O'SHAUGHNESSY FUNDS, INC.
O'SHAUGHNESSY AGGRESSIVE GROWTH FUND
O'SHAUGHNESSY DOGS OF THE MARKET(TM) FUND
Supplement dated October 19, 1999 to Prospectuses dated November 30, 1998
At a special meeting held on October 18, 1999, the Board of Directors determined
that it would be in the best interest of Fund shareholders to merge the
O'Shaughnessy Aggressive Growth Fund with the O'Shaughnessy Cornerstone Growth
Fund and the O'Shaughnessy Dogs of the Market Fund with the O'Shaughnessy
Cornerstone Value Fund. The reasons for this decision will be explained when
shareholders are solicited to consider a specific proposal.
Under the proposal, shares of the O'Shaughnessy Aggressive Growth Fund would be
exchanged for shares of the O'Shaughnessy Cornerstone Growth Fund, and shares of
the O'Shaughnessy Dogs of the Market Fund would be exchanged for shares of the
O'Shaughnessy Cornerstone Value Fund if approved at the forthcoming meeting of
shareholders. It is anticipated that such an exchange would be done on a
tax-free basis.
Shareholders will receive a notice of meeting and proxy statement in the near
future.
The Board has also determined to cease offering new shares of the O'Shaughnessy
Aggressive Growth Fund and the O'Shaughnessy Dogs of the Market Fund as of
today's date. Effective immediately, the Advisor to the Funds has determined to
cease the voluntary limitation of the O'Shaughnessy Dogs of the Market Fund's
operating expenses to 1.09% and those of the O'Shaughnessy Aggressive Growth
Fund to 2.00%. Without this limitation, these expense ratios are estimated to be
1.50% and 2.23%, respectively at current asset levels.
