AETNA VARIABLE FUND D/B/A
AETNA GROWTH AND INCOME VP
AETNA VARIABLE ENCORE FUND D/B/A
AETNA MONEY MARKET VP
AETNA INCOME SHARES D/B/A
AETNA BOND VP
AETNA BALANCED VP, INC.
AETNA GENERATION PORTFOLIOS, INC.
AETNA VARIABLE PORTFOLIOS, INC.
Supplement dated December 14, 2000
THE INFORMATION BELOW SUPPLEMENTS THE INFORMATION CONTAINED IN THE AETNA
VARIABLE FUND D/B/A AETNA GROWTH AND INCOME VP PROSPECTUS, AETNA VARIABLE ENCORE
FUND D/B/A AETNA MONEY MARKET VP PROSPECTUS, AETNA INCOME SHARES D/B/A AETNA
BOND VP PROSPECTUS, AETNA BALANCED VP, INC. PROSPECTUS, AETNA GENERATION
PORTFOLIOS, INC. PROSPECTUS AND AETNA VARIABLE PORTFOLIOS, INC. PROSPECTUS, EACH
DATED MAY 1, 2000. THIS SUPPLEMENT SHOULD BE READ WITH EACH PROSPECTUS AND
SUPERSEDES ANY PREVIOUSLY ISSUED SUPPLEMENTS TO THOSE PROSPECTUSES.
On December 13, 2000, Aetna Inc., the indirect parent company of Aeltus
Investment Management, Inc. (Aeltus), the investment adviser to the Funds and
Portfolios, and Aetna Investment Services, LLC (AIS), each Fund's principal
underwriter, sold its financial services and international businesses, including
Aeltus and AIS, to ING Groep N.V. (ING). ING is a global financial institution
active in the fields of insurance, banking, and asset management in more than 65
countries, with almost 100,000 employees.
Under the provisions of the Funds' and Portfolios' investment advisory
agreements and, in the case of Aetna Technology VP, the subadvisory agreement,
those agreements may be deemed to have terminated automatically at the time of
the closing of the transaction. As a result, the Boards of Trustees/Directors
and the shareholders of the Funds and Portfolios approved new advisory
agreements for the Funds and Portfolios and a new subadvisory agreement for
Aetna Technology VP, each of which took effect immediately after the closing of
the transaction. Because the transaction also may have caused the termination of
the underwriting agreements with AIS, the Boards approved new underwriting
agreements to take effect immediately after the closing of the transaction. Each
agreement is effective for an initial term ending on December 31, 2001.
<PAGE>
AETNA VARIABLE FUND D/B/A
AETNA GROWTH AND INCOME VP
AETNA VARIABLE ENCORE FUND D/B/A
AETNA MONEY MARKET VP
AETNA INCOME SHARES D/B/A
AETNA BOND VP
AETNA BALANCED VP, INC.
AETNA GENERATION PORTFOLIOS, INC.
AETNA VARIABLE PORTFOLIOS, INC.
Supplement dated December 14, 2000
THE INFORMATION BELOW SUPPLEMENTS THE INFORMATION CONTAINED IN THE STATEMENT OF
ADDITIONAL INFORMATION ("STATEMENT") DATED MAY 1, 2000. THIS SUPPLEMENT SHOULD
BE READ WITH THE STATEMENT AND SUPERSEDES ANY PREVIOUSLY ISSUED SUPPLEMENT.
On December 13, 2000, Aetna Inc., the indirect parent company of Aeltus
Investment Management, Inc. (Aeltus), the investment adviser to the Funds and
Portfolios, and Aetna Investment Services, LLC (AIS), each Fund's principal
underwriter, sold its financial services and international businesses, including
Aeltus and AIS, to ING Groep N.V. (ING). ING is a global financial institution
active in the fields of insurance, banking, and asset management in more than 65
countries, with almost 100,000 employees.
Under the provisions of the Funds' and Portfolios' investment advisory
agreements and, in the case of Aetna Technology VP, the subadvisory agreement,
those agreements may be deemed to have terminated automatically at the time of
the closing of the transaction. As a result, the Boards of Trustees/Directors
and the shareholders of the Funds and Portfolios approved new advisory
agreements for the Funds and Portfolios and a new subadvisory agreement for
Aetna Technology VP, each of which took effect immediately after the closing of
the transaction. Because the transaction also may have caused the termination of
the underwriting agreements with AIS, the Boards approved new underwriting
agreements to take effect immediately after the closing of the transaction. Each
agreement is effective for an initial term ending on December 31, 2001. The
principal office of AIS, which was reorganized as a Delaware limited liability
company in November 2000, is located at 151 Farmington Avenue, Hartford,
Connecticut 06156.
Shares of the Funds and Portfolios are offered on a continuous basis. As
principal underwriter for each Fund, AIS has agreed to use its best efforts to
distribute the shares of each Fund or Portfolio thereof.
<PAGE>
The following replaces the biographical information in the section entitled
"Trustees and Officers" on pages 24 through 26 of the Statement:
<TABLE>
--------------------------------- ------------------------------ ---------------------------------------------------------------
<CAPTION>
PRINCIPAL OCCUPATION DURING PAST FIVE YEARS (AND
NAME, POSITION(S) HELD POSITIONS HELD WITH AFFILIATED PERSONS OR PRINCIPAL
ADDRESS AND AGE WITH EACH FUND UNDERWRITERS OF THE FUND)
--------------------------------- ------------------------------ ---------------------------------------------------------------
<S> <C> <C>
J. Scott Fox* Trustee/Director and Director, Managing Director, Chief Operating Officer, Chief
10 State House Square President Financial Officer, Aeltus Investment Management, Inc., April
Hartford, Connecticut (Principal Executive Officer) 1994 to present; Senior Vice President - Operations, Aetna
Age 45 Life Insurance and Annuity Company, March 1997 to December
1997.
