INVESCO BOND FUNDS, INC.
Supplement to Investor Class Prospectus dated October 31, 1999
Effective January 31, 2000, the existing class of shares of INVESCO High Yield
Fund, INVESCO Select Income Fund, INVESCO Tax-Free Bond Fund, and INVESCO U.S.
Government Securities Fund were designated as "Investor Class."
The section of the Prospectus entitled "Risks Associated With Particular
Investments - Foreign Securities Risks" is amended to (1) delete the second
sentence of the first paragraph and (2) substitute the following in its place:
High Yield and Select Income Funds may invest up to 25% of their assets in
foreign debt securities.
The section of the Prospectus entitled "Fund Management" is amended to add the
following paragraph after the second paragraph:
A I M Capital Management, Inc. ("AIM"), located at 11 Greenway Plaza, Suite
100, Houston, Texas, is the sub-adviser to Tax-Free Bond Fund.
The section of the Prospectus entitled "Fund Management" is amended to (1)
delete the third paragraph in its entirety and (2) substitute the following
paragraph in its place:
INVESCO, AIM and IDI are subsidiaries of AMVESCAP PLC.
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the first, fourth and fifth paragraphs and (2) substitute the following
paragraphs in their place, respectively:
The following individuals are primarily responsible for the day-to-day
management of each Fund's portfolio holdings:
FUND PORTFOLIO MANAGER(S)
High Yield Donovan J. (Jerry) Paul
Select Income Donovan J. (Jerry) Paul
Tax-Free Bond Richard A. Berry
U.S. Government Securities Richard R. Hinderlie
RICHARD A. BERRY, a vice president and senior portfolio manager of AIM, is
the portfolio manager of Tax-Free Bond Fund. Richard manages several other
AIM fixed-income funds. Before joining AIM in 1987, he served at various
times as senior vice president for InterFirst Investment Management
Company, manager of investor relations at Texas Industries, Inc., vice
president of Banc Texas, and investment officer at Southwestern Life
Insurance Company. Richard is a Chartered Financial Analyst. He received
his M.B.A. in finance and his B.B.A. from Texas Christian University.
DICK HINDERLIE is a member of the INVESCO Fixed-Income Team, which is led
by Jerry Paul.
The section of the Prospectus entitled "Your Account Services" is amended to add
the following new subsection after the subsection entitled "Telephone
Transactions":
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HOUSEHOLDING. To save money for the Funds, INVESCO will send only one copy
of a prospectus or financial report to each household address. This
process, known as "householding," is used for most required shareholder
mailings. It does not apply to account statements. You may, of course,
request an additional copy of a prospectus or financial report at any time
by calling or writing INVESCO. You may also request that householding be
eliminated from all of your required mailings.
This Supplement supercedes the Supplements dated January 7, 2000 and January 26,
2000.
The date of this Supplement is May 10, 2000.
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INVESCO BOND FUNDS, INC.
Supplement to Class C Prospectus dated February 15, 2000
The section of the Prospectus entitled "Risks Associated With Particular
Investments - Foreign Securities Risks" is amended to (1) delete the second
sentence of the first paragraph and (2) substitute the following in its place:
High Yield and Select Income Funds may invest up to 25% of their assets in
foreign debt securities.
The section of the Prospectus entitled "Fund Management" is amended to add the
following paragraph after the second paragraph:
A I M Capital Management, Inc. ("AIM"), located at 11 Greenway Plaza, Suite
100, Houston, Texas, is the sub-adviser to Tax-Free Bond Fund.
The section of the Prospectus entitled "Fund Management" is amended to (1)
delete the third paragraph in its entirety and (2) substitute the following
paragraph in its place:
INVESCO, AIM and IDI are subsidiaries of AMVESCAP PLC.
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the first paragraph and (2) substitute the following paragraph in its
place:
The following individuals are primarily responsible for the day-to-day
management of each Fund's portfolio holdings:
FUND PORTFOLIO MANAGER(S)
High Yield Donovan J. (Jerry) Paul
Select Income Donovan J. (Jerry) Paul
Tax-Free Bond Richard A. Berry
U.S. Government Securities Richard R. Hinderlie
The section of the Prospectus entitled "Portfolio Managers" is amended to add
the following paragraph after the first paragraph.
RICHARD A. BERRY, a vice president and senior portfolio manager of AIM, is
the portfolio manager of Tax-Free Bond Fund. Richard manages several other
AIM fixed-income funds. Before joining AIM in 1987, he served at various
times as senior vice president for InterFirst Investment Management
Company, manager of investor relations at Texas Industries, Inc., vice
president of Banc Texas, and investment officer at Southwestern Life
Insurance Company. Richard is a Chartered Financial Analyst. He received
his M.B.A. in finance and his B.B.A. from Texas Christian University.
This Supplement supersedes the Supplement dated February 15, 2000.
The date of this Supplement is May 10, 2000.
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INVESCO BOND FUNDS, INC.
Supplement to Statement of Additional Information
Dated February 15, 2000
The section of the SAI entitled "Management of the Funds" is amended to add the
following subsection after the subsection entitled "The Investment Advisory
Agreement:"
THE SUB-ADVISORY AGREEMENT
With respect to Tax-Free Bond Fund, A I M Capital Management, Inc. ("AIM")
serves as sub-adviser to the Fund pursuant to a sub-advisory agreement
dated May 10, 2000 (the "Sub-Agreement") with INVESCO.
The Sub-Agreement provides that AIM, subject to the supervision of INVESCO,
shall manage the investment portfolios of the Fund in conformity with the
Fund's investment policies. These management services include: (a) managing
the investment and reinvestment of all the assets, now or hereafter
acquired, of the Fund, and executing all purchases and sales of portfolio
securities; (b) maintaining a continuous investment program for the Fund,
consistent with (i) the Fund's investment policies as set forth in the
Company's Articles of Incorporation, Bylaws and Registration Statement, as
from time to time amended, under the 1940 Act, as amended, and in any
prospectus and/or statement of additional information of the Fund, as from
time to time amended and in use under the 1933 Act and (ii) the Company's
status as a regulated investment company under the Internal Revenue Code of
1986, as amended; (c) determining what securities are to be purchased or
sold for the Fund, unless otherwise directed by the directors of the
Company or INVESCO, and executing transactions accordingly; (d) providing
the Fund the benefit of all of the investment analysis and research, the
reviews of current economic conditions and trends, and the consideration of
long-range investment policy now or hereafter generally available to
investment advisory customers of AIM; (e) determining what portion of the
Fund's assets should be invested in the various types of securities
authorized for purchase by the Fund; and (f) making recommendations as to
the manner in which voting rights, rights to consent to Company action and
any other rights pertaining to the portfolio securities of the Fund shall
be exercised.
The Sub-Agreement provides that, as compensation for its services, AIM
shall receive from INVESCO, at the end of each month, a fee based upon the
average daily value of the Fund's net assets. The sub-advisory fees are
paid by INVESCO, NOT the Fund. The fees are calculated at the following
annual rates:
Tax-Free Bond Fund
o 0.22% on the first $300 million of the Fund's average net assets;
o 0.18% of the Fund's average net assets from $300 million; and
o 0.14% of the Fund's average net assets from $500 million.
The date of this Supplement is May 10, 2000.
