[LOGO]
CONSECO R
STEP UP TM
CONSECO FUND GROUP
Supplement dated July 30, 1999
to the Prospectus for Class A, B and C Shares
dated March 12, 1999, AS REVISED April 28, 1999
Conseco Fixed Income Fund
Conseco High Yield Fund
Conseco Convertible Securities Fund
Conseco Balanced Fund
Conseco Equity Fund
Conseco 20 Fund
THE FOLLOWING PAGES REPLACE IN THEIR ENTIRETY PAGES 28 - 36 OF THE CONSECO
FUND GROUP CLASS A, B AND C PROSPECTUS DATED
MARCH 12, 1999, AS REVISED APRIL 28, 1999.
<PAGE>
YOUR ACCOUNT
Choosing A Share Class (cont.)
Reducing Your Sales Charges for Class A Share Purchases
You may be eligible to buy Class A shares with a reduced sales charge in one or
more of the following ways:
Rights Of Accumulation
Allows you to include the value of your existing Conseco Fund Group investments
together with the value of any shares you hold in a FIRSTAR MONEY MARKET FUND
(FMMF) to your current investment to determine the applicable sales charge.
Combined Purchases
Allows you to include the cumulative value of all of your Conseco Fund Group
investments with the value of investments made by other qualifying persons to
determine the amount of reduction in sales charge. Qualifying persons include
trustees or other fiduciaries, as well as qualified employee benefit plans of a
single corporation or of corporations affiliated with each other in accordance
with the 1940 Act (see Statement of Additional Information [SAI] for specific
information).
You or your financial intermediary must provide documentation to the Transfer
Agent each time a purchase that qualifies for a reduced sales charge is made.
Letter Of Intent
Allows you to commit to invest a certain amount in Class A shares of any or all
of the Funds over a 13-month period and receive the same sales charge as if all
shares had been purchased at once. You may also include your existing Conseco
Fund Group investments to further reduce your sales charge.
See the SAI and the application for further details on how you can take
advantage of these cost-reduction programs.
FIRSTAR MONEY MARKET FUND
You may also purchase shares of this money market fund, currently managed by
Firstar Investment Research & Management Company, LLC through a separate
prospectus. That prospectus is available upon request by calling
800-986-3384.
28
<PAGE>
Purchase Of Class B Shares
Class B shares are offered at their net asset value (NAV) per share without any
initial sales charge. Your entire purchase amount is immediately invested.
However, a contingent deferred sales charge (CDSC) is imposed upon Class B
shares redeemed within six years of their purchase. The CDSC is based on the
number of shares you are selling and on the lesser of:
o The NAV of shares at the time of purchase
o The NAV of shares at the time of redemption
The longer the time between the purchase and the sale of shares, the lower the
rate of the CDSC. A Class B share purchase may not exceed $500,000.
<TABLE>
<CAPTION>
Determining The CDSC
- --------------------------------------------------------------------------------------------------
Redemption During Contingent Deferred Sales Charge
- --------------------------------------------------------------------------------------------------
<S> <C>
1st year since purchase 5%
- --------------------------------------------------------------------------------------------------
2nd year since purchase 4%
- --------------------------------------------------------------------------------------------------
3rd year since purchase 3%
- --------------------------------------------------------------------------------------------------
4th year since purchase 3%
- --------------------------------------------------------------------------------------------------
5th year since purchase 2%
- --------------------------------------------------------------------------------------------------
6th year since purchase 1%
- --------------------------------------------------------------------------------------------------
7th year since purchase 0%
- --------------------------------------------------------------------------------------------------
8th year since purchase 0% (Converts to Class A shares of equal dollar
value; Class A shares have lower ongoing
expenses than Class B shares)
- --------------------------------------------------------------------------------------------------
</TABLE>
For purposes of this CDSC, purchases made on any day during the calendar month
are counted as having been made on the first day of that month.
