<PAGE>
Allmerica Investment Trust
(Supplement Effective November 30, 1998 to Prospectus dated May 1, 1998)
The following investment portfolio is being offered in the attached Prospectus:
Select Growth and Income Fund
-----------------------------
Investment Objective: The Select Growth and Income Fund seeks a combination of
long-term growth of capital and current income. The Fund will invest primarily
in dividend-paying common stocks and securities convertible into common stocks.
Sub-Adviser: John A. Levin & Co., Inc. ("JAL"), One Rockefeller Plaza, 25th
Floor, New York, New York 10020, serves as Sub-Adviser to the Select Growth and
Income Fund. JAL was founded as a Delaware corporation in 1982 and is wholly
owned by Baker, Fentress & Company, a non-diversified closed-end management
investment company registered under the 1940 Act. JAL had approximately $7.4
billion in assets under management as of December 31, 1997. JAL's clients
include U.S. and foreign individuals and their related trusts and charitable
organizations, private investment partnerships, college and university
endowments, foundations and public and private pension and profit sharing plans.
Investment Policies: To achieve its objective of long-term growth of capital
and current income, the Select Growth and Income Fund will invest primarily in
dividend-paying common stocks and securities convertible into common stocks. It
may invest in a wide range of equity securities, consisting of both dividend-
paying and non-dividend paying common stocks, preferred stocks, securities
convertible into common stocks and preferred stocks and warrants. These may
include securities of large well-known companies as well as smaller growth
companies. The securities of smaller growth companies involve certain risks as
described above under the "Select Growth Fund". The Fund may hold securities
traded on one or more of the national exchanges as well as in the over-the-
counter markets. The Fund's portfolio investments are not limited to any
particular type of company or industry. The Fund may purchase individual stocks
not presently paying dividends which offer opportunities for capital growth or
future income, provided that the Sub-Adviser believes the overall portfolio is
appropriately positioned to achieve its income objective. To achieve current
income, the Fund may invest up to 35% of its assets in both higher-rated and
lower-rated fixed-income securities, including not more than 15% in lower-rated
securities, commonly known as "junk bonds." In certain circumstances, fixed-
income securities may be purchased by the Fund for long-term growth potential.
(However, the Fund expects to have substantially less than 35% of its assets
invested in fixed-income securities in most circumstances.) Lower-rated, fixed-
income securities involve risks discussed under "Certain Investment Strategies
and Policies-High Yield Securities." For more information concerning the rating
categories of corporate debt securities, see the Appendix to the Prospectus.
The dollar average weighted maturity of the Fund's fixed-income securities will
vary depending on, among other things, current market conditions. Purchases and
sales of portfolio securities
<PAGE>
are made at such times and in such amounts as deemed advisable in light of
market, economic and other conditions.
The Fund may invest up to 15% of its net assets in securities which are
illiquid. The Fund may also invest up to 25% of its assets in foreign
securities (not including its investments in ADRs).
When the Sub-Adviser determines that market conditions warrant a temporary,
defensive position, the Fund may invest without limitation in high-grade, fixed-
income or U.S. government securities, or hold assets in cash or cash
equivalents. To the extent the Fund is so invested, it is not achieving its
objective to the same degree as under normal conditions. For hedging purposes,
the Fund may engage in the options and futures strategies described under
"Certain Investment Strategies and Policies." There can be no assurance of
growth of capital, of course, and because the Fund invests a substantial portion
of its assets in common stocks and other securities which fluctuate in value,
there is substantial risk of market decline. The Fund's Sub-Adviser seeks to
minimize this risk through detailed analyses of financial markets and issuers of
equity securities and through investment in a diversified portfolio of such
securities.
For the fiscal year ended December 31, 1997, the portfolio turnover rate for the
Fund was 71%. The portfolio turnover rate for the Fund may vary greatly from
year to year.
______________________________
The attached Trust Prospectus is amended as follows to reflect the availability
of the Select Growth and Income Fund.
The number "eight" is changed to "nine" in the second sentence of the first
paragraph and the Select Growth and Income Fund is added after the Select
Strategic Growth Fund on the cover page of the Prospectus.
______________________________
The following is to be inserted into the Financial Highlights table before the
Select Income Fund on pages 6 and 7 of the Prospectus.
