<PAGE> 1
SUPPLEMENT ISSUED NOVEMBER 4, 1998
TO
PORTFOLIO DIRECTOR PLUS SEPARATE ACCOUNT A
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
FOR SERIES 1 -- 12
DATED SEPTEMBER 22, 1998
The Fee Table and Examples #1, #2 and #3 in the Prospectus are replaced in their
entirety by the enclosed Fee Table and Examples.
Effective October 27, 1998, The Vanguard Group has simplified the names of the
following Vanguard funds included in this prospectus and Statement of Additional
Information:
<TABLE>
<CAPTION>
OLD NAME NEW NAME
-------- --------
<S> <C>
Vanguard Fixed Income Securities Fund -- Long-Term Vanguard Long-Term Corporate Fund
Corporate Portfolio
Vanguard Fixed Income Securities Fund -- Long-Term Vanguard Long-Term Treasury Fund
U.S. Treasury Portfolio
Vanguard LifeStrategy Portfolios -- Conservative Vanguard LifeStrategy Conservative Growth Fund
Growth Portfolio
Vanguard LifeStrategy Portfolios -- Growth Portfolio Vanguard LifeStrategy Growth Fund
Vanguard LifeStrategy Portfolios -- Moderate Growth Vanguard LifeStrategy Moderate Growth Fund
Portfolio
Vanguard/Wellington Fund Vanguard Wellington Fund
Vanguard/Windsor II Vanguard Windsor II Fund
</TABLE>
10855-A Ver. 11/98
<PAGE> 2
FEE TABLE
- --------------------------------------------------------------------------------
CONTRACT OWNER/PARTICIPANT EXPENSES(1)
<TABLE>
<S> <C>
Account Maintenance Fee ($3.75 per quarter, annualized)(2) $ 15
Maximum Surrender Charge(2) 5.00%
</TABLE>
SEPARATE ACCOUNT EXPENSES
(as a percentage of Separate Account net assets):
<TABLE>
<CAPTION>
MORTALITY ADMINISTRATION SEPARATE
AND AND ACCOUNT TOTAL
EXPENSE RISK DISTRIBUTION EXPENSE SEPARATE
FUND FEE(3) FEE(3) REIMBURSEMENT ACCOUNT FEE
---- ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation(8) 0.25% 0.75% -- 1.00%
AGSPC Capital Conservation 0.25 0.75 -- 1.00
AGSPC Government Securities 0.25 0.75 -- 1.00
AGSPC Growth 0.25 0.75 -- 1.00
AGSPC Growth & Income 0.25 0.75 -- 1.00
AGSPC International Equities 0.25 0.75 -- 1.00
AGSPC International Government Bond 0.25 0.75 -- 1.00
AGSPC MidCap Index 0.25 0.75 -- 1.00
AGSPC Money Market 0.25 0.75 -- 1.00
AGSPC Science & Technology 0.25 0.75 -- 1.00
AGSPC Small Cap Index 0.25 0.75 -- 1.00
AGSPC Social Awareness 0.25 0.75 -- 1.00
AGSPC Stock Index 0.25 0.75 -- 1.00
American Century -- Twentieth Century Ultra(4) 0.25 1.00 (0.21%) 1.04
American General Balanced(4) 0.25 0.75 (0.25) 0.75
American General Conservative Growth Lifestyle(4) 0.25 0.75 (0.25) 0.75
American General Core Bond(4) 0.25 0.75 (0.25) 0.75
American General Domestic Bond(4) 0.25 0.75 (0.25) 0.75
American General Growth Lifestyle(4) 0.25 0.75 (0.25) 0.75
American General High Yield Bond(4) 0.25 0.75 (0.25) 0.75
American General International Growth(4) 0.25 0.75 (0.25) 0.75
American General International Value(4) 0.25 0.75 (0.25) 0.75
American General Large Cap Growth(4) 0.25 0.75 (0.25) 0.75
American General Large Cap Value(4) 0.25 0.75 (0.25) 0.75
American General Mid Cap Growth(4) 0.25 0.75 (0.25) 0.75
American General Mid Cap Value(4) 0.25 0.75 (0.25) 0.75
American General Moderate Growth Lifestyle(4) 0.25 0.75 (0.25) 0.75
American General Money Market(4) 0.25 0.75 (0.25) 0.75
American General Small Cap Growth(4) 0.25 0.75 (0.25) 0.75
American General Small Cap Value(4) 0.25 0.75 (0.25) 0.75
American General Socially Responsible(4) 0.25 0.75 (0.25) 0.75
American General Strategic Bond(4) 0.25 0.75 (0.25) 0.75
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio(4) 0.25 1.00 (0.15) 1.10
Founders Growth(4) 0.25 1.00 (0.25) 1.00
Neuberger&Berman Guardian Trust(4) 0.25 1.00 (0.25) 1.00
Putnam Global Growth(4) 0.25 1.00 (0.25) 1.00
Putnam New Opportunities(4) 0.25 1.00 (0.25) 1.00
Putnam OTC & Emerging Growth(4) 0.25 1.00 (0.25) 1.00
Scudder Growth and Income(4) 0.25 1.00 (0.25) 1.00
T. Rowe Price Small-Cap Stock 0.25 1.00 -- 1.25
Templeton Foreign -- Class 1(4) 0.25 1.00 (0.25) 1.00
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 0.25 1.00 -- 1.25
Templeton International -- Class 1 0.25 1.00 -- 1.25
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio(5) 0.25 1.00 (0.25) 1.00
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio(5) 0.25 1.00 (0.25) 1.00
Vanguard LifeStrategy Conservative Growth
Portfolio 0.25 1.00 -- 1.25
Vanguard LifeStrategy Growth Portfolio 0.25 1.00 -- 1.25
Vanguard LifeStrategy Moderate Growth Portfolio 0.25 1.00 -- 1.25
Vanguard/Wellington 0.25 1.00 -- 1.25
Vanguard/Windsor II 0.25 1.00 -- 1.25
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 3
- --------------------------------------------------------------------------------
FUND ANNUAL EXPENSES
(as a percentage of net assets):
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES EXPENSES EXPENSES
(AFTER EXPENSE 12B-1 (AFTER EXPENSE (AFTER EXPENSE
FUND REIMBURSEMENT) FEES REIMBURSEMENT)(6) REIMBURSEMENT)
---- -------------- ----- ----------------- --------------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation(8) 0.50% -- 0.07% 0.57%
AGSPC Capital Conservation 0.50 -- 0.07 0.57
AGSPC Government Securities 0.50 -- 0.06 0.56
AGSPC Growth 0.80 -- 0.06 0.86
AGSPC Growth & Income 0.75 -- 0.06 0.81
AGSPC International Equities 0.35 -- 0.07 0.42
AGSPC International Government Bond 0.50 -- 0.06 0.56
AGSPC MidCap Index 0.34 -- 0.06 0.40
AGSPC Money Market 0.50 -- 0.07 0.57
AGSPC Science & Technology 0.90 -- 0.06 0.96
AGSPC Small Cap Index 0.35 -- 0.06 0.41
AGSPC Social Awareness 0.50 -- 0.06 0.56
AGSPC Stock Index 0.27 -- 0.07 0.34
American Century -- Twentieth Century Ultra 1.00 -- -- 1.00
American General Balanced(10) 0.80 -- 0.02 0.82
American General Conservative Growth Lifestyle(11) 0.10 -- -- 0.10
American General Core Bond(10) 0.50 -- 0.30 0.80
American General Domestic Bond(10) 0.60 -- 0.18 0.78
American General Growth Lifestyle(11) 0.10 -- -- 0.10
American General High Yield Bond(10) 0.70 -- 0.29 0.99
American General International Growth(10) 0.90 -- 0.25 1.15
American General International Value(10) 1.00 -- 0.04 1.04
American General Large Cap Growth(10) 0.55 -- 0.31 0.86
American General Large Cap Value(10) 0.50 -- 0.31 0.81
American General Mid Cap Growth(10) 0.65 -- 0.14 0.79
American General Mid Cap Value(10) 0.75 -- 0.30 1.05
American General Moderate Growth Lifestyle(11) 0.10 -- -- 0.10
American General Money Market(10) 0.25 -- 0.31 0.56
American General Small Cap Growth(10) 0.85 -- 0.31 1.16
American General Small Cap Value(10) 0.75 -- 0.23 0.98
American General Socially Responsible(10) 0.25 -- 0.31 0.56
American General Strategic Bond(10) 0.60 -- 0.29 0.89
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio 0.75 -- 0.03 0.78
Founders Growth 0.67 0.25% 0.18 1.10
Neuberger&Berman Guardian Trust(7) 0.84 -- 0.04 0.88
Putnam Global Growth 0.64 0.25 0.35 1.24
Putnam New Opportunities 0.50 0.25 0.31 1.06
Putnam OTC & Emerging Growth 0.56 0.25 0.35 1.16
Scudder Growth and Income 0.46 -- 0.30 0.76
T. Rowe Price Small-Cap Stock 0.77 -- 0.25 1.02
Templeton Foreign -- Class 1 0.61 0.25 0.22 1.08
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1(9) 0.60 -- 0.18 0.78
Templeton International -- Class 1(9) 0.69 -- 0.19 0.88
Vanguard Fixed Income Securities Fund -- Long-Term
Corporate Portfolio 0.03 -- 0.29 0.32
Vanguard Fixed Income Securities Fund -- Long-Term
U.S. Treasury Portfolio 0.01 -- 0.26 0.27
Vanguard LifeStrategy Conservative Growth Portfolio -- -- -- --
Vanguard LifeStrategy Growth Portfolio -- -- -- --
Vanguard LifeStrategy Moderate Growth Portfolio -- -- -- --
Vanguard/Wellington 0.04 -- 0.25 0.29
Vanguard/Windsor II 0.15 -- 0.22 0.37
</TABLE>
- ------------
(1) Premium taxes are not shown here, but may be charged by some states. See:
"Premium Tax Charge" in this prospectus.
