CONSECO FUND GROUP
CLASS A SHARES
Supplement dated September 15, 1997 to
Prospectus dated August 6, 1997
The section regarding the waiver of the Class A initial sales charge (pages
19-20) is revised to read as follows:
WAIVER OF CLASS A INITIAL SALES CHARGE.
No sales charge is imposed on sales of Class A shares to certain
investors. However, in order for the following sales charge waivers to be
effective, the Transfer Agent must be notified of the waiver when the purchase
order is placed. The Transfer Agent may require evidence of your qualification
for the waiver. No sales charge is imposed on the following investors: (1)
current or retired officers, directors and employees (and their parents,
grandparents, spouses, and minor children) of the Trust, Conseco and its
affiliates and the Transfer Agent, (2) any participant in a tax qualified
retirement plan provided that the initial amount invested by the plan totals
$500,000 or more, the plan has 50 or more employees eligible to participate at
the time of purchase, or the plan certifies that it will have projected annual
contributions of $200,000 or more; (3) brokers, dealers, and other financial
intermediaries that have a selling agreement with the Distributor, if they
purchase shares for their own accounts or for retirement plans for their
employees; (4) employees and registered representatives (and their parents,
grandparents, spouses and minor children) of brokers, dealers, and other
financial intermediaries described above; the purchaser must certify to the
Distributor at the time of the purchase that the purchase is for the purchaser's
own account (or for the benefit of such employee's parents, grandparents, spouse
or minor children); (5) any charitable organization, state, county, city, or any
instrumentality, department, authority or agency thereof which has determined
that Class A is a legally permissible investment and which is prohibited by
applicable investment law from paying a sales charge or commission in connection
with the purchase of shares of any registered management investment company; (6)
one or more members of a group of at least 100 persons (and persons who are
retirees from such group) engaged in a common business, profession, civic or
charitable endeavor or other activity, and the spouses and minor children of
such persons, pursuant to a marketing program between the Distributor and such
group; (7)(i) through an investment adviser who makes such purchases through a
broker, dealer, or other financial intermediary (each of which may impose
transaction fees on the purchase), or (ii) by an investment adviser for its own
account or for a bona fide advisory account over which the investment adviser
has investment discretion; (8) through a broker, dealer or other financial
intermediary which maintains a net asset value purchase program that enables the
Funds to realize certain economies of scale; (9) through bank trust departments
or trust companies on behalf of bona fide trust or fiduciary accounts by
notifying the Distributor in advance of purchase; a bona fide advisory, trust or
fiduciary account is one which is charged an asset-based fee and whose purpose
is other than purchase of Fund shares at net asset value; (10) by purchasers in
connection with investments related to a bona fide medical savings account; or
(11) by an account established under a wrap fee or asset allocation program
where the accountholder pays the sponsor an asset-based fee.
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Additionally, no sales charge is imposed on shares that are (a) issued in
plans of reorganization, such as mergers, asset acquisitions and exchange
offers, to which a Fund is a party, (b) purchased by the reinvestment of loan
repayments by participants in retirement plans, (c) purchased by the
reinvestment of dividends or other distributions from a Fund, or (d) purchased
and paid for with the proceeds of shares redeemed in the prior 60 days from a
mutual fund on which an initial sales charge or contingent deferred sales charge
was paid (other than a fund managed by the Adviser or any of its affiliates that
is subject to the exchange privilege described below); the purchaser must
certify to the Distributor at the time of purchase that the purchaser is a prior
load investor.
