GT GLOBAL VARIABLE INVESTMENT SERIES, 497, 1999-06-22

GT GLOBAL VARIABLE INVESTMENT SERIES
497, 1999-06-22

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<PAGE>

GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT SERIES
GT GLOBAL MONEY MARKET FUND
GT GLOBAL VARIABLE AMERICA FUND
GT GLOBAL VARIABLE EUROPE FUND
GT GLOBAL VARIABLE INTERNATIONAL FUND
GT GLOBAL VARIABLE NEW PACIFIC FUND

GT GLOBAL VARIABLE INVESTMENT TRUST
GT GLOBAL VARIABLE EMERGING MARKETS FUND
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
GT GLOBAL VARIABLE GROWTH & INCOME FUND
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
GT GLOBAL VARIABLE LATIN AMERICA FUND
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND

Supplement dated June 22, 1999
to the Prospectus dated May 3, 1999,
as Revised June 22, 1999

The Boards of Trustees of GT Global Variable Investment Series and GT Global
Variable Investment Trust (collectively, the GT Global Variable Investment
Funds) unanimously approved, on June 15, 1999, an Agreement and Plan of
Reorganization ("Plan") pursuant to which each GT Global Variable Investment
Fund, would transfer substantially all of its assets to AIM Variable
Insurance Funds, Inc. as follows:

<TABLE>
<CAPTION>
GT Global Variable Investment Funds AIM Variable Insurance Funds, Inc.
----------------------------------- ----------------------------------
<S> <C>
GT Global Variable Growth & Income Fund AIM V.I. Global Growth and Income Fund

GT Global Variable America Fund AIM V.I. Capital Appreciation Fund

GT Global Variable International Fund
GT Global Variable Europe Fund
GT Global Variable Natural Resources Fund
GT Global Variable Infrastructure Fund AIM V.I. International Equity Fund
GT Global Variable New Pacific Fund
GT Global Variable Latin America Fund
GT Global Variable Emerging Markets
Fund

GT Global Variable Telecommunications AIM V.I. Telecommunications Fund
Fund

GT Global Variable Strategic Income Fund AIM V.I. Diversified Income Fund
GT Global Variable Global Government
Income Fund

GT Global Variable U.S. Government AIM V.I. Government Securities Fund
Income Fund

GT Global Money Market Fund AIM V.I. Money Market Fund
</TABLE>

As a result of the transaction, shareholders of each series of the GT Global
Variable Investment Funds would receive shares of the corresponding series of
the AIM Variable Insurance Funds, Inc. in exchange for their shares of the GT
Global Variable Investment Funds, and the GT Global Variable Investment Funds
would cease operations.

The Plan requires the approval of each series of the GT Global Variable
Investment Funds' shareholders and will be submitted to the shareholders for
their consideration at a meeting to be held in August, 1999. If the Plan is
approved by shareholders of the GT Global Variable Investment Funds, and
certain conditions required by the Plan are satisfied, the transaction is
expected to become effective before mid-October, 1999.
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

- --------------------------------------------------------------------------------

GT GLOBAL VARIABLE NEW PACIFIC FUND
GT GLOBAL VARIABLE EUROPE FUND
GT GLOBAL VARIABLE INTERNATIONAL FUND
GT GLOBAL VARIABLE AMERICA FUND
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
GT GLOBAL VARIABLE LATIN AMERICA FUND
GT GLOBAL VARIABLE EMERGING MARKETS FUND
GT GLOBAL VARIABLE GROWTH & INCOME FUND
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
GT GLOBAL MONEY MARKET FUND

PROSPECTUS
MAY 3, 1999
AS REVISED JUNE 22, 1999
- --------------------------------------------------------------------------------

Fund shares are available as a pooled
funding vehicle for variable annuity
contracts offered by participating
insurance companies. This prospectus
should be accompanied by the
prospectus for such contracts. These
prospectuses contain important
information. Please read them before
investing and keep them for future
reference.

As with all other mutual fund
securities, the Securities and
Exchange Commission has not approved
or disapproved these securities or
determined whether the information in
this prospectus is adequate or
accurate. Anyone who tells you
otherwise is committing a crime.

An investment in GT Global Money
Market Fund is not insured or
guaranteed by the Federal Deposit
Insurance Corporation or any other
government agency. Although GT Global
Money Market Fund seeks to preserve
the value of your investment at $1.00
per share, it is possible to lose
money by investing in GT Global Money
Market Fund.

Prospectus Page 1
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

[LOGO]

Invest with
Discipline-Registered Trademark-

TABLE OF CONTENTS
- ------------------------------------------------------------

<TABLE>
<CAPTION>
Page
-----------
<S> <C>
INVESTMENT OBJECTIVES AND STRATEGIES, PRINCIPAL RISKS OF INVESTING IN THE FUNDS,
AND PERFORMANCE INFORMATION......................................................... 3
New Pacific Fund................................................................ 3
Europe Fund..................................................................... 5
International Fund.............................................................. 7
America Fund.................................................................... 9
Infrastructure Fund............................................................. 11
Natural Resources Fund.......................................................... 13
Telecommunications Fund......................................................... 15
Latin America Fund.............................................................. 17
Emerging Markets Fund........................................................... 20
Growth & Income Fund............................................................ 22
Strategic Income Fund........................................................... 24
Global Government Income Fund................................................... 27
U.S. Government Income Fund..................................................... 30
Money Market Fund............................................................... 32
FUND MANAGEMENT..................................................................... 34
The Advisor and Sub-Advisors.................................................... 34
Advisor Compensation............................................................ 34
Sub-Advisor Compensation........................................................ 34
Portfolio Managers.............................................................. 35
FINANCIAL HIGHLIGHTS................................................................ 40
HOW TO INVEST....................................................................... 54
PRICING OF SHARES................................................................... 54
TAXES............................................................................... 55
OBTAINING ADDITIONAL INFORMATION.................................................... 56
</TABLE>

The AIM Family of Funds, The AIM Family of Funds and Design (i.e., the AIM
logo), AIM and Design, AIM, AIM LINK, AIM Institutional Funds, aimfunds.com, La
Familia AIM de Fondos, La Familia AIM de Fondos and Design and Invest with
Discipline are registered service marks and AIM Bank Connection, AIM Funds, AIM
Funds and Design and AIM Investor are service marks of A I M Management Group
Inc.

Prospectus Page 2
<PAGE>
INVESTMENT OBJECTIVES AND
STRATEGIES, PRINCIPAL RISKS OF
INVESTING IN THE FUNDS, AND
PERFORMANCE INFORMATION

- --------------------------------------------------------------------------------

NEW PACIFIC FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is long-term growth of capital.

The fund seeks to achieve its objective by investing, normally, at least 65% of
its total assets in the securities of companies domiciled in twelve countries,
other than Japan, located in the Pacific region, including developing countries,
ie., those that are in the initial stages of their industrial cycles. These
countries are designated as the fund's primary investment area, and the list of
countries may be revised with the approval of the fund's Board of Trustees. The
fund considers a company to be domiciled in a particular country if it (1) is
organized under the laws of a particular country and has a principal office in a
particular country; or (2) derives 50% or more of its total revenues from
business in that country, provided that, in the view of the portfolio managers,
the value of the issuers' securities tend to reflect such country's development
to a greater extent than developments elsewhere. The fund will normally invest
in the securities of companies located in at least three different countries.

The fund may invest up to 35% of its total assets in equity securities of
issuers domiciled outside of its primary investment area, including developing
countries. The fund may also invest up to 35% of its total assets in U.S. and
foreign investment-grade debt securities, or securities deemed by the portfolio
managers to be of comparable quality. The fund may invest in securities of
issuers located in developing countries, i.e., those that are in the initial
stages of their industrial cycle.

In selecting investments, the fund's portfolio managers seek to identify those
countries and industries where political and economic factors, including
currency movements, are likely to produce above-average growth rates. The fund's
portfolio managers then balance the potential benefits with the risks of
investing in those countries and industries. The portfolio managers further
allocate investments among fixed-income securities of particular issuers on the
basis of their views as to the best values then available in the marketplace.
The portfolio managers consider whether to sell a particular security when any
of those factors materially changes.

The value of the fund's shares is particularly vulnerable to factors affecting
Pacific region countries, such as substantial economic or regulatory changes.
Because the fund focuses its investments in Pacific region countries, the value
of your shares may rise and fall more than the value of shares of a fund that
invests more broadly.

The prices of foreign securities may be further affected by other factors
including:

CURRENCY EXCHANGE RATES -- The dollar value of the fund's foreign investments
will be affected by changes in the exchange rates between the dollar and the
currencies in which those investments are traded.

POLITICAL AND ECONOMIC CONDITIONS -- The value of the fund's foreign investments
may be adversely affected by political and social instability in their home
countries and by changes in economic or taxation policies in those countries.

Prospectus Page 3
<PAGE>
REGULATIONS -- Foreign companies generally are subject to less stringent
regulations, including financial and accounting controls, than are U.S.
companies. As a result, there generally is less publicly available information
about foreign companies than about U.S. companies.

MARKETS -- The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid and
more volatile than U.S. securities.

These factors 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 have, in the past, experienced
high rates of inflation or sharply devaluated their currencies against the U.S.
dollar, thereby causing the value of investments located in those countries to
decline. Transaction costs are often higher in developing countries and there
may be delays in settlement procedures.

The value of your shares could be adversely affected if the computer systems
used by the fund's investment advisor and other service providers are unable to
distinguish the year 2000 from the year 1900.

The fund's investment advisor and independent technology consultants are working
to avoid year 2000-related problems in its systems and to obtain assurances that
other service providers are taking similar steps. Year 2000 problems may also
affect issuers in whose securities the fund invests.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

PERFORMANCE INFORMATION
The bar chart and table shown below provide an indication of the risks of
investing in the fund. The fund is offered exclusively for investment in
separate accounts that fund certain variable annuity contracts offered by
certain life insurance companies. The information below does not reflect charges
and fees associated with those separate accounts. Those charges and fees will
reduce returns. The fund's past performance is not necessarily an indication of
its future performance.

ANNUAL TOTAL RETURNS

The following bar chart shows changes in the performance of the fund's shares
from year to year. The bar chart does not reflect charges or fees associated
with investment in the fund through separate accounts. If it did, the total
annual returns would be lower.

NEW PACIFIC FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 18.00% (quarter ended 12/31, 1998) and the lowest quarterly return was
- -30.58% (quarter ended 12/31, 1997).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE
1 YEAR 5 YEARS OF FUND*
--------- --------- ----------
<S> <C> <C> <C>
New Pacific Fund............ (14.54)% (10.46)% (4.32)%
MSCI [Combined] Pacific Free
ex Japan Index**.......... (8.40)% (7.73)% 2.78%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of MSCI [Combined] Pacific
Free ex Japan Index since February 10, 1993, the fund's date of inception,
and February 1, 1993, respectively.

** The Morgan Stanley Capital International [Combined] Pacific ex Japan Index
measures the performance of 5 developed and emerging markets in the Pacific
rim, excluding Japan. The index excludes shares that are not readily
purchased by non-local investors.

Prospectus Page 4
<PAGE>
EUROPE FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is long-term growth of capital.

The fund seeks to achieve its objective by investing, normally, at least 65% of
its total assets in equity securities of companies domiciled in eighteen
countries located in Europe. These countries are designated as the fund's
primary investment area and the list of countries may be revised with the
approval of the fund's Board of Trustees. The fund normally considers a company
to be domiciled in a particular country if it (1) is organized under the laws of
a particular country and has a principal office in a particular country; or (2)
derives 50% or more of its total revenues from business in that country,
provided that, in the view of the portfolio manager, the value of the issuer's
securities tend to reflect such country's development to a greater extent than
developments elsewhere.

The fund may invest up to 35% of its total assets in equity securities of
issuers domiciled outside of its primary investment area or in U.S. and foreign
investment-grade debt securities, or securities deemed by the fund's portfolio
managers to be of comparable quality. The fund may invest in securities of
issuers located in developing countries, i.e., those that are in the initial
stages of their industrial cycle.

In selecting investments, the portfolio manager seeks to identify those
countries and industries where political and economic factors, including
currency movements, are likely to produce above-average growth rates. The
portfolio managers then balance the potential benefits with the risks of
investing in those countries and industries. The portfolio managers further
allocate investments among fixed-income securities of particular issuers on the
basis of their views as to the best values then available in the marketplace.
The portfolio managers consider whether to sell a particular security when any
of those factors materially changes.

In anticipation of or in response to adverse market conditions or for cash
management purposes, the fund may hold all or a portion of its assets in cash
(U.S. dollars, foreign currencies or multinational currency units), money market
instruments, or high-quality debt securities. In anticipation of or in response
to adverse market conditions, the fund may also invest up to 100% of its total
assets in the securities of U.S. issuers and denominated in U.S. dollars. As a
result, the fund may not achieve its investment objective.

