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AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. AGGRESSIVE GROWTH FUND
AIM V.I. BALANCED FUND
AIM V.I. CAPITAL APPRECIATION FUND
AIM V.I. CAPITAL DEVELOPMENT FUND
AIM V.I. DIVERSIFIED INCOME FUND
AIM V.I. GLOBAL UTILITIES FUND
AIM V.I. GOVERNMENT SECURITIES FUND
AIM V.I. GROWTH FUND
AIM V.I. GROWTH AND INCOME FUND
AIM V.I. HIGH YIELD FUND
AIM V.I. INTERNATIONAL EQUITY FUND
AIM V.I. MONEY MARKET FUND
AIM V.I. VALUE FUND
Supplement dated October 1, 1999
to the Prospectus dated May 3, 1999
as supplemented July 1, 1999
The first paragraph under the "INVESTMENT OBJECTIVES AND STRATEGIES: ALL FUNDS
(EXCEPT AIM V.I. MONEY MARKET FUND)" section on Page 3 of the prospectus is
deleted and replaced with the following:
"In anticipation of or in response to adverse market
conditions, for cash management purposes, or for defensive purposes,
each fund may temporarily hold all or a portion of its assets in cash,
money market instruments, shares of affiliated money market funds,
bonds or other debt securities. As a result, each fund may not achieve
its investment objectives."
The following paragraph is added after the second paragraph under the
"PRINCIPAL RISKS OF INVESTING IN THE FUNDS - ALL FUNDS" section on page 6 of
the prospectus:
Some of the funds may participate in the initial public offering (IPO)
market. For any fund (excluding AIM V.I. Capital Appreciation Fund, AIM
V.I. Government Securities Fund, AIM V.I. Growth and Income Fund and AIM
V.I. Value Fund) that has a small asset base, any investment a fund may
make in IPOs may significantly increase its total returns. As a fund's
assets grow, the impact of IPO investments will decline, which may reduce
its total returns.
The first paragraph under the "PERFORMANCE INFORMATION" section on page 7 of the
prospectus should be deleted in its entirety and replaced with the following:
"The bar charts and tables shown below provide an indication of the
risks of investing in each fund. A fund's past performance is not
necessarily an indication of its future performance. The bar charts and
performance tables shown below do no reflect charges at the separate
account level. If they did, the performance shown would be lower. Total
return information in the bar charts and tables below may be affected by
special market factors, including certain funds' investments in initial
public offerings (IPOs), which may have a magnified impact on those funds
(excluding AIM V.I. Capital Appreciation Fund, AIM V.I. Government
Securities Fund, AIM V.I. Growth and Income Fund and AIM V.I. Value Fund)
that have a small asset base. There is no guarantee that, as those
funds' assets grow, they will continue to experience substantially
similar performance. SEC Rules do not allow us to provide a bar chart and
performance table for funds that do not have at least a full calendar
year of performance."
The following paragraph is added after the fourth paragraph under the "FINANCIAL
HIGHLIGHTS" section on page 18 of the prospectus:
"Total return information in the following tables may be affected by
special market factors, including certain funds' investments in initial
public offerings (IPOs), which may have a magnified impact on those funds
(excluding AIM V.I. Capital Appreciation Fund, AIM V.I. Government
Securities Fund, AIM V.I. Growth and Income Fund and AIM V.I. Value Fund)
that have a small asset base. There is no guarantee that, as those
funds' assets grow, they will continue to experience substantially
similar performance."
The table located under the "FUND MANAGEMENT-PORTFOLIO MANAGERS: AIM V.I.
GOVERNMENT SECURITIES FUND" section on page 16 of the prospectus should be
deleted in its entirety and replaced with the following:
"o Laurie F. Brignac, who has been responsible for the fund since 1999
and has been associated with the advisor and/or its affiliates since
1992.
o Scot W. Johnson, Senior Portfolio Manager, who has been responsible
for the fund since 1998 and has been associated with the advisor
and/or its affiliates since 1994.
o Karen Dunn Kelley, Senior Portfolio Manager, who has been responsible
for the fund since 1993 and has been associated with the advisor
and/or its affiliates since 1989."