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FINANCIAL HIGHLIGHTS - For a Share Outstanding Throughout Each Year
-------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------------- -------------------------------------------------
Net Realized
Net and Distributions
Asset Unrealized Dividends from Net
Value Net Gain (Loss) Total from from Net Realized Distributions
Year Ended Beginning Investment on Investment Investment Capital in Return of Total
December 31, of Year Income(2) Investments Operations Income Gains Excess Capital Distributions
------------ ------- --------- ----------- ---------- ------ ----- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Select Growth and
Income Fund(1)
1997 $ 1.405 $ 0.020 $ 0.293 $ 0.313 $ (0.020) $ (0.146) $ -- $ -- $ (0.166)
1996 1.268 0.020 0.246 0.266 (0.020) (0.109) -- -- (0.129)
1995 1.027 0.019 0.290 0.309 (0.019) (0.049) -- -- (0.068)
1994 1.069 0.025 (0.018) 0.007 (0.025) (0.017) (0.007)(3) -- (0.049)
1993 0.990 0.023 0.079 0.102 (0.023) -- -- -- (0.023)
1992 1.000 0.008 (0.009) (0.001) (0.008) (0.001) -- -- (0.009)
<CAPTION>
Net
Increase
(Decrease)
in
Year Ended Net Asset
December 31, Value
------------ -----
<S> <C>
Select Growth and
Income Fund(1)
1997 $ 0.147
1996 0.137
1995 0.241
1994 (0.042)
1993 0.079
1992 (0.010)
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------------------------------
Ratios To Average Net Assets
---------------------------------------
Year Ended Net Asset Net Assets
December 31, Value End of Net Portfolio
------------ End of Total Year Investment Operating Expenses Management Fee Turnover
Select Growth and Year Return (000's) Income (A) (B) (C) Gross Net Rate
Income Fund(1) ---- ------ ------- ------ --- --- --- ----- --- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $ 1.552 22.51% $473,552 1.34% 0.77% 0.80% 0.80% 0.73% 0.73% 71%
1996 1.405 21.26% 295,638 1.44% 0.80% 0.83% 0.83% 0.75% 0.75% 78%
1995 1.268 30.32% 191,610 1.69% 0.85% -- 0.85% 0.75% 0.75% 112%
1994 1.027 0.73% 110,213 2.51% 0.91% -- 0.91% 0.75% 0.75% 107%
1993 1.069 10.37% 60,518 2.73% 0.99% -- 1.03% 0.75% 0.71% 25%
1992 0.990 (0.11)%** 7,302 3.20%* 1.10%* -- 2.37%* N/A N/A 4%
`</TABLE>
------------------------------------------
* Annualized
** Not Annualized
(A) Including reimbursements and reductions.
(B) Excluding reductions. Certain Portfolios have entered into varying
arrangements with brokers who reduced a portion of the Portfolio's
expenses.
(C) Excluding reimbursements and reductions.
(1) The Select Growth and Income Fund commenced operations on August 21,
1992.
(2) Net investment income per share before reimbursement of fees
by the investment adviser or reductions were $0.019 in 1997, $0.019 in
1996, $0.023 in 1993 and $0.005 in 1992 for Select Growth and Income
Fund.
(3) Distributions in excess of net realized capital gains.
<PAGE>
The following is added to the list after the Select Strategic Growth Fund under
the fifth paragraph in the section entitled "HOW ARE THE FUNDS MANAGED?":
Select Growth and Income Fund John A. Levin & Co., Inc.
______________________________
The information on the investment objective, Sub-Adviser and investment policies
in the first page of this Supplement regarding the Select Growth and Income Fund
is included under the section entitled, "WHAT ARE THE INVESTMENT OBJECTIVES AND
POLICIES?"
______________________________
The management and sub-advisory fee tables under "MANAGEMENT FEES AND EXPENSES"
are amended to include the following:
Select Growth
and Income
Fund
----
Manager Fee (3)
(3) The Manager's fee for the Select Growth and Income Fund, computed daily at
an annual rate based on the average daily net assets of the Fund, is based
on the following schedule:
Assets Rate
------ ----
First $100 Million 0.75%
Next $150 Million 0.70%
Next $250 Million 0.65%
Over $500 Million 0.65%
Please note that the footnote number under the column for the Select Income Fund
is changed to (4).
