<PAGE> 1
AMERICAN GENERAL SERIES PORTFOLIO COMPANY PROSPECTUS
SUPPLEMENT ISSUED JANUARY 1, 1997
TO PROSPECTUS DATED OCTOBER 1, 1996
GROWTH FUND AND STOCK INDEX FUND EXPENSES FOR PARTICIPANTS IN THE AMERICAN
GENERAL EMPLOYEES' THRIFT AND INCENTIVE PLAN, THE AMERICAN GENERAL AGENTS' AND
MANAGERS' THRIFT PLAN AND THE VALIC AGENTS' AND MANAGERS' THRIFT PLAN.
Participants in the American General Employees' Thrift and Incentive Plan, the
American General Agents' and Managers' Thrift Plan and the VALIC Agents' and
Managers' Thrift Plan have available several mutual fund investment options. Two
of these mutual fund options are the Growth Fund and the Stock Index Fund,
respectively (the "Funds"). The Fund Expense Table below reflects the various
fund expenses which would be incurred by a participant who chose either or both
of these investment options.
FUND EXPENSE TABLE
<TABLE>
<CAPTION>
GROWTH STOCK INDEX
FUND FUND
----- -----
<S> <C> <C>
Shareholder transaction fees................................ None None
Annual operating expenses (as a percentage of net assets):
Management fee(1)......................................... 0.80% 0.28%
Other expenses............................................ 0.03% 0.07%
---- ----
Total fund operating expenses...................... 0.83% 0.35%
==== ====
</TABLE>
(1) Annual management fees for the Growth Fund are based on a flat rate of
0.80%. Annual management fees for the Stock Index Fund are based on the
Fund's average net assets of approximately $1,498 million at an annual
rate of .35% of the first $500 million and .25% on the excess over $500
million.
EXAMPLE
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following expenses on a
$1,000 investment assuming a 5% annual
return and redemption at the end of each
period:
Growth Fund.............................. $9 $27 $46 $103
== === === ===
Stock Index Fund......................... $4 $11 $20 $ 45
== === === ===
</TABLE>
Note: This example should not be considered a representation of past or
future expenses of the Funds. Similarly, the 5% annual rate of return
assumed in the example is not an estimate or guarantee of future investment
performance. The purpose of the expense table above is to assist
participants in understanding the various expenses of the Funds.
For more information about the Growth Fund and Stock Index Fund, their
investment objectives, investment programs, investment restrictions and
expenses, please refer to the American General Series Portfolio Company
Prospectus dated October 1, 1996.
VA9017-E (Rev. 1/97)
