PORTFOLIO PARTNERS, INC.
SUPPLEMENT DATED DECEMBER 14, 2000
TO THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 2000
The information in this Supplement updates and amends certain information
contained in the May 1, 2000, Prospectus and Statement of Additional
Information of Portfolio Partners, Inc. (the "Fund"). You should read this
Supplement along with the Prospectus and Statement of Additional Information.
On November 14, 2000, shareholders of each Portfolio of the Fund approved five
proposals placed before them at a special meeting of the shareholders of the
Fund. Shareholders of each Portfolio approved a new Investment Advisory
Agreement between the Fund and Aetna Life Insurance and Annuity Company
("ALIAC") and a "Manager-of-Managers" arrangement for each Portfolio of the
Fund. The Manager-of-Managers arrangement allows ALIAC, with the approval of
the Fund's Board of Directors, to enter into sub-advisory agreements with new
investment management organizations or make material changes to existing
sub-advisory agreements without the delays and expenses of calling special
shareholder meetings. In addition, shareholders of the MFS Capital
Opportunities Portfolio, MFS Emerging Equities Portfolio and MFS Research
Growth Portfolio each approved a new sub-advisory agreement between ALIAC and
Massachusetts Financial Services Company, ("MFS"); shareholders of the Scudder
International Growth Portfolio approved a new sub-advisory agreement between
ALIAC and Scudder Kemper Investments, Inc.; and shareholders of the T. Rowe
Price Growth Equity Portfolio approved a new sub-advisory agreement between
ALIAC and T. Rowe Price Associates, Inc. The new advisory and sub-advisory
agreements were necessary because, as noted below, ING Groep N.V. ("ING") has
acquired the financial services and international business of Aetna Inc.,
including ALIAC. The fees payable to the adviser or sub-advisers under the new
advisory and sub-advisory agreements are the same as those payable under the
old agreements.
Effective November 17, 2000, ALIAC's broker-dealer subsidiary, Aetna Investment
Services, Inc. (which was subsequently converted to Aetna Investment Services,
LLC) ("AIS"), became the principal underwriter for the securities sold under
the prospectus. AIS, a Delaware limited liability company, is registered as a
broker-dealer with the Securities and Exchange Commission. AIS is also a member
of the National Association of Securities Dealers, Inc. and the Securities
Investor Protection Corporation. AIS' principal office is located at 151
Farmington Avenue, Hartford, Connecticut 06156. The new underwriting agreement
is identical to the old agreement, except for the effective date and AIS as the
Fund's new principal underwriter.
Effective December 1, 2000, John W. Ballen, President and Chief Investment
Officer of MFS, portfolio manager with MFS since 1984 and portfolio manager of
the MFS Emerging Equities Portfolio since its inception in 1997, will be joined
in the management of the MFS Emerging Equities Portfolio by Dale A. Dutile and
John E. Lathrop, both Vice Presidents of MFS who have been employed in the
investment management area of MFS since 1994, and David E. Sette-
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Ducati, also a Vice President of MFS, who has been employed in the investment
management area of MFS since 1995.
On December 13, 2000, ALIAC became an indirect wholly-owned subsidiary of ING.
ING is a global financial institution active in the fields of insurance,
banking and asset management. This change in ownership is not expected to
result in any change in the investment management of the Fund, or have any
affect on your investments in the Fund. In the future, you may begin to see the
use of the ING lion logo on our printed materials.
Effective January 1, 2001, Scudder Kemper Investments, Inc., sub-adviser to the
Scudder International Growth Portfolio (the "Portfolio"), will change its
legal, corporate name to Zurich Scudder Investments, Inc. The name change will
not result in any change in the investment management of the Portfolio, nor
will it result in any material changes (other than the name of the sub-adviser)
to the sub-advisory agreement between ALIAC and Scudder Kemper Investment,
Inc., previously approved by shareholders of the Portfolio.
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