INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF-Dynamics 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 ninth 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."
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The section of the above Portfolio's Prospectus entitled "Management" is amended
to add the following paragraph after the ninth 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 tenth 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 July 6, 1998.
