AMERICAN GENERAL SERIES PORTFOLIO COMPANY 2
CLASS A SHARES
AND
CLASS B SHARES
SUPPLEMENT DATED JANUARY 21, 2000
TO PROSPECTUS DATED NOVEMBER 2, 1998
(AS SUPPLEMENTED THROUGH APRIL 20, 1999)
For All Funds:
This Supplement incorporates certain
information provided in a previous
supplement dated November 15, 1999.
The "Investment Objective" section included
in the "Fact Sheet" should reflect that the
investment objective may be changed by the
Trustees without shareholder approval.
Craig R. Rodby, John A. Graf and Thomas L.
West, Jr. have resigned as Trustees and
Officers of the Series Company. R. Miller
Upton has resigned as Trustee of the Series
Company. Effective January 18, 2000, the
size of the Board was reset at 10 (eight of
the Trustees are independent and two are
employees of VALIC or its affiliates).
Effective July 27, 1999, Alice T. Kane and
Kent E. Barrett were elected by the Board of
Trustees to serve as trustees and President
and Executive Vice President, respectively,
of the Series Company.
Effective immediately, all inquiries
regarding the Prospectus should be directed,
in writing, to American General Fund Group
Customer Service, P.O. Box 219502, Kansas
City, Missouri 64121-6502, or by calling 1-
877-999-2434.
Effective immediately, under "General
Redemption Policies," on page 82 of the
Prospectus, the amount of a redemption
request which must be accompanied by a
signature guarantee has been lowered from an
amount in excess of $50,000 to an amount in
excess of $25,000. As always, a signature
guarantee will be required for a redemption
request of any amount, where the redemption
proceeds are to be sent somewhere other than
the address of record on the Series
Company's books or if the current address of
record has not been on the books for 60
days.
Under "Systematic Withdrawals," on page 81
of the Prospectus, if you own Class B Shares
you may redeem up to 12% annually of your
account value without incurring a CDSC,
which replaces the provision that you may
only redeem up to 12% annually of your
initial account without incurring a CDSC.
As always, the minimum amount of a
withdrawal under the Systematic Withdrawal
program is $50 and the minimum account size
is $5,000.
Effective May 1, 1999, the Funds'
distributor was changed from VALIC
Investment Services Company (VISCO) to A.G.
Distributors, Inc., an affiliate of VALIC.
Effective July 14, 1999, A.G. Distributors,
Inc. changed its name to American General
Distributors, Inc. All references to VISCO
in this Prospectus should instead refer to
American General Distributors, Inc.
Fund shares are now sold to the public by
broker/dealers separate from the
Distributor, although one is an affiliate.
The Distributor remains the Series Company's
principal underwriter. The "Purchasing and
Selling Fund Shares" section of this
Prospectus should now reflect that sales
charges on Class A shares are allocated
between the Distributor and the selling
broker/dealer. Similarly, any reallowance
of sales charge shown in the sales charge
tables should now reflect that it is
reallowed to selling broker/dealers. The
Distributor may, in its discretion, reallow
up to 100% of any sales charge on Class A
shares. Also, on Class B shares, the 4.00%
commission paid at the time of purchase is
now paid to the selling broker/dealer, as is
the service fee under the Distribution and
Service Plan.
Insert on page 81 above "How to Sell
(Redeem) Shares":
Automated Clearing House ("ACH")
Transactions
You may choose to buy or sell shares at any
time with our ACH service. If your bank is
a member of ACH, you can call customer
service at 1-877-999-2434 to have a minimum
of $50 transferred to or from your American
General Fund Group account. Transaction
requests must be received by 3:00 p.m.
Central Time. You may be charged $25 for
any returned ACH transactions, such as
returns for insufficient funds. Automatic
ACH instructions may be deleted from your
account if you have three or more returned
transactions.
For Specific Funds only:
American General International Growth Fund
The "Fund Investments" guidelines included
in the "Fact Sheet" should reflect that at
least 65% of the Fund's total assets should
be invested in foreign equity securities
rather than 85% of total assets. The
information with respect to the performance
of the Templeton International Fund should
be deleted in its entirety.
