares will increase or decrease with changes in the value of the Fund’s underlying investments and changes in the equity markets as a whole.

Not A Complete Investment Plan. An investment in any mutual fund does not constitute a complete investment plan. The Fund is designed to be only a part of your personal investment plan.

LOGO

Principal Risks Associated With The Fund

You should consider the special risk factors discussed below associated with the Fund’s policies in determining the appropriateness of investing in the Fund. See the Statement of Additional Information for a discussion of additional risk factors.

MARKET RISK

Equity stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks selected for the Fund’s portfolio may decline in value more than the overall stock market. In general, the securities of large businesses are less volatile than those of mid-size businesses or small businesses.

LIQUIDITY RISK

The Fund’s portfolio is liquid if the Fund is able to sell the securities it owns at a fair price within a reasonable time. Liquidity is generally related to the market trading volume for a particular security. Investments in smaller companies or in foreign companies or companies in emerging markets are subject to a variety of risks, including potential lack of liquidity.

COUNTERPARTY RISK

FOREIGN SECURITIES RISKS

Investments in foreign and emerging markets carry special risks, including currency, political, regulatory and diplomatic risks.

Currency Risk. A change in the exchange rate between U.S. dollars and a foreign currency may reduce the value of the Fund’s investment in a security valued in the foreign currency, or based on that currency value.

Political Risk. Political actions, events or instability may result in unfavorable changes in the value of a security.

Diplomatic Risk. A change in diplomatic relations between the U.S. and a foreign country could affect the value or liquidity of investments.

LACK OF TIMELY INFORMATION RISK

Timely information about a security or its issuer may be unavailable, incomplete or inaccurate. This risk is more common to securities issued by foreign companies and companies in emerging markets than it is to the securities of U.S.-based companies.

Although the Fund generally invests in publicly traded equity securities of growing companies, the Fund also may invest in other types of securities and other financial instruments indicated in the chart below. Although these investments typically are not part of the Fund’s principal investment strategy, they may constitute a significant portion of the Fund’s portfolio, thereby possibly exposing the Fund and its investors to the following additional risks.


INVESTMENT		RISKS
American Depository Receipts (ADRs)
These are securities issued by U.S. banks that represent shares of foreign corporations held by those banks. Although traded in U.S. securities markets and valued in U.S. dollars, ADRs carry most of the risks of investing directly in foreign securities.		Market, Information, Political, Regulatory, Diplomatic, Liquidity and Currency Risks
Repurchase Agreements
A contract under which the seller of a security agrees to buy it back at an agreed-upon price and time in the future.		Counterparty Risk

LOGO

Temporary Defensive Positions

When securities markets or economic conditions are unfavorable or unsettled, we might try to protect the assets of the Fund by investing in securities that are highly liquid, such as high-quality money market instruments like short-term U.S. government obligations, commercial paper or repurchase agreements, even though that is not the normal investment strategy of the Fund. We have the right to invest up to 100% of the Fund’s assets in these securities, although we are unlikely to do so. Even though the securities purchased for defensive purposes often are considered the equivalent of cash, they also have their own risks. Investments that are highly liquid or comparatively safe tend to offer lower returns. Therefore, the Fund’s performance could be comparatively lower if it concentrates in defensive holdings.

Fund Management

INVESTMENT ADVISOR

AIM AND ADI ARE SUBSIDIARIES OF AMVESCAP PLC, AN INTERNATIONAL INVESTMENT MANAGEMENT COMPANY THAT MANAGES MORE THAN $363 BILLION IN ASSETS WORLDWIDE AS OF SEPTEMBER 30, 2004. AMVESCAP IS BASED IN LONDON, WITH MONEY MANAGERS LOCATED IN EUROPE, NORTH AND SOUTH AMERICA, AND THE FAR EAST.

AIM is the investment advisor for the Fund and is responsible for its day-to-day management. AIM is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. AIM supervises all aspects of the Fund’s operations and provides investment advisory services to the Fund, including obtaining and evaluating economic, statistical and financial information to formulate and implement investment programs for the Fund. AIM has acted as an investment advisor since its organization in 1976. Today, AIM, together with its subsidiaries, advises or manages over 200 investment portfolios, encompassing a broad range of investment objectives.

ADI is the Fund’s distributor and is responsible for the sale of the Fund’s shares.

AIM and ADI are subsidiaries of AMVESCAP PLC.

Prior to November 25, 2003, INVESCO served as the investment advisor for the Fund. The following table shows the fee the Fund paid to AIM or INVESCO for its advisory services in the fiscal year ended July 31, 2004.


FUND		ADVISORY FEE AS A PERCENTAGE OF AVERAGE ANNUAL ASSETS UNDER MANAGEMENT
Dynamics Fund		0.49%

Portfolio Managers

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:

Paul J. Rasplicka (lead manager), Senior Portfolio Manager, who has been responsible for the Fund since 2004 and has been associated with the Advisor and/or its affiliates since 1994.

Michael Chapman, Portfolio Manager, who has been responsible for the Fund since 2004 and has been associated with the Advisor and/or its affiliates since 2001. From 1999 to 2001, he was an equity analyst with Chase Manhattan Bank. During part of 1999, he was a securities analyst with Gulf Investment Management. From 1995 to 1999, he was a portfolio manager with US Global Investors, Inc.

They are assisted by the Mid Cap Growth & GARP (growth at a reasonable price) Teams. More information on the Fund’s management team may be found on our website (http://www.aiminvestments.com/teams). The website is not a part of this prospectus.

Potential Rewards


NO SINGLE FUND SHOULD REPRESENT YOUR COMPLETE INVESTMENT PROGRAM NOR SHOULD YOU ATTEMPT TO USE THE FUND FOR SHORT-TERM TRADING PURPOSES.

SUITABILITY FOR INVESTORS

Only you can determine if an investment in the Fund is right for you based upon your own economic situation, the risk level with which you are comfortable and other factors. Like most mutual funds, the Fund seeks to provide higher returns than the market or its competitors, but cannot guarantee that performance. The Fund seeks to minimize risk by investing in many different companies in a variety of industries. In general, the Fund is most suitable for investors who:

are willing to grow their capital over the long-term (at least five years).

understand that shares of the Fund can, and likely will, have daily price fluctuations.

are investing through tax-deferred retirement accounts, such as Traditional and Roth Individual Retirement Accounts (“IRAs”), as well as employer-sponsored qualified retirement plans, including 401(k)s and 403(b)s, all of which have longer investment horizons.

You probably do not want to invest in the Fund if you are:

primarily seeking current dividend income.

unwilling to accept potentially significant changes in the price of Fund shares.

speculating on short-term fluctuations in the stock markets.

Share Price

CURRENT MARKET VALUE OF FUND ASSETS + ACCRUED INTEREST AND DIVIDENDS

- FUND DEBTS,

INCLUDING ACCRUED EXPENSES

÷ NUMBER OF SHARES

= YOUR SHARE PRICE (NAV)

Determination of Net Asset Value

The price of the Fund’s shares is the Fund’s net asset value per share. The Fund values portfolio securities for which market quotations are readily available at market value. The Fund’s short-term investments are valued at amortized cost when the security has 60 days or less to maturity.

The Fund values all other securities and assets at their fair value. Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day. In addition, if, between the time trading ends on a particular security and the close of the customary trading session of the New York Stock Exchange (“NYSE”), events occur that may materially affect the value of the security, the Fund may value the security at its fair value as determined in good faith by or under the supervision of the Fund’s Board of Trustees. The effect of using fair value pricing is that the Fund’s net asset value will include some security prices that are not exclusively determined by the market. Because the Fund may invest in securities that are primarily listed on foreign exchanges that trade on days when the Fund does not price its shares, the value of the Fund’s assets may change on days when you will not be able to purchase or redeem Fund shares.

The Fund determines the net asset value of its shares on each day the NYSE is open for business, as of the close of the customary trading session, or any earlier NYSE closing time that day. Because the Institutional Class’ expenses vary from other classes of the Fund, NAV is calculated separately for that class.