Because fund focuses its investments in European countries, the value of your
shares may rise and fall more than the value of shares of a fund that invests in
a broader geographic region.

The prices of securities of foreign issuers may be further affected by other
factors, including:

POLITICAL AND ECONOMIC CONDITIONS -- The value of the fund's investments may be
adversely affected by political and social instability in their home countries
and by changes in economic or taxation policies in those countries.

REGULATIONS -- Foreign companies generally are subject to less stringent
regulations, including financial and accounting controls, than are U.S.
companies. As a result, there generally is less publicly available information
about foreign companies than about U.S. companies.

MARKETS -- The securities markets of other foreign countries are smaller than
U.S. securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

These factors may affect the prices of securities issued by foreign countries
located in developing countries more than those in countries with mature
economies. For example, many developing countries have, in the past, experienced
high rates of inflation or sharply devaluated their currencies against the U.S.
dollar, thereby causing the value of investments located in those countries to
decline. Transaction costs are often higher in developing countries and there
may be delays in settlement procedures.

Prospectus Page 5
<PAGE>
The value of your shares could be adversely affected if the computer systems
used by the fund's investment advisor and other service providers are unable to
distinguish the year 2000 from the year 1900.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

EUROPE FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 22.51% (quarter ended 3/31, 1998) and the lowest quarterly return was
- -21.24% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ------------
<S> <C> <C> <C>
Europe Fund.............. 15.48% 13.65% 16.21%
MSCI Europe Index**...... 28.53% 19.10% 21.03%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of MSCI Europe Index since
February 10, 1993, the fund's date of inception, and February 1, 1993,
respectively.

** The Morgan Stanley Capital International Europe Index is an unmanaged index
that is designed to represent the performance of developed stock markets in
Europe.

Prospectus Page 6
<PAGE>
INTERNATIONAL FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is long-term growth of capital.

The fund seeks to achieve its objective by investing, normally, at least 65% of
its total assets in the securities of companies domiciled in the following
countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile,
Colombia, Denmark, Finland, France, Germany, Greece, Hong Kong, India,
Indonesia, Ireland, Israel, Italy, Japan, Luxembourg, Malaysia, Mexico, the
Netherlands, New Zealand, Norway, Pakistan, Peru, the Philippines, Portugal,
Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey,
the United Kingdom, and Venezuela. These countries are designated as the fund's
primary investment area and the list of countries may be revised with the
approval of the fund's Board of Trustees. The fund considers a company to be
domiciled in a particular country if it (1) is organized under the laws of a
particular country and has a principal office in a particular country; or (2)
derives 50% or more of its total revenues from business in that country,
provided that, in the view of the fund's portfolio managers, the value of the
issuers' securities tend to reflect such country's development to a greater
extent than developments elsewhere.

The fund may invest up to 35% of its total assets in equity securities of
companies domiciled outside its primary investment area, including developing
countries. The fund may also invest up to 35% of its total assets in U.S. and
foreign investment grade debt securities, or securities deemed by the portfolio
managers to be of comparable quality. The fund may invest in securities of
issuers located in developing countries, i.e., those that are in the initial
stages of their industrial cycle.

In selecting investments, the portfolio managers seek to identify those
countries and industries where political and economic factors, including
currency movements, are likely to produce above-average growth rates. The
portfolio managers balance the potential benefits with the risks of investing in
those countries and industries. The portfolio managers further allocate
investments among fixed-income securities of particular issuers on the basis of
their views as to the best values then available in the marketplace. The
portfolio managers consider whether to sell a particular security when any of
those factors materially changes.

In anticipation of or in response to adverse market conditions or for cash
management purposes, the fund may hold cash or invest all or a portion of its
assets in cash (U.S. dollars, foreign currencies or multinational currency
units), money market instruments, or high-quality debt securities. As a result,
the fund may not achieve its investment objective.

The fund may engage in active and frequent trading of portfolio securities to
achieve its investment objective. If it does trade in this way, it may incur
increased transaction costs and brokerage commissions, both of which can lower
the actual return on your investment. Active trading may also increase
short-term capital gains and losses, which may affect the taxes you have to pay.

In addition, the prices of securities of foreign issuers may be further affected
by other factors including:

MARKETS -- The securities markets of some foreign countries are smaller and less
developed than U.S. securities markets. As a result, many foreign securities may
be less liquid and more volatile than U.S. securities.

These factors may affect the prices of securities issued by foreign companies
located in developing countries more than those in countries with mature

Prospectus Page 7
<PAGE>
economies. For example, many developing countries have, in the past, experienced
high rates of inflation or sharply devaluated their currencies against the U.S.
dollar, thereby causing the value of investments located in those countries to
decline. Transaction costs are often higher in developing countries and there
may be delays in settlement procedures.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

INTERNATIONAL FUND

[GRAPH]

During the 4-year period shown in the bar chart, the highest quarterly return
was 15.13% (quarter ended 12/31, 1998) and the lowest quarterly return was
- -21.95% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR FUND*
------ ------------
<S> <C> <C>
International Fund........................................ (.69)% 1.60%
MSCI EAFE Index**......................................... 20.00% 8.22%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the MSCI EAFE Index since
July 5, 1994, the fund's date of inception, and July 1, 1994, respectively.

** The Morgan Stanley Capital International Europe, Australasia, and the Far
East (EAFE)-Registered Trademark- Index is an unmanaged index that is
designed to represent the performance of 20 major world stock exchanges.

Prospectus Page 8
<PAGE>
AMERICA FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is long-term growth of capital.

The fund seeks to meet this objective by investing, normally, at least 65% of
its total assets in the equity securities of U.S. issuers that have market
capitalizations within the range of market capitalizations of companies included
in the Russell Midcap-TM- Index.

The fund may invest up to 35% of its total assets in equity securities of other
U.S. issuers or in investment-grade debt securities of U.S. issuers. The Fund
may also invest up to 25% of its total assets in foreign securities.

In selecting investments, the portfolio managers seek to identify those
companies that are, in the portfolio managers' view, undervalued relative to
current or projected earnings, or the current market value of assets owned by
the company. The primary emphasis of the portfolio managers' search for
undervalued equity securities is in four categories: (1) out-of-favor cyclical
growth companies; (2) established growth companies that are undervalued compared
to historical relative valuation parameters; (3) companies where there is early
but tangible evidence of improving prospects which are not yet reflected in the
value of the companies' equity securities; and (4) companies whose equity
securities are selling at prices that do not yet reflect the current market
value of their assets. The portfolio managers consider whether to sell a
particular security when any of these factors materially change.

The fund may engage in active and frequent trading of portfolio securities to
achieve its investment objective. If the fund does trade in this way, it may
incur increased transaction costs and brokerage commissions, both of which can
lower the actual return on your investment. Active trading may also increase
short-term capital gains and losses, which may affect the taxes you have to pay.

Foreign securities have additional risks, including exchange rate changes,
political and economic upheaval, the potential lack of information about these
companies, relatively low market liquidity, and the potential lack of strict
financial and accounting controls and standards.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

Prospectus Page 9
<PAGE>
AMERICA FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 28.84% (quarter ended 12/31, 1998) and the lowest quarterly return was
- -25.59% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ------------
<S> <C> <C> <C>
America Fund............. 8.09% 17.02% 16.96%
Russell Midcap-TM-
Index**................ 10.09% 17.35% 16.70%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of Russell Midcap-TM- Index
since February 10, 1993, the fund's date of inception, and February 1, 1993,
respectively.

** The Russell Midcap-TM- Index measures the performance of the smallest 800
companies in the Russell 1000-Registered Trademark- Index. These companies
are considered representative of medium-sized companies.

Prospectus Page 10
<PAGE>
INFRASTRUCTURE FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is long-term capital growth.

The fund seeks to meet this objective by normally investing at least 65% of its
total assets in equity securities of domestic and foreign infrastructure
companies. The fund considers an "infrastructure company" to be one that: (1)
derives at least 50% of its revenues or earnings from infrastructure activities;
or (2) devotes at least 50% of its assets to such activities, based on its most
recent fiscal year. Such companies include those that design, develop, or
provide products and services significant to a country's infrastructure (such as
transportation systems, communications equipment and services, nuclear power and
other energy sources, water supply, and oil, gas and coal exploration). The fund
may invest up to 35% of its assets in debt securities issued by infrastructure
companies, or in equity and debt securities of other companies the portfolio
manager believes will benefit from developments in the infrastructure industry.

The fund will normally invest in the securities of companies located in at least
three different countries, including the United States, and may invest a
significant portion of its assets in the securities of U.S. issuers. However,
the fund will invest no more than 50% of its total assets in the securities of
issuers in any one country, other than the U.S. The fund may invest
substantially in securities denominated in one or more currencies. The portfolio
may invest in companies located in developing countries, i.e., those that are in
the initial stages of their industrial cycles. The fund may also invest up to
20% of its total assets in lower-quality debt securities, i.e., "junk bonds."

The portfolio manager allocates the fund's assets among securities of countries
and in currency denominations that are expected to provide the best
opportunities for meeting the fund's investment objective. In analyzing specific
companies for possible investment, the portfolio manager ordinarily looks for
several of the following characteristics: above-average per share earnings
growth; high return on invested capital; a healthy balance sheet; sound
financial and accounting policies and overall financial strength; strong
competitive advantages; effective research and product development and
marketing; development of new technologies; efficient service; pricing
flexibility; strong management; and general operating characteristics that will
enable the companies to compete successfully in their respective markets. The
portfolio manager considers whether to sell a particular security when any of
those factors materially changes.

The value of the fund's shares is particularly vulnerable to factors affecting
infrastructure industry, such as substantial political, environmental, and other
governmental regulation. Such regulation may, among other things, increase
compliance costs and proscribe the development of new technologies. In addition,
increases in fuel, energy, and other prices have historically limited the growth
potential of infrastructure companies.

Because the fund focuses its investments in the infrastructure industries, the
value of your shares may rise and fall more than the value of shares of a fund
that invests more broadly.

The prices of foreign securities may be further affected by other factors,
including:

REGULATIONS -- Foreign companies generally are subject to less stringent
regulations, including financial and accounting controls, than are U.S.
companies. As a result, there generally is less

Prospectus Page 11
<PAGE>
publicly available information about foreign companies than about U.S.
companies.

MARKETS -- The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid and
their prices may be more volatile than U.S. securities.

These factors 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 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.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

[GRAPH]

During the 3-year period shown in the bar chart, the highest quarterly return
was 14.34% (quarter ended 12/31, 1998) and the lowest quarterly return was
- -15.82% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR FUND*
--------- ------------
<S> <C> <C>
Infrastructure Fund................ 6.34% 11.69%
MSCI AC World Index**.............. 21.72% 17.95%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the MSCI AC World Index
since January 31, 1995, the fund's date of inception.

** The Morgan Stanley Capital International All Country World Index measures
the performance of securities listed on the major world stock exchanges of
47 markets, including both developed and emerging markets.

Prospectus Page 12
<PAGE>
NATURAL RESOURCES FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is long-term capital growth.

The fund seeks to meet this objective by normally investing at least 65% of its
total assets in equity securities of domestic and foreign natural resources
companies. The fund considers a "natural resources" company to be one that (1)
derives at least 50% of its revenues or earnings from natural resource
activities, or (2) devotes at least 50% of its assets to such activities, based
on its most recent fiscal year. Such companies include those that own, explore,
or develop natural resources (such as oil, metals, forest products, and
chemicals) and other basic commodities (such as foodstuffs) or supply goods and
services to such companies. The fund may invest up to 35% of its assets in debt
securities issued by natural resources companies, or in equity and debt
securities of other companies the portfolio manager believes will benefit from
developments in the natural resources industries.

The fund will normally invest in the securities of issuers located in at least
three different countries, including the United States. However, the fund will
invest no more than 50% of its total assets in the securities of issuers in any
one country, other than the U.S. The fund may invest in companies located in
developing countries, i.e., those that are in the initial stages of their
industrial cycles. The fund may invest substantially in securities denominated
in one or more currencies. The fund may invest up to 20% of its total assets in
lower-quality debt securities, i.e., "junk bonds."

The portfolio manager allocates the fund's assets among securities of companies
in these natural resource industries and commodity groups that are expected to
provide the best opportunities during periods of rising inflation. In analyzing
specific companies for possible investment, the portfolio manager ordinarily
looks for several of the following characteristics: above-average per share
earnings growth; high return on invested capital; a healthy balance sheet; sound
financial and accounting policies and overall financial strength; strong
competitive advantages; effective research and product development and
marketing; development of new technologies; efficient service; pricing
flexibility; strong management; and general operating characteristics that will
enable the companies to compete successfully in their respective markets. The
portfolio manager considers whether to sell a particular security when any of
those factors materially changes.
In anticipation of or in response to adverse market conditions or for cash
management purposes, the fund may hold all or a portion of its assets in cash
(U.S. dollars, foreign currencies or multinational currency units), money market
instruments, or high quality debt securities. As a result, the fund may not
achieve its investment objective.

