INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF--Small Company Growth Portfolio
Supplement to Prospectus Dated May 1, 1998
The section of the above Portfolio's Prospectus entitled "Risk Factors" is
amended to add the following paragraph after the fourth paragraph:
Year 2000 Computer Issue. Due to the fact that many computer systems
in use today cannot recognize the year 2000, but will, unless corrected,
revert to 1900 or 1980 or cease to function at that time, the markets for
securities in which the Fund invests may be detrimentally affected by
computer failures throughout the financial services industry beginning
January 1, 2000. Improperly functioning trading systems may result in
settlement problems and liquidity issues. In addition, corporate and
governmental data processing errors may result in production issues for
individual companies and overall economic uncertainties. Earnings of
individual issuers will be affected by remediation costs, which may be
substantial. The Fund's investments may be adversely affected.
The section of the above Portfolio's Prospectus entitled "Management" is amended
to (1) delete the tenth paragraph, and (2) substitute the following paragraph in
its place:
The Company also has entered into an Administrative Services
Agreement with IFG dated February 28, 1998 (the "Administrative
Agreement"). IFG or such other companies, including affiliates of IFG,
that may have been selected by IFG and approved by the Company's board of
directors, perform certain administrative, record-keeping and internal
accounting services, including, without limitation, maintaining general
ledger and capital stock accounts, preparing a daily trial balance,
calculating net asset value daily, providing selected general ledger
reports, providing certain sub-accounting and record-keeping services for
shareholder accounts, preparation of prospectuses, proxy statements,
annual reports and similar documents for existing contract owners,
facilitation of purchases and redemptions requested by contract owners and
other contract owner services and communications. The Fund reimburses IFG
for its costs in providing, or assuring that Participating Insurance
Companies provide, these services in an amount up to $10,000 per year (the
"Base Fee"), plus 0.015% of the net assets of the Fund, plus, effective
July 6, 1998, an additional 0.25% of the gross new assets (new sales of
shares, exchanges into the Fund and reinvestment of dividends and capital
gain distributions) of the Fund (the "Incremental Fees"). IFG may pay all
or a portion of the Base Fee and the Incremental Fees to other companies
that assist in providing the services. IFG also is paid by the Company for
providing transfer agent services. See "Additional Information."
The section of the above Portfolio's Prospectus entitled "Management" is amended
to add the following paragraph after the tenth paragraph:
The management and custodial services provided to the Fund by IFG
and the Fund's custodian, and the services provided to shareholders by IDI
and IFG, depend on the continued functioning of their computer systems.
Many computer systems in use today cannot recognize the year 2000, but
will revert to 1900 or 1980 or will cease to function due to the manner in
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which dated were encoded and are calculated. That failure could have a
negative impact on the handling of the Fund's securities trades, its share
pricing and its account services. The Fund and its service provider have
been actively working on necessary changes to their computer systems to
deal with the year 2000 issue and expect that their systems will be
adapted before that date, but there can be no assurance that they will be
successful. Furthermore, services may be impaired at that time as a result
of the interaction of their systems with others' non-complying computer
systems.
The section of the above Portfolio's Prospectus entitled "Management" is amended
to (1) delete the third sentence of the eleventh paragraph, and (2) substitute
the following sentence in its place:
Certain Fund expenses are absorbed voluntarily by IFG pursuant to a
commitment to the Company to limit the Fund's annual expenses to no more
than 1.00% of the Fund's average net assets prior to July 6, 1998 and to
no more than 1.25% of the Fund's average net assets effective July 6,
1998.
The date of this Supplement is July 6, 1998.
