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AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. GROWTH AND INCOME FUND
Supplement dated December 16, 1996
to the Prospectus dated May 1, 1996
as supplemented October 9, 1996 and November 5, 1996
APPROVAL OF NEW ADVISORY, ADMINISTRATIVE SERVICES AND DISTRIBUTION AGREEMENTS
On December 11, 1996, the Board of Directors (the "Board") of AIM
Variable Insurance Funds, Inc. (the "Company") approved a new investment
advisory agreement, subject to shareholder approval, between A I M Advisors,
Inc. ("AIM") and the Company with respect to AIM V.I. Growth and Income Fund
(the "Fund"). Shareholders will be asked to approve the proposed advisory
agreement at an annual meeting of shareholders to be held on February 7, 1997
(the "Annual Meeting"). The Board has also approved a new administrative
services agreement with AIM and a new distribution agreement with A I M
Distributors, Inc. There are no material changes to the terms of the new
agreements, including the fees payable by the Fund. No change is anticipated
in the investment advisory or other personnel responsible for the Fund as a
result of these new agreements.
The Board has approved these new agreements because the Fund's
corresponding existing agreements will terminate upon the consummation of the
proposed merger of A I M Management Group Inc., the parent of AIM, into a
subsidiary of INVESCO plc. INVESCO plc and its subsidiaries are an independent
investment management group engaged in institutional investment management and
retail mutual fund businesses in the United States, Europe and the Pacific
region. It is contemplated that the merger will occur on February 28, 1997.
Provided that the Fund's shareholders approve the new advisory agreement at the
Annual Meeting and the merger is consummated, the new advisory agreement with
respect to the Fund, as well as the new administrative services and
distribution agreements, will automatically become effective as of the closing
of the merger.
PROPOSED CHANGES TO FUNDAMENTAL INVESTMENT POLICIES
The Board has unanimously approved the elimination of and changes to
certain fundamental investment policies of the Fund, subject to shareholder
approval. Shareholders will be asked to approve these changes at the Annual
Meeting. If approved, they will become effective on March 1, 1997.
The Fund is currently subject to a fundamental investment policy which
generally prohibits it from investing in other investment companies. The Board
has approved the elimination of this prohibition, and the amendment to other
fundamental investment policies that correspond to the proposed elimination.
The elimination of the fundamental investment policy that prohibits the Fund
from investing in other investment companies and the proposed amendments to the
corresponding fundamental investment policies would permit investment in other
investment companies to the extent permitted by the Investment Company Act of
1940, and rules and regulations thereunder, and, if applicable, exemptive
orders granted by the Securities and Exchange Commission.
For additional information regarding the proposed changes described
above, see the Fund's Statement of Additional Information dated May 1, 1996,
as supplemented as of December 16, 1996.