The value of the fund's shares is particularly vulnerable to factors affecting
natural resources industry, such as increasing regulation of the environment by
both U.S and foreign governments. Increased environmental regulations may, among
other things, increase compliance costs and affect business opportunities for
the companies in which the fund invests. The value is also affected by changing
commodity prices, which can be highly volatile and are subject to the risks of
oversupply and reduced demand.

Because the fund focuses its investments in the natural resources industries,
the value of your shares may rise and fall more than the value of shares of a
fund that invests more broadly.

The prices of foreign securities may be further affected by other factors,
including:

POLITICAL AND ECONOMIC CONDITIONS -- The value of the fund's foreign investments
may be adversely

Prospectus Page 13
<PAGE>
affected by political and social instability in their home countries and by
changes in economic or taxation policies in those countries.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

NATURAL RESOURCES FUND

[GRAPH]

During the 3-year period shown in the bar chart, the highest quarterly return
was 30.72% (quarter ended 9/30, 1997) and the lowest quarterly return was
- -20.75% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR FUND*
---------- --------
<S> <C> <C>
Natural Resources Fund... (33.01)% 5.94%
MSCI AC World Index**.... 21.72% 17.95%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the MSCI AC World Index
since January 31, 1995, the fund's date of inception.

Prospectus Page 14
<PAGE>
TELECOMMUNICATIONS FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is long-term growth of capital.

The fund seeks to meet this objective by investing at least 65% of its total
assets in equity securities of domestic and foreign telecommunications
companies. The fund considers a "telecommunications company" to be one that (1)
derives at least 50% of its revenues or earnings from telecommunications
activities, or (2) devotes at least 50% of its assets to such activities, based
on its most recent fiscal year. Such companies include those that develop or
provide communications services and equipment, computer and electronic
components and equipment, mobile communications, and broadcasting. The fund may
invest up to 35% of its assets in debt securities issued by telecommunications
companies, or in equity and debt securities of other companies the portfolio
managers believe will benefit from developments in the telecommunications
industries.

The fund will normally invest in the securities of companies located in at least
three different countries, including the United States. However, the fund will
invest no more than 40% of its total assets in the securities of issuers in any
one country, other than the U.S. The fund may invest substantially in securities
denominated in one or more currencies.

The fund may invest in companies located in developing countries, i.e., those
that are in their initial stages of their industrial cycles. The fund may also
invest up to 5% of its total assets in lower-quality debt securities, i.e.,
"junk bonds."

The portfolio managers allocate the fund's assets among securities of countries
and in currency denominations that are expected to provide the best
opportunities for meeting the fund's investment objective. In analyzing specific
companies for possible investment, the portfolio managers ordinarily look for
several of the following characteristics: above-average per share earnings
growth; high return on invested capital; a healthy balance sheet; sound
financial and accounting policies and overall financial strength; strong
competitive advantages; effective research and product development and
marketing; development of new technologies; efficient service; pricing
flexibility; strong management; and general operating characteristics that will
enable the companies to compete successfully in their respective markets. The
portfolio managers consider whether to sell a particular security when any of
those factors materially changes.

The value of the fund's shares is particularly vulnerable to factors affecting
the telecommunications industry, such as substantial governmental regulation.
Because the fund focuses its investments in the telecommunications industries,
the value of your shares may rise and fall more than the value of shares of a
fund that invests more broadly.

The prices of foreign securities may be further affected by other factors,
including:

Prospectus Page 15
<PAGE>
These factors 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 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.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

TELECOMMUNICATIONS FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 30.84% (quarter ended 12/31, 1998) and the lowest quarterly return was
- -23.31% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ------------
<S> <C> <C> <C>
Telecommunications
Fund................... 22.11% 17.21% 18.41%
MSCI AC World Index**.... 21.72% 14.48% 14.11%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the MSCI AC World Index
since October 18, 1993, the fund's date of inception, and October 31, 1993,
respectively.

Prospectus Page 16
<PAGE>
LATIN AMERICA FUND

INVESTMENT OBJECTIVES AND STRATEGIES
The fund's investment objective is capital appreciation.

The fund seeks to meet this objective by investing at least 65% of its total
assets in equity and debt securities of Latin American issuers. The fund
considers securities of "Latin American issuers" to include: (1) securities of
companies organized under the laws of, or having a principal office located in,
a Latin American country; (2) securities of companies that derive 50% or more of
their total revenues from business in Latin America, provided that, in the view
of the portfolio manager, the value of such issuers' securities reflect Latin
American developments to a greater extent than developments elsewhere; (3)
securities issued or guaranteed by the government of a country in Latin America,
its agencies or instrumentalities, or municipalities, or the central bank of
such country; (4) U.S. dollar denominated securities or securities denominated
in a Latin American currency issued by companies to finance operations in Latin
America; and (5) securities of Latin American issuers in the form of depositary
shares. The fund considers Latin America to include Mexico and the countries
within Central and South America and the Caribbean many of which are considered
developing countries, i.e., those that are in the initial stages of their
industrial cycles.

The fund will normally invest a majority of its assets in equity securities. The
fund may invest up to 35% of its total assets in a combination of equity and
debt securities of U.S. issuers. The fund may also invest up to 50% of its total
assets in debt securities, which may consist of lower-quality debt securities,
e.g., "junk bonds" and "Brady Bonds." Brady Bonds are debt restructurings that
provide for the exchange of cash and loans for newly-issued bonds. The fund
currently expects to invest primarily in securities issued by companies and
governments in Mexico, Chile, Brazil and Argentina. The fund may invest more
than 25% of its total assets in any of these four countries but expects to
invest no more than 60% of its total assets in any one country. The fund may
invest up to 35% of its total assets in a combination of equity and debt
securities of U.S. issuers.

In allocating investments among the various Latin American countries, the
portfolio manager looks principally at the stage of industrialization, potential
for productivity gains through economic deregulation, the impact of financial
liberalization, and monetary conditions and the political outlook in each
country. Further, the portfolio manager selects between debt and equity
investments based on additional economic criteria such as fundamental economic
strength, expected corporate profits, the condition of balance of payments,
changes in the terms of trade, and currency and interest rate trends. The
portfolio manager considers whether to sell a particular security when any of
those factors materially changes.

The fund is non-diversified. With respect to 50% of its assets, it is permitted
to invest more than 5% of its assets in the securities of any one issuer.

PRINCIPAL RISKS OF INVESTING IN THE FUND
There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. The prices of equity
securities change in response to many factors, including the historical and
prospective earnings of the issuer of the stock, the value of its assets,
general economic conditions, interest rates, investor perceptions, and market
liquidity. Debt securities are particularly vulnerable to credit risk and
interest rate fluctuations. When interest rates rise, bond prices fall; the
longer the bond's duration, the more sensitive it is to this risk.

Because fund focuses its investments in Latin America, the value of your shares
may rise and fall more than the value of shares of a fund that invests in a
broader geographic region.

The prices of foreign securities may be further affected by other factors,
including:

Prospectus Page 17
<PAGE>
REGULATIONS -- Foreign companies generally are subject to less stringent
regulations, including financial and accounting controls, than are U.S.
companies. As a result, there generally is less publicly available information
about foreign companies than about U.S. companies.

These factors may affect the price of securities issued by foreign companies
located in developing countries more than those in countries with mature
economies. For example, many developing countries 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.

Because it is non-diversified, the fund may invest in fewer issuers than if it
was a diversified fund. Thus, the value of the fund's shares may vary more
widely, and the fund to be subject to greater investment and credit risk, than
if it invested more broadly.

Compared to higher-quality debt securities, junk bonds involve greater risk of
default or prices due to changes in the credit quality of the issuer because
they are generally unsecured and may be subordinated to other creditor's claims.
The value of lower quality debt securities often fluctuates in response to
company, political, or economic developments and can decline significantly over
short periods of time or during periods of general or regional economic
difficulty. Under some political, diplomatic, social, or economic circumstances,
some Latin American countries that issue lower-quality debt securities may be
unable or unwilling to make principal or interest repayments as they come due.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

Prospectus Page 18
<PAGE>
ANNUAL TOTAL RETURNS

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 36.10% (quarter ended 9/30, 1994) and the lowest quarterly return was
- -33.28% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE
OF
1 YEAR 5 YEARS FUND*
--------- -------- ------
<S> <C> <C> <C>
Latin America Fund.......... (41.70)% (7.51)% (.04)%
MSCI Emerging Latin America
Index**................... (35.29)% (2.85)% 5.15%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the MSCI Emerging Latin
America Index since February 10, 1993, the fund's date of inception, and
February 1, 1993, respectively.

** The Morgan Stanley Capital International Emerging Latin America Index
measures the performance of securities listed on the exchanges of Argentina,
Brazil, Chile, Colombia, Mexico, Peru, and Venezuela.

Prospectus Page 19
<PAGE>
EMERGING MARKETS FUND

INVESTMENT OBJECTIVES AND STRATEGIES
The fund's investment objective is long-term growth of capital.

The fund seeks to meet this objective by investing at least 65% of its total
assets in equity securities of companies in emerging markets, which consist of
all countries determined by the portfolio managers to be developing or emerging
economies and markets, generally including every country in the world except the
United States, Canada, Japan, Australia, New Zealand, and most countries located
in Western Europe. Many of these countries are considered developing countries,
i.e., those that are in the initial stages of their industrial cycles. The fund
may also invest up to 35% of its assets in debt securities of government or
corporate issuers in emerging markets, in equity and debt securities of issuers
in developed countries, including the United States, and in cash and money
market instruments.

The fund normally invests a majority of its assets in equity securities. The
fund may invest up to 20% of its total assets in high-yield debt securities
rated below investment grade, i.e., "junk bonds." The fund ordinarily will be
invested in the securities of issuers in at least three different emerging
markets countries.

In selecting countries in which to invest, the portfolio managers look
principally for strongly developing economies and increasingly sophisticated
markets. Within these countries, the portfolio managers ordinarily look for
economic and political factors, including currency movements, that are likely to
produce above-average growth rates. In analyzing specific companies for possible
investment, the portfolio managers invest in those companies that are best
positioned and managed to take advantage of these economic and political
factors. In evaluating investments in companies in developed markets, the
portfolio managers consider, among other things, the business activities of the
company in emerging markets and the impact that developments in emerging markets
are likely to have on the company. The portfolio managers consider whether to
sell a particular security when any of those factors materially changes.

The fund may engage in active and frequent trading to achieve its investment
objective. If the fund does trade in this way, it may incur increased
transaction costs and brokerage commissions, both of which can lower the actual
return on your investment.

PRINCIPAL RISKS OF INVESTING IN THE FUND
There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. The prices of equity
securities change in response to many factors, including the historical and
prospective earnings of the issuer, the value of its assets, general economic
conditions, interest rates, investor perceptions, and market liquidity. Debt
securities are particularly vulnerable to credit risk and interest rate
fluctuations. When interest rates rise, bond prices fall; the longer the bond's
duration, the more sensitive it is to this risk.

The prices of foreign securities may be further affected by other factors,
including:

These factors may affect the price of common stocks issued by foreign companies
located in developing countries more than those in countries with mature
economies. For example, many developing countries 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.

Prospectus Page 20
<PAGE>
Sovereign debt securities of developing country governments are generally
lower-quality debt securities. Sovereign debt securities are subject to the
additional risk that, under some political, diplomatic, social, or economic
circumstances, some developing countries that issue lower quality debt
securities may be unable or unwilling to make principal or interest payments as
they come due.

Compared to higher-quality debt securities, junk bonds involve greater risk of
default or prices due to changes in the credit quality of the issuer because
they are generally unsecured and may be subordinated to other creditor's claims.
The value of junk bonds often fluctuates in response to company, political, or
economic developments and can decline significantly over short periods of time
or during periods of general or regional economic difficulty. During those
times, the bonds may be difficult to value or sell at a fair price. Credit
ratings on junk bonds do not necessarily reflect their actual market risk.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

EMERGING MARKETS FUND

[GRAPH]

During the 4-year period shown in the bar chart, the highest quarterly return
was 17.28% (quarter ended 3/31, 1996) and the lowest quarterly return was
- -27.32% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR FUND*
--------- ------------
<S> <C> <C>
Emerging Markets Fund.......... (36.90%) (8.83%)
MSCI Emerging Markets Free
Index**...................... (25.34%) (8.04%)
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the MSCI Emerging Markets
Free Index since July 5, 1994, the fund's date of inception, and July 1,
1994, respectively.

** The Morgan Stanley Capital International Emerging Markets Free Index
measures the performance of securities listed on the exchanges of 26
countries. The index excludes shares that are not readily purchased by non-
local investors.

Prospectus Page 21
<PAGE>
GROWTH & INCOME FUND

INVESTMENT OBJECTIVES AND STRATEGIES
The fund's investment objectives are long-term capital appreciation together
with current income.

