AIM Investments(R) Announces Launch of Two Allocation Funds; AIM Summit Fund Now Available to All Investors.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- AIM Investments announced today the launch of AIM International Allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as Fund and AIM Income Allocation Fund. Also effective today, AIM is establishing additional share classes of AIM Summit Fund, which was formerly available only through limited distribution. AIM International Allocation Fund and AIM Income Allocation Fund are fund of funds Fund of Funds A mutual fund that invests in other mutual funds. Notes: For example, an investor would select a general risk profile and the fund-of-funds manager would pick underlying investments from a range of products managed by external managers. , which means they invest their assets in other underlying mutual funds advised by A I M Advisors, Inc. AIM International Allocation Fund offers investors convenient entry into international markets through a single, broadly diversified diversified (di·verˑ·s portfolio that has the flexibility to invest across investment styles, market capitalizations Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. , sectors and countries, both emerging and developed. The resulting portfolio blends five unique, complementary and established funds - AIM International Core Equity Fund, AIM International Growth Fund, AIM Global Value Fund, AIM International Small Company Fund, and AIM Developing Markets Fund - to create a versatile, core holding that provides broad international diversification International diversification The attempt to reduce risk by investing in more than one nation. By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns. . The underlying funds are managed by more than 30 seasoned portfolio managers and analysts with a wealth of international investment experience. AIM Income Allocation Fund offers investors a single, broadly diversified portfolio that has the flexibility to invest across multiple asset categories, including a mix of bond, stock, and real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) funds, seeking opportunity for income, growth and mitigation MITIGATION. To make less rigorous or penal. 2. Crimes are frequently committed under circumstances which are not justifiable nor excusable, yet they show that the offender has been greatly tempted; as, for example, when a starving man steals bread to satisfy of volatility. The resulting portfolio consists of nine underlying income and dividend-paying funds - AIM High Yield Fund, AIM Income Fund, AIM Intermediate Government Fund, AIM Total Return Bond Fund, AIM Diversified Dividend Fund, AIM International Core Equity Fund, AIM Utilities Fund, AIM Real Estate Fund, and AIM Short Term Bond Fund - with income and dividends paid on a quarterly basis. The fund reflects AIM's well-established and extensive experience in income and dividend-oriented products, as the nine underlying funds are managed by more than 50 veteran portfolio managers and analysts. Each fund offers annual rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting , which resets the funds to their original target allocations In air defense, the process, following weapon assignment, of allocating a particular target or area to a specific surface-to-air missile unit or interceptor aircraft. to help them maintain the appropriately diversified mix. AIM Summit Fund Adds Three Share Classes AIM Summit Fund now offers Class A, B and C shares through a broadly diversified fund Diversified Fund A type of investment fund that contains a wide array of securities and is adequately diversified. A mutual fund classified as a "diversified fund" will actively maintain a high level of diversification in its holdings, thus reducing the amount of risk in the fund, that provides exposure across all market caps and sectors, and more than a 20-year track record. AIM Summit Fund seeks to produce consistent returns over the long term by investing in a portfolio that can be described as conservative growth - a potentially less volatile way to invest for growth, with greater focus on valuation and risk management. Important Risk Information about AIM International Allocation Fund The advisor may change the fund's asset class allocations, the underlying funds or the target weightings in the underlying funds at its discretion. --Investing in funds that invest internationally presents certain risks not associated with investing solely in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . These include, for instance, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc fluctuations in the value of the U.S. dollar relative to the value of other currencies, the custody arrangements made for the fund's foreign holdings, political and economic risks, differences in accounting procedures, the lesser degree for public information required to be provided by non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. companies, and relatively low market liquidity. --Investors will bear not just their share of the fund's operational expenses, but also, indirectly, the operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of the underlying funds. --The advisor has the ability to select and substitute the underlying funds in which the fund invests, and may be subject to potential conflicts of interest in selecting underlying funds because it may receive higher fees from certain underlying funds than others. However, as a fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. to the fund, the advisor is required to act in the fund's best interest when selecting the underlying funds. --There is a risk that the advisor's evaluations and assumptions regarding the funds' broad asset classes or the underlying funds in which the funds invest may be incorrect based on actual market conditions. There is a risk that the fund will vary from the target weightings in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will achieve their investment objectives, and the performance of the underlying funds may be lower than the asset class which they were selected to represent. The underlying funds may change their investment objectives or policies without the approval of the funds. If that were to occur, the funds might be forced to withdraw their investments from the underlying funds at a time that is unfavorable to the funds. --Rising interest rates will affect the performance of the funds' investments in fixed-income mutual funds. --Investing in a fund that invests in micro, small and mid-sized companies involves risks not associated with investing in more established companies, such as business risk, stock price fluctuations and illiquidity. --Investing in funds that invest in higher-yielding, lower-rated debt securities (commonly known as "junk bonds junk bond, a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history. ") has a greater risk of price fluctuation FluctuationA price or interest rate change. and loss of principal and income than U.S. government securities, such as U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. bills, notes and bonds. Treasuries are guaranteed by the government for repayment of principal and interest if held to maturity. Fund shares are not insured, and their value and yield will vary with market conditions. Investors should carefully assess the risk associated with an investment in the fund. --Investing in emerging markets involves greater risk and potential reward than investing in more established markets. --An underlying fund may participate in the initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) market in some market cycles. If the underlying fund has a small asset base, any investment the underlying fund may make in IPOs may significantly affect the underlying fund's total return. As the underlying fund's