Timing of Orders

You can purchase, exchange or redeem shares during the hours of the customary trading session of the NYSE. The Fund prices purchase, exchange and redemption orders at the net asset value calculated after the transfer agent receives an order in good order. The Fund may postpone the right of redemption only under unusual circumstances, as allowed by the Securities and Exchange Commission, such as when the NYSE restricts or suspends trading.

Foreign securities exchanges, which set the prices for foreign securities held by the Fund, are not always open the same days as the NYSE, and may be open for business on days the NYSE is not. For example, Thanksgiving Day is a holiday observed by the NYSE and not by overseas exchanges. In this situation, the Fund would not calculate NAV on Thanksgiving Day (and the advisor would not buy, sell, or exchange shares for you on that day), even though activity on foreign exchanges could result in changes in the value of investments held by the Fund on that day.

Tools Used to Combat Excessive Short-Term Trading Activity

While the Fund provides its shareholders with daily liquidity, its investment program is designed to serve long-term investors. Excessive short-term trading activity in the Fund’s shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice versa) may hurt the long-term performance of the Fund by requiring it to maintain an excessive amount of cash or to liquidate portfolio holdings at a disadvantageous time. AIM and its affiliates (collectively, the “AIM Affiliates”) currently use the following tools designed to discourage excessive short-term trading in the retail funds within The AIM Family of Funds_® (the “AIM Funds”):

trade activity monitoring;

trading guidelines;

redemption fee on trades in certain AIM Funds; and

selective use of fair value pricing.

Each of these tools is described in more detail below. Although these tools are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together eliminate the possibility that excessive short-term trading activity in the AIM Funds will occur. Moreover, each of these tools involves judgments that are inherently subjective. The AIM Affiliates seek to make these judgments to the best of their abilities in a manner that they believe is consistent with shareholder interests.

TRADE ACTIVITY MONITORING

TRADING GUIDELINES

If a shareholder exceeds four exchanges out of an AIM Fund (other than AIM Money Market Fund, AIM Tax-Exempt Cash Fund, AIM Limited Maturity Treasury Fund and Premier U.S. Government Money Portfolio) per calendar year, or an AIM Fund or ADI determines, in its sole discretion, that a shareholder’s short-term trading activity is excessive (regardless of whether or not such shareholder exceeds such guidelines), it may, in its discretion, reject any additional purchase and exchange orders. Each AIM Fund and ADI reserves the discretion to accept exchanges in excess of these guidelines on a case-by-case basis if it believes that granting such exceptions would be consistent with the best interests of shareholders. An exchange is the movement out of (redemption) one AIM Fund and into (purchase) of another AIM Fund.

REDEMPTION FEE

Certain shareholders may be charged a 2.00% redemption fee if the shareholders redeem, including redeeming by exchange, Class A, Investor Class or Institutional Class (applicable only to AIM S&P 500 Index Fund) shares of certain funds within 30 days of purchase. The AIM Affiliates expect to charge the redemption fee on other classes of shares when the AIM Funds’ transfer agent system has the capability of processing the fee across these other classes. Please see the section entitled “How to Buy Shares — Redemption Fee” for more information.

The ability of an AIM Fund to assess a redemption fee on the underlying shareholders of omnibus accounts maintained by brokers, retirement plan accounts and approved fee-based program accounts is severely limited in those instances in which the broker, retirement plan administrator or fee-based program sponsor maintains the underlying shareholder account and may be further limited by systems limitations applicable to these types of accounts. Additionally, the AIM Affiliates maintain certain retirement plan accounts on a record keeping system that is currently incapable of processing the redemption fee. The provider of this system is working to enhance the system to facilitate the processing of this fee. These are two reasons why this tool cannot eliminate the possibility of excessive short-term trading activity.

FAIR VALUE PRICING

The trading hours for most foreign securities end prior to the close of the NYSE, the time the AIM Fund’s net asset value is calculated. The occurrence of certain events after the close of foreign markets, but prior to the close of the U.S. market (such as a significant change in the U.S. market) often will result in an adjustment to the trading prices of foreign securities when foreign markets open on the following business day. If such events occur, the AIM Fund may value foreign securities at fair value, taking into account such events, when it calculates its net asset value. Fair value determinations are made in good faith in accordance with procedures adopted by the Board of Trustees of the AIM Fund. The overall pricing methodology and pricing services can change from time to time as approved by the Board of Trustees. Please see the section entitled “Share Price” for more information.

Fair value pricing results in an estimated price and may reduce the possibility that short-term traders could take advantage of potentially “stale” prices of portfolio holdings. However, it cannot eliminate the possibility of excessive short-term trading.

How To Buy Shares

TO BUY SHARES AT THAT DAY’S CLOSING PRICE, YOU MUST CONTACT US BEFORE THE CLOSE OF THE NYSE, NORMALLY, 4:00 P.M. EASTERN TIME.

The Fund offers multiple classes of shares. The chart in this section shows several convenient ways to invest in the Institutional Class shares of the Fund if you invest directly through AIM Investment Services, Inc. (“AIS”).

There is no charge to invest, exchange, or redeem shares when you make transactions directly through AIS. However, if you invest in the Fund through a securities broker or any other third party, you may be charged a commission or transaction fee for purchases of Fund shares.

For all new accounts, please send a completed application form, and specify the Fund or Funds and class or classes of shares you wish to purchase. Purchase orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA Patriot Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be processed. Additionally, Federal law requires that the Fund verify and record your identifying information.

A share of each class represents an identical interest in the Fund and has the same rights, except that each class bears its own distribution and shareholder servicing charges and other expenses. The income attributable to each class and the dividends payable on the shares of each class will be reduced by the amount of the service fee, if applicable, and the other expenses payable by that class.

AIS reserves the right to increase, reduce, or waive the Fund’s minimum investment requirements in its sole discretion, if it determines this action is in the best interests of that Fund’s shareholders. AIS also reserves the right in its sole discretion to reject any order to buy Fund shares, including purchases by exchange. If the Fund determines that you have not provided a correct social security or other tax ID number on your account application, or the Fund is not able to verify your identity as required by law, the Fund may, at its discretion, redeem the account and distribute the proceeds to you.

Please remember that if you pay by check, or wire and your funds do not clear, you will be responsible for any related loss to the Fund or AIS. If you are already an AIM Funds shareholder, the Fund may seek reimbursement for any loss from your existing account(s).


Institutional Investors
Minimum Initial Investment		$10,000,000
Minimum Balance		$5,000,000
Minimum Subsequent Investment		$1,000,000

Retirement Plans or Employee Benefit Plans
Minimum Total Plan Assets		$100,000,000
Minimum Initial Investment		$10,000,000
Minimum Balance		$5,000,000
Minimum Subsequent Investment		$1,000,000

HOW TO PURCHASE SHARES

You may purchase shares using one of the options below. Purchase orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be processed. Additionally, Federal law requires that the fund verify and record your identifying information.

PURCHASE OPTIONS

The following chart shows several ways to invest in the Fund if you invest directly through AIS.


	OPENING AN ACCOUNT	ADDING TO AN ACCOUNT
Through a Financial Consultant	Contact your financial consultant. The financial consultant should mail your completed account application to the transfer agent, AIM Investment Services, Inc., P.O. Box 0843, Houston, TX 77210-0843. The financial consultant should call the transfer agent at (800) 659-1005 to receive a reference number. Then, use the following wire instructions: Beneficiary Bank ABA/Routing #: 113000609 Beneficiary Account Number: 00100366732 Beneficiary Account Name: AIM Investment Services, Inc. RFB: Fund Name, Reference # OBI: Your Name, Account #	Same. These shares are offered only to institutional investors and qualified retirement plans. These shares are not available to retail investors. AIS does not accept cash, credit cards, travelers’ cheques, credit card checks, instant loan checks, money orders, or third party checks unless they are from another financial institution related to a retirement plan transfer.
By Telephone	Open your account as described above.	Call the transfer agent at (800) 659-1005 and wire payment for your purchase order in accordance with the wire instructions noted above.

