SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
Waddell & Reed Advisors Asset Strategy Fund, Inc.
Waddell & Reed Advisors Continental Income Fund, Inc.
Waddell & Reed Advisors Funds, Inc.
Waddell & Reed Advisors Government Securities Fund, Inc.
Waddell & Reed Advisors High Income Fund, Inc.
Waddell & Reed Advisors High Income Fund II, Inc.
Waddell & Reed Advisors International Growth Fund, Inc.
Waddell & Reed Advisors Municipal High Income Fund, Inc.
Waddell & Reed Advisors New Concepts Fund, Inc.
Waddell & Reed Advisors Retirement Shares, Inc.
Waddell & Reed Advisors Small Cap Fund, Inc.
Waddell & Reed Advisors Tax-Managed Equity Fund, Inc.
Waddell & Reed Advisors Vanguard Fund, Inc.
The disclosure regarding the respective Distribution and Service Plans ("Plans")
for Class A shares, Class B shares and Class C shares is revised to reflect that
such shares are offered through Waddell & Reed, Inc. and also through certain
other broker-dealers. In addition to the dealer reallowance that may be
applicable to Class A share purchases, as described in the Prospectus, Waddell &
Reed, Inc. may pay such broker-dealers a portion of the fees it receives under
the respective Plans as well as other compensation in connection with the
distribution of Fund shares, including the following: i) for the purchase of
Class A shares purchased at net asset value by clients of Legend Equities
Corporation ("Legend"), Waddell & Reed, Inc. (or its affiliate) may pay Legend
1.00% of net assets invested; ii) for the purchase of Class B shares, Waddell &
Reed, Inc. (or its affiliate) may pay Legend 4.00% of net assets invested; iii)
for the purchase of Class C shares, Waddell & Reed, Inc. (or its affiliate) may
pay Legend 1.00% of net assets invested.
To be attached to the cover page of the Statement of Additional Information of:
Waddell & Reed Advisors Asset Strategy Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Continental Income Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Funds, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Government Securities Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors High Income Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors High Income Fund II, Inc. - Dated June 30, 2000
Waddell & Reed Advisors International Growth Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Municipal High Income Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors New Concepts Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Retirement Shares, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Small Cap Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Tax-Managed Equity Fund, Inc. - Dated June 30, 2000
Waddell & Reed Advisors Vanguard Fund, Inc. - Dated June 30, 2000
This Supplement is dated July 3, 2000