The fund seeks to meet these objectives by investing at least 65% of its total
assets in a combination of blue-chip equity securities and high-quality
government bonds of U.S. and foreign issuers. "Blue chip" equity securities are
those which: (1) offered, during the issuer's most recent fiscal year, an above
average dividend yield relative to the latest reported dividend yield on the
Morgan Stanley Capital International World Index; and (2) are issued by a
company with total equity market capitalization of at least $1 billion.
High-quality government bonds are rated within one of the two highest ratings
categories of Moody's Investors Service, Inc. or Standard & Poor's, or are
deemed by the portfolio managers to be of comparable quality. The fund may
invest up to 35% of its total assets in other equity securities and government
and corporate debt securities that are investment grade, i.e., rated within one
of the four highest ratings categories by Moody's or S&P, or are deemed by the
portfolio managers to be of comparable quality. The fund may purchase debt
obligations issued or guaranteed by the U.S. or foreign governments, including
foreign states, provinces or municipalities, or their agencies, authorities, or
instrumentalities and debt obligations of supranational organizations, such as
the World Bank.

The fund will normally invest in securities of issuers in at least three
countries, including the United States. However, the fund may invest no more
than 40% of its assets in securities of issuers in any one country, other than
the U.S. The fund may invest up to 100% of its total assets in either equity or
debt securities in response to general economic changes and market conditions
around the world.

The portfolio managers allocate assets among securities of countries and in
currency denominations where opportunities for meeting the fund's investment
objective are expected to be the most attractive. The portfolio managers
consider fundamental economic strength, credit quality, and currency and
interest rate trends in emphasizing various country, geographic, and industry
sectors within the fund. Further, the portfolio managers select debt securities
of particular issuers based on additional economic and countries criteria such
as yield, maturity, issue classification, and quality characteristics. The
relative proportions of equity and debt securities held by the fund depend upon
the portfolio managers' assessment of global political and economic conditions
and the relative strengths and weaknesses of the world equity and debt markets.
Currency investments are based on economic factors (such as relative inflation,
interest rate levels and trends, growth rate forecasts, balance of payment
status, and economic policies) and on political and technical data. The
portfolio managers consider whether to sell a particular security when any of
those factors materially changes.

The fund is non-diversified. With respect to 50% of its assets, it is permitted
to invest more than 5% of its assets in the securities of any one issuer.

In anticipation of or in response to adverse market conditions or for cash
management purposes, the fund may hold or invest all or a portion of its assets
in cash (U.S. dollars, foreign currencies or multinational currency units),
money market instruments, or high-quality debt securities. As a result, the fund
may not achieve its investment objectives.

PRINCIPAL RISKS OF INVESTING IN THE FUND
There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. The prices of equity
securities change in response to many factors, including the historical and
prospective earnings of the issuer, the value of its assets, general economic
conditions, interest rates, investor perceptions, and market liquidity. Debt
securities are particularly vulnerable to credit risk and interest rate
fluctuations. When interest rates rise, bond prices fall; the longer a bond's
duration, the more sensitive it is to this risk.

The prices of foreign securities may be further affected by other factors
including:

REGULATIONS -- Foreign companies generally are subject to less stringent
regulations, including financial and accounting controls, than are U.S.

Prospectus Page 22
<PAGE>
companies. As a result, there generally is less publicly available information
about foreign companies than about U.S. companies.

Because it is non-diversified, the fund may invest in fewer issuers than if it
was a diversified fund. Thus the value of the fund's shares may vary more
widely, and the fund may be subject to greater investment and credit risk, than
if the fund invested more broadly.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

ANNUAL TOTAL RETURNS

GROWTH & INCOME FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 12.21% (quarter ended 12/31, 1998) and the lowest quarterly return was
- -7.64% (quarter ended 9/30, 1998).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ---------
<S> <C> <C> <C>
Growth & Income Fund...... 19.62% 12.65% 13.76%
MSCI AC World Index**..... 21.72% 14.48% 16.42%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the MSCI AC World Index
since February 10, 1993, the fund's date of inception, and February 1, 1993,
respectively.

Prospectus Page 23
<PAGE>
STRATEGIC INCOME FUND

INVESTMENT OBJECTIVES AND STRATEGIES
The fund's primary investment objective is high current income and its secondary
investment objective is capital appreciation.

The fund seeks to meet these objectives by investing primarily in debt
securities, including mortgage-backed and asset-backed securities, of issuers in
the United States and developed and developing countries, i.e., those that are
in the initial stages of their industrial cycles. The securities of issuers in
developing countries may consist substantially of "Brady Bonds" and other
sovereign debt securities issued by governments of such countries and traded in
the markets of developed countries or groups of developed countries without
regard to ratings. Brady Bonds are debt restructurings that provide for the
exchange of cash and loans for newly issued bonds.

The fund normally invests at least 35% of its total assets in U.S. and foreign
debt and other fixed-income securities that are either rated at least investment
grade by Moody's Investors Service, Inc. or Standard & Poor's (rated in the four
highest ratings categories by Moody's or S&P), or that the fund's portfolio
managers believe to be of comparable quality. The fund may invest up to 50% of
its assets in debt securities that are rated below investment grade by such
agencies or that the fund's portfolio managers believe to be of comparable
quality, i.e., "junk bonds." The fund may also invest up to 35% of its total
assets in equity securities. The fund may invest a significant portion of its
assets in the securities of U.S. issuers.

The portfolio managers allocate assets among securities of countries and in
currency denominations that are expected to provide the most attractive
opportunities for meeting the fund's investment objectives. The portfolio
managers consider fundamental economic strength, credit quality, and currency
and interest rate trends in emphasizing various country, geographic and industry
sectors within the fund. Further, the portfolio managers select particular
issuers based on additional economic criteria such as yield, maturity, issue
classification, and quality characteristics. Currency investments are based on
factors such as relative inflation, interest rate levels and trends, growth rate
forecasts, balance of payments status, and economic policies. The portfolio
managers consider whether to sell a particular security when any of those
factors materially changes.

The fund is non-diversified. With respect to 50% of its assets, it is permitted
to invest more than 5% of its assets in the securities of any one issuer.

The fund may engage in active and frequent trading of portfolio securities to
achieve its investment objectives. If the fund does trade in this way, it may
incur increased transaction costs, which can lower the actual return on your
investment. Active trading may also increase short-term capital gains and
losses, which may affect the taxes you have to pay.

PRINCIPAL RISKS OF INVESTING IN THE FUND
There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. The prices of equity
securities change in response to many factors including the historical and
prospective earnings of the issuer of the stock, the value of its assets,
general economic conditions, interest rates, investor perceptions, and market
liquidity. Debt securities are particularly vulnerable to credit risk and
interest rate fluctuations. When interest rates rise, bond prices fall; the
longer a bond's duration, the more sensitive it is to this risk. The prices of
high-coupon U.S. Government agency mortgage-backed securities fall more slowly
when interest rates rise than do prices of traditional fund-rate securities.

The prices of foreign securities may be further affected by other factors,
including:

REGULATIONS -- Foreign companies generally are subject to less stringent
regulations, including financial and accounting controls, than are U.S.
companies. As a result, there generally is less

Prospectus Page 24
<PAGE>
publicly available information about foreign companies than about U.S.
companies.

Sovereign debt securities of developing country governments are generally
lower-quality debt securities. Sovereign debt securities are subject to the
additional risk that, under some political, diplomatic, social, or economic
circumstances, some developing countries that issue lower quality debt
securities may be unable or unwilling to make principal or interest payments as
they come due.

Compared to higher-quality debt securities, junk bonds involve greater risk of
default or price changes due to changes in the credit quality of the issuer
because they are generally unsecured and may be subordinated to other creditors'
claims. The value of junk bonds often fluctuates in response to company,
political, or economic developments and can decline significantly over short
periods of time or during periods of general or regional economic difficulty.
During those times, the bonds may be difficult to value or sell at a fair price.
Credit ratings on junk bonds do not necessarily reflect their actual market
risk.

High-coupon U.S. Government agency mortgage-backed securities provide a higher
coupon at the time of purchase than current prevailing market interest rates.
The fund may purchase such securities at a premium. If these securities
experience a faster principal prepayment rate than expected, both the market
value of and income from such securities will decrease.

Because it is non-diversified, the fund may invest in fewer issuers than if it
were a diversified fund. Thus, the value of the fund's shares may vary more
widely, and the fund may be subject to greater investment and credit risk, than
if the fund invested more broadly.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

Prospectus Page 25
<PAGE>
ANNUAL TOTAL RETURNS

STRATEGIC INCOME FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 9.79% (quarter ended 3/31, 1995) and the lowest quarterly return was -17.63%
(quarter ended 3/31, 1994).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ---------
<S> <C> <C> <C>
Strategic Income Fund....... (.61)% 5.11% 8.72%
J.P. Morgan Global
Government Bond Index**... 15.31% 8.09% 8.72%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the J.P. Morgan Global
Government Bond Index since February 10, 1993, the fund's date of inception.

** The J.P. Morgan Global Government Bond Index is a market value-weighted
average of government bonds from 13 major bond markets. It includes the
effect of reinvested coupons and is measured in U.S. dollars.

Prospectus Page 26
<PAGE>
GLOBAL GOVERNMENT INCOME FUND

INVESTMENT OBJECTIVES AND STRATEGIES
The fund's primary investment objective is high current income and its secondary
investment objectives are capital appreciation and protection of capital.

The fund seeks to meet these objectives by investing at least 65% of its total
assets in debt securities (including mortgage-backed securities) issued or
guaranteed by U.S. and foreign governments or by their agencies, authorities,
and instrumentalities, as well as by supranational entities such as the World
Bank. The fund primarily invests in high quality government debt securities that
are rated in the top two ratings categories by Moody's Investors Service, Inc.
or Standard & Poor's, or deemed by the portfolio managers to be of comparable
quality. The fund may invest in lower-quality debt securities, i.e., "junk
bonds."

The fund may invest up to 35% of its total assets in: (1) foreign government
securities that are rated within the third and fourth highest ratings categories
by Moody's or S&P or deemed by the portfolio managers to be of comparable
quality; (2) corporate debt obligations of U.S. or foreign issuers rated at
least investment grade (rated within the four highest ratings categories by
Moody's or S&P; (3) privately issued mortgage-backed and asset-backed securities
that are rated at least investment grade, or deemed by the portfolio managers to
be of comparable quality; and (4) common stocks, preferred stocks and warrants,
provided that the fund will invest no more than 20% of its total assets in such
securities.

The fund will normally invest in securities issued by at least three different
countries, including the United States, and may invest a significant portion of
its assets in the securities of U.S. issuers. However, the fund will invest no
more than 40% of its total assets in securities of any one country, other than
the U.S. The fund will only invest in a foreign currency or in securities
denominated in a foreign currency if the portfolio managers consider the
currency to be fully exchangeable into U.S. dollars or a multinational currency
unit.

The portfolio managers allocate assets among securities of countries and in
currency denominations where the combination of fixed-income market returns,
price appreciation of fixed-income securities, and currency exchange rate
movements will present opportunities for meeting the fund's investment
objectives. The principal determinants of the emphasis given to various country,
geographic, and industry sectors within the fund are fundamental economic
strength, credit quality, and currency and interest rate trends. Further, the
portfolio managers select particular issuers based on additional economic
criteria such as yield, maturity, issue classification, and quality
characteristics. Currency investments are based upon economic factors (such as
relative inflation, interest rate levels and trends, growth rate forecasts,
balance of payments status, and economic policies) and on political and
technical data. The portfolio managers consider whether to sell a particular
security when any of those factors materially changes.

The fund is non-diversified. With respect to 50% of its assets, it is permitted
to invest more than 5% of its assets in the securities of any one issuer.

The fund may engage in active and frequent trading of portfolio securities to
achieve its investment objective. If the fund does trade in this way, it may
incur increased transaction costs, which can lower the actual return on your
investment. Active trading may also increase short-term capital gains and
losses, which may affect the taxes you have to pay.

PRINCIPAL RISKS OF INVESTING IN THE FUND
There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. Debt securities are
particularly vulnerable to credit risk and interest rate fluctuations. When
interest rates rise, bond prices fall; the longer a bond's duration, the more
sensitive it is to this risk. The fund could also lose money if any debt
securities that it holds are downgraded or go into default.

Mortgage-backed and asset backed securities are subject to different risks from
bonds and, as a result, may respond to changes in interest rates differently. If
interest rates fall, people refinance or pay off their mortgages ahead of time,
which may cause mortgage-backed securities to lose value. If interest rates
rise, many people may refinance or prepay their mortgages at a
slower-than-expected rate. This may effectively lengthen the life of
mortgage-backed securities, which may cause the

Prospectus Page 27
<PAGE>
securities to be more sensitive to changes in interest rates.