(2) Reductions in the surrender charge and the account maintenance fee are
available if certain conditions are met. See "Reduction or Waiver of
Account Maintenance Fee, Surrender, Mortality and Expense Risk Fee or
Administration and Distribution Fee Charges" and "Exceptions to Surrender
Charge" in this prospectus.
<PAGE> 4
- --------------------------------------------------------------------------------
(3) Reductions in the mortality and expense risk fee or administration and
distribution fee may be available for plan types meeting certain criteria.
See "Reduction or Waiver of Account Maintenance Fee, Surrender, Mortality
and Expense Risk Fee or Administration Fee Charges" in this prospectus.
(4) For these Funds the Total Separate Account Fee equals the VALIC Separate
Account A mortality and expense risk fee plus the administration and
distribution fee reduced by the Separate Account Expense Reimbursement.
Pursuant to the Separate Account Expense Reimbursement the Company's
charges to these Divisions are reduced by an amount equal to payments from
the underlying Fund and/or its affiliate or distributors for administrative
and shareholder services provided by the Company. See "Fees and
Charges -- Separate Account Expense Reimbursement" in this prospectus for
more information.
The following Funds and/or their affiliates or distributors pay
administrative, shareholder service or distribution fees to the Company:
American Century -- Twentieth Century (0.21%), American General Funds
(0.25%), Dreyfus (0.15%), Founders (0.25%), Neuberger&Berman (0.25%),
Putnam (0.25%), Scudder (0.25%) and Templeton (0.25%) With respect to
American Century -- Twentieth Century Ultra Fund, the Fund pays fees to the
Company of 0.20% on assets in excess of $0 but less than $75 million, and
0.25% on assets in excess of $75 million.
(5) For these Funds the Total Separate Account Fee equals the VALIC Separate
Account A mortality and expense risk fee plus the administration and
distribution fee reduced by the Separate Account Expense Reimbursement. The
Separate Account Expense Reimbursement reflects a voluntary expense
reimbursement made by the Company directly to the Division which may be
terminated by the Company at any time without notice.
(6) OTHER EXPENSES includes custody, accounting, reports to shareholders,
audit, legal, administrative and other miscellaneous expenses. See each
Fund's prospectus for a detailed explanation of these fees.
(7) Neuberger&Berman Guardian Trust ("Trust") has identical investment
objectives and policies and invests in the same portfolio as
Neuberger&Berman Guardian Fund ("Fund"). Both the Fund and the Trust are
managed by Neuberger&Berman Management Inc. ("N&B"). N&B voluntarily bears
certain expenses of the Trust so that the Trust's expense ratio per annum
will not exceed the expense ratio per annum of the Fund by more than 0.10%
of the Trust's average daily net assets. This arrangement can be terminated
on sixty days' notice. For this Fund, MANAGEMENT FEES include
administration expenses. For the Trust's 1997 fiscal year, N&B did not bear
any expenses.
(8) The AGSPC Asset Allocation Fund was formerly known as the Timed Opportunity
Fund.
(9) For these Funds Management fees and Total Fund Expenses have been restated
to reflect the management fee schedule approved by shareholders and
effective May 1, 1997. See Fund prospectus for details. Actual Management
Fees and Total Fund Expenses during 1997 were lower.
(10) After expense reimbursement. In the absence of the expense reimbursement,
management fees, other expenses and total fund operating expenses,
respectively, would be: Balanced Fund, 0.80%, 0.80% and 1.60%; Core Bond
Fund, 0.50%, 0.86% and 1.36%; Domestic Bond Fund, 0.60%, 0.57% and 1.17%;
High Yield Bond Fund, 0.70%, 0.83% and 1.53%; International Growth Fund,
0.90%, 0.71% and 1.61%; International Value Fund, 1.00%, 0.70% and 1.70%;
Large Cap Growth Fund, 0.55%, 0.58% and 1.13%; Large Cap Value Fund, 0.50%,
0.58% and 1.08%; Mid Cap Growth Fund, 0.65%, 0.64% and 1.29%; Mid Cap Value
Fund, 0.75%, 0.64% and 1.39%; Money Market Fund, 0.25%, 0.86% and 1.11%;
Small Cap Growth Fund, 0.85%, 0.62% and 1.47%; Small Cap Value Fund, 0.75%,
0.63% and 1.38%; and Socially Responsible Fund, 0.25%, 0.87% and 1.12%; and
Strategic Bond Fund, 0.60%, 0.90% and 1.50%.
(11) Total Combined Operating Expenses based on estimated total average weighted
combined operating expenses for the American General Conservative Growth
Lifestyle Fund is 1.00%, American General Growth Lifestyle Fund is 1.09%
and American General Moderate Growth Lifestyle Fund is 1.03%. Estimated
Total Combined Operating Expenses of each Lifestyle Fund is based on the
Total Fund Operating Expenses of the Underlying Series Company Funds and
the Lifestyle Funds, assuming each Lifestyle Fund's projected asset
allocation among the Underlying Series Company Funds is maintained.
<PAGE> 5
EXAMPLE #1 -- Assuming No Account Maintenance Fee and
No Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses. You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract without a surrender charge or
account maintenance fee imposed, invested in a single Separate Account Division
as listed below, assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $16 $50 $ 86 $187
AGSPC Capital Conservation Division 7 16 50 86 187
AGSPC Government Securities Division 8 16 49 85 186
AGSPC Growth Division 15 19 59 101 218
AGSPC Growth & Income Division 16 18 57 98 213
AGSPC International Equities Division 11 14 45 78 171
AGSPC International Government Bond Division 13 16 49 85 186
AGSPC MidCap Index Division 4 14 44 77 168
AGSPC Money Market Division 6 16 50 86 187
AGSPC Science & Technology Division 17 20 62 106 229
AGSPC Small Cap Index Division 14 14 45 77 170
AGSPC Social Awareness Division 12 16 49 85 186
AGSPC Stock Index Division 10 14 42 74 162
American Century -- Twentieth Century Ultra Division 31 21 64 110 237
American General Balanced Division 42 16 50 86 187
American General Conservative Growth Lifestyle Division 50 9 27 47 105
American General Core Bond Division 58 16 49 85 185
American General Domestic Bond Division 43 16 48 84 183
American General Growth Lifestyle Division 48 9 27 47 105
American General High Yield Bond Division 60 18 55 94 206
American General International Growth Division 33 19 60 103 223
American General International Value Division 34 18 56 97 211
American General Large Cap Growth Division 39 16 51 88 192
American General Large Cap Value Division 40 16 49 85 186
American General Mid Cap Growth Division 37 16 49 84 184
American General Mid Cap Value Division 38 18 57 98 212
American General Moderate Growth Lifestyle Division 49 9 27 47 105
American General Money Market Division 44 13 42 72 158
American General Small Cap Growth Division 35 19 60 103 224
American General Small Cap Value Division 36 18 55 94 205
American General Socially Responsible Division 41 13 42 72 158
American General Strategic Bond Division 59 17 52 89 195
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 19 59 102 221
Founders Growth Division 30 21 66 113 244
Neuberger&Berman Guardian Trust Division 29 19 59 102 221
Putnam Global Growth Division 28 23 70 120 258
Putnam New Opportunities Division 26 21 65 111 239
Putnam OTC & Emerging Growth Division 27 22 68 116 250
Scudder Growth and Income Division 21 18 55 96 208
T. Rowe Price Small-Cap Stock Division 51 23 71 122 261
Templeton Foreign -- Class 1 Division 32 21 65 112 242
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 21 64 109 236
Templeton International -- Class 1 Division 20 22 67 115 247
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio Division 22 13 42 72 160
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio Division 23 13 40 70 154
Vanguard LifeStrategy Conservative Growth Portfolio Division
54 13 40 69 152
Vanguard LifeStrategy Growth Portfolio Division 52 13 40 69 152
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 13 40 69 152
Vanguard/Wellington Division 25 16 49 84 184
Vanguard/Windsor II Division 24 16 51 88 193
</TABLE>
<PAGE> 6
EXAMPLE #2 -- Assuming No Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses. You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract without a surrender charge
imposed, invested in a single Separate Account Division as listed below,
assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $17 $51 $ 89 $193
AGSPC Capital Conservation Division 7 17 51 89 193
AGSPC Government Securities Division 8 16 51 88 192
AGSPC Growth Division 15 19 60 104 224
AGSPC Growth & Income Division 16 19 59 101 219
AGSPC International Equities Division 11 15 47 81 177
AGSPC International Government Bond Division 13 16 51 88 192
