<PAGE> 1
PORTFOLIO DIRECTOR
SEPARATE ACCOUNT A
SUPPLEMENT ISSUED OCTOBER 14, 1999 TO
PROSPECTUS DATED MAY 1, 1999
SUMMARY
For AGSPC Stock Index Fund, AGSPC MidCap Index Fund and AGSPC Small Cap
Index Fund
On July 27, 1999, the Boards of Directors approved the termination
of Bankers Trust as a sub-adviser to each Fund. VALIC re-assumed direct
management of each Fund's investment portfolio on October 1, 1999.
For AGSPC Growth Fund
On July 27, 1999, the Board of Directors approved the termination
of T. Rowe Price Associates, Inc. as sub-adviser to the Fund and approved
the appointment of Wellington Management Company, LLP ("Wellington
Management"), as sub-adviser to the Fund, effective September 1, 1999. On
that date the investment objective of the Fund was changed from long-term
growth of capital through investment primarily in common stocks of U.S.
growth companies engaged in service-related activities to that of long-term
growth of capital through investment primarily in equity securities.
FEES AND CHARGES -- EXCEPTIONS TO SURRENDER CHARGE
We may, at our option, waive any otherwise applicable surrender
charge if you reinvest the surrender proceeds in another VALIC insurance
product. You will, however, be subject to a surrender charge in the newly
acquired product under the same terms and conditions as the original
product. For purposes of calculating any surrender charge due, you will be
considered to have acquired the new product as of the date you acquired the
original product.
FEES AND CHARGES - SEPARATE ACCOUNT EXPENSE REIMBURSEMENT
Footnote 4 to the "Fee Table" is hereby replaced in its entirety with the
following:
(4) For this Fund, 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 this Division are
reduced by certain payments received from the underlying Fund
and/or its affiliates 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.
<PAGE> 2
The section entitled "Fee and Charges-Separate Account Expense
Reimbursement" is replaced in its entirety with the following:
Some of the Mutual Funds or their affiliates may have an agreement
with the Company to pay the Company for administrative and
shareholder services it provides to the underlying Fund. The
Company may, in its discretion, apply some or all of these
payments to reduce its charges to the Division investing in that
Fund. In addition, the Company currently reimburses certain
Divisions a portion of the Company's administration and
distribution fee. Such reimbursement arrangements are, however,
voluntary and may be changed by the Company at any time. See the
Fee Table in this prospectus for an identification of those Funds
for which a reimbursement applies and the amount of the
reimbursement.
VA 9084-C
<PAGE> 3
PORTFOLIO DIRECTOR 2
SEPARATE ACCOUNT A
FOR SERIES 2.1-2.12, SERIES 2.1.20-2.12.20, AND SERIES 2.1.40-2.12.40
SUPPLEMENT ISSUED OCTOBER 14, 1999 TO
PROSPECTUS DATED MAY 1, 1999
SUMMARY
For AGSPC Stock Index Fund
On July 27, 1999, the Boards of Directors approved the termination
of Bankers Trust as a sub-adviser to each Fund. VALIC re-assumed direct
management of each Fund's investment portfolio on October 1, 1999.
For AGSPC Growth Fund
On July 27, 1999, the Board of Directors approved the termination
of T. Rowe Price Associates, Inc. as sub-adviser to the Fund and approved
the appointment of Wellington Management Company, LLP ("Wellington
Management"), as sub-adviser to the Fund, effective September 1, 1999. On
that date the investment objective of the Fund was changed from long-term
growth of capital through investment primarily in common stocks of U.S.
growth companies engaged in service-related activities to that of long-term
growth of capital through investment primarily in equity securities.
EXCHANGE PRIVILEGE
Contrary to information contained in the "Restrictions on Exchange
Privilege" section of this Prospectus, exchanges from Portfolio Director 2
to Portfolio Director will be permitted.
FEES AND CHARGES - EXCEPTIONS TO SURRENDER CHARGE
We may, at our option, waive any otherwise applicable surrender
charge if you reinvest the surrender proceeds in another VALIC insurance
product. You will, however, be subject to a surrender charge in the newly
acquired product under the same terms and conditions as the original
product. For purposes of calculating any surrender charge due, you will be
considered to have acquired the new product as of the date you acquired the
original product.
FEES AND CHARGES - SEPARATE ACCOUNT EXPENSE REIMBURSEMENT
Footnote 4 to the "Fee Table" is hereby replaced in its entirety with the
following:
(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 certain payments received from the underlying Fund
and/or its affiliates or distributors for administrative and
<PAGE> 4
shareholder services provided by the Company. See "Fees and
Charges-Separate Account Expense Reimbursement" in this prospectus
for more information.
The section entitled Summary--Fees and Charges--Separate Account Expense
Reimbursement" is replaced in its entirety with the following:
The Company may, in its discretion, reimburse to certain Divisions
some or all of the fees it receives from the Mutual Fund or its
affiliate or distributor for providing the Mutual Fund
administrative and shareholder services. In addition, the Company
currently reimburses certain Divisions a portion of the Company's
administration and distribution fee for providing Variable Account
Options. Such reimbursement arrangements are voluntary. For more
information as to which Variable Account Options have a Separate
Account Expense Reimbursement see the Fee Table.
The section entitled "Fee and Charges-Separate Account Expense
Reimbursement" is replaced in its entirety with the following:
Some of the Mutual Funds or their affiliates may have an agreement
with the Company to pay the Company for administrative and
shareholder services it provides to the underlying Fund. The
Company may, in its discretion, apply some or all of these
payments to reduce its charges to the Division investing in that
Fund. In addition, the Company currently reimburses certain
Divisions a portion of the Company's administration and
distribution fee. Such reimbursement arrangements are, however,
voluntary and may be changed by the Company at any time. See the
Fee Table in this prospectus for an identification of those Funds
for which a reimbursement applies and the amount of the
reimbursement.
