INVESCO TAX-FREE INCOME FUNDS, INC.
INVESCO Tax-Free Long-Term Bond Fund
INVESCO Tax-Free Intermediate Bond Fund
Supplement to Prospectuses
dated October 31, 1995
Both Funds:
The sixth paragraph in the section of each Fund's Prospectus entitled "The Fund
and Its Management" is hereby amended to read as follows:
Under a Transfer Agency Agreement, IFG acts as registrar, transfer agent
and dividend disbursing agent for the Fund. The Fund pays an annual fee of
$26.00 per shareholder account or omnibus account participant for these
services. Registered broker-dealers, third party administrators of tax-qualified
retirement plans and other entities, including affiliates of IFG, may provide
equivalent services to the Fund. In these cases, IFG may pay, out of the fee it
receives from the Fund, an annual sub-transfer agency or record-keeping fee to
the third party.
INVESCO Tax-Free Intermediate Bond Fund Only:
The section of the INVESCO Tax-Free Intermediate Bond Fund's Prospectus entitled
"Annual Fund Expenses" is amended to read as follows:
Annual Fund Expenses
The Fund is no-load; there are no fees to purchase, exchange or redeem
shares. The Fund, however, is authorized to pay a Rule 12b-1 distribution fee of
one quarter of one percent of the Fund's average net assets each year. (See "How
To Buy Shares--Distribution Expenses.")
Like any company, the Fund has operating expenses--such as portfolio
management, accounting, shareholder servicing, maintenance of shareholder
accounts, and other expenses. These expenses are paid from the Fund's assets.
Lower expenses therefore benefit investors by increasing the Fund's investment
return.
We calculate annual operating expenses as a percentage of the Fund's
average annual net assets. To keep expenses competitive, the Fund's manager
voluntarily reimbursed the Fund for amounts in excess of 0.70% of average net
assets through April 30, 1996, and reimburses the Fund for amounts in excess of
0.80% of average net assets effective May 1, 1996.
Annual Fund Operating Expenses
(as a percentage of average net assets)*
Management Fee............................................... 0.50%
12b-1 Fees................................................... 0.25%
Other Expenses (after absorbed expenses)(1).................. 0.05%
Total Fund Operating Expenses (after absorbed expenses)(1)... 0.80%
(1) In the absence of the voluntary expense limitation, the Fund's "Other
Expenses" and "Total Fund Operating Expenses" would have been 1.70% and 2.45%,
respectively, based on the Fund's actual expenses for the fiscal year ended June
30, 1995.
Example*
A shareholder would pay the following expenses on a $1,000 investment
for the periods shown, assuming a hypothetical 5% annual return and redemption
at the end of each time period. (Of course, actual operating expenses are paid
from the Fund's assets, and are deducted from the amount of income available for
distribution to shareholders; they are not charged directly to shareholder
accounts.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$8 $26 $45 $99
The purpose of this table is to assist you in understanding the various
costs and expenses that you will bear directly or indirectly. The example should
not be considered a representation of past or future performance or expenses,
and actual annual returns and expenses may be greater or less than those shown.
For more information on the Fund's expenses, see "The Fund and Its Management"
and "How to Buy Shares--Distribution Expenses."
Since the Fund pays a distribution fee, investors who own Fund shares
for a long period of time may pay more than the economic equivalent of
the maximum front-end sales charge permitted for mutual funds by the
National Association of Securities Dealers, Inc. *The expense
information in the above tables has been presented on a basis that
assumes that the Fund's current 0.80% expense limitation had been in
effect during the year ended June 30, 1995.
The eighth paragraph in the section of the INVESCO Tax-Free Intermediate Bond
Fund's Prospectus entitled "The Fund and Its Management" is hereby amended to
read as follows:
The Fund's expenses, which are accrued daily, are deducted from total
income before dividends are paid. Total expenses of the Fund for the fiscal year
ended June 30, 1995, including investment management fees (but excluding
brokerage commissions, which are a cost of acquiring securities), amounted to
0.70% of the Fund's average net assets. Certain Fund expenses were, and are,
absorbed voluntarily by IFG pursuant to a commitment to the Fund in order to
ensure that the Fund's total operating expenses did not exceed 0.70% of the
Fund's average net assets (through April 30, 1996) and will not exceed 0.80% of
the Fund's average net assets (beginning May 1, 1996). This commitment may be
changed following consultation with the Company's board of directors. In the
absence of this voluntary expense limitation, the Fund's total operating
expenses would have been 2.45% of its average net assets.
The date of this Supplement is May 1, 1996.
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INVESCO Tax-Free Income Funds, Inc.