To keep your CDSC as low as possible, each time you place a request to sell
shares we will first sell any shares in your account that carry no CDSC (those
acquired through reinvestments of dividends or capital gains distributions). The
CDSC, if any, payable on shares acquired through an exchange between Conseco
Funds will be calculated based on the original purchase date of the Class B
shares exchanged.
Purchase Of Class C Shares
With Class C shares, you pay no sales charge when you invest, but you are
charged a contingent deferred sales charge (CDSC) when you sell shares you have
held for one year or less. In this case, shares are subject to a CDSC on
redemptions equal to 1% of the lower of:
o The NAV of shares at the time of purchase
o The NAV of shares at the time of redemption
Class C shares held one year or longer are not subject to this CDSC.
The ongoing expenses of Class C shares are higher than those of Class A shares.
Class C shares never convert to any other class of shares.
The CDSC also will not apply to shares acquired by the reinvestment of dividends
or capital gains distributions. The order in which Class C shares are redeemed
will be determined as described for Class B shares (see "Purchase of Class B
Shares").
29
<PAGE>
YOUR ACCOUNT
Determining Share Price
A Fund's share price is the total market value of its assets minus its
liabilities, called net asset value (NAV), divided by the total number of shares
outstanding. Because the value of each Fund's securities changes every business
day, the Fund's share price usually changes as well.
Each Fund calculates its NAV per share on each business day that the New York
Stock Exchange (NYSE) is open.
For each of the Funds, NAV is calculated at the close of regular trading on the
NYSE (normally 4:00 p.m., Eastern Time). The NAV is generally based on the
market price of the securities held in a Fund.
Under the direction of the Board, the Funds may use a practice known as fair
value pricing under the following circumstances:
o Securities and assets for which market quotations are not readily available
o Events that occur after an exchange closes are likely to affect the value of
the security
o Fund management strongly believes a market price is not reflective of the
security's appropriate value
30
<PAGE>
BUYING SHARES
Opening A New Account Is Easy
The Funds are open for business each day the New York Stock Exchange (NYSE) is
open for business. The Funds are closed for business on:
Saturday Presidents' Day Labor Day
Sunday Good Friday Thanksgiving Day
New Year's Day Memorial Day Christmas Day
Martin Luther King, Jr. Day Independence Day
When placing purchase orders, investors should specify whether the order is for
Class A, Class B or Class C shares. There are three convenient ways to begin
your Conseco Fund Group investment program.
<TABLE>
<CAPTION>
Through Financial
Intermediaries By Bank Wire By Mail
<S> <C> <C>
Shares of the Funds may Wire your investment to: Simply complete and sign an
be purchased through Firstar Bank Milwaukee, NA application to begin the process.
authorized broker-dealers, 777 E. Wisconsin Ave.
financial institutions and Milwaukee, WI 53202 Make your check payable
service organizations with ABA #075000022 to the Fund of your choice.*
whom the distributor has Credit to:
a selling agreement. Firstar Mutual Fund If you are adding to your
Services, LLC existing account, indicate
Important note: Each institution Account #112-952-137 your Fund account number
may have its own procedures Further credit to: directly on the check.
and requirements for buying (Name of fund, Account name,
and selling shares and may Account number) Mail your application
charge fees. Contact your and check to:
financial professional for For NEW accounts, please Conseco Fund Group
more information. promptly complete and mail c/o Firstar Mutual Fund Services, LLC
the account application form P.O. Box 701
to the Funds at the address Milwaukee, WI 53201-0701
given under "By Mail."
Or, for overnight mail:
c/o First Mutual Fund Services, LLC
615 E. Michigan St., 3rd Floor
Milwaukee WI 53202
(800) 986-3384
</TABLE>
*No third-party checks are accepted or starter/counter checks.
Payment for the shares purchased through a financial institution is due on
settlement date. The settlement date is normally three business days after the
order has been executed.
It is the responsibility of the broker, dealer, or other financial
intermediary to forward customer orders received prior to the close of the NYSE
to the Transfer Agent prior to its close of business that same day (normally
4:00 p.m., Eastern Time). Check with your investment professional to find out if
they have an internal deadline for receiving your order to ensure processing
that day.
