PORTFOLIO PARTNERS, INC.
Supplement dated August 7, 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. ("PPI"). You should read this
Supplement along with the Prospectus and Statement of Additional Information.
PPI's investment adviser and principal underwriter, Aetna Life Insurance and
Annuity Company ("ALIAC"), is an indirect wholly owned subsidiary of Aetna Inc.
("Aetna"). Aetna has entered into an agreement to sell certain of its
businesses, including ALIAC, to ING Groep N.V., an integrated financial
services provider.
Consummation of the transaction is subject to a number of contingencies,
including receipt of required shareholder, regulatory and other consents and
approvals and other closing conditions. Under the Investment Company Act of
1940, the transaction would result in a change of control of ALIAC and,
therefore, an assignment and termination of PPI's investment advisory and
underwriting agreements with ALIAC. Consequently, it is anticipated that ALIAC
will seek approval of new investment advisory and underwriting agreements from
the PPI Board of Directors and, if necessary, the shareholders of each
portfolio prior to the closing of the transaction. Aetna has said that its goal
is to close the transaction by the end of 2000.
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PORTFOLIO PARTNERS, INC.
151 FARMINGTON AVENUE
HARTFORD, CONNECTICUT 06156-8962
MFS CAPITAL OPPORTUNITIES PORTFOLIO
(FORMERLY MFS VALUE EQUITY PORTFOLIO)
MFS EMERGING EQUITIES PORTFOLIO
MFS RESEARCH GROWTH PORTFOLIO
SCUDDER INTERNATIONAL GROWTH PORTFOLIO
T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Supplement dated August 7, 2000 to the
Statement of Additional Information dated May 1, 2000
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND UNDER THE HEADING
"DESCRIPTION OF THE FUND AND ITS INVESTMENTS AND RISKS" SET FORTH ON PAGE 3 OF
THE STATEMENT OF ADDITIONAL INFORMATION:
GENERAL. Unless otherwise noted, whenever an investment policy or limitation
states a maximum percentage of a Portfolio's assets that may be invested in any
security or other asset, or sets forth a policy regarding quality standards,
such standard or percentage limitation will be determined immediately after and
as a result of the Portfolio's acquisition of such security or other asset,
except in the case of borrowing (or other activities that may be deemed to
result in the issuance of a "senior security" under the 1940 Act). Accordingly,
any subsequent change in values, net assets or other circumstances will not be
considered when determining whether the investment complies with the
Portfolio's investment policies and limitations. If the value of a Portfolio's
holdings of illiquid securities at any time exceeds the percentage limitation
applicable at the time of acquisition due to subsequent fluctuations in value
or other reasons, the Directors will consider what actions, if any, are
appropriate to maintain adequate liquidity. With respect to fundamental policy
number 7, industry classifications of domestic issuers for Scudder
International Growth are determined in accordance with the current Directory of
Companies Filing Annual Reports with the Securities and Exchange Commission.
Industry classifications of foreign issuers for this Portfolio are based on
data provided by Bloomberg L.P. and other industry data sources. All industry
classifications for T. Rowe Price Growth Equity, MFS Capital Opportunities, MFS
Emerging Equities and MFS Research Growth have been selected by T. Rowe Price
Associates, Inc. ("T. Rowe Price"), and Massachusetts Financial Services
Company ("MFS"), the sub-advisers for those Portfolios. T. Rowe Price and MFS
believe the industry characteristics they have selected are reasonable and not
so broad that the primary economic characteristics of the companies in a single
class are materially different. The industry classifications selected by T.
Rowe Price and MFS may be changed from time to time to reflect changes in the
marketplace.
