Supplement to the Statement of Additional
Information ("SAI"):
American General Series Portfolio Company
SAI dated October 1, 1999
American General Series Portfolio Company 2
SAI dated November 2, 1998
American General Series Portfolio Company 3
SAI dated January 3, 2000
For each SAI, insert the following below the
30 day current yield information in the
"Performance and Yield Information" section.
Distribution Rate Calculation
The Funds may advertise a non-
standardized distribution rate. The
distribution rate may be calculated as
frequently as daily, based on the latest
normal dividend paid. The latest normal
dividend is annualized by multiplying the
dividend by a factor based on the dividend
frequency (12 for monthly or 4 for
quarterly). The result is then divided by
the higher of the current net asset value or
the maximum offering price. For example, a
bond fund may pay a monthly dividend of
0.04536. This is multiplied by 12 since it
is a monthly dividend. The result, 0.54432,
is divided by the offering price of $9.89.
That equals a distribution rate of 5.50%.
The distribution rate measures the
level of the ordinary income, including
short-term capital gains, that is actually
paid out to investors. This is different
from fund yield, which is a measure of the
income earned by a fund's investments, but
which may not be directly paid out to
investors. Total return measures the income
earned, as does the yield, but also measures
the effect of any realized or unrealized
appreciation or depreciation of the fund's
investments. The distribution rate will be
calculated separately for each class of
shares. The calculation assumes that no CDSC
is paid for Class B shares.
