AAL VARIABLE PRODUCT SERIES FUND, INC.
Supplement Dated July 1, 1998
To the Prospectus Dated March 1, 1998
(As Revised June 1, 1998)
Proposed Nonsubstantive Change in Sub-Advisory Agreement Affecting the AAL
Variable Product International Stock Portfolio of AAL Variable Product Series
Fund, Inc.
The Board of Directors of the AAL Variable Product Series Fund, Inc.
(the "Fund") has set August 14, 1998 as the date for a Special Meeting of
Shareholders of the AAL Variable Product International Stock Portfolio (the
"Portfolio") to vote on the approval of a new Sub-Advisory Agreement for that
Portfolio. Shareholders of record of the Portfolio as of June 30, 1998 will be
eligible to vote on this matter.
This matter arises out of legal technicalities, and is not expected to
have any substantive effect on the investment management services presently
provided to the Portfolio, the investment management personnel responsible for
providing those services, the fees paid by the Portfolio for those services, or
the investment objective, policies and programs of the Portfolio.
Oechsle International Advisors L.P. ("Oechsle L.P.") presently serves
as the sub-adviser to the Portfolio pursuant to a Sub-Advisory Agreement, dated
February 13, 1998, by and among the Fund (on behalf of the Portfolio), Aid
Association for Lutherans (the Portfolio=s investment advisor) and Oechsle L.P.
Oechsle L.P. plans to restructure its business and ownership. Under provisions
of the Investment Company Act of 1940 (the "1940 Act"), this restructuring could
be deemed a change in control of Oechsle L.P., which in turn could be deemed an
assignment of the current sub-advisory agreement from Oechsle L.P. to the
restructured company, to be known as Oechsle International Advisors LLC
("Oechsle LLC"). Additional provisions of the 1940 Act provide that a
sub-advisory contract terminates automatically upon its assignment. A successor
by assignment may continue providing sub-advisory services to the affected
mutual fund only pursuant to the terms of a new sub-advisory agreement that has
been approved by shareholders of the fund.
The Board of Directors of the Fund has determined to solicit
shareholder approval of a new sub-advisory agreement with Oechsle LLC in order
to eliminate any uncertainty about the authority of Oechsle LLC to continue
providing sub-advisory services following Oechsle L.P.=s pending restructuring
transaction. The terms of the proposed new sub-advisory agreement are
substantively identical to the terms of the current sub-advisory agreement. If
the Portfolio's shareholders approve the new sub-advisory agreement,
shareholders should notice no difference in the sub-advisory services.
This Supplement must accompany the delivery of all Prospectuses on and
after July 1, 1998.
13017PI7 7/98
