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Merrill Lynch Index Funds, Inc.
Supplement dated August 2, 1999
to the Prospectus and Statement of Additional Information dated April 30, 1999
Effective August 2, 1999, Fund Asset Management, L.P. ("FAM") has replaced
Merrill Lynch Asset Management, L.P. ("MLAM") as the investment adviser of the
underlying "master" series. FAM is an affiliate of MLAM which shares
substantially the same investment personnel, including the personnel
responsible for providing management services to the underlying "master"
series. There will be no change in the nature and quality of services provided,
or the fees paid, as a result of the change from MLAM to FAM.
At a board meeting on August 2, 1999, the Directors of Merrill Lynch Index
Funds, Inc. (the "Fund") approved new administration fees with respect to each
series of the Fund. Due to expense reimbursements and/or fee waivers by MLAM
and/or FAM, the change in administrative fees will not impact the actual total
operating expenses of each series. Effective immediately, the new
administration fees payable to the administrator, the total annual operating
expenses and the total annual operating expenses after reimbursement and/or fee
waivers by MLAM and/or FAM will be as follows:
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Fund Administration Total Annual Actual Total
Fees Operating Operating
Expenses* Expenses
(After
Reimbursement/
Waiver)**
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Class A Class D Class A Class D
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Merrill Lynch S&P 0.245% 0.445% 0.695% 0.39% 0.64%
500 Index Fund
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Merrill Lynch Small 0.29% 0.91% 1.16% 0.50% 0.75%
Cap Index Fund
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Merrill Lynch 0.19% 0.45% 0.70% 0.35% 0.60%
Aggregate Bond
Index Fund
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Merrill Lynch 0.34% 0.86% 1.12% 0.64% 0.89%
International Index
Fund
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* Includes the expenses of both the "feeder" fund and its pro rata share
of the expenses of the "master" series.
** Includes the expenses of both the "feeder" fund and its pro rata share
of the expenses of the "master" series. The reimbursement of fees may be
discontinued or reduced by MLAM and/or FAM at any time without notice.
