G T INVESTMENT FUNDS INC
497, 1998-04-17
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                     GT GLOBAL INCOME FUNDS: ADVISOR CLASS
 
                  SUPPLEMENT TO PROSPECTUS DATED MARCH 1, 1998
                  SUPPLANTING SUPPLEMENT DATED MARCH 25, 1998
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THE  FOLLOWING  SUPPLEMENTS,  AS APPLICABLE,  THE  DISCUSSION  UNDER "INVESTMENT
OBJECTIVES AND POLICIES," "HOW TO INVEST," "MANAGEMENT" AND "OTHER  INFORMATION"
WITH  RESPECT TO G.T. INVESTMENT FUNDS, INC. (THE "COMPANY"), GLOBAL HIGH INCOME
PORTFOLIO (THE "PORTFOLIO") AND EACH FUND:
 
On January 30, 1998, Liechtenstein Global Trust, AG ("LGT"), the indirect parent
organization of  GT  Global, Inc.  and  Chancellor LGT  Asset  Management,  Inc.
("Chancellor  LGT"), entered  into an  agreement with  AMVESCAP PLC ("AMVESCAP")
pursuant to which AMVESCAP will  acquire LGT's Asset Management Division,  which
includes  Chancellor LGT (the "Purchase"). AMVESCAP  is a holding company formed
in 1997  by  the  merger  of  INVESCO  PLC and  A  I  M  Management  Group  Inc.
Consummation  of the purchase is subject to a number of contingencies, including
regulatory approvals. The  transaction would  constitute an  assignment of,  and
thereby  result  in  the  termination of,  the  Company's  investment management
agreement with Chancellor  LGT. Accordingly, the  Portfolio's Board of  Trustees
and  the  Company's  Board of  Directors  has approved,  subject  to shareholder
approval, new investment management and administration agreements between A I  M
Advisors,  Inc.  ("A  I M"),  a  wholly-owned  subsidiary of  AMVESCAP,  and the
Portfolio or  Company, as  applicable, and  sub-advisory and  sub-administration
agreements  between A  I M  and Chancellor  LGT, which  will become  a separate,
indirect wholly-owned subsidiary of  AMVESCAP. Under the new  agreements, A I  M
would  serve as  investment manager and  administrator and  Chancellor LGT would
serve as  investment  sub-adviser  and sub-administrator  of  the  Portfolio  or
Company,  as applicable. In addition  to shareholder approval, implementation of
the new investment advisory arrangements is contingent upon the consummation  of
the Purchase.
 
The  Board of Directors of the Company  has also approved the following matters,
subject to shareholder approval:
 
1.  Amendments to the fundamental investment restrictions of each Fund.
 
2.   The  reorganization of  the  Company from  a  Maryland corporation  into  a
    Delaware business trust.
 
In  addition, the Board  has approved new distribution  agreements for the Funds
pursuant  to  which  A  I  M  Distributors,  Inc.  ("A  I  M  Distributors"),  a
wholly-owned  subsidiary  of  A  I  M,  would  serve  as  each  Fund's principal
underwriter.
 
Implementation of  the  new distribution  arrangements  is contingent  upon  (1)
shareholder  approval of the  new investment advisory  arrangements; and (2) the
consummation of the Purchase.
 
A special meeting of shareholders of the Company will be held on May 20, 1998 to
consider and  vote on,  among  other proposals,  the  matters noted  above  that
require  shareholder approvals. If the matters  are approved by shareholders and
the Purchase consummated,  it is  anticipated that the  changes described  above
will become effective on or about June 1, 1998.
 