Exchange Policy. You may generally exchange your shares in the Fund for shares of the same class in another AIM Fund on the basis of their respective NAVs at the time of the exchange.


FUND EXCHANGES CAN BE A CONVENIENT WAY FOR YOU TO DIVERSIFY YOUR INVESTMENTS, OR TO REALLOCATE YOUR INVESTMENTS WHEN YOUR OBJECTIVES CHANGE.		Before making any exchange, be sure to review the prospectuses of the funds involved and consider the differences between the funds. Also, be certain that you qualify to purchase certain classes of shares in the new fund. An exchange is the sale of shares from one fund immediately followed by the purchase of shares in another. Therefore, any gain or loss realized on the exchange is recognizable for federal income tax purposes (unless, of course, you or your account qualifies as tax-deferred under the Internal Revenue Code). If the shares of the fund you are selling have gone up in value since you bought them, the sale portion of an exchange may result in taxable income to you.

We have the following policies governing exchanges:

Both AIM Fund accounts involved in the exchange must be registered in exactly the same name(s) and Social Security or federal tax I.D. number(s).

If you exceed four exchanges out of an AIM Fund (other than AIM Money Market Fund, AIM Tax-Exempt Cash Fund, AIM Limited Maturity Treasury Fund and Premier U.S. Government Money Portfolio) per calendar year, or an AIM Fund or ADI determines, in its sole discretion, that your short-term trading activity is excessive (regardless of whether or not you exceed such guidelines), it may, in its discretion, reject any additional purchase and exchange orders. Each AIM Fund and ADI reserves the discretion to accept exchanges in excess of these guidelines on a case-by-case basis if it believes that granting such exceptions would be consistent with the best interests of shareholders. An exchange is the movement out of (redemption) one AIM Fund and into (purchase) another AIM Fund.

Please see the subsection entitled “Tools Used to Combat Excessive Short-Term Trading Activity-Trading Guidelines” for more information.

Under unusual market conditions, an AIM Fund may delay the purchase of shares being acquired in an exchange for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds. The exchange privilege is not an option or right to purchase shares. Any of the participating AIM Funds or the distributor may modify or terminate this privilege at any time. The AIM Fund or ADI will provide you with notice of such modification or termination whenever it is required to do so by applicable law, but may impose changes at any time for emergency purposes.

In addition, the ability to exchange may be temporarily suspended at any time that sales of the AIM Fund into which you wish to exchange are temporarily stopped.

Redemption Fee. You may be charged a 2.00% redemption fee (on total redemption proceeds) if you redeem, including redeeming by exchange, Class A, Investor Class or Institutional Class (applicable only to AIM S&P 500 Index Fund) shares of the following Funds (either by selling or exchanging to another AIM Fund) within 30 days of their purchase:


AIM Asia Pacific Growth Fund		AIM Global Value Fund
AIM Developing Markets Fund		AIM High Yield Fund
AIM European Growth Fund		AIM International Core Equity Fund
AIM European Small Company Fund		AIM International Emerging Growth Fund
AIM Global Aggressive Growth Fund		AIM International Growth Fund
AIM Global Growth Fund		AIM S&P 500 Index Fund
AIM Global Equity Fund		AIM Trimark Fund

The redemption fee will be paid to the AIM Fund from which you are redeeming shares (including redemptions by exchange), and is intended to offset the trading costs, market impact and other costs associated with short-term money movements in and out of the AIM Fund. The redemption fee is imposed to the extent that the number of AIM Fund shares you redeem exceeds the number of AIM Fund shares that you have held for more than 30 days. In determining whether the minimum 30 days holding period has been met, only the period during which you have held shares of the AIM Fund from which you are redeeming is counted. For this purpose, shares held longest will be treated as being redeemed first and shares held shortest as being redeemed last.

The 2.00% redemption fee will not be charged on transactions involving the following:

total or partial redemptions of shares by omnibus accounts maintained by brokers that do not have the systematic capability to process the redemption fee;

total or partial redemptions of shares by approved fee-based programs that do not have the systematic capability to process the redemption fee;

total or partial redemptions effectuated pursuant to an automatic non-discretionary rebalancing program or a systematic withdrawal plan set up in the AIM Funds;

total or partial redemptions of shares acquired through reinvestment of dividends and other distributions; or

redemptions initiated by an AIM Fund.

are exempt from the redemption fee pursuant to the terms above to modify computer programs to impose the redemption fee or to develop alternate processes to monitor and restrict short-term trading activity in the AIM Funds. Lastly, the provider of AIM’s retirement plan record keeping system is working to enhance the system to facilitate the processing of the redemption fee. Until such computer programs are modified or alternate processes are developed, the AIM Fund’s ability to assess a redemption fee on these types of share classes and accounts is severely limited. These are reasons why this tool cannot eliminate the possibility of excessive short-term trading activity.

The AIM Funds have the discretion to waive the 2.00% redemption fee if a fund is in jeopardy of failing the 90% income test or losing its registered investment company qualification for tax purposes.

Choosing a Share Class. In deciding which class of shares to purchase, you should consider, among other things, (i) the length of time you expect to hold your shares, (ii) the provisions of the distribution plan applicable to the class, if any, (iii) the eligibility requirements that apply to purchases of a particular class, and (iv) any services you may receive in making your investment determination. Institutional Class shares are intended for use by institutions such as employee benefit plans, retirement plan sponsors and banks acting for themselves or in a fiduciary or similar capacity. Institutional Class shares of the Fund are available for the collective and common trust funds of banks, banks investing for their own accounts and banks investing for the accounts of public entities (e.g., Taft-Hartley funds, states, cities or government agencies) that do not pay commissions or distribution fees.

Your Account Services

AIS PROVIDES YOU WITH SERVICES DESIGNED TO MAKE IT SIMPLE FOR YOU TO BUY, SELL, OR EXCHANGE YOUR SHARES OF ANY INVESCO MUTUAL FUND.

Shareholder Accounts. Unless your account is held at a brokerage firm, AIS maintains your share account, which contains your current Fund holdings. The Fund does not issue share certificates.

Quarterly Investment Summaries. Each calendar quarter, you will receive a written statement which consolidates and summarizes account activity and value at the beginning and end of the period for each of your AIM funds.

Transaction Confirmations. You will receive detailed confirmations of individual purchases, exchanges, and sales. If you choose certain recurring transaction plans, your transactions are confirmed on your quarterly Investment Summaries.

Telephone Transactions. You may buy, exchange, and sell Fund shares by telephone, unless you specifically decline these privileges when you fill out the new account Application.

YOU CAN CONDUCT MOST TRANSACTIONS AND CHECK ON YOUR ACCOUNT THROUGH OUR TOLL-FREE TELEPHONE NUMBER. YOU MAY ALSO ACCESS PERSONAL ACCOUNT INFORMATION AT AIM’s WEBSITE, AIMINVESTMENTS.COM.

Unless you decline the telephone transaction privileges, when you fill out and sign the new account Application, a Telephone Transaction Authorization Form, or use your telephone transaction privileges, you lose certain rights if someone gives fraudulent or unauthorized instructions to AIS that result in a loss to you. In general, if AIS has followed reasonable procedures, such as recording telephone instructions and sending written transaction confirmations, AIS is not liable for following telephone instructions that it believes to be genuine. Therefore, you have the risk of loss due to unauthorized or fraudulent instructions.

IRAs and Other Retirement Plans. Shares of any AIM mutual fund may be purchased for IRAs and many other types of tax-deferred retirement plans. Please call AIS for information and forms to establish or transfer your existing retirement plan or account.

How To Sell Shares

The chart in this section shows several convenient ways to sell your Fund shares if you invest directly through AIS. If you invest in the Fund through a securities broker or any other third party, you may be charged a commission or transaction fee for sales of Fund shares. Shares of the Fund may be sold at any time at the next NAV calculated after your request to sell is received by AIS in proper form. Depending on Fund performance, the NAV at the time you sell your shares may be more or less than the price you paid to purchase your shares.