AGSPC MidCap Index Division 4 15 46 80 175
AGSPC Money Market Division 6 17 51 89 193
AGSPC Science & Technology Division 17 20 63 109 235
AGSPC Small Cap Index Division 14 15 46 80 176
AGSPC Social Awareness Division 12 16 51 88 192
AGSPC Stock Index Division 10 14 44 76 168
American Century -- Twentieth Century Ultra Division 31 21 66 113 243
American General Balanced Division 42 17 51 89 193
American General Conservative Growth Lifestyle Division 50 9 29 50 112
American General Core Bond Division 58 16 51 87 191
American General Domestic Bond Division 43 16 50 86 189
American General Growth Lifestyle Division 48 9 29 50 112
American General High Yield Bond Division 60 18 57 97 212
American General International Growth Division 33 20 61 106 229
American General International Value Division 34 19 58 100 217
American General Large Cap Growth Division 39 17 53 91 198
American General Large Cap Value Division 40 16 51 88 192
American General Mid Cap Growth Division 37 16 50 87 190
American General Mid Cap Value Division 38 19 58 100 218
American General Moderate Growth Lifestyle Division 49 9 29 50 112
American General Money Market Division 44 14 43 75 165
American General Small Cap Growth Division 35 20 62 106 230
American General Small Cap Value Division 36 18 56 97 211
American General Socially Responsible Division 41 14 43 75 165
American General Strategic Bond Division 59 17 53 92 201
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 20 61 105 226
Founders Growth Division 30 22 68 116 249
Neuberger&Berman Guardian Trust Division 29 20 61 105 226
Putnam Global Growth Division 28 23 72 123 264
Putnam New Opportunities Division 26 21 66 114 245
Putnam OTC & Emerging Growth Division 27 22 69 119 255
Scudder Growth and Income Division 21 18 57 98 214
T. Rowe Price Small-Cap Stock Division 51 24 73 124 267
Templeton Foreign -- Class 1 Division 32 22 67 115 247
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 21 65 112 242
Templeton International -- Class 1 Division 20 22 68 117 252
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio Division 22 14 44 75 166
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio Division 23 14 42 73 160
Vanguard LifeStrategy Conservative Growth Portfolio Division
54 13 41 72 158
Vanguard LifeStrategy Growth Portfolio Division 52 13 41 72 158
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 13 41 72 158
Vanguard/Wellington Division 25 16 50 87 190
Vanguard/Windsor II Division 24 17 53 91 199
</TABLE>
<PAGE> 7
EXAMPLE #3 -- Assuming Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses: You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract invested in a single Separate
Account Division as listed below, assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $63 $101 $139 $193
AGSPC Capital Conservation Division 7 63 101 139 193
AGSPC Government Securities Division 8 63 101 138 192
AGSPC Growth Division 15 66 110 154 224
AGSPC Growth & Income Division 16 65 108 151 219
AGSPC International Equities Division 11 62 97 131 177
AGSPC International Government Bond Division 13 63 101 138 192
AGSPC MidCap Index Division 4 61 96 130 175
AGSPC Money Market Division 6 63 101 139 193
AGSPC Science & Technology Division 17 67 112 159 235
AGSPC Small Cap Index Division 14 62 96 130 176
AGSPC Social Awareness Division 12 63 101 138 192
AGSPC Stock Index Division 10 61 94 126 168
American Century -- Twentieth Century Ultra Division 31 68 115 163 243
American General Balanced Division 42 63 101 139 193
American General Conservative Growth Lifestyle Division 50 56 79 100 112
American General Core Bond Division 58 63 100 137 191
American General Domestic Bond Division 43 63 100 136 189
American General Growth Lifestyle Division 48 56 79 100 112
American General High Yield Bond Division 60 65 106 147 212
American General International Growth Division 33 66 111 156 229
American General International Value Division 34 65 108 150 217
American General Large Cap Growth Division 39 63 102 141 198
American General Large Cap Value Division 40 63 101 138 192
American General Mid Cap Growth Division 37 63 100 137 190
American General Mid Cap Value Division 38 65 108 150 218
American General Moderate Growth Lifestyle Division 49 56 79 100 112
American General Money Market Division 44 61 93 125 165
American General Small Cap Growth Division 35 66 111 156 230
American General Small Cap Value Division 36 65 106 147 211
American General Socially Responsible Division 41 61 93 125 165
American General Strategic Bond Division 59 64 103 142 201
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 66 110 155 226
Founders Growth Division 30 68 116 166 249
Neuberger&Berman Guardian Trust Division 29 66 110 155 226
Putnam Global Growth Division 28 69 121 173 264
Putnam New Opportunities Division 26 68 115 164 245
Putnam OTC & Emerging Growth Division 27 69 118 169 255
Scudder Growth and Income Division 21 65 107 148 214
T. Rowe Price Small-Cap Stock Division 51 70 121 174 267
Templeton Foreign -- Class 1 Division 32 68 116 165 247
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 67 114 162 242
Templeton International -- Class 1 Division 20 68 117 167 252
Vanguard Fixed Income Securities Fund -- Long-Term Corporate
Portfolio Division 22 61 94 125 166
Vanguard Fixed Income Securities Fund -- Long-Term U.S.
Treasury Portfolio Division 23 60 92 123 160
Vanguard LifeStrategy Conservative Growth Portfolio Division
54 60 91 122 158
Vanguard LifeStrategy Growth Portfolio Division 52 60 91 122 158
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 60 91 122 158
Vanguard/Wellington Division 25 63 100 137 190
Vanguard/Windsor II Division 24 64 103 141 199
</TABLE>
Note: These examples should not be considered representations of past or future
expenses for VALIC Separate Account A or for any Fund. Actual expenses may be
greater or less than those shown above. Similarly, the 5% annual rate of return
assumed in the examples is not an estimate or guarantee of future investment
performance. The purpose of the Fee Table above is to help Contract Owners and
Participants understand the various expenses of VALIC Separate Account A and the
Funds which are, in effect, passed on to the Contract Owners and Participants.
This Fee Table shows all charges and expenses which may be deducted from the
assets of VALIC Separate Account A and from the Funds in which VALIC Separate
Account A invests. For a further description of these charges and expenses, see
"Fees and Charges" in this prospectus and the descriptions of fees and charges
in each of the Fund's prospectuses. Any and all limitations on total charges and
expenses are reflected in this Fee Table.
<PAGE> 8
SUPPLEMENT ISSUED NOVEMBER 4, 1998
TO
PORTFOLIO DIRECTOR PLUS SEPARATE ACCOUNT A
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
FOR SERIES 1.20 -- 12.20
DATED SEPTEMBER 22, 1998
The Fee Table and Examples #1, #2 and #3 in the Prospectus are replaced in their
entirety by the enclosed Fee Table and Examples.
Effective October 27, 1998, The Vanguard Group has simplified the names of the
following Vanguard funds included in this prospectus and Statement of Additional
Information:
<TABLE>
<CAPTION>
OLD NAME NEW NAME
-------- --------
<S> <C>
Vanguard Fixed Income Securities Fund -- Long-Term Vanguard Long-Term Corporate Fund
Corporate Portfolio
Vanguard Fixed Income Securities Fund -- Long-Term Vanguard Long-Term Treasury Fund
U.S. Treasury Portfolio
Vanguard LifeStrategy Portfolios -- Conservative Vanguard LifeStrategy Conservative Growth Fund
Growth Portfolio
Vanguard LifeStrategy Portfolios -- Growth Portfolio Vanguard LifeStrategy Growth Fund
Vanguard LifeStrategy Portfolios -- Moderate Growth Vanguard LifeStrategy Moderate Growth Fund
Portfolio
Vanguard/Wellington Fund Vanguard Wellington Fund
Vanguard/Windsor II Vanguard Windsor II Fund
</TABLE>
10855-20A Ver. 11/98
<PAGE> 9
FEE TABLE
- --------------------------------------------------------------------------------
CONTRACT OWNER/PARTICIPANT EXPENSES(1)
<TABLE>
<S> <C>
Account Maintenance Fee ($3.75 per quarter, annualized)(2) $ 15
Maximum Surrender Charge(2) 5.00%
</TABLE>
SEPARATE ACCOUNT EXPENSES
(as a percentage of Separate Account net assets):
<TABLE>
<CAPTION>
MORTALITY ADMINISTRATION SEPARATE
AND AND ACCOUNT TOTAL
EXPENSE RISK DISTRIBUTION EXPENSE SEPARATE
FUND FEE(3) FEE(3) REIMBURSEMENT ACCOUNT FEE
---- ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation(8) 0.25% 0.55% -- 0.80%
AGSPC Capital Conservation 0.25 0.55 -- 0.80
AGSPC Government Securities 0.25 0.55 -- 0.80
AGSPC Growth 0.25 0.55 -- 0.80
AGSPC Growth & Income 0.25 0.55 -- 0.80
AGSPC International Equities 0.25 0.55 -- 0.80
AGSPC International Government Bond 0.25 0.55 -- 0.80