American General International Value Fund
The "Fund Investments" guidelines included
in the "Fact Sheet" should reflect that at
least 65% of the Fund's total assets should
be invested in foreign securities rather
than 80% of total assets.
American General Stock Index Fund, American
General Mid Cap Index Fund, American General
Small Cap Index Fund and American General
Small Cap Value Fund
On July 27, 1999, the Board of Trustees of
the Series Company approved the termination
of Bankers Trust as sub-adviser of each
Fund. VALIC re-assumed direct management of
the investment portfolio for the American
General Stock Index Fund (the "Stock Index
Fund"), the American General Mid Cap Index
Fund (the "Mid Cap Index Fund"), and the
American General Small Cap Index Fund (the
"Small Cap Index Fund") on September 1,
1999. With respect to the American General
Small Cap Value Fund, VALIC re-assumed
direct management of that portion of the
portfolio managed by Bankers Trust on
September 1, 1999. Consequently, the
section entitled "Portfolio Manager" in the
Fund's "Fact Sheet" as well as the
performance information of other investment
companies or private accounts is deleted in
its entirety for the Stock Index Fund, the
Mid Cap Index Fund and the Small Cap Index
Fund.
American General Small Cap Value Fund
Under the caption "Portfolio Manager" the
disclosure should be deleted in its entirety
and replaced with the following:
Investment decisions for the actively
managed portion of the Fund are made by a
team at Fiduciary Management Associates,
Inc. that consists of portfolio managers
and analysts who specialize their research
by sectors. Kathryn Vorisek is the lead
portfolio manager. The team meets
regularly to review portfolio holdings and
to discuss purchase and sale activity.
Investment decisions for the passively
managed portion of the Fund are made by a
team at VALIC of portfolio managers,
assistant portfolio managers and analysts
organized for that purpose. The teams
meet regularly to review portfolio
holdings and discuss purchase and sale
activity.
American General Socially Responsible Fund
The section entitled "Portfolio Manager" in
the Fund's "Fact Sheet" is replaced in its
entirety with the following:
Investment decisions are made by a team of
portfolio managers, assistant portfolio
managers and analysts organized for that
purpose. The team meets regularly to
review portfolio holdings and discuss
purchase and sale activity.
American General Conservative Growth
Lifestyle Fund, American General Growth
Lifestyle Fund and American General Moderate
Growth Lifestyle Fund
Under the caption "Portfolio Manager" the
disclosure should be deleted in its entirety
and replaced with the following:
Investment decisions for the passively
managed portion of the Fund are made by a
team at VALIC of portfolio managers,
assistant portfolio managers and analysts
organized for that purpose. The teams
meet regularly to review portfolio
holdings and discuss purchase and sale
activity.
The section in the Prospectus captioned
"Investment Strategy" should be deleted in
its entirety and replaced with the
following:
American General Conservative Growth
Lifestyle Fund
Asset allocation among the equity
securities of international companies,
large capitalization companies, medium
capitalization companies, small
capitalization companies and bonds is the
most critical investment decision that you
make as an investor. Selecting the
appropriate combination should be based on
your personal investment goals, time
horizons and risk tolerance. The chart
below reflects the projected asset
allocation ranges for this Fund.
International Equity Securities 5%-15%
Small
Capitalization
Equity
Securities 5%-15%
Medium Capitalization Equity Securities 5%-15%
Large Capitalization Equity Securities 25%-35%
Bonds 30%-50%
This Fund is managed so that it can serve
as a complete investment program for you
or as a core part of your larger
portfolio. The Underlying Funds have been
selected to represent a reasonable
spectrum of investment options for the
Fund. We have based the target investment
percentages for the Fund on the degree to
which we believe the Underlying Funds, in
combination, to be appropriate for the
Fund's investment objective. We may change
the asset allocation ranges, the
particular Underlying Funds in which the
Fund may invest and the target investment
percentages set from time to time by
VALIC, subject to the supervision of the
Series Company's Board of Trustees.