TO SELL SHARES AT THAT DAY’S CLOSING PRICE, YOU MUST CONTACT US BEFORE 4:00 P.M. EASTERN TIME.		If you own shares in more than one Fund, please specify the fund whose shares you wish to sell and specify the class of shares. Remember that any sale or exchange of shares in a non-retirement account will likely result in a taxable gain or loss.

While AIS attempts to process telephone redemptions promptly, there may be times — particularly in periods of severe economic or market disruption — when you may experience delays in redeeming shares by telephone.

AIS usually forwards the proceeds from the sale of fund shares within seven days after we receive your request to sell in proper form. However, payment may be postponed under unusual circumstances — for instance, if normal trading is not taking place on the NYSE, or during an emergency as defined by the Securities and Exchange Commission. If your Fund shares were purchased by a check which has not yet cleared, payment will be made promptly when your purchase check does clear; that can take up to twelve business days.

Although the AIM Funds generally intend to pay redemption proceeds solely in cash, the AIM Funds reserve the right to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind).

HOW TO REDEEM SHARES

Generally, we will not charge you any fees to redeem your shares. Your broker or financial consultant may charge service fees for handling redemption transactions. The following chart shows several ways to sell your Fund shares if you invest directly through AIS.

Through a Financial Consultant

Contact your financial consultant.

Redemption proceeds will be sent in accordance with the wire instructions specified in the account application provided to the transfer agent. The transfer agent must receive your financial intermediary’s call before the close of the customary trading session of the NYSE on days the NYSE is open for business in order to effect the redemption at the day’s closing price.

By Telephone

A person who has been authorized in the account application to effect transactions may make redemptions by telephone. You must call the transfer agent before the close of the customary trading session of the NYSE on days the NYSE is open for business in order to effect the redemption at that day’s closing price.

LOGO

Taxes

TO AVOID BACKUP WITHHOLDING, BE SURE WE HAVE YOUR CORRECT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER.

Everyone’s tax status is unique. We manage the Fund in an effort to provide maximum total return to all shareholders of the Fund. The Advisor generally focuses on pre-tax results and ordinarily does not manage the Fund to minimize taxes. We may, nevertheless, take advantage of opportunities to mitigate taxes through management of capital gain and losses.

We encourage you to consult your own tax adviser on the tax impact to you of investing directly or indirectly in the Fund.

The Fund customarily distributes to its shareholders substantially all of its net investment income, net capital gain and net gain from foreign currency transactions, if any. You receive a proportionate part of these distributions, depending on the percentage of the Fund’s shares that you own. These distributions are required under federal tax laws governing mutual funds. It is the intent of the Fund to distribute all investment company taxable income and net capital gain. As a result of this policy and the Fund’s qualification as a regulated investment company, it is anticipated that the Fund will not pay any federal income or excise taxes.

However, unless you are (or your account is) exempt from income taxes, you must include all dividends and capital gain distributions paid to you by the Fund in your taxable income for federal, state, and local income tax purposes. You also may realize capital gains or losses when you sell shares of the Fund at more or less than the price you originally paid. An exchange is treated as a sale, and is a taxable event. Dividends and other distributions usually are taxable whether you receive them in cash or automatically reinvest them in shares of the Fund or other AIM funds.

If you have not provided AIS with complete, correct tax information, the Fund is required by law to withhold from your distributions, and any money that you receive from the sale of shares of the Fund, a backup withholding tax at the rate in effect on the date of the transaction.

Unless your account is held at a brokerage firm, we will provide you with detailed information every year about your dividends and capital gain distributions. Depending on the activity in your individual account, we may also be able to assist with cost basis figures for shares you sell.

LOGO

Dividends And Capital Gain Distributions

The Fund earns ordinary or investment income primarily from dividends and interest on its investments. The Fund expects to distribute substantially all of this investment income, less Fund expenses, to shareholders annually. The Fund can make distributions at other times, if it chooses to do so.

NET INVESTMENT INCOME AND NET REALIZED CAPITAL GAINS ARE DISTRIBUTED TO SHAREHOLDERS AT LEAST ANNUALLY. DISTRIBUTIONS ARE TAXABLE WHETHER REINVESTED IN ADDITIONAL SHARES OR PAID TO YOU IN CASH (EXCEPT FOR TAX-EXEMPT ACCOUNTS.)

The Fund also realizes capital gains or losses when it sells securities in its portfolio for more or less than it had paid for them. If total gains on sales exceed total losses (including losses carried forward from previous years), the Fund has a net realized capital gain. Net realized capital gain, if any, is distributed to shareholders at least annually, usually in December. Dividends and capital gain distributions are paid to you if you hold shares on the record date of the distribution regardless of how long you have held your shares.

Under present federal income tax laws, capital gains may be taxable at different rates, depending on how long the Fund has held the underlying investment. Short-term capital gains which are derived from the sale of assets held one year or less are taxed as ordinary income. Long-

term capital gains which are derived from the sale of assets held for more than one year are taxed at up to the maximum capital gains rate, currently 15% for individuals.

The Fund’s daily NAV reflects all ordinary income and realized capital gains that have not yet been distributed to shareholders. Therefore, the Fund’s NAV will drop by the amount of a distribution, net of market fluctuations, on the day the distribution is declared. If you buy shares of the Fund just before a distribution is declared, you may wind up “buying a distribution.” This means that if the Fund declares a dividend or capital gain distribution shortly after you buy, you will receive some of your investment back as a taxable distribution. Although purchasing your shares at the resulting higher NAV may mean a smaller capital gain or greater loss upon sale of the shares, most shareholders want to avoid the purchase of shares immediately before the distribution record date. However, keep in mind that your basis in the Fund will be increased to the extent such distributions are reinvested in the Fund. If you sell your shares at a loss for tax purposes and then replace those shares with a substantially identical investment either thirty days before or after that sale, the transaction is usually considered a “wash sale” and you will not be able to claim a tax loss at the time of sale. Instead the loss will be deferred to a later date.

Dividends and capital gain distributions paid by the Fund are automatically reinvested in additional Fund shares at the NAV on the ex-distribution date, unless you choose to have them automatically reinvested in the same share class of another AIM fund or paid to you by check or electronic funds transfer. If you choose to be paid by check, the minimum amount of the check must be at least $10; amounts less than that will be automatically reinvested. Dividends and other distributions, whether received in cash or reinvested in additional Fund shares, are generally subject to federal income tax.

Financial Highlights

The financial highlights table is intended to help you understand the financial performance of the Institutional Class shares of the Fund for the periods of the Fund’s Institutional Class operations. Certain information reflects financial results for a single Institutional Class share of the Fund. The total returns in the table represent the annual percentages that an investor would have earned (or lost) on an investment in the Institutional Class shares of the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the financial statements, is included in the Fund’s annual report. This report is available without charge by contacting AIM Investment Services, Inc. at the address or telephone number on the back cover of this Prospectus.


	INSTITUTIONAL CLASS
	YEAR ENDED JULY 31,												MAY 22, 2000 (DATE SALES COMMENCED) TO JULY 31,
	2004			2003			2002			2001			2000
Net Asset Value — Beginning of Period	$	12.96		$	10.88		$	17.28		$	27.87		$	24.29
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)		(0.04	)^(a)		(0.04	)		(0.08	)^(a)		(0.07	)^(a)		(0.02	)^(a)
Net Gains (Losses) on Securities (Both Realized and Unrealized)		1.50			2.12			(6.30	)		(10.44	)		3.60
Total from Investment Operations		1.46			2.08			(6.38	)		(10.51	)		3.58
Less Distributions from Net Realized Gains		—			—			(0.02	)		(0.08	)		—
Net Asset Value — End of Period	$	14.42		$	12.96		$	10.88		$	17.28		$	27.87


TOTAL RETURN^(b)		11.26	%		19.12	%		(36.95	)%		(37.78	)%		14.74	%

RATIOS/SUPPLEMENTAL DATA
Net Assets — End of Period (000s Omitted)	$	12,987		$	30,788		$	25,133		$	11,622		$	22,989
Ratio of Expenses to Average Net Assets		0.71	%^(c)(d)		0.78	%		0.84	%		0.77	%		0.77	%^(e)
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.30	)%^(c)		(0.34	)%		(0.53	)%		(0.26	)%		(0.22	)%^(e)
Portfolio Turnover Rate^(f)		95	%		91	%		81	%		55	%		75	%

(a)	Calculated using average shares outstanding.

