SUPPLEMENT DATED AUGUST 4, 2000
TO THE PROSPECTUS FOR
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
DATED MAY 1, 2000
On page 15, under the Day-to-day Account Management section, replace with the
following:
Since July 2000 Scott D. Opsal, CFA. Mr. Opsal is Chief Investment Officer
of Invista Capital Management and has been with the
organization since 1993. He holds an MBA from the University
of Minnesota and BS from Drake University. He has earned the
right to use the Chartered Financial Analyst designation.
On page 17, under the Day-to-day Account Management section, add the following:
Since July 2000 Co-Manager: Kelly R. Alexander. Ms. Alexander joined Invista
Capital Management in 1992. Her duties include management
responsibility for nine fixed-income portfolios with
combined assets of more than $4.0 billion.
On page 24, under the Main Strategies section, the first two paragraphs should
be replaced as follows:
Under normal market conditions, the Account invests at least 65% of its total
assets in equity securities of companies with market capitalizations of $700
million or less at the time of investment. Under normal circumstances, the
Account's investment horizon for ownership of equity securities is one to two
years.
The Account invests in companies that the Sub-Advisor, Goldman, believes are
well managed businesses that have the potential to achieve high or improving
returns on capital and/or above average sustainable growth. Goldman invests in
companies that have value characteristics as well as those with growth
characteristics with no consistent preference between the two categories. Growth
stocks are considered to be those with potential for growth of capital and
earnings which is expected to be above average. Value stocks tend to have higher
yields and lower price to earnings (P/E) ratios than other stocks.
One page 25, under the Day-to-day Account Management section, replace with the
following:
Since June 2000 Melissa Brown, Vice President, Goldman. Ms. Brown joined the
firm as a senior portfolio manager in 1998. From 1984 to
1998, she was the director of Quantitative Equity Research
and served on the Investment Policy Committee at Prudential
Securities.
Since June 2000 Kent A. Clark, Managing Director, Goldman. Mr. Clark joined
Goldman as a portfolio manager in the Quantitative Equity
Management team in 1992.
Since June 2000 Robert C. Jones, Managing Director, Goldman. Mr. Jones
joined Goldman as a portfolio manager in 1989.
Since June 2000 Victor H. Pinter, Vice President, Goldman. Mr. Pinter joined
Goldman as a research analyst in 1990. He became a portfolio
manager in 1992.