We intend to allocate the Fund's assets
among the Underlying Funds as follows:
American General International
Value Fund 5%
American General International Growth
Fund 5%
American General Small Cap Value Fund 5%
American General Small Cap Growth Fund 5%
American General Mid Cap Value Fund 5%
American General Mid Cap Growth Fund 5%
American General Large Cap Growth Fund 15%
American General Large Cap Value Fund 15%
American General Domestic Bond Fund
40%
American General Growth Lifestyle Fund
Asset allocation among the equity
securities of international companies,
large capitalization companies, medium
capitalization companies, small
capitalization companies and bonds is the
most critical investment decision that you
make as an investor. Selecting the
appropriate combination should be based on
your personal investment goals, time
horizons and risk tolerance. The chart
below reflects the projected asset
allocation ranges for this Fund.
International Equity Securities 25%-35%
Small Capitalization Equity Securities 15%-25%
Medium Capitalization Equity Securities10%-20%
Large Capitalization Equity Securities 20%-30%
Bonds 5%-15%
This Fund is managed so that it can serve
as a complete investment program for you
or as a core part of your larger
portfolio. The Underlying Funds have been
selected to represent a reasonable
spectrum of investment options for the
Fund. We have based the target investment
percentages for the Fund on the degree to
which we believe the Underlying Funds, in
combination, to be appropriate for the
Fund's investment objective. We may change
the asset allocation ranges, the
particular Underlying Funds in which the
Fund may invest and the target investment
percentages set from time to time by
VALIC, subject to the supervision of the
Series Company's Board of Trustees.
We intend to allocate the Fund's assets
among the Underlying Funds as follows:
American General International Value
Fund15%
American General International Growth
Fund15%
American General Small Cap Value Fund 10%
American General Small Cap Growth Fund 10%
American General Mid Cap Value Fund 8%
American General Mid Cap Growth Fund 7%
American General Large Cap Growth Fund 13%
American General Large Cap Value Fund 12%
American General Domestic Bond Fund 10%
American General Moderate Growth Lifestyle
Fund
Asset allocation among the equity
securities of international companies,
large capitalization companies, medium
capitalization companies, small
capitalization companies and bonds is the
most critical investment decision that
you make as an investor. Selecting the
appropriate combination should be based
on your personal investment goals, time
horizons and risk tolerance. The chart
below reflects the projected asset
allocation ranges for this Fund.
International Equity Securities 10%-20%
Small Capitalization Equity Securities 10%-20%
Medium Capitalization Equity Securities 10%-20%
Large Capitalization Equity Securities 25%-35%
Bonds 20%-30%
This Fund is managed so that it can serve
as a complete investment program for you
or as a core part of your larger
portfolio. The Underlying Funds have been
selected to represent a reasonable
spectrum of investment options for the
Fund. We have based the target investment
percentages for the Fund on the degree to
which we believe the Underlying Funds, in
combination, to be appropriate for the
Fund's investment objective. We may change
the asset allocation ranges, the
particular Underlying Funds in which the
Fund may invest and the target investment
percentages set from time to time by
VALIC, subject to the supervision of the
Series Company's Board of Trustees.
We intend to allocate the Fund's assets
among the Underlying Funds as follows:
American General International Value Fund 8%
American General International Growth
Fund 7%
American General Small Cap Value Fund 8%
American General Small Cap Growth Fund 7%
American General Mid Cap Value Fund 8%
American General Mid Cap Growth Fund 7%
American General Large Cap Growth Fund 15%
American General Large Cap Value Fund 15%
American General Domestic Bond Fund 25%
VA 10856-E
AMERICAN GENERAL SERIES PORTFOLIO COMPANY 2
INSTITUTIONAL CLASS I
AND
INSTITUTIONAL CLASS II
SUPPLEMENT DATED JANUARY 21, 2000
TO PROSPECTUS DATED NOVEMBER 2, 1998
For All Funds:
This Supplement incorporates certain
information provided in a previous
supplement dated November 15, 1999.
