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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 July 1, 1999
to the Prospectus dated May 3, 1999
The third paragraph under the "INVESTMENT OBJECTIVE AND STRATEGIES: AIM V.I.
MONEY MARKET FUND" section on page 3 of the prospectus should be deleted in its
entirety and replaced with the following:
"The fund may invest up to 50% of its total assets in U.S. dollar-
denominated securities of foreign issuers. The fund may invest up to
100% of its total assets in obligations issued by banks.
The portfolio managers focus on securities that they believe have
favorable prospects for current income, consistent with their
concerns for preservation of capital and liquidity. The portfolio
managers usually hold portfolio securities to maturity, but may sell
a particular security when they deem it advisable, such as when any
of the factors above materially changes."
The section entitled "PRINCIPAL RISKS OF INVESTING IN THE FUNDS - ALL FUNDS" on
page 6 of the prospectus should be deleted in its entirety and replaced with
the following:
"ALL FUNDS (EXCEPT AIM V.I. MONEY MARKET FUND)
The prices of foreign securities may be further affected by other
factors, including:
o 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.
o 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.
o 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.
o 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 in companies located in
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those countries to decline. Transaction costs are often higher in
developing countries and there may be delays in settlement
procedures.
ALL FUNDS
If the seller of a repurchase agreement in which the fund
invests defaults on its obligation or declares bankruptcy, the fund
may experience delays in selling the securities underlying the
repurchase agreement. As a result, the fund may incur losses arising
from decline in the value of those securities, reduced levels of
income and expenses of enforcing its rights.
The value of your shares could be adversely affected if
the computer systems used by the funds' investment advisor and the
funds' other service providers are unable to distinguish the year
2000 from the year 1900.
The funds' 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 funds invests."
The table located under the "FUND MANAGEMENT-PORTFOLIO MANAGERS: AIM V.I.
CAPITAL APPRECIATION FUND" section on page 15 of the prospectus should be
deleted in its entirety and replaced with the following:
"o David P. Barnard, Senior Portfolio Manager, who has been
responsible for the fund since 1993 and has been
associated with the advisor and/or its affiliates since
1982.
o Robert M. Kippes, 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.
o Christopher P. Perras, Portfolio Manager, who has been
responsible for the fund since 1999 and has been
associated with the advisor and/or its affiliates since
1999. From 1997 to 1999 Mr. Perras was an equity analyst
at Van Wagoner Capital Management. From 1995 to 1997 he
was an Associate Portfolio Manager at Van Kampen American
Capital Asset Management, Inc.
o Charles D. Scavone, Senior Portfolio Manager, who has been
responsible for the fund since 1998 and has been
associated with the advisor and/or its affiliates since
1996. From 1994 to 1996 he was an Associate Portfolio
Manager for Van Kampen American Capital Asset Management,
Inc.
o Kenneth A. Zschappel, Senior Portfolio Manager, who has
been responsible for the fund since 1999 and has been
associated with the advisor and/or its affiliates since
1990."
The table located under the "FUND MANAGEMENT-PORTFOLIO MANAGERS: AIM V.I.
DIVERSIFIED INCOME FUND" section on page 16 of the prospectus should be deleted
in its entirety and replaced with the following:
"o Robert G. Alley, Senior Portfolio Manager, who has been
responsible for the fund since 1993 and has been
associated with the advisor and/or its affiliates since
1992.
o Jan H. Friedli, Portfolio Manager, who has been
responsible for the fund since 1999 and has been
associated with the advisor and/or its affiliates since
1999. From 1997 to 1999, he was global fixed-income
Portfolio Manager for Nicholas-Applegate Capital
Management. From 1994 to 1997, he was international
fixed-income trader and analyst for Strong Capital
Management.
o Carolyn L. Gibbs, Senior Portfolio Manager, who has been
responsible for the fund since 1995 and has been
associated with the advisor and/or its affiliates since
1992.
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o Kevin E. Rogers, Senior Portfolio Manager, who has been
responsible for the fund since 1999 and has been
associated with the advisor and/or its affiliates since
1991."
The table located under the "FUND MANAGEMENT-PORTFOLIO MANAGERS: AIM V.I.
GLOBAL UTILITIES FUND" section on page 16 of the prospectus should be deleted
in its entirety and replaced with the following:
"o Robert G. Alley, Senior Portfolio Manager, who has been
responsible for the fund since 1994 and has been
associated with the advisor and/or its affiliates since
1992.
o Claude C. Cody IV, Senior Portfolio Manager, who has been
responsible for the fund since 1994 and has been
associated with the advisor and/or its affiliates since
1992.
o Carolyn L. Gibbs, Senior Portfolio Manager, who has been
responsible for the fund since 1998 and has been
associated with the advisor and/or its affiliates since
1992.
o Craig A. Smith, Senior Portfolio Manager, who has been
responsible for the fund since 1996 and has been
associated with the advisor and/or its affiliates since
1989.
o Meggan M. Walsh, Portfolio Manager, who has been
responsible for the fund since 1998 and has been
associated with the advisor and/or its affiliates since
1991."
The table located under the "FUND MANAGEMENT-PORTFOLIO MANAGERS: AIM V.I.
INTERNATIONAL EQUITY FUND" section on page 16 of the prospectus should be
deleted in its entirety and replaced with the following:
"o A. Dale Griffin III, 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.
o Jason T. Holzer, Portfolio Manager, who has been
responsible for the fund since 1999 and has been
associated with the advisor and/or its affiliates since
1996. From 1994 to 1996 he was an associate with JMB
Realty.
o Clas G. Olsson, Senior Portfolio Manager, who has been
responsible for the fund since 1997 and has been
associated with the advisor and/or its affiliates since
1994.
o Barrett K. Sides, Portfolio Manager, who has been
responsible for the fund since 1995 and has been
associated with the advisor and/or its affiliates since
1990."
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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 GROWTH AND 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. TELECOMMUNICATIONS FUND
AIM V.I. VALUE FUND
Supplement dated July 1, 1999
to Statement of Additional Information
dated May 3, 1999
The first paragraph under the "CERTAIN INVESTMENT STRATEGIES AND TECHNIQUES -
FOREIGN SECURITIES" section on page 19 of the Statement of Additional
Information should be deleted in its entirety and replaced with the following:
"To the extent consistent with their respective investment
objectives, each of the Funds may invest in foreign securities. It
is not anticipated that such foreign securities will constitute more
than: (i) 20% of the value of the total assets of the Balanced Fund,
the Capital Appreciation Fund, the Government Fund, the Growth Fund
and the Growth and Income Fund; (ii) 25% of the value of the total
assets of the Aggressive Growth Fund, the Capital Development Fund,
the High Yield Fund and the Value Fund; (iii) 50% of the value of
the total assets of the Diversified Income Fund and the Money Market
Fund (however, the Money Market Fund may only invest in foreign
securities denominated in U.S. dollars); (iv) 90% of the value of
the total assets of the Global Growth and Income Fund; (v) 80% of
the value of the total assets of the Global Utilities Fund; and (vi)
75% of the value of the total assets of the Telecommunications Fund.
The International Fund will invest at least 70% of its total assets
in foreign securities."