AGSPC MidCap Index 0.25 0.55 -- 0.80
AGSPC Money Market 0.25 0.55 -- 0.80
AGSPC Science & Technology 0.25 0.55 -- 0.80
AGSPC Small Cap Index 0.25 0.55 -- 0.80
AGSPC Social Awareness 0.25 0.55 -- 0.80
AGSPC Stock Index 0.25 0.55 -- 0.80
American Century -- Twentieth Century Ultra(4) 0.25 0.80 (0.21%) 0.84
American General Balanced(4) 0.25 0.55 (0.25) 0.55
American General Conservative Growth Lifestyle 0.25 0.55 (0.25) 0.55
American General Core Bond(4) 0.25 0.55 (0.25) 0.55
American General Domestic Bond(4) 0.25 0.55 (0.25) 0.55
American General Growth Lifestyle 0.25 0.55 (0.25) 0.55
American General High Yield Bond(4) 0.25 0.55 (0.25) 0.55
American General International Growth(4) 0.25 0.55 (0.25) 0.55
American General International Value(4) 0.25 0.55 (0.25) 0.55
American General Large Cap Growth(4) 0.25 0.55 (0.25) 0.55
American General Large Cap Value(4) 0.25 0.55 (0.25) 0.55
American General Mid Cap Growth(4) 0.25 0.55 (0.25) 0.55
American General Mid Cap Value(4) 0.25 0.55 (0.25) 0.55
American General Moderate Growth Lifestyle 0.25 0.55 (0.25) 0.55
American General Money Market(4) 0.25 0.55 (0.25) 0.55
American General Small Cap Growth(4) 0.25 0.55 (0.25) 0.55
American General Small Cap Value(4) 0.25 0.55 (0.25) 0.55
American General Socially Responsible(4) 0.25 0.55 (0.25) 0.55
American General Strategic Bond(4) 0.25 0.55 (0.25) 0.55
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio(4) 0.25 0.80 (0.15) 0.90
Founders Growth(4) 0.25 0.80 (0.25) 0.80
Neuberger&Berman Guardian Trust(4) 0.25 0.80 (0.25) 0.80
Putnam Global Growth(4) 0.25 0.80 (0.25) 0.80
Putnam New Opportunities(4) 0.25 0.80 (0.25) 0.80
Putnam OTC & Emerging Growth(4) 0.25 0.80 (0.25) 0.80
Scudder Growth and Income(4) 0.25 0.80 (0.25) 0.80
T. Rowe Price Small-Cap Stock 0.25 0.80 -- 1.05
Templeton Foreign -- Class 1(4) 0.25 0.80 (0.25) 0.80
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 0.25 0.80 -- 1.05
Templeton International -- Class 1 0.25 0.80 -- 1.05
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio(5) 0.25 0.80 (0.25) 0.80
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio(5) 0.25 0.80 (0.25) 0.80
Vanguard LifeStrategy Conservative Growth
Portfolio 0.25 0.80 -- 1.05
Vanguard LifeStrategy Growth Portfolio 0.25 0.80 -- 1.05
Vanguard LifeStrategy Moderate Growth Portfolio 0.25 0.80 -- 1.05
Vanguard/Wellington 0.25 0.80 -- 1.05
Vanguard/Windsor II 0.25 0.80 -- 1.05
</TABLE>
<PAGE> 10
- --------------------------------------------------------------------------------
FUND ANNUAL EXPENSES
(as a percentage of net assets):
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES EXPENSES EXPENSES
(AFTER EXPENSE 12B-1 (AFTER EXPENSE (AFTER EXPENSE
FUND REIMBURSEMENT) FEES REIMBURSEMENT)(6) REIMBURSEMENT)
---- -------------- ----- ----------------- --------------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation(8) 0.50% -- 0.07% 0.57%
AGSPC Capital Conservation 0.50 -- 0.07 0.57
AGSPC Government Securities 0.50 -- 0.06 0.56
AGSPC Growth 0.80 -- 0.06 0.86
AGSPC Growth & Income 0.75 -- 0.06 0.81
AGSPC International Equities 0.35 -- 0.07 0.42
AGSPC International Government Bond 0.50 -- 0.06 0.56
AGSPC MidCap Index 0.34 -- 0.06 0.40
AGSPC Money Market 0.50 -- 0.07 0.57
AGSPC Science & Technology 0.90 -- 0.06 0.96
AGSPC Small Cap Index 0.35 -- 0.06 0.41
AGSPC Social Awareness 0.50 -- 0.06 0.56
AGSPC Stock Index 0.27 -- 0.07 0.34
American Century -- Twentieth Century Ultra 1.00 -- -- 1.00
American General Balanced(10) 0.80 -- 0.02 0.82
American General Conservative Growth
Lifestyle(11) 0.10 -- -- 0.10
American General Core Bond(10) 0.50 -- 0.30 0.80
American General Domestic Bond(10) 0.60 -- 0.18 0.78
American General Growth Lifestyle(11) 0.10 -- -- 0.10
American General High Yield Bond(10) 0.70 -- 0.29 0.99
American General International Growth(10) 0.90 -- 0.25 1.15
American General International Value(10) 1.00 -- 0.04 1.04
American General Large Cap Growth(10) 0.55 -- 0.31 0.86
American General Large Cap Value(10) 0.50 -- 0.31 0.81
American General Mid Cap Growth(10) 0.65 -- 0.14 0.79
American General Mid Cap Value(10) 0.75 -- 0.30 1.05
American General Moderate Growth
Lifestyle(11) 0.10 -- -- 0.10
American General Money Market(10) 0.25 -- 0.31 0.56
American General Small Cap Growth(10) 0.85 -- 0.31 1.16
American General Small Cap Value(10) 0.75 -- 0.23 0.98
American General Socially Responsible(10) 0.25 -- 0.31 0.56
American General Strategic Bond(10) 0.60 -- 0.29 0.89
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio 0.75 -- 0.03 0.78
Founders Growth 0.67 0.25% 0.18 1.10
Neuberger&Berman Guardian Trust(7) 0.84 -- 0.04 0.88
Putnam Global Growth 0.64 0.25 0.35 1.24
Putnam New Opportunities 0.50 0.25 0.31 1.06
Putnam OTC & Emerging Growth 0.56 0.25 0.35 1.16
Scudder Growth and Income 0.46 -- 0.30 0.76
T. Rowe Price Small-Cap Stock 0.77 -- 0.25 1.02
Templeton Foreign -- Class 1 0.61 0.25 0.22 1.08
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1(9) 0.60 -- 0.18 0.78
Templeton International -- Class 1(9) 0.69 -- 0.19 0.88
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio 0.03 -- 0.29 0.32
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio 0.01 -- 0.26 0.27
Vanguard LifeStrategy Conservative Growth
Portfolio -- -- -- --
Vanguard LifeStrategy Growth Portfolio -- -- -- --
Vanguard LifeStrategy Moderate Growth
Portfolio -- -- -- --
Vanguard/Wellington 0.04 -- 0.25 0.29
Vanguard/Windsor II 0.15 -- 0.22 0.37
</TABLE>
- ------------
(1) Premium taxes are not shown here, but may be charged by some states. See:
"Premium Tax Charge" in this prospectus.
(2) Reductions in the surrender charge and the account maintenance fee are
available if certain conditions are met. See "Reduction or Waiver of
Account Maintenance Fee, Surrender, Mortality and Expense Risk Fee or
Administration and Distribution Fee Charges" and "Exceptions to Surrender
Charge" in this prospectus.
<PAGE> 11
- --------------------------------------------------------------------------------
(3) Reductions in the mortality and expense risk fee or administration and
distribution fee may be available for plan types meeting certain criteria.
See "Reduction or Waiver of Account Maintenance Fee, Surrender, Mortality
and Expense Risk Fee or Administration Fee Charges" in this prospectus.
(4) For these Funds the Total Separate Account Fee equals the VALIC Separate
Account A mortality and expense risk fee plus the administration and
distribution fee reduced by the Separate Account Expense Reimbursement.
Pursuant to the Separate Account Expense Reimbursement the Company's
charges to these Divisions are reduced by an amount equal to payments from
the underlying Fund and/or its affiliate or distributors for administrative
and shareholder services provided by the Company. See "Fees and
Charges -- Separate Account Expense Reimbursement" in this prospectus for
more information.
The following Funds and/or their affiliates or distributors pay
administrative, shareholder service or distribution fees to the Company:
American Century -- Twentieth Century (0.21%), American General Funds
(0.25%), Dreyfus (0.15%), Founders (0.25%), Neuberger&Berman (0.25%),
Putnam (0.25%), Scudder (0.25%) and Templeton (0.25%) With respect to
American Century -- Twentieth Century Ultra Fund, the Fund pays fees to the
Company of 0.20% on assets in excess of $0 but less than $75 million, and
0.25% on assets in excess of $75 million.
(5) For these Funds the Total Separate Account Fee equals the VALIC Separate
Account A mortality and expense risk fee plus the administration and
distribution fee reduced by the Separate Account Expense Reimbursement. The
Separate Account Expense Reimbursement reflects a voluntary expense
reimbursement made by the Company directly to the Division which may be
terminated by the Company at any time without notice.
(6) OTHER EXPENSES includes custody, accounting, reports to shareholders,
audit, legal, administrative and other miscellaneous expenses. See each
Fund's prospectus for a detailed explanation of these fees.
(7) Neuberger&Berman Guardian Trust ("Trust") has identical investment
objectives and policies and invests in, the same portfolio as
Neuberger&Berman Guardian Fund ("Fund"). Both the Fund and Trust are
managed by Neuberger&Berman Management Inc. ("N&B"). N&B voluntarily bears
certain expenses of the Trust so that the Trust's expense ratio per annum
will not exceed the expense ratio per annum of the Fund by more than 0.10%
of the Trust's average daily net assets. This arrangement can be terminated
on sixty days' notice. For this Fund, MANAGEMENT FEES include
administration expenses. For the Trust's 1997 fiscal year, N&B did not bear
any expenses.
(8) The AGSPC Asset Allocation Fund was formerly known as the Timed Opportunity
Fund.