================================================================================
Select Growth
and Income
Fund
----
Sub-Adviser Fee (9)
(9) For its services, JAL will receive a fee computed daily at an annual rate
based on the average daily net assets of the Select Growth and Income Fund,
under the following schedule:
<PAGE>
Assets Rate
------ ----
First $100 Million 0.40%
Next $200 Million 0.25%
Over $300 Million 0.30%
______________________________
The table under "MANAGEMENT FEES AND EXPENSES" listing the gross fees before
reimbursement at an effective rate based on the Fund's average daily net assets
that each Fund paid the Manager for the fiscal year ended December 31, 1997 is
amended to include the following after the Select Growth Fund and before the
Select Income Fund:
Fund Rate
---- ----
Select Growth and Income Fund 0.73%
______________________________
The table under "MANAGEMENT FEES AND EXPENSES" showing the voluntary expense
limitations which the Manager has declared for each Fund and the operating
expenses incurred for the fiscal year ended December 31, 1997 for each Fund is
amended to include the following after the Select Growth Fund and before the
Select Income Fund:
Percentage of Average Daily Assets
----------------------------------
Voluntary Expense Operating
Fund Limitations Expenses
---- ----------- --------
Select Growth and Income Fund 1.10% 0.77%
______________________________
The following is added to the section entitled "FUND MANAGER INFORMATION" after
the Select Strategic Growth Fund and before the Select Income Fund:
The following individuals have served as members of a committee of fund managers
for the SELECT GROWTH AND INCOME FUND since September 1994:
John A. Levin, Chairman and Chief Investment Officer, has over 33 years
experience in the investment industry and has been with JAL since 1982. Prior
to 1982, Mr. Levin was a Partner at Steinhardt Partners and a Partner and
Director of Research at Loeb, Rhoades & Co.
Jeffrey A. Kigner, Co-Chairman and Chief Investment Officer, has over 14 years
of investment industry experience and has been with JAL since 1984. Prior to
1984, Mr. Kigner was employed by Cralin & Co.
______________________________
<PAGE>
The second sentence under the section entitled, "TAXES AND DISTRIBUTIONS TO
SHAREHOLDERS" is amended to read, in its entirety, as follows:
Dividends out of net investment income will be declared and paid quarterly in
the case of the Select Growth and Income Fund and Select Income Fund and
annually in the case of the Select Emerging Markets Fund, Select Aggressive
Growth Fund, Select Capital Appreciation Fund, Select Value Opportunity Fund,
Select International Equity Fund, Select Growth Fund and Select Strategic Growth
Fund.
______________________________
The second sentence in the second paragraph under the section entitled
"ORGANIZATION AND CAPITALIZATION OF THE TRUST" is amended to read, in its
entirety, as follows:
The nine Funds described in this Prospectus may be purchased by the Separate
Accounts established by First Allmerica.
______________________________
The sections under "CERTAIN INVESTMENT STRATEGIES AND POLICIES" on Repurchase
Agreements (not Reverse Repurchase Agreements), "When-Issued" Securities,
Lending of Securities, Foreign Securities, Options and Futures Transactions (not
Forward Contracts or Swaps), Restricted Securities and Investments in Money
Market Securities are applicable to all Funds including the Select Growth and
Income Fund.
______________________________
The heading, first and second sentences of the first paragraph, and first
sentence of the second paragraph on High Yield Securities under "CERTAIN
INVESTMENT STRATEGIES AND POLICIES" are amended to read in their entirety as
follows:
HIGH YIELD SECURITIES (APPLICABLE TO THE SELECT EMERGING MARKETS FUND, SELECT
CAPITAL APPRECIATION FUND, SELECT GROWTH FUND, SELECT GROWTH AND INCOME FUND AND
SELECT INCOME FUND)
Corporate debt securities purchased by the Select Emerging Markets Fund, Select
Capital Appreciation Fund, Select Growth Fund, Select Growth and Income Fund and
Select Income Fund will be rated at the time of purchase B or better by Moody's
or S&P, or equivalently rated by another NRSRO, or unrated but believed by the
Sub-Adviser to be of comparable quality under the guidelines established for the
Funds. The Select Growth Fund and the Select Growth and Income Fund may not
invest more than 15% of their assets, the Select Income Fund may not invest
more than 25% of its assets and the Select Emerging Markets Fund and Select
Capital Appreciation Fund may not invest more than 35% of their assets at the
time of investment in securities rated below Baa by Moody's or BBB by S&P, or
equivalently rated by another NRSRO, or unrated but believed by the Sub-Adviser
to be of comparable quality.