assets grow, the impact of IPO investments will decline, which may reduce the effect of IPO investments on that fund's total return. --By concentrating on a small number of holdings, the fund carries greater risk because each investment has a greater effect on the fund's overall performance. --Some of the underlying funds may be non-diversified, which increases risk as well as potential reward. Important Risk Information about AIM Income Allocation Fund The advisor may change the fund's asset class allocations, the underlying funds or the target weightings in the underlying funds at its discretion. --Investing in funds that invest internationally presents certain risks not associated with investing solely in the United States. These include, for instance, risks relating to fluctuations in the value of the U.S. dollar relative to the value of other currencies, the custody arrangements made for the fund's foreign holdings, political and economic risks, differences in accounting procedures, the lesser degree for public information required to be provided by non-U.S. companies, and relatively low market liquidity. --Investors will bear not just their share of the fund's operational expenses, but also, indirectly, the operating expenses of the underlying funds. --The advisor has the ability to select and substitute the underlying funds in which the fund invests, and may be subject to potential conflicts of interest in selecting underlying funds because it may receive higher fees from certain underlying funds than others. However, as a fiduciary to the fund, the advisor is required to act in the fund's best interest when selecting the underlying funds. --There is a risk that the advisor's evaluations and assumptions regarding the funds' broad asset classes or the underlying funds in which the funds invest may be incorrect based on actual market conditions. There is a risk that the fund will vary from the target weightings in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will achieve their investment objectives, and the performance of the underlying funds may be lower than the asset class which they were selected to represent. The underlying funds may change their investment objectives or policies without the approval of the funds. If that were to occur, the funds might be forced to withdraw their investments from the underlying funds at a time that is unfavorable to the funds. --Rising interest rates will affect the performance of the funds' investments in fixed-income mutual funds. --Investing in a fund that invests in micro, small and mid-sized companies involves risks not associated with investing in more established companies, such as business risk, stock price fluctuations and illiquidity. --Investing in funds that invest in higher-yielding, lower-rated debt securities (commonly known as "junk bonds") has a greater risk of price fluctuation and loss of principal and income than U.S. government securities, such as U.S. Treasury bills, notes and bonds. Treasuries are guaranteed by the government for repayment of principal and interest if held to maturity. Fund shares are not insured, and their value and yield will vary with market conditions. Investors should carefully assess the risk associated with an investment in the fund. --The fund invests in securities issued or backed by the U.S. government, its agencies or instrumentalities. They offer a high degree of safety and, in the case of government securities, are guaranteed as to timely payment of principal and interest if held to maturity. Fund shares are not insured, and their value and yield will vary with market conditions. --Some of the underlying funds may invest in mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. , which may lose value if mortgages are prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. in response to falling interest rates. --The funds may invest in funds that invest in real estate investment trusts (REITs) that present risks not associated with investing in stocks. --An underlying fund may participate in the initial public offering (IPO) market in some market cycles. If the underlying fund has a small asset base, any investment the underlying fund may make in IPOs may significantly affect the underlying fund's total return. As the underlying fund's assets grow, the impact of IPO investments will decline, which may reduce the effect of IPO investments on that fund's total return. --The fund invests in a fund that invests in synthetic instruments A synthetic instrument is a term in test and measurement science or metrology. A Synthetic Instrument is software that runs on a Synthetic Measurement System to perform a specific synthesis, analysis, or measurement function. , the value of which may not correlate perfectly with the overall securities market. Some synthetic instruments are more sensitive to interest rate changes and market price fluctuations than others. Important Risk Information about AIM Summit Fund The fund can invest up to 20% of its assets in foreign securities that involve risks not associated with investing solely in the United States. --The fund may engage in active and frequent trading of portfolio securities, which may result in increased transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). and lower actual returns. Active trading may also increase short-term gains Short-term gain (or loss) A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive. and losses, which may affect the taxes an investor will pay. --Investing in small and mid-sized companies involves greater risk not associated with investing in more established companies. Additionally, small companies have business risk, significant stock price fluctuations and illiquidity. About AIM Investments Houston-based AIM Investments represents one of the nation's leading investment management companies. It is dedicated to building solutions for its clients with exceptional products and services through multiple investment management styles and a broad range of investment portfolios - mutual funds, retirement products, separately managed accounts for high-net-worth and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , annuities, cash management, college savings plans, and offshore products. Founded in 1976, AIM Investments had $129 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. as of Sept. 30, 2005. For more information, visit www.aiminvestments.com. AIM Investments is a service mark of A I M Management Group Inc. A I M Advisors, Inc., A I M Capital Management, Inc., and AIM Private Asset Management, Inc., are the investment advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and for the products and services represented by AIM Investments. A I M Distributors, Inc. is the distributor for the retail mutual funds and Fund Management Company is the distributor for the institutional money market funds represented by AIM Investments. About AMVESCAP A I M Management Group Inc. is a subsidiary of AMVESCAP PLC, a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM, INVESCO and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of retail and institutional products for clients around the world. The Company, which had approximately $381 billion in assets under management as of Sept. 30, 2005, is listed on the London, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. with the symbol "AVZ." Additional information is available at www.amvescap.com. Note to editors--We are required to include the following information with our news release: Consider the investment objectives, risks, and charges and expenses carefully before investing. For this and other important information about any AIM fund, please obtain a prospectus from your financial advisor and read it carefully before investing. A I M Distributors, Inc. |
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