Supplement to Statement of Additional Information
Dated October 31, 1995
The second paragraph in the section of the Funds' Statement of Additional
Information entitled "The Funds and Their Management -- Transfer Agency
Agreement" is hereby amended to read as follows:
The Transfer Agency Agreement provides that the Funds shall pay to
INVESCO a fee of $26.00 per shareholder account or omnibus account
participant per year. This fee is paid monthly at 1/12 of the annual fee
and is based upon the actual number of shareholder accounts or omnibus
account participants in existence during the month. For the fiscal years
ended June 30, 1995, 1994, and 1993, the Tax-Free Long-Term Bond Fund paid
INVESCO transfer agency fees of $390,390 (prior to the voluntary
absorption of certain Fund expenses by INVESCO), $310,709, and $310,270,
respectively. For the fiscal year ended June 30, 1995 and the period ended
June 30, 1994, the Tax-Free Intermediate Bond Fund paid INVESCO transfer
agency fees (prior to the voluntary absorption of certain Fund expenses by
INVESCO) of $12,446 and $3,083, respectively.
The section of the above Funds' Statement of Additional Information entitled
"The Funds and Their Management -- Officers and Directors of the Company" is
hereby amended to (1) delete the second through the nineteenth paragraphs and
(2) substitute the following new paragraphs in their place:
All of the officers and directors of the Company hold comparable
positions with INVESCO Diversified Funds, Inc., INVESCO Dynamics Fund,
Inc., INVESCO Emerging Opportunity Funds, Inc., INVESCO Growth Fund, Inc.,
INVESCO Income Funds, Inc., INVESCO Industrial Income Fund, Inc., INVESCO
International Funds, Inc., INVESCO Money Market Funds, Inc., INVESCO
Multiple Asset Funds, Inc., INVESCO Specialty Funds, Inc., INVESCO
Strategic Portfolios, Inc., and INVESCO Variable Investment Funds, Inc.
All of the directors of the Company also serve as trustees of INVESCO
Value Trust. In addition, all of the directors of the Company also are
directors of INVESCO Advisor Funds, Inc. (formerly known as The EBI Funds,
Inc.); and, with the exception of Mr. Hesser, trustees of INVESCO
Treasurer's Series Trust. All of the officers of the Company also hold
comparable positions with INVESCO Value Trust. Set forth below is
information with respect to each of the Company's officers and directors.
Unless otherwise indicated, the address of the directors and officers is
Post Office Box 173706, Denver, Colorado 80217-3706. Their affiliations
represent
<PAGE>
their principal occupations during the past five years.
CHARLES W. BRADY,*+ Chairman of the Board. Chief
Executive Officer and Director of INVESCO PLC, London, England,
and of various subsidiaries thereof. Chairman of the Board of
INVESCO Advisor Funds, Inc., INVESCO Treasurer's Series Trust
and The Global Health Sciences Fund. Address: 1315 Peachtree
Street, NE, Atlanta, Georgia. Born: May 11, 1935.
FRED A. DEERING,+# Vice Chairman of the Board. Vice
Chairman of INVESCO Advisor Funds, Inc., and INVESCO
Treasurer's Series Trust. Trustee of The Global Health Sciences
Fund. Formerly, Chairman of the Executive Committee and
Chairman of the Board of Security Life of Denver Insurance
Company, Denver, Colorado; Director of ING America Life Insurance
Company, Urbaine Life Insurance Company and Midwestern United
Life Insurance Company. Address: Security Life Center, 1290
Broadway, Denver, Colorado. Born: January 12, 1928.
DAN J. HESSER,+* President and Director. Chairman of the
Board, President, and Chief Executive Officer of INVESCO Funds
Group, Inc.; Director of INVESCO Trust Company. Trustee of The
Global Health Sciences Fund. Born: December 27, 1939.
VICTOR L. ANDREWS,** Director. Professor Emeritus,
Chairman Emeritus and Chairman of the CFO Roundtable of the
Department of Finance of Georgia State University, Atlanta, Georgia;
President, Andrews Financial Associates, Inc. (consulting firm);
formerly, member of the faculties of the Harvard Business School
and the Sloan School of Management of MIT. Dr. Andrews is also
a Director of The Southeastern Thrift and Bank Fund, Inc. and The
Sheffield Funds, Inc. Address: 4625 Jettridge Drive, Atlanta,
Georgia. Born: June 23, 1930.
BOB R. BAKER,+** Director. President and Chief Executive
Officer of AMC Cancer Research Center, Denver, Colorado, since
January 1989; until mid-December 1988, Vice Chairman of the Board
of First Columbia Financial Corporation (a financial institution),
Englewood, Colorado. Formerly, Chairman of the Board and Chief
Executive Officer of First Columbia Financial Corporation. Address:
1775 Sherman Street, #1000, Denver, Colorado. Born: August 7,
1936.
