Anchor National Life Insurance Company
Variable Annuity Account Five
Supplement to the Prospectus dated April 3, 1997
The seventh full paragraph under the subheading entitled "Variable Investment
Option: The STRATEGIES" on page 9 of the prospectus has been replaced with
the following paragraph:
Each STRATEGY uses an asset allocation investment approach to achieve its
objective and allocates your money into underlying investment portfolios
which invest in a combination of stocks, both domestic and international,
bonds and cash. Although the asset mix within each STRATEGY will vary over
time, each STRATEGY has a neutral asset allocation mix, including a cash
component in order to reflect the anticipated cash holdings required to
rebalance each STRATEGY, as reflected on the following pages. Additionally,
after the rebalancing described on page 12, the contract value within each
STRATEGY will be allocated to the various underlying investment portfolios
in the percentages identified on the following pages.
The first full paragraph under the subheading entitled "STRATEGY Rebalancing"
on page 12 of the Prospectus has been replaced with the following paragraph:
Each STRATEGY is designed to meet its investment objective by allocating a
portion of your money to three different investment portfolios. In order to
maintain the mix of investment portfolios consistent with each STRATEGY's
objective, each STRATEGY within your contract will be rebalanced such that
on the first business day of each quarter (or as close to such date as is
administratively practicable) it will be allocated among the various
investment portfolios according to the percentages set forth on pages
10 and 11. Additionally, within each Multi-Managed Portfolio, your money
will be rebalanced amoung the various components. The Company also reserves
the right to rebalance any STRATEGY more frequently if deemed necessary
and in no event adverse to the interests of owners of contracts invested
in such STRATEGY. Rebalancing a STRATEGY may involve shifting a portion of
assets out of portfolios with higher returns into portfolios with relatively
lower returns.
June 24, 1997