The prices of foreign securities may be further affected by other factors,
including:

Compared to higher-quality debt securities, junk bonds involve greater risk of
default or price changes due to changes in the credit quality of the issuer
because they are generally unsecured and may be subordinated to other creditors'
claims. The value of junk bonds often fluctuates in response to company,
political, or economic developments and can decline significantly over short
periods of time or during periods of general or regional economic difficulty.
During those times, the bonds could be difficult to value or to sell at a fair
price. Credit ratings on junk bonds do not reflect their actual market risk.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

Prospectus Page 28
<PAGE>
ANNUAL TOTAL RETURNS

GLOBAL GOVERNMENT INCOME FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 6.53% (quarter ended 3/31, 1995) and the lowest quarterly return was -6.38%
(quarter ended 3/31, 1994).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ---------
<S> <C> <C> <C>
Global Government Income
Fund...................... 12.69% 5.72% 6.43%
J.P. Morgan Global
Government Bond Index** 15.31% 8.09% 8.72%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the J.P. Morgan Global
Government Bond Index since February 10, 1993, the fund's date of inception.

Prospectus Page 29
<PAGE>
U.S. GOVERNMENT INCOME FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The fund's investment objective is a high level of current income, consistent
with preservation of capital.

The fund seeks to meet this objective by investing at least 65% of its total
assets in U.S. government securities including direct obligations of U.S.
Treasury and obligations issued or guaranteed by U.S. government agencies and
instrumentalities (including mortgage-backed securities). Within the latter
group are: (1) securities supported by the full faith and credit of the United
States; (2) securities supported by the right to borrow from the U.S. Treasury;
and (3) securities supported primarily or solely by the creditworthiness of the
issuer.

The fund may invest up to 35% of its total assets in: (1) foreign government
securities, including those of supranational entities such as the World Bank and
the Asian Development Bank, rated at least of investment grade (rated within the
four highest ratings categories by Moody's Investors Service, Inc. or Standard &
Poor's, or determined by the fund's sub-advisor to be of comparable quality);
(2) U.S. government securities that are rated within the third or fourth highest
ratings categories by Moody's or S&P; (3) privately issued mortgage-backed or
asset-backed securities that are rated at least investment grade, or determined
by the fund's sub-advisor to be of comparable quality; and (4) commercial paper
and other short-term obligations of U.S. and foreign corporations rated at least
A-1 by S&P or Prime-1 by Moody's, or determined by the fund's sub-advisor to be
of comparable quality.

The fund may invest in securities issued by one country but denominated in the
currency of another country (or a multinational currency unit) but will only
invest in such securities if the fund's sub-advisor considers the currency to be
fully exchangeable into U.S. dollars or a multinational currency unit.

PRINCIPAL RISKS OF INVESTING IN THE FUND
There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. Debt securities are
particularly vulnerable to credit risk and interest rate fluctuations. When
interest rates rise, bond prices fall; the longer a bond's duration, the more
sensitive it is to this risk. The fund could also lose money if any debt
securities that it holds are downgraded or go into default.

An investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

Prospectus Page 30
<PAGE>
ANNUAL TOTAL RETURNS

U.S. GOVERNMENT INCOME FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 5.44% (quarter ended 9/30, 1998) and the lowest quarterly return was -4.97%
(quarter ended 3/31, 1994).

PERFORMANCE TABLE
The following performance table compares the fund's performance to that of a
broad-based securities market index.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ---------
<S> <C> <C> <C>
U.S. Government Income
Fund...................... 9.06% 6.48% 5.36%
J.P. Morgan U.S. Government
Bond Index**.............. 10.25% 6.17% 7.55%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund and of the J.P. Morgan U.S.
Government Bond Index since February 10, 1993, the fund's date of inception.

** The J.P. Morgan U.S. Government Bond Index is a market value-weighted index
of U.S. Treasury issues with remaining maturities of at least one year. It
includes the effect of reinvested coupons and is measured in U.S. dollars.

Prospectus Page 31
<PAGE>
MONEY MARKET FUND

INVESTMENT OBJECTIVE AND STRATEGIES
The investment objective of the Money Market Fund is maximum current income
consistent with liquidity and conservation of capital.

The fund seeks to meet this objective by investing in high-quality, U.S. dollar
denominated money market instruments. The fund seeks to maintain a net asset
value of $1.00 per share. To do so, the fund will maintain a dollar-weighted
average maturity of 90 days or less and will purchase only instruments having
remaining maturities of 13 months or less.

The fund may invest only in first-tier high-quality U.S. dollar-denominated
money market securities determined by the fund's investment advisor to present
minimal credit risks. First-tier high quality securities are those that have
received the highest rating for short-term securities from at least two
nationally ranked statistical ratings organizations, such as Moody's Investors
Service, Inc. or Standard & Poor's, or were determined by the fund's investment
advisor to be of comparable quality. These include: (1) obligations issued or
guaranteed by the U.S. and foreign governments and their agencies and
instrumentalities (including direct obligations of the U.S. Treasury,
obligations backed by the full faith and credit of U.S. government, obligations
supported primarily or solely by the creditworthiness of the issuer, and similar
U.S. dollar-denominated instruments of foreign governments and their agencies
and instrumentalities); (2) obligations such as certificates of deposit and
banker's acceptances of U.S. and non-U.S. banks with total assets of at least $1
billion; (3) interest-bearing deposits in principal amounts less than the FDIC
insurance limit in U.S. commercial and savings banks with total assets of at
least $1 billion, up to 5% of the fund's assets; (4) commercial paper and other
short-term debt obligations of U.S. and foreign companies rated at least Prime-1
by Moody's or A-1 by S&P, or determined by the fund's investment advisor to be
of comparable quality; and (5) repurchase agreements secured by any of the above
securities.

In managing the fund, the fund's investment advisor may employ several
professional money management techniques, including varying the composition of
the fund's investments and the average weighted maturity of the fund's
securities within the limitations described above. Decisions on whether to use
such techniques are based upon the fund's investment advisor's identification
and assessment of the relative values of various money market instruments and
the future of interest rate patterns, economic conditions, and shifts in fiscal
and monetary policy. The fund's investment advisor's also may seek to improve
the fund's income by purchasing and selling securities, taking advantage of
yield disparities occurring in the market.

PRINCIPAL RISKS OF INVESTING IN THE FUND
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in this fund.

Prospectus Page 32
<PAGE>
ANNUAL TOTAL RETURNS

MONEY MARKET FUND

[GRAPH]

During the 5-year period shown in the bar chart, the highest quarterly return
was 1.66% (quarter ended 12/31, 1997) and the lowest quarterly return was 0.62%
(quarter ended 3/31, 1994).

PERFORMANCE TABLE
The following performance table shows the fund's average annual total return for
the periods indicated.

AVERAGE ANNUAL TOTAL RETURN(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEARS FUND*
--------- --------- ---------
<S> <C> <C> <C>
Money Market Fund............. 5.22% 4.82% 4.52%
</TABLE>

- --------------
(1) Assumes reinvestment of dividends and distributions.

* This column shows the returns of the fund since February 10, 1993, the
fund's date of inception.

SEVEN-DAY YIELD
The Money Market Fund's seven-day yield on December 31, 1998 was 3.85%. For the
current seven-day yield, call (800) 347-4246.

Prospectus Page 33
<PAGE>
FUND MANAGEMENT

- --------------------------------------------------------------------------------

THE ADVISOR AND SUB-ADVISORS
A I M Advisors, Inc. (the advisor) serves as each fund's investment advisor.

INVESCO Asset Management Limited (IAML), an affiliate of the advisor, is the
sub-advisor to each of the following funds:

- Europe Fund

- International Fund

- Latin America Fund

- Emerging Markets Fund

- Growth & Income Fund and

- Global Government Income Fund

INVESCO (NY), Inc. (INVESCO (NY)), an affiliate of the advisor, is the
sub-advisor to each of the following funds:

- U.S. Government Income Fund

- Money Market Fund and

- Strategic Income Fund

INVESCO Asia Limited (IAL), an affiliate of the advisor, is the sub-advisor to
New Pacific Fund.

Each fund's sub-advisor is responsible for that fund's day-to-day management,
subject to the supervision of the advisor. The advisor is located at 11 Greenway
Plaza, Suite 100, Houston, TX 77046-1173. IAML is located at 11 Devonshire
Square, London, EC2M 4YR, England. INVESCO (NY) is located at 1166 Avenue of the
Americas, New York, NY 10036 and 50 California Street, San Francisco, CA 94111.
IAL is located at Two Pacific Place, Suite 2106, 88 Queensway, Hong Kong.

The advisor and the sub-advisor together supervise all aspects of a fund's
operations and provide investment advisory services to the funds, including
obtaining and evaluating economic, statistical and financial information to
formulate and implement investment programs for the fund.

The advisor has acted as an investment advisor since its organization in 1976.
IAML, INVESCO (NY), and IAL have each acted as investment advisors since their
respective organizations in 1967, 1969, and 1972. Today, the advisor, together
with its subsidiaries, advises or manages over 110 investment portfolios,
including those of the funds, encompassing a broad range of investment
objectives.

ADVISOR COMPENSATION
During their last fiscal year ended December 31, 1998, the following funds each
paid the advisor advisory fees of 1.00% of their respective net assets:

- New Pacific Fund

- Europe Fund

- International Fund

- Infrastructure Fund

- Natural Resources Fund

- Telecommunications Fund

- Latin America Fund

- Emerging Markets Fund and

- Growth & Income Fund

During their last fiscal year ended December 31, 1998, the following funds each
paid the advisor advisory fees of 0.75% of their respective net assets:

- America Fund

- Strategic Income Fund

- Global Government Income Fund and

- U.S. Government Income Fund

During its last fiscal year ended December 31, 1998, the Money Market Fund paid
the advisor advisory fees of 0.50% of its net assets.

SUB-ADVISOR COMPENSATION
During the funds' last fiscal year ended December 31, 1998, the advisor paid to
a sub-advisor sub-advisory fees equal to 40% of the fees paid to it by each fund
sub-advised by such sub-advisor.

Prospectus Page 34
<PAGE>
NEW PACIFIC FUND

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR
NAME/OFFICE THE FUND BUSINESS EXPERIENCE DURING THE PAST 5 YEARS
- ------------------------- ------------------------ -------------------------------------------------------------------
<S> <C> <C>
Anna Tong Portfolio Manager since Portfolio Manager, INVESCO (NY), Inc. since June 1998 and Managing
1998 Director and Chief Investment Officer, INVESCO Asia Limited (Hong
Kong) since April 1997. Managing Director, INVESCO International
(FE) Ltd. (Hong King) and Director, INVESCO Investment Management
(HK) Ltd. (Hong Kong) since March 1985.
Sammy Lau Portfolio Manager since Portfolio Manager, INVESCO (NY), Inc. since June 1998. Director
1998 (since January 1996) and Associate Director (December 1994 to
January 1996), INVESCO Asia Limited (Hong Kong). Associate, J.P.
Morgan (Hong Kong) from November 1993 to November 1994. Investment
Manager, Baring International Asset Admin. Ltd. (Hong Kong) from
June 1990 to October 1993.
</TABLE>

EUROPE FUND

INTERNATIONAL FUND

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND DURING THE PAST FIVE YEARS
- ------------------------- ------------------------ -------------------------------------------------------------------
<S> <C> <C>
Roger Yates Portfolio Manager since Global Chief Investment Officer (since October 1997) and
1996 International Chief Investment Office (from September 1996 to
October 1997), INVESCO (NY), Inc. and INVESCO GT Asset Management.
Chief Investment Officer and Portfolio Manager for Europe and the
United Kingdom, INVESCO (NY), Inc. (from 1994 to 1996). Investment
Manager, Morgan Greenfell Asset Management, from 1988 to 1994.
Michael Lindsell Portfolio Manager since Head of Investment Strategy for Global Equities, INVESCO (NY), Inc.
1997 and INVESCO GT Asset Management PLC (London) since 1996. Chief
Investment Officer, INVESCO GT Asset Management Asia Ltd. (Hong
Kong) from 1992 to 1996. Portfolio Manager, INVESCO (NY), Inc.
from 1992 to 1996.
</TABLE>

AMERICA FUND

Prospectus Page 35
<PAGE>
<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND DURING THE PAST FIVE YEARS
- ------------------------- ------------------------ ------------------------------------------------------------------
<S> <C> <C>
Kenneth A. Zschappel Portfolio Manager since Assistant Vice President of AIM Capital and Portfolio Manager for
1999 the Fund since 1999. He has been associated with AIM and/or its
subsidiaries since he began working as an investment professional
in 1999.
</TABLE>