Shares are purchased at the next share price calculation after your
investment is received. The Funds reserve the right to reject any purchase
order.
PLEASE INDICATE WHETHER YOU WOULD LIKE THE ABILITY TO REDEEM OR EXCHANGE
SHARES BY TELEPHONE OR WIRE WHEN YOU COMPLETE YOUR APPLICATION.
31
<PAGE>
YOUR ACCOUNT
Buying Shares
Choose Your Investment Amount
Conseco Fund Group offers a flexible range of minimum investment amounts to
initiate -- or add to -- your investment program.
Minimum Investments Per Fund
To open an account $250
- ------------------------------------------------------------------------------
To make a subsequent investment $50
- ------------------------------------------------------------------------------
To open a pre-authorized investment plan to
transfer assets from bank account to Fund $50
- ------------------------------------------------------------------------------
Initiate a Dollar Cost Averaging (DCA) Plan
through Firstar Money Market Fund account $5,000
- ------------------------------------------------------------------------------
Transfer assets from DCA Plan to Fund $250 each month
- ------------------------------------------------------------------------------
These requirements may be changed or waived at any time at the discretion of the
Funds' officers.
Dollar Cost Averaging: A Convenient Option
Through our dollar cost averaging (DCA) program, you can transfer equal
amounts of money on a regular basis from the Firstar Money Market Fund to
another investment choice.
If you have at least $5,000 invested in the money market fund, you can
transfer a minimum of $250 a month into a Conseco Fund. This investment plan
helps you buy more shares when the market is low and fewer shares when the
market is high. When you make regular investments of a given amount, you will
end up investing at different share prices over time. Over time, this can
help lower the average price you pay per share.
Of course, dollar cost averaging cannot assure a profit or protect against a
loss. Additionally, since such a plan involves continuous investment in
securities regardless of fluctuating price levels, investors should consider
the financial ability required to continue purchases through periods of low
price levels.
32
<PAGE>
Purchases By Check
An initial investment made by check must be accompanied by a completed
application. To avoid fees and delays, all checks should be drawn only on U.S.
banks in U.S. funds. A $25 charge may be imposed if any check submitted for
investment does not clear. Third-party checks will not be accepted. When you
purchase shares by check, you will not be allowed to redeem the shares until
your investment has been in the account for 12 business days.
Electronic Transfers Through Automated Clearing House
Electronic transfers through Automated Clearing House ("ACH") allow you to
initiate a purchase or redemption for as little as $50 or as much as $50,000
between your bank account and Fund account using the ACH network. Initial
purchase minimums apply.
You must complete the "ACH" section of the application for this privilege to be
applicable.
Pre-Authorized Investment Plan
You can establish a pre-authorized investment plan where your personal bank
account is automatically debited and your Fund account is automatically credited
with additional full and fractional shares ($50 minimum monthly or quarterly
investment). For further information on this process, please contact the
Transfer Agent at 800-986-3384. The minimum investment requirements may be
waived by the Funds for purchases made using certain programs.
33
<PAGE>
YOUR ACCOUNT
Selling Shares
After receipt of an authorized redemption request, shares are redeemed at net
asset value (NAV) on any business day, reduced by any required tax withholding.
Redemption requests should be accompanied by your account number, the exact name
of your account and your Social Security or taxpayer identification number. The
Fund will mail a check to your account address or, if you have elected the wire
redemption privilege, the Fund will wire the proceeds to your bank on the
following business day. A $12 fee will be charged for all wire transfers.
You may sell or redeem, some or all of your shares on any business day by doing
one of the following.
