INVESCO DIVERSIFIED FUNDS, INC.
INVESCO Small Company Value Fund
Supplement to Prospectus Dated December 1, 1998
Effective May 13, 1999, the section of the Fund's Prospectus entitled "The Fund
And Its Management" is amended to (1) delete the second sentence of the sixth
paragraph and (2) substitute the following in its place:
Effective May 13, 1999, the management fee is calculated daily at the
following contractual annual rates: 0.75% on the first $500 million of the
Fund's average net assets; 0.65% on the next $500 million of the Fund's
average net assets; 0.55% on the Fund's average net assets from $1
billion; 0.45% on the Fund's average net assets from $2 billion; 0.40% on
the Fund's average net assets from $4 billion; 0.375% on the Fund's
average net assets from $6 billion; and 0.35% on the Fund's average net
assets from $8 billion. Prior to May 13, 1999, the advisory fee was
calculated daily at the annual rate of 0.75% of the Fund's average net
assets.
The section of the Fund's Prospectus entitled "Fund Services - Shareholder
Accounts" is amended to (1) delete the second and third sentence of the section
and (2) substitute the following in its place:
INVESCO no longer issues certificates. If you are selling shares
previously issued in certificate form, you need to include the
certificates along with your redemption/exchange request.
The chart in the Fund's Prospectus entitled "How To Sell Shares" is amended to
(1) delete the "Please Remember" paragraph of the "In Writing" section and (2)
substitute the following in its place:
INVESCO no longer issues paper certificates for shares. If the shares you
are selling shares represented by stock certificates, the certificates
must be sent to INVESCO before we can process your redemption.
Effective June 4, 1999, the Small Company Value Fund, pursuant to approval of
the shareholders of the Fund of a Plan of Reorganization and Termination at a
special meeting held May 20, 1999, will be merged into INVESCO Small Company
Growth Fund, a series of INVESCO Emerging Opportunity Funds, Inc.
The date of this Supplement is June 1, 1999.
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INVESCO DIVERSIFIED FUNDS, INC.
INVESCO Small Company Fund
Supplement to Statement of Additional Information
Dated December 1, 1998
Effective May 13, 1999, the section of the Company's Statement of Additional
Information ("SAI") entitled "The Fund and Its Management - Investment Advisory
Agreement" is amended to (1) delete the second sentence of the third paragraph
and (2) substitute the following paragraph in its place:
Effective May 13, 1999, the fee is contractual and is calculated daily at
the following annual rates: 0.75% on the first $500 million of the Fund's
average net assets; 0.65% on the next $500 million of the Fund's average
net assets; 0.55% on the Fund's average net assets from $1 billion; 0.45%
on the Fund's average net assets from $2 billion; 0.40% of the Fund's
average net assets from $4 billion; 0.375% of the Fund's average net
assets from $6 billion; and 0.35% of the Fund's average net assets from $8
billion. Prior to May 13, 1999, the advisory fee was calculated daily at
the annual rate of 0.75% of the Fund's average net assets.
Effective May 13, 1999, the section of the Company's SAI entitled "The Fund and
Its Management - Sub-Advisory Agreement" is amended to add the following after
the first sentence:
Effective May 13, 1999, the following contractual breakpoints are in
effect: 0.30% on the first $500 million of the Fund's average net assets;
0.26% on the next $500 million of the Fund's average net assets; 0.22% on
the Fund's average net assets from $1 billion; 0.18% on the Fund's average
net assets from $2 billion; 0.16% on the Fund's average net assets from $4
billion; 0.15% on the Fund's average net assets from $6 billion; and 0.14%
on the Fund's average net assets from $8 billion.
Effective May 13, 1999, the section of the Company's Statement of Additional
Information entitled "The Fund and Its Management - Administrative Services
Agreement" is amended to (1) delete the first sentence of the third paragraph
and (2) substitute the following in its place:
As full compensation for services provided under the Administrative
Services Agreement, the Fund pays a monthly fee to INVESCO consisting of a
base fee of $10,000 per year, plus an additional incremental fee computed
daily and paid monthly at an annual rate of 0.015% per year of the average
net assets of the Fund prior to May 13, 1999 and 0.045% per year of the
average net assets of the Fund effective May 13, 1999.
Effective June 4, 1999, INVESCO Small Company Value Fund, pursuant to approval
of the shareholders of the Fund of a Plan of Reorganization and Termination at a
special meeting held May 28, 1999, will be merged into INVESCO Small Company
Growth Fund, a series of INVESCO Emerging Opportunity Funds, Inc.
The date of this Supplement is June 1, 1999.