(9) For these Funds Management fees and Total Fund Expenses have been restated
to reflect the management fee schedule approved by shareholders and
effective May 1, 1997. See Fund prospectus for details. Actual Management
Fees and Total Fund Expenses during 1997 were lower.
(10) After expense reimbursement. In the absence of the expense reimbursement,
management fees, other expenses and total fund operating expenses,
respectively, would be: Balanced Fund, 0.80%, 0.80% and 1.60%; Core Bond
Fund, 0.50%, 0.86% and 1.36%; Domestic Bond Fund, 0.60%, 0.57% and 1.17%;
High Yield Bond Fund, 0.70%, 0.83% and 1.53%; International Growth Fund,
0.90%, 0.71% and 1.61%; International Value Fund, 1.00%, 0.70% and 1.70%;
Large Cap Growth Fund, 0.55%, 0.58% and 1.13%; Large Cap Value Fund, 0.50%,
0.58% and 1.08%; Mid Cap Growth Fund, 0.65%, 0.64% and 1.29%; Mid Cap Value
Fund, 0.75%, 0.64% and 1.39%; Money Market Fund, 0.25%, 0.86% and 1.11%;
Small Cap Growth Fund, 0.85%, 0.62% and 1.47%; Small Cap Value Fund, 0.75%,
0.63% and 1.38%; and Socially Responsible Fund, 0.25%, 0.87% and 1.12%; and
Strategic Bond Fund, 0.60%, 0.90% and 1.50%.
(11) Total Combined Operating Expenses based on estimated total average weighted
combined operating expenses for the American General Conservative Growth
Lifestyle Fund is 1.00%, American General Growth Lifestyle Fund is 1.09%
and American General Moderate Growth Lifestyle Fund is 1.03%. Estimated
Total Combined Operating Expenses of each Lifestyle Fund is based on the
Total Fund Operating Expenses of the Underlying Series Company Funds and
the Lifestyle Funds, assuming each Lifestyle Fund's projected asset
allocation among the Underlying Series Company Funds is maintained.
<PAGE> 12
EXAMPLE #1 -- Assuming No Account Maintenance Fee and No Surrender
at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses. You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract without a surrender charge or
account maintenance fee imposed, invested in a single Separate Account Division
as listed below, assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $14 $ 43 $ 75 $165
AGSPC Capital Conservation Division 7 14 43 75 165
AGSPC Government Securities Division 8 14 43 75 164
AGSPC Growth Division 15 17 52 90 197
AGSPC Growth & Income Division 16 16 51 88 192
AGSPC International Equities Division 11 12 39 67 148
AGSPC International Government Bond Division 13 14 43 75 164
AGSPC MidCap Index Division 4 12 38 66 146
AGSPC Money Market Division 6 14 43 75 165
AGSPC Science & Technology Division 17 18 55 96 208
AGSPC Small Cap Index Division 14 12 38 67 147
AGSPC Social Awareness Division 12 14 43 75 164
AGSPC Stock Index Division 10 12 36 63 139
American Century -- Twentieth Century Ultra Division 31 19 58 100 216
American General Balanced Division 42 14 43 75 165
American General Conservative Growth Lifestyle Division 50 7 21 36 81
American General Core Bond Division 58 14 43 74 163
American General Domestic Bond Division 43 14 42 73 161
American General Growth Lifestyle Division 48 7 21 36 81
American General High Yield Bond Division 60 16 49 84 184
American General International Growth Division 33 17 54 92 201
American General International Value Division 34 16 50 87 189
American General Large Cap Growth Division 39 14 45 77 170
American General Large Cap Value Division 40 14 43 75 164
American General Mid Cap Growth Division 37 14 42 74 162
American General Mid Cap Value Division 38 16 51 87 191
American General Moderate Growth Lifestyle Division 49 7 21 36 81
American General Money Market Division 44 11 35 61 136
American General Small Cap Growth Division 35 17 54 93 202
American General Small Cap Value Division 36 16 48 84 183
American General Socially Responsible Division 41 11 35 61 136
American General Strategic Bond Division 59 15 46 79 173
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 14 42 73 161
Founders Growth Division 30 19 60 103 223
Neuberger&Berman Guardian Trust Division 29 17 53 91 199
Putnam Global Growth Division 28 21 64 110 237
Putnam New Opportunities Division 26 19 59 101 218
Putnam OTC & Emerging Growth Division 27 20 62 106 229
Scudder Growth and Income Division 21 16 49 85 186
T. Rowe Price Small-Cap Stock Division 51 21 65 111 240
Templeton Foreign -- Class 1 Division 32 19 59 102 221
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 14 42 73 161
Templeton International -- Class 1 Division 20 15 45 78 172
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio Division 22 11 36 62 137
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio Division 23 11 34 59 131
Vanguard LifeStrategy Conservative Growth Portfolio Division
54 11 33 58 129
Vanguard LifeStrategy Growth Portfolio Division 52 11 33 58 129
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 11 33 58 129
Vanguard/Wellington Division 25 14 42 74 162
Vanguard/Windsor II Division 24 14 45 78 171
</TABLE>
<PAGE> 13
EXAMPLE #2 -- Assuming No Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses. You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract without a surrender charge
imposed, invested in a single Separate Account Division as listed below,
assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $15 $ 45 $ 78 $171
AGSPC Capital Conservation Division 7 15 45 78 171
AGSPC Government Securities Division 8 14 45 78 170
AGSPC Growth Division 15 17 54 93 203
AGSPC Growth & Income Division 16 17 53 91 198
AGSPC International Equities Division 11 13 40 70 155
AGSPC International Government Bond Division 13 14 45 78 170
AGSPC MidCap Index Division 4 13 40 69 152
AGSPC Money Market Division 6 15 45 78 171
AGSPC Science & Technology Division 17 18 57 98 214
AGSPC Small Cap Index Division 14 13 40 70 153
AGSPC Social Awareness Division 12 14 45 78 170
AGSPC Stock Index Division 10 12 38 66 145
American Century -- Twentieth Century Ultra Division 31 19 60 103 222
American General Balanced Fund Division 42 15 45 78 171
American General Conservative Growth Lifestyle Division 50 7 23 39 88
American General Core Bond Division 58 14 45 77 169
American General Domestic Bond Division 43 14 44 76 167
American General Growth Lifestyle Division 48 7 23 39 88
American General High Yield Bond Division 60 16 50 87 190
American General International Growth Division 33 18 55 95 207
American General International Value Division 34 17 52 90 195
American General Large Cap Growth Division 39 15 46 80 176
American General Large Cap Value Division 40 14 45 78 170
American General Mid Cap Growth Division 37 14 44 76 168
American General Mid Cap Value Division 38 17 52 90 197
American General Moderate Growth Lifestyle Division 49 7 23 39 88
American General Money Market Division 44 12 37 64 142
American General Small Cap Growth Division 35 18 56 96 208
American General Small Cap Value Division 36 16 50 86 189
American General Socially Responsible Division 41 12 37 64 142
American General Strategic Bond Division 59 15 47 82 179
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 18 55 94 205
Founders Growth Division 30 20 61 106 229
Neuberger&Berman Guardian Trust Division 29 18 55 94 205
Putnam Global Growth Division 28 21 66 113 243
Putnam New Opportunities Division 26 19 60 104 224
Putnam OTC & Emerging Growth Division 27 20 63 109 235
Scudder Growth and Income Division 21 16 51 88 192
T. Rowe Price Small-Cap Stock Division 51 22 67 114 246
Templeton Foreign -- Class 1 Division 32 20 61 105 226
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 19 59 102 221
Templeton International -- Class 1 Division 20 20 62 107 232
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio Division 22 12 37 65 143
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio Division 23 11 36 62 137
Vanguard LifeStrategy Conservative Growth Portfolio
Division 54 11 35 61 135
Vanguard LifeStrategy Growth Portfolio Division 52 11 35 61 135
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 11 35 61 135
Vanguard/Wellington Division 25 14 44 76 168
Vanguard/Windsor II Division 24 15 47 81 177
</TABLE>
<PAGE> 14
EXAMPLE #3 -- Assuming Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses: You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract invested in a single Separate
Account Division as listed below, assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $61 $ 95 $128 $171
AGSPC Capital Conservation Division 7 61 95 128 171
AGSPC Government Securities Division 8 61 95 128 170
AGSPC Growth Division 15 64 104 143 203
AGSPC Growth & Income Division 16 63 102 141 198
AGSPC International Equities Division 11 60 90 120 155
AGSPC International Government Bond Division 13 61 95 128 170
AGSPC MidCap Index Division 4 59 90 119 152
AGSPC Money Market Division 6 61 95 128 171
AGSPC Science & Technology Division 17 65 107 148 214
AGSPC Small Cap Index Division 14 60 90 120 153
AGSPC Social Awareness Division 12 61 95 128 170
AGSPC Stock Index Division 10 59 88 116 145
American Century -- Twentieth Century Ultra Division 31 66 109 153 222
American General Balanced Division 42 61 95 128 171
American General Conservative Growth Lifestyle Division 50 54 73 89 88
American General Core Bond Division 58 61 95 127 169
American General Domestic Bond Division 43 61 94 126 167
American General Growth Lifestyle Division 48 54 73 89 88
American General High Yield Bond Division 60 63 100 137 190
American General International Growth Division 33 64 105 145 207
American General International Value Division 34 63 102 140 195
American General Large Cap Growth Division 39 62 96 130 176
American General Large Cap Value Division 40 61 95 128 170
American General Mid Cap Growth Division 37 61 94 126 168
American General Mid Cap Value Division 38 63 102 140 197
American General Moderate Growth Lifestyle Division 49 54 73 89 88
American General Money Market Division 44 59 87 114 142
American General Small Cap Growth Division 35 64 105 146 208
American General Small Cap Value Division 36 63 100 136 189
American General Socially Responsible Division 41 59 87 114 142
American General Strategic Bond Division 59 62 97 132 179
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 64 104 144 205
Founders Growth Division 30 66 111 156 229
Neuberger&Berman Guardian Trust Division 29 64 104 144 205
Putnam Global Growth Division 28 68 115 163 243
Putnam New Opportunities Division 26 66 110 154 224
Putnam OTC & Emerging Growth Division 27 67 112 159 235
Scudder Growth and Income Division 21 63 101 138 192
T. Rowe Price Small-Cap Stock Division 51 68 116 164 246
Templeton Foreign -- Class 1 Division 32 66 110 155 226
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 66 109 152 221
Templeton International -- Class 1 Division 20 67 112 157 232
Vanguard Fixed Income Securities Fund -- Long-Term Corporate
Portfolio Division 22 59 87 115 143
Vanguard Fixed Income Securities Fund -- Long-Term U.S.
