<PAGE> 1
AMERICAN GENERAL SERIES PORTFOLIO COMPANY
SUPPLEMENT ISSUED JANUARY 20, 1999
TO PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
DATED OCTOBER 1, 1998
FOR THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION OF ALL FUNDS:
This Supplement incorporates certain information provided in a previous
supplement dated November 24, 1998. The following individuals were recently
elected by the shareholders to serve as directors of the Series Company:
<TABLE>
<S> <C>
Dr. Judith L. Craven Physician, Administrator; President, United Way of Texas
3212 Ewing Street Gulf Coast (1992-1998); Director, A.H. Belo Corporation
Houston, Texas 77004 (1993-Present); Director, Sysco Corporation (1996-Present);
Date of Birth: 10/06/45 Director, Sisters of Charity of the Incarnate Word
(1996-Present).
Dr. Timothy J. Ebner Professor, Departments of Neurosurgery and Physiology,
17994 NW Union Street University of Minnesota (1991-Present). Formerly, Consultant
Elk River, Minnesota 55330 EMPI Inc. (1994-1995) and Medtronic Inc. (1997-1998).
Date of Birth: 07/15/49
Judge Gustavo E. Gonzales, Jr. Municipal Court Judge, Dallas, Texas; Director, Downtown
8320 Coolgreen Drive Dallas YMCA Board (1996-Present); Director, Dallas Easter
Dallas, Texas 75228 Seals Society (1997-Present).
Date of Birth: 07/27/40
John A. Graf* President and Director, The Variable Annuity Life Insurance
2929 Allen Parkway Company ("VALIC") and American General Annuity Insurance
Houston, Texas 77019 Company ("AGAIC") (1998 to Present). Director, Boy Scouts of
Date of Birth: 09/14/59 America. Formerly, Director (1993-1998), President and Chief
Executive Officer (1997-1998), Vice Chairman (1996-1997),
Chief Marketing Officer (1993-1997) and Executive Vice
President (1993-1996), Western National Life Insurance
Corporation and Senior Vice President, Conseco,
Inc.(1987-1993).
Dr. John E. Maupin, Jr. President, Meharry Medical College, Nashville, Tennessee;
2 Morningside Court Nashville Advisory Board Member, First American National
Nashville, Tennessee 37215 Bank (1996- Present); Director, Monarch Dental Corporation
Date of Birth: 10/28/46 (1997-Present). Formerly, Executive Vice President,
Morehouse School of Medicine, Atlanta, Georgia (1989-1994).
Craig R. Rodby* Vice Chairman (1997-Present) and Chief Financial Officer
2929 Allen Parkway (1998- Present), VALIC and AGAIC (1998-Present). Formerly,
Houston, Texas 77019 Senior Vice President-Financial Management, ReliaStar
Date of Birth: 07/05/49 (1994-1997) and President and Chief Executive Officer,
Northern Life Insurance Company (1990-1994).
</TABLE>
- ---------------
* Interested persons of the Series Company as defined in the 1940 Act
specifically because of their capacity as officers, directors or consultants
of the Series Company, VALIC or American General Corporation.
FOR THE PROSPECTUS ONLY:
FOR THE SOCIAL AWARENESS FUND ONLY:
Effective immediately, Maruti D. More has assumed responsibility for the
portfolio management of the Social Awareness Fund. Mr. More has been Vice
President -- Investments of American General Series Portfolio Company since July
1998. Since April 1998, Mr. More serves as Vice President of The Variable
Annuity Life Insurance Company and American General Investment Management, L.P.
From 1993 to 1995, Mr. More was Managing Director, Marketable Securities at Paul
Revere Investment Management Corporation.
<PAGE> 2
FOR THE CAPITAL CONSERVATION FUND ONLY:
Effective immediately, Craig A. Mitchell has assumed responsibility for the
portfolio management of the Capital Conservation Fund. Mr. Mitchell has been
Vice President and Senior Portfolio Manager of American General Investment
Management, L.P. since April 1998. Mr. Mitchell joined American General
Corporation in May 1995. From July 1992 to April 1995, Mr. Mitchell served as
Assistant Portfolio Manager and, subsequently, Portfolio Manager at Providian
Corporation.
