The AIM College Savings Plan - Invesco

The AIM College Savings Plan˛

Enrollment Handbook m June 2, 2008

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Invesco Aim Privacy PolicyWe are always aware that when you invest with Invesco Aim, you entrust us with more than

your money.

You also share personal and financial information with us that is necessary for your

transactions and your account records. We take very seriously the obligation to keep that

information confidential and private.

Invesco Aim collects nonpublic personal information about you from account applications or

other forms you complete and from your transactions with us or our affiliates. We do not

disclose information about you, or our former customers, to service providers or other third

parties except to the extent necessary to service your account and in other limited

circumstances as permitted by law. For example, we use this information to facilitate the

delivery of transaction confirmations, financial reports, prospectuses and tax forms.

Even within Invesco Aim, only people involved in the servicing of your accounts and

compliance monitoring have access to your information.

To ensure the highest level of confidentiality and security, Invesco Aim maintains physical,

electronic and procedural safeguards that meet or exceed federal standards. Special

measures, such as data encryption and authentication, apply to your communications with us

on our Web site — http://www.invescoaim.com. More detail is available to you at that site.

THIS PAGE IS NOT PART OF THE ENROLLMENT HANDBOOK

The AIM Family of Funds˛ ) AIM Institutional Funds˛ ) Invesco Aim Advisors, Inc. ) Invesco Aim Capital Management, Inc. ) Invesco Aim Distributors, Inc.

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529NE-FEE-1 07/09

THE AIM COLLEGE SAVINGS PLAN® ENROLLMENT HANDBOOK

Supplement dated July 1, 2009 to the Enrollment Handbook dated June 2, 2008

The following tables for Class A Shares, Class B Shares, and Class C Shares replace the current tables under the heading “PLAN FEES AND EXPENSES”: Fees and Expenses Associated with an Investment in Class A Shares The following table sets forth the estimated fees and expenses that will be borne directly and indirectly by your account. The actual expenses of each portfolio may be different. The fees and expenses of the plan are subject to change at any time. Annual Asset-Based Fees and Expenses1 Additional Expenses Admin. Acquired Maximum Admin. Service (Underlying) Total Initial Annual Service Fee State and Fund Annual Sales Account Portfolio Fee Waiver2 Other Fees3 Expenses4 Fees Charge5 Fee6

Allocation Portfolios AIM Growth Allocation Fund 529 Portfolio 0.35% — — 1.26% 1.61% 5.50% $25 AIM Moderate Growth Allocation Fund 529 Portfolio 0.35 — — 1.14 1.49 5.50 25 AIM Moderate Allocation Fund 529 Portfolio 0.35 — — 1.12 1.47 5.50 25 AIM Moderately Conservative Allocation Fund 529 Portfolio 0.35 — — 1.08 1.43 5.50 25 AIM Conservative Allocation Fund 529 Portfolio 0.35 0.08% — 1.08 1.35 5.50 25 Enrollment-Based Portfolios 13+ Years to College Portfolio 0.35 — — 1.26 1.61 5.50 25 7-12 Years to College Portfolio 0.35 — — 1.14 1.49 5.50 25 4-6 Years to College Portfolio 0.35 — — 1.12 1.47 5.50 25 1-3 Years to College Portfolio 0.35 — — 1.08 1.43 5.50 25 College Now Portfolio 0.35 0.08 — 1.08 1.35 5.50 25 Individual Fund Portfolio AIM Money Market Fund 529 Portfolio 0.35 — — 0.85 1.20 None 25 1 There is no guarantee that actual expenses will be the same as those shown in the table. 2 The distributor will waive a portion of the Administrative Services fee through at least June 30, 2010. 3 The distributor pays the program manager a fee at an annual rate of 0.20% of the average daily net assets invested in the plan plus $5 per account maintained by the servicing agent for services rendered by the program manager in connection with the administration of the plan. These fees are paid out of the distributor’s assets and do not add to the cost of investing in the plan. The program manager pays the Trustee a fee at an annual rate of 0.10% of the average daily net assets invested in the plan that is used by the Trustee to offset the expenses associated with the administration of the plan. These fees are paid out of the program manager’s assets and do not add to the cost of investing in the plan. 4 Acquired (Underlying) Fund Expenses include the net annual operating expenses of the AIM Allocation Fund and the fund’s estimate of the indirect expenses of the underlying AIM mutual funds in which the AIM Allocation Fund invests. The estimated indirect expenses of the underlying AIM mutual funds is based on the net annualized operating expenses of the mutual funds in which the AIM Allocation Fund invests and the percentage ownership of those investments. 5 For additional information regarding breakpoints available with respect to the initial sales charges applicable to Class A shares, see “What sales charges will I pay? — Initial Sales Charges,” above, and the “Hypothetical Expense Example” comparing the approximate cost of investing in each portfolio, below. 6 The annual account fee is waived if on the date the fee would otherwise be deducted the value of your account is equal to or greater than $25,000 or you are making contributions through a Systematic Purchase Plan.

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Fees and Expenses Associated with an Investment in Class B and C Shares The following table sets forth the estimated fees and expenses that will be borne directly and indirectly by your account. The actual expenses of each portfolio may be different. The fees and expenses of the plan are subject to change at any time. Annual Asset-Based Fees and Expenses1 Additional Expenses Admin. Acquired Maximum Maximum Admin. Service (Underlying) Total CDSC for CDSC for Annual Service Fee State and Fund Annual Class B Class C Account Portfolio Fee2 Waiver3 Other Fees4 Expenses5 Fees Shares6 Shares6 Fee7

Allocation Portfolios AIM Growth Allocation Fund 529 Portfolio 1.10% — — 1.26% 2.36% 5.00% 1.00% $25 AIM Moderate Growth Allocation Fund 529 Portfolio 1.10 — — 1.14 2.24 5.00 1.00 25 AIM Moderate Allocation Fund 529 Portfolio 1.10 — — 1.12 2.22 5.00 1.00 25 AIM Moderately Conservative Allocation Fund 529 Portfolio 1.10 — — 1.08 2.18 5.00 1.00 25 AIM Conservative Allocation Fund 529 Portfolio 1.10 0.08% — 1.08 2.10 5.00 1.00 25 Enrollment-Based Portfolios 13+ Years to College Portfolio 1.10 — — 1.26 2.36 5.00 1.00 25 7-12 Years to College Portfolio 1.10 — — 1.14 2.24 5.00 1.00 25 4-6 Years to College Portfolio 1.10 — — 1.12 2.22 5.00 1.00 25 1-3 Years to College Portfolio 1.10 — — 1.08 2.18 5.00 1.00 25 College Now Portfolio 1.10 0.08 — 1.08 2.10 5.00 1.00 25 Individual Fund Portfolio AIM Money Market Fund 529 Portfolio 1.10 — — 0.85 1.95 5.00 1.00 25 1 There is no guarantee that actual expenses will be the same as those shown in the table. 2 Class B shares convert to Class A shares, and thereafter will pay the Class A share administrative service fee of 0.35%, at the end of the month that is eight years after the date on which the shares were purchased. Class B shares purchased prior to October 8, 2002, will convert to Class A shares at the end of the month that is six years after the date on which the shares were purchased. 3 The distributor will waive a portion of the Administrative Services fee through at least June 30, 2010. 4 The distributor pays the program manager a fee at an annual rate of 0.20% of the average daily net assets invested in the plan plus $5 per account maintained by the servicing agent for services rendered by the program manager in connection with the administration of the plan. These fees are paid out of the distributor’s assets and do not add to the cost of investing in the plan. The program manager pays the Trustee a fee at an annual rate of 0.10% of the average daily net assets invested in the plan that is used by the Trustee to offset the expenses associated with the administration of the plan. These fees are paid out of the program manager’s assets and do not add to the cost of investing in the plan. 5 Acquired (Underlying) Fund Expenses include the net annual operating expenses of the AIM Allocation Fund and the fund’s estimate of the indirect expenses of the underlying AIM mutual funds in which the AIM Allocation Fund invests. The estimated indirect expenses of the underlying AIM mutual funds is based on the net annualized operating expenses of the mutual funds in which the AIM Allocation Fund invests and the percentage ownership of those investments. 6 For additional information about contingent deferred sales charges, see “What sales charges will I pay? — Contingent Deferred Sales Charges,” above, and the “Hypothetical Expense Example” comparing the approximate cost of investing in each portfolio, below. 7 The annual account fee is waived if on the date the fee would otherwise be deducted the value of your account is equal to or greater than $25,000 or you are making contributions through a Systematic Purchase Plan.

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Hypothetical Expense Example The following chart compares the approximate cost of investing in each portfolio and share class of the plan over different periods of time. Your actual costs may be higher or lower. The hypothetical chart assumes an initial $10,000 investment in a portfolio and a 5% annual rate of return, compounded annually. All expense ratios and asset allocations are assumed to remain the same for the duration of the periods. The chart assumes that all redemptions are made for higher education costs and, therefore, does not reflect the impact of potential federal, state or local taxes. The chart also assumes that the investor pays the maximum initial sales charge for Class A shares. With respect to Class B and C shares, the chart illustrates both what you would pay assuming that you held your shares and did not incur a CDSC and what you would pay if you were to redeem your shares and incur the applicable CDSC. For purposes of assessing the $25 annual account fee, the chart assumes that you have invested all contributions in a single portfolio. The illustration is hypothetical and does not reflect actual expenses or performance from the past or future.

1 Year 3 Years 5 Years 10 Years

Portfolio A B B1 C C1 A B B1 C A B B1 C A B2 C

Allocation Portfolios

AIM Growth Allocation Fund 529 Portfolio $730 $264 $764 $264 $364 $1,104 $810 $1,110 $810 $1,499 $1,379 $1,579 $1,379 $2,586 $2,734 $2,917

AIM Moderate Growth Allocation Fund 529 Portfolio 718 252 752 252 352 1,069 774 1,074 774 1,440 1,319 1,519 1,319 2,463 2,612 2,797

AIM Moderate Allocation Fund 529 Portfolio 716 250 750 250 350 1,063 768 1,068 768 1,430 1,309 1,509 1,309 2,442 2,591 2,777

AIM Moderately Conservative Allocation Fund 529 Portfolio 713 246 746 246 346 1,051 755 1,055 755 1,410 1,289 1,489 1,289 2,401 2,550 2,737

AIM Conservative Allocation Fund 529 Portfolio 705 238 738 238 338 1,044 748 1,048 748 1,403 1,282 1,482 1,282 2,394 2,544 2,730

Enrollment-Based Portfolios

13+ Years to College Portfolio 730 264 764 264 364 1,104 810 1,110 810 1,499 1,379 1,579 1,379 2,586 2,734 2,917

7-12 Years to College Portfolio 718 252 752 252 352 1,069 774 1,074 774 1,440 1,319 1,519 1,319 2,463 2,612 2,797



College Now Portfolio 705 238 738 238 338 1,044 748 1,048 748 1,403 1,282 1,482 1,282 2,394 2,544 2,730

Individual Fund Portfolio

AIM Money Market Fund 529 Portfolio 147 223 723 223 323 455 686 986 686 781 1,172 1,372 1,172 1,689 2,310 2,501

1 This column reflects what you would pay if you were to redeem your shares and incur the applicable CDSC. 2 Assumes conversion of Class B shares to the lower portfolio operating expenses of Class A shares, which occurs on or about the end of the month which is at least 8 years after the date on which shares were purchased.

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Supplement dated June 2, 2009 to the Enrollment Handbook dated June 2, 2008

Effective June 2, 2009, the AIM College Savings Plan will be closed to new participants. Current account owners may continue to make contributions, make changes to their portfolio elections and otherwise manage their accounts in accordance with the Enrollment Handbook. Effective June 2, 2009, the following changes will be made under the heading “Additional Information Regarding the AIM Funds-AIM Growth Allocation Fund- Investment Objective, Strategies and Risks – RISKS”: The following risks will be deleted in their entirety: High Yield Risk Value Investing Risk The Derivatives Risk and Leverage Risk will be replaced in their entirety with the following: “Derivatives Risk—Derivatives are financial contracts whose value depends on or is derived from an underlying asset (including an underlying security), reference rate or index. Derivatives may be used as a substitute for purchasing the underlying asset or as a hedge to reduce exposure to risks. The use of derivatives involves risks similar to, as well as risks different from, and possibly greater than, the risks associated with investing directly in securities or other more traditional instruments. Risks to which derivatives may be subject include market, interest rate, credit, leverage and management risks. They may also be more difficult to purchase or sell or value than other investments. When used for hedging or reducing exposure, the derivative may not correlate perfectly with the underlying asset, reference rate or index. An underlying fund investing in a derivative could lose more than the cash amount invested. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the fund. In addition, the use of certain derivatives may cause the underlying fund to realize higher amounts of income or short-term capital gains (generally taxed at ordinary income tax rates.) Leverage Risk—Leverage exists when an underlying fund purchases or sells an instrument or enters into a transaction without investing cash in an amount equal to the full economic exposure of the instrument or transaction. Such instruments may include, among others, reverse repurchase agreements, written options, and derivatives, and transactions may include the use of when-issued, delayed delivery or forward commitment transactions. The underlying fund mitigates leverage risk by segregating or earmarking liquid assets or otherwise covers transactions that may give rise to such risk. To the extent that the underlying fund is not able to close out a leveraged position because of market illiquidity, the underlying fund’s liquidity may be impaired to the extent that it has a substantial portion of liquid assets segregated or earmarked to cover obligations and may liquidate portfolio positions when it may not be advantageous to do so. Leveraging may cause the underlying fund to be more volatile because it may exaggerate the effect of any increase or decrease in the value of the underlying fund’s portfolio securities. There can be no assurance that the underlying fund’s leverage strategy will be successful.” The following risks will be added: “Developing Markets Securities Risk—The factors described in “Foreign Securities Risk” may affect the prices of securities issued by foreign companies located in developing countries more than those in countries with mature economies. For example, many developing countries (i.e., those that are in the initial stages of their industrial cycle) have, in the past, experienced high rates of inflation or sharply devalued their currencies against the U.S. dollar, thereby causing the value of investments in companies located in those countries to decline. Transaction costs are often higher in developing countries and there may be delays in settlement procedures. Commodity Risk—AIM Balanced-Risk Allocation Fund, an underlying fund, will invest in Invesco Aim Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the fund organized under the laws of the Cayman Islands (the Subsidiary). AIM Balanced-Risk Allocation Fund or the Subsidiary may invest in commodity-linked derivative instruments, ETNs and exchange traded funds that may subject it to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments, ETNs and exchange traded funds may be affected by changes in overall market movements, commodity

529NE-SUP-1 060209

index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The underlying fund may concentrate its assets in a particular sector of the commodities market (such as oil, metal or agricultural products). As a result, the underlying fund may be more susceptible to risks associated with those sectors. Also, ETNs may subject the underlying fund indirectly through the Subsidiary to leveraged market exposure for commodities. Leverage ETNs are subject to the same risk as other instruments that use leverage in any form. Some ETNs that use leverage can, at times, be relatively illiquid, and thus they may be difficult to purchase or sell at a fair price. An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy. Subsidiary Risk— By investing in the Subsidiary, AIM Balanced-Risk Allocation Fund, an underlying fund, is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the underlying fund and are subject to the same risks that apply to similar investments if held directly by the underlying fund. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), and, unless otherwise noted in the underlying fund’s prospectus, is not subject to all the investor protections of the 1940 Act. Accordingly, the underlying fund, as the sole investor in the Subsidiary, will not have all of the protections offered to investors in registered investment companies. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of the underlying fund and/or the Subsidiary to operate as described in the underlying fund’s prospectus and Statement of Additional Information and could adversely affect the underlying fund. Currency/Exchange Rate Risk— Certain of the underlying funds may buy or sell currencies other than the U.S. Dollar and use derivatives involving foreign currencies in order to capitalize on anticipated changes in exchange rates. There is no guarantee that these investments will be successful. Non-Diversification Risk—Because certain of the underlying funds are non-diversified, these underlying funds may invest in securities of fewer issuers than if it were diversified. Thus, the value of the underlying fund’s shares may vary more widely, and the underlying fund may be subject to greater market and credit risk, than if the underlying fund invested more broadly.” Effective June 2, 2009, the following changes will be made under the heading “Additional Information Regarding the AIM Funds-AIM Moderate Growth Allocation Fund- Investment Objective, Strategies and Risks – RISKS”: The following risks will be deleted in their entirety: Convertible Securities Risk Active Trading Risk Growth Investing Risk Sector Fund Risk Value Investing Risk Unseasoned Issuer Risk Market Capitalization Risk The Derivatives Risk and Leverage Risk will be replaced in their entirety with the following: “Derivatives Risk—Derivatives are financial contracts whose value depends on or is derived from an underlying asset (including an underlying security), reference rate or index. Derivatives may be used as a substitute for purchasing the underlying asset or as a hedge to reduce exposure to risks. The use of derivatives involves risks similar to, as well as risks different from, and possibly greater than, the risks associated with investing directly in securities or other more traditional instruments. Risks to which derivatives may be subject include market, interest rate, credit, leverage and management risks. They may also be more difficult to purchase or sell or value than other investments. When used for hedging or reducing exposure, the derivative may not correlate perfectly with the underlying asset, reference rate or index. An underlying fund investing in a derivative could lose more than the cash amount invested. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the fund. In addition, the use of certain derivatives may cause the underlying fund to realize higher amounts of income or short-term capital gains (generally taxed at ordinary income tax rates.) Leverage Risk—Leverage exists when an underlying fund purchases or sells an instrument or enters into a transaction without investing cash in an amount equal to the full economic exposure of the instrument or transaction. Such instruments may include, among others, reverse repurchase agreements, written options, and derivatives, and transactions may include the use of when-issued, delayed delivery or forward commitment transactions. The underlying fund mitigates leverage risk by segregating or earmarking liquid assets or otherwise covers transactions that may give rise to such risk. To the extent that the underlying fund is not able to close out a leveraged position because of market illiquidity, the underlying fund’s liquidity may be impaired to the extent that it has a substantial portion of liquid assets segregated or earmarked to cover obligations and may liquidate portfolio

529NE-SUP-1 060209

positions when it may not be advantageous to do so. Leveraging may cause the underlying fund to be more volatile because it may exaggerate the effect of any increase or decrease in the value of the underlying fund’s portfolio securities. There can be no assurance that the underlying fund’s leverage strategy will be successful.” The following risks will be added: “Developing Markets Securities Risk—The factors described in “Foreign Securities Risk” may affect the prices of securities issued by foreign companies located in developing countries more than those in countries with mature economies. For example, many developing countries (i.e., those that are in the initial stages of their industrial cycle) have, in the past, experienced high rates of inflation or sharply devalued their currencies against the U.S. dollar, thereby causing the value of investments in companies located in those countries to decline. Transaction costs are often higher in developing countries and there may be delays in settlement procedures. Commodity Risk—AIM Balanced-Risk Allocation Fund, an underlying fund, will invest in Invesco Aim Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the fund organized under the laws of the Cayman Islands (the Subsidiary). AIM Balanced-Risk Allocation Fund or the Subsidiary may invest in commodity-linked derivative instruments, ETNs and exchange traded funds that may subject it to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments, ETNs and exchange traded funds may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The underlying fund may concentrate its assets in a particular sector of the commodities market (such as oil, metal or agricultural products). As a result, the underlying fund may be more susceptible to risks associated with those sectors. Also, ETNs may subject the underlying fund indirectly through the Subsidiary to leveraged market exposure for commodities. Leverage ETNs are subject to the same risk as other instruments that use leverage in any form. Some ETNs that use leverage can, at times, be relatively illiquid, and thus they may be difficult to purchase or sell at a fair price. An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy. Subsidiary Risk— By investing in the Subsidiary, AIM Balanced-Risk Allocation Fund, an underlying fund, is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the underlying fund and are subject to the same risks that apply to similar investments if held directly by the underlying fund. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), and, unless otherwise noted in the underlying fund’s prospectus, is not subject to all the investor protections of the 1940 Act. Accordingly, the underlying fund, as the sole investor in the Subsidiary, will not have all of the protections offered to investors in registered investment companies. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of the underlying fund and/or the Subsidiary to operate as described in the underlying fund’s prospectus and Statement of Additional Information and could adversely affect the underlying fund. Non-Diversification Risk—Because certain of the underlying funds are non-diversified, the underlying fund may invest in securities of fewer issuers than if it were diversified. Thus, the value of the underlying fund’s shares may vary more widely, and the underlying fund may be subject to greater market and credit risk, than if the underlying fund invested more broadly.” Effective June 2, 2009, the following changes will be made under the heading “Additional Information Regarding the AIM Funds-AIM Moderate Allocation Fund- Investment Objective, Strategies and Risks – RISKS”: The following risks will be deleted in their entirety: Convertible Securities Risk Growth Investing Risk Mortgage- and Asset-Backed Securities Risk Value Investing Risk Active Trading Risk Risks Relating to Banking and Financial Services Industries The Derivatives Risk and Leverage Risk will be replaced in their entirety with the following: “Derivatives Risk—Derivatives are financial contracts whose value depends on or is derived from an underlying asset (including an underlying security), reference rate or index. Derivatives may be used as a substitute for purchasing the underlying asset or as a hedge to reduce exposure to risks. The use of derivatives involves risks similar to, as well as risks different from, and possibly greater than, the risks associated with investing directly in securities or other more traditional instruments. Risks to which derivatives may be subject include market, interest rate, credit, leverage and management risks. They may also be more

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difficult to purchase or sell or value than other investments. When used for hedging or reducing exposure, the derivative may not correlate perfectly with the underlying asset, reference rate or index. An underlying fund investing in a derivative could lose more than the cash amount invested. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the fund. In addition, the use of certain derivatives may cause the underlying fund to realize higher amounts of income or short-term capital gains (generally taxed at ordinary income tax rates.) Leverage Risk—Leverage exists when an underlying fund purchases or sells an instrument or enters into a transaction without investing cash in an amount equal to the full economic exposure of the instrument or transaction. Such instruments may include, among others, reverse repurchase agreements, written options, and derivatives, and transactions may include the use of when-issued, delayed delivery or forward commitment transactions. The underlying fund mitigates leverage risk by segregating or earmarking liquid assets or otherwise covers transactions that may give rise to such risk. To the extent that the underlying fund is not able to close out a leveraged position because of market illiquidity, the underlying fund’s liquidity may be impaired to the extent that it has a substantial portion of liquid assets segregated or earmarked to cover obligations and may liquidate portfolio positions when it may not be advantageous to do so. Leveraging may cause the underlying fund to be more volatile because it may exaggerate the effect of any increase or decrease in the value of the underlying fund’s portfolio securities. There can be no assurance that the underlying fund’s leverage strategy will be successful.” The following risks will be added: “Developing Markets Securities Risk—The factors described in “Foreign Securities Risk” may affect the prices of securities issued by foreign companies located in developing countries more than those in countries with mature economies. For example, many developing countries (i.e., those that are in the initial stages of their industrial cycle) have, in the past, experienced high rates of inflation or sharply devalued their currencies against the U.S. dollar, thereby causing the value of investments in companies located in those countries to decline. Transaction costs are often higher in developing countries and there may be delays in settlement procedures. Commodity Risk—AIM Balanced-Risk Allocation Fund, an underlying fund, will invest in Invesco Aim Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the fund organized under the laws of the Cayman Islands (the Subsidiary). AIM Balanced-Risk Allocation Fund or the Subsidiary may invest in commodity-linked derivative instruments, ETNs and exchange traded funds that may subject it to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments, ETNs and exchange traded funds may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The underlying fund may concentrate its assets in a particular sector of the commodities market (such as oil, metal or agricultural products). As a result, the underlying fund may be more susceptible to risks associated with those sectors. Also, ETNs may subject the underlying fund indirectly through the Subsidiary to leveraged market exposure for commodities. Leverage ETNs are subject to the same risk as other instruments that use leverage in any form. Some ETNs that use leverage can, at times, be relatively illiquid, and thus they may be difficult to purchase or sell at a fair price. An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy. Subsidiary Risk— By investing in the Subsidiary, AIM Balanced-Risk Allocation Fund, an underlying fund, is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the underlying fund and are subject to the same risks that apply to similar investments if held directly by the underlying fund. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), and, unless otherwise noted in the underlying fund’s prospectus, is not subject to all the investor protections of the 1940 Act. Accordingly, the underlying fund, as the sole investor in the Subsidiary, will not have all of the protections offered to investors in registered investment companies. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of the underlying fund and/or the Subsidiary to operate as described in the underlying fund’s prospectus and Statement of Additional Information and could adversely affect the underlying fund. Counterparty Risk—Individually negotiated, or over-the-counter, derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction of the underlying fund. Limited Number of Holdings Risk—Because a large percentage of an underlying fund’s assets may be invested in a limited number of securities, a change in the value of these securities could significantly affect the value of the fund’s investment in an underlying fund.”

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Effective June 2, 2009, the following changes will be made under the heading “Additional Information Regarding the AIM Funds-AIM Moderately Conservative Allocation Fund- Investment Objective, Strategies and Risks – RISKS”: The following risks will be deleted in their entirety: High Yield Risk Convertible Securities Risk Mortgage- and Asset-Backed Securities Risk Value Investing Risk Equity Securities Risk Growth Investing Risk The Derivatives Risk and Leverage Risk will be replaced in their entirety with the following: “Derivatives Risk—Derivatives are financial contracts whose value depends on or is derived from an underlying asset (including an underlying security), reference rate or index. Derivatives may be used as a substitute for purchasing the underlying asset or as a hedge to reduce exposure to risks. The use of derivatives involves risks similar to, as well as risks different from, and possibly greater than, the risks associated with investing directly in securities or other more traditional instruments. Risks to which derivatives may be subject include market, interest rate, credit, leverage and management risks. They may also be more difficult to purchase or sell or value than other investments. When used for hedging or reducing exposure, the derivative may not correlate perfectly with the underlying asset, reference rate or index. An underlying fund investing in a derivative could lose more than the cash amount invested. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the fund. In addition, the use of certain derivatives may cause the underlying fund to realize higher amounts of income or short-term capital gains (generally taxed at ordinary income tax rates.) Leverage Risk—Leverage exists when an underlying fund purchases or sells an instrument or enters into a transaction without investing cash in an amount equal to the full economic exposure of the instrument or transaction. Such instruments may include, among others, reverse repurchase agreements, written options, and derivatives, and transactions may include the use of when-issued, delayed delivery or forward commitment transactions. The underlying fund mitigates leverage risk by segregating or earmarking liquid assets or otherwise covers transactions that may give rise to such risk. To the extent that the underlying fund is not able to close out a leveraged position because of market illiquidity, the underlying fund’s liquidity may be impaired to the extent that it has a substantial portion of liquid assets segregated or earmarked to cover obligations and may liquidate portfolio positions when it may not be advantageous to do so. Leveraging may cause the underlying fund to be more volatile because it may exaggerate the effect of any increase or decrease in the value of the underlying fund’s portfolio securities. There can be no assurance that the underlying fund’s leverage strategy will be successful.” The following risks will be added: “Developing Markets Securities Risk—The factors described in “Foreign Securities Risk” may affect the prices of securities issued by foreign companies located in developing countries more than those in countries with mature economies. For example, many developing countries (i.e., those that are in the initial stages of their industrial cycle) have, in the past, experienced high rates of inflation or sharply devalued their currencies against the U.S. dollar, thereby causing the value of investments in companies located in those countries to decline. Transaction costs are often higher in developing countries and there may be delays in settlement procedures. Commodity Risk—AIM Balanced-Risk Allocation Fund, an underlying fund, will invest in Invesco Aim Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the fund organized under the laws of the Cayman Islands (the Subsidiary). AIM Balanced-Risk Allocation Fund or the Subsidiary may invest in commodity-linked derivative instruments, ETNs and exchange traded funds that may subject it to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments, ETNs and exchange traded funds may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The underlying fund may concentrate its assets in a particular sector of the commodities market (such as oil, metal or agricultural products). As a result, the underlying fund may be more susceptible to risks associated with those sectors. Also, ETNs may subject the underlying fund indirectly through the Subsidiary to leveraged market exposure for commodities. Leverage ETNs are subject to the same risk as other instruments that use leverage in any form. Some ETNs that use leverage can, at times, be relatively illiquid, and thus they may be difficult to purchase or sell at a fair price. An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy.