Treasury Portfolio Division 23 58 86 112 137
Vanguard LifeStrategy Conservative Growth Portfolio
Division 54 58 85 111 135
Vanguard LifeStrategy Growth Portfolio Division 52 58 85 111 135
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 58 85 111 135
Vanguard/Wellington Division 25 61 94 126 168
Vanguard/Windsor II Division 24 62 97 131 177
</TABLE>
Note: These examples should not be considered representations of past or future
expenses for VALIC Separate Account A or for any Fund. Actual expenses may be
greater or less than those shown above. Similarly, the 5% annual rate of return
assumed in the examples is not an estimate or guarantee of future investment
performance. The purpose of the Fee Table above is to help Contract Owners and
Participants understand the various expenses of VALIC Separate Account A and the
Funds which are, in effect, passed on to the Contract Owners and Participants.
This Fee Table shows all charges and expenses which may be deducted from the
assets of VALIC Separate Account A and from the Funds in which VALIC Separate
Account A invests. For a further description of these charges and expenses, see
"Fees and Charges" in this prospectus and the descriptions of fees and charges
in each of the Fund's prospectuses. Any and all limitations on total charges and
expenses are reflected in this Fee Table.
<PAGE> 15
SUPPLEMENT ISSUED NOVEMBER 4, 1998
TO
PORTFOLIO DIRECTOR PLUS SEPARATE ACCOUNT A
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
FOR SERIES 1.40 -- 12.40
DATED SEPTEMBER 22, 1998
The Fee Table and Examples #1, #2 and #3 in the Prospectus are replaced in their
entirety by the enclosed Fee Table and Examples.
Effective October 27, 1998, The Vanguard Group has simplified the names of the
following Vanguard funds included in this prospectus and Statement of Additional
Information:
<TABLE>
<CAPTION>
OLD NAME NEW NAME
-------- --------
<S> <C>
Vanguard Fixed Income Securities Fund -- Long-Term Vanguard Long-Term Corporate Fund
Corporate Portfolio
Vanguard Fixed Income Securities Fund -- Long-Term Vanguard Long-Term Treasury Fund
U.S. Treasury Portfolio
Vanguard LifeStrategy Portfolios -- Conservative Vanguard LifeStrategy Conservative Growth Fund
Growth Portfolio
Vanguard LifeStrategy Portfolios -- Growth Portfolio Vanguard LifeStrategy Growth Fund
Vanguard LifeStrategy Portfolios -- Moderate Growth Vanguard LifeStrategy Moderate Growth Fund
Portfolio
Vanguard/Wellington Fund Vanguard Wellington Fund
Vanguard/Windsor II Vanguard Windsor II Fund
</TABLE>
10855-40A Ver. 11/98
<PAGE> 16
FEE TABLE
- --------------------------------------------------------------------------------
CONTRACT OWNER/PARTICIPANT EXPENSES(1)
<TABLE>
<S> <C>
Account Maintenance Fee ($3.75 per quarter, annualized)(2) $ 15
Maximum Surrender Charge(2) 5.00%
</TABLE>
SEPARATE ACCOUNT EXPENSES
(as a percentage of Separate Account net assets):
<TABLE>
<CAPTION>
MORTALITY ADMINISTRATION SEPARATE
AND AND ACCOUNT TOTAL
EXPENSE RISK DISTRIBUTION EXPENSE SEPARATE
FUND FEE(3) FEE(3) REIMBURSEMENT ACCOUNT FEE
---- ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation(8) 0.25% 0.35% -- 0.60%
AGSPC Capital Conservation 0.25 0.35 -- 0.60
AGSPC Government Securities 0.25 0.35 -- 0.60
AGSPC Growth 0.25 0.35 -- 0.60
AGSPC Growth & Income 0.25 0.35 -- 0.60
AGSPC International Equities 0.25 0.35 -- 0.60
AGSPC International Government Bond 0.25 0.35 -- 0.60
AGSPC MidCap Index 0.25 0.35 -- 0.60
AGSPC Money Market 0.25 0.35 -- 0.60
AGSPC Science & Technology 0.25 0.35 -- 0.60
AGSPC Small Cap Index 0.25 0.35 -- 0.60
AGSPC Social Awareness 0.25 0.35 -- 0.60
AGSPC Stock Index 0.25 0.35 -- 0.60
American Century -- Twentieth Century Ultra(4) 0.25 0.60 (0.21%) 0.64
American General Balanced(4) 0.25 0.35 (0.25) 0.35
American General Conservative Growth Lifestyle(4) 0.25 0.35 (0.25) 0.35
American General Core Bond(4) 0.25 0.35 (0.25) 0.35
American General Domestic Bond(4) 0.25 0.35 (0.25) 0.35
American General Growth Lifestyle(4) 0.25 0.35 (0.25) 0.35
American General High Yield Bond(4) 0.25 0.35 (0.25) 0.35
American General International Growth(4) 0.25 0.35 (0.25) 0.35
American General International Value(4) 0.25 0.35 (0.25) 0.35
American General Large Cap Growth(4) 0.25 0.35 (0.25) 0.35
American General Large Cap Value(4) 0.25 0.35 (0.25) 0.35
American General Mid Cap Growth(4) 0.25 0.35 (0.25) 0.35
American General Mid Cap Value(4) 0.25 0.35 (0.25) 0.35
American General Moderate Growth Lifestyle(4) 0.25 0.35 (0.25) 0.35
American General Money Market(4) 0.25 0.35 (0.25) 0.35
American General Small Cap Growth(4) 0.25 0.35 (0.25) 0.35
American General Small Cap Value(4) 0.25 0.35 (0.25) 0.35
American General Socially Responsible(4) 0.25 0.35 (0.25) 0.35
American General Strategic Bond(4) 0.25 0.35 (0.25) 0.35
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio(4) 0.25 0.60 (0.15) 0.70
Founders Growth(4) 0.25 0.60 (0.25) 0.60
Neuberger&Berman Guardian Trust(4) 0.25 0.60 (0.25) 0.60
Putnam Global Growth(4) 0.25 0.60 (0.25) 0.60
Putnam New Opportunities(4) 0.25 0.60 (0.25) 0.60
Putnam OTC & Emerging Growth(4) 0.25 0.60 (0.25) 0.60
Scudder Growth and Income(4) 0.25 0.60 (0.25) 0.60
T. Rowe Price Small-Cap Stock 0.25 0.60 -- 0.85
Templeton Foreign -- Class 1(4) 0.25 0.60 (0.25) 0.60
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 0.25 0.60 -- 0.85
Templeton International -- Class 1 0.25 0.60 -- 0.85
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio(5) 0.25 0.60 (0.25) 0.60
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio(5) 0.25 0.60 (0.25) 0.60
Vanguard LifeStrategy Conservative Growth Portfolio 0.25 0.60 -- 0.85
Vanguard LifeStrategy Growth Portfolio 0.25 0.60 -- 0.85
Vanguard LifeStrategy Moderate Growth Portfolio 0.25 0.60 -- 0.85
Vanguard/Wellington 0.25 0.60 -- 0.85
Vanguard/Windsor II 0.25 0.60 -- 0.85
</TABLE>
<PAGE> 17
- --------------------------------------------------------------------------------
FUND ANNUAL EXPENSES
(as a percentage of net assets):
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES EXPENSES EXPENSES
(AFTER EXPENSE 12B-1 (AFTER EXPENSE (AFTER EXPENSE
FUND REIMBURSEMENT) FEES REIMBURSEMENT)(6) REIMBURSEMENT)
---- -------------- ----- ----------------- --------------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation(8) 0.50% -- 0.07% 0.57%
AGSPC Capital Conservation 0.50 -- 0.07 0.57
AGSPC Government Securities 0.50 -- 0.06 0.56
AGSPC Growth 0.80 -- 0.06 0.86
AGSPC Growth & Income 0.75 -- 0.06 0.81
AGSPC International Equities 0.35 -- 0.07 0.42
AGSPC International Government Bond 0.50 -- 0.06 0.56
AGSPC MidCap Index 0.34 -- 0.06 0.40
AGSPC Money Market 0.50 -- 0.07 0.57
AGSPC Science & Technology 0.90 -- 0.06 0.96
AGSPC Small Cap Index 0.35 -- 0.06 0.41
AGSPC Social Awareness 0.50 -- 0.06 0.56
AGSPC Stock Index 0.27 -- 0.07 0.34
American Century -- Twentieth Century Ultra 1.00 -- -- 1.00
American General Balanced(10) 0.80 -- 0.02 0.82
American General Conservative Growth
Lifestyle(11) 0.10 -- -- 0.10
