ANCHOR PATHWAY FUND
Supplement to the Prospectus dated January 29, 1996
The following is added as the last two sentences of the second
paragraph under the section entitled "GROWTH-INCOME SERIES" on page
6 of the Prospectus:
Up to 10% of the Series' assets may be invested in
the equity securities of issuers domiciled outside of the
U.S., provided those securities are either held through
depository receipts which are U.S. dollar denominated or
are traded on the New York Stock Exchange. See "Risks
and Considerations Applicable to Investment in Securities
of Foreign Issuers."
The following is deleted as the last sentence of the third
paragraph under the section entitled "ASSET ALLOCATION SERIES" on
page 7 of the Prospectus:
The Series also has the ability to hold a portion of
its assets in foreign currencies and to enter into
forward foreign currency exchange contracts although the
Series has no current intention to do so.
The first sentence of the first paragraph under the section
entitled "Risks and Considerations Applicable to Investment in
Securities of Foreign Issuers" on page 11 of the Prospectus has
been amended as follows:
Elements of risk and opportunity which must be
recognized and evaluated by the Investment Adviser when
investments in foreign issuers are made for the Growth,
International, Growth-Income, Asset Allocation and the
High-Yield Bond Series include trade imbalances and
related economic policies; . . . and other specific local
political and economic considerations.
The last sentence of the first paragraph under the section
entitled "Risks and Considerations Applicable to Investment in
Securities of Foreign Issuers" on page 11 of the Prospectus has
been amended as follows:
Investment decisions made in the context of the
Growth, International, Growth-Income, Asset Allocation
and the High-Yield Bond Series' objectives and policies
necessarily require particular attention to opportunities
and risks presented by probable future currency
relationships, especially during periods of broad
adjustments in such relationships.
The first sentence of the last paragraph under the section
entitled "Risks and Considerations Applicable to Investment in
Securities of Foreign Issuers" on page 11 of the Prospectus has
been amended as follows:
Additional costs could be incurred in connection
with the Series' non-U.S. investment activities.
The following new paragraph has been added to the end of the
section entitled "Risks and Considerations Applicable to Investment
in Securities of Foreign Issuers" on page 11 of the Prospectus:
In addition, the Government/AAA-Rated Series also
may invest in the securities of issuers domiciled outside
the U.S.; however, these securities must be dollar
denominated and highly liquid. Accordingly, while the
risks mentioned above are still present, they are present
to a lesser extent.
The first paragraph under the section entitled "Foreign
Currency Transactions" on page 12 of the Prospectus is amended as
follows:
Currency exchange fluctuations are a major area of
risk and opportunity for the Growth, International and
High-Yield Bond Series. Each Series has the ability to
purchase and sell currencies to facilitate securities
transactions and to enter into forward foreign currency
contracts to hedge against changes in currency exchange
rates. The International and High-Yield Bond Series may
purchase put and call options on currencies and may
purchase and sell exchange traded futures contracts
relating to foreign currency. The Growth Series has no
current intention of entering into forward foreign
currency exchange contracts.
The first sentence of the second and third paragraphs,
respectively, under the section entitled "Foreign Currency
Transactions" on page 12 of the Prospectus is amended as follows:
The Growth, International and High-Yield Bond Series
may enter into forward foreign currency exchange
contracts and the International and High-Yield Bond
Series may purchase currency options to reduce the risks
of fluctuations in exchange rates; however, these
contracts cannot eliminate all such risks of fluctuations
and do not eliminate fluctuations in the prices of the
Series' portfolio securities.
The Growth, International and High-Yield Bond Series
will not speculate in currency contracts or options; . .
. or b) current or anticipated payment obligations in
that currency.
April 23, 1996<PAGE>
ANCHOR PATHWAY FUND
Supplement to the Statement of Additional Information dated
January 29, 1996
The section title currently entitled "HIGH-YIELD BOND SERIES
AND INTERNATIONAL SERIES" on page 8 of the Statement of Additional
Information is amended as follows:
GROWTH SERIES, INTERNATIONAL SERIES AND HIGH-YIELD BOND SERIES
The first two paragraphs under the section formerly entitled
"HIGH-YIELD BOND SERIES AND INTERNATIONAL SERIES - Currency
Transactions" on page 8 of the Statement of Additional Information
are amended as follows:
The Growth Series, International Series and High-Yield Bond Series
have the ability to purchase and sell
currencies, to facilitate securities transactions and to
enter into forward currency contracts to hedge against
changes in currency exchange rates. The Series purchase
or sell currencies in connection with settling
transactions involving securities denominated in
currencies other than the U.S. dollar. A forward
currency contract is an obligation to purchase or sell a
specific currency at a future date and price, both or
which are set at the time of the contract. For example,
a Series might sell a currency on a forward basis to
hedge against an anticipated decline in the currency in
which a portfolio security is denominated. Although this
strategy could minimize the risk of loss due to a decline
in the value of the hedged currency, it could also limit
any potential gain which might result from an increase in
the value of the currency.
The Growth Fund does not currently intend to engage
in any transactions other than purchasing and selling
currencies and foreign exchange contracts which will be
used to facilitate settlement of trades.
April 23, 1996