529NE-SUP-1 060209

Subsidiary Risk—By investing in the Subsidiary, AIM Balanced-Risk Allocation Fund, an underlying fund, is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the underlying fund and are subject to the same risks that apply to similar investments if held directly by the underlying fund. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), and, unless otherwise noted in the underlying fund’s prospectus, is not subject to all the investor protections of the 1940 Act. Accordingly, the underlying fund, as the sole investor in the Subsidiary, will not have all of the protections offered to investors in registered investment companies. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of the underlying fund and/or the Subsidiary to operate as described in the underlying fund’s prospectus and Statement of Additional Information and could adversely affect the underlying fund. Counterparty Risk—Individually negotiated, or over-the-counter, derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction of the underlying fund. Limited Number of Holdings Risk—Because a large percentage of an underlying fund’s assets may be invested in a limited number of securities, a change in the value of these securities could significantly affect the value of the fund’s investment in an underlying fund.” Effective June 2, 2009, the following changes will be made under the heading “Additional Information Regarding the AIM Funds-AIM Conservative Allocation Fund- Investment Objective, Strategies and Risks – RISKS”: The following risks will be deleted in their entirety: Mortgage-and Asset-Backed Securities Risk Value Investing Risk Equity Securities Risk High Yield Risk The Derivatives Risk and Leverage Risk will be replaced in their entirety with the following: “Derivatives Risk—Derivatives are financial contracts whose value depends on or is derived from an underlying asset (including an underlying security), reference rate or index. Derivatives may be used as a substitute for purchasing the underlying asset or as a hedge to reduce exposure to risks. The use of derivatives involves risks similar to, as well as risks different from, and possibly greater than, the risks associated with investing directly in securities or other more traditional instruments. Risks to which derivatives may be subject include market, interest rate, credit, leverage and management risks. They may also be more difficult to purchase or sell or value than other investments. When used for hedging or reducing exposure, the derivative may not correlate perfectly with the underlying asset, reference rate or index. An underlying fund investing in a derivative could lose more than the cash amount invested. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the fund. In addition, the use of certain derivatives may cause the underlying fund to realize higher amounts of income or short-term capital gains (generally taxed at ordinary income tax rates.) Leverage Risk—Leverage exists when an underlying fund purchases or sells an instrument or enters into a transaction without investing cash in an amount equal to the full economic exposure of the instrument or transaction. Such instruments may include, among others, reverse repurchase agreements, written options, and derivatives, and transactions may include the use of when-issued, delayed delivery or forward commitment transactions. The underlying fund mitigates leverage risk by segregating or earmarking liquid assets or otherwise covers transactions that may give rise to such risk. To the extent that the underlying fund is not able to close out a leveraged position because of market illiquidity, the underlying fund’s liquidity may be impaired to the extent that it has a substantial portion of liquid assets segregated or earmarked to cover obligations and may liquidate portfolio positions when it may not be advantageous to do so. Leveraging may cause the underlying fund to be more volatile because it may exaggerate the effect of any increase or decrease in the value of the underlying fund’s portfolio securities. There can be no assurance that the underlying fund’s leverage strategy will be successful.” The following risks will be added: “Reinvestment Risk—Reinvestment risk is the risk that a bond’s cash flows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond. If interest rates decline, the underlying bond may rise in value, but the cash flows received from that bond may have to be invested at a lower interest rate. Risks Relating to Banking and Financial Services Industries—To the extent that the underlying fund is concentrated in securities of issuers in the banking and financial services industries, the underlying fund’s performance will depend to a greater extent on the overall condition of those industries. Financial services companies are highly dependent on the supply of short-

529NE-SUP-1 060209

term financing. The value of securities of issuers in the banking and financial services industry can be sensitive to changes in government regulations and interest rates and to economic downturns in the United States and abroad. Developing Markets Securities Risk—The factors described in “Foreign Securities Risk” may affect the prices of securities issued by foreign companies located in developing countries more than those in countries with mature economies. For example, many developing countries (i.e., those that are in the initial stages of their industrial cycle) have, in the past, experienced high rates of inflation or sharply devalued their currencies against the U.S. dollar, thereby causing the value of investments in companies located in those countries to decline. Transaction costs are often higher in developing countries and there may be delays in settlement procedures. Commodity Risk—AIM Balanced-Risk Allocation Fund, an underlying fund, will invest in Invesco Aim Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the fund organized under the laws of the Cayman Islands (the Subsidiary). AIM Balanced-Risk Allocation Fund or the Subsidiary may invest in commodity-linked derivative instruments, ETNs and exchange traded funds that may subject it to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments, ETNs and exchange traded funds may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The underlying fund may concentrate its assets in a particular sector of the commodities market (such as oil, metal or agricultural products). As a result, the underlying fund may be more susceptible to risks associated with those sectors. Also, ETNs may subject the underlying fund indirectly through the Subsidiary to leveraged market exposure for commodities. Leverage ETNs are subject to the same risk as other instruments that use leverage in any form. Some ETNs that use leverage can, at times, be relatively illiquid, and thus they may be difficult to purchase or sell at a fair price. An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy. Subsidiary Risk— By investing in the Subsidiary, AIM Balanced-Risk Allocation Fund, an underlying fund, is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the underlying fund and are subject to the same risks that apply to similar investments if held directly by the underlying fund. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), and, unless otherwise noted in the underlying prospectus, is not subject to all the investor protections of the 1940 Act. Accordingly, the underlying fund, as the sole investor in the Subsidiary, will not have all of the protections offered to investors in registered investment companies. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of the underlying fund and/or the Subsidiary to operate as described in the underlying fund’s prospectus and Statement of Additional Information and could adversely affect the underlying fund. Counterparty Risk—Individually negotiated, or over-the-counter, derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction of the underlying fund. Limited Number of Holdings Risk—Because a large percentage of an underlying fund’s assets may be invested in a limited number of securities, a change in the value of these securities could significantly affect the value of the fund’s investment in an underlying fund.”

529NE-SUP-1 011209


Supplement dated January 12, 2009 to the Enrollment Handbook dated June 2, 2008

INCREASE IN NUMBER OF PERMITTED INVESTMENT CHANGES FOR 2009

In Internal Revenue Service Notice 2009-1, scheduled for publication in Internal Revenue Bulletin 2009-2 dated January 12, 2009, the Internal Revenue Service (“IRS”) issued guidance for Section 529 qualified tuition programs (a “529 Plan”) revising the number of investment changes that may be made in calendar year 2009. Previously, federal law allowed participants in a 529 Plan to change the investment strategy in their account once per calendar year, or upon a change in beneficiary.

Pursuant to IRS Notice 2009-1, a participant may make up to two (2) changes to the investment allocations in a 529 Plan during calendar year 2009. Accordingly, all references in the Enrollment Handbook to the once per calendar year limitation are hereby amended to reflect that account owners in the plan may change the investment allocation in their accounts up to two (2) times during calendar year 2009, or at any time upon a change in beneficiary.

CHANGES TO ANNUAL GIFT TAX EXCLUSION The text on page 2 under the heading “Overview -- Gift Tax Treatment” is replaced in its entirety with the following: “Gift Tax Treatment. For federal gift tax purposes, a contribution to an account is considered a gift from the contributor to the beneficiary that is eligible for the annual gift tax exclusion. For 2009, the annual exclusion is $13,000 per donee. This means that you may contribute up to $13,000 to an account without the contribution being considered a taxable gift (assuming you make no other gifts to the beneficiary in 2009). In addition, if your total contributions to an account during a year exceed the annual exclusion for that year, you may elect to have the amount you contributed that year treated as though you made one-fifth of the contribution that year, and one-fifth of the contribution in each of the next four years. (Such an election must be made on a federal gift tax return). This means that you may contribute up to $65,000 to an account in 2009 without the contribution being considered a taxable gift (assuming you make no other gifts to the beneficiary in 2009 or in any of the succeeding four years). Moreover, a married contributor whose spouse elects on a federal gift tax return to have gifts treated as “split” with the contributor may contribute up to twice that amount ($130,000) without the contribution being considered a taxable gift. The annual exclusion is indexed for inflation and therefore is expected to increase over time.1” On page 29, under “Additional Tax Information,” the first 5 paragraphs under the heading “Federal Gift, Estate and Generation-Skipping Transfer Taxes” are replaced in their entirety with the following: “Federal Gift, Estate and Generation-Skipping Transfer Taxes Contributions to an account are considered completed gifts to the beneficiary of the account for federal estate, gift and generation-skipping transfer tax purposes. Except as described below, if an account owner dies while there is a balance in the account, the value of the account is not includible in the account owner’s gross estate for federal estate tax purposes. However, amounts in an account at the death of the beneficiary are includible in the beneficiary’s gross estate. A donor’s gifts to a donee in any given year will not be taxable if the gifts are eligible for, and do not in total exceed what is known as the gift tax “annual exclusion” for such year. For 2009, the annual exclusion is $13,000 per donee,

529NE-SUP-1 011209

or twice that amount for a married donor whose spouse elects on a federal gift tax return to “split” gifts with the donor. The annual exclusion is indexed for inflation and is therefore expected to increase over time. Under Section 529, an Account owner’s contributions to accounts for a beneficiary are eligible for the gift tax annual exclusion. Contributions are also excludible for purposes of the federal generation-skipping transfer tax. Accordingly, so long as the account owner’s total contributions to accounts for the beneficiary in any year (together with any other gifts made by the account owner to the beneficiary in such year) do not exceed the annual exclusion amount for such year, the account owner’s contributions will not be considered taxable gifts and will be excludible for purposes of the generation-skipping transfer tax. In addition, if an account owner’s total contributions to accounts for a beneficiary in a single year exceed the annual exclusion for such year, the account owner may elect to treat contributions that total up to five times the annual exclusion (or up to ten times if the donor and his or her spouse split gifts) as having been made ratably over a five year period. Consequently, a single donor may contribute up to $65,000 in a single year without incurring federal gift tax, so long as the donor makes no other gifts to the same beneficiary during the year in which the contribution is made and each of the following four years. (Note that an election to have the contribution taken into account over a five-year period must be made by the donor on a federal gift tax return.) For example, an account owner who makes a $65,000 contribution to an account for a beneficiary in 2009 may elect to have that contribution treated as a $13,000 gift in 2009 and a $13,000 gift in each of the following four years. If the account owner makes no other contributions or gifts to the beneficiary before January 1, 2014, the account owner will not be treated as making any taxable gifts to the beneficiary during that five-year period. As a result, the $65,000 contribution will not be treated as a taxable gift and will be excludible for purposes of the generation-skipping transfer tax. However, if the account owner dies before the end of the five-year period, the portion of the contributions allocable to years after the year of death will be includible in the account owner’s gross estate for federal estate tax purposes.” ADDITIONAL CATEGORY OF SHAREHOLDERS ALLOWED TO PURCHASE CLASS A SHARES WITHOUT INITIAL SALES CHARGE

On page 13, the sixth paragraph under the heading “Frequently Asked Questions – Plan Fees And Expenses – What sales charges will I pay?” a third bullet point will be added with the following:

• by an Investor who maintains an account in Investor Class shares of an AIM Fund (this includes anyone listed in the registration of an account, such as a joint owner, trustee or custodian, and immediate family members of such persons).”

CHANGE IN INVESCO AIM CLIENT SERVICES HOURS OF OPERATION

Additionally, effective January 5, 2009, on page 25, the first sentence under the heading “Frequently Asked Questions – Other Information – Where can I obtain additional information?” is replaced in its entirety with the following: “If you have questions regarding your account, ask your financial advisor or call an Invesco Aim Client Services Representative at 1-877-AIM-PLAN (1-877-246-7526), weekdays, 7:00 a.m. to 6:00 p.m. Central Time.”

“

The AIM College Savings Plan˛

ENROLLMENT HANDBOOKJune 2, 2008

The AIM College Savings Plan is a separate series of the Nebraska Educa-tional Savings Plan Trust, also referred to herein as the ‘‘Trust’’, that ismanaged, distributed and administered by Invesco Aim Capital Manage-ment, Inc. and its affiliates.

Sponsor:The plan provides a convenient and tax-advantaged way to save for the costState of Nebraskaof college and other qualifying post-high school education. This handbooksets forth basic information that you should know before investing in theTrustee:

Nebraska State plan, and should be read and retained for future reference.Treasurer

Opening an account in the plan involves certain risks, including possibleloss of the principal amount invested. You should review the section of thisProgram Manager:

Union Bank and Trust handbook titled, ‘‘Certain Risks to Consider,’’ that begins on page 26.Company

Accounts in the plan have not been registered with the Securities andExchange Commission or with any state securities commission pursuant toInvestment Manager:

Invesco Aim Capital Man- exemptions from registration available for securities issued by a publicagement, Inc. instrumentality of a state. Neither the Securities and Exchange Commis-

sion nor any state securities commission has reviewed this handbook, andDistributor:

it is against the law to claim that it has.Invesco Aim Distributors,Inc. Accounts in the plan are not guaranteed or insured by Invesco Aim Capital

Management, Inc., Union Bank and Trust Company, the Trust, the State ofServicing Agent:

Nebraska, any of their respective affiliates, directors, officers or agents,Invesco Aim Investmentor any other entity.Services, Inc.

This Enrollment Handbook is designed to comply with the College SavingsPlans Network Disclosure Principles, Statement No. 2, adopted July 26,2005.

Investments in the plan:m are not FDIC insured, andm may lose value

In order to comply with Treasury Department regulations, we advise youthat this handbook was prepared to promote and support the marketing ofthe plan. It is not intended to constitute tax advice, was not written orintended to be used by any taxpayer for the purpose of avoiding tax penal-ties that may be imposed on the taxpayer, and cannot be used by anytaxpayer for that purpose. Advice regarding the tax treatment of the planshould be sought from an independent tax advisor in light of your particularcircumstances.


Important Investor Information — Please ReadBefore investing in The AIM College Savings Plan, you should consider carefully the following:

1. Depending on the laws of your home state or that of your designated beneficiary, favorablestate tax treatment or other benefits offered by such home state for investing in 529 collegesavings plans may be available only if you invest in such home state’s 529 college savingsplan;

2. Any state-based benefit offered with respect to a particular 529 college savings plan should beone of many appropriately weighted factors to be considered in making an investment deci-sion; and

3. You should consult with your financial, tax or other advisor to learn more about how state-basedbenefits (including any limitations) would apply to your specific circumstances. You may alsowish to contact your home state or any other 529 college savings plan to learn more aboutthe features, benefits and limitations of that state’s 529 college savings plan.


Plan at a GlanceWhere to find

Overview of plan attributes: more information:

Minimum contribution. $500 per portfolio with subsequent investments of at least $50per portfolio (with a Systematic Purchase Plan — $50 perportfolio and subsequent investments of $25 per portfolio). Page 2

Maximum contribution per beneficiary. $360,000. Pages 1 and 2

Rollover contributions. Allowed. Page 7

Eligible account owners. Any adult person or entity with a valid Social Security Numberor other federal Taxpayer Identification Number. Page 2 and 5

Eligible beneficiaries. Any individual who has a valid federal Taxpayer IdentificationNumber. Page 6

Age limitations for account owners. Must be of legal age to enter into a contract. N/A

Age limitations for beneficiaries. Class B shares may not be purchased for an account once thebeneficiary reaches his or her 13th birthday. Otherwise, none. Pages 3 and 5

Federal income tax benefits. Earnings grow free from federal income tax. Earnings on aqualified withdrawal that are used to pay higher education costsare free from federal income tax. Earnings on a non-qualifiedwithdrawal are subject to federal income tax and a 10% federalpenalty tax. Pages 2, 20 and 27-

30

Nebraska state tax benefits. Contributions by account owners may be deductible up to$5,000 per tax return ($2,500 if married filing separately). Pages 21 and 28

Use of withdrawn funds. Withdrawals used to pay for the beneficiary’s higher educationcosts constitute qualified withdrawals. Pages 2, 4 and 21-

22

Investment options. The plan offers:) 5 allocation portfolios (the ‘‘Allocation Portfolios’’).) 5 target maturity portfolios (the ‘‘Enrollment-Based

Portfolios’’).) 1 portfolio that invests in an individual mutual fund (the

‘‘Individual Fund Portfolio’’). Pages 1 and 7-9

Underlying mutual funds. The AIM Family of Funds. Pages 35-53

How the plan is sold. Through independent financial advisors. Page 1 and 5

Underlying fund expense ratios. Average: Range:

Allocation Portfolios 1.15% 1.09% to 1.27%

Enrollment-Based Portfolios 1.15% 1.09% to 1.27%

Individual Fund Portfolio 0.90% 0.90% Pages 17-19

Maximum initial sales charge 5.50% on Class A shares. Class B and C shares are sold withouta front-end sales charge. Pages 13-15 and 17

Maximum contingent deferred sales charge. 5.00% on Class B shares. 1.00% on Class C shares. Page 15, 18 and 19

Administrative service fee. 0.35% on Class A shares. 1.10% on Class B and C shares. Pages 13, 17, 18and 19

Annual account fee. $25, subject to waiver under certain conditions. Page 12

Risk factors. The value of your account may decline; Risks related topossible future changes in state and federal tax law; Impact onthe beneficiary’s ability to receive financial aid. Pages 26-27


T H E A I M C O L L E G E S A V I N G S P L A N

Table of ContentsIntroduction 1– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Overview 2– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Definitions of Key Terms 2– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Frequently Asked Questions 4– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Description of the Plan 4Opening and Maintaining an Account 5Designating a Beneficiary 6Contributing to an Account 6Choosing Investment Options 7Investment Performance 10Plan Fees and Expenses 12Federal and State Tax Considerations 20Taking Distributions 21Limitations and Penalties 23Other Information 24

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Certain Risks to Consider 26– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Additional Tax Information 27– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Additional Information Regarding the Plan’s

Investment Manager 30– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Participation Agreement 31– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Additional Information Regarding the AIM

Funds 35– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Accounts in the Nebraska Educational Savings Plan TrustIMPORTANT LEGAL INFORMATIONare offered and sold through several different distributionThe plan and its associated persons make no representationschannels, including The AIM College Savings Plan, The Stateregarding the suitability of the plan’s investment portfolios for any

particular investor. Other types of investments and other types of Farm College Savings Plan, the College Savings Plan ofcollege savings vehicles may be more appropriate depending on Nebraska (Direct and Advisor Accounts), and the TD AMERI-your personal circumstances. TRADE 529 College Savings Plan. This Enrollment Handbook

No person has been authorized to give any information or to describes only The AIM College Savings Plan. The other plansmake any representations other than those contained in this in the Nebraska Trust may offer different investment optionshandbook, and, if given or made, such other information or with different investment advisors, different benefits, differ-representations must not be relied on as having been authorized ent fees, withdrawal penalties, and sales commissions, if any,by The AIM College Savings Plan, Invesco Aim Capital Manage- relative to the accounts described in this handbook. You canment, Inc., Union Bank and Trust Company or the State of obtain information regarding other Accounts in the Trust byNebraska. contacting the Nebraska State Treasurer at 402-471-2455, or

The information in this handbook is subject to change without by visiting the Nebraska State Treasurer’s website atnotice. Neither the delivery of this handbook nor the sale of any www.treasurer.org.shares in portfolios of the plan should be construed to imply thatthere has been no change in the affairs of The AIM College SavingsPlan since the date of this document.



The AIM College Savings Plan IntroductionThe AIM College Savings Plan (the ‘‘plan’’) is a series of the Nebraska Educational Savings Plan Trust. The Trust was established pursuant to Nebraskalaw and is overseen by the Nebraska State Treasurer, who serves as Trustee. The Trust is designed to qualify as a tax-advantaged savings plan underSection 529 of the Internal Revenue Code of 1986, as amended (the ‘‘Code’’). Section 529 permits states and state agencies to sponsor qualifiedtuition programs under which you can open and contribute to an account for the benefit of any individual, including yourself.

The plan provides a convenient and tax-advantaged way to save for the cost of college and other higher education. However, participation in theplan does not require residency in any particular state.

You may open and contribute to a plan account regardless of your income or the age of the account beneficiary. The investment earnings on yourcontributions to the plan accumulate on a tax-deferred basis. Moreover, distributions from an account that are used to pay the beneficiary’s highereducation costs are free from federal income tax. You may currently save up to $360,000 per account beneficiary. The plan has eleven investmentportfolios from which to choose.

You may establish an account in the plan for the benefit of any individual, including yourself. Each account under the plan represents an interest inthe Trust and holds shares of one or more portfolios of the plan. When you establish an account, amounts you contribute will be invested in theportfolio(s) you select. The portfolios will be invested in shares of the AIM mutual funds described in this Enrollment Handbook. Other than theAIM Money Market Fund, the underlying AIM mutual funds in which the portfolios invest are each a ‘‘fund of funds’’ that invest in other underlyingAIM mutual funds.

The Allocation Portfolios are available as stand-alone investment options, offering you a choice from among five asset allocation models utilizingbroad asset classes. The Allocation Portfolios are as follows:m AIM Growth Allocation Fund 529 Portfoliom AIM Moderate Growth Allocation Fund 529 Portfoliom AIM Moderate Allocation Fund 529 Portfoliom AIM Moderately Conservative Allocation Fund 529 Portfoliom AIM Conservative Allocation Fund 529 Portfolio

The Enrollment-Based Portfolios are designed to fit particular investment time horizons, based on the anticipated time until the beneficiary’scollege enrollment. The Enrollment-Based Portfolios are as follows:m AIM 13+ Years to College Portfolio (‘‘13+ Years to College Portfolio’’)m AIM 7-12 Years to College Portfolio (‘‘7-12 Years to College Portfolio’’)m AIM 4-6 Years to College Portfolio (‘‘4-6 Years to College Portfolio’’)m AIM 1-3 Years to College Portfolio (‘‘1-3 Years to College Portfolio’’)m AIM College Now Portfolio (‘‘College Now Portfolio’’)

The AIM Money Market Fund 529 Portfolio invests all of its assets in AIM Money Market Fund.The mutual funds the plan utilizes as investment vehicles are:m AIM Growth Allocation Fundm AIM Moderate Growth Allocation Fundm AIM Moderate Allocation Fundm AIM Moderately Conservative Allocation Fundm AIM Conservative Allocation Fundm AIM Money Market Fund

Invesco Aim Distributors, Inc. (the ‘‘distributor’’) has engaged certain broker-dealers and financial institutions (each referred to below as a‘‘financial advisor’’) to assist in the sale of plan accounts to those interested in saving for college education expenses. You will be able to openaccounts and make contributions to the plan through any financial advisor who has entered into an agreement with the distributor.

1

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OverviewEligibility. An account in the plan may be established by virtually any adult person or entity with a valid Social Security Number or other federal

Taxpayer Identification Number, including a custodian under a state Uniform Gifts to Minors Act or Uniform Transfers to Minors Act. An account maybe established regardless of the residence or income level of the account owner or the beneficiary.

Contribution Amounts. You are not required to make an annual contribution. However, the minimum initial contribution is $500 per portfoliowith subsequent investments of at least $50 per portfolio, or with a Systematic Purchase Plan, you may open an account with a minimum initialcontribution of $50 per portfolio and subsequent investments of $25 per portfolio.

Contribution Limits. Contributions may be made to an account at any time. However, the total amount of all contributions to all accounts inthe Trust for the same beneficiary may not exceed $360,000, and no additional contribution may be made to an account to the extent that it wouldcause the fair market value of all accounts in the Trust for the beneficiary to exceed $360,000. The contribution limit applies to the aggregateamount in all accounts for a particular beneficiary in the Trust, including accounts in the College Savings Plan of Nebraska, The State Farm˛ CollegeSavings Plan and the TD AMERITRADE 529 College Savings Plan.

Qualified Withdrawals. Shares in your account may be redeemed to pay the beneficiary’s higher education costs. Subject to certain limits,such costs include the beneficiary’s room and board expenses.

Federal Income Tax Benefits. Federal income taxes on investment earnings in an account are deferred until there is a distribution from theaccount. Moreover, a distribution is free from federal income tax if it is used to pay the higher education costs of the beneficiary. The earningsportion of a non-qualified withdrawal will be considered ordinary income to the recipient for federal income tax purposes, and the recipient will beliable for a federal penalty tax equal to 10% of the earnings portion.

Gift Tax Treatment. For federal gift tax purposes, a contribution to an account is considered a gift from the contributor to the beneficiary thatis eligible for the annual gift tax exclusion. For 2008, the annual exclusion is $12,000 per donee. This means that you may contribute up to $12,000to an account in 2008 without the contribution being considered a taxable gift (assuming you make no other gifts to the beneficiary in 2008). Inaddition, if your total contributions to an account during a year exceed the annual exclusion for that year, you may elect to have the amount youcontributed that year treated as though you made one-fifth of the contribution that year, and one-fifth of the contribution in each of the next fouryears. (Such an election must be made on a federal gift tax return.) This means that you may contribute up to $60,000 to an account in 2008without the contribution being considered a taxable gift (assuming you make no other gifts to the beneficiary in 2008 or in any of the succeeding fouryears). Moreover, a married contributor whose spouse elects on a federal gift tax return to have gifts treated as ‘‘split’’ with the contributor maycontribute up to twice that amount ($120,000) without the contribution being considered a taxable gift. The annual exclusion is indexed forinflation and therefore is expected to increase over time.1

School Choice. The beneficiary may attend any school qualified to participate in federal student aid programs administered by the U.S.Department of Education. This includes most post-secondary educational institutions and many vocational schools, both public and private. A list ofthese institutions may be located on the Department of Education Internet Web site, located at http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet.