<TABLE>
<CAPTION>
Through Financial Intermediaries By Telephone By Mail
<S> <C> <C>
If you bought your shares Individual investors may Financial intermediaries, as well
through a broker/dealer or communicate redemption as institutional and individual
other financial intermediary, orders by telephone. investors, may sell shares by
you may redeem your shares writing the Funds at the
by calling them directly. following address:
Financial intermediaries Conseco Fund Group
may communicate c/o Firstar Mutual Fund Services, LLC
redemption orders P.O. Box 701
by wire and telephone. Milwaukee, WI 53201-0701
Important note: Each Or, for overnight mail:
institution may have c/o Firstar Mutual Fund Services, LLC
its own procedures and 615 E. Michigan St., 3rd Floor
requirements for buying Milwaukee, WI 53201-0701
and selling shares and may (800) 986-3384
charge fees. Contact your
financial professional for Redemption certifications
more information. and signature guarantees may
be required.
</TABLE>
Redemption orders placed through a financial intermediary will receive the next
calculated net asset value after the order has been accepted, minus any
applicable contingent deferred sales charge.
It is the responsibility of the financial intermediary to forward customer
redemption orders received prior to the close of the NYSE to the Transfer Agent
prior to its close of business that same day (normally 4:00 p.m., Eastern Time).
More about selling your shares
Your shares will be sold at the next NAV calculated after your order is
accepted. Your order will be processed promptly and you will generally receive
the proceeds within seven business days.
A Fund may delay payment up to 12 days in the event the check you used to
purchase shares has not cleared. To shorten this delay, consider purchasing your
shares by bank wire through Federal Funds.
Under certain extraordinary circumstances, where the law allows additional time,
a Fund may suspend the right to redeem shares.
34
<PAGE>
Redeeming Class B and C Shares
Shares acquired through reinvestment of dividends and capital gains
distributions will be redeemed first, followed by shares held for the longest
period of time.
Upon redemption of Class B shares acquired through an exchange, the contingent
deferred sales charge, if any, will be calculated based on the original purchase
date of the shares exchanges.
Upon redemption of Class C shares acquired through an exchange and held less
than one year, the contingent deferred sales charge, if any, will also be
calculated based on the original purchase date of the shares exchanged.
Redemptions By Mail
Redemption certification is provided on the application. A signature guarantee
is required for redemptions of $50,000 or more. A signature guarantee may be
obtained from most banks, brokers and dealers, credit unions, savings
associations and financial institutions, but not from a notary public.
Redemptions By Wire Or Telephone
Financial intermediaries may charge for their services in connection with your
redemption request. A $12 fee will be charged for all wire transfers.
Although the Funds and the Transfer Agent will not be responsible for the
authenticity of telephone instructions, the following procedures have been
established to confirm that instructions communicated by telephone are genuine:
o Recording telephone instructions for exchanges and expedited redemptions
o Requiring the caller to give certain specific identifying information
o Providing written confirmations to shareholders not later than five days
following a telephone transaction
If the Funds and the Transfer Agent do not employ these procedures, they may be
liable for any losses due to unauthorized or fraudulent telephone instructions.
Certain financial intermediaries may be authorized to accept redemption orders
on behalf of the Funds. A Fund will be deemed to have received a redemption
order when such a financial intermediary accepts the order.
Expedited Redemptions
You may have the payment of redemption requests (of $50 or more) wired or sent
via Electronic Funds Transfer (EFT) directly to a designated domestic commercial
bank account or the full redemption mailed directly to the address on the
account. Normally, such payments will be transmitted on the business day
following execution of the request. A $12 fee will be charged for all wire
transfers.
For telephone redemptions, call the Transfer Agent at (800) 986-3384. You must
complete the "Wire/Electronic Transfer Options" section of the application for
this privilege to be applicable.
35
<PAGE>
YOUR ACCOUNT
Additional Shareholder Services
Systematic Withdrawal Plan
This plan may be used for routine payments to you or a designated party.
If you reinvest your distributions, you can have regular monthly or quarterly
payments withdrawn, at no charge, in excess of $50, as long as the account has a
value of at least $5,000.
To elect this plan, simply complete the appropriate section on the application.
Redemptions are normally processed on or about the 25th day of each month or
quarter. Checks are then mailed on or about the first of the following month.
