INVESCO ADVISOR FUNDS, INC.
Supplement dated June 3, 1997
To Prospectus dated May 1, 1997
At their meeting held May 16, 1997, the Board of Directors of INVESCO
Advisor Funds, Inc. ("Company") approved recommending the following proposals
for approval by shareholders at a meeting scheduled to be held July 9, 1997
("Meeting"):
1. For INVESCO Advisor International Value Portfolio ("Portfolio"), a new
Subadvisory Agreement with INVESCO Global Asset Management Limited
("IGAM") containing substantially the same terms and fee provisions as the
Portfolio's current subadvisory agreement with INVESCO Capital Management,
Inc. ("ICM"). Pursuant to a structural reorganization, the portfolio
manager of this Portfolio, W. Lindsay Davidson, and his assisting staff
are being transferred from ICM to IGAM. Thus, retention of IGAM as
sub-adviser would provide the Portfolio with continuity in investment
management. Both ICM and IGAM are subsidiaries of AMVESCAP, PLC, an
international financial management holding company. IGAM, located at Cedar
House, 41 Cedar Avenue, Hamilton, HM12 Bermuda, was incorporated in
Bermuda on May 2, 1995 to provide global economic analysis and global
asset allocation services for certain AMVESCAP, PLC subsidiaries.
2. For all portfolios ("Portfolios") of the Company, changes to two
investment restrictions regarding transactions in options and futures. The
proposed changes, if approved by shareholders, would provide more
flexibility to all Portfolios to engage in transactions in options and
futures for hedging and asset allocation purposes. Additionally, INVESCO
Advisor Equity Portfolio, which may not currently engage in options
transactions, would be permitted to do so. Also, all Portfolios would be
permitted to engage in interest rate futures transactions, which are
currently permitted only for INVESCO Advisor Income Portfolio, INVESCO
Advisor Flex Portfolio and INVESCO Advisor MultiFlex Portfolio. The
Portfolios' options and futures transactions would be subject to limits
applicable under certain rules and regulatory policies, primarily those of
the Commodity Futures Trading Commission, but would not be subject to
additional limits by the amended investment restrictions. The Portfolios
would not engage in these transactions for speculative purposes.
The above changes will not become effective with respect to an affected
Portfolio unless approved by the lesser of (a) holders of 67% or more of the
voting shares of the Portfolio present in person or by proxy at the Meeting, if
holders of more than 50% of the outstanding voting shares of the Portfolio are
present in person or by proxy, or (b) holders of more than 50% of the
outstanding voting shares of the Portfolio.
<PAGE>
INVESCO ADVISOR FUNDS, INC.
Supplement dated June 3, 1997
To Statement of Additional Information dated May 1, 1997
At their meeting held May 16, 1997, the Board of Directors of INVESCO
Advisor Funds, Inc. ("Company") approved recommending the following proposals
for approval by shareholders at a meeting scheduled to be held July 9, 1997
("Meeting"):
1. For INVESCO Advisor International Value Portfolio ("Portfolio"), a
new Subadvisory Agreement with INVESCO Global Asset Management Limited
("IGAM") containing substantially the same terms and fee provisions as
the Portfolio's current subadvisory agreement with INVESCO Capital Manage-
ment, Inc. ("ICM"). Pursuant to a structural reorganization, the portfolio
manager of this Portfolio, W. Lindsay Davidson, and his assisting staff
are being transferred from ICM to IGAM. Thus, retention of IGAM as sub-
adviser would provide the Portfolio with continuity in investment
management. Both ICM and IGAM are subsidiaries of AMVESCAP, PLC, an
international financial management holding company. IGAM, located at
Cedar House, 41 Cedar Avenue, Hamilton, HM12 Bermuda, was incorporated in
Bermuda on May 2, 1995 to provide global economic analysis and global
asset allocation services for certain AMVESCAP, PLC subsidiaries.
2. For all portfolios ("Portfolios") of the Company, changes to two
investment restrictions regarding transactions in options and futures. The
proposed changes, if approved by shareholders, would provide more
flexibility to all Portfolios to engage in transactions in options and
futures for hedging and asset allocation purposes. Additionally, INVESCO
Advisor Equity Portfolio, which may not currently engage in options
transactions, would be permitted to do so. Also, all Portfolios would be
permitted to engage in interest rate futures transactions, which are
currently permitted only for INVESCO Advisor Income Portfolio, INVESCO
Advisor Flex Portfolio and INVESCO Advisor MultiFlex Portfolio. The
Portfolios' options and futures transactions would be subject to limits
applicable under certain rules and regulatory policies, primarily those of
the Commodity Futures Trading Commission, but would not be subject to
additional limits by the amended investment restrictions. The Portfolios
would not engage in these transactions for speculative purposes.
The above changes will not become effective with respect to an affected
Portfolio unless approved by the lesser of (a) holders of 67% or more of the
voting shares of the Portfolio present in person or by proxy at the Meeting, if
holders of more than 50% of the outstanding voting shares of the Portfolio are
present in person or by proxy, or (b) holders of more than 50% of the
outstanding voting shares of the Portfolio.