Significant Agreements. The Trustee has entered into a management contract with the program manager, pursuant to which the programmanager provides day-to-day administrative and marketing services to the Trust. The management contract has a ten (10) year term, effective January2001. The trustee and program manager have, in turn, entered into a marketing and administrative services agreement with the investment manager,distributor and servicing agent (the ‘‘Invesco Aim Agreement’’) to manage, market and service accounts in the plan. The Invesco Aim Agreement hasan eight (8) year term, effective December 2001.

Definitions of Key Termsaccounta separate account established by the account owner for a particular beneficiary that holds shares of one or more portfolios of the plan.

account ownerthe person or entity that has opened an account in the plan (also referred to herein as ‘‘you’’). The account owner may be an individual, a custodianunder a Uniform Gifts to Minors Act or Uniform Transfers to Minors Act account, or a trustee of a trust. In addition, the account owner may be aState or local government or an organization described in Section 501(c)(3) of the Code if the account is part of a scholarship program operated

1 See page 29, ‘‘Federal Gift, Estate and Generation-Skipping Transfer Taxes.’’

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by such government or organization. When establishing an account, the account owner must choose from among Class A, B or C shares. The accountowner may make contributions to the account, designate and change the beneficiary, request withdrawals, and request investment changes withinan account.

beneficiarythe individual designated in the Account Application as the beneficiary of the account at the time the account is established, or the individual who isdesignated as the new beneficiary when beneficiaries are changed. The beneficiary may be a resident of any state. In the case of an accountestablished by a State or local government or a charitable organization as part of a scholarship program, the beneficiary is any individual receivingthe benefits accumulated in the account as a scholarship.

CDSCsthe contingent deferred sales charges that may be applicable on a redemption of shares.

Class A, B or Cthe class of shares offered within each portfolio described in this handbook and selected by the account owner in the Account Application. Class Bshares may not be purchased for an account once the beneficiary reaches his or her 13th birthday. Purchase orders for Class B shares are limited toamounts less than $100,000.

Codethe Internal Revenue Code of 1986, as may be amended from time to time.

contributioncash deposited into an account and invested in shares of a portfolio for the benefit of a beneficiary, after the deduction of any applicable salescharges. Contributions may be made by check, money order or electronic funds transfer. Contributions may also be made by a direct transfer offunds from another qualified tuition program or a Coverdell Education Savings Account (formerly known as an ‘‘Education IRA’’). Under certaincircumstances, amounts received from the redemption of qualified United States Savings Bonds and contributed to an account may not be includedin the income of the owner of the bonds.

distributorInvesco Aim Distributors, Inc.

higher education coststhe account beneficiary’s qualified higher education expenses (as defined in Section 529(e)(3) of the Code). The higher education costs of anaccount beneficiary will be reduced to the extent the beneficiary’s education expenses are taken into account in determining any Hope ScholarshipCredit or Lifetime Learning Credit and to the extent the beneficiary receives any tax-free educational assistance payments.

institution of higher educationan eligible educational institution, as defined in Section 529 of the Code. This generally includes any accredited post-secondary educational institutionin the United States offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognizedpost-secondary credential. Certain proprietary institutions, post-secondary vocational institutions, and foreign schools also are institutions of highereducation. These institutions must be eligible to participate in U.S. Department of Education student aid programs.

Investment Councilthe Nebraska Investment Council. The Investment Council is comprised of five members appointed by the Governor and approved by the NebraskaLegislature. The State Treasurer and the Director of the Nebraska Public Employees Retirement System are ex officio, nonvoting members of theInvestment Council.

investment managerInvesco Aim Capital Management, Inc., also referred to as ‘‘Invesco Aim.’’

member of the familyAn individual who is related to the beneficiary of an account in any of the following ways:

m a son or daughter, or a descendant of either;

m a stepson or stepdaughter;

m a brother, sister, stepbrother or stepsister;

m the father or mother, or an ancestor of either;

m a stepfather or stepmother;

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m a son or daughter of a brother or sister;

m a brother or sister of the father or mother;

m a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law;

m the spouse of the beneficiary or the spouse of any of the foregoing individuals; or

m a first cousin

For purposes of determining who is a member of the family, a legally adopted child of an individual is treated as the child of such individual byblood. The terms ‘‘brother’’ and ‘‘sister’’ include a brother or sister by the half-blood.

non-qualified withdrawalany distribution from an account to the extent it is not a qualified withdrawal or a qualified rollover distribution.

Participation Agreementthe legally binding agreement between an account owner and the Trust. The current form of Participation Agreement may be found on page 31 of thishandbook. The Trustee may amend the Participation Agreement at any time.

program managerUnion Bank and Trust Company of Lincoln, Nebraska.

qualified rollover distributiona distribution or transfer from an account that is deposited within sixty (60) days of the distribution or transfer to:

m another qualified tuition program for the benefit of the beneficiary, provided that any such transfer does not occur within twelve months from thedate of a previous transfer to a qualified tuition program for the benefit of the beneficiary; or

m another account in the Trust, or another account in any other qualified tuition program, for the benefit of an individual who is a member of thefamily of the beneficiary.

qualified withdrawala withdrawal from an account that is used to pay the higher education costs of the beneficiary.

servicing agentInvesco Aim Investment Services, Inc.

Trusteethe Nebraska State Treasurer.

Frequently Asked QuestionsDESCRIPTION OF THE PLAN

How does the plan work?To begin saving through the plan, you must complete an Account Application to establish an account for the benefit of a named beneficiary.Contributions to your account will be invested in shares of the portfolio or portfolios you choose after deducting any sales charges that may beapplicable. When your beneficiary incurs higher education costs, shares may be redeemed from your account to pay the higher education costs forthe beneficiary.

What is the legal structure of the plan?The Nebraska State Treasurer acts as Trustee and is responsible for the overall administration of the plan. The Nebraska Investment Council isresponsible for the investment of money in the administrative fund, endowment fund, and the program fund, including the selection of all investmentoptions. Amounts contributed to the plan will be invested in the Trust. The Trust holds the assets of the plan, including contributions to accountsestablished by account owners.

The program manager, servicing agent and distributor work with the Treasurer to provide day-to-day administrative, operational, and marketingservices to the plan.

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What types of costs may be paid with account funds?Account funds may be used to pay the higher education costs of the beneficiary. These generally include tuition, fees, books, supplies, and equipmentrequired for the enrollment or attendance of the beneficiary at an institution of higher education, and expenses for special needs services in the caseof a special needs beneficiary that are incurred in connection with such enrollment or attendance. Subject to certain limitations, higher educationcosts also include the room and board expenses of a student enrolled on at least a half-time basis. Institutions of higher education generally includeaccredited, post-secondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professionaldegree or another recognized post-secondary credential, including certain proprietary, post-secondary vocational, and foreign institutions. Theinstitution must be eligible to participate in U.S. Department of Education student aid programs.

OPENING AND MAINTAINING AN ACCOUNT

Who may open an account?An account may be established by an individual, a custodian under a state’s Uniform Gifts to Minors Act (‘‘UGMA’’) or Uniform Transfers to MinorsAct (‘‘UTMA’’), or a trust. Separate accounts may be established for the same beneficiary by more than one person. In addition, an account may beestablished by a State or local government or an organization described in Section 501(c)(3) of the Code as part of a scholarship programoperated by such government or organization.

If the prospective account owner is a trust, the trustee should consult with his or her legal and tax advisors prior to establishing an account. Thishandbook does not attempt to address the application of state or federal income, gift, estate or generation-skipping transfer taxes to investments inthe plan made by a trust or the propriety of such an investment under state trust law.

If a custodian holding assets under a state’s UGMA or UTMA statute establishes an account, the minor for whose benefit the custodian holds theassets must be designated as the beneficiary of the account. The custodian will be the account owner until the beneficiary reaches the age of majorityunder the applicable UGMA or UTMA statute, at which time the beneficiary will become the account owner. Before the beneficiary will be permittedto transact business in respect of the account, he or she will be required to complete an Account Application (and thereby enter into a ParticipationAgreement). The UGMA/UTMA custodian, acting as the account owner, will not be permitted to change the beneficiary. Neither Invesco Aim, thedistributor, the servicing agent, the program manager, the Trustee, nor the State of Nebraska will assume the responsibility to ensure, or incurliability for failing to ensure, that UGMA/UTMA custodians apply assets held under UGMA/UTMA custodianships for proper purposes.

Accounts may be opened on your behalf by financial advisors who have entered into an agreement with the distributor. You should contact yourfinancial advisor to determine if they offer the plan.

How do I open an account?To open an account, you must complete an Account Application and return it to your financial advisor or the servicing agent. By completing anAccount Application, you agree to be bound by the terms and conditions of the Participation Agreement, which will establish all of your rights,benefits and obligations as an account owner. The form of the Participation Agreement is found on page 31. If you wish to make contributions formore than one beneficiary, you must complete a separate Account Application and establish a separate account for each beneficiary. You shouldnote, however, that any amendments to the Code or Nebraska laws or regulations relating to the plan may automatically amend the terms of theParticipation Agreement, and the Trustee may amend the Participation Agreement for any reason by giving you written notice of such amendments.

You may open an account through any financial advisor who has entered into an agreement with the distributor to offer the plan to its customers.When you open your account, you must choose one or more portfolios in which you wish to invest and a class of shares. The various share classeshave different fee structures which are designed to compensate your financial advisor and pay the costs associated with the maintenance of youraccount. The fee structure associated with each share class is discussed in detail below.

Contributions to your account will be invested in the portfolios and share classes that you choose after the deduction of applicable sales charges.Class B shares may not be purchased for an account once the beneficiary reaches his or her 13th birthday. If you are investing in Class B shares,contributions received on or after the beneficiary’s 13th birthday will be invested in Class C shares unless you direct the servicing agent otherwise inwriting. Purchase orders for Class B shares are limited to amounts less than $100,000.

If your employer has an agreement with a financial advisor to offer the plan to employees, you may open an account through the employer’sintranet. In this case, you will be asked to complete an Account Application electronically and establish a Systematic Purchase Plan. When youtransmit the Account Application to the servicing agent, by completing all required data fields and accepting the terms of the Participation Agreement,your account will be established.

Accounts may also be opened on your behalf by certain financial advisors. In this case, the financial advisor will provide you with a copy of thishandbook (which includes the Participation Agreement) and have you complete an Account Application, which the financial advisor will keep. Thefinancial advisor will then transmit an order, on your behalf, to the servicing agent to open your account. The financial advisor will be acting asyour agent in the course of establishing the account, and the Trust will rely on all information transmitted by the financial advisor. Neither InvescoAim, the distributor, the servicing agent, the program manager, the Trustee, nor the State of Nebraska will assume responsibility to ensure or incur

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liability for failing to ensure the accuracy or completeness of any information transmitted by your financial advisor in the course of establishing anaccount on your behalf.

May I change the ownership of a plan account?You may change ownership of your account to any individual or entity that is eligible to be an account owner. When you transfer ownership of youraccount, you are not required to change the beneficiary. A change of ownership will only be effective to transfer ownership if the assignment isirrevocable and transfers all ownership rights. To be effective, a transfer of ownership also requires the new account owner to complete an AccountApplication (and thereby enter into a Participation Agreement). You should consult your tax advisor regarding the potential gift and/or generation-skipping transfer tax consequences of changing ownership of your account.

Can I name a successor to take over ownership of my account upon my death?Yes. On your Account Application, you may designate a successor account owner to take ownership of your account in the event of your death. If youhave already established an account, you may designate a successor account owner or change your designation by completing the appropriate formwhich may be obtained by contacting your financial advisor or the servicing agent.

If you do not designate a successor account owner, then your estate, acting through your personal representative, will become the successoraccount owner. Before the successor account owner will be permitted to transact business in respect of your account, he or she will be required toprovide a certified copy of your death certificate and complete an Account Application (and thereby enter into a Participation Agreement).

DESIGNATING A BENEFICIARY

Who may be a beneficiary?Any individual who has a valid federal Taxpayer Identification Number, such as a Social Security Number, may be a beneficiary. A beneficiary need notbe a resident of any particular state.

Each account may have only one designated beneficiary. An account owner may designate himself or herself as the account beneficiary. The plandoes not have any age limits on who may be a beneficiary.

If an Account is established by a State or local government (or agency or instrumentality thereof) or an organization described inSection 501(c)(3) of the Internal Revenue Code as part of a scholarship program operated by such government or organization, the beneficiary is notrequired to be designated at the time the account is established. Such government or organization must designate the beneficiary prior to anyqualified withdrawals from the account.

Must I be related to the beneficiary?No, you do not need to have any particular relationship with the beneficiary. However, if you change the beneficiary in the future, the new beneficiarymust be a member of the family of the former beneficiary in order to avoid a taxable transaction.

May I change beneficiaries?Yes, as the account owner, you may change the beneficiary at any time. You may also change the investment allocations within your account when youchange the beneficiary. If the new beneficiary is a member of the family of the former beneficiary, the change will have no federal income taxconsequences. If the new beneficiary is not a member of the family of the former beneficiary, the change will be treated as a non-qualifiedwithdrawal that is subject to federal income taxes and a tax penalty.

If the source of contributions to an account was a UGMA or UTMA custodianship, the beneficiary of the account may not be changed until theminor attains the legal age necessary to control the UGMA or UTMA assets.

To change the beneficiary of an account, you should contact your financial advisor or the servicing agent.

CONTRIBUTING TO AN ACCOUNT

How do I make contributions to my account?You can make contributions to an account by check, money order, Systematic Purchase Plan, or electronic funds transfer. Contributions may also bemade by a direct transfer of funds from an AIM mutual fund account, another qualified tuition program, a Coverdell Education Savings Account(‘‘CESA’’) (formerly known as an ‘‘Education IRA’’) or UGMA/UTMA account. In addition, under certain circumstances, amounts received from theredemption of qualified United States Savings Bonds and contributed to an account can be excluded from the income of the owner of the bonds.Checks and money orders should be made payable to Invesco Aim Investment Services, Inc. You may also be able to make contributions throughyour financial advisor.

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With a Systematic Purchase Plan, you can initiate contributions or change your contribution amount, or change your bank information or thefrequency of your contributions by completing the applicable form supplied by the servicing agent.

The servicing agent will assume that the entire amount of any contribution that is a rollover contribution from a CESA, a qualified United StatesSavings Bond, or another qualified tuition program is earnings in the account receiving the contribution until the servicing agent receivesappropriate documentation showing the actual earnings portion of the contribution. This assumption is required by the Internal Revenue Service. Formore information regarding transfers and rollovers, see ‘‘May I transfer funds from another qualified tuition program?’’ below. For moreinformation regarding the tax consequences associated with the assumption that a contribution consists solely of earnings, see ‘‘Additional TaxInformation’’ below.

The plan permits contributions to be made to an account that you establish by persons other than you. However, under current law, the gift andgeneration-skipping transfer tax consequences of such contributions are unclear. Accordingly, any person other than you who plans to make acontribution to an account established by you should first consult his or her legal or tax advisor.

May I transfer funds from another qualified tuition program?Yes, you may transfer funds from another qualified tuition program to the plan. If the transfer is a qualified rollover distribution, the transfer will haveno federal income tax consequences. If the transfer is not a qualified rollover distribution, a portion of the transfer may be includible in your taxableincome. Additionally, the program from which you are transferring funds may impose other restrictions on such a transfer, so you shouldinvestigate this option thoroughly before requesting a transfer.

When you transfer funds from another qualified tuition program, the servicing agent will assume that the transfer consists solely of earnings unlessand until it receives a statement from the program from which the funds were distributed breaking out the contributions and earnings portions of thedistribution. For more information regarding the tax consequences associated with the assumption that a contribution consists solely of earnings,see ‘‘Additional Tax Information’’ below. The assumption that a contribution consists solely of earnings is a requirement imposed by the InternalRevenue Service.

Can non-owners make contributions to an account?Yes, anyone can make contributions to an account, including the beneficiary. However, only the account owner is eligible for a Nebraska State incometax deduction, and the account owner maintains control over all contributions to an account, including the right to change the investmentallocations, change beneficiaries, and make withdrawals. In addition, under current law, the gift and generation-skipping transfer tax consequencesof a contribution by anyone other than the account owner are unclear. Accordingly, if a person other than the account owner plans to make acontribution to an account, he or she should consult his or her own tax or legal advisors as to the consequences of making a contribution.

What happens to contributions over the maximum limit?The servicing agent will not knowingly accept contributions in excess of the applicable limit. If contributions are made in excess of the applicablelimit, the servicing agent will distribute the excess and any earnings (or less any loss) attributable to such excess contribution, and the distributionwill be treated as a non-qualified withdrawal that may be subject to a federal penalty tax, but no CDSC will be assessed by the servicing agent.

CHOOSING INVESTMENT OPTIONS

How are my plan contributions invested?Contributions to an account will be invested in the portfolio and share class that you choose. You may exchange shares within a given share classamong the portfolios offered by the Trust once per calendar year and also upon a change in the beneficiary without penalty.

Each portfolio of the plan invests in Class A shares of the underlying AIM mutual funds (Cash Reserve shares of AIM Money Market Fund) withoutpaying an initial sales charge. The portfolios will invest in shares of the funds in accordance with an Investment Policy adopted for each portfolio bythe Investment Council in consultation with the investment manager.

The plan consists of eleven investment portfolios — five Allocation Portfolios, five Enrollment-Based Portfolios and one Individual Fund Portfolio.The Allocation Portfolios and the Enrollment-Based Portfolios each invest all of their assets in an underlying AIM Allocation Fund as described morefully below. The AIM Allocation Funds are each a ‘‘fund of funds’’ that invest their assets in other underlying mutual funds advised by Invesco AimAdvisors, Inc. Each Asset Allocation Fund seeks to meet its investment objective by building a portfolio of mutual fund investments that meet a targetinvestment allocation between equity and fixed-income mutual funds. Each Asset Allocation Fund’s performance depends on the investmentperformance of the underlying funds in which it invests. Therefore, the risks of investing in the Asset Allocation Funds are the same as the risksassociated with an investment in the underlying funds. A more detailed description of each of the plan’s investment portfolios is set forth below.

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Allocation PortfoliosThe Allocation Portfolios invest all of their assets in the Class A shares of the AIM Allocation Fund described below. The underlying AIM AllocationFund in which each Allocation Portfolio invests remains the same and does not change based on the age of the beneficiary.

AIM Growth Allocation Fund 529 PortfolioThe AIM Growth Allocation Fund 529 Portfolio is an investment portfolio that seeks long-term growth of capital. The Portfolio invests all of its assetsin the AIM Growth Allocation Fund, which seeks long-term growth of capital consistent with a higher level of risk relative to the broad stock market.The AIM Growth Allocation Fund is a ‘‘fund of funds’’ that seeks to meet its objective by building a portfolio of mutual fund investments that has ahigher level of risk than the S&P 500 Index. The fund’s target allocation is to invest approximately 95% of its total assets in underlying AIM mutualfunds that invest primarily in equity securities, and approximately 5% of its total assets in underlying AIM mutual funds that invest primarily in fixed-income securities. Approximately 25% of the assets that are invested in equity funds will be allocated to equity funds that invest primarily in foreignsecurities. The fund’s investment performance, and therefore the Portfolio’s performance, depends on the investment performance of the underlyingfunds in which it invests. For additional information regarding the fund, see ‘‘Additional Information Regarding the AIM Funds’’ beginning onpage 35.

AIM Moderate Growth Allocation Fund 529 PortfolioThe AIM Moderate Growth Allocation Fund 529 Portfolio is an investment portfolio that seeks long-term growth of capital. The Portfolio invests all ofits assets in the AIM Moderate Growth Allocation Fund, which seeks long-term growth of capital consistent with a higher level of risk relative to thebroad stock market. The AIM Moderate Growth Allocation Fund is a ‘‘fund of funds’’ that seeks to meet its objective by building a portfolio ofmutual fund investments that has a higher level of risk than the S&P 500 Index. The fund’s target allocation is to invest 80% of its total assets inunderlying AIM mutual funds that invest primarily in equity securities and 20% of its total assets in underlying AIM mutual funds that invest primarilyin fixed-income securities. Approximately 22% of the assets that are invested in equity funds will be allocated to equity funds that invest primarily inforeign securities. The fund’s investment performance, and therefore the Portfolio’s performance, depends on the performance of the underlying AIMmutual funds in which it invests. For additional information regarding the fund, see ‘‘Additional Information Regarding the AIM Funds’’ beginning onpage 35.

AIM Moderate Allocation Fund 529 PortfolioThe AIM Moderate Allocation Fund 529 Portfolio is an investment portfolio that seeks total return. The Portfolio invests all of its assets in the AIMModerate Allocation Fund, which seeks total return consistent with a moderate level of risk relative to the broad stock market. The AIM ModerateAllocation Fund is a ‘‘fund of funds’’ that seeks to meet its investment objective by building a portfolio of mutual fund investments that has amoderate level of risk relative to the S&P 500 Index. The fund’s target allocation is to invest 60% of its total assets in underlying AIM mutual fundsthat invest primarily in equity securities and 40% of its total assets in underlying AIM mutual funds that invest primarily in fixed-income securities.Up to 20% of the assets that are invested in equity funds will be allocated to equity funds that invest primarily in foreign securities. The fund’sinvestment performance, and therefore the Portfolio’s performance, depends on the investment performance of the underlying funds in which itinvests. For additional information regarding the fund, see ‘‘Additional Information Regarding the AIM Funds’’ beginning on page 35.

AIM Moderately Conservative Allocation Fund 529 PortfolioThe AIM Moderately Conservative Allocation Fund 529 Portfolio is an investment portfolio that seeks total return. The Portfolio invests all of its assetsin the AIM Moderately Conservative Allocation Fund, which seeks total return consistent with a lower level of risk relative to the broad stock market.The AIM Moderately Conservative Allocation Fund is a ‘‘fund of funds’’ that seeks to meet its objective by building a portfolio of mutual fundinvestments that has a lower level of risk than the S&P 500 Index. The fund’s target allocation is to invest 60% of its total assets in underlying AIMmutual funds that invest primarily in fixed-income securities and 40% of its total assets in underlying AIM mutual funds that invest primarily in equitysecurities. The fund’s investment performance, and therefore the Portfolio’s performance, depends on the investment performance of theunderlying funds in which it invests. For additional information regarding the fund, see ‘‘Additional Information Regarding the AIM Funds’’ beginningon page 35.

AIM Conservative Allocation Fund 529 PortfolioThe AIM Conservative Allocation Fund 529 Portfolio is an investment portfolio that seeks total return. The Portfolio invests all of its assets in the AIMConservative Allocation Fund, which seeks total return consistent with a lower level of risk relative to the broad stock market. The AIM ConservativeAllocation Fund is a ‘‘fund of funds’’ that seeks to meet its objective by building a portfolio of mutual fund investments that has a lower level of riskthan the S&P 500 Index. The fund’s target allocation is to invest 65% of its total assets in underlying AIM mutual funds that invest primarily in fixed-income securities, 25% of its total assets in underlying AIM mutual funds that invest primarily in equity securities and 10% in cash or cash

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equivalents. The fund’s investment performance, and therefore the Portfolio’s performance, depends on the investment performance of theunderlying funds in which it invests. For additional information regarding the fund, see ‘‘Additional Information Regarding the AIM Funds’’ beginningon page 35.

Enrollment-Based PortfoliosThe Enrollment-Based Portfolios are a series of five investment portfolios that are designed to fit particular investment time horizons. The Enrollment-Based Portfolios also invest all of their assets in certain AIM Allocation Funds. Contributions and investment earnings will be invested in the AIMAllocation Funds based on the anticipated time to college enrollment of the beneficiary, and will typically be invested more heavily in equity mutualfunds when the beneficiary is younger and more heavily in fixed-income and money market mutual funds as the beneficiary nears enrollment.

If you invest in the Enrollment-Based Portfolios, the investment manager will reallocate your investments as the beneficiary nears enrollment age.In this case, you will be asked to provide (on the Account Application) your beneficiary’s estimated year of enrollment. The investment manager willmake the determination as to whether your investments are scheduled to move to the next portfolio on an annual basis. Thus, if you open anaccount in 2008 and indicate on your Account Application that your beneficiary is expected to begin enrollment in 2012, the investment manager willreallocate your investments on a schedule which will have you invested in the College Now Portfolio before August 1, 2012. If you elect to invest inthe Enrollment-Based Portfolios in an account for a beneficiary who is under age 18, and you do not provide an estimated time to enrollment, yourinitial investment will be made based on the assumption that enrollment will begin in the year in which the beneficiary turns 18 years of age.

The underlying AIM Allocation Funds in which each Enrollment-Based Portfolio invests are as follows:– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Enrollment-Based

Portfolio Underlying AIM Allocation Fund

13+ Years to College AIM Growth Allocation Fund

7-12 Years to College AIM Moderate Growth Allocation Fund

4-6 Years to College AIM Moderate Allocation Fund

1-3 Years to College AIM Moderately Conservative Allocation Fund

College Now AIM Conservative Allocation Fund

The Allocation and Enrollment-Based Portfolios invest in the same Class A shares of the underlying AIM Allocation Funds. For example, the AIMGrowth Allocation Fund 529 Portfolio utilizes the same underlying AIM Allocation Fund as the 13+ Years to College Portfolio, and the AIM ModerateAllocation Fund 529 Portfolio utilizes the same underlying AIM Allocation Fund as the 4-6 Years to College Portfolio.

Individual Fund PortfolioIn addition to the Allocation Portfolios and the Enrollment-Based Portfolios, the plan offers the AIM Money Market Fund 529 Portfolio. The AIMMoney Market Fund 529 Portfolio invests all of its assets in Cash Reserve shares of the AIM Money Market Fund. Since the portfolio invests all of itsassets in a single underlying mutual fund, its performance is wholly dependent on the performance of the underlying mutual fund.

Descriptions of the underlying investment programs and the risks associated with each fund’s investment program can be found on page 35,under, ‘‘Additional Information Regarding the AIM Funds.’’ The descriptions are taken from the prospectuses of the underlying funds and areintended to summarize their respective investment objectives as well as their principal investment strategies and risks.

For more complete information regarding any underlying fund, you may request a prospectus and/or statement of additional information from theservicing agent.

How is the value of my account calculated?The assets in your account represent a portion of each portfolio and share class that you have selected, expressed as a number of shares. Theportfolios, other than AIM Money Market Fund 529 Portfolio, each invest all of their assets in an underlying AIM Allocation Fund. The AIM AllocationFunds are each a ‘‘fund of funds’’ that invest their assets in other mutual funds (‘‘AIM mutual funds’’) advised by Invesco Aim Advisors, Inc.