Changing or terminating your plan is easy. Simply give written notice to the
Transfer Agent.
Exchange Privilege
You may exchange shares of one Conseco Fund for shares of the same class of any
other Fund, or for shares of the Firstar Money Market Fund, without paying an
additional sales charge.
The value of shares to be exchanged must meet the fund's minimum investment
requirement.
Class A Shares An initial sales charge for Class A shares, if applicable,
will be made on exchanges from the Firstar Money Market Fund to a Fund's
Class A shares.
Class B and C Shares Although a contingent deferred sales charge (CDSC) is
not charged upon an exchange to another fund or Firstar Money Market Fund
within the same class of shares, a CDSC may be applied on redemptions from
the Firstar Money Market Fund based on the original purchase date of the
Class B or Class C shares exchanged.
Shares from the Firstar Money Market Fund may be exchanged back to the
originating Class of shares without any additional charges. In the case of Class
B and C shares, a contingent deferred sales charge (CDSC) may be applied on
subsequent redemptions from any fund based on the original purchase date of the
shares.
Normally, exchanges can be completed on the same business day.
Reinstatement Privilege
You may reinstate your investment by reinvesting any or all of your
redemption proceeds within 180 calendar days.
o Reinvest redemptions from Class A shares at net asset value without any
initial sales charge.
o Reinvest redemptions from your Class B or Class C shares and you will be
reimbursed pro rata for the contingent deferred sales charge paid.
The reinstatement privilege may be utilized only once per Fund investment and
may be subject to other restrictions.
Record-Keeping Made Easy
You will receive a confirmation of each new transaction in your account. You may
rely on these confirmations in lieu of certificates, which will not be issued,
as evidence of your ownership.
36
<PAGE>
CONSECO FUND GROUP
CONSECO FIXED INCOME FUND
CONSECO HIGH YIELD FUND
CONSECO CONVERTIBLE SECURITIES FUND
CONSECO BALANCED FUND
CONSECO EQUITY FUND
CONSECO 20 FUND
Supplement Dated July 30, 1999 to the
Statement of Additional Information for
Class A, B and C Shares
dated March 12, 1999, AS REVISED APRIL 28, 1999
The following Conseco Fund Group's service providers are replacing the existing
service providers:
SUB-ADMINISTRATOR: Firstar Mutual Fund Services, LLC performs certain
administrative services for each of the Funds, pursuant to agreements with
Conseco Services, LLC (the "Administrator").
TRANSFER AGENT: Firstar Mutual Fund Services, LLC is the transfer agent for each
Fund.
<PAGE>
[Logo--Conseco]
CONSECO R
STEP UP TM
CONSECO FUND GROUP
Supplement dated July 30, 1999
to the Prospectus for Class Y Shares
dated March 12, 1999, AS REVISED APRIL 28, 1999
Conseco Fixed Income Fund
Conseco High Yield Fund
Conseco Convertible Securities Fund
Conseco Balanced Fund
Conseco Equity Fund
Conseco 20 Fund
THE FOLLOWING PAGES REPLACE IN THEIR ENTIRETY PAGES 18-19 AND 25-28
OF THE CONSECO FUND GROUP CLASS Y PROSPECTUS
DATED MARCH 12, 1999, AS REVISED APRIL 28, 1999.
<PAGE>
FEES AND EXPENSES
Fees and Expenses
The tables below describe the fees and expenses that you may pay if you buy and
hold shares of the Funds. These expenses are deducted from the Funds' assets.
Shareholder Fees
(fees paid directly from your investments)
- --------------------------------------------------------------------
Conseco Fixed Conseco High
Income Fund Yield Fund
- --------------------------------------------------------------------
Maximum Front-End
Sales Charge (Load)
Imposed on Purchase None None
- --------------------------------------------------------------------
Maximum Deferred Sales
Charge Load None None
- --------------------------------------------------------------------
THE FUNDS DO NOT CHARGE ANY FEES FOR REINVESTING DIVIDENDS, OR
REDEEMING OR EXCHANGING FUND SHARES.