(b)

(c)	Ratios are annualized and based on average daily net assets of $32,156,927.

(d)	After fee waivers and/or expense reimbursements. Ratio of expenses to average net assets prior to fee waivers and/or expense reimbursements was 0.72%.

(e)	Annualized.

(f)	Not annualized for periods less than one year.

Obtaining Additional Information

More information may be obtained free of charge upon request. The Statement of Additional Information (SAI), a current version of which is on file with the Securities and Exchange Commission (SEC), contains more details about the Fund and is incorporated by reference into the prospectus (is legally a part of this prospectus). Annual and semiannual reports to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. Beginning with fiscal periods ending after July 9, 2004, the Fund also files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year on Form N-Q.

If you have questions about this Fund, another fund in The AIM Family of Funds_® or your account, or wish to obtain free copies of the

Fund’s current SAI or annual or semiannual reports, please contact us

You also can review and obtain copies of the Fund’s SAI, financial reports, the Fund’s Forms N-Q and other information at the SEC’s Public Reference Room in Washington, D.C.; on the EDGAR database on the SEC’s internet website (http://www.sec.gov); or, after paying a duplication fee, by sending a letter to the SEC’s Public Reference Room, Washington, D.C. 20549-0102 or by sending an electronic mail request to publicinfo@sec.gov. Please call the SEC at 1-202-942-8090 for information about the Public Reference Room.

AIM Dynamics Fund

SEC 1940 Act file number: 811-1474


By Mail:		AIM Investment Services, Inc. P. O. Box 4739 Houston, TX 77210-4739

By Telephone:		(800) 659-1005

On the Internet:		You can send us a request by e-mail or download prospectuses, annual or semiannual reports via our website: http://www.aiminvestments.com

The Fund’s most recent portfolio holdings, as filed on Form N-Q, are also available at www.aiminvestments.com.


AIMinvestments.com		I-DYN-PRO-2

PROSPECTUS | November 19, 2004

AIM S&P 500 INDEX FUND — INSTITUTIONAL CLASS

A no-load class of shares of a mutual fund designed for investors seeking long-term capital growth.


TABLE OF CONTENTS
Investment Goals, Strategies, And Risks		2
Fund Performance		3
Fee Table And Expense Example		4
Investment Risks		4
Principal Risks Associated With The Fund		5
Temporary Defensive Positions		5
Fund Management		5
Portfolio Managers		6
Potential Rewards		6
Share Price		6
Tools Used to Combat Excessive Short-Term Trading Activity		7
How To Buy Shares		8
Your Account Services		11
How To Sell Shares		12
Taxes		14
Dividends And Capital Gain Distributions		14
Financial Highlights		15
Obtain Additional Information		Back Cover

The AIM Family of Funds, AIM and Design, AIM, AIM Funds, AIM Funds and Design, AIM Investor, AIM Lifetime America, AIM LINK, AIM Institutional Funds, aimfunds.com, La Familia AIM de Fondos, La Familia AIM de Fondos and Design, Invierta con DISCIPLINA, Invest with DISCIPLINE, The AIM College Savings Plan, AIM Solo 401(k), AIM Investments and Design and Your goals. Our solutions. are registered service marks and AIM Bank Connection, AIM Internet Connect, AIM Private Asset Management, AIM Private Asset Management and Design, AIM Stylized and/or Design, AIM Alternative Assets and Design, AIM Investments and myaim.com are service marks of A I M Management Group Inc. AIM Trimark is a service mark of A I M Management Group Inc. and AIM Funds Management Inc.

AIM STOCK FUNDS

LOGO

A I M Advisors, Inc. (“AIM” or the “Advisor”) is the investment advisor for AIM S&P 500 Index Fund (formerly INVESCO S&P 500 Index Fund) (the “Fund”). INVESCO Institutional (N.A.), Inc. (“INVESCO Institutional”) is the sub-advisor for the Fund. On November 25, 2003, a series portfolio of AIM Stock Funds, Inc., a Maryland Corporation (the “Company”), was redomesticated as the Fund, which is a series portfolio of AIM Stock Funds, a Delaware statutory trust. Prior to November 25, 2003, INVESCO Funds Group, Inc. (“INVESCO”) served as the investment advisor for the series portfolio of the Company. INVESCO Institutional is an affiliate of AIM and INVESCO.

This Prospectus contains important information about the Fund’s Institutional Class shares, which are offered only to institutional investors and qualified retirement plans. The Fund also offers one or more additional classes of shares through a separate prospectus. Each of the Fund’s classes has varying expenses, with resulting effects on performance. You can choose the class of shares that is best for you, based on how much you plan to invest and other relevant factors discussed in “How To Buy Shares.” To obtain additional information about other classes of shares, contact A I M Distributors, Inc. (“ADI”) at 1-800-959-4246.

This Prospectus will tell you more about:

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Investment Goals & Strategies

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Potential Investment Risks

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Past Performance

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Investment Goals, Strategies, And Risks

FOR MORE DETAILS ABOUT THE FUND’S CURRENT INVESTMENTS AND MARKET OUTLOOK, PLEASE SEE THE MOST RECENT ANNUAL OR SEMIANNUAL REPORT.

The Fund seeks price performance and income comparable to the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500” or “Index”). The Fund invests in the stocks that make up the Index in the same proportions.

only relationship to the Advisor is the licensing of certain trademarks and trade names of S&P and the Index, which is determined, composed, and calculated by S&P without regard to the Advisor or the Fund.

The Fund is subject to other principal risks such as market, liquidity and counterparty risks. These risks are described and discussed later in the Prospectus under the headings “Investment Risks” and “Principal Risks Associated With The Fund.” An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. As with any mutual fund, there is always a risk that you may lose money on your investment in the Fund.

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Fund Performance

S&P 500 INDEX FUND — INSTITUTIONAL CLASS
ACTUAL ANNUAL TOTAL RETURN^1,2

Best Calendar Qtr. 12/98 21.33%
Worst Calendar Qtr. 9/02 (17.42%)


	AVERAGE ANNUAL TOTAL RETURN
(for the period ended December 31, 2003)	1 YEAR	5 YEARS	SINCE INCEPTION
S&P 500 Index Fund — Institutional Class^1,2
Return Before Taxes	27.82%	(1.29%)	3.89%³
Return After Taxes on Distributions	27.46	(1.91)	3.26³
Return After Taxes on Distributions and Sale of Fund Shares	18.40	(1.41)	3.00³
S&P 500 Index⁴ (reflects no deduction for fees, expenses, or taxes)	28.67	(0.57)	3.79³
Lipper S&P 500 Fund Index⁵ (reflects no deduction for fees, expenses, or taxes)	28.25	(0.88)	3.48³

¹	Total return figures include reinvested dividends and capital gain distributions and the effect of the Institutional Class expenses.

²	Return before taxes for Institutional Class shares of the Fund year-to-date as of the calendar quarter ended September 30, 2004 was 1.23%.

³	Since inception of Institutional Class shares on December 22, 1997. Index comparison begins on December 31, 1997.

⁴	The S&P 500 Index measures the performance of the 500 most widely held common stocks and is considered one of the best indicators of U.S. stock market performance. In addition, the Lipper S&P 500 Fund Index (which may or may not include the fund) is included for comparison to a peer group.

