-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S+UArMLimh0d8ohNMH/3LwcFe9uiV+EvnpRdEt4hssyiH61A0CqCHHc0ZtUi5vmK zpJaXl5PVZKgHJejhypNwQ== 0000950152-08-004658.txt : 20080617 0000950152-08-004658.hdr.sgml : 20080617 20080617164451 ACCESSION NUMBER: 0000950152-08-004658 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080617 DATE AS OF CHANGE: 20080617 EFFECTIVENESS DATE: 20080617 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BB&T Variable Insurance Funds CENTRAL INDEX KEY: 0001311261 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-121205 FILM NUMBER: 08903740 BUSINESS ADDRESS: STREET 1: 434 FAYETTEVILLE STREET MALL CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 800-228-1872 MAIL ADDRESS: STREET 1: 434 FAYETTEVILLE STREET MALL STREET 2: 5TH FLOOR CITY: RALEIGH STATE: NC ZIP: 27601 0001311261 S000012130 BB&T LARGE CAP VARIABLE INSURANCE FUND C000033085 BB&T LARGE CAP VARIABLE INSURANCE FUND 0001311261 S000012131 BB&T CAPITAL MANAGER EQUITY VARIABLE INSURANCE FUND C000033086 BB&T CAPITAL MANAGER EQUITY VARIABLE INSURANCE FUND 0001311261 S000012132 BB&T MID CAP GROWTH VARIABLE INSURANCE FUND C000033087 BB&T MID CAP GROWTH VARIABLE INSURANCE FUND 0001311261 S000012133 BB&T LARGE CAP GROWTH VARIABLE INSURANCE FUND C000033088 BB&T LARGE CAP GROWTH VARIABLE INSURANCE FUND 0001311261 S000012134 BB&T SPECIAL OPPORTUNITIES EQUITY VARIABLE INSURANCE FUND C000033089 BB&T SPECIAL OPPORTUNITIES EQUITY VARIABLE INSURANCE FUND 0001311261 S000012135 BB&T TOTAL RETURN BOND VARIABLE INSURANCE FUND C000033090 BB&T TOTAL RETURN BOND VARIABLE INSURANCE FUND 497 1 l32091ae497.htm BB&T VARIABLE INSURANCE FUNDS 497 BB&T VARIABLE INSURANCE FUNDS 497
BB&T VARIABLE INSURANCE FUNDS
SUPPLEMENT DATED JUNE 17, 2008
TO THE
BB&T VARIABLE INSURANCE FUNDS STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 2008
Effective immediately, this Supplement provides the following amended and supplemental information and supersedes any information to the contrary in the Statement of Additional Information (“SAI”) dated May 1, 2008:
Auction Rate Securities
The following disclosure is added under the heading “Additional Information on Portfolio Instruments”:
AUCTION RATE SECURITIES. The Funds may invest in securities issued by municipalities and governmental agencies and sold through an auction process.
     Provided that the auction mechanism is successful, auction rate securities usually permit the holder to sell the securities in an auction at par value at specified intervals. The dividend is reset by a “Dutch” auction in which bids are made by broker-dealers and other institutions for a certain amount of securities at a specified minimum yield. The dividend rate set by the auction is the lowest interest or dividend rate that covers all securities offered for sale.
     While this process is designed to permit auction rate securities to be traded at par value, there is the risk that an auction will fail due to insufficient demand for the securities. Since February 2008, numerous auctions have failed due to insufficient demand for securities and have continued to fail for an extended period of time. Failed auctions may adversely impact the liquidity of auction rate securities investments. Although some issuers of auction rate securities are redeeming or are considering redeeming such securities, such issuers are not obligated to do so and, therefore, there is no guarantee that a liquid market will exist for a Fund’s investments in auction rate securities at a time when the Fund wishes to dispose of such securities.
     An issuer’s obligations under its auction rate municipal securities are subject to provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors, such as the federal Bankruptcy Code, and laws, if any, which may be enacted by federal or state legislatures extending the time for payment of principal or interest, or both, or imposing other constraints upon enforcement of such obligations or upon the ability of municipalities to levy taxes. The power or ability of an issuer to meet its obligations for the payment of interest on and principal of its auction rate municipal securities may be materially, adversely affected by litigation or other conditions.
SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT
WITH THE STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE.

-----END PRIVACY-ENHANCED MESSAGE-----