Allmerica Investment Trust
(Supplement to Prospectuses dated April 29, 1996
The following information replaces the disclosure found in
the Trust's Prospectuses under "Certain Investment
Strategies and Policies -- Restricted Securities:"
Restricted Securities (applicable to the Select
International Equity Fund, Select Aggressive Growth Fund,
Select Capital Appreciation Fund, Select Growth Fund, Select
Growth and Income Fund, Select Income Fund, Investment Grade
Income Fund, and Government Bond Fund).
The Funds also may purchase fixed-income securities
that are not registered under the Securities Act of 1933
("1933 Act") ("restricted securities"), but can be offered
and sold to "qualified institutional buyers" under Rule 144A
of the 1933 Act. However, each Fund will not invest more
than 15% of its assets in restricted securities (as defined
in its investment restrictions) unless the Board of Trustees
determines, based upon a continuing review of the trading
markets for the specific restricted security, that such
restricted securities are liquid. The Board of Trustees has
adopted guidelines and delegated to the Manager the daily
function of determining and monitoring liquidity of
restricted securities. The Board, however, will retain
sufficient oversight and be responsible ultimately for the
determinations. Since it is not possible to predict with
assurance exactly how this market for restricted securities
sold and offered under Rule 144A will develop, the Board
will carefully monitor the Funds' investments in securities,
focusing on such important factors, among others, as
valuation, liquidity, and availability of information. This
investment practice could have the effect of increasing the
level of illiquidity in the Fund to the extent that
qualified institutional buyers become for a time
uninterested in purchasing these restricted securities. As
a result, the Funds might not be able to sell these
securities when their Sub-Adviser wishes to do so, or might
have to sell them at less than fair value. In addition,
market quotations are less readily available. Therefore,
judgment may at times play a greater role in valuing these
securities than in the case of unrestricted securities.
The following information replaces the first paragraph of
the disclosure found in the Trust's Prospectuses under
"Certain Investment Strategies and Policies -- Asset-Backed
Securities and Mortgage-Backed Securities:"
Asset-Backed Securities and Mortgage-Backed Securities
(applicable to the Investment Grade Income Fund and
Government Bond Fund)
The Funds may purchase asset-backed securities, which
represent a participation in, or are secured by and payable
from, a stream of payments generated by particular assets,
frequently a pool of assets similar to one another. Assets
generating such payments include instruments such as motor
vehicle installment purchase obligations, credit card
receivables, and home equity loans. Payment of principal
and interest my be guaranteed for certain amounts and time
periods by a letter of credit issued by a financial
institution unaffiliated with the issuer of the securities.
The estimated life of an asset-backed security varies with
the prepayment experience of the underlying debt
instruments. The rate of such prepayments, and hence the
life of the asset-backed security, will be primarily a
function of current market rates, although other economic
and demographic factors will be involved. Under certain
interest rates and prepayment rate scenarios, the Funds may
fail to recoup fully their investment in asset-backed
securities. Each Fund will not invest more than 205 of its
total assets in asset-backed securities.
Dated: November 21, 1996
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