⁵	The Lipper S&P 500 Fund Index is an equally weighted representation of the 30 largest funds within the Lipper S&P 500 category.

Fee Table And Expense Example

This table describes the fees and expenses that you may pay if you buy and hold Institutional Class shares of the Fund.

SHAREHOLDER FEES PAID DIRECTLY FROM YOUR INVESTMENT


Redemption Fee (as a percentage of amount redeemed)		2.00%¹
Exchange Fee		2.00%¹

ANNUAL FUND OPERATING EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS²


Management Fees		0.25%
Distribution and Service (12b-1) Fees		None
Other Expenses³		0.22%

Total Annual Fund Operating Expenses⁴		0.47%

A 2% fee is charged on redemptions or exchanges of Institutional Class shares held 30 days or less.

There is no guarantee that actual expenses will be the same as those shown in the table.

⁴

The Fund’s Advisor 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 below) to 0.35% on Institutional Class shares. 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 caps stated above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary items (these are expenses that are not anticipated to arise from the Fund’s day-to-day operations), or items designated as such by the Fund’s Board of Trustees; (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, 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. This expense limitation agreement may be modified or discontinued upon consultation with the Board of Trustees without further notice to investors. Further, at the direction of the Trustees of the Trust, AMVESCAP PLC has assumed expenses incurred by the Fund in connection with matters related to recently settled regulatory actions and investigations concerning market timing activity in the AIM and INVESCO Funds. Total Annual Fund Operating Expenses restated for those items in Note 3 above and restated for this arrangement was 0.35% for the Institutional Class shares for the year ended July 31, 2004.

EXPENSE EXAMPLE

The Example is intended to help you compare the cost of investing in the Institutional Class shares of the Fund to the cost of investing in other mutual funds.

The Example assumes that you invested $10,000 in the Institutional Class shares of the Fund for the time periods indicated and then redeem all of your shares at the end of those period. The Example also assumes that your investment has a 5% return each year and that the Fund’s Institutional Class shares’ operating expenses remain the same. To the extent fees are waived and/or expenses are reimbursed, your expenses will be lower. Although your actual returns and costs may be higher or lower, based on these assumptions your costs would be:


1 year	3 years		5 years		10 years
$48	$	151	$	263	$	591

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Investment Risks

You should determine the level of risk with which you are comfortable before you invest. The principal risks of investing in any mutual fund, including the Fund, are:

BEFORE INVESTING IN THE FUND, YOU SHOULD DETERMINE THE LEVEL OF RISK WITH WHICH YOU ARE COMFORTABLE. TAKE INTO ACCOUNT FACTORS LIKE YOUR AGE, CAREER, INCOME AND TIME HORIZON.

Not Insured. Mutual funds are not insured by the FDIC or any other agency, unlike bank deposits such as CDs or savings accounts.

No Guarantee. No mutual fund can guarantee that it will meet its investment objectives.

Volatility. The price of your mutual fund shares will increase or decrease with changes in the value of the Fund’s underlying investments and changes in the equity markets as a whole.

Not A Complete Investment Plan. An investment in any mutual fund does not constitute a complete investment plan. The Fund is designed to be only a part of your personal investment plan.

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Principal Risks Associated With The Fund

MARKET RISK

Equity stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks included in the Fund’s portfolio may decline in value more than the overall stock market.

LIQUIDITY RISK

COUNTERPARTY RISK


INVESTMENT		RISK
Repurchase Agreement
A contract under which the seller of a security agrees to buy it back at an agreed-upon price and time in the future.		Counterparty Risk

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Temporary Defensive Positions

Fund Management

INVESTMENT ADVISOR

AIM, INVESCO INSTITUTIONAL AND ADI ARE SUBSIDIARIES OF AMVESCAP PLC, AN INTERNATIONAL INVESTMENT MANAGEMENT COMPANY THAT MANAGES MORE THAN $363 BILLION IN ASSETS WORLDWIDE AS OF SEPTEMBER 30, 2004. AMVESCAP IS BASED IN LONDON, WITH MONEY MANAGERS LOCATED IN EUROPE, NORTH AND SOUTH AMERICA, AND THE FAR EAST

AIM is the investment advisor for the Fund and INVESCO Institutional is the sub-advisor. INVESCO Institutional is an affiliate of AIM. AIM is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. AIM has acted as an investment advisor since its organization in 1976. Today, AIM, together with its subsidiaries, advises or manages over 200 investment portfolios, encompassing a broad range of investment objectives. INVESCO Institutional (N.A.), Inc. — Structured Products Group is located at 1166 Avenue of the Americas, 27th Floor, New York City, NY 10036. As sub-advisor, INVESCO Institutional is responsible for the Fund’s day-to-day management, including the Fund’s investment decisions and the execution of securities transactions with respect to the Fund.

ADI is the Fund’s distributor and is responsible for the sale of the Fund’s shares.

AIM, INVESCO Institutional and ADI are subsidiaries of AMVESCAP PLC.


FUND		ADVISORY FEE AS A PERCENTAGE OF AVERAGE ANNUAL NET ASSETS UNDER MANAGEMENT
S&P 500 Index		0.25%

Portfolio Managers

The individual member(s) of the team who are primarily responsible for the management of the Fund’s portfolio are:

Jeremy S. Lefkowitz, Portfolio Manager, who has been responsible for the Fund since 2003. He is head of INVESCO Structured Products Group’s (“SPG”) Portfolio Management Team, which is responsible for the management of all stock selection, tactical asset allocation, and index portfolios. He has been associated with the Advisor and/or its affiliates since 1982.

He is assisted by SPG’s Portfolio Management Team. More information on the Fund’s management team may be found on our website (http://www.aiminvestments.com/teams). The website is not part of this prospectus.

Potential Rewards


NO SINGLE FUND SHOULD REPRESENT YOUR COMPLETE INVESTMENT PROGRAM NOR SHOULD YOU ATTEMPT TO USE THE FUND FOR SHORT-TERM TRADING PURPOSES.

SUITABILITY FOR INVESTORS

Only you can determine if an investment in the Fund is right for you based upon your own economic situation, the risk level with which you are comfortable and other factors. Like most mutual funds, the Fund seeks price performance and income comparable to the Standard & Poor’s 500 Composite Stock Price Index, but cannot guarantee that performance. The Fund seeks to minimize risk by tracking general stock performance. In general, the Fund is most suitable for investors who:

are willing to grow their capital over the long term (at least five years).

understand that shares of the Fund can, and likely will, have daily price fluctuations.

You probably do not want to invest in the Fund if you are:

primarily seeking current dividend income.

unwilling to accept potentially significant changes in the price of Fund shares.

speculating on short-term fluctuations in the stock markets.

Share Price

CURRENT MARKET VALUE OF FUND ASSETS

+ ACCRUED INTEREST AND DIVIDENDS

- FUND DEBTS.

INCLUDING ACCRUED EXPENSES

÷ NUMBER OF SHARES

= YOUR SHARE PRICE (NAV)

Determination of Net Asset Value

include some security prices that are not exclusively determined by the market. Because the Fund may invest in securities that are primarily listed on foreign exchanges that trade on days when the Fund does not price its shares, the value of the Fund’s assets may change on days when you will not be able to purchase or redeem Fund shares.

Timing of Orders

Tools Used to Combat Excessive Short-Term Trading Activity

trade activity monitoring;

trading guidelines;

redemption fee on trades in certain AIM Funds; and

selective use of fair value pricing.

Each of these tools is described in more detail below. Although these tools are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together eliminate the possibility that excessive short-term trading activity in the AIM Funds will occur. Moreover, each of these tools involves judgments that are inherently subjective. The AIM Affiliates seek to make these judgments to the best of their abilities in a manner that they believe is consistent with shareholder interests.