LAWRENCE H. BUDNER,# Director. Trust Consultant; prior
to June 30, 1987, Senior Vice President and Senior Trust Officer of
InterFirst Bank, Dallas, Texas. Address: 7608 Glen Albens Circle,
<PAGE>
Dallas, Texas. Born: July 25, 1930.
DANIEL D. CHABRIS,+# Director. Financial Consultant;
Assistant Treasurer of Colt Industries Inc., New York, New York,
from 1966 to 1988. Address: 15 Sterling Road, Armonk, New York.
Born: August 1, 1923.
A.D. FRAZIER, JR.*,** Director. Chief Operating Officer of the
Atlanta Committee for the Olympic Games. From 1982 to 1991, Mr.
Frazier was employed in various capacities by First Chicago Bank,
most recently as Executive Vice President of the North American
Banking Group. Trustee of The Global Health Sciences Fund.
Director of Magellan Health Services, Inc. and of Charter Medical
Corp. Address: 250 Williams Street, Suite 6000, Atlanta, Georgia.
Born: June 23, 1944.
HUBERT L. HARRIS, JR.*, Director. President of INVESCO
Services, Inc. (since January 1990). Director of INVESCO PLC and
Chief Financial Officer of INVESCO Individual Services Group.
Member of the Executive Committee of the Alumni Board of Trustees
of Georgia Institute of Technology. Address: 1315 Peachtree
Street, N.E., Atlanta, Georgia. Born: July 15, 1943.
KENNETH T. KING,** Director. Formerly, Chairman of the
Board of The Capitol Life Insurance Company, Providence
Washington Insurance Company, and Director of numerous
subsidiaries thereof in the U.S. Formerly, Chairman of the Board of
The Providence Capitol Companies in the United Kingdom and
Guernsey. Chairman of the Board of the Symbion Corporation (a
high technology company) until 1987. Address: 4080 North Circulo
Manzanillo, Tucson, Arizona. Born: November 16, 1925.
JOHN W. McINTYRE,# Director. Retired. Formerly, Vice
Chairman of the Board of Directors of The Citizens and Southern
Corporation and Chairman of the Board and Chief Executive Officer
of The Citizens and Southern Georgia Corp. and Citizens and
Southern National Bank. Director of Golden Poultry Co., Inc.
Trustee of The Global Health Sciences Fund and Gables Residential
Trust. Address: 7 Piedmont Center, Suite 100, Atlanta, Georgia.
Born: September 14, 1930.
GLEN A. PAYNE, Secretary. Senior Vice President, General
Counsel and Secretary of INVESCO Funds Group, Inc. and
INVESCO Trust Company. Formerly, employee of a U.S. regulatory
agency, Washington, D.C., (June 1973 through May 1989.) Born:
September 25, 1947.
<PAGE>
RONALD L. GROOMS, Treasurer. Senior Vice President and
Treasurer of INVESCO Funds Group, Inc. and INVESCO Trust
Company since January 1988. Born: October 1, 1946.
WILLIAM J. GALVIN, JR., Assistant Secretary. Senior Vice
President of INVESCO Funds Group, Inc. and Trust Officer of
INVESCO Trust Company. Formerly, Vice President of 440
Financial Group from June 1990 to August 1992; Assistant Vice
President of Putnam Companies from November 1986 to June 1990.
Born: August 21, 1956.
ALAN I. WATSON, Assistant Secretary. Vice President of
INVESCO Funds Group, Inc. and Trust Officer of INVESCO Trust
Company. Born: September 14, 1941.
JUDY P. WIESE, Assistant Treasurer. Vice President of
INVESCO Funds Group, Inc. and Trust Officer of INVESCO Trust
Company. Born: February 3, 1948.
The ninth paragraph of the section of the Funds' Statement of Additional
Information entitled "The Funds and Their Management - Director Compensation"
(the paragraph immediately following footnote 6) is hereby amended to read as
follows:
Messrs. Brady, Harris and Hesser , as "interested persons" of the
Company and other funds in the INVESCO Complex, receive compensation as
officers or employees of INVESCO or its affiliated companies, and do not
receive any director's fees or other compensation from the Company or
other funds in the INVESCO Complex for their services as directors.
Because of the possibility that A.D. Frazier, Jr. may become employed by a
company affiliated with INVESCO at some point in the future, he was deemed
to be an "interested person" of the Company and of the other funds in the
INVESCO Complex effective May 1, 1996. Until such time as Mr. Frazier
actually becomes employed by an INVESCO-affiliated company, however, he
will continue to receive the same director's fees and other compensation
as the Company's independent directors.
The date of this Supplement is May 1, 1996.