--------------------------------- ------------------------------ ---------------------------------------------------------------
Wayne F. Baltzer Vice President Vice President, Aeltus Investment Management, Inc., November
10 State House Square 2000 to present: Vice President, Aeltus Capital, Inc., May
Hartford, Connecticut 1998 to present; Vice President, Aetna Investment Services,
Age 57 Inc., July 1993 to May 1998.
--------------------------------- ------------------------------ ---------------------------------------------------------------
Daniel E. Burton Secretary Assistant General Counsel, July 2000 to present and Assistant
10 State House Square Secretary, September 1998 to present, Aeltus Investment
Hartford, Connecticut Management, Inc.; Assistant General Counsel, July 2000 to
Age 33 present, and Assistant Secretary, October 1998 to present,
Aeltus Capital, Inc.; Counsel, Aetna Financial Services,
September 1997 to present; Attorney, Securities and Exchange
Commission, August 1996 to August 1997; Associate, Kirkpatrick
& Lockhart LLP, September 1992 to August 1996.
--------------------------------- ------------------------------ ---------------------------------------------------------------
Albert E. DePrince, Jr. Trustee/Director Director, Business and Economic Research Center, 1999 to
3029 St. Johns Drive present; Professor of Economics and Finance, Middle Tennessee
Murfreesboro, Tennessee State University, 1991 to present.
Age 59
--------------------------------- ------------------------------ ---------------------------------------------------------------
Stephanie A. DeSisto Vice President, Vice President, Mutual Fund Accounting, Aeltus Investment
10 State House Square Treasurer and Chief Management, Inc., November 1995 to present.
Hartford, Connecticut Financial Officer (Principal
Age 47 Financial and Accounting
Officer)
--------------------------------- ------------------------------ ---------------------------------------------------------------
Maria T. Fighetti Trustee/Director Associate Commissioner for Contract Management (1996 to
325 Piermont Road present), Manager/Attorney (1973 to 1996), Health Services,
Closter, New Jersey New York City Department of Mental Health, Mental Retardation
Age 57 and Alcohol Services.
--------------------------------- ------------------------------ ---------------------------------------------------------------
David L. Grove Trustee/Director Private Investor; Economic/Financial Consultant, December
5 The Knoll 1985 to present.
Armonk, New York
Age 82
--------------------------------- ------------------------------ ---------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
--------------------------------- ------------------------------ ---------------------------------------------------------------
<CAPTION>
PRINCIPAL OCCUPATION DURING PAST FIVE YEARS (AND
NAME, POSITION(S) HELD POSITIONS HELD WITH AFFILIATED PERSONS OR PRINCIPAL
ADDRESS AND AGE WITH EACH FUND UNDERWRITERS OF THE FUND)
--------------------------------- ------------------------------ ---------------------------------------------------------------
<S> <C> <C>
John Y. Kim* Trustee/Director Director, President, Chief Executive Officer, Chief
10 State House Square Investment Officer, Aeltus Investment Management, Inc.,
Hartford, Connecticut December 1995 to present; President, Aetna Life Insurance and
Age 40 Annuity Company, May 2000 to September 2000; Chief Investment
Officer, Aetna Life Insurance and Annuity Company, May 2000 to
present; Director, Aetna Life Insurance and Annuity Company,
February 1995 to September 2000; Senior Vice President, Aetna
Life Insurance and Annuity Company, September 1994 to May 2000
and September 2000 to present.
--------------------------------- ------------------------------ ---------------------------------------------------------------
Sidney Koch Trustee/Director Financial Adviser, self-employed, January 1993 to present.
455 East 86th Street
New York, New York
Age 65
--------------------------------- ------------------------------ ---------------------------------------------------------------
Frank Litwin Vice President Managing Director, Aeltus Investment Management, Inc., August
10 State House Square 1997 to present; Vice President, Fidelity Investments
Hartford, Connecticut Institutional Services Company, April 1992 to August 1997.
Age 51
--------------------------------- ------------------------------ ---------------------------------------------------------------
Corine T. Norgaard Trustee/Director Dean of the Barney School of Business, University of Hartford
556 Wormwood Hill (West Hartford, CT), August 1996 to present; Professor,
Mansfield Center, Connecticut Accounting and Dean of the School of Management, SUNY
Age 63 Binghamton (Binghamton, NY), August 1993 to August 1996
--------------------------------- ------------------------------ ---------------------------------------------------------------
Richard G. Scheide Trustee/Director Principal, LoBue Associates Inc., October 1999 to present;
11 Lily Street Trust and Private Banking Consultant, David Ross Palmer
Nantucket, Massachusetts Consultants, July 1991 to present.
Age 71
--------------------------------- ------------------------------ ---------------------------------------------------------------
</TABLE>
The following replaces the first paragraph in the section entitled "Control
Persons and Principal Shareholders" on page 27 of the Statement:
As of November 30, 2000, Aetna Life Insurance and Annuity Company (Aetna) and
its affiliates owned 100.00% of the shares of AVPI, 100.00% of the shares of
AGPI, 100.00% of the shares of Money Market, 100.00% of the shares of Balanced,
99.40% of the shares of Bond VP and 99.57% of the shares of Growth and Income
which were allocated to variable annuity and variable life insurance separate
accounts to fund obligations under VA Contracts and VLI Policies. Contract
holders in these separate accounts are provided the right to direct the voting
of Fund or Portfolio shares at shareholder meetings. Aetna and its affiliates
vote the shares that they own in these separate accounts in accordance with
contract holders' directions. Generally, undirected shares of a Fund or
Portfolio will be voted for each account in the same proportion as directed
shares.