The "Investment Objective" section included
in the "Fact Sheet" should reflect that the
investment objective may be changed by the
Trustees without shareholder approval.
Craig R. Rodby, John A. Graf and Thomas L.
West, Jr. have resigned as Trustees and
Officers of the Series Company. R. Miller
Upton has resigned as Trustee of the Series
Company. Effective January 18, 2000, the
size of the Board was reset at 10 (eight of
the Trustees are independent and two are
employees of VALIC or its affiliates).
Effective July 27, 1999, Alice T. Kane and
Kent E. Barrett were elected by the Board of
Trustees to serve as trustees and President
and Executive Vice President, respectively,
of the Series Company.
For Specific Funds only:
American General International Growth Fund
The "Fund Investments" guidelines included
in the "Fact Sheet" should reflect that at
least 65% of the Fund's total assets should
be invested in foreign equity securities
rather than 85% of total assets. The
information with respect to the performance
of the Templeton International Fund should
be deleted in its entirety.
American General International Value Fund
The "Fund Investments" guidelines included
in the "Fact Sheet" should reflect that at
least 65% of the Fund's total assets should
be invested in foreign securities rather
than 80% of total assets.
American General Small Cap Value Fund
On July 27, 1999, the Board of Trustees of
the Series Company approved the termination
of Bankers Trust as sub-adviser of the Fund.
VALIC re-assumed direct management of that
portion of the portfolio managed by Bankers
Trust on September 1, 1999.
Under the caption "Portfolio Manager" the
disclosure should be deleted in its entirety
and replaced with the following:
Investment decisions for the actively
managed portion of the Fund are made by a
team at Fiduciary Management Associates,
Inc. that consists of portfolio managers
and analysts who specialize their research
by sectors. Kathryn Vorisek is the lead
portfolio manager. The team meets
regularly to review portfolio holdings and
to discuss purchase and sale activity.
Investment decisions for the passively
managed portion of the Fund are made by a
team at VALIC of portfolio managers,
assistant portfolio managers and analysts
organized for that purpose. The teams
meet regularly to review portfolio
holdings and discuss purchase and sale
activity.
American General Socially Responsible Fund
The section entitled "Portfolio Manager" in
the Fund's "Fact Sheet" is replaced in its
entirety with the following:
Investment decisions are made by a team of
portfolio managers, assistant portfolio
managers and analysts organized for that
purpose. The team meets regularly to
review portfolio holdings and discuss
purchase and sale activity.
American General Conservative Growth
Lifestyle Fund, American General Growth
Lifestyle Fund and American General Moderate
Growth Lifestyle Fund
Under the caption "Portfolio Manager" the
disclosure should be deleted in its entirety
and replaced with the following:
Investment decisions for the passively
managed portion of the Fund are made by a
team at VALIC of portfolio managers,
assistant portfolio managers and analysts
organized for that purpose. The teams
meet regularly to review portfolio
holdings and discuss purchase and sale
activity.
The section in the Prospectus captioned
"Investment Strategy" should be deleted in
its entirety and replaced with the
following:
American General Conservative Growth
Lifestyle Fund
Asset allocation among the equity
securities of international companies,
large capitalization companies, medium
capitalization companies, small
capitalization companies and bonds is the
most critical investment decision that you
make as an investor. Selecting the
appropriate combination should be based on
your personal investment goals, time
horizons and risk tolerance. The chart
below reflects the projected asset
allocation ranges for this Fund.
International Equity Securities 5%-15%
Small Capitalization Equity Securities %-15%
Medium Capitalization Equity Securities 5%-15%
Large Capitalization Equity Securities 25%-35%
Bonds 30%-50%
This Fund is managed so that it can serve
as a complete investment program for you
or as a core part of your larger
portfolio. The Underlying Funds have been
selected to represent a reasonable
spectrum of investment options for the
Fund. We have based the target investment
percentages for the Fund on the degree to
which we believe the Underlying Funds, in
combination, to be appropriate for the
Fund's investment objective. We may change
the asset allocation ranges, the
particular Underlying Funds in which the
Fund may invest and the target investment
percentages set from time to time by
VALIC, subject to the supervision of the
Series Company's Board of Trustees.
