AMERICAN AADVANTAGE MILEAGE FUNDS
Supplement to the Statement of Additional Information dated March 1, 1999
The following fundamental investment restrictions on page four are modified to
read as follows:
2. Purchase or sell commodities (including direct interests and/or leases in
oil, gas or minerals) or commodities contracts, except with respect to forward
foreign currency exchange contracts, foreign currency futures contracts, and
when-issued securities when consistent with the other policies and limitations
described in the Prospectuses. In addition, the Balanced Portfolio, Large Cap
Value Portfolio, Small Cap Value Portfolio, and International Equity Portfolio
may purchase or sell futures contracts and options on futures contracts.
7. Borrow money, except from banks or through reverse repurchase agreements for
temporary purposes. In addition, the Balanced Portfolio, Large Cap Value
Portfolio, Small Cap Value Portfolio, and International Equity Portfolio may
borrow money from the Manager or any of its affiliates for temporary purposes.
The aggregate amount of borrowing for each Portfolio is not to exceed 10% of the
value of the Portfolio's assets at the time of borrowing. Although not a
fundamental policy, the Portfolios intend to repay any money borrowed before any
additional portfolio securities are purchased. See "Other Information" for
further information regarding reverse repurchase agreements.