INFRASTRUCTURE FUND

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND DURING THE PAST FIVE YEARS
- ------------------------- ------------------------ -------------------------------------------------------------------
<S> <C> <C>
Claude C. Cody IV Portfolio Manager since Vice President of AIM Capital and Senior Portfolio Manager. Mr.
1999 Cody has been associated with AIM and/or its affiliates since
1992.
Robert G. Alley Portfolio Manager since Senior Vice President of AIM Capital and Senior Portfolio Manager.
1999 Mr. Alley has been associated with AIM and/or its affiliates since
1992.
Craig A. Smith Portfolio Manager since Vice President of AIM Capital and Senior Portfolio Manager. Mr.
1999 Smith has been associated with AIM and/or its affiliates since
1989.
Carolyn L. Gibbs Portfolio Manager since Vice President of AIM Capital and Senior Portfolio Manager. Ms.
1999 Gibbs has been associated with AIM and/or its affiliates since
1992.
Meggan M. Walsh Portfolio Manager since Vice President of AIM Capital. Ms. Walsh has been associated with
1999 AIM and/or its affiliates since 1991.
</TABLE>

NATURAL RESOURCES FUND

TELECOMMUNICATIONS FUND

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND DURING THE PAST FIVE YEARS
- ------------------------- ------------------------ -------------------------------------------------------------------
<S> <C> <C>
David P. Barnard Portfolio Manager since Vice President of A I M Capital Management, Inc. and Portfolio
1999 Manager for the Fund since 1999. He has been associated with AIM
and/or its subsidiaries since 1982 and has been an investment
professional since 1974.
Claude C. Cody IV Portfolio Manager since Vice President of A I M Capital Management, Inc. and Portfolio
1999 Manager for the Fund since 1999. He has been associated with AIM
and/or its subsidiaries since 1992 and has been an investment
professional since 1976.
Robert M. Kippes Portfolio Manager since Vice President of A I M Capital Management, Inc. and Portfolio
1999 Manager for the Fund since 1999. He has been associated with AIM
and/or its subsidiaries since he began working as an investment
professional in 1969.
</TABLE>

Prospectus Page 36
<PAGE>

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND DURING THE PAST FIVE YEARS
- ------------------------- ------------------------ ------------------------------------------------------------------
<S> <C> <C>
Jonathan C. Schoolar Portfolio Manager since Senior Vice President of A I M Capital Management, Inc. and
1999 Portfolio Manager for the Fund since 1999. He has been associated
with AIM and/or its subsidiaries since 1986 and has been an
investment professional since 1983.
Kenneth A. Zschappel Portfolio Manager since Assistant Vice President of A I M Capital Management, Inc. and
1999 Portfolio Manager for the Fund since 1999. He has been associated
with AIM and/or its subsidiaries since 1992 and began working as
an investment professional in 1990.
T. Bradley Conger Portfolio Manager since Portfolio Manager for the Fund since 1999. He has been associated
1999 with AIM and/or its subsidiaries since 1997. From 1989 to 1997 he
was a member of the Goldman Sachs & Co. international equity
sales team.
</TABLE>

LATIN AMERICA FUND

EMERGING MARKETS FUND

GROWTH & INCOME FUND

Prospectus Page 37
<PAGE>

STRATEGIC INCOME FUND

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND DURING THE PAST FIVE YEARS
- ------------------------- ------------------------ -------------------------------------------------------------------
<S> <C> <C>
Craig Munro Portfolio Manager since Portfolio Manager, INVESCO (NY), Inc., since August 1997. Vice
1998 President and Senior Analyst in Emerging Markets Group of the
Global Fixed Income Division of Merrill Lynch Asset Management,
from 1993 to August 1997.
Cheng-Hock Lau Portfolio Manager since Chief Investment Officer for Global Fixed Income (since October
1998 1996) and Senior Portfolio Manager for Global/ International Fixed
Income (July 1995 to October 1996), INVESCO (NY), Inc. Employed by
Chancellor Capital from 1995 to October 1996. Senior Vice
President and Senior Portfolio Manager, Fiduciary Trust Company
International, from 1993 to 1995.
Paul Griffiths Portfolio Manager since Head of Global Fixed Income (since June 1997) and Portfolio Manager
1999 (from 1994 to 1997), INVESCO (NY), Inc. and INVESCO GT Asset
Management. Global Bond Fund Manager, Lazard Investors, from 1993
to 1994.
Kieron Nutbrown Portfolio Manager since Portfolio Manager for INVESCO Asset Management Group Ltd. since
1999 March 1997. Quantitative Analyst and Portfolio Manager for Foreign
& Colonial Management from 1994 to 1997.
</TABLE>

GLOBAL GOVERNMENT INCOME FUND

Prospectus Page 38
<PAGE>
U.S. GOVERNMENT INCOME FUND

MONEY MARKET FUND

Prospectus Page 39
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

FINANCIAL HIGHLIGHTS

- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the financial
performance of each fund for the past 5 years. Certain information reflects
financial results for a single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in a fund (assuming reinvestment of all
dividends and distributions).

This information has been audited by PricewaterhouseCoopers LLP, whose report,
along with each fund's financial statements, is included in that fund's annual
report, which is available upon request.

GT GLOBAL VARIABLE INVESTMENT SERIES

<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE NEW PACIFIC FUND
-------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 10.50 $ 18.02 $ 13.92 $ 14.01 $ 16.07
------------ ------------ ------------ ------------ -------------
Net investment income (loss).................... 0.27(a) 0.26(b) 0.13(c) 0.20(d) 0.08(e)
Net realized and unrealized gain (loss) on
investments.................................... (1.80) (7.61) 4.16 (0.23) (2.08)
------------ ------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations (1.53) (7.35) 4.29 (0.03) (2.00)
------------ ------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... (0.25) (0.10) (0.19) (0.06) (0.06)
From net realized gain on investments........... -- (0.07) -- -- --
In excess of net investment income.............. -- -- -- -- --
In excess of net investment income.............. -- -- -- -- --
Return of capital............................... -- -- -- -- --
------------ ------------ ------------ ------------ -------------
Total distributions........................... (0.25) (0.17) (0.19) (0.06) (0.06)
------------ ------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 8.72 $ 10.50 $ 18.02 $ 13.92 $ 14.01
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Total investment return (f)....................... (14.54)% (41.11)% 30.97% (0.21)% (12.47)%
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $11,010 $16,490 $32,670 $23,025 $19,391
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 2.38% 1.50% 0.88% 1.27% 0.83%
Without reimbursement and/or expense
reductions..................................... 1.85% 1.16% 0.60% 1.74% 0.48%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.23% 1.09% 1.12% 1.14% 1.25%
Without reimbursement and/or expense
reductions..................................... 1.76% 1.43% 1.40% 1.61% 1.60%
Ratio of interest expense to average net assets... 0.02% --% --% --% --%
Portfolio turnover................................ 102% 93% 70% 67% 30%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.05.

(b) Includes reimbursement of Fund operating expenses of $0.02.

(d) Includes reimbursement of Fund operating expenses of $0.04.

(e) Includes reimbursement of Fund operating expenses of $0.03.

(f) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of these
charges would reduce the total return figures for all periods shown.

Prospectus Page 40
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT SERIES (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE EUROPE FUND
-------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 22.52 $ 21.34 $ 16.52 $ 15.22 $ 15.33
------------ ------------ ------------ ------------ -------------
Net investment income (loss).................... 0.08(a) 0.05(b) 0.05(c) 0.18(d) 0.16(e)
Net realized and unrealized gain (loss) on
investments.................................... 3.74 3.10 4.93 1.28 (0.25)
------------ ------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations 3.82 3.15 4.98 1.46 (0.09)
------------ ------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... (0.05) (0.06) (0.16) (0.16) --
From net realized gain on investments........... (2.97) (1.91) -- -- (0.02)
In excess of net investment income.............. -- -- -- -- --
In excess of net investment income.............. -- -- -- -- --
Return of capital............................... -- -- -- -- --
------------ ------------ ------------ ------------ -------------
Total distributions........................... (3.02) (1.97) (0.16) (0.16) (0.02)
------------ ------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 23.32 $ 22.52 $ 21.34 $ 16.52 $ 15.22
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Total investment return (f)....................... 15.98% 15.15% 30.25% 9.66% (0.59)%
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $32,617 $27,410 $24,537 $15,641 $15,020
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 0.34% 0.22% 0.36% 1.12% 1.48%
Without reimbursement and/or expense
reductions..................................... 0.30% 0.01% 0.09% 0.60% 1.07%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.23% 1.20% 1.20% 1.20% 1.25%
Without reimbursement and/or expense
reductions..................................... 1.27% 1.41% 1.47% 1.72% 1.66%
Ratio of interest expense to average net assets... 0.32% --% --% --% --%
Portfolio turnover................................ 107% 117% 56% 123% 61%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.01.

(b) Includes reimbursement of Fund operating expenses of $0.02.

(d) Includes reimbursement of Fund operating expenses of $0.08.

(e) Includes reimbursement of Fund operating expenses of $0.04.

Prospectus Page 41
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT SERIES (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE INTERNATIONAL FUND
-------------------------------------------------------------------------
JULY 5, 1994
(COMMENCEMENT
OF
OPERATIONS)
YEAR ENDED DECEMBER 31, TO
--------------------------------------------------------- DECEMBER 31,
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 12.72 $ 11.91 $ 11.01 $ 11.25 $ 12.00
------------ ------------ ------------ ------------ -------------
Net investment income (loss).................... 0.10*(a) 0.15(b) 0.05(c) 0.09(d) 0.06(e)
Net realized and unrealized gain (loss) on
investments.................................... (0.11) 0.68 0.89 (0.22) (0.76)
------------ ------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations (0.01) 0.83 0.94 (0.13) (0.70)
------------ ------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... (0.09) (0.02) -- (0.09) (0.05)
From net realized gain on investments........... (0.75) -- (0.04) (0.02) --
------------ ------------ ------------ ------------ -------------
Total distributions........................... (0.84) (0.02) (0.04) (0.11) (0.05)
------------ ------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 11.87 $ 12.72 $ 11.91 $ 11.01 $ 11.25
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Total investment return (f)+...................... (0.64)% 6.93% 8.52% (1.14)% (5.81)%
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 7,327 $ 5,929 $ 4,782 $ 3,663 $ 2,229
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense
reductions++................................... 1.64% 1.22% 0.48% 0.93% 3.33%
Without reimbursement and/or expense
reductions++................................... 0.56% 0.05% (0.86)% (1.35)% (2.56)%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense
reductions++................................... 1.25% 1.14% 1.15% 1.25% 0.69%
Without reimbursement and/or expense
reductions++................................... 2.33% 2.31% 2.49% 3.53% 6.58%
Ratio of interest expense to average net assets... 0.09% --% --% --% --%
Portfolio turnover++.............................. 105% 112% 92% 107% 17%
</TABLE>

- ------------------
* Calculated based upon average shares outstanding during the period.

(a) Includes reimbursement of Fund operating expenses of $0.09.

(b) Includes reimbursement of Fund operating expenses of $0.06.

(d) Includes reimbursement of Fund operating expenses of $0.22.

(e) Includes reimbursement of Fund operating expenses of $0.11.

+ Not annualized for periods of less than one year.

++ Annualized for periods of less than one year.

Prospectus Page 42
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT SERIES (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE AMERICA FUND
-------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 21.68 $ 19.71 $ 19.46 $ 15.81 $ 13.75
------------ ------------ ------------ ------------ -------------
Net investment income (loss).................... (0.13) (0.07) 0.12 0.21(a) 0.48(b)
Net realized and unrealized gain (loss) on
investments.................................... 1.80 2.88 3.18 3.80 2.08
------------ ------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations 1.67 2.81 3.30 4.01 2.56
------------ ------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... -- (0.09) (0.30) (0.07) (0.50)
From net realized gain on investments........... (3.20) (0.75) (2.75) (0.29) --
In excess of net investment income.............. -- -- -- -- --
In excess of net investment income.............. -- -- -- -- --
Return of capital............................... -- -- -- -- --
------------ ------------ ------------ ------------ -------------
Total distributions........................... (3.20) (0.84) (3.05) (0.36) (0.50)
------------ ------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 20.15 $ 21.68 $ 19.71 $ 19.46 $ 15.81
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Total investment return (c)....................... 8.09% 14.88% 18.55% 25.37% 18.88%
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $40,833 $43,977 $41,647 $37,643 $15,257
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... (0.59)% (0.35)% 0.52% 1.66% 1.83%
Without reimbursement and/or expense
reductions..................................... (0.59)% (0.42)% 0.46% 1.60% 0.76%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 0.95% 0.91% 0.95% 1.00% 0.98%
Without reimbursement and/or expense
reductions..................................... 0.95% 0.98% 1.01% 1.06% 2.05%
Ratio of interest expense to average net assets... 0.08% --% --% --% --%
Portfolio turnover................................ 181% 210% 248% 79% 139%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.01.

(b) Includes reimbursement of Fund operating expenses of $0.28.

(c) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of these
charges would reduce the total return figures for all periods shown.