Trade Activity Monitoring

Trading Guidelines

If a shareholder exceeds four exchanges per calendar year out of an AIM Fund (other than AIM Money Market Fund, AIM Tax-Exempt Cash Fund, AIM Limited Maturity Treasury Fund and Premier U.S. Government Money Portfolio), or an AIM Fund or ADI determines, in its sole discretion, that a shareholder’s short-term trading activity is excessive (regardless of whether or not such shareholder exceeds such guidelines), it may, in its discretion, reject any additional purchase and exchange orders. Each AIM Fund and ADI reserves the discretion to accept exchanges in excess of these guidelines on a case-by-case basis if it believes that granting such exceptions would be consistent with the best interests of shareholders. An exchange is the movement out of (redemption) one AIM Fund and into (purchase) of another AIM Fund.

Redemption Fee

Certain shareholders may be charged a 2.00% redemption fee if the shareholders redeem, including redeeming by exchange, Class A, Investor Class or Institutional Class (applicable only to AIM S&P 500 Index Fund) shares of certain funds within 30 days of purchase. The AIM Affiliates expect to charge the redemption fee on other classes of shares when the AIM Fund’s transfer agent system has the capability of processing the fee across these other classes. Please see the section entitled “How to Buy Shares—Redemption Fee” for more information.

Fair Value Pricing

Fair value pricing results in an estimated price and may reduce the possibility that short-term traders could take advantage of potentially “stale” prices of portfolio holdings. However, it cannot eliminate the possibility of excessive short-term trading.

How To Buy Shares

TO BUY SHARES AT THAT DAY’S CLOSING PRICE, YOU MUST CONTACT US BEFORE THE CLOSE OF THE NYSE, NORMALLY 4:00 P.M. EASTERN TIME.

There is no charge to invest, exchange, or redeem shares when you make transactions directly through AIS. However, upon redemption or exchange of shares held 30 days or less (other than shares acquired through reinvestment of dividends or other distributions), a fee of 2.00% of the current net asset value of the shares being redeemed or exchanged will be assessed and retained

by the Fund for the benefit of the remaining shareholders. If you invest in the Fund through a securities broker or any other third party, you may be charged a commission or transaction fee for purchases of Fund shares.

A share of each class represents an identical interest in the Fund and has the same rights, except that each class bears its own distribution and shareholder servicing charges and other expenses. The income attributable to each class and the dividends payable on the shares of each class will be reduced by the amount of the distribution or service fee, if applicable, and the other expenses payable by that class.

any order to buy Fund shares, including purchases by exchange. If a Fund determines that you have not provided a correct social security or other tax ID number on your account application, or the Fund is not able to verify your identity as required by law, the Fund may, at its discretion, redeem the account and distribute the proceeds to you.

Please remember that if you pay by check or wire and your funds do not clear, you will be responsible for any related loss to the Fund or AIS. If you are already an AIM Funds shareholder, the Fund may seek reimbursement for any loss from your existing account(s).


Institutional Investors:
Minimum Initial Investment		$10,000,000
Minimum Balance		$5,000,000
Minimum Subsequent Investment		$1,000,000

Retirement Plans or Employee Benefit Plans:
Minimum Total Plan Assets		$100,000,000
Minimum Initial Investment		$10,000,000
Minimum Balance		$5,000,000
Minimum Subsequent Investment		$1,000,000

HOW TO PURCHASE SHARES

You may purchase shares using one of the options below. Purchase orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be processed. Additionally, Federal law requires that the fund verify and record your identifying information.

PURCHASE OPTIONS

The following chart shows several ways to invest in the Fund if you invest directly through AIS.


	OPENING AN ACCOUNT	ADDING TO AN ACCOUNT
Through a Financial Consultant	Contact your financial consultant. The financial consultant should mail your completed account application to the transfer agent, AIM Investment Services, Inc., P.O. Box 0843, Houston, TX 77210-0843. The financial consultant should call the transfer agent at (800) 659-1005 to receive a reference number. Then, use the following wire instructions: Beneficiary Bank ABA/Routing #: 113000609 Beneficiary Account Number: 00100366732 Beneficiary Account Name: AIM Investment Services, Inc. RFB: Fund Name, Reference # OBI: Your Name, Account #	Same. These shares are offered only to institutional investors and qualified retirement plans. These shares are not available to retail investors. AIS does not accept cash, credit cards, travelers’ cheques, credit card checks, instant loan checks, money orders, or third party checks unless they are from another financial institution related to a retirement plan transfer.
By Telephone	Open your account as described above.	Call the transfer agent at (800) 659-1005 and wire payment for your purchase order in accordance with the wire instructions noted above.

Exchange Policy. You may generally exchange your shares in the Fund for shares of the same class in another AIM fund on the basis of their respective NAVs at the time of the exchange.


FUND EXCHANGES CAN BE A CONVENIENT WAY FOR YOU TO DIVERSIFY YOUR INVESTMENTS, OR TO REALLOCATE YOUR INVESTMENTS WHEN YOUR OBJECTIVES CHANGE.		Before making any exchange, be sure to review the prospectuses of the funds involved and consider the differences between the funds. Also, be certain that you qualify to purchase certain classes of shares in the new fund. An exchange is the sale of shares from one fund immediately followed by the purchase of shares in another. Therefore, any gain or loss realized on the exchange is recognizable for federal income tax purposes (unless, of course, you or your account qualifies as tax-deferred under the Internal Revenue Code). If the shares of the fund you are selling have gone up in value since you bought them, the sale portion of an exchange may result in taxable income to you.

We have the following policies governing exchanges:

AIM Fund accounts involved in the exchange must be registered in exactly the same name(s) and Social Security or federal tax I.D. number(s).

Please see the subsection entitled “Tools Used to Combat Excessive Short-Term Trading Activity-Trading Guidelines” for more information.

In addition, the ability to exchange may be temporarily suspended at any time that sales of the AIM Fund into which you wish to exchange are temporarily stopped.

Redemption Fees (S&P 500 Index Fund Only). You may be charged a 2.00% redemption fee (on total redemption proceeds) if you redeem, including redeeming by exchange, Class A, Investor Class or Institutional Class (applicable only to AIM S&P 500 Index Fund) shares of the following Funds (either by selling or exchanging to another AIM Fund) within 30 days of their purchase:

AIM Asia Pacific Growth Fund

AIM Developing Markets Fund

AIM European Growth Fund

AIM European Small Company Fund

AIM Global Aggressive Growth Fund

AIM Global Growth Fund

AIM Global Equity Fund

AIM Global Value Fund

AIM High Yield Fund

AIM International Core Equity Fund

AIM International Emerging Growth Fund

AIM International Growth Fund

AIM S&P 500 Index Fund

AIM Trimark Fund

The redemption fee will be retained by the AIM Fund from which you are redeeming shares (including redemptions by exchange), and is intended to offset the trading costs, market impact and other costs associated with short-term money movements in and out of the AIM Fund. The redemption fee is imposed to the extent that the number of AIM Fund shares you redeem exceeds the number of AIM Fund shares that you have held for more than 30 days. In determining whether the minimum 30 days holding period has been met, only the period during which you have held shares of the AIM Fund from which you are redeeming is counted. For this purpose, shares held longest will be treated as being redeemed first and shares held shortest as being redeemed last.

The 2.00% redemption fee will not be charged on transactions involving the following:

total or partial redemptions of shares by omnibus accounts maintained by brokers that do not have the systematic capability to process the redemption fee;

total or partial redemptions of shares by approved fee-based programs that do not have the systematic capability to process the redemption fee;

total or partial redemptions effectuated pursuant to an automatic non-discretionary rebalancing program or a systematic withdrawal plan set up in the AIM Funds;

5)_

total or partial redemptions of shares acquired through reinvestment of dividends and other distributions; or

redemptions initiated by an AIM Fund.