<PAGE>
Periods of economic uncertainty and changes can be expected to result in
increased volatility of market prices of lower-rated securities, commonly known
as "high yield" securities or "junk bonds," and of the asset value of the Select
Emerging Markets Fund, Select Capital Appreciation Fund, Select Growth Fund,
Select Growth and Income Fund and Select Income Fund.
--------------------------
The heading of the section on Asset-Backed Securities under "CERTAIN INVESTMENT
STRATEGIES AND POLICIES" is amended to read as follows:
ASSET-BACKED SECURITIES (APPLICABLE TO THE SELECT GROWTH AND INCOME FUND AND
SELECT INCOME FUND)
--------------------------
The following is to be inserted before the Financial Highlights tables in the
Prospectus.
FEES AND EXPENSES OF THE FUNDS
- ------------------------------
This table describes the fees and expenses that you may pay if you invest in the
Funds. The purpose of the table is to assist the investor in understanding the
various costs and expenses that an investor in the Funds will bear. The
expenses shown do not include expenses attributable to any particular insurance
or retirement plan product. For all Funds, except the Select Emerging Markets
Fund and the Select Strategic Growth Fund, the percentages shown in the table
are based on amounts incurred during the Trust's fiscal year ended December 31,
1997. Expenses for the Select Emerging Markets Fund and Select Strategic Growth
Fund are based on estimates. Management fee rates for the Select Aggressive
Growth Fund, the Select Capital Appreciation Fund, the Select Growth and Income
Fund and the Select Income Fund were revised in 1997. Management fee rates
shown in the table have been adjusted to assume that the revised rates took
effect on January 1, 1997.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
------------------------------
Total Fund
Shareholder Management Fee Expenses
Transaction (after any voluntary Other Fund (after any applicable
Expenses waiver) 12b-1 Fees Expenses limitations)
-------- ------- ---------- -------- ------------
<S> <C> <C> <C> <C> <C>
SELECT EMERGING MARKETS FUND @ NONE 1.35% NONE 0.65% 2.00%(1)
SELECT AGGRESSIVE GROWTH FUND NONE 0.89%* NONE 0.09% 0.98%(1)(2)
SELECT CAPITAL APPRECIATION FUND NONE 0.95%* NONE 0.15% 1.10%(1)
SELECT VALUE OPPORTUNITY FUND NONE 0.90%** NONE 0.14% 1.04%(1)(2)
SELECT INTERNATIONAL EQUITY FUND NONE 0.92% NONE 0.20% 1.12%(1)(2)
SELECT GROWTH FUND NONE 0.85%# NONE 0.08% 0.93%(1)(2)
SELECT STRATEGIC GROWTH FUND @ NONE 0.85% NONE 0.13% 0.98%(1)
SELECT GROWTH AND INCOME FUND NONE 0.70%* NONE 0.07% 0.77%(1)(2)
SELECT INCOME FUND NONE 0.58%* NONE 0.13% 0.71%(1)
</TABLE>
<PAGE>
* Effective September 1, 1997, the management fee rates for these Funds were
revised. The management fee ratios shown in the table above have been
adjusted to assume that the revised rates took effect on January 1, 1997.
@ Select Emerging Markets Fund and Select Strategic Growth Fund commenced
operations in February 1998. Expenses shown are annualized and are based on
estimated amounts for the current fiscal year. Actual expense may be greater
or less than shown.
** The Select Value Opportunity Fund was formerly known as the "Small-Mid Cap
Value Fund." Effective April 1, 1997, the management fee rate of the former
Small-Mid Cap Value Fund was revised. In addition, effective April 1, 1997
and until further notice, the management fee rate has been voluntarily
limited to an annual rate of 0.90% of average daily net assets, and total
expenses are limited to 1.25% of average daily net assets. The management
fee ratio shown above for the Select Value Opportunity Fund has been
adjusted to assume that the revised rate and the voluntary limitations took
effect on January 1, 1997. Without these adjustments, the management fee
ratio and the total fund expense ratio would have been 0.95% and 1.09%,
respectively. The management fee limitation may be terminated at any time.
# Effective June 1, 1998, the management fee rate for this Fund was revised.
The new management fee rate has no effect on the management fee rate for
1997.
