SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
Waddell & Reed Advisors Asset Strategy Fund, Inc.
Waddell & Reed Advisors Continental Income Fund, Inc.
Waddell & Reed Advisors Retirement Shares, Inc.
The following information supplements the disclosure regarding the fees for
shareholder servicing and accounting services under the caption "Investment
Management and Other Services -- Payments by the Fund for Management, Accounting
and Shareholder Services:"
Effective September 1, 2000, under the Shareholder Servicing Agreement,
with respect to Class A, Class B and Class C shares, the Fund pays the Agent a
monthly fee of $1.4125 for each shareholder account that was in existence at any
time during the prior month. The Fund no longer pays a fee of $0.30 per
dividend or distribution.
Also effective September 1, 2000, under the Accounting Services Agreement,
the Fund pays the Agent a monthly fee of one-twelfth of the annual base fee
shown in the following table:
Accounting Services Fee
Average Net Asset Level Annual Fee Rate
(in millions) for Each Level
----------------------- ---------------
From $ 0 to $ 10 $ 0
From $ 10 to $ 25 $ 11,000
From $ 25 to $ 50 $ 22,000
From $ 50 to $ 100 $ 33,000
From $ 100 to $ 200 $ 44,000
From $ 200 to $ 350 $ 55,000
From $ 350 to $ 550 $ 66,000
From $ 550 to $ 750 $ 77,000
From $ 750 to $1,000 $ 93,500
$1,000 and Over $110,000
In addition, for each class of shares in excess of one, the Fund pays the
Agent a monthly per-class fee equal to 2.5% of the monthly base fee.
To be attached to the cover page of the Statement of Additional Information
dated June 30, 2000, of:
Waddell & Reed Advisors Asset Strategy Fund, Inc.
Waddell & Reed Advisors Continental Income Fund, Inc.
Waddell & Reed Advisors Retirement Shares, Inc.
This Supplement is dated September 1, 2000.
