INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF-Total Return 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 second 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"). Pursuant to 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 Company 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 gains 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 a fee 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 which dates were encoded and are
calculated. That failure could have a negative impact on the handling
of the Fund's securitie 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 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.
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The section of the above Portfolio's Prospectus entitled "Management" is amended
to (1) delete the eleventh paragraph, and (2) substitute the following paragraph
in its place:
The Fund's expenses, which are accrued daily, are generally
deducted from its total income before dividends are paid. Total
expenses of the Fund (prior to expense offset arrangements) for the
fiscal year ended December 31, 1997, including investment advisory
fees (but excluding brokerage commissions, which are a cost of
acquiring securities), amounted to 0.92% of the Fund's average net
assets. 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 0.90% of the Fund's average net assets prior to July 6,
1998 and to no more than 1.15% of the Fund's average net assets
effective July 6, 1998. This commitment may be changed following
consultation with the Company's board of directors. If such a
voluntary expense limit were not in effect, the total operating
expenses, as a percentage of the Fund's average net assets for the
fiscal year ended December 31, 1997, would have been 1.10%
The date of this Supplement is October 7, 1998.