The net asset value (‘‘NAV’’) of each share class of each portfolio is based on the value of the underlying fund in which a portfolio invests, and isdetermined by dividing:

m the portfolio’s assets attributable to that share class less any liabilities attributable to that share class (including administrative service fees), by

m the number of outstanding shares in such class.

The NAV for each class of each portfolio offered by the plan is calculated each business day promptly after the value of each underlying fund isdetermined. The value of your account will increase or decrease depending on the value of each underlying fund.

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The value of each underlying fund is determined in accordance with its current prospectus. As the underlying funds do not trade on an exchange,each underlying fund’s value is based on each AIM mutual fund’s individual NAV. The AIM mutual funds value portfolio securities for which marketquotations are readily available at market value. They value short-term investments maturing within 60 days at amortized cost, which approximatesmarket value. AIM Money Market Fund values all of its securities at amortized cost.

The AIM mutual funds value all other securities and assets at their fair value. Securities and other assets quoted in foreign currencies are valued inU.S. dollars based on the prevailing exchange rates. If market quotations are available and reliable for foreign exchange traded equity securities, thesecurities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York StockExchange (‘‘NYSE’’), closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of thecustomary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the fund may fair value thesecurity. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using proceduresapproved by the fund’s Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of anindependent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreignsecurity trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is notreflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered bythe independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, AmericanDepository Receipts (‘‘ADRs’’) and domestic and foreign index futures. Because some of the AIM mutual funds may invest in securities that areprimarily listed on foreign exchanges that trade on days when such funds do not price their shares, the value of those funds’ assets may change ondays when you will not be able to purchase or redeem portfolio shares.

Securities held in the AIM mutual funds for which market quotations are not readily available or are unreliable are valued at fair value asdetermined in good faith by or under the supervision of the officers of the Delaware statutory trust of which the underlying funds are series, followingprocedures approved by the fund’s Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providersand other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each AIM mutual fund determines the net asset value of its shares on each day the NYSE is open for business, as of the close of the customarytrading session.

You may purchase and redeem shares of a portfolio during the hours of the customary trading session of the NYSE. Contributions to your accountwill be credited at the share value of the applicable share class of the portfolio you select, based on the NAV of the portfolio next calculated after theservicing agent receives your order in good form.

INVESTMENT PERFORMANCE

How have the portfolios performed?The following tables show performance in two ways: Performance is shown at NAV, which includes the plan’s expenses (including administrativeservice fees) and the expenses of the underlying funds, but not sales charges. Performance figures are also shown reflecting the plan’s expenses andthe expenses of the underlying funds, as well as the imposition of the maximum applicable sales charges (initial sales charges with respect toClass A shares and CDSCs with respect to Class B and C shares). Because the impact of the $25 annual account fee would be spread across all of theportfolios in which you invest, none of the performance figures reflect the impact of that fee.

The Allocation and Enrollment-Based Portfolios’ performance that predates the portfolios’ inception dates represent hypothetical results that reflectthe historical results of the oldest share class of the underlying AIM Allocation Fund in which each portfolio invests, adjusted to reflect the impact ofthe plan’s expenses. AIM Money Market Fund 529 Portfolio performance that predates the portfolio’s inception date represents hypothetical resultsthat reflect the historical results of the Cash Reserve Shares of AIM Money Market Fund, adjusted to reflect the impact of the plan’s expenses. Otherthan the AIM Money Market Fund 529 Portfolio, the plan’s prior investment portfolios were terminated as of March 23, 2007. Performanceinformation for such investment portfolios through December 31, 2006 is available on the plan’s website at http://www.invescoaim.com. Shares ofthe funds and the portfolios will have substantially similar performance, except to the extent that expenses differ.

All of the performance data shown represents past performance, which is not a guarantee of future results. Investment returnsand principal value will fluctuate so that your account may be worth more or less than the sum of your contributions. Forperformance data current to the most recent month-end, which may be higher or lower than the performance described below, visitthe plan’s website at http://www.invescoaim.com.

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Average Annual Total Returnsas of March 31, 2008

Class A Shares– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Since AcquiredOne Year Three Year1 Inception1

(Underlying)Including Including Including Portfolio Fund

Sales Sales Sales Inception InceptionPortfolio NAV Charges NAV Charges NAV Charges Date2 Date3

Allocation PortfoliosAIM Growth Allocation Fund 529 Portfolio (6.05)% (11.25)% 7.68% 5.69% 8.68% 7.13% 03/23/07 04/30/04AIM Moderate Growth Allocation Fund 529 Portfolio (5.04) (10.28) N/A N/A 8.34 6.24 03/23/07 04/29/05AIM Moderate Allocation Fund 529 Portfolio (3.92) (9.21) 5.88 3.90 6.70 5.17 03/23/07 04/30/04AIM Moderately Conservative Allocation Fund 529 Portfolio (0.90) (6.34) N/A N/A 5.30 3.29 03/28/07 04/29/05AIM Conservative Allocation Fund 529 Portfolio 0.40 (5.11) 4.13 2.18 4.02 2.53 03/23/07 04/30/04Enrollment-Based Portfolios13+ Years to College Portfolio (6.05) (11.25) 7.68 5.69 8.68 7.13 03/23/07 04/30/047-12 Years to College Portfolio (5.13) (10.36) N/A N/A 8.34 6.24 03/23/07 04/29/054-6 Years to College Portfolio (3.92) (9.21) 5.88 3.90 6.70 5.17 03/23/07 04/30/041-3 Years to College Portfolio (0.90) (6.36) N/A N/A 5.28 3.27 03/23/07 04/29/05College Now Portfolio 0.40 (5.11) 4.13 2.18 4.02 2.53 03/23/07 04/30/04

1 The three-year and since inception returns shown above for each of the Allocation and Enrollment-Based Portfolios are hypothetical returns based on the historical performance at net assetvalue of the oldest share class of the underlying AIM Allocation Funds in which each investment portfolio invests, adjusted to reflect the impact of the plan’s expenses.

2 On March 23, 2007, each of the plan’s prior Model and Individual Fund investment portfolios, other than the AIM Money Market Fund 529 Portfolio, were terminated and replaced by theinvestment portfolios set forth in the table above and described more fully in this Enrollment Handbook. On this date money was first transferred into the plan’s new investment portfolios;however, the new portfolios were available for purchase on March 26, 2007.

3 The Acquired (Underlying) Fund inception dates shown in the table above are the inception dates for the respective AIM Allocation Funds in which the plan’s new investment portfolios invest.


Class B Shares– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

AcquiredThree Year1 Since (Underlying)

One Year Inception1Including Portfolio Fund

Including Sales Including Inception InceptionPortfolio NAV CDSCs NAV CDSCs NAV CDSCs Date2 Date3

Allocation PortfoliosAIM Growth Allocation Fund 529 Portfolio (6.76)% (11.42)% 6.89% 6.00% 7.87% 7.26% 03/23/07 04/30/04AIM Moderate Growth Allocation Fund 529 Portfolio (5.83) (10.54) N/A N/A 7.53 6.63 03/23/07 04/29/05AIM Moderate Allocation Fund 529 Portfolio (4.62) (9.39) 5.11 4.19 5.91 5.26 03/23/07 04/30/04AIM Moderately Conservative Allocation Fund 529 Portfolio (1.74) (6.68) N/A N/A 4.47 3.52 10/01/07 04/29/05AIM Conservative Allocation Fund 529 Portfolio (0.40) (5.38) 3.34 2.39 3.23 2.53 03/23/07 04/30/04Enrollment-Based Portfolios13+ Years to College Portfolio (6.76) (11.42) 6.89 6.00 7.87 7.26 03/23/07 04/30/047-12 Years to College Portfolio (5.94) (10.64) N/A N/A 7.49 6.59 03/23/07 04/29/054-6 Years to College Portfolio (4.62) (9.39) 5.11 4.19 5.91 5.26 03/23/07 04/30/041-3 Years to College Portfolio (1.61) (6.53) N/A N/A 4.51 3.56 03/23/07 04/29/05College Now Portfolio (0.40) (5.38) 3.34 2.39 3.23 2.53 03/23/07 04/30/04




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Class C Shares– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

AcquiredThree Year1 Since (Underlying)

One Year Inception1Including Portfolio Fund

Including Sales Including Inception InceptionPortfolio NAV CDSCs NAV CDSCs NAV CDSCs Date2 Date3

Allocation PortfoliosAIM Growth Allocation Fund 529 Portfolio (6.76)% (7.69)% 6.89% 6.89% 7.87% 7.87% 03/23/07 04/30/04AIM Moderate Growth Allocation Fund 529 Portfolio (5.83) (6.78) N/A N/A 7.53 7.53 03/23/07 04/29/05AIM Moderate Allocation Fund 529 Portfolio (4.62) (5.58) 5.11 5.11 5.91 5.91 03/23/07 04/30/04AIM Moderately Conservative Allocation Fund 529 Portfolio (1.77) (2.75) N/A N/A 4.46 4.46 04/03/07 04/29/05AIM Conservative Allocation Fund 529 Portfolio (0.40) (1.40) 3.34 3.34 3.23 3.23 03/23/07 04/30/04Enrollment-Based Portfolios13+ Years to College Portfolio (6.76) (7.69) 6.89 6.89 7.87 7.87 03/23/07 04/30/047-12 Years to College Portfolio (5.94) (6.88) N/A N/A 7.49 7.49 03/23/07 04/29/054-6 Years to College Portfolio (4.62) (5.88) 5.11 5.11 5.91 5.91 03/23/07 04/30/041-3 Years to College Portfolio (1.71) (2.69) N/A N/A 4.47 4.47 03/23/07 04/29/05College Now Portfolio (0.40) (1.40) 3.34 3.34 3.23 3.23 03/23/07 04/30/04




Individual Fund Portfolio Average Annual Total Returnsas of March 31, 2008

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Acquired

One Year Three Years Five Years Ten Years (Underlying)Including Including Including Including Portfolio Fund

Sales Sales Sales Sales Inception InceptionAIM Money Market Fund 529 Portfolio1 NAV Charges NAV Charges NAV Charges NAV Charges Date Date2

Class A 3.70% — 3.38% — 2.19% — 2.64% — 10/21/02 10/16/93Class B 2.93 (2.07)% 2.61 1.65% 1.61 1.24% 2.00 2.00% 10/11/02 10/16/93Class C 2.93 1.93 2.61 2.61 1.61 1.61 2.00 2.00 10/14/02 10/16/93

1 AIM Money Market Fund 529 Portfolio performance that predates the portfolio’s inception date represents hypothetical results that reflect the historical results of the Cash Reserve Shares,adjusted to reflect the impact of the plan’s expenses.

2 The Acquired (Underlying) Fund inception date shown in the table above is the inception date for the Cash Reserve Shares in which the portfolio invests.

PLAN FEES AND EXPENSES

What does the plan cost?An annual account fee that is currently $25 will be deducted from your account each calendar year unless:

m the value of your account is equal to or greater than $25,000 on the date the fee would otherwise be deducted; or

m you are making investments through a Systematic Purchase Plan.

The annual account fee is currently assessed in December of each calendar year or when you close your account.

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In addition, an administrative service fee is accrued by each share class of a portfolio on a daily basis; this fee is not reflected as a direct chargeagainst your account on your account statements, but rather is included in the daily NAV calculation for each share class of each portfolio, asdiscussed previously. The administrative service fee varies depending on which class of shares you purchase:

m For Class A shares, an administrative service fee at an annual rate of 0.35% of the average daily net assets is paid by each portfolio.

m For Class B shares, an administrative service fee at an annual rate of 1.10% of the average daily net assets is paid by each portfolio. You should note,however, that the Class B shares you purchase will be converted to Class A shares at the end of the month which is eight years after the date onwhich the shares were purchased. Class B shares purchased prior to October 8, 2002, will convert to Class A shares at the end of the month whichis six years after the date on which the shares were purchased. Thus, the overall administrative service fee indirectly borne by you will decreaseover time.

m For Class C shares, an administrative service fee at an annual rate of 1.10% of the average daily net assets is paid by each portfolio.

Each account will also indirectly bear its pro rata share of the fees and expenses of the underlying AIM mutual funds in which it invests. Eachportfolio’s investment return will be net of the underlying fund’s expenses. Although the underlying fund’s fees and expenses are not chargedindividually to plan accounts, they will reduce the investment returns realized by each individual account owner.

The distributor will pay the program manager a fee at an annual rate of 0.20% of the average daily net assets invested in the plan plus $5 peraccount maintained by the servicing agent for services rendered by the program manager in connection with the administration of the plan. Thesefees are paid out of the distributor’s assets and do not add to the cost of investing in the plan as described above.

The cost of investing in the Trust through the other series of shares will differ from, and may be more or less than, the costs of investing throughthe plan.

What sales charges will I pay?Initial Sales ChargesWhen you open an account, you must choose from among three different classes of shares. An initial sales charge will generally be assessed onpurchases of Class A shares.

Investments made on a single day for multiple accounts in the plan may be aggregated for purposes of determining the applicable initial salescharge. Assets already invested in the plan and in the AIM fund may also be aggregated, as described below.

Class A shares of the portfolios are subject to the following initial sales charges:

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Investment Amount1 Sales Charge

Less than $25,000 5.50%$25,000 but less than $50,000 5.25%$50,000 but less than $100,000 4.75%$100,000 but less than $250,000 3.75%$250,000 but less than $500,000 3.00%$500,000 but less than $1,000,000 2.00%$1,000,000 or more 0.00%

An investment of $1,000,000 or more which is made on a single day (and which is therefore made without the imposition of an initial sales charge)is referred to generically below as a ‘‘large purchase.’’

Class A shares of the AIM Money Market Fund 529 Portfolio are not subject to an initial sales charge.Notwithstanding the schedules set forth above, Class A shares of any portfolio may be purchased without the imposition of an initial sales charge if

the purchase is made:

m by a transfer from an AIM mutual fund account other than an account in Cash Reserve Shares of AIM Money Market Fund or Class A shares of AIMTax-Exempt Cash Fund;

m by any current or retired officer, director or employee (or a member of their immediate family) of Invesco Aim, its affiliates, the funds, or of anyfoundation, trust or employee benefit plan established exclusively for the benefit of, or by, such persons;

1 This is the total amount invested (in one or more accounts within the plan) in Class A shares on a single day.

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m by any sales representative or employee (or a member of their immediate family) of members of the group of financial advisors engaged in the saleof plan shares, financial institutions that have arrangements with such selling group members, or service companies which provide systems andsupport essential to the operation of the plan to Invesco Aim or its affiliates; or

m through fee-based programs, at the discretion of the distributor.

Letters of IntentYou may also qualify to purchase Class A shares at reduced sales charges by completing the section of the Account Application entitled, ‘‘Letter ofIntent’’ and fulfilling the conditions of your letter of intent (your ‘‘LOI’’). Your LOI confirms that you intend to make, within the next 13 months,investments in the plan which, when combined, will fall into one of the levels set forth above. The terms of your LOI are as follows:

) Calculating the Initial Sales ChargeEach purchase of Class A shares made during the 13-month period will be subject to a sales charge that would be applicable to a single investment

of the total dollar amount committed to in your LOI (as set forth in the table above). It is your responsibility at the time of purchase to specify theaccount numbers that should be considered in determining the appropriate sales charge. The sales charge may be further reduced as describedbelow under ‘‘Rights of Accumulation,’’ if the servicing agent is advised of all other AIM fund accounts that you own at the time of your investment.

) Calculating the Number of Shares to be PurchasedPurchases made within 90 days before committing to a LOI will be applied toward completion of the LOI. In that case, the LOI effective date will be

the date of the first purchase within the 90-day period. Purchases made more than 90 days before committing to a LOI will be applied toward thecompletion of the LOI based on the value of those shares that is determined on the effective date of the LOI. If you meet the original obligation setforth in your LOI at any time during the 13-month period, you may revise the intended investment amount upward by submitting a written and signedrequest. This revision will not change the original expiration date. The servicing agent will process necessary adjustments upon the expiration orcompletion date of the LOI.

) Fulfilling the Intended InvestmentBy signing a LOI, you are not making a binding commitment to purchase additional shares, but if purchases made within the 13-month period do

not total the amount specified, you will be obligated to pay the applicable sales charge avoided by signing the LOI. If you fail to pay any such avoidedsales charges within twenty days following the expiration or termination of your LOI, the servicing agent will redeem a sufficient number of sharesheld in your account to pay such avoided sales charges. If you request a withdrawal prior to completing your LOI, the servicing agent will retain asufficient number of shares in your account to pay such avoided sales charges.

Rights of AccumulationYou may also qualify to purchase Class A shares at reduced sales charges based on the aggregate level of assets that you have invested in the plan anddirectly in qualifying1 shares of AIM funds (collectively, your ‘‘AIM Assets’’). If you qualify for a reduced sales charge, the reduced sales chargeapplies to the total amount of money being invested, even if only a portion of that amount exceeds the breakpoint for the reduced sales charge. Forexample, if you already own qualifying shares of an AIM fund with a value of $20,000 and wish to invest an additional $20,000 in a portfolio with amaximum initial sales charge of 5.50%, the reduced initial sales charge of 5.25% will apply to the full $20,000 purchase and not just to the $15,000in excess of the $25,000 breakpoint.

To qualify for the discount applicable to a particular purchase, you or your financial advisor must furnish the servicing agent with a list of theaccount numbers to be taken into consideration at the time the purchase is made.

Dollar Cost AveragingDollar cost averaging allows you to make automatic monthly or quarterly exchanges from the AIM Money Market Fund 529 Portfolio into one ormore other portfolios of the plan within the same share class. In order to take advantage of this option, you must start with a minimum balance of$5,000 in your AIM Money Market Fund 529 Portfolio. The automatic exchanges will occur on (or about) the 10th or 25th day of the month,whichever you specify, in the amount(s) you specify. The minimum amount you can exchange under this option is $25.

If you elect this option when you open your account, you may request another exchange once per calendar year and also upon a change of thebeneficiary of the account. After your account is opened, you may elect this option (1) if you have not requested any other exchanges during thecalendar year in which you intend to initiate the dollar cost averaging program or (2) upon a change of the beneficiary of the account.Furthermore, if you elect this option after your account is opened, you may only request a subsequent exchange within the same calendar year ifthere is a change of the beneficiary of the account.

If you are participating in the dollar cost averaging program, you may terminate the program (1) if you have not requested any other exchangesduring the calendar year in which you intend to terminate the program, and (2) upon a change of the beneficiary of the account. If you terminate

1 Qualifying shares are Class A shares of a Category I, II, III and IV funds, as set forth in each AIM fund’s Statement of Additional Information.

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the program, you may request a subsequent exchange during the same calendar year only upon a change of the beneficiary of the account. Thedollar cost averaging program will terminate automatically upon the depletion of your AIM Money Market Fund 529 Portfolio. After such a depletion,you may request a subsequent exchange during the same calendar year (1) if you have not requested any other exchanges during such calendaryear or (2) upon a change of the beneficiary of the account.

Class A Shares of the AIM Money Market Fund 529 PortfolioPurchases of Class A shares of the AIM Money Market Fund 529 Portfolio will not be taken into account in determining whether a purchase qualifiesfor a reduction in initial sales charges.

If you exchange Class A shares of the AIM Money Market Fund 529 Portfolio for Class A shares of any other portfolio and you have not previouslypaid a sales charge with respect to the investment being exchanged, you will be assessed the applicable sales charge on the purchase of shares in thenew portfolio.

Contingent Deferred Sales ChargesIf you purchase Class A Shares of any portfolio other than the AIM Money Market Fund 529 Portfolio as part of a large purchase, the newly purchasedshares will be subject to a 1.00% CDSC if you redeem them within 18 months following the date of such purchase.

There is no initial sales charge assessed on purchases of Class B or C shares. However, if you choose Class B or C shares, you may be subject to aCDSC upon withdrawal. The CDSC schedule for each class of shares is as follows:– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Year following purchase in which shares are redeemed: Class A1 Class B2 Class C

First None 5.00% 1.00%Second None 4.00 NoneThird None 3.00 NoneFourth None 3.00 NoneFifth None 2.00 NoneSixth None 1.00 NoneSeventh None None None

In determining whether to charge a CDSC upon withdrawal, the servicing agent will assume that you are taking a distribution of investmentearnings before any return of contributions and will not impose a CDSC on the portion of any distribution attributable to investment earnings. Theservicing agent will account for shares on a first-in-first-out-basis, which means that you will redeem shares in the order in which they werepurchased. Thus, even if your withdrawal includes a return of contributions, it will be processed with shares on which there is no CDSC due beingredeemed first. This accounting treatment is solely for purposes of applying CDSCs and is different from that which will be applied in order todetermine the tax consequences of a distribution.

No CDSC will be charged if you make a qualified withdrawal or a withdrawal on account of the death or disability of the beneficiary or the receiptof a scholarship or an appointment to a United States military academy by the beneficiary. Class B shares may not be purchased for an account oncethe beneficiary reaches his or her 13th birthday.

The sales charges applicable to Class A, B and C shares are in addition to any other fees charged against your account. Whether there are anyadditional transaction, service, administrative or other fees charged directly by a financial advisor with respect to an account is a matter between theaccount owner and the financial advisor and is not determined by the plan.

1 If you purchase Class A shares of any portfolio other than the AIM Money Market Fund 529 Portfolio as part of a large purchase, the newly purchased shares will be subject to a 1.00%CDSC if you redeem them within 18 months following the date of such purchase.

2 Class B shares purchased prior to October 8, 2002, will continue to be subject to the CDSC schedule in effect at the time of purchase: 2.50% if redeemed in the first year following dateof purchase; 2.00% if redeemed in the second or third year; 1.50% if redeemed in the fourth year; 1.00% is redeemed in the fifth year; 0.50% if redeemed in the sixth year; with noCDSC if redeemed thereafter.

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Will my financial advisor be paid for providing assistance with respect to my account?Yes, your financial advisor will be paid the following commissions and service fees by the distributor in connection with the sale of shares of eachportfolio and the maintenance of your account:

m Class A shares—your financial advisor will be paid a commission on each new purchase in the amount set forth below plus an amount equal to0.25%1 of the average daily net assets in your account which remain invested in Class A shares.

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Sales Charge Paid Financial Advisor’s Commission

5.50% 4.75%5.25% 4.50%4.75% 4.00%3.75% 3.00%3.00% 2.50%2.00% 1.60%0.00% 1.00%2

If you purchase Class A shares of the AIM Money Market Fund 529 Portfolio, your financial advisor is not paid a commission in connection withthat purchase. If you subsequently exchange those shares for shares of another portfolio and pay the corresponding sales charge, your financialadvisor will be paid a commission at the time of the exchange in the amount set forth in the table above.

m Class B shares—your financial advisor will be paid a 4.00% commission on each new purchase plus an amount equal to 0.25%3 of the averagedaily net assets in your account which remain invested in Class B shares for more than twelve months.

m Class C shares—your financial advisor will be paid a 1.00% commission on each new purchase plus an amount equal to 1.00%4 of the averagedaily net assets in your account which remain invested in Class C shares for more than twelve months.

Additional Fees

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Transaction Fees

Application fee NoneCancellation/withdrawal fee NoneChange in beneficiary NoneChange in investment portfolios None

1 For Class A shares of the AIM Money Market Fund 529 Portfolio, your financial advisor will be paid an amount equal to 0.15% of the average daily net assets in your account whichremain invested in Class A shares of the AIM Money Market Fund 529 Portfolio.

2 The 1.00% paid to financial advisors on large purchases of Class A shares is comprised of a 0.75% commission and advance of the first year service fee of 0.25%.3 For Class B shares of the AIM Money Market Fund 529 Portfolio, your financial advisor will be paid a 4.00% commission on each new purchase plus an amount equal to 0.15% of the

average daily net assets in your account which remain invested in Class B shares of the AIM Money Market Fund 529 Portfolio for more than twelve months.4 For Class C shares of the AIM Money Market Fund 529 Portfolio, your financial advisor will be paid a 1.00% commission on each new purchase plus an amount equal to 0.90% of the

average daily net assets in your account which remain invested in Class C shares of the AIM Money Market Fund 529 Portfolio for more than twelve months.

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Fees and Expenses Associated with an Investment in Class A Shares

The following table sets forth the estimated fees and expenses that will be borne directly and indirectly by your account. The actual expenses ofeach portfolio may be different. The fees and expenses of the plan are subject to change at any time.– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Annual Asset-Based Fees and Expenses1 Additional ExpensesAdmin. Acquired Maximum

Admin. Service (Underlying) Total Initial AccountService Fee State and Fund Annual Sales Annual

Portfolio Fee Waiver2 Other Fees3 Expenses4 Fees Charge5 Fee6

Allocation PortfoliosAIM Growth Allocation Fund 529 Portfolio 0.35% 0.01% — 1.27% 1.61% 5.50% $25AIM Moderate Growth Allocation Fund 529 Portfolio 0.35 — — 1.15 1.50 5.50 25AIM Moderate Allocation Fund 529 Portfolio 0.35 — — 1.14 1.49 5.50 25AIM Moderately Conservative Allocation Fund 529 Portfolio 0.35 — — 1.09 1.44 5.50 25AIM Conservative Allocation Fund 529 Portfolio 0.35 0.11 — 1.11 1.35 5.50 25Enrollment-Based Portfolios13+ Years to College Portfolio 0.35 0.01 — 1.27 1.61 5.50 257-12 Years to College Portfolio 0.35 — — 1.15 1.50 5.50 254-6 Years to College Portfolio 0.35 — — 1.14 1.49 5.50 251-3 Years to College Portfolio 0.35 — — 1.09 1.44 5.50 25College Now Portfolio 0.35 0.11 — 1.11 1.35 5.50 25Individual Fund PortfolioAIM Money Market Fund 529 Portfolio 0.35 — — 0.90 1.25 None 25

1 There is no guarantee that actual expenses will be the same as those shown in the table.2 The distributor will waive a portion of the Administrative Services fee through at least June 30, 2009.3 The distributor pays the program manager a fee at an annual rate of 0.20% of the average daily net assets invested in the plan plus $5 per account maintained by the servicing agent for

services rendered by the program manager in connection with the administration of the plan. These fees are paid out of the distributor’s assets and do not add to the cost of investingin the plan. The program manager pays the Trustee a fee at an annual rate of 0.10% of the average daily net assets invested in the plan that is used by the Trustee to offset the expensesassociated with the administration of the plan. These fees are paid out of the program manager’s assets and do not add to the cost of investing in the plan.

4 Acquired (Underlying) Fund Expenses include the net annual operating expenses of the AIM Allocation Fund and the fund’s estimate of the indirect expenses of the underlying AIMmutual funds in which the AIM Allocation Fund invests. The estimated indirect expenses of the underlying AIM mutual funds is based on the net annualized operating expenses of themutual funds in which the AIM Allocation Fund invests and the percentage ownership of those investments.