Annual Fund Operating Expenses
(expenses that are deducted from each Fund's assets) as a % of average daily
net assets
CLASS Y SHARES
- -------------------------------------------------------------------
Conseco Fixed Conseco High
Income Fund Yield Fund
- -------------------------------------------------------------------
Management and
Administrative Fees 0.65% 0.90%
- -------------------------------------------------------------------
Distribution
(12b-1) Fees 0.00% 0.00%
- -------------------------------------------------------------------
Other Expenses 0.81% 2.34%
----- -----
- -------------------------------------------------------------------
Equals: Total Annual
Fund Operating Expenses 1.46% 3.24%
- -------------------------------------------------------------------
Less: Fee Waiver and/or
Expense Reimbursement* 0.86% 2.34%
----- -----
- -------------------------------------------------------------------
Equals: Net Expenses 0.60% 0.90%
===== =====
- -------------------------------------------------------------------
* PURSUANT TO A CONTRACTUAL ARRANGEMENT WITH THE FUND, THE ADVISER, DISTRIBUTOR
AND ADMINISTRATOR HAVE AGREED TO WAIVE FEES AND/OR REIMBURSE FUND EXPENSES
THROUGH 4/30/00, SO THAT THE TOTAL ANNUAL OPERATING EXPENSES OF EACH FUND ARE
LIMITED TO THE NET EXPENSES FOR EACH RESPECTIVE FUND, AS SET FORTH ABOVE.
THIS ARRANGEMENT DOES NOT COVER INTEREST, TAXES, BROKERAGE COMMISSIONS, AND
EXTRAORDINARY EXPENSES.
+ BECAUSE THE FUND HAS NOT COMPLETED A FULL FISCAL YEAR, OTHER EXPENSES ARE
ESTIMATED.
18
<PAGE>
- ---------------------------------------------------------------
Conseco Convertible Conseco Conseco Conseco
Securities Fund Balanced Fund Equity Fund 20 Fund
- ---------------------------------------------------------------
None None None None
- ---------------------------------------------------------------
None None None None
- ---------------------------------------------------------------
- ----------------------------------------------------------------
Conseco Convertible Conseco Conseco Conseco
Securities Fund Balanced Fund Equity Fund 20 Fund
- ----------------------------------------------------------------
1.05% 0.90% 0.90% 0.90%
- ----------------------------------------------------------------
0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------
1.25%+ 1.29% 0.52% 2.87%
----- ----- ----- -----
- ----------------------------------------------------------------
2.30% 2.19% 1.42% 3.77%
- ----------------------------------------------------------------
1.25% 1.19% 0.42% 2.52%
----- ----- ----- -----
- ----------------------------------------------------------------
1.05% 1.00% 1.00% 1.25%
===== ===== ===== =====
- ----------------------------------------------------------------
19
<PAGE>
Buying Shares
To buy Class Y shares, you must be a qualifying individual investor, whose Fund
investments exceed $500,000, or an institutional investor.
Institutional investors may include the following:
o Tax-qualified plans with at least $10 million in assets or 250 plan eligible
employees
o Banks and insurance companies investing for their own accounts
o Investment companies unaffiliated with the Adviser
o Tax-qualified retirement plans of the Adviser or qualified financial
intermediaries who have a contract with the Distributor
o Endowments, foundations and other charitable organizations
o Wrap fee accounts or asset allocation programs where the shareholder pays an
asset-based fee
Opening a New Account is Easy
The Funds are open for business each day the New York Stock Exchange (NYSE) is
open for business. The Funds are closed for business on:
Saturday Presidents' Day Labor Day
Sunday Good Friday Thanksgiving Day
New Year's Day Memorial Day Christmas Day
Martin Luther King, Jr. Day Independence Day
There are three convenient ways to begin your Conseco Fund Group investment
program.