Prospectus Page 43
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST

<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------
VARIABLE INFRASTRUCTURE FUND
----------------------------------------------------------
JANUARY 31,
1995
(COMMENCEMENT
OF
OPERATIONS)
YEAR ENDED DECEMBER 31, TO
------------------------------------------ DECEMBER 31,
1998 1997 1996 1995
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 16.35 $ 16.47 $ 13.27 $ 12.00
------------ ------------ ------------ -------------
Net investment income (loss).................... 0.31(a) 0.12(b) 0.11(c) 0.07(d)
Net realized and unrealized gain (loss) on
investments.................................... 0.77 0.74 3.19 1.20
------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations 1.08 0.86 3.30 1.27
------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... (0.17) (0.10) (0.03) --
From net realized gain on investments........... -- (0.88) (0.07) --
In excess of net investment income.............. -- -- -- --
In excess of net investment income.............. -- -- -- --
Return of capital............................... -- -- -- --
------------ ------------ ------------ -------------
Total distributions........................... (0.17) (0.98) (0.10) --
------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 17.26 $ 16.35 $ 16.47 $ 13.27
------------ ------------ ------------ -------------
------------ ------------ ------------ -------------
Total investment return (f)+...................... 6.34% 5.00% 24.88% 10.58%
------------ ------------ ------------ -------------
------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 6,341 $ 8,745 $ 6,054 $ 1,594
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense
reductions++................................... 1.37% 0.99% 1.35% 1.24%
Without reimbursement and/or expense
reductions++................................... 0.94% 0.68% 0.03% (6.11)%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense
reductions++................................... 1.25% 1.18% 1.21% 1.22%
Without reimbursement and/or expense
reductions++................................... 1.68% 1.49% 2.53% 8.57%
Ratio of interest expense to average net assets... --% --% --% --%
Portfolio turnover++.............................. 110% 46% 76% 38%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.09.

(b) Includes reimbursement of Fund operating expenses of $0.04.

(d) Includes reimbursement of Fund operating expenses of $0.42.

+ Not annualized for periods of less than one year.

++ Annualized for periods of less than one year.

Prospectus Page 44
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------
VARIABLE NATURAL RESOURCES FUND
----------------------------------------------------------
JANUARY 31,
1995
(COMMENCEMENT
OF
OPERATIONS)
YEAR ENDED DECEMBER 31, TO
------------------------------------------ DECEMBER 31,
1998 1997 1996 1995
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 20.20 $ 20.98 $ 13.88 $ 12.00
------------ ------------ ------------ -------------
Net investment income (loss).................... 0.23(a) (0.03)(b) (0.06)(c) 0.73(d)
Net realized and unrealized gain (loss) on
investments.................................... (6.38) 0.18 7.16 1.91
------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations (6.15) 0.15 7.10 2.64
------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... -- -- -- (0.71)
From net realized gain on investments........... (3.15) (0.93) -- --
In excess of net investment income.............. -- -- -- --
In excess of net investment income.............. -- -- -- (0.05)
Return of capital............................... -- -- -- --
------------ ------------ ------------ -------------
Total distributions........................... (3.15) (0.93) -- (0.76)
------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 10.90 $ 20.20 $ 20.98 $ 13.88
------------ ------------ ------------ -------------
------------ ------------ ------------ -------------
Total investment return (f)+...................... (33.01)% 1.29% 51.15% 22.20%
------------ ------------ ------------ -------------
------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 6,396 $16,709 $16,308 $ 1,365
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense
reductions++................................... 1.22% (0.16)% (0.60)% 10.87%
Without reimbursement and/or expense
reductions++................................... 0.97% (0.38)% (1.30)% 2.94%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense
reductions++................................... 1.24% 1.20% 1.19% 1.14%
Without reimbursement and/or expense
reductions++................................... 1.49% 1.42% 1.89% 9.07%
Ratio of interest expense to average net assets... 0.04% --% --% --%
Portfolio turnover++.............................. 305% 315% 199% 875%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.04.

(b) Includes reimbursement of Fund operating expenses of $0.03.

(d) Includes reimbursement of Fund operating expenses of $0.47.

+ Not annualized for periods of less than one year.

++ Annualized for periods of less than one year.

Prospectus Page 45
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE TELECOMMUNICATIONS FUND
-------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 18.40 $ 18.14 $ 16.87 $ 13.98 $ 13.07
------------ ------------ ------------ ------------ -------------
Net investment income (loss).................... (0.01)(a) (0.02) (0.05) 0.02 0.01(b)
Net realized and unrealized gain (loss) on
investments.................................... 3.99 2.59 3.31 3.26 0.92
------------ ------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations 3.98 2.57 3.26 3.28 0.93
------------ ------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... -- -- (0.02) (0.03) (0.02)
From net realized gain on investments........... (1.72) (2.31) (1.97) (0.36) --
In excess of net realized gain on investments... -- -- -- -- --
------------ ------------ ------------ ------------ -------------
Total distributions........................... (1.72) (2.31) (1.99) (0.39) (0.02)
------------ ------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 20.66 $ 18.40 $ 18.14 $ 16.87 $ 13.98
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Total investment return (c)....................... 22.11% 14.56% 19.34% 23.66% 7.15%
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $69,459 $68,186 $63,258 $50,778 $36,029
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... (0.04)% (0.10)% (0.26)% 0.16% 0.31%
Without reimbursement and/or expense
reductions..................................... (0.05)% (0.15)% (0.31)% 0.10% 0.07%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.16% 1.11% 1.12% 1.20% 1.25%
Without reimbursement and/or expense
reductions..................................... 1.17% 1.16% 1.17% 1.26% 1.49%
Ratio of interest expense to average net assets... 0.01% --% --% --% --%
Portfolio turnover................................ 73% 91% 77% 70% 81%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.01.

(b) Includes reimbursement of Fund operating expenses of $0.01.

Prospectus Page 46
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE LATIN AMERICA FUND
-------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 16.95 $ 14.80 $ 12.42 $ 19.17 $ 17.68
------------ ------------ ------------ ------------ -------------
Net investment income (loss).................... 0.39(a) 0.24(b) 0.27(c) 0.51(d) 0.11(e)
Net realized and unrealized gain (loss) on
investments.................................... (7.36) 1.91 2.49 (5.10) 1.49
------------ ------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations (6.97) 2.15 2.76 (4.59) 1.60
------------ ------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... (0.25) -- (0.37) (0.16) (0.04)
From net realized gain on investments........... (0.12) -- -- (2.00) (0.07)
In excess of net realized gain on investments... -- -- (0.01) -- --
------------ ------------ ------------ ------------ -------------
Total distributions........................... (0.37) -- (0.38) (2.16) (0.11)
------------ ------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 9.61 $ 16.95 $ 14.80 $ 12.42 $ 19.17
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Total investment return (f)....................... (41.71)% 14.53% 22.48% (24.14)% 9.14%
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 9,935 $28,786 $22,928 $19,771 $26,631
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 1.97% 1.36% 1.94% 4.43% 0.82%
Without reimbursement and/or expense
reductions..................................... 1.70% 1.21% 1.69% 3.92% 0.49%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.25% 1.25% 1.17% 1.18% 1.25%
Without reimbursement and/or expense
reductions..................................... 1.52% 1.40% 1.42% 1.69% 1.58%
Ratio of interest expense to average net assets... 0.14% --% --% --% --%
Portfolio turnover................................ 43% 141% 102% 140% 185%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.04.

(b) Includes reimbursement of Fund operating expenses of $0.02.

(d) Includes reimbursement of Fund operating expenses of $0.06.

(e) Includes reimbursement of Fund operating expenses of $0.04.

Prospectus Page 47
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE EMERGING MARKETS FUND
-------------------------------------------------------------------------
JULY 5, 1994
(COMMENCEMENT
OF
OPERATIONS)
YEAR ENDED DECEMBER 31, TO
--------------------------------------------------------- DECEMBER 31,
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 11.57 $ 14.26 $ 10.88 $ 11.89 $ 12.00
------------ ------------ ------------ ------------ -------------
Net investment income (loss).................... 0.27(a) 0.15(b) 0.11(c) 0.14(d) 0.07(e)
Net realized and unrealized gain (loss) on
investments.................................... (4.34) (1.89) 3.27 (1.04) (0.05)
------------ ------------ ------------ ------------ -------------
Net increase (decrease) resulting from
operations (4.07) (1.74) 3.38 (0.90) 0.02
------------ ------------ ------------ ------------ -------------
Distributions to shareholders:
From net investment income...................... -- (0.06) -- (0.09) (0.07)
From net realized gain on investments........... (0.81) (0.89) -- -- --
In excess of net investment income.............. -- -- -- -- --
In excess of net investment income.............. -- -- -- -- (0.06)
Return of capital............................... -- -- -- (0.02) --
------------ ------------ ------------ ------------ -------------
Total distributions........................... (0.81) (0.95) -- (0.11) (0.13)
------------ ------------ ------------ ------------ -------------
Net asset value, end of period.................... $ 6.69 $ 11.57 $ 14.26 $ 10.88 $ 11.89
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Total investment return (f)+...................... (36.90)% (13.76)% 31.07% (7.54)% 0.12%
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 5,651 $16,509 $17,604 $ 8,983 $ 7,267
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense
reductions++................................... 1.61% 1.05% 0.89% 1.55% 4.10%
Without reimbursement and/or expense
reductions++................................... 0.72% 0.78% 0.39% 0.51% (0.20)%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense
reductions++................................... 1.23% 1.22% 1.18% 1.18% 0.00%
Without reimbursement and/or expense
reductions++................................... 2.12% 1.49% 1.68% 2.22% 4.30%
Ratio of interest expense to average net assets... 0.17% --% --% --% --%
Portfolio turnover++.............................. 110% 212% 216% 210% 117%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.08.

(b) Includes reimbursement of Fund operating expenses of $0.03.

(d) Includes reimbursement of Fund operating expenses of $0.09.

(e) Includes reimbursement of Fund operating expenses of $0.07.

+ Not annualized for periods of less than one year.

++ Annualized for periods of less than one year.

Prospectus Page 48
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------
VARIABLE GROWTH & INCOME FUND
------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 18.60 $ 16.51 $ 14.57 $ 12.99 $ 13.77
------------ ------------ ------------ ------------ ------------
Net investment income (loss).................... 0.53 0.41 0.53(a) 0.52(b) 0.46(c)
Net realized and unrealized gain (loss) on
investments.................................... 3.08 2.23 1.81 1.46 (0.85)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) resulting from
operations 3.61 2.64 2.34 1.98 (0.39)
------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income...................... (0.44) (0.51) (0.35) (0.40) (0.39)
From net realized gain on investments........... (0.26) (0.04) (0.05) -- --
In excess of net realized gain on investments... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total distributions........................... (0.70) (0.55) (0.40) (0.40) (0.39)
------------ ------------ ------------ ------------ ------------
Net asset value, end of period.................... $ 21.51 $ 18.60 $ 16.51 $ 14.57 $ 12.99
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return (d)....................... 19.60% 16.22% 16.33% 15.49% (2.85)%
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $55,580 $50,356 $36,433 $30,565 $25,580
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 2.53% 2.86% 3.58% 3.87% 3.69%
Without reimbursement and/or expense
reductions..................................... 2.53% 2.72% 3.48% 3.66% 3.45%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.22% 1.13% 1.20% 1.23% 1.25%
Without reimbursement and/or expense
reductions..................................... 1.22% 1.27% 1.30% 1.44% 1.49%
Ratio of interest expense to average net assets... 0.04% --% --% --% --%
Portfolio turnover................................ 72% 60% 57% 73% 53%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.01.

(b) Includes reimbursement of Fund operating expenses of $0.03.

(d) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of these
charges would reduce the total return figures for all periods shown.

Prospectus Page 49
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------
VARIABLE STRATEGIC INCOME FUND
------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 13.39 $ 13.38 $ 11.86 $ 10.82 $ 14.57
------------ ------------ ------------ ------------ ------------
Net investment income (loss).................... 0.97(a) 1.00(b) 0.95(c) 1.07(d) 1.71(e)
Net realized and unrealized gain (loss) on
investments.................................... (1.05) (0.07) 1.50 0.93 (4.17)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) resulting from
operations (0.08) 0.93 2.45 2.00 (2.46)
------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income...................... (0.92) (0.92) (0.85) (0.96) (0.79)
From net realized gain on investments........... -- -- (0.08) -- (0.45)
In excess of net investment income.............. -- -- -- -- --
In excess of net investment income.............. -- -- -- -- --
Return of capital............................... -- -- -- -- (0.05)
------------ ------------ ------------ ------------ ------------
Total distributions........................... (0.92) (0.92) (0.93) (0.96) (1.29)
------------ ------------ ------------ ------------ ------------
Net asset value, end of period.................... $ 12.39 $ 13.39 $ 13.38 $ 11.86 $ 10.82
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return (f)....................... (0.61)% 7.14% 21.58% 19.50% (17.09)%
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $22,022 $28,497 $31,718 $25,345 $23,367
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 7.16% 7.20% 7.74% 9.59% 7.58%
Without reimbursement and/or expense
reductions..................................... 6.97% 7.03% 7.59% 9.35% 7.43%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.00% 0.90% 0.99% 1.00% 1.00%
Without reimbursement and/or expense
reductions..................................... 1.19% 1.07% 1.14% 1.24% 1.15%
Ratio of interest expense to average net assets... 0.16% --% --% --% --%
Portfolio turnover................................ 282% 185% 210% 193% 313%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.02.

