VALIC reports top Morningstar rankings for eight variable annuity funds

Business Wire, Nov 29, 1995

HOUSTON--(BUSINESS WIRE)--Nov. 29, 1995--The Variable Annuity Life Insurance Company (VALIC), a leading commercial provider of variable annuity contracts, reports that seven of the equity fund options and one income fund within its Portfolio Director variable annuity contract ranked near the top of their respective categories, according to Morningstar's Variable Annuity/Life Performance Report of November 1995 for various one-, three- and five-year periods ending Oct. 31, 1995.

According to Morningstar's Variable Annuity/Life Performance Report, Portfolio Director's Dreyfus Small Cap Fund ranked fifth out of 60 funds in the Aggressive Growth category; the Templeton Asset Allocation Fund ranked sixth out of 200 funds in the Balanced category; and the Templeton International Fund ranked seventh out of 113 funds in the International Stock category, all for the three-year period ending Oct. 31, 1995.

For the one-year period ending Oct. 31, 1995, four VALIC Portfolio Director fund options ranked near the top of their respective categories.

The Science and Technology Fund, subadvised by T. Rowe Price, ranked second out of 61 funds in the Specialty category. The Growth Fund, also subadvised by T. Rowe Price, ranked 15th out of 384 funds in the Growth category. In the Growth and Income category with 248 funds, the Social Awareness Fund ranked sixth and the Stock Index Fund ranked 15th.

In the International Bond category, VALIC's International Government Bond Fund ranked first out of 27 funds for the three-year period ending Oct. 31, 1995.

"With consistent top-performing funds within our variable annuity contracts, we are able to offer retirement plan participants a variety of investment options to plan for a secure retirement, while heightening their awareness of the need to start planning now," said VALIC President Thomas L. West, Jr.

"Combined with value-added services such as our proprietary Portfolio Optimizer retirement planning software, VALIC customers receive specialized personal service as they are shown the advantages of tax-deferred investing."

Now in its 40th year with more than $25 billion in assets, VALIC was one of the first companies to specialize in offering qualified tax- deferred annuities, such as Portfolio Director, which was introduced in 1994.

The company is a leading provider of employer-sponsored retirement programs to employees of health care, education, public employer and not- for-profit organizations. Portfolio Director is distributed by The Variable Annuity Marketing Company (VAMCO), a broker/dealer subsidiary of VALIC.

It is a retirement investment program that combines two investment approaches: the guaranteed return of fixed-account options and the potential to earn greater returns from the 16 variable-account fund options.

Portfolio Director is complemented by VALIC's Portfolio Optimizer software that helps retirement plan participants evaluate and meet their retirement plan objectives.

Using Portfolio Optimizer, VALIC's retirement plan specialists help participants understand asset allocation and guide them through a process of risk/return analysis leading to a portfolio mix that matches their investment risk tolerance, time horizon and individual investment preferences.

VALIC's parent company, American General Corporation, is the nation's 18th largest consumer financial service organization, with assets of more than $58 billion and shareholders' equity of $5.3 billion.

Headquartered in Houston, it is a leading provider of retirement annuities, consumer loans and life insurance. American General Corporation common stock is listed on the New York, Pacific, London and Swiss stock exchanges. -0- NOTE: This material must be preceded or accompanied by a prospectus.

Please see following table for complete third-quarter performance

results. -0-

          Morningstar Variable Annuity/Life Performance Report
                  for Period Ending October 31, 1995
                               VALIC
                         Portfolio Director
                        Equity Fund Options