INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - Industrial Income Fund
Supplement to above Portfolio's 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 "Risk Factors: Foreign
Securities" is amended to add the following paragraphs after the fourth
paragraph:
Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,
The Netherlands, Portugal and Spain are presently members of the European
Economic and Monetary Union (the "EMU"). EMU intends to establish a common
European currency for EMU countries which will be known as the "euro." Each
participating country presently plans to adopt the euro as its currency on
January 1, 1999. The old national currencies will be sub-currencies of the
euro until July 1, 2002, at which time the old currencies will disappear
entirely. Other European countries may adopt the euro in the future.
The planned introduction of the euro presents some uncertainties and
possible risks, including whether the payment and operational systems of
banks and other financial institutions will be ready by January 1, 1999;
whether exchange rates for existing currencies and the euro will be
adequately established; and whether suitable clearing and settlement systems
for the euro will be in operation. These and other factors may cause market
disruptions before or after January 1, 1999 and could adversely affect the
value of securities held by the Fund.
The section of the above Portfolio's Prospectus entitled "Management" is
amended to (1) delete the eighth 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, recordkeeping
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 recordkeeping
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
<PAGE>
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 eighth 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 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 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 ninth 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 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.
The date of this Supplement is October 12, 1998.