(1) Until further notice, the Manager has declared a voluntary expense
limitation of 1.35% of average net assets for the Select Aggressive Growth
Fund and Select Capital Appreciation Fund, 1.25% for the Select Value
Opportunity Fund, 1.50% for the Select International Equity Fund, 1.20% for
the Select Growth Fund, 1.10% for the Select Growth and Income, and 1.00%
for the Select Income Fund. The total operating expenses of these Funds of
the Trust were less than their respective expense limitations throughout
1997.
Until further notice, the Manager has declared a voluntary expense
limitation of 1.20% of average daily net assets for the Select Strategic
Growth Fund. In addition, the Manager has agreed to voluntarily waive its
management fee to the extent that expenses of the Select Emerging Markets
Fund exceed 2.00% of the Fund's average daily net assets, except that such
waiver shall not exceed the net amount of management fees earned by the
Manager from the Fund after subtracting fees paid by the Manager to a Sub-
Adviser.
The declaration of a voluntary expense limitation in any year does not bind
the Manager to declare future expense limitations with respect to these
Funds. These limitations may be terminated at any time.
(2) These Funds have entered into agreements with brokers whereby brokers rebate
a portion of commissions. Had these amounts been treated as reductions of
expenses, the total operating expense ratios would have been 0.93% for the
Select Aggressive Growth Fund, 0.98% for the Select Value Opportunity Fund,
1.10% for the Select International Equity
<PAGE>
Fund, 0.91% for the Select Growth Fund and 0.74% for the Select Growth and
Income Fund.
EXAMPLE
-------
You would pay the following expenses on a $1,000 investment, assuming (1) 5%
annual return and (2) redemption at the end of each time period. The Example
should not be considered a representation of past or future expenses and actual
expenses may be greater or lesser than those shown.
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
SELECT EMERGING MARKETS FUND $20 $62 $106 $229
SELECT AGGRESSIVE GROWTH FUND $10 $31 $ 53 $118
SELECT CAPITAL APPRECIATION FUND $11 $34 $ 59 $131
SELECT VALUE OPPORTUNITY FUND $10 $32 $ 56 $125
SELECT INTERNATIONAL EQUITY FUND $11 $35 $ 61 $134
SELECT GROWTH FUND $ 9 $29 $ 50 $112
SELECT STRATEGIC GROWTH FUND $10 $31 $ 53 $118
SELECT GROWTH AND INCOME FUND $ 8 $24 $ 42 $ 93
SELECT INCOME FUND $ 7 $22 $ 38 $ 86
---------------------------------
The following is added at the end of the third paragraph under the section
entitled, "How Is Performance Determined":
The table below shows the performance of each Fund over past fiscal periods
ended December 31, 1997.
AVERAGE ANNUAL TOTAL RETURN
---------------------------
Ten Years or
One Year Five Years Life of Fund *
-------- ---------- ------------
Select Emerging Markets Fund ** N/A N/A N/A
Select Aggressive Growth Fund 18.71% 16.80% 19.57%
Select Capital Appreciation Fund 14.28% N/A 22.89%
Select Value Opportunity Fund 24.85% N/A 16.93%
Select International Equity Fund 4.65% N/A 11.14%
Select Growth Fund 34.06% 15.15% 16.37%
Select Strategic Growth Fund ** N/A N/A N/A
Select Growth and Income Fund 22.51% 16.57% 15.36%
Select Income Fund 9.17% 6.86% 6.51%
* The Select Aggressive Growth Fund commenced operations on August 21, 1992;
Select Capital Appreciation Fund on April 28, 1995; Select Value Opportunity
Fund (formerly the Small-Mid Cap Value Fund) on April 30, 1993; Select
International Equity Fund on May 2, 1994 and Select Growth Fund on August 21,
1992. The Select Growth and Income Fund and Select Income Fund commenced
operations on August 21, 1992.
<PAGE>
** The Select Emerging Markets Fund and the Select Strategic Growth Fund
commenced operations on February 20, 1998.
Total returns quoted for a Fund include the Fund's expenses, but do not include
charges and expenses attributable to any particular insurance or retirement plan
product. Therefore, when shares of the Funds are purchased through variable
annuity and variable life insurance contracts, for example, you should carefully
review the prospectus of the insurance product you have chosen for information
on relevant charges and expenses. Excluding these charges from quotations of a
Fund's performance has the effect of increasing the performance quoted. You
should bear in mind the effect of these charges when comparing a Fund's
performance to that of other mutual funds.
Total returns are based on past results and are not an indication of future
performance.