5 For additional information regarding breakpoints available with respect to the initial sales charges applicable to Class A shares, see ‘‘What sales charges will I pay? — Initial SalesCharges,’’ above, and the ‘‘Hypothetical Expense Example’’ comparing the approximate cost of investing in each portfolio, below.

6 The annual account fee is waived if on the date the fee would otherwise be deducted the value of your account is equal to or greater than $25,000 or you are making contributionsthrough a Systematic Purchase Plan.

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Fees and Expenses Associated with an Investment in Class B Shares

The following table sets forth the estimated fees and expenses that will be borne directly or indirectly by your account. The actual expenses of eachportfolio may be different. The fees and expenses of the plan are subject to change at any time.– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Annual Asset-Based Fees and Expenses1 Additional ExpensesAdmin. Acquired

Admin. Service (Underlying) Total AnnualService Fee State and Fund Annual Maximum Account

Portfolio Fee2 Waiver3 Other Fees4 Expenses5 Fees CDSC6 Fee7

Allocation PortfoliosAIM Growth Allocation Fund 529 Portfolio 1.10% 0.01% — 1.27% 2.36% 5.00% $25AIM Moderate Growth Allocation Fund 529 Portfolio 1.10 — — 1.15 2.25 5.00 25AIM Moderate Allocation Fund 529 Portfolio 1.10 — — 1.14 2.24 5.00 25AIM Moderately Conservative Allocation Fund 529 Portfolio 1.10 — — 1.09 2.19 5.00 25AIM Conservative Allocation Fund 529 Portfolio 1.10 0.11 — 1.11 2.10 5.00 25Enrollment-Based Portfolios13+ Years to College Portfolio 1.10 0.01 — 1.27 2.36 5.00 257-12 Years to College Portfolio 1.10 — — 1.15 2.25 5.00 254-6 Years to College Portfolio 1.10 — — 1.14 2.24 5.00 251-3 Years to College Portfolio 1.10 — — 1.09 2.19 5.00 25College Now Portfolio 1.10 0.11 — 1.11 2.10 5.00 25Individual Fund PortfolioAIM Money Market Fund 529 Portfolio 1.10 — — 0.90 2.00 5.00 25

1 There is no guarantee that actual expenses will be the same as those shown in the table.2 Class B shares convert to Class A shares, and thereafter will pay the Class A share administrative service fee of 0.35%, at the end of the month that is eight years after the date on which

the shares were purchased. Class B shares purchased prior to October 8, 2002, will convert to Class A shares at the end of the month that is six years after the date on which the shareswere purchased.

3 The distributor will waive a portion of the Administrative Services fee through at least June 30, 2009.4 The distributor pays the program manager a fee at an annual rate of 0.20% of the average daily net assets invested in the plan plus $5 per account maintained by the servicing agent for



6 For additional information about contingent deferred sales charges, see ‘‘What sales charges will I pay? — Contingent Deferred Sales Charges,’’ above, and the ‘‘Hypothetical ExpenseExample’’ comparing the approximate cost of investing in each portfolio, below.


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Fees and Expenses Associated with an Investment in Class C Shares

The following table sets forth the estimated fees and expenses that will be borne directly or indirectly by your account. The actual expenses of eachportfolio may be different. The fees and expenses of the plan are subject to change at any time.– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Annual Asset-Based Fees and Expenses1 Additional ExpensesAdmin. Acquired

Admin. Service (Underlying) Total AnnualService Fee State and Fund Annual Maximum Account

Portfolio Fee Waiver2 Other Fees3 Expenses4 Fees CDSC5 Fee6

Allocation PortfoliosAIM Growth Allocation Fund 529 Portfolio 1.10% 0.01% — 1.27% 2.36% 1.00% $25AIM Moderate Growth Allocation Fund 529 Portfolio 1.10 — — 1.15 2.25 1.00 25AIM Moderate Allocation Fund 529 Portfolio 1.10 — — 1.14 2.24 1.00 25AIM Moderately Conservative Allocation Fund 529 Portfolio 1.10 — — 1.09 2.19 1.00 25AIM Conservative Allocation Fund 529 Portfolio 1.10 0.11 — 1.11 2.10 1.00 25Enrollment-Based Portfolios13+ Years to College Portfolio 1.10 0.01 — 1.27 2.36 1.00 257-12 Years to College Portfolio 1.10 — — 1.15 2.25 1.00 254-6 Years to College Portfolio 1.10 — — 1.14 2.24 1.00 251-3 Years to College Portfolio 1.10 — — 1.09 2.19 1.00 25College Now Portfolio 1.10 0.11 — 1.11 2.10 1.00 25Individual Fund PortfolioAIM Money Market Fund 529 Portfolio 1.10 — — 0.90 2.00 1.00 25

1 There is no guarantee that actual expenses will be the same as those shown in the table.2 The distributor will waive a portion of the Administrative Services fee through at least June 30, 2009.3 The distributor pays the program manager a fee at an annual rate of 0.20% of the average daily net assets invested in the plan plus $5 per account maintained by the servicing agent for



5 For additional information about contingent deferred sales charges, see ‘‘What sales charges will I pay? — Contingent Deferred Sales Charges,’’ above, and the ‘‘Hypothetical ExpenseExample’’ comparing the approximate cost of investing in each portfolio, below.


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Hypothetical Expense ExampleThe following chart compares the approximate cost of investing in each portfolio and share class of the plan over different periods of time. Youractual costs may be higher or lower. The hypothetical chart assumes an initial $10,000 investment in a portfolio and a 5% annual rate of return,compounded annually. All expense ratios and asset allocations are assumed to remain the same for the duration of the periods.

The chart assumes that all redemptions are made for higher education costs and, therefore, does not reflect the impact of potential federal, stateor local taxes. The chart also assumes that the investor pays the maximum initial sales charge for Class A shares. With respect to Class B and Cshares, the chart illustrates both what you would pay assuming that you held your shares and did not incur a CDSC and what you would pay if youwere to redeem your shares and incur the applicable CDSC. For purposes of assessing the $25 annual account fee, the chart assumes that you haveinvested all contributions in a single portfolio. The illustration is hypothetical and does not reflect actual expenses or performance from the past orfuture.

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –1 Year 3 Years 5 Years 10 Years

Portfolio A B B1 C C1 A B B1 C A B B1 C A B2 C

Allocation PortfoliosAIM Growth Allocation Fund 529

Portfolio $730 $264 $764 $264 $364 $1,106 $812 $1,112 $812 $1,503 $1,383 $1,583 $1,383 $2,595 $2,744 $2,926AIM Moderate Growth Allocation

Fund 529 Portfolio 719 253 753 253 353 1,072 777 1,077 777 1,444 1,324 1,524 1,324 2,473 2,622 2,807AIM Moderate Allocation Fund 529

Portfolio 718 252 752 252 352 1,069 774 1,074 774 1,440 1,319 1,519 1,319 2,463 2,612 2,797AIM Moderately Conservative Allocation

Fund 529 Portfolio 714 247 747 247 347 1,054 758 1,058 758 1,415 1,294 1,494 1,294 2,411 2,561 2,747AIM Conservative Allocation Fund 529

Portfolio 705 238 738 238 338 1,050 754 1,054 754 1,415 1,294 1,494 1,294 2,423 2,572 2,758Enrollment-Based Portfolios13+ Years to College Portfolio 730 264 764 264 364 1,106 812 1,112 812 1,503 1,383 1,583 1,383 2,595 2,744 2,9267-12 Years to College Portfolio 719 253 753 253 353 1,072 777 1,077 777 1,444 1,324 1,524 1,324 2,473 2,622 2,8074-6 Years to College Portfolio 718 252 752 252 352 1,069 774 1,074 774 1,440 1,319 1,519 1,319 2,463 2,612 2,7971-3 Years to College Portfolio 714 247 747 247 347 1,054 758 1,058 758 1,415 1,294 1,494 1,294 2,411 2,561 2,747College Now Portfolio 705 238 738 238 338 1,050 754 1,054 754 1,415 1,294 1,494 1,294 2,423 2,572 2,758Individual Fund PortfolioAIM Money Market Fund 529 Portfolio 152 228 728 228 328 471 701 1,001 701 808 1,198 1,398 1,198 1,745 2,363 2,552

1 This column reflects what you would pay if you were to redeem your shares and incur the applicable CDSC.2 Assumes conversion of Class B shares to the lower portfolio operating expenses of Class A shares, which occurs on or about the end of the month which is at least 8 years after the date

on which shares were purchased.

FEDERAL AND STATE TAX CONSIDERATIONS

What are the federal income tax advantages of the plan?There are two main federal income tax advantages to investing in the plan:

m Investment earnings on the money you invest in the plan will not be subject to federal income tax until they are distributed; and

m If the investment earnings are distributed as part of a qualified withdrawal, they are free from federal income tax.

There are also potential federal income tax disadvantages to an investment in the plan. To the extent that a distribution from an account is a non-qualified withdrawal, the portion of the non-qualified withdrawal attributable to investment earnings will be ordinary income to the recipient; no partof such earnings portion will be treated as capital gain. Under current law, the tax rates on ordinary income are generally greater than the tax rateson capital gain. Additionally, to the extent that a distribution is a non-qualified withdrawal, the federal income tax liability of the recipient willgenerally be increased by an amount equal to 10% of any earnings portion of the distribution includible in the recipient’s income. However, this10% federal penalty tax will not apply if the non-qualified withdrawal is made on account of the death or disability of the beneficiary or to theextent of the amount of certain scholarships or other allowances or payments received by the beneficiary.3 A qualified rollover distribution is notsubject to federal income tax or the 10% federal penalty tax.

3 See page 28, ‘‘Federal Income Tax Treatment of the Trust, Contributions and Withdrawals.’’

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What about state and local taxes?The State of Nebraska generally does not impose state or local taxes on non-Nebraska residents. Therefore, if you live in any state other thanNebraska, you will not be subject to any taxation by the State of Nebraska with respect to your investment in the plan. However, you may be subject tostate and local taxes in the state(s) or municipality(ies) in which you pay income taxes.

Nebraska residents and account owners who file Nebraska State income tax returns (regardless of residency) are generally allowed to deduct up to$5,000 ($2,500 if married filing separately) of contributions per year from their gross income for Nebraska State income tax purposes, and thereare no Nebraska State income taxes on investment earnings paid out as a qualified withdrawal.

Before investing in The AIM College Savings Plan, you should consider carefully the following:

m Depending on the laws of your home state or that of your designated beneficiary, favorable state tax treatment or other benefitsoffered by such home state for investing in 529 college savings plans may be available only if you invest in such home state’s 529college savings plan;

m Any state-based benefit offered with respect to a particular 529 college savings plan should be one of many appropriately weightedfactors to be considered in making an investment decision; and

m You should consult with your financial, tax or other advisor to learn more about how state-based benefits (including anylimitations) would apply to your specific circumstances. You may also wish to contact your home state or any other 529 collegesavings plan to learn more about the features, benefits and limitations of that state’s 529 college savings plan.

Are there special benefits for Nebraska residents?In connection with the establishment of the Trust, the Nebraska Legislature has provided certain benefits to Nebraska residents. An account ownerwho is a Nebraska resident, or that files a Nebraska State income tax return, other than an account owner that is a custodian under a UGMA orUTMA account, is generally allowed to deduct up to $5,000 ($2,500 if married filing separately) of contributions per year from his or her grossincome for Nebraska State income tax purposes, and there are no Nebraska State income taxes on investment earnings distributed as part of aqualified withdrawal. Only such an account owner may claim such a deduction. In the case of an account owner who is a custodian under aUGMA or UTMA account, the minor for whom the UGMA or UTMA account is held may be entitled to the Nebraska State tax deduction rather than theaccount owner.

Nebraska law currently provides for the partial recapture of these Nebraska State tax benefits in the event a Participation Agreement is canceled. Ifyou roll over funds to a qualified tuition program sponsored by another state or entity, you will be deemed to have canceled your ParticipationAgreement with the plan. In general, a canceling account owner’s Nebraska State taxable income will be increased by the amount of thecancellation distribution but only to the extent previously deducted by the account owner. Before canceling a Participation Agreement, you shouldconsult with your legal and tax advisors.

In addition, the Legislature created an Endowment Fund as a way to augment contributions to the Trust for the benefit of beneficiaries who attendan institution of higher education in Nebraska.

TAKING DISTRIBUTIONS

How do I request a withdrawal from my account?Only the account owner may request a withdrawal from an account. To request a withdrawal from your account, you should contact your financialadvisor or the servicing agent. The minimum withdrawal amount is $50. The servicing agent will not accept a withdrawal request by telephone.

When must withdrawals begin?There is no set date or age by which you must begin making withdrawals from your account.

How do I make qualified withdrawals?You may request a qualified withdrawal at any time and elect any of the following distribution options:

m The distribution may be made directly to an institution of higher education.

m The distribution may be made in the form of a check payable to both the beneficiary and the institution of higher education.

m The distribution may be made in the form of a check payable to the account owner or the beneficiary.

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If you request a qualified withdrawal in the form of a check payable to the account owner or the beneficiary, and if taking such withdrawal wouldotherwise subject you to the payment of a CDSC, then your request for the withdrawal should be accompanied by documentation to show that thedistribution is a reimbursement for higher education costs that have already been paid. If you fail to provide such documentation with your request,the servicing agent will retain an account balance that is large enough to collect any applicable CDSC; provided, however, that the servicing agent willrefund the CDSC to you if you provide documentation of the payment of higher education costs on or before the earlier of (i) the 30th day followingthe date the distribution request is received by the servicing agent, or (ii) December 31 of the year in which the distribution request is processedby the servicing agent.

The servicing agent requires documentation to show that a distribution is a reimbursement for higher education costs solely for purposes ofassessing any applicable CDSC. Any determination made by the servicing agent in this regard is not determinative of the qualified or non-qualifiedstatus of any withdrawal for federal or state tax purposes.

May I make withdrawals for other purposes?Yes, but to the extent that the withdrawal is a non-qualified withdrawal, any earnings portion of such non-qualified withdrawal will be includible inyour income for federal income tax purposes, and the part so includible will generally also be subject to a 10% federal penalty tax. Certainexceptions to the imposition of the penalty tax apply. In addition, any applicable CDSCs will be assessed by the servicing agent.

For more information about how the earnings portion of a non-qualified withdrawal is calculated and other tax consequences, see ‘‘Additional TaxInformation,’’ below.

May I roll over my account?Yes, you may direct a transfer of money from your account to an account in another qualified tuition program for the same or another beneficiary.Alternatively, you may make a withdrawal from your account and re-deposit the withdrawn balance within 60 days into an account in anotherqualified tuition program for the same or another beneficiary. In either case, your withdrawal will be considered a qualified rollover distribution aslong as any new beneficiary is a member of the family of the old beneficiary. However, only one rollover may be made for the same beneficiary inany 12-month period.

Qualified rollover distributions are not subject to taxation or tax penalty at the federal level, but they are subject to any applicable CDSCs. However,if you roll over funds to a qualified tuition program sponsored by another state or entity, you will be deemed to have canceled your ParticipationAgreement with the plan. Canceling your Participation Agreement may subject you to a recapture of any Nebraska State income tax deduction youmay have claimed.

What are the exceptions to the federal penalty tax?The additional 10% federal penalty tax does not apply to all non-qualified withdrawals. Generally, non-qualified withdrawals made on account of thefollowing are not subject to the 10% federal penalty tax:

m the death of the beneficiary;

m the disability of the beneficiary within the meaning of Section 72(m)(7) of the Code;

m if the beneficiary receives a scholarship, allowance or payment described in Section 25A(g)(2) of the Code, to the extent the withdrawal does notexceed the amount of the scholarship, allowance or payment;

m If a Hope Scholarship Credit and/or Lifetime Learning Credit is allowed to any person for payment of the beneficiary’s qualified higher educationexpenses, the Earnings Portion of the part of the non-qualified withdrawal equal to such expenses will not be subject to the penalty tax; and

m if the beneficiary attends the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United StatesCoast Guard Academy, or the United States Merchant Marine Academy, to the extent that the non-qualified withdrawal does not exceed the costs of‘‘advanced education,’’ as that term is defined in 10 U.S.C. Section 2005(e)(3), attributable to such attendance.

You should consult your tax advisor regarding the application of any of the above exceptions. See ‘‘Additional Tax Information,’’ below.

What happens to an account if the beneficiary dies, becomes disabled or does not pursue a higher education?

m If the beneficiary of an account dies, you may (1) withdraw the account balance, (2) distribute the account balance to the beneficiary’s estate, or(3) change the beneficiary of the account.

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m To the extent that you withdraw the account balance in a non-qualified withdrawal, any earnings portion of such non-qualified withdrawal will beincludible in your income for federal income tax purposes. In addition, any earnings portion included in your income may be subject to a 10%federal penalty tax.

m To the extent that you distribute the account to the beneficiary’s estate in a non-qualified withdrawal, any earnings portion of such non-qualifiedwithdrawal will be includible in the estate’s income, but will not be subject to the federal penalty tax. A change of the beneficiary of the account willnot result in any income tax consequences so long as the new beneficiary is a member of the family of the deceased beneficiary.

m If the beneficiary of an account becomes disabled within the meaning of Section 72(m)(7) of the Code, you may withdraw the account balance orchange the beneficiary of the account. To the extent that you make a non-qualified withdrawal from the account, any earnings portion of such non-qualified withdrawal will be includible in your income for federal income tax purposes. However, the 10% federal penalty tax will not apply. Achange of the beneficiary of the account will not result in any income tax consequences so long as the new beneficiary is a member of the family ofthe disabled beneficiary.

The plan will not assess a CDSC on any distribution made on account of the death or disability of the beneficiary.

m If the beneficiary of an account does not pursue a higher education, you may withdraw the account balance or change the beneficiary of theaccount. To the extent that you make a non-qualified withdrawal from the account, any earnings portion of such non-qualified withdrawal will beincludible in your income for federal income tax purposes and will be subject to a 10% federal penalty tax. A change of the beneficiary of theaccount will not result in any federal income tax consequences so long as the new beneficiary is a member of the family of the old beneficiary.

For more information, see page 28, ‘‘Federal Income Tax Treatment of the Trust, Contributions and Withdrawals.’’

LIMITATIONS AND PENALTIES

Are there limits on investment changes?Under federal law, neither you nor the beneficiary may exercise investment discretion, directly or indirectly, over contributions to an account or anyearnings on such contributions. As a result, federal law only allows you to change the investment allocations in your account once per calendar year,or upon a change of beneficiary.

If you have multiple accounts for the same beneficiary in The AIM College Savings Plan, the College Savings Plan of Nebraska, The State FarmCollege Savings Plan and/or the TD AMERITRADE 529 College Savings Plan, you may change the investments in one account (or multiple accounts atthe same time) once per calendar year without tax consequences. You will not be able to change the investments for the account(s) or any otheraccounts in the Trust for the same beneficiary in the same calendar year unless you are also changing the beneficiary of the account.

Can I transfer my account to other plans in the Trust?Yes, accounts in the Trust are offered and sold through several different distribution channels, and you may transfer funds in your account to anotherplan within the Trust. However, any such transfer constitutes a change in the investment option in which your account is invested and therefore mayoccur only once per calendar year, or upon a change of beneficiary, and any applicable CDSCs will be assessed upon such a transfer.

Are there limitations on transfers out of the plan?No, however, you may roll over your account to another qualified tuition program without potentially adverse federal income tax consequences onlyonce every 12 months, or upon a change of beneficiary, and any applicable CDSCs will be assessed upon such a transfer.

Are there penalties on withdrawals from the plan?The plan does not currently charge a withdrawal fee. However, any applicable CDSCs and, if the account is being closed, the $25 annual account feewill be assessed upon withdrawal. Additionally, if an account owner withdraws funds as a non-qualified withdrawal, the earnings portion of thewithdrawal is subject to ordinary income tax and a 10% federal penalty tax. For distributions made in connection with the beneficiary’s death ordisability, or receipt of a scholarship, the earnings portion of an account may be subject to federal and state income taxes, but may not be subjectto the 10% penalty. If you cancel your Participation Agreement, and you previously deducted contributions to the plan from your Nebraska taxableincome, you may be subject to a partial recapture of any Nebraska State tax benefits to the extent previously deducted. You should consult with yourtax advisor in such circumstances.

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Can I cancel a Participation Agreement?Yes, you may cancel your Participation Agreement at any time and for any reason. If you cancel your Participation Agreement you will receive the fairmarket value of the account, after any applicable CDSCs and the $25 annual account fee are assessed. However, no Endowment Fund moneys will bedistributed to you.

Nebraska law currently provides for the partial recapture of any Nebraska State tax benefits in the event a Participation Agreement is canceled. Ingeneral, a canceling account owner’s taxable income will be increased by the amount of the cancellation distribution but only to the extentpreviously deducted by the account owner. Before canceling a Participation Agreement, you should consult with your legal and tax advisors.

OTHER INFORMATION

How will investments in the plan affect my beneficiary’s chances of receiving financial aid?The eligibility of the beneficiary for financial aid may depend upon the circumstances of the beneficiary’s family at the time the beneficiaryenrolls in an institution of higher education, as well as on the policies of the governmental agencies, school or private organizations to whichthe beneficiary and/or the beneficiary’s family applies for financial assistance. These policies vary at different institutions and can change overtime. Therefore, no person or entity can say with certainty how the federal aid programs, or the school to which the beneficiary applies, willtreat your account. However, financial aid programs administered by agencies of the State of Nebraska will not take your account balance intoconsideration, except as may be otherwise provided by federal law.

How do scholarships and other financial aid affect my account?If the beneficiary of your account receives a scholarship or other financial aid, the beneficiary may no longer require all of the funds in the account.In that case, you may withdraw funds from your account up to the amount of such scholarship or other financial aid. The earnings portion of thewithdrawal will be included in your ordinary income, but no federal penalty tax will be assessed, and the plan will not assess a CDSC if thescholarship or aid is a scholarship, allowance, or payment described in Section 25A(g)(2) of the Code.

You may also transfer the amount withdrawn in a qualified rollover distribution, in which case no amount of the withdrawal will be included inyour income.

What kind of statements will I receive?The servicing agent will maintain separate records for your account. You will receive quarterly statements showing:

m Contributions made to the account during the period and total year-to-date contributions.

m Withdrawals made during the period.

m The total value of the account at the end of the period.

m The performance of the portfolios in which you are invested.

You will also receive confirmations of any contributions or withdrawals as they are processed and annual statements that will include informationconcerning the maximum contribution limit and information on how to obtain a prospectus for each of the funds in which the plan invests.

How is the Trust administered?The Trust is overseen by the Nebraska State Treasurer, acting as Trustee of the Trust, pursuant to Nebraska law and rules and regulations theTreasurer adopts. Contributions to the Trust are invested pursuant to an Investment Policy established by the Investment Council. The Treasurer andthe Investment Council have engaged the program manager to assist in the administration of the Trust.

The Treasurer, the Investment Council and the program manager have engaged the investment manager to provide investment management servicesfor the plan, including the development of asset allocation models for the portfolios and monitoring the funds in which the portfolios are invested.The distributor acts as the distributor for the shares of each portfolio, and the servicing agent receives and processes Participation Agreements,collects and deposits contributions, processes withdrawals and transfers, and provides record keeping and administrative services for the plan.

Is the Trust audited?Nebraska law requires the Trust to be audited by a certified public accountant or the Nebraska State Auditor annually. A copy of the annual reportmay be obtained by calling the servicing agent at 1-877-AIM-PLAN (1-877-246-7526), weekdays, 7:30 a.m. to 7:00 p.m. Central Time.

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What is the Endowment Fund?The Endowment Fund may receive gifts, grants or donations from private or public sources interested in helping families save for educationalexpenses. Contributions to and earnings from the Endowment Fund will be accounted for annually. These monies are not vested but may be availableto pay a portion of the educational costs of beneficiaries if they attend an institution of higher education in Nebraska.

Are contributions part of an account owner’s federal bankruptcy estate?The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 protects many Section 529 accounts in federal bankruptcy proceedings. Youraccount will be protected if the beneficiary is your child, step-child, grandchild or step-grandchild (including a child, step-child, or step-grandchildthrough adoption or foster care) subject to the following limits:

m contributions made to all Section 529 accounts for the same designated beneficiary at least 720 days before a federal bankruptcy filing arecompletely protected;

m contributions made to all Section 529 accounts for the same designated beneficiary for more than 365 days, but less than 720 days before a federalbankruptcy filing are protected up to $5,000; and

m contributions made to all Section 529 accounts for the same designated beneficiary less than 365 days before a federal bankruptcy filing are notprotected against creditor claims in federal bankruptcy proceedings.

Your own state law may offer additional creditor protections. You should consult your legal advisor regarding the effect of any bankruptcy filing onyour account.

Where can I obtain additional information?If you have questions regarding your account, ask your financial advisor or call an Invesco Aim Client Services Representative at 1-877-AIM-PLAN(1-877-246-7526), weekdays, 7:30 a.m. to 7:00 p.m. Central Time.

To comply with Rule 15c2-12(b)(5) under the Securities Exchange Act of 1934, as amended, the program manager, on behalf of the Trust, hasentered into a continuing disclosure agreement for the benefit of account owners. Under the continuing disclosure agreement, the program manageror its designee, on the Trust’s behalf and as permitted by law, will provide certain annual financial information relating to the Trust and notices ofthe occurrence of certain material events enumerated in the continuing disclosure agreement. The annual financial information will be filed by theprogram manager or its designee, on behalf of the Trust, with each Nationally Recognized Municipal Securities Information Repository (‘‘NRMSIRs’’)and with a depository in Nebraska, if one then exists. Also, any notices of material enumerated events will be filed by the program manager or itsdesignee, on behalf of the Trust, with the NRMSIRs or the Municipal Securities Rulemaking Board and with a depository in Nebraska, if one thenexists.

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Certain Risks to ConsiderOpening an account involves certain risks. Among other things discussed in this handbook, you should carefully consider the following risksbefore completing an Account Application. You also should read this handbook carefully before making a decision to open an account.

The value of your account may decline.As with many investment programs, there can be no assurance that the value of your account will grow at any particular rate or that it will notdecline. The value of the securities in which the portfolios invest will change due to a number of factors, most of which will not be in the control ofInvesco Aim, the Investment Council, the Trustee or the program manager. If the value of these securities decline, you may lose some or all of theprincipal balance in your account. Neither Invesco Aim, the program manager, the State of Nebraska, the Trustee, the Investment Council, nor any oftheir respective affiliates, directors, officers or agents guarantees any minimum rate of return on your investment or that you will not lose some orall of the principal amount invested.

