AIM Eastern Europe Fund to Merge Into AIM Developing Markets Fund.HOUSTON--(BUSINESS WIRE)--May 14, 1999-- A I M Advisors, Inc. (AIM), announced that the Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. of AIM Eastern Europe Fund, a closed-end fund Closed-end fund An investment company that issues shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Related: Open-end fund. (NYSE NYSE See: New York Stock Exchange :GTF GTF glucose tolerance factor. ), voted today in favor of the acquisition of GTF's assets by AIM Developing Markets Fund, an open-end fund Open-End Fund A mutual fund that continues to sell shares to investors, and will buy back shares when investors wish to sell. Notes: Open-end funds have no limit to the number of shares they can issue. The majority of mutual funds are open end. . The Board of Directors of AIM Developing Markets Fund also has approved the acquisition. AIM is a subsidiary of independent global investment manager AMVESCAP PLC (NYSE:AVZ). The acquisition is expected to be completed in the third quarter of this year, pending approval by GTF shareholders, and satisfaction of certain other conditions. GTF, which has net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of approximately $48 million, seeks long-term capital appreciation. It invests in a broad range of securities of European issuers, emphasizing those in emerging markets. AIM Developing Markets Fund, which has net assets of approximately $198 million, primarily seeks long-term capital appreciation by investing in issuers in the emerging markets of Europe, Asia, Latin America and elsewhere. The secondary objective of AIM Developing Markets Fund is income, to the extent consistent with seeking capital appreciation. AIM President and Chief Executive Officer Robert H. Graham said the acquisition was approved in the best interests of shareholders of both funds. The transaction is expected to be tax-free to the funds and to their shareholders. As a result of the acquisition, shareholders of GTF will receive, in exchange for their GTF shares, Class A shares of AIM Developing Markets Fund in an amount equal to the net asset value of their GTF shares on the closing date. The shareholders then will have the ability to exchange their shares of AIM Developing Markets Fund among the funds in The AIM Family of Funds Family of Funds A group of mutual funds offered by one investment or fund company. Each mutual fund has different characteristics and can range depending on investment objective. Also referred to as a "Mutual Fund Family" or simply a "Fund Family". (R) without any sales charge Sales Charge A commission or fee paid by an investor at the time of purchasing mutual fund shares. The charge is paid to a mutual fund salesperson or financial advisor and is intended to provide compensation for the financial salesperson's efforts in assisting their client select , subject to a small redemption fee during the first year following the transaction. As shareholders of AIM Developing Markets Fund, they will be able to redeem their holdings with no charge or discount, subject to the one-year redemption fee. "The acquisition will allow the shares of AIM Eastern Europe Fund, which have been trading at a discount, to reflect true portfolio value," Mr. Graham said. AIM was founded in 1976 and ranks as the nation's 10th-largest mutual fund complex with approximately $112 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and 6.3 million shareholders as of March 31, 1999. AIM is subsidiary of AMVESCAP PLC, one of the world's largest independent investment services companies with $280 billion in assets under management as of March 31, 1999. Note to editors -- We are required to include the following information with our news release: For more complete information about any AIM Fund, including sales charges and expenses, please obtain the appropriate prospectus(es) from your financial consultant or by calling 800/347-4246. Please read the prospectus carefully before you invest or send money. A I M Distributors, Inc., Distributor. |
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