The AIM Affiliates’ goal is to apply the redemption fee on all classes of shares regardless of the type of account in which such shares are held. This goal is not immediately achievable because of systems limitations and marketplace resistance. Currently, the redemption fee may be applied on Class A, Investor Class or Institutional Class (applicable only to AIM S&P 500 Index Fund) shares. AIM expects to charge the redemption fee on all other classes of shares when the AIM Fund’s transfer agent system has the capability of processing the fee across these other classes. In addition, AIM intends to develop a plan to encourage brokers that maintain omnibus accounts, sponsors of fee-based program accounts and retirement plan administrators for accounts that are exempt from the redemption fee pursuant to the terms above to modify computer programs to impose the redemption fee or to develop alternate processes to monitor and restrict short-term trading activity in the AIM Funds. Lastly, the provider of AIM’s retirement plan record keeping system is working to enhance the system to facilitate the processing of the redemption fee. Until such computer programs are modified or alternate processes are developed, the AIM Fund’s ability to assess a redemption fee on these types of share classes and accounts is severely limited. These are reasons why this tool cannot eliminate the possibility of excessive short-term trading activity.

The AIM Funds have the discretion to waive the 2.00% redemption fee if a fund is in jeopardy of failing the 90% income test or losing its registered investment company qualification for tax purposes.

Choosing a Share Class. In deciding which class of shares to purchase, you should consider, among other things, (i) the length of time you expect to hold your shares, (ii) the provisions of the distribution plan applicable to the class, if any, (iii) the eligibility requirements that apply to purchases of a particular class, and (iv) any services you may receive in making your investment determination. Institutional Class shares are intended for use by institutions such as employee benefit plans, retirement plan sponsors and banks acting for themselves or in a fiduciary or similar capacity. Institutional Class shares of the Fund are available for the collective and common trust funds of banks, banks investing for their own accounts and banks investing for the accounts of public entities (e.g., Taft-Hartley funds, states, cities, or government agencies) that do not pay commissions or distribution fees.

Your Account Services

Shareholder Accounts. Unless your account is held at a brokerage firm, AIS maintains your share account, which contains your current Fund holdings. The Fund does not issue share certificates.

AIS PROVIDES YOU WITH SERVICES DESIGNED TO MAKE IT SIMPLE FOR YOU TO BUY, SELL, OR EXCHANGE YOUR SHARES OF ANY AIM MUTUAL FUND.

Quarterly Investment Summaries. Each calendar quarter, you receive a written statement which consolidates and summarizes account activity and value at the beginning and end of the period for each of your AIM funds.

Transaction Confirmations. You receive detailed confirmations of individual purchases, exchanges, and sales. If you choose certain recurring transaction plans, your transactions are confirmed on your quarterly Investment Summaries.

Telephone Transactions. You may buy, exchange, and sell Fund shares by telephone, unless you specifically decline these privileges when you fill out your new account Application.


YOU CAN CONDUCT MOST TRANSACTIONS AND CHECK ON YOUR ACCOUNT THROUGH OUR TOLL-FREE TELEPHONE NUMBER. YOU MAY ALSO ACCESS PERSONAL ACCOUNT INFORMATION AT AIM’S WEB SITE, AIMINVESTMENTS.COM.		Unless you decline the telephone transaction privileges, when you fill out and sign the new account Application, a Telephone Transaction Authorization Form, or use your telephone transaction privileges, you lose certain rights if someone gives fraudulent or unauthorized instructions to AIS that result in a loss to you. In general, if AIS has followed reasonable procedures, such as recording telephone instructions and sending written transaction confirmations, AIS is not liable for following telephone instructions that it believes to be genuine. Therefore, you have the risk of loss due to unauthorized or fraudulent instructions.

How To Sell Shares

TO SELL SHARES AT THAT DAY’S CLOSING PRICE, YOU MUST CONTACT US BEFORE 4:00 P.M. EASTERN TIME

If you own shares in more than one Fund, please specify the fund whose shares you wish to sell and specify the class of shares. Remember that any sale or exchange of shares in a non-retirement account will likely result in a taxable gain or loss.

HOW TO REDEEM SHARES

Through a Financial Consultant

Contact your financial consultant.

By Telephone

Taxes

Everyone’s tax status is unique. We manage the Fund in an effort to provide maximum total returns to all shareholders of the Fund. We generally focus on pre-tax results and ordinarily do not manage the Fund to minimize taxes.

We may, nevertheless, take advantage of opportunities to mitigate taxes through management of capital gains and losses. We encourage you to consult your own tax adviser on the tax impact to you of investing directly or indirectly in the Fund.


TO AVOID BACKUP WITHHOLDING, BE SURE WE HAVE YOUR CORRECT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER.		The Fund customarily distributes to its shareholders substantially all of its net investment income, net capital gain and net gain from foreign currency transactions, if any. You receive a proportionate part of these distributions, depending on the percentage of the Fund’s shares that you own. These distributions are required under federal tax laws governing mutual funds. It is the intent of the Fund to distribute all investment company taxable

income and net capital gain. As a result of this policy and the Fund’s qualification as a regulated investment company, it is anticipated that the Fund will not pay any federal income or excise taxes.

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Dividends And Capital Gain Distributions

The Fund earns ordinary or investment income primarily from dividends and interest on its investments. The Fund expects to distribute substantially all of this investment income, less Fund expenses, to shareholders quarterly. The Fund can make distributions at other times, if it chooses to do so.

term capital gains which are derived from the sale of assets held for more than one year are taxed at up to the maximum capital gains rate, currently 15% for individuals.

Dividends and capital gain distributions paid by the Fund are automatically reinvested in additional Fund shares at the NAV on the ex-distribution date, unless you choose to have them automatically reinvested in the same share class of another AIM Fund or paid to you by check or electronic funds transfer. If you choose to be paid by check, the minimum amount of the check must be at least $10; amounts less than that will be automatically reinvested. Dividends and other distributions, whether received in cash or reinvested in additional Fund shares, are generally subject to federal income tax.

Financial Highlights

The financial highlights table is intended to help you understand the financial performance of the Institutional Class shares of the Fund for the past five fiscal years of the Fund’s Institutional Class operations. Certain information reflects financial results for a single Institutional Class share of the Fund share. The total returns in the table represent the annual percentages that an investor would have earned (or lost) on an investment in Institutional Class shares of the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the financial statements, is included in the Fund’s annual report. This report is available without charge by contacting AIM Investment Services, Inc. at the address or telephone number on the back cover of this Prospectus.


	YEAR ENDED JULY 31,
	2004			2003			2002			2001			2000
INSTITUTIONAL CLASS
Net Asset Value — Beginning of Period	$	9.97		$	9.23		$	12.45		$	15.07		$	14.21
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income		0.13			0.13	^(a)		0.08			0.19	^(a)		0.15
Net Gains (Losses) on Securities (Both Realized and Unrealized)		1.14			0.78			(3.11	)		(2.44	)		1.05
Total from Investment Operations		1.27			0.91			(3.03	)		(2.25	)		1.20
Less Distributions:
Dividends From Net Investment Income		(0.13	)		(0.17	)		(0.19	)		(0.18	)		—
Distributions From Net Realized Gains		—			—			—			(0.19	)		(0.34	)
Total Distributions		(0.13	)		(0.17	)		(0.19	)		(0.37	)		(0.34	)
Redemption Fees Added to Shares of Beneficial Interest		0.00			0.00			0.00			0.00			0.00
Net Asset Value — End of Period	$	11.11		$	9.97		$	9.23		$	12.45		$	15.07


TOTAL RETURN^(b)		12.77%			9.98%			(24.50)%			(15.09)%			8.47%

RATIOS/SUPPLEMENTAL DATA:
Net Assets — End of Period ($000s Omitted)	$	5,325		$	4,239		$	338		$	544		$	2,627
Ratio of Expenses to Average Net Assets:
With Fee Waivers and Expense Reimbursements		0.35%	^(c)		0.35%			0.35%			0.35%			0.36%
Without Fee Waivers and Expense Reimbursements		0.67%	^(c)		2.18%			7.36%			1.84%			1.00%
Ratio of Net Investment Income to Average Net Assets		1.29%	^(c)		1.35%			1.15%			1.03%			1.00%
Portfolio Turnover Rate		2%			1%			3%