(b) Includes reimbursement of Fund operating expenses of $0.01.

(d) Includes reimbursement of Fund operating expenses of $0.03.

(e) Includes reimbursement of Fund operating expenses of $0.04.

Prospectus Page 50
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------
VARIABLE GLOBAL GOVERNMENT INCOME FUND
------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 11.17 $ 11.43 $ 11.51 $ 10.63 $ 12.53
------------ ------------ ------------ ------------ ------------
Net investment income (loss).................... 0.67(a) 0.82(b) 0.72(c) 0.79(d) 0.77(e)
Net realized and unrealized gain (loss) on
investments.................................... 0.71 (0.34) (0.06) 0.84 (1.85)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) resulting from
operations 1.38 0.48 0.66 1.63 (1.08)
------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income...................... (0.62) (0.74) (0.74) (0.75) (0.73)
From net realized gain on investments........... -- -- -- -- --
In excess of net investment income.............. (0.02) -- -- -- --
In excess of net investment income.............. -- -- -- -- --
Return of capital............................... -- -- -- -- (0.09)
------------ ------------ ------------ ------------ ------------
Total distributions........................... (0.64) (0.74) (0.74) (0.75) (0.82)
------------ ------------ ------------ ------------ ------------
Net asset value, end of period.................... $ 11.91 $ 11.17 $ 11.43 $ 11.51 $ 10.63
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return (f)....................... 12.69% 4.37% 6.17% 15.85% (8.70)%
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 8,801 $ 8,251 $10,397 $11,944 $ 9,654
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 5.71% 6.33% 6.32% 7.03% 6.89%
Without reimbursement and/or expense
reductions..................................... 5.28% 5.74% 5.80% 6.37% 6.21%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.00% 0.95% 0.95% 1.00% 1.00%
Without reimbursement and/or expense
reductions..................................... 1.43% 1.54% 1.47% 1.66% 1.68%
Ratio of interest expense to average net assets... 0.07% --% --% --% --%
Portfolio turnover................................ 224% 235% 235% 394% 350%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.05.

(b) Includes reimbursement of Fund operating expenses of $0.06.

(d) Includes reimbursement of Fund operating expenses of $0.07.

(e) Includes reimbursement of Fund operating expenses of $0.08.

Prospectus Page 51
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT TRUST (CONTINUED)

<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------
VARIABLE U.S. GOVERNMENT INCOME FUND
------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 11.70 $ 11.41 $ 11.74 $ 10.79 $ 12.23
------------ ------------ ------------ ------------ ------------
Net investment income (loss).................... 0.63(a) 0.63(b) 0.60(c) 0.62(d) 0.63(e)
Net realized and unrealized gain (loss) on
investments.................................... 0.40 0.29 (0.35) 0.93 (1.39)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) resulting from
operations 1.03 0.92 0.25 1.55 (0.76)
------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income...................... (0.62) (0.54) (0.58) (0.60) (0.62)
From net realized gain on investments........... -- (0.09) -- -- (0.06)
In excess of net investment income.............. -- -- -- -- --
In excess of net investment income.............. -- -- -- -- --
Return of capital............................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total distributions........................... (0.62) (0.63) (0.58) (0.60) (0.68)
------------ ------------ ------------ ------------ ------------
Net asset value, end of period.................... $ 12.11 $ 11.70 $ 11.41 $ 11.74 $ 10.79
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return (f)....................... 9.06% 8.30% 2.23% 14.73% (6.27)%
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 7,381 $ 7,373 $ 5,483 $ 5,992 $ 2,415
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 5.17% 5.54% 5.24% 5.43% 5.53%
Without reimbursement and/or expense
reductions..................................... 4.85% 4.92% 4.49% 3.87% 1.29%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 1.00% 1.00% 1.00% 1.00% 0.38%
Without reimbursement and/or expense
reductions..................................... 1.32% 1.62% 1.75% 2.56% 4.63%
Ratio of interest expense to average net assets... 0.07% --% --% --% --%
Portfolio turnover................................ 231% 143% 49% 186% 34%
</TABLE>

- ------------------
(a) Includes reimbursement of Fund operating expenses of $0.04.

(b) Includes reimbursement of Fund operating expenses of $0.06.

(d) Includes reimbursement of Fund operating expenses of $0.14.

(e) Includes reimbursement of Fund operating expenses of $0.48.

Prospectus Page 52
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS

GT GLOBAL VARIABLE INVESTMENT SERIES

<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------
MONEY MARKET FUND
------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Net investment income (loss).................... 0.05 0.05 0.05 0.05 0.03
Net realized and unrealized gain (loss) on
investments.................................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase (decrease) resulting from
operations 0.05 0.05 0.05 0.05 0.03
------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income...................... (0.05) (0.05) (0.05) (0.05) (0.03)
From net realized gain on investments........... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total distributions........................... (0.05) (0.05) (0.05) (0.05) (0.03)
------------ ------------ ------------ ------------ ------------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return (a)....................... 5.22% 5.37% 4.75% 5.24% 3.48%
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $31,588 $26,964 $19,794 $14,891 $19,474
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions.... 4.70% 4.77% 4.67% 5.15% 3.70%
Without reimbursement and/or expense
reductions..................................... 4.70% 4.73% 4.57% 4.85% 3.64%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions.... 0.73% 0.75% 0.75% 0.75% 0.75%
Without reimbursement and/or expense
reductions..................................... 0.73% 0.79% 0.85% 1.05% 0.81%
Ratio of interest expense to average net assets... N/A N/A N/A N/A N/A
Portfolio turnover................................ N/A N/A N/A N/A N/A
</TABLE>

- ------------------

(a) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of these
charges would reduce the total return figures for all periods shown.

N/A Not applicable.

Prospectus Page 53
<PAGE>
HOW TO INVEST

- --------------------------------------------------------------------------------

The funds serve as funding vehicles for the variable annuity contracts offered
by participating insurance companies through separate accounts. Shares of the
funds may be offered to separate accounts of participating insurance companies
and serve as the underlying investments for variable annuity contracts.

The owners of variable annuity contracts may allocate premium payments among the
general accounts of the participating insurance companies and the divisions of
the separate accounts that correspond to the funds. Individuals may not pay
variable annuity premiums directly to the funds.

The variable annuity contracts are described in a separate prospectus issued by
each participating insurance company for which the companies assume no
responsibility. Individual variable annuity contract holders are not the
"shareholders" of either company or any fund. Rather, each participating
insurance company and its separate accounts are the shareholders (the
"shareholders"). In accordance with current law, shareholder voting rights will
be passed on to variable annuity contract holders. As described below, for
certain matters company shareholders vote together as a group; as to other
matters, they vote separately by fund.

Shares of the funds are offered and redeemed at their respective net asset
values without the addition of any sales load or redemption charge next
determined following receipt by a separate account of premium payments,
surrender requests under policies, loan payments, transfer requests, and similar
or related transactions. The funds do not issue share certificates. See "Pricing
of Shares."

- --------------------------------------------------------------------------------

PRICING OF SHARES

- --------------------------------------------------------------------------------

Each fund prices its shares based upon its net asset value. The net asset value
of a fund is equal to its total assets (consisting mainly of portfolio
securities and cash) minus its total liabilities. Each of the funds, other than
the Money Market Fund, values its portfolio securities for which market
quotations are readily available at market price. The funds value short-term
investments (maturing within 60 days) at amortized cost, which approximates
market value. The Money Market Fund values its assets at amortized cost. When
market quotations for futures and options positions held by the funds are
readily available, those positions are valued based upon such quotations.
Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based upon the prevailing exchange rates on that day. Securities and
other assets for which market quotations are not readily available are valued at
fair value determined in good faith by, or under the supervision of, the
respective fund's Board of Trustees.

In addition, if, between the time trading ends for a particular security and the
close of the New York Stock Exchange (NYSE), events occur that materially affect
the value of the security, the funds may value the security at its fair value as
determined in good faith by, or under the supervision of, the Board of Trustees
of the fund. Because some of the funds may invest in securities that are
primarily listed on foreign exchanges, the value of those funds' shares may
change on days when you will not be able to purchase or redeem shares.

Each fund determines the net asset value of its shares as of the close of
regular trading on the NYSE on each day the NYSE is open for business. The funds
price purchase, exchange, and redemption orders at the net asset value
calculated after the transfer agent receives an order in good form.

Prospectus Page 54
<PAGE>
TAXES

- --------------------------------------------------------------------------------

DIVIDENDS AND OTHER DISTRIBUTIONS.
In general, dividends and distributions you receive from each fund are taxable
as ordinary income or capital gains for federal income tax purposes, whether you
reinvest them in additional shares or take them in cash. Distributions are
taxable to you at different rates depending upon the length of time the fund
holds its assets (i.e., short-term and long-term capital gains distributions).
Every year, an account statement showing the amount of dividends and
distributions you received from each fund during the prior year will be send to
you.

The Money Market Fund declares dividends from net investment income on each day
that it determines its net asset value. These dividends are usually paid on the
last calendar day of each month. The Money Market Fund generally makes
distributions of any net short-term capital gain annually after the end of its
fiscal year on December 31. The Money Market Fund does not expect to realize any
long-term capital gains. The Strategic Income Fund, the Global Government Income
Fund, and the U.S. Government Income Fund each declare and pay dividends from
net investment income, if any, and make distributions of net short-term capital
gains, if any, on a quarterly basis. The Growth & Income Fund declares and pays
dividends from net investment income, if any, and makes distributions of net
short-term capital gains, if any, on a quarterly basis. The New Pacific Fund,
the Europe Fund, the International Fund, the America Fund, the Infrastructure
Fund, the Natural Resources Fund, the Telecommunications Fund, the Latin America
Fund, and the Emerging Markets Fund each declare and pay dividends from net
investment income, if any, on an annual basis.

All funds, except the Money Market Fund, distribute to shareholders on an annual
basis substantially all of their net capital gains (excess of net long-term
capital gain over net short-term capital loss) and net gains from foreign
currency transactions, if any. Dividends and other distributions from a fund are
paid in additional shares of that fund at net asset value per share, unless
A I M Fund Services, Inc., the funds' transfer agent, is instructed otherwise.

Fund shares are offered only to separate accounts established to fund variable
annuity contracts. Under the Code, no tax is imposed on an insurance company
with respect to income of a qualifying separate account properly allocable to
the value of eligible variable annuity or variable life insurance contracts.

Each fund intends to continue to comply with the diversification requirements
imposed by section 817(h) of the Code and the regulations thereunder. These
requirements, which are in addition to the diversification requirements imposed
on the funds by the 1940 Act and Subchapter M of the Code, place certain
limitations on the amount of assets of each separate account -- and, because
section 817(h) and those regulations treat each fund's assets as assets of the
related separate accounts, of each fund -- that can be invested in securities of
a single issuer.

The foregoing is only a summary of some of the important federal income tax
considerations generally affecting the funds and the separate accounts. For
further information, see the statement of additional information and the
applicable variable annuity contract prospectus.

Prospectus Page 55
<PAGE>
OBTAINING ADDITIONAL INFORMATION

- --------------------------------------------------------------------------------

More information may be obtained free of charge upon request. The statement of
additional information (SAI), a current version of which is on file with the
United States Securities and Exchange Commission (SEC) contains more details
about each of the funds and is incorporated by reference into each prospectus
(is legally a part of each prospectus). Annual and semi-annual report to
shareholders contain additional information about each fund's investments. Each
fund's annual report also discusses the market conditions and investment
strategies that significantly affected that fund's performance during its last
fiscal year.

If you have questions about this fund, another fund in The AIM Family of Funds
or your account, or wish to obtain free copies of the fund's current SAI or
annual or semi-annual reports, please contact us:

<TABLE>
<S> <C>
BY MAIL: GT Global Variable Investment
Fund
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
BY TELEPHONE: (800) 347-4246
BY E-MAIL: [email protected]
</TABLE>

You can also obtain copies of the funds' SAI and other information at the SEC's
Public Reference Room in Washington, D.C., on the SEC's website
(http://www.sec.gov) or by sending a letter, including a duplicating fee, to the
SEC's Public Reference Section, Washington, D.C. 20549-6009. Please call the SEC
at 1-800-SEC-0330 for information about the Public Reference Room.

GT Global Variable Investment Series
SEC 1940 Act file number: 811-6632
GT Global Variable Investment Trust
SEC 1940 Act file number: 811-7164

Prospectus Page 56