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SUPPLEMENT DATED JUNE 28, 1996
TO PROSPECTUS DATED SEPTEMBER 21, 1995
AS SUPPLEMENTED THROUGH JUNE 28, 1996 OF AIG CHILDREN'S WORLD FUND-2005
FOR NEW JERSEY RESIDENTS
THE VIEW OF THE BUREAU OF SECURITIES OF THE STATE OF NEW JERSEY IS THAT THE
FUND'S INVESTMENT IN ZERO COUPON SECURITIES OF THE UNITED STATES GOVERNMENT AND
THE EQUITY PORTFOLIO'S ENTRY INTO FORWARD FOREIGN CURRENCY CONTRACTS ARE
DERIVATIVE INVESTMENTS AND MAY INVOLVE SIGNIFICANT RISK. SEE "RISK FACTORS--
ZERO COUPON SECURITIES" AND "--FOREIGN CURRENCIES" IN THE ACCOMPANYING
PROSPECTUS AND "INVESTMENT OBJECTIVES AND POLICIES--ZERO COUPON SECURITIES" AND
"--FOREIGN CURRENCY TRANSACTIONS" IN THE STATEMENT OF ADDITIONAL INFORMATION.
HOWEVER, THE MANAGER'S GUARANTEE ENSURES THAT ALL SHAREHOLDERS WHO REINVEST ALL
DIVIDENDS AND OTHER DISTRIBUTIONS AND HOLD THEIR SHARES UNTIL NOVEMBER 15, 2005
WILL RECEIVE AT LEAST THEIR ORIGINAL INVESTMENT, INCLUDING ANY FRONT-END SALES
CHARGES PAID.
