AMERICAN GENERAL SERIES PORTFOLIO COMPANY 3
("AGSPC 3")
SUPPLEMENT DATED MAY 3, 2000
TO PROSPECTUS DATED JANUARY 3, 2000
(as revised January 19, 2000)
Fund Name Change
In order to more accurately reflect the risk
level, the Growth Lifestyle Fund has been
renamed to the Aggressive Growth Lifestyle
Fund, effective immediately. Therefore, all
references to the Growth Lifestyle Fund in
the AGSPC 3 prospectus shall be changed to
the Aggressive Growth Lifestyle Fund.
Aggressive Growth Lifestyle Fund,
Conservative Growth Lifestyle Fund, and
Moderate Growth Lifestyle Fund:
Investment Strategy
Until now, the AGSPC 3 Lifestyle Funds
invested solely in different portfolios of
AGSPC 3. Effective immediately, the
Lifestyle Funds will also be able to invest
in the Series Company Funds of American
General Series Portfolio Company ("AGSPC").
AGPSC and AGSPC 3 are related investment
companies for purposes of investment and
investors services, and VALIC serves as
investment adviser to both, although each
offers a unique selection of mutual funds.
Thus, the Underlying Funds in which the
Lifestyle Funds invest shall be chosen from
the variety offered by both AGSPC and AGSPC
3, in accordance with the projected asset
allocation ranges for each particular
Lifestyle Fund. These asset allocation
ranges have been revised and are shown
below:
Asset Allocation Ranges for the Aggressive
Growth Fund:
International Equity Securities 15% - 35%
Domestic Equity Securities 60% - 80%
Bonds 5% - 15%
Asset Allocation Ranges for the Conservative
Growth Fund:
International Equity Securities 5% - 15%
Domestic Equity Securities 20% - 50%
Bonds 45% - 65%
Asset Allocation Ranges for the Moderate
Growth Fund:
International Equity Securities 10% - 20%
Domestic Equity Securities 35% - 65%
Bonds 25% - 45%
Benchmark Information
Each Lifestyle Fund currently compares its
performance to a blended benchmark,
calculated by including the pro rata portion
of the respective indices for each of the
Underlying Funds, and the S&P 500r Index.
In order to simplify calculation and reflect
a collective benchmark which is more
representative of the investment ranges and
focus on equities, the benchmark for each
Lifestyle Fund has been changed to a
combination of the Wilshire 5000, Morgan
Stanley Capital Internationalr Europe,
Australasia, Far East ("MSCI EAFE") Index,
and Lehman Brothers Aggregate Index.
Page 34:
Replace the second paragraph under J.P.
Morgan Investment Management, Inc. with the
following :
Investment decisions are made by a team that
consists of portfolio managers and analysts.
The team meets regularly to review portfolio
holdings and to discuss purchase and sale
activity.
VA 10832-C