THE  FOLLOWING REVISES AND  SUPERSEDES THE DISCLOSURE  ABOUT MORTGAGE-BACKED AND
ASSET-BACKED SECURITIES UNDER "INVESTMENT OBJECTIVES AND POLICIES" WITH  RESPECT
TO  GT GLOBAL  GOVERNMENT INCOME FUND  ("GLOBAL GOVERNMENT INCOME  FUND") AND GT
GLOBAL STRATEGIC INCOME FUND ("STRATEGIC INCOME FUND"):
 
The Global Government Income  Fund and the Strategic  Income Fund may invest  in
mortgage-backed  and  asset-backed  securities  of  U.S.  and  foreign  issuers,
including  privately   issued  mortgage-backed   and  asset-backed   securities.
Mortgage-backed  securities represent direct  or indirect interests  in pools of
underlying mortgage loans that are secured by real property. Investors typically
receive payments  out  of  the  interest on  and  principal  of  the  underlying
mortgages.  Asset-backed securities  are similar  to mortgage-backed securities,
except that  the  underlying assets  are  other financial  assets  or  financial
receivables,  such  as motor  vehicle installment  sales contracts,  home equity
loans,
 
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leases of various  types of  real and  personal property,  and receivables  from
credit  cards. Any mortgage-backed and  asset-backed securities purchased by the
Global Government Income Fund and the  Strategic Income Fund will be subject  to
the  same rating requirements that apply  to its other investments. In addition,
privately issued mortgage-backed and asset-backed securities purchased by Global
Government Income Fund  will be  subject to the  limitation of  that Fund  which
allows  no more  than 35% of  its total assets  to be invested  in securities of
non-governmental issuers.
 
THE FOLLOWING SUPPLEMENTS THE DISCLOSURE ABOUT MORTGAGE-BACKED AND  ASSET-BACKED
SECURITIES  UNDER "RISK FACTORS"  WITH RESPECT TO  GLOBAL GOVERNMENT INCOME FUND
AND STRATEGIC INCOME FUND:
 
Foreign mortgage-backed securities markets  are substantially smaller than  U.S.
markets,  but  have been  established in  several countries,  including Germany,
Denmark, Sweden, Canada and Australia,  and may be developed elsewhere.  Foreign
mortgage-backed   securities  generally  are   structured  similar  to  domestic
mortgage-backed securities,  and  they normally  present  substantially  similar
investment  risks as  well as the  other risks normally  associated with foreign
securities.
 
THE FOLLOWING  REVISES  AND  SUPERSEDES, AS  APPLICABLE,  THE  DISCUSSION  UNDER
"MANAGEMENT"  WITH RESPECT TO  GLOBAL GOVERNMENT INCOME  FUND, THE PORTFOLIO AND
STRATEGIC INCOME FUND:
 
David B. Hughes  has been named  a Portfolio Manager  for the Global  Government
Income Fund. Mr. Hughes has been Head of Global Fixed Income, North America, for
Chancellor  LGT  since January  1998,  and was  a  Senior Portfolio  Manager for
global/international fixed income for Chancellor LGT from July 1995 to  December
1997.  Prior thereto, Mr.  Hughes was an Assistant  Vice President for Fiduciary
Trust Company International from  1994 to 1995, and  Assistant Treasurer at  the
Bankers  Trust  Company from  1991  to 1994.  Cheng-Hock  Lau remains  the other
Portfolio Manager for the Global Government Income Fund.
 
Craig Munro has been named a Portfolio Manager for the Portfolio. Mr. Munro  has
been  Head of  Emerging Market Debt  for Chancellor  LGT since April  1998 and a
Portfolio Manager for Chancellor LGT since August 1997. Prior thereto, Mr. Munro
was a Vice President, Senior Analyst in the Emerging Markets Group of the Global
Fixed Income Division  of Merrill  Lynch Asset  Management from  1993 to  August
1997. Mr. Lau remains the other Portfolio Manager for the Portfolio.
 
Mr.  Hughes  and  Mr. Munro  have  also  been named  Portfolio  Managers  of the
Strategic Income Fund. Mr. Lau remains the other Portfolio Manager for the Fund.
 
On October 31, 1996, Chancellor Capital Management, Inc. ("Chancellor  Capital")
merged  with LGT  Asset Management, Inc.,  and the resulting  entity was renamed
Chancellor LGT  Asset  Management, Inc.  Mr.  Hughes  was an  employee  only  of
Chancellor Capital prior to October 31, 1996.
 
INCSX804M                                                         April 17, 1998


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