American General Core Bond(10) 0.50 -- 0.30 0.80
American General Domestic Bond(10) 0.60 -- 0.18 0.78
American General Growth Lifestyle(11) 0.10 -- -- 0.10
American General High Yield Bond(10) 0.70 -- 0.29 0.99
American General International Growth(10) 0.90 -- 0.25 1.15
American General International Value(10) 1.00 -- 0.04 1.04
American General Large Cap Growth(10) 0.55 -- 0.31 0.86
American General Large Cap Value(10) 0.50 -- 0.31 0.81
American General Mid Cap Growth(10) 0.65 -- 0.14 0.79
American General Mid Cap Value(10) 0.75 -- 0.30 1.05
American General Moderate Growth Lifestyle(11) 0.10 -- -- 0.10
American General Money Market(10) 0.25 -- 0.31 0.56
American General Small Cap Growth(10) 0.85 -- 0.31 1.16
American General Small Cap Value(10) 0.75 -- 0.23 0.98
American General Socially Responsible(10) 0.25 -- 0.31 0.56
American General Strategic Bond(10) 0.60 -- 0.29 0.89
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio 0.75 -- 0.03 0.78
Founders Growth 0.67 0.25% 0.18 1.10
Neuberger&Berman Guardian Trust(7) 0.84 -- 0.04 0.88
Putnam Global Growth 0.64 0.25 0.35 1.24
Putnam New Opportunities 0.50 0.25 0.31 1.06
Putnam OTC & Emerging Growth 0.56 0.25 0.35 1.16
Scudder Growth and Income 0.46 -- 0.30 0.76
T. Rowe Price Small-Cap Stock 0.77 -- 0.25 1.02
Templeton Foreign -- Class 1 0.61 0.25 0.22 1.08
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1(9) 0.60 -- 0.18 0.78
Templeton International -- Class 1(9) 0.69 -- 0.19 0.88
Vanguard Fixed Income Securities Fund -- Long-
Term Corporate Portfolio 0.03 -- 0.29 0.32
Vanguard Fixed Income Securities Fund -- Long-
Term U.S. Treasury Portfolio 0.01 -- 0.26 0.27
Vanguard LifeStrategy Conservative Growth
Portfolio -- -- -- --
Vanguard LifeStrategy Growth Portfolio -- -- -- --
Vanguard LifeStrategy Moderate Growth Portfolio -- -- -- --
Vanguard/Wellington 0.04 -- 0.25 0.29
Vanguard/Windsor II 0.15 -- 0.22 0.37
</TABLE>
- ------------
(1) Premium taxes are not shown here, but may be charged by some states. See:
"Premium Tax Charge" in this prospectus.
(2) Reductions in the surrender charge and the account maintenance fee are
available if certain conditions are met. See "Reduction or Waiver of
Account Maintenance Fee, Surrender, Mortality and Expense Risk Fee or
Administration and Distribution Fee Charges" and "Exceptions to Surrender
Charge" in this prospectus.
(3) Reductions in the mortality and expense risk fee or administration and
distribution fee may be available for plan types meeting certain criteria.
See "Reduction or Waiver of Account Maintenance Fee, Surrender, Mortality
and Expense Risk Fee or Administration Fee Charges" in this prospectus.
(4) For these Funds the Total Separate Account Fee equals the VALIC Separate
Account A mortality and expense risk fee plus the administration and
distribution fee reduced by the Separate Account Expense Reimbursement.
Pursuant to the Separate Account Expense Reimbursement the Company's
charges to these Divisions are reduced by an amount equal to payments from
the underlying Fund and/or its affiliate or distributors for administrative
<PAGE> 18
- --------------------------------------------------------------------------------
and shareholder services provided by the Company. See "Fees and Charges --
Separate Account Expense Reimbursement" in this prospectus for more
information.
The following Funds and/or their affiliates or distributors pay
administrative, shareholder service or distribution fees to the Company:
American Century -- Twentieth Century (0.21%), American General Funds
(0.25%), Dreyfus (0.15%), Founders (0.25%), Neuberger&Berman (0.25%),
Putnam (0.25%), Scudder (0.25%) and Templeton (0.25%) With respect to
American Century -- Twentieth Century Ultra Fund, the Fund pays fees to the
Company of 0.20% on assets in excess of $0 but less than $75 million, and
0.25% on assets in excess of $75 million.
(5) For these Funds the Total Separate Account Fee equals the VALIC Separate
Account A mortality and expense risk fee plus the administration and
distribution fee reduced by the Separate Account Expense Reimbursement. The
Separate Account Expense Reimbursement reflects a voluntary expense
reimbursement made by the Company directly to the Division which may be
terminated by the Company at any time without notice.
(6) OTHER EXPENSES includes custody, accounting, reports to shareholders,
audit, legal, administrative and other miscellaneous expenses. See each
Fund's prospectus for a detailed explanation of these fees.
(7) Neuberger&Berman Guardian Trust ("Trust") has identical investment
objectives and policies and invests in, the same portfolio as
Neuberger&Berman Guardian Fund ("Fund"). Both the Fund and the Trust are
managed by Neuberger&Berman Management Inc. ("N&B"). N&B voluntarily bears
certain expenses of the Trust so that the Trust's expense ratio per annum
will not exceed the expense ratio per annum of the Fund by more than 0.10%
of the Trust's average daily net assets. This arrangement can be terminated
on sixty days' notice. For this Fund, MANAGEMENT FEES include
administration expenses. For the Trust's 1997 fiscal year, N&B did not bear
any expenses.
(8) The AGSPC Asset Allocation Fund was formerly known as the Timed Opportunity
Fund.
(9) For these Funds Management fees and Total Fund Expenses have been restated
to reflect the management fee schedule approved by shareholders and
effective May 1, 1997. See Fund prospectus for details. Actual Management
Fees and Total Fund Expenses during 1997 were lower.
(10) After expense reimbursement. In the absence of the expense reimbursement,
management fees, other expenses and total fund operating expenses,
respectively, would be: Balanced Fund, 0.80%, 0.80% and 1.60%; Core Bond
Fund, 0.50%, 0.86% and 1.36%; Domestic Bond Fund, 0.60%, 0.57% and 1.17%;
High Yield Bond Fund, 0.70%, 0.83% and 1.53%; International Growth Fund,
0.90%, 0.71% and 1.61%; International Value Fund, 1.00%, 0.70% and 1.70%;
Large Cap Growth Fund, 0.55%, 0.58% and 1.13%; Large Cap Value Fund, 0.50%,
0.58% and 1.08%; Mid Cap Growth Fund, 0.65%, 0.64% and 1.29%; Mid Cap Value
Fund, 0.75%, 0.64% and 1.39%; Money Market Fund, 0.25%, 0.86% and 1.11%;
Small Cap Growth Fund, 0.85%, 0.62% and 1.47%; Small Cap Value Fund, 0.75%,
0.63% and 1.38%; and Socially Responsible Fund, 0.25%, 0.87% and 1.12%; and
Strategic Bond Fund, 0.60%, 0.90% and 1.50%.
(11) Total Combined Operating Expenses based on estimated total average weighted
combined operating expenses for the American General Conservative Growth
Lifestyle Fund is 1.00%, American General Growth Lifestyle Fund is 1.09%
and American General Moderate Growth Lifestyle Fund is 1.03%. Estimated
Total Combined Operating Expenses of each Lifestyle Fund is based on the
Total Fund Operating Expenses of the Underlying Series Company Funds and
the Lifestyle Funds, assuming each Lifestyle Fund's projected asset
allocation among the Underlying Series Company Funds is maintained.