We intend to allocate the Fund's assets
among the Underlying Funds as follows:
American General International Value
Fund 5%
American General International Growth
Fund 5%
American General Small Cap Value Fund 5%
American General Small Cap Growth Fund 5%
American General Mid Cap Value Fund 5%
American General Mid Cap Growth Fund 5%
American General Large Cap Growth Fund 15%
American General Large Cap Value Fund 15%
American General Domestic Bond Fund 40%
American General Growth Lifestyle Fund
Asset allocation among the equity
securities of international companies,
large capitalization companies, medium
capitalization companies, small
capitalization companies and bonds is the
most critical investment decision that you
make as an investor. Selecting the
appropriate combination should be based on
your personal investment goals, time
horizons and risk tolerance. The chart
below reflects the projected asset
allocation ranges for this Fund.
International Equity Securities 25%-35%
Small Capitalization Equity Securities 15%-25%
Medium Capitalization Equity Securities 10%-20%
Large Capitalization Equity Securities 20%-30%
Bonds 5%-15%
This Fund is managed so that it can serve
as a complete investment program for you
or as a core part of your larger
portfolio. The Underlying Funds have been
selected to represent a reasonable
spectrum of investment options for the
Fund. We have based the target investment
percentages for the Fund on the degree to
which we believe the Underlying Funds, in
combination, to be appropriate for the
Fund's investment objective. We may change
the asset allocation ranges, the
particular Underlying Funds in which the
Fund may invest and the target investment
percentages set from time to time by
VALIC, subject to the supervision of the
Series Company's Board of Trustees.
We intend to allocate the Fund's assets
among the Underlying Funds as follows:
American General International Value
Fund 15%
American General International Growth
Fund 15%
American General Small Cap Value Fund 10%
American General Small Cap Growth Fund 10%
American General Mid Cap Value Fund 8%
American General Mid Cap Growth Fund 7%
American General Large Cap Growth Fund 13%
American General Large Cap Value Fund 12%
American General Domestic Bond Fund 10%
American General Moderate Growth Lifestyle
Fund
Asset allocation among the equity
securities of international companies,
large capitalization companies, medium
capitalization companies, small
capitalization companies and bonds is the
most critical investment decision that
you make as an investor. Selecting the
appropriate combination should be based
on your personal investment goals, time
horizons and risk tolerance. The chart
below reflects the projected asset
allocation ranges for this Fund.
International Equity Securities 10%-20%
Small Capitalization Equity Securities 10%-20%
Medium Capitalization Equity Securities 10%-20%
Large Capitalization Equity Securities 25%-35%
Bonds 20%-30%
This Fund is managed so that it can serve
as a complete investment program for you
or as a core part of your larger
portfolio. The Underlying Funds have been
selected to represent a reasonable
spectrum of investment options for the
Fund. We have based the target investment
percentages for the Fund on the degree to
which we believe the Underlying Funds, in
combination, to be appropriate for the
Fund's investment objective. We may change
the asset allocation ranges, the
particular Underlying Funds in which the
Fund may invest and the target investment
percentages set from time to time by
VALIC, subject to the supervision of the
Series Company's Board of Trustees.
We intend to allocate the Fund's assets
among the Underlying Funds as follows:
American General International Value Fund 8%
American General International Growth
Fund 7%
American General Small Cap Value Fund 8%
American General Small Cap Growth Fund 7%
American General Mid Cap Value Fund 8%
American General Mid Cap Growth Fund 7%
American General Large Cap Growth Fund 15%
American General Large Cap Value Fund 15%
American General Domestic Bond Fund 25%
VA 10856-I/IIG