Each Portfolio invests its assets in a single underlying AIM Allocation Fund.Each of the plan’s Portfolios invests all of its assets in a single underlying mutual fund. The Allocation Portfolios and the Enrollment-Based Portfolioseach invest in underlying AIM Allocation Funds. Each of the AIM Allocation Funds is a ‘‘fund of funds’’ and pursues its investment objective byinvesting in other underlying AIM mutual funds rather than investing directly in stocks, bonds, cash or other investments. Each AIM Allocation Fund’sinvestment performance depends on the investment performance of the underlying funds in which it invests. Therefore, the risks associated with aninvestment in a fund of funds are also the risks associated with an investment in the underlying funds. There is a risk that the AIM Allocation Fund’sinvestment advisor’s evaluations and assumptions regarding the allocation funds’ broad asset classes or the underlying funds in which the allocationfunds invest may be incorrect based on actual market conditions. There is a risk that the allocation funds will vary from the target weightings intheir underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying mutual funds will achieve theirinvestment objectives, and the performance of the underlying mutual funds may be lower than the asset class that they were selected to represent.The underlying mutual funds may change their investment objectives or policies without the approval of the AIM Allocation Funds. If that were tooccur, an AIM Allocation Fund might be forced to withdraw its investment from the underlying mutual fund at a time that is unfavorable to the AIMAllocation Fund. Based on the structure of the AIM Allocation Funds, the funds are limited to investing in underlying mutual funds that are a part ofThe AIM Family of Funds˛. Moreover, the advisor has the ability to select and substitute the underlying mutual funds in which the AIM AllocationFunds invest, and may be subject to potential conflicts of interest in selecting underlying mutual funds because it may receive higher fees from certainunderlying mutual funds than others. However, as a fiduciary to the mutual fund, the advisor is required to act in the fund’s best interest whenselecting underlying mutual funds.

Your account is not insured or guaranteed.Balances in your account are not guaranteed or insured by Invesco Aim or any of its affiliates, the program manager, the State of Nebraska or anyinstrumentality of the State of Nebraska, the Federal Deposit Insurance Corporation or any other party.

Acceptance to an institution of higher education is not guaranteed.There is no guarantee that a beneficiary will be admitted to, or permitted to continue to attend, any college or other institution of higher education. Ifthe beneficiary does not attend an institution of higher education, withdrawals from your account may be subject to taxes and penalties.

Educational expenses may exceed the balance in your account.Even if you make the maximum amount of contributions to your account, the balance may not be sufficient to cover the beneficiary’s higher educationcosts.

Plan contributions do not create Nebraska residency.Contributions to the plan do not create Nebraska residency status for you or a beneficiary for purposes of determining the rate of tuition charged by aNebraska educational institution.

Risks related to possible future changes in state and federal tax law.There is a risk that federal and state laws and regulations governing qualified tuition plans could change in the future.

The proposed federal Treasury regulations that have been issued under Section 529 of the Code provide guidance and requirements for theestablishment and operation of the Trust but do not provide guidance on all aspects of the Trust. Final regulations, other administrative guidance orcourt decisions might be issued that could adversely impact the federal tax consequences or requirements with respect to the Trust or contributions

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to or withdrawals from your account. Congress could also amend Section 529 of the Code or other federal law in a manner that would materiallychange the federal tax treatment of contributions to, and withdrawals from, the Trust. You should understand that changes in the law governing thefederal and/or state tax consequences described in this handbook might necessitate material changes to the Trust for the anticipated taxconsequences to apply. Furthermore, the Trust has been established pursuant to Nebraska law, the guidelines and procedures adopted by theNebraska State Treasurer, and applicable securities laws. Changes to any of those laws or regulations may also affect the operation and tax treatmentof the Trust described in this handbook.

Impact on the beneficiary’s ability to receive financial aid.The eligibility of the beneficiary for financial aid may depend upon the circumstances of the beneficiary’s parents at the time the beneficiary enrolls inan institution of higher education, as well as on the policies of the governmental agencies, schools or private organizations to which the beneficiaryand/or the beneficiary’s family applies for financial assistance. Because saving for college will increase the financial resources available to thebeneficiary and the beneficiary’s family, it most likely will have some effect on the beneficiary’s eligibility. These policies vary at different institutionsand may change over time. Therefore, no person or entity can say with certainty how the federal aid programs, or the school to which thebeneficiary applies, will treat your account. However, financial aid programs administered by agencies of the State of Nebraska will not take youraccount balance into consideration, except as may be otherwise provided by federal law.

Possible changes to The AIM College Savings Plan.The Nebraska State Treasurer, Nebraska Investment Council and the program manager reserve the right to make changes to The AIM College SavingsPlan at any time. These changes may include changes to the underlying investment funds in which the plan invests and changes to the expenses theplan imposes. If the underlying investment funds are changed, the fees and expenses of the replacement funds may be higher or lower and thereplacement funds may achieve different performance results than the funds the plan currently utilizes.

Limitation on investment selection.The account owner may only change the investment election for an account once per calendar year, or upon a change in beneficiary. If an accountowner has multiple accounts in the plan for the same beneficiary, or multiple accounts in the College Savings Plan of Nebraska, The AIM CollegeSavings Plan, the TD AMERITRADE 529 College Savings Plan, and The State Farm College Savings Plan, the account owner may change the portfoliosin all such accounts without tax consequences, so long as the changes to all of the accounts are made at the same time and no more frequently thanonce per calendar year or upon a change of beneficiary.

Illiquidity of account.Funds in your account will be subject to the terms and conditions of the plan and the Participation Agreement. These provisions may limit your abilityto withdraw funds or to transfer these funds. Under no circumstances may any interest in an account or the plan be used as security for a loan.

Medicaid and other federal and state benefits.The effect of an account on eligibility for Medicaid or other state and federal benefits is uncertain. It is possible that an account will be viewed as a‘‘countable resource’’ in determining an individual’s financial eligibility for Medicaid. Withdrawals from an account during certain periods also mayhave the effect of delaying the disbursement of Medicaid payments. You should consult a qualified advisor to determine how an account may affecteligibility for Medicaid or other state and federal benefits.

Individual Fund Portfolio not as diversified as Allocation and Enrollment-Based portfolios.The AIM Money Market Fund 529 Portfolio invests in a single mutual fund, which is, by design, not as diverse as the Allocation and Enrollment-BasedPortfolios. The Allocation and Enrollment-Based Portfolios invest in AIM Allocation Funds that, in turn, invest in a number of different AIM mutualfunds. Since the individual fund portfolio is only invested in one mutual fund, the performance of the individual fund portfolio is solely dependenton the performance of the underlying mutual fund.

Additional Tax InformationThe following discussion summarizes certain aspects of federal and state income, gift, estate and generation-skipping transfer tax consequencesrelating to the plan and contributions to, earnings of and withdrawals from the accounts. This summary is not exhaustive and is not intended asindividual tax advice. In addition, there can be no assurance that the IRS or Nebraska Department of Revenue will accept the statements made hereinor, if challenged, that such statements would be sustained in court. The applicable tax rules are complex, and some of the rules are at presentuncertain, and their application to any particular person may vary according to facts and circumstances specific to that person. The Code and

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regulations thereunder, and judicial and administrative interpretations thereof are subject to change, retroactively and/or prospectively, and no oneunder the plan will be entitled to receive or be obligated to give notice of any such changes or modifications. A qualified tax advisor should beconsulted regarding the application of law in individual circumstances.

This summary is based on the relevant provisions of the Code, proposed Treasury regulations, and Nebraska State tax law. It is possible thatCongress, the Treasury Department, the IRS, the State of Nebraska and other taxing authorities or the courts may take actions that will adversely affectthe tax consequences described and that such adverse effects may be retroactive. No final tax regulations concerning the plan have been issued bythe IRS and, when issued, such regulations or rulings may alter the tax consequences summarized herein or necessitate changes in the plan toachieve the tax benefits described. This summary does not address the potential effects on account owners or beneficiaries of the tax laws of any stateother than Nebraska.

Certain Nebraska State Tax ConsequencesThe State of Nebraska generally does not impose state or local taxes on non-Nebraska residents. Therefore, if you live in any state other thanNebraska, you will not be subject to any taxation by the State of Nebraska with respect to your investment in the plan. However, you may be subject tostate and local taxes in the state(s) or municipality(ies) in which you pay income taxes.

Contributions by an account owner are deductible in computing the account owner’s Nebraska taxable income for Nebraska income tax purposesin an amount not to exceed $5,000 ($2,500 for married taxpayers filing separate returns) in the aggregate for all contributions to all accounts withinthe Trust in any taxable year. For contributions to be deductible for a given calendar year, they must be made by the account owner prior to the endof that year.

The investment earnings of the plan credited to an account will not be includible in computing the Nebraska taxable income of either the accountowner or the beneficiary of the account so long as the earnings remain in the account. Neither the account owner nor the beneficiary will berequired to include any amount in computing his or her Nebraska taxable income for purposes of income tax to the extent such amount is notrequired to be included for federal income tax purposes of a qualifying beneficiary.

Nebraska law currently provides for the partial recapture of the Nebraska State tax benefits in the event a Participation Agreement is canceled. Ifyou roll over funds to a qualified tuition program sponsored by another state or entity, you will be deemed to have canceled your ParticipationAgreement with the plan. In general, a canceling account owner’s taxable income will be increased by the amount of the cancellation distributionbut only to the extent previously deducted by the account owner. Before canceling a Participation Agreement, you should consult with your legal andtax advisors.

Before investing in The AIM College Savings Plan, you should consider carefully the following:

m Depending on the laws of your home state or that of your designated beneficiary, favorable state tax treatment or other benefitsoffered by such home state for investing in 529 college savings plans may be available only if you invest in such home state’s 529college savings plan;

m Any state-based benefit offered with respect to a particular 529 college savings plan should be one of many appropriately weightedfactors to be considered in making an investment decision; and

m You should consult with your financial, tax or other advisor to learn more about how state-based benefits (including anylimitations) would apply to your specific circumstances. You may also wish to contact your home state or any other 529 collegesavings plan to learn more about the features, benefits and limitations of that state’s 529 college savings plan.

Considerations for Non-Nebraska ResidentsThe plan is offered to residents of all states. However, residents of states other than Nebraska should be aware that there may be state income tax orother benefits for investments in another state’s qualified tuition program. For instance, several states offer unlimited state income tax deductions forcontributions made only to their own state’s program. Benefits such as these would generally not be available for contributions made to the plan,which is sponsored by the State of Nebraska. You should consult your tax advisor for more information about state and local taxes.

Federal Income Tax Treatment of the Trust, Contributions and Withdrawals1

The plan is designed to be a ‘‘qualified tuition program’’ under Section 529 of the Code. As such, undistributed investment earnings in the plan areexempt from federal income tax. Thus, earnings of the plan credited to an account are not includible in the federal gross income of the accountowner or the beneficiary of the account until funds are withdrawn, in whole or in part, from the account. The treatment of a withdrawal from anaccount under federal income tax law varies depending on the nature of the withdrawal.

1 See page 26 ‘‘Risks related to possible future changes in state and federal tax law.’’

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If there are earnings in an account, each withdrawal from the account consists of two parts. One part is a return of the contributions to the account(the ‘‘Contributions Portion’’). The other part is a withdrawal of earnings in the account (the ‘‘Earnings Portion’’). A pro rata calculation is made, asof the date on which a withdrawal is made, to determine the Earnings Portion and the Contributions Portion of the withdrawal.

Qualified WithdrawalsIf a qualified withdrawal is made from an account, no portion of the withdrawal is includible in the gross income of the beneficiary or the accountowner. Under certain circumstances, a portion of a qualified withdrawal may be subject to income tax if the total amount distributed in any yearfrom the account and from any Coverdell Education Savings account for the same beneficiary exceeds such beneficiary’s total higher education costsfor such year.

Qualified Rollover DistributionsA qualified rollover distribution is a withdrawal from an account that is transferred or re-deposited within sixty (60) days to: (i) an account in adifferent qualified tuition program for the benefit of the same beneficiary; or (ii) another account in the Trust, or another account in a differentqualified tuition program, for a beneficiary who is a member of the family of the original beneficiary. Only one rollover can be made for the benefitof a particular beneficiary within any twelve-month period. No portion of a qualified rollover distribution is includible in the gross income of eitherthe beneficiary or the account owner.

Non-Qualified WithdrawalsTo the extent that a withdrawal from an account is a non-qualified withdrawal, the Earnings Portion of such non-qualified withdrawal is includible inthe federal gross income of the recipient of the withdrawal for the year in which the withdrawal is made. In general, unless a non-qualifiedwithdrawal is distributed directly to the beneficiary, the account owner is deemed to be the recipient of the withdrawal. The Contributions Portion isnot includible in gross income.

The recipient of a non-qualified withdrawal will also be subject to a ‘‘penalty tax’’ equal to 10% of the Earnings Portion of the withdrawal, subjectto the following exceptions:

m If the beneficiary of the account dies, a distribution from the account to the beneficiary’s estate will not be subject to the penalty tax. Under currentlaw, it is unclear whether a non-qualified withdrawal paid to the account owner on the death of the beneficiary is subject to the penalty tax.Accordingly, before making a withdrawal from the account of a deceased beneficiary, you should consult with your legal or tax advisor concerningthe tax consequences of such a withdrawal.

m If the beneficiary of the account becomes disabled within the meaning of Section 72(m)(7) of the Internal Revenue Code, a withdrawal by theaccount owner will not be subject to the penalty tax.

m If the beneficiary of the account receives a scholarship, allowance, or payment described in Section 25A(g)(2) of the Internal Revenue Code, awithdrawal by the account owner will not be subject to the penalty tax to the extent that the amount of the withdrawal does not exceed the amountof the scholarship, allowance, or payment.

m If a Hope Scholarship Credit and/or Lifetime Learning Credit is allowed to any person for payment of the beneficiary’s qualified higher educationexpenses, the Earnings Portion of the part of the non-qualified withdrawal equal to such expenses will not be subject to the penalty tax.

m If the beneficiary attends the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United StatesCoast Guard Academy, or the United States Merchant Marine Academy, a non-qualified withdrawal from an Account will not be subject to thepenalty tax to the extent that the non-qualified withdrawal does not exceed the costs of ‘‘advanced education,’’ as that term is defined in 10 U.S.C.Section 2005(e)(3), attributable to such attendance.

Change of BeneficiariesA change in the beneficiary of an account is not treated as a distribution if the new beneficiary is a member of the family of the old beneficiary.However, if the new beneficiary is not a member of the family of the old beneficiary, the change is treated as a non-qualified withdrawal by theaccount owner. A change in the beneficiary of an account or a transfer to an account for another beneficiary may have Federal gift tax orgeneration-skipping transfer tax consequences.

Federal Gift, Estate and Generation-Skipping Transfer TaxesContributions to an account are considered completed gifts to the beneficiary of the account for federal estate, gift and generation-skipping transfertax purposes. Except as described below, if an account owner dies while there is a balance in the account, the value of the account is not includible

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in the account owner’s gross estate for federal estate tax purposes. However, amounts in an account at the death of the beneficiary are includible inthe beneficiary’s gross estate.

A donor’s gifts to a donee in any given year will not be taxable if the gifts are eligible for, and do not in total exceed, what is known as the gift tax‘‘annual exclusion’’ for such year. For 2008, the annual exclusion is $12,000 per donee, or twice that amount for a married donor whose spouseelects on a federal gift tax return to ‘‘split’’ gifts with the donor. The annual exclusion is indexed for inflation and is therefore expected to increaseover time.

Under Section 529, an account owner’s contributions to accounts for a beneficiary are eligible for the gift tax annual exclusion. Contributions arealso excludible for purposes of the federal generation-skipping transfer tax. Accordingly, so long as the account owner’s total contributions toaccounts for the beneficiary in any year (together with any other gifts by the account owner to the beneficiary in such year) do not exceed the annualexclusion amount for such year, the account owner’s contributions will not be considered taxable gifts and will be excludible for purposes of thegeneration-skipping transfer tax.

In addition, if an account owner’s total contributions to accounts for a beneficiary in a single year exceed the annual exclusion for such year, theaccount owner may elect to treat contributions that total up to five times the annual exclusion (or up to ten times if the donor and his or her spousesplit gifts) as having been made ratably over a five year period. Consequently, a single donor may contribute up to $60,000 in a single year withoutincurring federal gift tax, so long as the donor makes no other gifts to the same beneficiary during the year in which the contribution is made andeach of the following four years. (Note that an election to have the contribution taken into account over a five-year period must be made by thedonor on a federal gift tax return.)

For example, an account owner who makes a $60,000 contribution to an account for a beneficiary in 2008 may elect to have that contributiontreated as a $12,000 gift in 2008 and a $12,000 gift in each of the following four years. If the account owner makes no other contributions or giftsto the beneficiary before January 1, 2013, the account owner will not be treated as making any taxable gifts to the beneficiary during that five-yearperiod. As a result, the $60,000 contribution will not be treated as a taxable gift and will be excludible for purposes of the generation-skippingtransfer tax. However, if the account owner dies before the end of the five-year period, the portion of the contributions allocable to years after theyear of death will be includible in the account owner’s gross estate for federal estate tax purposes.

A change of the beneficiary of an account or a transfer to an account for another beneficiary may be subject to federal gift and/or generation-skipping transfer tax if the new beneficiary (i) is not a member of the family of the previous beneficiary, or (ii) is in a younger generation than theprevious beneficiary. A change of account ownership may also be subject to gift and/or generation-skipping transfer tax. Accordingly, accountowners should consult their own tax advisors for guidance when considering a change of beneficiary and/or account ownership.

Additional Information Regarding the Plan’s Investment ManagerOne of Invesco Aim’s affiliates, Invesco Aim Advisors, Inc. (‘‘Invesco Aim Advisors’’), acts as the investment advisor to each of the mutual funds inwhich the plan invests. Invesco Aim Advisors is an indirect wholly owned subsidiary of Invesco Ltd. (‘‘Invesco’’).

On October 8, 2004, INVESCO Funds Group, Inc. (‘‘IFG’’) (the former investment advisor to certain AIM funds), Invesco Aim Advisors and InvescoAim Distributors reached final settlements with certain regulators, including the SEC, the New York Attorney General and the Colorado AttorneyGeneral, to resolve civil enforcement actions and/or investigations related to market timing and related activity in the AIM funds, including thoseformerly advised by IFG. As part of the settlements, a $325 million fair fund ($110 million of which is civil penalties) has been created tocompensate shareholders harmed by market timing and related activity in funds formerly advised by IFG. Additionally, Invesco Aim Advisors andInvesco Aim Distributors created a $50 million fair fund ($30 million of which is civil penalties) to compensate shareholders harmed by markettiming and related activity in funds advised by Invesco Aim Advisors, which was done pursuant to the terms of the settlements. These two fair fundswill be distributed in accordance with a methodology determined by Invesco Aim Advisors’ independent distribution consultant (‘‘IDC Plan’’), inconsultation with Invesco Aim and the independent trustees of the AIM funds and approved by the staff of the SEC. Further details regarding the IDCPlan and planned distributions thereunder are available on Invesco Aim Advisors’ website, available at http://www.invescoaim.com.

AIM Floating Rate Fund, one of the underlying AIM mutual funds of certain of the AIM Allocation Funds, along with numerous unrelated funds andfinancial institutions, has been named as a defendant in two private civil lawsuits filed in the United States Bankruptcy Court, Southern District of NewYork. (Enron Corp. v J.P. Morgan Securities, Inc., et al., Case No. 01-16034(AJG) and Adelphia Communications Corp. and its Affiliate Debtors inPossession and Official Committee of Unsecured Creditors of Adelphia v. Bank of America, individually and as Agent for various Banks Party to CreditAgreements, et al, Case No. 02-41729). These lawsuits seek, respectively, avoidance of certain payments made by Enron Corp. and avoidance ofcertain loans of Adelphia Communications Corp. The Enron lawsuit alleges that payments made to AIM Floating Rate Fund and other creditors toprepay and/or redeem certain commercial paper prior to its maturity were preferential transfers. The amount sought to be recovered from AIMFloating Rate Fund in the Enron lawsuit is the aggregate amount of the repurchases of Enron’s commercial paper from AIM Floating Rate Fund duringthe 90 days prior to the filing by Enron of a bankruptcy petition (approximately $10 million) plus interest and Enron’s court costs. The Adelphia

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lawsuit alleges that the purchasers of Adelphia’s bank debt knew, or should have known, that the loan proceeds would not benefit Adelphia, butinstead would be used to enrich Adelphia insiders. The amount sought to be recovered from AIM Floating Rate Fund in the Adelphia lawsuit is notspecified in such lawsuit.

Civil lawsuits, including a regulatory proceeding and purported class action and shareholder derivative suits, have been filed against certain AIMfunds, IFG, Invesco Aim Advisors, Invesco Aim Distributors and/or related entities and individuals, depending on the lawsuit, alleging among otherthings: (i) that the defendants permitted improper market timing and related activity in the funds; and (ii) that certain funds inadequately employedfair value pricing. The case pending in Illinois State Court was dismissed with prejudice on May 6, 2008.

Additional civil lawsuits related to the above or other matters may be filed by regulators or private litigants against the AIM funds, IFG, Invesco AimAdvisors, Invesco Aim Distributors and/or related entities and individuals in the future. You can find more detailed information concerning all of theabove matters, including the parties to the civil lawsuits and summaries of the various allegations and remedies sought in such lawsuits, in the AIMfunds’ Statements of Additional Information which are available on Invesco Aim’s Internet website at http://www.invescoaim.com.

As a result of the matters discussed above, investors in the AIM funds might react by redeeming their investments. This might require the AIM fundsto sell investments to provide for sufficient liquidity, and could also have an adverse effect on the investment performance of the AIM funds. Since theplan’s portfolios invest solely in shares of AIM funds, such sales could have an adverse effect on the investment performance of the plan’s portfolios.

AIM College Savings Plan Participation AgreementBy completing and signing an Account application or otherwise establishing an account in the plan (through your financial advisor or via electronicenrollment), the account owner (also referred to as ‘‘you’’) hereby requests the Nebraska Educational Savings Plan Trust (the ‘‘Trust’’) to maintainan account for the benefit of a particular beneficiary pursuant to the following terms and conditions:

All terms not defined herein are given the same meanings assigned to them in the Enrollment Handbook.

Section 1. Accounts and Beneficiaries(a) Separate Accounts. The Trust will maintain a separate account for each beneficiary. Each account will be governed by a Participation

Agreement. All assets held in your accounts will be held for the exclusive benefit of you and your beneficiary as provided by applicable law andregulation.

(b) Naming and Changing Beneficiaries. You will name the beneficiary for an account in the Account Application. You may change thebeneficiary at any time, subject to applicable law and regulation. To avoid adverse income tax consequences, a new beneficiary must be a member ofthe family of the former beneficiary. The designation of the new beneficiary will be effective upon receipt of the appropriate form in good order bythe servicing agent.

(c) UTMA/UGMA Accounts. A custodian under a UTMA or UGMA may establish an account using monies held for the benefit of a particularbeneficiary by executing an Account Application. The beneficiary of the account must be the same as the UTMA/UGMA beneficiary. The UTMA/UGMAcustodian will be the account owner until the beneficiary reaches the age of majority under the UTMA/UGMA statute under which the originalcustodianship was created, and the UTMA/UGMA custodian may not change the beneficiary of the account.

(d) Trusts. A trust may establish an account, but neither Invesco Aim, the distributor, the servicing agent, the program manager, the Trustee,the Investment Council, nor the State of Nebraska will assume the responsibility to ensure or incur liability for failing to ensure that the ownershipand maintenance of the account is consistent with the trust document or applicable state trust law, nor will they be responsible for advising thetrustee on any issues related to the application of state or federal tax and/or probate laws to the trust’s investment in the plan.

Section 2. Contributions(a) Contributions To Be in Cash. All Contributions must be in cash. Cash means only (i) checks, (ii) money orders, (iii) electronic funds

transfers from your bank, or (iv) funds wired through the Federal Reserve system.(b) Minimum Contributions and Account Size Limit. The minimum initial contribution is $500 per portfolio with subsequent investments of

at least $50 per portfolio, or with a Systematic Purchase Plan, you may open an account with a minimum initial contribution of $50 per portfolio andsubsequent investments of $25 per portfolio.

You may not make additional contributions if (i) a total of $360,000 has already been contributed to all accounts in the Trust for the samebeneficiary, or (ii) an additional contribution would cause the fair market value of all accounts in the Trust for the same beneficiary to exceed$360,000.

Section 3. Withdrawals(a) You may direct the servicing agent, as agent for the Trustee, to distribute part or all of the money in your account at any time. References to

the servicing agent in this Section 3 refer to the servicing agent acting on behalf of, or as agent for, the Trustee.If the proposed distribution is to be paid directly to you or the beneficiary, then the servicing agent will distribute the entire amount requested by

you, less any applicable CDSCs. The servicing agent will provide you with notice of any CDSC assessed. If you provide satisfactory evidence to the

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servicing agent that the withdrawal is a qualified withdrawal before the earlier of (i) the 30th day following the date the distribution notice is receivedby the servicing agent, or (ii) December 31 of the year in which the distribution is processed by the servicing agent, then the servicing agent willrefund the CDSC to you. Any determination made by the servicing agent in regard to whether a withdrawal is a qualified withdrawal or a non-qualified withdrawal is made solely for purposes of applying any applicable CDSCs and is not determinative of the status of such withdrawal for stateor federal tax purposes.

(b) Notwithstanding any other provision of this agreement, the servicing agent may terminate a Participation Agreement and distribute the balanceof an account to you upon its determination that you or the beneficiary has provided false or misleading information to the Trust, the servicing agent,the program manager or an institution of higher education. Upon such a finding and a termination, the servicing agent will assess any applicableCDSCs and the $25 annual account fee. The servicing agent will pay you the balance remaining in the account after any such assessment.

Section 4. Your Representations and AcknowledgmentsBy establishing an account, you represent and warrant and agree as follows:

(a) You have received and read the Enrollment Handbook for The AIM College Savings Plan and have carefully reviewed all the informationcontained therein, including information provided by or with respect to the Trust, Invesco Aim, and the program manager.

(b) You acknowledge and agree that the value of your account will increase or decrease based on the investment performance of the investmentportfolios of the Trust in which the account is then invested. You understand that the value of any account may be more or less than the amountinvested in the account. You agree that all investment decisions will be made by the Nebraska Investment Council or any other adviser hired by theTrust, including Invesco Aim, and that you will not control the investment of any funds invested in the Trust, either directly or indirectly. You alsoacknowledge and agree that neither the Nebraska State Investment Officer, the Investment Council, the Trust, the Trustee, the program manager,Invesco Aim, nor any other adviser or consultant retained by or on behalf of the Trust makes any guarantee that you will not suffer a loss of theamount invested in any account.

(c) You understand that so long as the program manager, investment manager, distributor, or servicing agent is performing services for the Trust,it may follow the directives of the Trustee and the Investment Council, and when acting in such capacity, it will have no liability to you or any otherintended or unintended third-party beneficiary of this Agreement.