<PAGE> 19
- --------------------------------------------------------------------------------
EXAMPLE #1 -- Assuming No Account Maintenance Fee and
No Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses. You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract without a surrender charge or
account maintenance fee imposed, invested in a single Separate Account Division
as listed below, assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $12 $ 37 $ 64 $143
AGSPC Capital Conservation Division 7 12 37 64 143
AGSPC Government Securities Division 8 12 37 64 141
AGSPC Growth Division 15 15 46 80 175
AGSPC Growth & Income Division 16 14 45 77 170
AGSPC International Equities Division 11 10 32 56 125
AGSPC International Government Bond Division 13 12 37 64 141
AGSPC MidCap Index Division 4 10 32 55 123
AGSPC Money Market Division 6 12 37 64 143
AGSPC Science & Technology Division 17 16 49 85 186
AGSPC Small Cap Index Division 14 10 32 56 124
AGSPC Social Awareness Division 12 12 37 64 141
AGSPC Stock Index Division 10 10 30 52 116
American Century -- Twentieth Century Ultra Division 31 17 52 89 195
American General Balanced Division 42 12 37 64 143
American General Conservative Growth Lifestyle Division 50 5 14 25 57
American General Core Bond Division 58 12 37 63 140
American General Domestic Bond Division 43 12 36 62 138
American General Growth Lifestyle Division 48 5 14 25 57
American General High Yield Bond Division 60 14 42 74 162
American General International Growth Division 33 15 47 82 180
American General International Value Division 34 14 44 76 167
American General Large Cap Growth Division 39 12 38 67 147
American General Large Cap Value Division 40 12 37 64 141
American General Mid Cap Growth Division 37 12 36 63 139
American General Mid Cap Value Division 38 14 44 77 168
American General Moderate Growth Lifestyle Division 49 5 14 25 57
American General Money Market Division 44 9 29 50 112
American General Small Cap Growth Division 35 15 48 82 181
American General Small Cap Value Division 36 14 42 73 161
American General Socially Responsible Division 41 9 29 50 112
American General Strategic Bond Division 59 13 39 68 150
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 12 36 62 138
Founders Growth Division 30 17 54 92 201
Neuberger&Berman Guardian Trust Division 29 15 47 81 177
Putnam Global Growth Division 28 19 58 100 216
Putnam New Opportunities Division 26 17 52 90 197
Putnam OTC & Emerging Growth Division 27 18 55 96 208
Scudder Growth and Income Division 21 14 43 75 164
T. Rowe Price Small-Cap Stock Division 51 19 59 101 220
Templeton Foreign -- Class 1 Division 32 17 53 91 199
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 12 36 62 138
Templeton International -- Class 1 Division 20 13 39 68 149
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio Division 22 9 29 51 114
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio Division 23 9 28 48 108
Vanguard LifeStrategy Conservative Growth Portfolio Division
54 9 27 47 105
Vanguard LifeStrategy Growth Portfolio Division 52 9 27 47 105
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 9 27 47 105
Vanguard/Wellington Division 25 12 36 63 139
Vanguard/Windsor II Division 24 12 39 67 148
</TABLE>
<PAGE> 20
- --------------------------------------------------------------------------------
EXAMPLE #2 -- Assuming No Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses. You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract without a surrender charge
imposed, invested in a single Separate Account Division as listed below,
assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $12 $39 $ 67 $149
AGSPC Capital Conservation Division 7 12 39 67 149
AGSPC Government Securities Division 8 12 39 67 148
AGSPC Growth Division 15 15 48 83 181
AGSPC Growth & Income Division 16 15 46 80 176
AGSPC International Equities Division 11 11 34 59 132
AGSPC International Government Bond Division 13 12 39 67 148
AGSPC MidCap Index Division 4 11 34 58 129
AGSPC Money Market Division 6 12 39 67 149
AGSPC Science & Technology Division 17 16 51 88 192
AGSPC Small Cap Index Division 14 11 34 59 131
AGSPC Social Awareness Division 12 12 39 67 148
AGSPC Stock Index Division 10 10 32 55 122
American Century -- Twentieth Century Ultra Division 31 17 53 92 201
American General Balanced Division 42 12 39 67 149
American General Conservative Growth Lifestyle Division 50 5 16 28 64
American General Core Bond Division 58 12 38 66 147
American General Domestic Bond Division 43 12 38 65 144
American General Growth Lifestyle Division 48 5 16 28 64
American General High Yield Bond Division 60 14 44 76 168
American General International Growth Division 33 16 49 85 186
American General International Value Division 34 15 46 79 174
American General Large Cap Growth Division 39 13 40 70 153
American General Large Cap Value Division 40 12 39 67 148
American General Mid Cap Growth Division 37 12 38 66 145
American General Mid Cap Value Division 38 15 46 80 175
American General Moderate Growth Lifestyle Division 49 5 16 28 64
American General Money Market Division 44 10 31 53 119
American General Small Cap Growth Division 35 16 49 85 187
American General Small Cap Value Division 36 14 44 76 167
American General Socially Responsible Division 41 10 31 53 119
American General Strategic Bond Division 59 13 41 71 157
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 16 49 84 183
Founders Growth Division 30 18 55 95 207
Neuberger&Berman Guardian Trust Division 29 16 49 84 183
Putnam Global Growth Division 28 19 60 103 222
Putnam New Opportunities Division 26 17 54 93 203
Putnam OTC & Emerging Growth Division 27 18 57 98 214
Scudder Growth and Income Division 21 14 45 77 170
T. Rowe Price Small-Cap Stock Division 51 20 61 104 225
Templeton Foreign -- Class 1 Division 32 18 55 94 205
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 17 53 92 200
Templeton International -- Class 1 Division 20 18 56 97 211
Vanguard Fixed Income Securities Fund --
Long-Term Corporate Portfolio Division 22 10 31 54 120
Vanguard Fixed Income Securities Fund --
Long-Term U.S. Treasury Portfolio Division 23 9 30 51 114
Vanguard LifeStrategy Conservative Growth Portfolio Division
54 9 29 50 112
Vanguard LifeStrategy Growth Portfolio Division 52 9 29 50 112
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 9 29 50 112
Vanguard/Wellington Division 25 12 38 66 145
Vanguard/Windsor II Division 24 13 40 70 155
</TABLE>
<PAGE> 21
- --------------------------------------------------------------------------------
EXAMPLE #3 -- Assuming Surrender at the End of the Period Shown:
- --------------------------------------------------------------------------------
Total Expenses: You would pay the following expenses on a $1,000 investment
under a typical Portfolio Director Plus Contract invested in a single Separate
Account Division as listed below, assuming a 5% annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AGSPC Asset Allocation Division 5 $59 $ 89 $117 $149
AGSPC Capital Conservation Division 7 59 89 117 149
AGSPC Government Securities Division 8 59 89 117 148
AGSPC Growth Division 15 62 98 133 181
AGSPC Growth & Income Division 16 62 96 130 176
AGSPC International Equities Division 11 58 84 109 132
AGSPC International Government Bond Division 13 59 89 117 148
AGSPC MidCap Index Division 4 58 84 108 129
AGSPC Money Market Division 6 59 89 117 149
AGSPC Science & Technology Division 17 63 101 138 192
AGSPC Small Cap Index Division 14 58 84 109 131
AGSPC Social Awareness Division 12 59 89 117 148
AGSPC Stock Index Division 10 57 82 105 122
American Century -- Twentieth Century Ultra Division 31 64 103 142 201
American General Balanced Division 42 59 89 117 149
American General Conservative Growth Lifestyle Division 50 52 66 78 64
American General Core Bond Division 58 59 88 116 147
American General Domestic Bond Division 43 59 88 115 144
American General Growth Lifestyle Division 48 52 66 78 64
American General High Yield Bond Division 60 61 94 126 168
American General International Growth Division 33 62 99 135 186
American General International Value Division 34 61 96 129 174
American General Large Cap Growth Division 39 60 90 120 153
American General Large Cap Value Division 40 59 89 117 148
American General Mid Cap Growth Division 37 59 88 116 145
American General Mid Cap Value Division 38 61 96 130 175
American General Moderate Growth Lifestyle Division 49 52 66 78 64
American General Money Market Division 44 57 81 103 119
American General Small Cap Growth Division 35 62 99 135 187
American General Small Cap Value Division 36 61 94 126 167
American General Socially Responsible Division 41 57 81 103 119
American General Strategic Bond Division 59 60 91 121 157
Dreyfus Variable Investment Fund
Dreyfus Small Cap Portfolio Division 18 62 98 134 183
Founders Growth Division 30 64 105 145 207
Neuberger&Berman Guardian Trust Division 29 62 98 134 183
Putnam Global Growth Division 28 66 109 153 222
Putnam New Opportunities Division 26 64 104 143 203
Putnam OTC & Emerging Growth Division 27 65 107 148 214
Scudder Growth and Income Division 21 61 95 128 170
T. Rowe Price Small-Cap Stock Division 51 66 110 154 225
Templeton Foreign -- Class 1 Division 32 64 104 144 205
Templeton Variable Products Series Fund
Templeton Asset Allocation -- Class 1 Division 19 64 103 142 200
Templeton International -- Class 1 Division 20 65 106 147 211
Vanguard Fixed Income Securities Fund -- Long-Term Corporate
Portfolio Division 22 57 81 104 120
Vanguard Fixed Income Securities Fund -- Long-Term U.S.
Treasury Portfolio Division 23 56 80 101 114
Vanguard LifeStrategy Conservative Growth Portfolio Division
54 56 79 100 112
Vanguard LifeStrategy Growth Portfolio Division 52 56 79 100 112
Vanguard LifeStrategy Moderate Growth Portfolio Division 53 56 79 100 112
Vanguard/Wellington Division 25 59 88 116 145
Vanguard/Windsor II Division 24 60 90 120 155
</TABLE>
Note: These examples should not be considered representations of past or future
expenses for VALIC Separate Account A or for any Fund. Actual expenses may be
greater or less than those shown above. Similarly, the 5% annual rate of return
assumed in the examples is not an estimate or guarantee of future investment
performance. The purpose of the Fee Table above is to help Contract Owners and
Participants understand the various expenses of VALIC Separate Account A and the
Funds which are, in effect, passed on to the Contract Owners and Participants.
This Fee Table shows all charges and expenses which may be deducted from the
assets of VALIC Separate Account A and from the Funds in which VALIC Separate
Account A invests. For a further description of these charges and expenses, see
"Fees and Charges" in this prospectus and the descriptions of fees and charges
in each of the Fund's prospectuses. Any and all limitations on total charges and
expenses are reflected in this Fee Table.