VA 9875-C
<PAGE> 5
PORTFOLIO DIRECTOR PLUS
SEPARATE ACCOUNT A
FOR SERIES 1-12, SERIES 1.20-12.20, AND SERIES 1.40-12.40
SUPPLEMENT ISSUED OCTOBER 14, 1999 TO
PROSPECTUS DATED MAY 1, 1999
SUMMARY
For AGSPC Stock Index, AGSPC MidCap Index Fund, AGSPC Small Cap Index Fund
and American General Small Cap Value Fund
On July 27, 1999, the Boards of Directors approved the termination
of Bankers Trust as a sub-adviser to each Fund. VALIC re-assumed direct
management of each Fund's investment portfolio on October 1, 1999.
For AGSPC Growth Fund
On July 27, 1999, the Board of Directors approved the termination
of T. Rowe Price Associates, Inc. as sub-adviser to the Fund and approved
the appointment of Wellington Management Company, LLP ("Wellington
Management"), as sub-adviser to the Fund, effective September 1, 1999. On
that date the investment objective of the Fund was changed from long-term
growth of capital through investment primarily in common stocks of U.S.
growth companies engaged in service-related activities to that of long-term
growth of capital through investment primarily in equity securities.
MAXIMUM NUMBER OF OPTIONS
Generally, your employer's plan may select up to 30 of the 53
Variable Account Options Portfolio Director Plus offers. However, you may
be subject to further limits on how many options you may be invested in at
any one time or how many of the options you are invested in may be involved
in certain transactions at any one time.
FEES AND CHARGES - EXCEPTIONS TO SURRENDER CHARGE
We may, at our option, waive any otherwise applicable surrender
charge if you reinvest the surrender proceeds in another VALIC insurance
product. You will, however, be subject to a surrender charge in the newly
acquired product under the same terms and conditions as the original
product. For purposes of calculating any surrender charge due, you will be
considered to have acquired the new product as of the date you acquired the
original product.
<PAGE> 6
FEES AND CHARGES - SEPARATE ACCOUNT EXPENSE REIMBURSEMENT
Footnote 4 to the "Fee Table" is hereby replaced in its entirety with the
following:
(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 certain payments received from the underlying Fund
and/or its affiliates 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 section entitled Summary--Fees and Charges--Separate Account Expense
Reimbursement" is replaced in its entirety with the following:
The Company may, in its discretion, reimburse to certain Divisions
some or all of the fees it receives from the Mutual Fund or its
affiliate or distributor for providing the Mutual Fund
administrative and shareholder services. In addition, the Company
currently reimburses certain Divisions a portion of the Company's
administration and distribution fee for providing Variable Account
Options. Such reimbursement arrangements are voluntary. For more
information as to which Variable Account Options have a Separate
Account Expense Reimbursement see the Fee Table.
The section entitled "Fee and Charges-Separate Account Expense
Reimbursement" is replaced in its entirety with the following:
Some of the Mutual Funds or their affiliates may have an agreement
with the Company to pay the Company for administrative and
shareholder services it provides to the underlying Fund. The
Company may, in its discretion, apply some or all of these
payments to reduce its charges to the Division investing in that
Fund. In addition, the Company currently reimburses certain
Divisions a portion of the Company's administration and
distribution fee. Such reimbursement arrangements are, however,
voluntary and may be changed by the Company at any time. See the
Fee Table in this prospectus for an identification of those Funds
for which a reimbursement applies and the amount of the
reimbursement.
VA 10855-C
<PAGE> 7
PORTFOLIO DIRECTOR T
SEPARATE ACCOUNT A
SUPPLEMENT ISSUED OCTOBER 14, 1999 TO
PROSPECTUS DATED MAY 1, 1999
SUMMARY
For AGSPC Stock Index Fund and AGSPC Small Cap Index Fund
On July 27, 1999, the Boards of Directors approved the termination
of Bankers Trust as a sub-adviser to each Fund. VALIC re-assumed direct
management of each Fund's investment portfolio on October 1, 1999.
For AGSPC Growth Fund
On July 27, 1999, the Board of Directors approved the termination
of T. Rowe Price Associates, Inc. as sub-adviser to the Fund and approved
the appointment of Wellington Management Company, LLP ("Wellington
Management"), as sub-adviser to the Fund, effective September 1, 1999. On
that date the investment objective of the Fund was changed from long-term
growth of capital through investment primarily in common stocks of U.S.
growth companies engaged in service-related activities to that of long-term
growth of capital through investment primarily in equity securities.
FEES AND CHARGES - SEPARATE ACCOUNT EXPENSE REIMBURSEMENT
Footnote 4 to the "Fee Table" is hereby replaced in its entirety with the
following:
(4) For this Fund, 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 this Division are
reduced by certain payments received from the underlying Fund
and/or its affiliates 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.
<PAGE> 8
The section entitled "Fee and Charges-Separate Account Expense
Reimbursement" is replaced in its entirety with the following:
Some of the Mutual Funds or their affiliates may have an agreement
with the Company to pay the Company for administrative and
shareholder services it provides to the underlying Fund. The
Company may, in its discretion, apply some or all of these
payments to reduce its charges to the Division investing in that
Fund. In addition, the Company currently reimburses certain
Divisions a portion of the Company's administration and
distribution fee. Such reimbursement arrangements are, however,
voluntary and may be changed by the Company at any time. See the
Fee Table in this prospectus for an identification of those Funds
for which a reimbursement applies and the amount of the
reimbursement.
VA 10789-B