<TABLE>
<S> <C> <C>
Through Financial
Intermediaries By Bank Wire By Mail
Shares of the Funds may Wire your investment to: Simply complete and sign an
be purchased through Firstar Bank Milwaukee, NA application to begin the process.
authorized broker-dealers, 777 E. Wisconsin Ave.
financial institutions and Milwaukee, WI 53202 Make your check payable
service organizations with ABA #075000022 to the Fund of your choice.*
whom the distributor has Credit to:
a selling agreement. Firstar Mutual Fund Services, LLC If you are adding to your
Account #112-952-137 existing account, indicate
Important note: Each institution Further credit to: (Name of fund, your Fund account number
may have its own procedures Account name, Account number). directly on the check.
and requirements for buying
and selling shares and may For NEW accounts, please Mail your application
charge fees. Contact your promptly complete and mail and check to:
financial professional for the account application form Conseco Fund Group
more information. to the Funds at the address c/o Firstar Mutual Fund Services, LLC
given under "By Mail." P.O. Box 701
Milwaukee, WI 53201-0701
Or for overnight mail:
Conseco Fund Group
c/o Firstar Mutual Fund Services, LLC
615 E. Michigan St., 3rd Floor
Milwaukee, WI 53202
(800) 986-3384
</TABLE>
*No third-party checks are accepted or starter/counter checks.
25
<PAGE>
YOUR ACCOUNT
Payment for the shares purchased through a financial institution is due on
settlement date. The settlement date is normally three business days after the
order has been executed.
It is the responsibility of the broker, dealer, or other financial intermediary
to forward customer orders received prior to the close of the NYSE to the
Transfer Agent prior to its close of business that same day (normally 4:00 p.m.,
Eastern Time). Check with your investment professional to find out if they have
an internal deadline for receiving your order to ensure processing that day.
Shares are purchased at the next share price calculation after your investment
is received. The Funds reserve the right to reject any purchase order.
Please indicate whether you would like the ability to redeem or exchange shares
by telephone or wire when you complete your application.
Purchases By Check
An initial investment made by check must be accompanied by a completed
application. To avoid fees and delays, all checks should be drawn only on U.S.
banks in U.S. funds. A $25 charge may be imposed if any check submitted for
investment does not clear. Third-party checks will not be accepted. When you
purchase shares by check, you will not be allowed to redeem the shares until
your investment has been in the account for 12 business days.
Electronic Transfers Through Automated Clearing House
Electronic transfers through the Automated Clearing House ("ACH") allow you to
initiate a purchase or redemption for as little as $50 or as much as $50,000
between your bank account and Fund account using the ACH network. Initial
purchase minimums apply.
You must complete the "ACH" section of the application for this privilege to be
applicable.
26
<PAGE>
Selling Shares
After receipt of an authorized redemption request, shares are redeemed at net
asset value (NAV) on any business day, reduced by any required tax withholding.
Redemption requests require your account number, the exact name of your account
and your Social Security or taxpayer identification number. The Fund will mail a
check to your account address or, if you have elected the wire redemption
privilege, the Fund will wire the proceeds to your bank on the following
business day. A $12 fee will be charged for all wire transfers.
You may sell or redeem, some or all of your shares on any business day by doing
one of the following.
<TABLE>
<CAPTION>
Through Financial Intermediaries By Telephone By Mail
<S> <C> <C>
If you bought your shares Individual investors may Financial intermediaries, as well
through a broker/dealer or communicate redemption as institutional and individual
other financial intermediary, orders by telephone. investors, may sell shares by
you may redeem your shares writing the Funds at the
by calling them directly. following address:
Financial intermediaries Conseco Fund Group
may communicate c/o Firstar Mutual Fund Services, LLC
redemption orders P.O. Box 701
by wire and telephone. Milwaukee, WI 53201-0701
Important note: Each Or for overnight mail:
institution may have c/o Firstar Mutual Fund Services, LLC
its own procedures and 615 E. Michigan St.
requirements for buying Milwaukee, WI 53202
and selling shares and may (800) 986-3384
charge fees. Contact your
financial professional for Institutional investors must
more information. have appropriate redemption
certifications on file before a
redemption can be completed.
