American General Series Portfolio Company Supplement to
Prospectus Dated October 1,
1999
Date of this Supplement: April 26, 2000
International Government Bond Fund
(pages 14 and 15)
VALIC, as investment adviser to the International Government
Bond Fund, relies, in part, on the Salomon Brothers Non-U.S.
Dollar World Government Bond Index (the "Index") to choose
the countries in which the Fund may invest. Salomon
Brothers announced that effective April 1, 2000, the minimum
credit rule for including government bonds in the Index will
be lowered to include bonds rated BBB- by Standard & Poor's
Rating Group or Baa3 by Moody's Investors Service, Inc. In
addition, it was announced that effective July 1, 2000,
Greece will be included as one of the designated countries
tracked by the Index. Therefore, any references on pages 14
and 15 of the prospectus to "high quality debt securities"
shall be changed to "investment grade debt securities" per
the Board of Directors of the Fund:
Investment Objective
Seeks high current income through investments primarily in
investment grade debt securities issued or guaranteed by
foreign governments.
Investment Strategy
The Fund aims to give you foreign investment opportunities
primarily in investment grade government and government
sponsored debt securities.
In the second sentence of Investment Strategy, add Greece to
the list of countries tracked by the Index.
Chart of Fund Investments and Percent of Fund's Assets
For the 65% and 35% categories, change high quality to
investment grade.
All Funds
The "Investment Objective" section included in the "Fact
Sheet" should reflect that the investment objective may be
changed by the Board of Directors without
shareholder approval.
Although the Series Company normally redeems Fund shares for
cash, the Series Company has the right to pay separate
accounts assets other than cash for redemption
amounts exceeding, in any 90-day period, $250,000 or 1% of
the net asset value of the affected Fund, whichever is
less.
The Series Company relies upon an exemptive order from
the SEC which permits VALIC, subject to certain
conditions, to select new sub-advisers or replace
existing subadvisers without first obtaining shareholder
approval for the change. The Board of Directors,
including a majority of the "independent" Directors,
must approve each new sub-advisory agreement. This
allows VALIC to act more quickly to change subadvisers
when it determines that a change is beneficial to
shareholders by avoiding the delay of calling and
holding shareholder meetings to approve each change.
In accordance with the exemptive order, the Series
Company will provide investors with information about each
new sub-adviser and its sub-advisory agreement within 90
days of the hiring of a new sub-adviser. VALIC is
responsible for selecting, monitoring, evaluating and
allocating assets to the Subadvisers and oversees the
Sub-advisers' compliance with the relevant Fund's
investment objective, policies and restrictions.
Delete the third and fourth paragraphs on page 35 under
"Investment Adviser." Add Capital Conservation Fund,
Asset Allocation Fund, and Government Securities Fund to
the list of funds in the first sentence of the fifth
paragraph.
Social Awareness Fund
The following replaces the second paragraph of
the section entitled "Investment
Objective" in the Fund's "Fact Sheet."
The Fund does not invest in companies that are
significantly engaged in:
* the
production of
nuclear energy;
* the
manufacture of military
weapons or delivery
systems;
* the
manufacture of
alcoholic
beverages or
tobacco products;
* the
operation of gambling
casinos; or
* business practices or
the production of products that
significantly pollute the
environment.
This supplement supersedes all
previous supplements.
VA 9017-C