(d) You acknowledge and agree that participation in the plan does not guarantee that any beneficiary: (i) will be accepted as a student by aninstitution of higher education; (ii) if accepted, will be permitted to continue as a student; (iii) will be treated as a state resident of any state fortuition purposes; (iv) will graduate from any institution of higher education; or (v) will achieve any particular treatment under applicable state orfederal financial aid programs. You also acknowledge and agree that neither the State of Nebraska, the Trust, the Trustee, the program manager,Invesco Aim, nor any other adviser or consultant retained by or on behalf of the Trust makes any such representation or guarantee.

(e) You acknowledge and agree that no account will be used as collateral for any loan. Any attempted use of an account as collateral for a loanwill be void.

(f) You acknowledge and agree that the Trust will not loan any assets to you or the beneficiary.(g) You acknowledge and agree that the Trust is established and maintained by the Treasurer of the State of Nebraska, pursuant to state law, and

is intended to qualify for certain federal income tax benefits under Section 529 of the Code. You further acknowledge that such federal and state lawsare subject to change, sometimes with retroactive effect, and that neither the State of Nebraska, the Trust, the Trustee, the program manager, norInvesco Aim makes any representation that such state or federal laws will not be changed or repealed.

(h) You acknowledge that the distributor will pay the program manager certain fees, as described in the Enrollment Handbook, for servicesrendered in connection with the administration of the plan.

(i) You acknowledge that the Trust is the record owner of the shares of the AIM funds in which each portfolio is invested and that you will haveno right to vote, or direct the voting of, any proxy with respect to such shares.

Section 5. Fees and ExpensesThe Trust will make certain charges against the portfolios and each account in order to provide for the costs of administration of the accounts andsuch other purposes as the Trustee shall determine appropriate.

(a) Annual Fee. Each account will be charged an annual maintenance fee. Currently, the annual maintenance fee is $25, but the amount ofsuch fee may be changed without prior notice. Certain account owners will not pay the annual maintenance fee. The list of account owners who willnot pay the annual maintenance fee is set forth in the Enrollment Handbook.

(b) Investment Management Fees. You acknowledge that each of the mutual funds in which the Trust invests will have investment managementfees and other expenses associated with them, which will be disclosed or made available on an annual basis.

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(c) Sales Charges and Administrative Service Fees. Each portfolio is subject to the following administrative service fees, which are accrueddaily and reflected in the NAV of each share class of each portfolio:

m For Class A shares, an administrative service fee at an annual rate of 0.35% of the average daily net assets is paid by each portfolio.

m For Class B shares, an administrative service fee at an annual rate of 1.10% of the average daily net assets is paid by each portfolio. Class B sharesthat you purchase will be converted to Class A shares at the end of the month which is eight years after the date on which the shares werepurchased. Class B shares purchased prior to October 8, 2002, will convert to Class A shares at the end of the month which is six years after thedate on which the shares were purchased.

m For Class C shares, an administrative service fee at an annual rate of 1.10% of the average daily net assets is paid by each portfolio.

An initial sales charge will be assessed on purchases of Class A shares. Class A shares of the portfolios are subject to the following initial salescharges:– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Investment Amount1 Sales Charge

Less than $25,000 5.50%$25,000 but less than $50,000 5.25%$50,000 but less than $100,000 4.75%$100,000 but less than $250,000 3.75%$250,000 but less than $500,000 3.00%$500,000 but less than $1,000,000 2.00%$1,000,000 or more 0.00%

Class A shares of the AIM Money Market Fund 529 Portfolio are not subject to an initial sales charge.Certain account owners will not pay initial sales charges or will pay reduced initial sales charges on purchases of Class A shares, as set forth in the

Enrollment Handbook. There is no initial sales charge assessed on purchases of Class B or C shares. However, if you choose Class B or C shares, youmay be subject to a CDSC upon withdrawal. The CDSC schedule for each class of shares is as follows:

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –Year following purchase in which shares are redeemed: Class A2 Class B3 Class C

First None 5.00% 1.00%Second None 4.00 NoneThird None 3.00 NoneFourth None 3.00 NoneFifth None 2.00 NoneSixth None 1.00 NoneSeventh None None None

In determining whether to charge a CDSC upon withdrawal, the servicing agent will assume that you are taking a distribution of investmentearnings before any return of contributions and will not impose a CDSC on the portion of any distribution attributable to investment earnings. Theservicing agent will account for shares held in your account on a first-in-first-out basis, which means that you will redeem shares in the order inwhich they were purchased. Thus, even if your withdrawal includes a return of contributions, it will be processed with shares on which there is noCDSC due being redeemed first.

No CDSC will be charged if you make a qualified withdrawal or a withdrawal on account of the death or disability of the beneficiary or the receiptof a scholarship or an appointment to a United States military academy by the beneficiary. Class B shares may not be purchased for an account oncethe beneficiary reaches his or her 13th birthday.

(d) Change in Fees. You acknowledge and agree that the charges described above may be increased or decreased as the Trustee shall determineto be appropriate.

1 This is the total amount invested (in one or more accounts within the plan) in Class A shares on a single day.2 If you purchase Class A shares of any portfolio other than the AIM Money Market Fund 529 Portfolio as part of a large purchase, the newly purchased shares will be subject to a 1.00%

CDSC if you redeem them within 18 months following the date of such purchase.3 Class B shares purchased prior to October 8, 2002, will continue to be subject to the CDSC schedule in effect at the time of purchase: 2.50% if redeemed in the first year following date

of purchase; 2.00% if redeemed in the second or third year; 1.50% if redeemed in the fourth year; 1.00% is redeemed in the fifth year; 0.50% if redeemed in the sixth year; with noCDSC if redeemed thereafter.

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Section 6. Necessity of QualificationThe Trust intends to qualify for favorable federal tax treatment under Section 529 of the Code. You acknowledge and agree that the Trustee mayamend this Agreement upon a determination that such an amendment is required to maintain such qualification.

Section 7. AuditThe Trustee shall cause the Trust and its assets to be audited at least annually by a certified public accountant or the State Auditor for the State ofNebraska. A copy of the annual report may be obtained by calling the servicing agent at 1-877-AIM-PLAN (1-877-246-7526), weekdays, 7:30 a.m. to7:00 p.m. Central Time.

Section 8. ReportingThe Trust, through the servicing agent, will provide you with quarterly and annual reports of your account activity and the value of your account.

Section 9. Account Owner’s IndemnityYou recognize that each account will be established based upon your statements, agreements, representations and warranties set forth in thisAgreement and the Account Application. You agree to indemnify and to hold harmless the State of Nebraska, the Investment Council, the Trust, theTrustee, the program manager, Invesco Aim and its affiliates, and any of their respective representatives from and against any and all loss, damage,liability or expense, including costs of reasonable attorneys’ fees to which they may be put or which they may incur by reason of, or in connectionwith, any breach by you of your acknowledgments, representations or warranties or any failure of you to fulfill any covenants or agreements set forthherein. You agree that all statements, representations and warranties will survive the termination of your account.

Section 10. Amendment and TerminationNothing contained in this Agreement shall constitute an agreement or representation by the Trustee or anyone else that the Trust will continue inexistence. At any time, the Trustee may amend this Agreement or suspend or terminate the Trust by giving written notice of such action to you, solong as, after the action, the assets in your account are either distributed to you or are still held for the exclusive benefit of you and yourbeneficiaries.

Section 11. Governing LawThis Agreement shall be governed and interpreted in accordance with the laws of the State of Nebraska. All parties agree that venue for any legalproceedings related to this Agreement or The AIM College Savings Plan shall be in the State of Nebraska.

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Additional Information Regarding the AIM FundsThe following are descriptions of the principal investment strategies and risks associated with investment in each of the mutual funds the plan utilizesas underlying investments. These descriptions are taken from the funds’ prospectuses. To obtain a complete prospectus for any fund, please contactthe servicing agent.

AIM Growth Allocation Fund

Investment Objective, Strategies and RisksOBJECTIVE AND STRATEGIESThe fund’s investment objective is to provide long-term growth of capital consistent with a higher level of risk relative to the broad stock market. Thefund’s investment objective may be changed by the Board of Trustees without shareholder approval.

The fund seeks to meet its objective by building a portfolio of mutual fund investments that has a higher level of risk than the S&P 500 Index. Thefund’s target allocation is to invest approximately 95% of its total assets in underlying funds that invest primarily in equity securities (‘‘equityfunds’’), and approximately 5% of its total assets in underlying funds that invest primarily in fixed-income securities (‘‘fixed-income funds’’).Approximately 25% of the assets that are invested in equity funds will be allocated to equity funds that invest primarily in foreign securities.

The advisor uses a three-step process to create the fund’s portfolio. The first step is a strategic asset allocation by the advisor among broad assetclasses. The second step involves the actual selection by the advisor of underlying funds to represent the broad asset classes and the determinationby the advisor of target weightings in these underlying funds. The third step is the ongoing monitoring of a fund’s asset class allocations, underlyingfunds and target weightings.

The advisor monitors the selection of underlying funds to ensure that they continue to conform to the fund’s asset class allocations and rebalancesthe fund’s investments in the underlying funds on an annual basis to keep them within their target weightings. However, the advisor has the ability torebalance on a more frequent basis if it believes it is appropriate to do so. The advisor may change the fund’s asset class allocations, the underlyingfunds or the target weightings in the underlying funds without shareholder approval. A list of the underlying funds and their target weightings islocated in the fund’s Statement of Additional Information.

The underlying funds may invest in synthetic and derivative instruments. Synthetic and derivative instruments are investments that have economiccharacteristics similar to an underlying fund’s direct investments. Synthetic and derivative instruments that an underlying fund may invest in includewarrants, futures contracts, options, exchange-traded funds and American depository receipts. Synthetic and derivative instruments may have theeffect of leveraging an underlying fund’s portfolio.

The fund typically maintains a portion of its assets in cash, which is generally invested in money market funds advised by the fund’s advisor. Thefund holds cash to handle its daily cash needs, which include payment of fund expenses, redemption requests and securities transactions. Theamount of cash held by the fund may increase if the fund takes a temporary defensive position. The fund may take a temporary defensive positionwhen it receives unusually large redemption requests, or if there are inadequate investment opportunities due to adverse market, economic, politicalor other conditions. A larger amount of cash could negatively affect the fund’s investment results in a period of rising market prices; conversely itcould reduce the magnitude of a fund’s loss in the event of falling market prices and provide liquidity to make additional investments or to meetredemptions. As a result, the fund may not achieve its investment objective.

RISKSThe principal risks of investing in the fund and the underlying funds are:

Fund of Funds Risk—The fund pursues its investment objective by investing its assets in other underlying funds rather than investing directly instocks, bonds, cash or other investments. The fund’s investment performance depends on the investment performance of the underlying funds inwhich it invests. Therefore, the risks associated with an investment in a fund of funds, like the fund, are also the risks associated with an investmentin the underlying funds.

There is a risk that the advisor’s evaluations and assumptions regarding the fund’s broad asset classes or the underlying funds in which the fundinvests may be incorrect based on actual market conditions. There is a risk that the fund will vary from the target weightings in the underlying fundsdue to factors such as market fluctuations. There can be no assurance that the underlying funds will achieve their investment objectives, and theperformance of the underlying funds may be lower than the asset class which they were selected to represent. The underlying funds may change theirinvestment objectives or policies without the approval of the fund. If that were to occur, the fund might be forced to withdraw its investment fromthe underlying fund at a time that is unfavorable to the fund.

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AIM Growth Allocation FundBased on the structure of the fund, the fund is limited to investing in underlying funds that are part of The AIM Family of Funds˛. Moreover, 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 inselecting underlying funds because it may receive higher fees from certain underlying funds than others. However, as a fiduciary to the fund, theadvisor is required to act in the fund’s best interest when selecting underlying funds.

Because the fund is a fund of funds, the fund is subject to the risks associated with the underlying funds in which it invests. The risks of aninvestment in the underlying funds are set forth below:

Market Risk—The prices of and the income generated by securities held by the underlying funds may decline in response to certain events,including those directly involving the companies whose securities are owned by the underlying funds; general economic and market conditions;regional or global economic instability; and currency and interest rate fluctuations.

Equity Securities Risk—The prices of equity securities change in response to many factors including the historical and prospective earnings ofthe issuer, the value of its assets, general economic conditions, interest rates, investor perceptions, and market liquidity. These factors will probablyaffect the equity securities of smaller companies more than the equity securities of larger, more-established companies. Also, because equitysecurities of smaller companies may not be traded as often as equity securities of larger, more-established companies, it may be difficult orimpossible for the underlying fund to sell securities at a desirable price.

Foreign Securities Risk—The dollar value of an underlying fund’s foreign investments will be affected by changes in the exchange rates betweenthe dollar and the currencies in which those investments are traded. The value of an underlying fund’s foreign investments may be adversely affectedby political and social instability in their home countries, by changes in economic or taxation policies in those countries, or by the difficulty inenforcing obligations in those countries. Foreign companies generally may be subject to less stringent regulations than U.S. companies, includingfinancial reporting requirements and auditing and accounting controls. As a result, there generally is less publicly available information aboutforeign companies than about U.S. companies. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to thesize of the market or other factors.

Counterparty Risk—Individually negotiated, or over-the-counter, derivatives are also subject to counterparty risk, which is the risk that the otherparty to the contract will not fulfill its contractual obligation to complete the transaction of an underlying fund.

Convertible Securities Risk—The values of convertible securities in which an underlying fund may invest will be affected by market interest rates,the risk that the issuer may default on interest or principal payments and the value of the underlying common stock into which these securities maybe converted. Specifically, because these types of securities pay fixed interest and dividends, their values may fall if market interest rates rise andrise if market interest rates fall. Additionally, an issuer may have the right to buy back certain of the convertible securities at a time and a price that isunfavorable to the underlying fund.

Interest Rate Risk—Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally riseas interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on specific characteristics of each bond. Ameasure investors commonly use to determine this sensitivity is called duration. The longer the duration of a particular bond, the greater is its pricesensitivity to interest rates. Similarly, a longer duration portfolio of securities has greater price sensitivity. Duration is determined by a number offactors including coupon rate, whether the coupon is fixed or floating, time to maturity, call or put features, and various repayment features.

Credit Risk—Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration offinancial health may result in a reduction of the credit rating of the issuer’s securities and may lead to the issuer’s inability to honor its contractualobligations including making timely payment of interest and principal. Credit ratings are a measure of credit quality. Although a downgrade orupgrade of a bond’s credit ratings may or may not affect its price, a decline in credit quality may make bonds less attractive, thereby driving up theyield on the bond and driving down the price. Declines in credit quality can result in bankruptcy for the issuer and permanent loss of investment.

High Yield Risk—High yield risk is a form of credit risk. Securities that are below investment grade are regarded as having predominatelyspeculative characteristics with respect to the capacity to pay interest and repay principal. Lower rated securities may be more susceptible to real orperceived adverse economic and competitive industry conditions than higher grade securities. The prices of lower-rated securities have been foundto be less sensitive to interest rate changes than more highly rated investments, but more sensitive to adverse economic downturns or individualcorporate developments. Yields on lower-rated securities will fluctuate. If the issuer of lower-rated securities defaults, the fund may incur additionalexpenses to seek recovery.

The secondary markets in which lower-rated securities are traded may be less liquid than the market for higher grade securities. Less liquidity inthe secondary trading markets could adversely affect the price at which the fund could sell a particular lower-rated security when necessary to meetliquidity needs or in response to a specific economic event, such as a deterioration in the creditworthiness of the issuer, and could adversely affectand cause large fluctuations in the net asset value of the fund’s shares. Adverse publicity and investor perceptions may decrease the values andliquidity of high yield securities.

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AIM Growth Allocation FundLimited Number of Holding Risk—Because a large percentage of an underlying fund’s assets may be invested in a limited number of securities, a

change in the value of these securities could significantly affect the value of your investment in an underlying fund.Derivatives Risk—The value of ‘‘derivatives’’ — so-called because their value ‘‘derives’’ from the value of an underlying asset (including an

underlying security), reference rate or index — may rise or fall more rapidly than other investments. For some derivatives, it is possible to lose morethan the amount invested in the derivative. Derivatives may be used to create synthetic exposure to an underlying asset or to hedge a portfolio risk. Ifan underlying fund uses derivatives to ‘‘hedge’’ a portfolio risk, it is possible that the hedge may not succeed. This may happen for various reasons,including unexpected changes in the value of the rest of the underlying fund’s portfolio. Over the counter derivatives are also subject to counterpartyrisk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with an underlyingfund.

Leverage Risk—The use of derivatives may give rise to a form of leverage. Leverage may cause an underlying fund’s portfolio to be more volatilethan if the fund had not been leveraged because leverage can exaggerate the effect of any increase or decrease in the value of securities held by theunderlying fund.

Active Trading Risk—Certain of the underlying funds may engage in active and frequent trading of portfolio securities to achieve their investmentobjectives. If an underlying fund does trade in this way, it may incur increased costs, which can lower the actual return of the underlying fund. Activetrading may also increase short term gains and losses, which may affect the taxes that must be paid.

Growth Investing Risk—Certain of the underlying funds may invest in ‘‘growth’’ stocks. ‘‘Growth’’ stocks can perform differently from the marketas a whole and other types of stocks and tend to be more expensive relative to their earnings or assets compared with other types of stocks. As aresult, growth stocks tend to be more sensitive to changes in their earnings and can be more volatile than other types of stocks.

Management Risk—There is no guarantee that the investment techniques and risk analyses used by the underlying fund’s portfolio managers willproduce the desired results.

Value Investing Risk—Certain of the underlying funds may invest in ‘‘value’’ stocks. ‘‘Value’’ stocks can react differently to issuer, political,market and economic developments than the market as a whole and other types of stocks. Value stocks tend to be inexpensive relative to theirearnings or assets compared to other types of stocks. However, value stocks can continue to be inexpensive for long periods of time and may not everrealize their full value.

U.S. Government Obligations Risk—The underlying funds may invest in obligations issued by agencies and instrumentalities of the U.S.Government. The obligations vary in the level of support they receive from the U.S. Government. They may be: (i) supported by the full faith andcredit of the U.S. Treasury, such as those of the Government National Mortgage Association; (ii) supported by the right of the issuer to borrow fromthe U.S. Treasury, such as those of the Federal National Mortgage Association; (iii) supported by the discretionary authority of the U.S. Governmentto purchase the issuer’s obligations, such as those of the former Student Loan Marketing Association; or (iv) supported only by the credit of theissuer, such as those of the Federal Farm Credit Bureau. The U.S. Government may choose not to provide financial support to the U.S. Governmentsponsored agencies or instrumentalities if it is not legally obligated to do so, in which case, if the issuer defaulted, the underlying fund holdingsecurities of such issuer might not be able to recover its investment from the U.S. Government.

Market Capitalization Risk—Stocks fall into three broad market capitalization categories — large, medium and small. Investing primarily in onecategory carries the risk that, due to current market conditions, that category may be out of favor with investors. Small and mid-sized companiestend to be more vulnerable to adverse developments and more volatile than larger companies. Investments in small and mid-sized companies mayinvolve special risks, including those associated with dependence on a small management group, little or no operating history, little or no trackrecord of success, and limited product lines, markets and financial resources. Also, there may be less publicly available information about the issuersof the securities or less market interest in such securities than in the case of larger companies, each of which can cause significant price volatility.The securities of small and mid-sized may be illiquid, restricted as to resale, or may trade less frequently and in smaller volume than more widelyheld securities, which may make it difficult for an underlying fund to establish or close out a position in these securities at prevailing market prices.

Sector Fund Risk—Certain of the underlying fund’s investments are concentrated in comparatively narrow segments of the economy. This meansthat the underlying fund’s investment concentration in the energy, financial-services, health sciences, leisure and technology sectors is higher thanmost mutual funds and the broad securities market. Consequently, the underlying fund tends to be more volatile than other mutual funds, and thevalue of the underlying fund’s investments and consequently an investment in the underlying fund tends to go up and down more rapidly.

Unseasoned Issuer Risk—Start-up companies or earlier stage companies, such as venture capital companies, generally have limited operatinghistories, no present market for their technologies or products, and no history of earnings or financial services. These companies may rely entirelyor in large part on private investments to finance their operations.

Independent Management of Sector Risk—Certain of the underlying fund’s investments in different, independently-managed sectors createsallocation risk, which is the risk that the allocation of investments among the sectors may have a more significant effect on the underlying fund’s net

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AIM Growth Allocation Fundasset value when one of the sectors is performing more poorly than the other(s). Additionally, the active rebalancing of the underlying fund amongthe sectors may result in increased transaction costs. The independent management of the five sectors may also result in adverse tax consequences ifthe portfolio managers responsible for the underlying fund’s five sectors effect transactions in the same security on or about the same time.

AIM Moderate Growth Allocation Fund

Investment Objective, Strategies and RisksOBJECTIVE AND STRATEGIESThe fund’s investment objective is to provide long-term growth of capital consistent with a higher level of risk relative to the broad stock market. Thefund’s investment objective may be changed by the Board of Trustees without shareholder approval.

The fund seeks to meet its objective by building a portfolio of mutual fund investments that has a higher level of risk than the S&P 500 Index. Thefund’s target allocation is to invest 80% of its total assets in underlying funds that invest primarily in equity securities (‘‘equity funds’’) and 20% of itstotal assets in underlying funds that invest primarily in fixed-income securities (‘‘fixed-income funds’’). Approximately 22% of the assets that areinvested in equity funds will be allocated to equity funds that invest primarily in foreign securities.






Fund of Fund Risks—The fund pursues its investment objective by investing its assets in other underlying funds rather than investing directly instocks, bonds, cash or other investments. The fund’s investment performance depends on the investment performance of the underlying funds inwhich it invests. Therefore, the risks associated with an investment in a fund of funds, like the fund, are also the risks associated with an investmentin the underlying funds.

There is a risk that the advisor’s evaluations and assumptions regarding the fund’s broad asset classes or the underlying funds in which the fundinvests may be incorrect based on actual market conditions. There is a risk that the fund will vary from the target weightings in the underlying fundsdue to factors such as market fluctuations. There can be no assurance that the underlying funds will achieve their investment objectives, and the

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AIM Moderate Growth Allocation Fundperformance of the underlying funds may be lower than the asset class which they were selected to represent. The underlying funds may change theirinvestment objectives or policies without the approval of the fund. If that were to occur, the fund might be forced to withdraw its investment fromthe underlying fund at a time that is unfavorable to the fund.

Based on the structure of the fund, the fund is limited to investing in underlying funds that are part of The AIM Family of Funds˛. Moreover, theadvisor has the ability to select and substitute the underlying funds in which the fund invests, and may be subject to potential conflicts of interest inselecting underlying funds because it may receive higher fees from certain underlying funds than others. However, as a fiduciary to the fund, theadvisor is required to act in the fund’s best interest when selecting underlying funds.







Credit Risk—Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration offinancial health may result in a reduction of the credit rating of the issuer’s securities may lead to the issuer’s inability to honor its contractualobligations including making timely payment of interest and principal. Credit ratings are a measure of credit quality. Although a downgrade orupgrade of a bond’s credit ratings may or may not affect its price, a decline in credit quality may make bonds less attractive, thereby driving up theyield on the bond and driving down the price. Declines in credit quality can result in bankruptcy for the issuer and permanent loss of investment.

U.S. Government Obligations Risk—The underlying funds may invest in obligations issued by agencies and instrumentalities of the U.S.Government. These obligations vary in the level of support they receive from the U.S. Government. They may be: (i) supported by the full faith andcredit of the U.S. Treasury, such as those of the Government National Mortgage Association; (ii) supported by the right of the issuer to borrow fromthe U.S. Treasury, such as those of the Federal National Mortgage Association; (iii) supported by the discretionary authority of the U.S. Governmentto purchase the issuer’s obligations, such as those of the former Student Loan Marketing Association; or (iv) supported only by the credit of theissuer, such as those of the Federal Farm Credit Bureau. The U.S. Government may choose not to provide financial support to U.S. Governmentsponsored agencies or instrumentalities if it is not legally obligated to do so, in which case, if the issuer defaulted, the underlying fund holdingsecurities of such issuer might not be able to recover its investment from the U.S. Government.

High Yield Risk—High yield risk is a form of credit risk. Securities that are below investment grade are regarded as having predominatelyspeculative characteristics with respect to the capacity to pay interest and repay principal. Lower rated securities may be more susceptible to real or

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AIM Moderate Growth Allocation Fundperceived adverse economic and competitive industry conditions than higher grade securities. The prices of lower-rated securities have been foundto be less sensitive to interest rate changes than more highly rated investments, but more sensitive to adverse economic downturns or individualcorporate developments. Yields on lower-rated securities will fluctuate. If the issuer of lower-rated securities defaults, the fund may incur additionalexpenses to seek recovery.

The secondary markets in which lower-rated securities are traded may be less liquid than the market for higher grade securities. Less liquidity inthe secondary trading markets could adversely affect the price at which the fund could sell a particular lower-rated security when necessary to meetliquidity needs or in response to a specific economic event, such as a deterioration in the creditworthiness of the issuer, and could adversely affectthe cause large fluctuations in the net asset value of the fund’s shares. Adverse publicity and investor perceptions may decrease the values andliquidity of high yield securities.

Derivatives Risk—The value of ‘‘derivatives’’ — so-called because their value ‘‘derives’’ from the value of an underlying asset (including anunderlying security), reference rate or index — may rise or fall more rapidly than other investments. For some derivatives, it is possible to lose morethan the amount invested in the derivative. Derivatives may be used to create synthetic exposure to an underlying asset or to hedge a portfolio risk. Ifan underlying fund uses derivatives to ‘‘hedge’’ a portfolio risk, it is possible that the hedge may not succeed. This may happen for various reasons,including unexpected changes in the value of the rest of the underlying fund’s portfolio. Over the counter derivatives are also subject to counterpartyrisk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with an underlyingfund.





Market Capitalization Risk—Stocks fall into three broad market capitalization categories — large, medium and small. Investing primarily in onecategory carries the risk that, due to current market conditions, that category may be out of favor with investors. Small and mid-sized companiestend to be more vulnerable to adverse developments and more volatile than larger companies. Investments in small and mid-sized companies mayinvolve special risks, including those associated with dependence on a small management group, little or no operating history, little or no trackrecord of success, and limited product lines, markets and financial resources. Also, there may be less publicly available information about the issuersof the securities or less market interest in such securities than in the case of larger companies, each of which can cause significant price volatility.The securities of small and mid-sized may be illiquid, restricted as to resale, or may trade less frequently and in smaller volume than more widelyheld securities, which may make it difficult for an underlying fund to establish or close out a position in these securities at prevailing market prices.


Currency/Exchange Rate Risk—Certain of the underlying funds may buy or sell currencies other than the U.S. Dollar in order to capitalize onanticipated changes in exchange rates. There is no guarantee that these investments will be successful.