Signature guarantees are required~
for amounts of $50,000 or more.
</TABLE>
Redemption orders placed through a financial intermediary will receive the next
calculated net asset value after the order has been accepted.
It is the responsibility of the financial intermediary to forward customer
redemption orders received prior to the close of the NYSE to the Transfer Agent
prior to close of business that same day (usually 4:00 p.m., Eastern Time).
More about selling your shares
Your shares will be sold at the next NAV calculated after your order is
accepted. Your order will be processed promptly and you will generally receive
the proceeds within seven business days.
A Fund may delay payment up to 12 days in the event the check you used to
purchase shares has not cleared. To shorten this delay, consider purchasing your
shares by bank wire through Federal Funds.
Under certain extraordinary circumstances, where the law allows additional time,
a Fund may suspend the right to redeem shares.
27
<PAGE>
YOUR ACCOUNT
Redemptions By Mail
Redemption certification is provided on the application. A signature guarantee,
required for redemptions of $50,000 or more, may be obtained from most banks,
brokers and dealers, credit unions, savings associations and financial
institutions, but not from a notary public.
Redemptions By Wire Or Telephone
Financial intermediaries may charge for their services in connection with your
redemption request. A $12 fee will be charged for all wire transfers.
Although the Funds and the Transfer Agent will not be responsible for the
authenticity of telephone instructions, the following procedures have been
established to confirm that instructions communicated by telephone are genuine:
o Recording telephone instructions for exchanges and expedited redemptions
o Requiring the caller to give certain specific identifying information
o Providing written confirmations to shareholders not later than five days
following a telephone transaction
If the Funds and the Transfer Agent do not employ these procedures, they may be
liable for any losses due to unauthorized or fraudulent telephone instructions.
Certain financial intermediaries may be authorized to accept redemption orders
on behalf of the Funds. A Fund will be deemed to have received a redemption
order when such a financial intermediary accepts the order.
Expedited Redemptions
You may have the payment of redemption requests (of $50 or more) wired or sent
via Electronic Funds Transfer (EFT) directly to a designated domestic commercial
bank account or the full redemption mailed directly to the address on the
account. Normally, such payments will be transmitted on the business day
following execution of the request. A $12 fee will be charged for all wire
transfers.
For telephone redemptions, call The Transfer Agent at 800-986-3384. You must
complete the "Wire/Electronic Transfer Options" section of the application for
this privilege to be applicable.
Exchange Privilege
You may exchange shares of one Conseco Fund for shares of the same class of any
other Fund, or for shares of the Firstar Money Market Fund, at NAV. The value of
shares to be exchanged must meet the Fund's minimum investment requirement.
Normally, exchanges can be completed on the same business day.
28
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CONSECO FUND GROUP
CONSECO FIXED INCOME FUND
CONSECO HIGH YIELD FUND
CONSECO CONVERTIBLE SECURITIES FUND
CONSECO BALANCED FUND
CONSECO EQUITY FUND
CONSECO 20 FUND
Supplement Dated July 30, 1999 to the
Statement of Additional Information for
Class Y Shares
dated March 12, 1999, AS REVISED APRIL 28, 1999
The following Conseco Fund Group's service providers are replacing the existing
service providers:
SUB-ADMINISTRATOR: Firstar Mutual Fund Services, LLC performs certain
administrative services for each of the Funds, pursuant to agreements with
Conseco Services, LLC (the "Administrator").
TRANSFER AGENT: Firstar Mutual Fund Services, LLC is the transfer agent for each
Fund.
Additionally, the following paragraph should be inserted as the first paragraph
under "Purchase, Redemption and Pricing of Shares" on page 44:
Your initial purchase amount should be at least $500,000. However, the
minimum may be waived at the discretion of the Fund's officers. The Fund and the
Distributor reserves the right to reject any order for the purchase of shares in
whole or in part. The Trust reserves the right to cancel any purchase order for
which payment has not been received by the third business day following
placement of the order.