FOR THE MONEY MARKET FUND ONLY:
The Board of Directors recently approved an amendment to the Money Market
Fund's non-fundamental investment restriction relating to maturity standards of
investments to include securities subject to demand features. The section in the
Prospectus entitled "Types of Investments" is supplemented as follows:
Variable Rate Demand Notes
Variable rate demand notes ("VRDNs") are either taxable or tax-exempt
obligations containing a floating or variable interest rate adjustment
formula, together with an unconditional right to demand payment of the
unpaid principal balance plus accrued interest upon a short notice period,
generally not to exceed seven days. The Money Market Fund may invest in
participation VRDNs, which provide the Fund with an undivided interest in
underlying VRDNs held by major investment banking institutions. Any
purchase of VRDNs will meet applicable diversification and concentration
requirements, and the conditions established by the SEC under which such
securities may be considered to have remaining maturities of 397 days or
less.
FOR THE GROWTH AND INCOME FUND ONLY:
On January 19, 1999, the Board of Directors of the Series Company approved
the termination of Value Line, Inc. as Sub-adviser of the Growth & Income Fund.
VALIC expects to re-assume direct management of the Fund's investment portfolio
on February 22, 1999.
FOR ALL FUNDS:
On January 19, 1999, the Board of Directors of the Series Company approved
certain changes to the Funds' investment restrictions with respect to illiquid
and restricted securities. Specifically, the section in the Prospectus entitled
"Illiquid and Restricted Securities" under "Types of Investments" is re-titled
and replaced in its entirety with the following:
Illiquid Securities
An illiquid security is one that may not be frequently traded or
cannot be disposed of promptly within seven days and in the usual course of
business without taking a materially reduced price. Illiquid securities
include, but are not limited to, time deposits and repurchase agreements
not maturing within seven days and restricted securities.
A restricted security is one that has not been registered with the SEC
and, therefore, cannot be sold in the public market. Securities eligible
for sale under Rule 144A and commercial paper offered pursuant to Section
4(2) of the Securities Act of 1933, as amended, are not deemed by VALIC or
the Sub-adviser to be illiquid solely by reason of being restricted.
Instead, VALIC or the Sub-adviser will determine whether such securities
are liquid based on trading markets and pursuant to guidelines adopted by
the Series Company's Board of Directors. If VALIC or the Sub-adviser
concludes that a security is not liquid, that investment will be included
within the Fund's limitation on illiquid securities.
All the Funds may buy illiquid securities, but are restricted as to
how much money they may invest in them. See "Limitations" below.
The related sidebar should only reference illiquid securities.
In the "Fact Sheets" for each Fund, please disregard all references to
restricted securities under "Investment Strategy." The stated limit should refer
to illiquid securities only.
<PAGE> 3
In addition, the "Fact Sheets" for the MIDCAP INDEX FUND, SMALL CAP INDEX
FUND and STOCK INDEX FUND should reflect under "Investment Strategy" that up to
10% of their net assets may be invested in illiquid securities.
FOR THE STATEMENT OF ADDITIONAL INFORMATION OF ALL FUNDS:
The following non-fundamental investment restriction applicable to each
Fund is hereby added in the Statement of Additional Information:
The Fund may not invest more than 10% (15% in the case of the Growth Fund,
Growth & Income Fund and Science & Technology Fund) of the Fund's net assets
(taken at the greater of cost or market value) in securities that are illiquid
or not readily marketable including time deposits and repurchase agreements not
maturing within seven days or restricted securities, but excluding (a) Rule 144A
securities that have been determined to be liquid by VALIC or the Sub-adviser,
in accordance with guidelines adopted by the Company's Board of Directors, and
(b) commercial paper that is sold under Section 4(2) of the 1933 Act which: (i)
is not traded flat or in default as to interest or principal; (ii) is rated in
one of the two highest categories by at least two nationally recognized
statistical rating organizations and VALIC or the Sub-adviser, in accordance
with guidelines adopted by the Company's Board of Directors, has determined the
commercial paper to be liquid; or (iii) is rated in one of the two highest
categories by one nationally recognized statistical rating agency and VALIC or
the Sub-adviser, in accordance with guidelines adopted by the Company's Board of
Directors, has determined that the commercial paper is of equivalent quality and
is liquid.
VA 9017-C