Reinvestment Risk—Reinvestment risk is the risk that a bond’s cash flows (coupon income and principal repayment) will be reinvested at aninterest rate below that on the original bond. If interest rates decline, the underlying bond may rise in value, but the cash flows received from thatbond may have to be invested at a lower interest rate.

High-Coupon U.S. Government Agency Mortgage-Backed Securities Risk—The underlying funds may invest in high-coupon U.S. Governmentagency mortgage-backed securities. These provide a higher coupon at the time of purchase than current prevailing market interest rates. Theunderlying funds may purchase such securities at a premium. If these securities experience a faster principal prepayment rate than expected, boththe market value of and income from such securities will decrease. The prices of high-coupon U.S. Government agency mortgage-backed securities

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AIM Moderate Growth Allocation Fundfall more slowly when interest rates rise than do prices of traditional fixed-rate securities. Some of the securities purchased by the underlying fundsare not guaranteed by the U.S. Government. The issuer of a security may default or otherwise be unable to honor a financial obligation.

Dollar Roll Transaction Risk—In a dollar roll transaction, the underlying fund sells a mortgage-backed security held by the underlying fund to afinancial institution such as a bank or broker-dealer, and simultaneously agrees to purchase a substantially similar security (same type, coupon andmaturity) from the institution at an agreed upon price and future date. Dollar roll transactions involve the risk that the market value of the securitiesretained by the underlying fund may decline below the price of the securities that the underlying fund has sold but is obligated to repurchase underthe agreement. In the event the buyer of securities under a dollar roll transaction files for bankruptcy or becomes insolvent, the underlying fund’suse of the proceeds from the sale of the securities may be restricted pending a determination by the other party or its trustee or receiver, whetherto enforce the underlying funds, obligation to repurchase the securities.

Counterparty Risk—Individually negotiated, or over-the-counter, derivatives are also subject to counterparty risk, which is the risk that the otherparty to the contract will not fulfill its contractual obligation to complete the transaction of an underlying fund.

Limited Number of Holdings Risk—Because a large percentage of an underlying fund’s assets may be invested in a limited number of securities,a change in the value of these securities could significantly affect the value of your investment in an underlying fund.

Sector Fund Risk—Certain of the underlying fund’s investments are concentrated in comparatively narrow segments of the economy. This meansthat the underlying fund’s investment concentration in the energy, financial-services, health sciences, leisure and technology sectors is higher thanmost mutual funds and the broad securities market. Consequently, the underlying fund tends to go up and down more rapidly.

Unseasoned Issuer Risk—Start-up companies or earlier stage companies, such as venture capital companies, generally have limited operatinghistories, no present market for their technologies or products, and no history of earnings or financial services. These companies may rely entirelyor in large part on private investments to finance their operations.

AIM Moderate Allocation Fund

Investment Objective, Strategies and RisksOBJECTIVE AND STRATEGIESThe fund’s investment objective is to provide total return consistent with a moderate level of risk relative to the broad stock market. The fund’sinvestment objective may be changed by the Board of Trustees without shareholder approval.

The fund seeks to meet its objective by building a portfolio of mutual fund investments that has a moderate level of risk relative to the S&P 500Index. The fund’s target allocation is to invest 60% of its total assets in underlying funds that invest primarily in equity securities (‘‘equity funds’’)and 40% of its total assets in underlying funds that invest primarily in fixed-income securities (‘‘fixed-income funds’’). Up to 20% of the assets thatare invested in equity funds will be allocated to equity funds that invest primarily in foreign securities.




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AIM Moderate Allocation FundThe fund typically maintains a portion of its assets in cash, which is generally invested in money market funds advised by the fund’s advisor. The

fund holds cash to handle its daily cash needs, which include payment of fund expenses, redemption requests and securities transactions. Theamount of cash held by the fund may increase if the fund takes a temporary defensive position. The fund may take a temporary defensive positionwhen it receives unusually large redemption requests, or if there are inadequate investment opportunities due to adverse market, economic, politicalor other conditions. A larger amount of cash could negatively affect the fund’s investment results in a period of rising market prices; conversely itcould reduce the magnitude of a fund’s loss in the event of falling market prices and provide liquidity to make additional investments or to meetredemptions. As a result, the fund may not achieve its investment objective.




Based on the structure of the fund, the fund is limited to investing in underlying funds that are part of The AIM Family of Funds˛. Moreover, theadvisor has the ability to select and substitute the underlying funds in which the fund invests, and may be subject to potential conflicts of interest inselecting underlying funds because it may receive higher fees from certain underlying funds than others. However, as a fiduciary to the fund, theadvisor is required to act in the fund’s best interest when selecting underlying funds.






Interest Rate Risk—Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally riseas interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on specific characteristics of each bond. Ameasure investors commonly use to determine this sensitivity is called duration. The longer the duration of a particular bond, the greater is its price

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AIM Moderate Allocation Fundsensitivity to interest rates. Similarly, a longer duration portfolio of securities has greater price sensitivity. Duration is determined by a number offactors including coupon rate, whether the coupon is fixed or floating, time to maturity, call or put features, and various repayment features.

Credit Risk—Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration offinancial health may result in a reduction of the credit rating of the issuer’s securities and may lead to the issuer’s inability to honor its contractualobligations including making timely payment of interest and principal. Credit ratings are a measure of credit quality. Although a downgrade orupgrade of a bond’s credit ratings may or may not affect its price, a decline in credit quality may make bonds less attractive, thereby driving up theyield on the bond and driving down the price. Declines in credit quality can result in bankruptcy for the issuer and permanent loss of investment.




Mortgage- and Asset-Backed Securities Risk—Certain of the underlying funds may invest in mortgage- and asset-backed securities. Thesesecurities are subject to prepayment or call risk, which is the risk that payments from the borrower may be received earlier or later than expecteddue to changes in the rate at which the underlying loans are prepaid. Faster prepayments often happen when market interest rates are falling. As aresult, an underlying fund may need to reinvest these early payments at lower interest rates, thereby reducing its income. Conversely, when interestrates rise, prepayments may happen more slowly, causing the underlying loans to be outstanding for a longer time, which can cause the market valueof the security to fall because the market may view its interest rate as too low for a longer-term investment.


Leverage Risk—The use of the derivatives may give rise to a form of leverage. Leverage may cause an underlying fund’s portfolio to be morevolatile than if the fund had not been leveraged because leverage can exaggerate the effect of any increase or decrease in the value of securities heldby the underlying fund.




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AIM Moderate Allocation FundGrowth Investing Risk—Certain of the underlying funds may invest in ‘‘growth’’ stocks. ‘‘Growth’’ stocks can perform differently from the market

as a whole and other types of stocks and tend to be more expensive relative to their earnings or assets compared with other types of stocks. As aresult, growth stocks tend to be more sensitive to changes in their earnings and can be more volatile than other types of stocks.


Non-Diversification Risk—AIM Floating Rate Fund, one of the underlying funds, is non-diversified and can invest a greater portion of its assets inthe loans or securities of one borrower or issuer than a diversified fund. As a result, changes in the market value of a single investment could causegreater fluctuations in share price than would occur in a more diversified fund.

High-Coupon U.S. Government Agency Mortgage-Backed Securities Risk—The underlying funds may invest a portion of their assets in high-coupon U.S. Government agency mortgage-backed securities. These provide a higher coupon at the time of purchase than current prevailing marketinterest rates. The underlying funds may purchase such securities at a premium. If these securities experience a faster principal prepayment ratethan expected, both the market value of and income from such securities will decrease. The prices of high-coupon U.S. Government agencymortgage-backed securities fall more slowly when interest rates rise than do prices of traditional fixed-rate securities. Some of the securitiespurchased by the underlying funds are not guaranteed by the U.S. Government. The issuer of a security may default or otherwise be unable to honor afinancial obligation.


Dollar Roll Transaction Risk—In a dollar roll transaction, the underlying fund sells a mortgage-backed security held by the underlying fund to afinancial institution such as a bank or broker-dealer, and simultaneously agrees to purchase a substantially similar security (same type, coupon andmaturity) from the institution at an agreed upon price and future date. Dollar roll transactions involve the risk that the market value of the securitiesretained by the underlying fund may decline below the price of the securities that the underlying fund has sold but is obligated to repurchase underthe agreement. In the event the buyer of securities under a dollar roll transaction files for bankruptcy or becomes insolvent, the underlying fund’suse of the proceeds from the sale of the securities may be restricted pending a determination by the other party or its trustee or receiver, whetherto enforce the underlying fund’s obligation to repurchase the securities.

Risks Relating to Banking and Financial Services Industries—To the extent that the underlying fund is concentrated in securities of issuers inthe banking and financial services industries, the underlying fund’s performance will depend to a greater extent on the overall condition of thoseindustries. Financial services companies are highly dependent on the supply of short-term financing. The value of securities of issuers in thebanking and financial services industry can be sensitive to changes in government regulations and interest rates and to economic downturns in theUnited States and abroad.

AIM Moderately Conservative Allocation Fund

Investment Objective, Strategies and RisksOBJECTIVE AND STRATEGIESThe fund’s investment objective is to provide total return consistent with a lower level of risk relative to the broad stock market. The fund’s investmentobjective may be changed by the Board of Trustees without shareholder approval.

The fund seeks to meet its objective by building a portfolio of mutual fund investments that has a lower level of risk than the S&P 500 Index. Thefund’s target allocation is to invest 60% of its total assets in underlying funds that invest primarily in fixed-income securities and 40% of its totalassets in underlying funds that invest primarily in equity securities. The fund may invest its cash allocation directly in cash equivalents and U.S.government securities rather than a money market fund.

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AIM Moderately Conservative Allocation FundThe advisor uses a three-step process to create the fund’s portfolio. The first step is a strategic asset allocation by the advisor among broad asset

classes. The second step involves the actual selection by the advisor of underlying funds to represent the broad asset classes and the determinationby the advisor of target weightings in these underlying funds. The third step is the ongoing monitoring of a fund’s asset class allocations, underlyingfunds and target weightings.







Based on the structure of the fund, the fund is limited to investing in underlying funds that are a part of The AIM Family of Funds˛. Moreover, theadvisor has the ability to select and substitute the underlying funds in which the fund invests, and may be subject to potential conflicts of interest inselecting underlying funds because it may receive higher fees from certain underlying funds than others. However, as a fiduciary to the fund, theadvisor is required to act in the fund’s best interest when selecting underlying funds.




Credit Risk—Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration offinancial health may result in a reduction of the credit rating of the issuer’s securities may lead to the issuer’s inability to honor its contractual

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AIM Moderately Conservative Allocation Fundobligations including making timely payment of interest and principal. Credit ratings are a measure of credit quality. Although a downgrade orupgrade of a bond’s credit ratings may or may not affect its price, a decline in credit quality may make bonds less attractive, thereby driving up theyield on the bond and driving down the price. Declines in credit quality can result in bankruptcy for the issuer and permanent loss of investment.


High-Coupon U.S. Government Agency Mortgage-Backed Securities Risk—The underlying funds may invest in high-coupon U.S. Governmentagency mortgage-backed securities. These provide a higher coupon at the time of purchase than current prevailing market interest rates. Theunderlying funds may purchase such securities at a premium. If these securities experience a faster principal prepayment rate than expected, boththe market value of and income from such securities will decrease. The prices of high-coupon U.S. Government agency mortgage-backed securitiesfall more slowly when interest rates rise than do prices of traditional fixed-rate securities. Some of the securities purchased by the underlying fundsare not guaranteed by the U.S. Government. The issuer of a security may default or otherwise be unable to honor a financial obligation.


The secondary markets in which lower-rated securities are traded may be less liquid than the market for higher grade securities. Less liquidity inthe secondary trading markets could adversely affect the price at which the fund could sell a particular lower-rated security when necessary to meetliquidity needs or in response to a specific economic event, such as a deterioration in the creditworthiness of the issuer, and could adversely affectand cause large fluctuations in the net asset value of the fund’s shares. Adverse publicity and investor perceptions may decrease the values andliquidity of high yield securities.




Convertible Securities Risk—The values of convertible securities in which an underlying fund may invest will be affected by market interest rates,the risk that the issuer may default on interest or principal payments and the value of the underlying common stock into which these securities maybe converted. Specifically, because these types of securities pay fixed interest and dividends, their values may fall if market interest rates rise and

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AIM Moderately Conservative Allocation Fundrise if market interest rates fall. Additionally, an issuer may have the right to buy back certain of the convertible securities at a time and a price that isunfavorable to the underlying fund.









Reverse Repurchase Agreement Risk—Reverse repurchase agreements are agreements that involve the sale by the underlying fund of securities tofinancial institutions such as banks and broker-dealers, with an agreement that the underlying fund will repurchase the securities at an agreed uponprice and date. Reverse repurchase agreements involve the risk that the market value of securities to be purchased by the underlying fund maydecline below the price at which the fund is obligated to repurchase the securities, or that the other party may default on its obligation, so that theunderlying fund is delayed or prevented from completing the transaction. In the vent the buyer of securities under a reverse repurchase agreementfiles for bankruptcy or becomes insolvent, the fund’s use of the proceeds from the sale of the securities may be restricted pending a determinationby the other party, or its trustee or receiver, whether to enforce the underlying fund’s obligation to repurchase the securities.



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AIM Conservative Allocation Fund

Investment Objective, Strategies and RisksOBJECTIVE AND STRATEGIESThe fund’s investment objective is to provide total return consistent with a lower level of risk relative to the broad stock market. The fund’s investmentobjective may be changed by the Board of Trustees without shareholder approval.

The fund seeks to meet its objective by building a portfolio of mutual fund investments that has a lower level of risk than the S&P 500 Index. Thefund’s target allocation is to invest 65% of its total assets in underlying funds that invest primarily in fixed-income securities, 25% of its total assets inunderlying funds that invest primarily in equity securities, and 10% in cash or cash equivalents. The fund may invest its cash allocation in cashequivalents including shares of affiliated money market funds and U.S. government securities.








Based on the structure of the fund, the fund is limited to investing in underlying funds that are a part of The AIM Family of Funds˛. Moreover, theadvisor has the ability to select and substitute the underlying funds in which the fund invests, and may be subject to potential conflicts of interest inselecting underlying funds because it may receive higher fees from certain underlying funds than others. However, as a fiduciary to the fund, theadvisor is required to act in the fund’s best interest when selecting underlying funds.


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AIM Conservative Allocation FundMarket Risk—The prices of and the income generated by securities held by the underlying funds may decline in response to certain events,

including those directly involving the companies whose securities are owned by the underlying funds; general economic and market conditions;regional or global economic instability; and currency and interest rate fluctuations.



High-Coupon U.S. Government Agency Mortgage-Backed Securities Risk—The underlying funds may invest in high-coupon U.S. Governmentagency mortgage-backed securities. These provide a higher coupon at the time of purchase than current prevailing market interest rates. Theunderlying funds may purchase such securities at a premium. If these securities experience a faster principal prepayment rate than expected, boththe market value of and income from such securities will decrease. The prices of high-coupon U.S. Government agency mortgage-backed securitiesfall more slowly when interest rates rise than do prices of traditional fixed-rate securities. Some of the securities purchased by the underlying fundsare not guaranteed by the U.S. Government. The issuer of a security may default or otherwise be unable to honor a financial obligation.





Derivatives Risk—The value of ‘‘derivatives’’ — so-called because their value ‘‘derives’’ from the value of an underlying asset (including anunderlying security), reference rate or index — may rise or fall more rapidly than other investments. For some derivatives, it is possible to lose morethan the amount invested in the derivative. Derivatives may be used to create synthetic exposure to an underlying asset or to hedge a portfolio risk. Ifan underlying fund uses derivatives to ‘‘hedge’’ a portfolio risk, it is possible that the hedge may not succeed. This may happen for various reasons,

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AIM Conservative Allocation Fundincluding unexpected changes in the value of the rest of the underlying fund’s portfolio. Over the counter derivatives are also subject to counterpartyrisk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with an underlyingfund.


Repurchase Agreement Risk—If the seller of a repurchase agreement in which an underlying fund invests defaults on its obligation or declaresbankruptcy, the underlying fund may experience delays in selling the securities underlying the repurchase agreement. As a result, an underlying fundmay incur losses arising from decline in the value of those securities, reduced levels of income and expenses of enforcing its rights.

Prepayment Risk—The ability of an issuer of a floating rate loan or debt security to repay principal prior to maturity can limit the potential forgains by the underlying fund. Such prepayments may require the fund to replace the loan or debt security with a lower yielding security. This mayadversely affect the underlying fund’s yield.


Money Market Risk—The investment in an underlying fund that is a money market fund is not a deposit in a bank and is not insured orguaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although an underlying fund that is a money market fundseeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the underlying money market fund.Additionally, an underlying money market fund’s yield will vary as the short-term securities in its portfolio mature and the proceeds are reinvestedin securities with different interest rates.

The following factors could reduce an underlying money market fund’s income and/or share price.m sharply rising or falling interest rates;m downgrades of credit ratings or default of any of an underlying money market fund’s holdings;m the risks generally associated with concentrating investments in the banking industry, such as interest rate risk, credit risk and regulatory

developments relating to the banking and financial services industries; orm the risks generally associated with U.S. dollar-denominated foreign investments, including political and economic upheaval, seizure of

nationalization of deposits, imposition of taxes or other restrictions on the payment of principal and interest.Value Investing Risk—Certain of the underlying funds may invest in ‘‘value’’ stocks. ‘‘Value’’ stocks can react differently to issuer, political,

market and economic developments than the market as a whole and other types of stocks. Value stocks tend to be inexpensive relative to theirearnings or assets compared to other types of stocks. However, value stocks can continue to be inexpensive for long periods of time and may not everrealize their full value.




Liquidity Risk—A majority of an underlying fund’s assets are likely to be invested in loans and securities that are less liquid than those traded onnational exchanges. Loans and securities with reduced liquidity involve greater risk than securities with more liquid markets. Market quotations forsuch loans and securities may vary over time, and if the credit quality of a loan unexpectedly declines, secondary trading of that loan may declinefor a period of time. In the event that the fund voluntarily or involuntarily liquidates portfolio assets during periods of infrequent trading, it may notreceive full value for those assets.


High Yield Risk—High yield risk is a form of credit risk. Securities that are below investment grade are regarded as having predominatelyspeculative characteristics with respect to the capacity to pay interest and repay principal. Lower rated securities may be more susceptible to real orperceived adverse economic and competitive industry conditions than higher grade securities. The prices of lower-rated securities have been found

50


AIM Conservative Allocation Fundto be less sensitive to interest rate changes than more highly rated investments, but more sensitive to adverse economic downturns or individualcorporate developments. Yields on lower-rated securities will fluctuate. If the issuer of lower-rated securities defaults, the fund may incur additionalexpenses to seek recovery.


The loans in which an underlying fund may invest in are typically non-investment grade which involve a greater risk of default on interest andprincipal payments and of price changes due to the changes in the credit quality of the issuer.

The value of lower quality floating rate loans can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, oreconomic developments. A significant portion of an underlying fund’s floating rate investments may be issued in connection with highly leveragedtransactions. These obligations are subject to greater credit risks, including a greater possibility of default or bankruptcy of the borrower.

The terms of the senior secured floating rate loans in which an underlying fund typically invests require that collateral be maintained to supportpayment of the obligations. However, the value of the collateral may decline after the underlying fund invests. There is also a risk that the value of thecollateral may not be sufficient to cover the amount owed to the underlying fund. In addition, collateral securing a loan may be found invalid, maybe used to pay other outstanding obligations of the borrower under applicable law or may be difficult to sell. In the event that a borrower defaults,the underlying fund’s access to the collateral may be limited by bankruptcy or other insolvency laws. There is also the risk that the collateral may bedifficult to liquidate, or that a majority of the collateral may be illiquid. As a result, the underlying fund may not receive payments to which it isentitled.

Credit Risk—Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration offinancial health may result in a reduction of the credit rating of the issuer’s securities may lead to the issuer’s inability to honor its contractualobligations including making timely payment of interest and principal. Credit ratings are a measure of credit quality. Although a downgrade orupgrade of a bond’s credit ratings may or may not affect its price, a decline in credit quality may make bonds less attractive, thereby driving up theyield on the bond and driving down the price. Declines in credit quality can result in bankruptcy for the issuer and permanent loss of investment.

Municipal Securities Risk—Certain of the underlying funds may invest in Municipal Securities. The value of, payment of interest and repayment ofprincipal with respect to, and the ability of the underlying fund to sell, a municipal security may be affected by constitutional amendments, legislativeenactments, executive orders, administrative regulations and voter initiatives as well as the economics of the regions in which the issuers in whichthe underlying fund invests are located. Revenue bonds are generally not backed by the taxing power of the issuing municipality. To the extent that amunicipal security in which the fund invests is not heavily followed by the investment community or such security issue is relatively small, thesecurity may be difficult to value or sell at a fair price.

Industry Focus Risk—To the extent that an underlying fund invests in securities issued or guaranteed by companies in the banking and financialservices industries, the underlying fund’s performance will depend to a greater extent on the overall condition of those industries. Financial servicescompanies are highly dependent on the supply of short-term financing. The value of securities of issuers in the banking and financial servicesindustry can be sensitive to changes in government regulation and interest rates and to economic downturns in the United States and abroad.


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AIM Money Market Fund

Investment Objective, Strategies and RisksOBJECTIVE AND STRATEGIESThe fund’s investment objective is to provide as high a level of current income as is consistent with the preservation of capital and liquidity.

The fund’s investment objective may be changed by the Board of Trustees without shareholder approval.The fund invests only in high-quality U.S. dollar-denominated short term debt obligations, including: (i) securities issued by the U.S. Government

or its agencies; (ii) bankers’ acceptances, certificates of deposit, and time deposits from U.S. or foreign banks; (iii) repurchase agreements;(iv) commercial paper; (v) taxable municipal securities; (vi) master notes; and (vii) cash equivalents.

The fund invests in accordance with industry-standard requirements for money market funds for the quality, maturity and diversification ofinvestments.

The fund may invest up to 50% of its assets in U.S. dollar-denominated foreign securities.The fund may invest in securities issued or guaranteed by companies in the financial services industry.The fund’s investments in the types of securities described in this prospectus vary from time to time, and at any time, the fund may not be invested

in all types of securities described in this prospectus. Any percentage limitations with respect to assets of the fund are applied at the time ofpurchase.

In selecting securities for the fund’s portfolio, the portfolio managers focus on securities that offer safety, liquidity, and a competitive yield. Theportfolio managers conduct a credit analysis of each potential issuer prior to the purchase of its securities.

The portfolio managers normally hold portfolio securities to maturity. The portfolio managers consider selling a security: (i) if the issuer’s creditquality declines (ii) as a result of interest rate changes, or (iii) to enhance yield.

RISKSThe principal risks investing in the fund are:

Market Risk—The prices of and the income generated by securities held by the fund may decline in response to certain events, including thosedirectly involving the issuers whose securities are owned by the fund; general economic and market conditions; regional or global economicinstability; and currency and interest rate fluctuations.

Money Market Fund Risk—The fund is a money market fund and an investment in the fund is not a deposit in a bank and is not insured orguaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of aninvestment at $1.00 per share, it is possible to lose money by investing in the fund. Additionally, the fund’s yield will vary as the short-term securitiesin its portfolio mature or are sold and the proceeds are reinvested in other securities.

Interest Rate Risk—Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally riseas interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on specific characteristics of each bonds. Ameasure investors commonly use to determine this sensitivity is called duration. The longer the duration of a particular bond, the greater is its pricesensitivity to interest rate changes. Similarly, a longer duration portfolio of securities has greater price sensitivity. Duration is determined by anumber of factors including coupon rate, whether the coupon is fixed or floating, time to maturity, call or put features, and various repaymentfeatures.

Credit Risk—Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such a deterioration offinancial health may result in a reduction of the credit rating of the issuer’s securities and may lead to the issuer’s inability to honor its contractualobligations including making timely payment of interest and principal. Credit ratings are a measure of credit quality. Although a downgrade orupgrade of a bond’s credit ratings may or may not affect its price, a decline in credit quality may make bonds less attractive, thereby driving up theyield on the bond and driving down the price. Declines in credit quality may result in bankruptcy for the issuer and permanent loss of investment.Changes in the credit quality of financial institutions providing liquidity and credit enhancements could cause the fund to experience a loss and mayaffect its share price.

U.S. Government Obligations Risk—The fund may invest in obligations issued by agencies and instrumentalities of the U.S. Government. Theseobligations vary in the level of support they receive from the U.S. Government. They may be: (i) supported by the full faith and credit of the U.S.Treasury, such as those of the Government National Mortgage Association; (ii) supported by the right of the issuer to borrow from the U.S. Treasury,such as those of the Federal National Mortgage Association; (iii) supported by the discretionary authority of the U.S. Government to purchase theissuer’s obligations, such as those of the former Student Loan Marketing Association; or (iv) supported only by the credit of the issuer, such as thoseof the Federal Farm Credit Bureau. The U.S. Government may choose not to provide financial support to U.S. Government sponsored agencies or

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AIM Money Market Fundinstrumentalities if it is not legally obligated to do so, in which case, if the issuer defaulted, the fund holding securities of such issuer might not beable to recover its investment from the U.S. Government.

Municipal Securities Risk—The value of, payment of interest and repayment of principal with respect to, and the ability of the fund to sell, amunicipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations and voterinitiatives as well as the economics of the regions in which the issuers in which the fund invests are located. Revenue bonds are generally not backedby the taxing power of the issuing municipality. To the extent that a municipal security in which the fund invests is not heavily followed by theinvestment community or such security issue is relatively small, the security may be difficult to value or sell at a fair price.

Foreign Securities Risk—The dollar value of the fund’s foreign investments will be affected by changes in the exchange rates between the dollarand the currencies in which those investments are traded. The value of the fund’s foreign investments may be adversely affected by political andsocial instability in their home countries, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligationsin those countries. Foreign companies generally may be subject to less stringent regulations than U.S. companies, including financial reportingrequirements and auditing and accounting controls. As a result, there generally is less publicly available information about foreign companies thanabout U.S. companies. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market orother factors.

Repurchase Agreement Risk—The fund enters into repurchase agreements. If the seller of a repurchase agreement in which the fund investsdefaults on its obligation or declares bankruptcy, the fund may experience delays in selling the securities underlying the repurchase agreement. As aresult, the fund may incur losses arising from a decline in the value of those securities, reduced levels of income and expenses of enforcing itsrights.

Risks Relating to Banking and Financial Services Industries—To the extent that the fund invests in securities issued or guaranteed bycompanies in the banking and financial services industries, the fund’s performance will depend to a greater extent on the overall condition of thoseindustries. Financial services companies are highly dependent on the supply of short-term financing. The value of securities of issuers in the bankingand financial services industry can be sensitive to changes in government regulation and interest rates and to economic downturns in the UnitedStates and abroad.

Management Risk—There is no guarantee that the investment techniques and risk analyses used by the fund’s portfolio managers will producethe desired results.

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