HORACE MANN MUTUAL FUNDS
Supplement to Prospectus dated May 1, 1997
The first paragraph of the section entitled "Management - The
Subadvisers - International Equity Fund" and the first paragraph of the section
entitled "Management - The Subadvisers - Socially Responsible Fund" on page 12
are revised to read as follows:
Scudder, Stevens and Clark, Inc. ("SSC"), a registered investment
adviser, currently serves as the investment subadviser of the
International Equity Fund and the Socially Responsible Fund pursuant to
a Subadvisory agreement with Investors. On June 27, 1997, SSC announced
the signing of a definitive merger agreement with the Zurich Group, a
leading international insurance and financial services organization
("Zurich"). Under the agreement, Zurich's subsidiary, Zurich Kemper
Investments, Inc., an investment manager with approximately $80 billion
in assets under management, will be combined with SSC's $120 billion
mutual fund and asset management operation, to form Scudder Kemper
Investments, Inc. After the merger is completed, Scudder Kemper
Investments, Inc. will act as the investment subadviser for the
International Equity Fund and the Socially Responsible Fund.
The second through fifth paragraphs of the section entitled "Management
- - The Subadvisers - International Equity Fund" and the third through fifth
paragraphs of the section entitled "Management - The Subadvisers - Socially
Responsible Fund" on page 12 are supplemented as follows:
The International Equity Fund and the Socially Responsible Fund are
each managed by a team of SSC investment professionals who each play an
important role in the Fund's management process. Team members work
together to develop investment strategies and select securities for the
Fund's portfolio. They are supported by SSC's large staff of
economists, research analysts, traders and other investment specialists
who work in SSC's offices across the United States and abroad. SSC
believes its team approach benefits Fund investors by bringing together
many disciplines and leveraging SSC's extensive resources.
The SSC international equity team includes the following individuals,
each of whom have been a member of the team since the International
Equity Fund's inception, unless otherwise noted:
Effective August 1, 1997, Irene Cheng became the team's lead portfolio
manager. Ms. Cheng, who has over 13 years of industry experience and
joined SSC in 1993, focuses on portfolio management and equity strategy
for SSC's international equity investments.
Nicholas Bratt, Portfolio Manager, directs SSC's overall global equity
investment strategies. Mr. Bratt joined SSC and the team in 1976.
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Carol L. Franklin, a member of the international equity team, joined
SSC International Fund's portfolio management team in 1986. Ms.
Franklin, who has over 20 years of experience in finance and investing,
joined SSC in 1981.
Joan Gregory, Portfolio Manager, focuses on stock selection, a role she
has played since she joined SSC in 1992. Ms. Gregory, who joined the
team in 1994, has been involved with investment in global and
international stocks.
Marc Joseph, Portfolio Manager, has been a member of the team since
July 1997, when he joined SSC as a member of SSC's Global Equity Group,
where he focuses on managing international equity portfolios. Prior
thereto, he managed international portfolios and has over 10 years of
industry experience.
Sheridan Reilly, Portfolio Manager, joined SSC in 1995 and is a member
of SSC's Global Equity Group. Mr. Reilly has over 10 years of industry
experience focusing on strategies for global portfolios, currency
hedging and foreign equity markets.
The SSC socially responsible growth and income team includes the
following individuals, each of whom has been a member of the team since
the Socially Responsible Fund's inception:
Lori Ensinger, Lead Portfolio Manager, joined SSC and the portfolio
management team in 1993. Ms. Ensinger focuses on stock selection and
investment strategy. She has worked as a portfolio manager since 1983.
Robert T. Hoffman, Portfolio Manager, joined SSC in 1990. Since then,
he has been involved in all aspects of investment decision-making for
the team and currently directs the investment management of all assets
under the growth and income approach. Mr. Hoffman has 13 years of
experience in the investment industry, including several years of
pension fund management experience.
Deborah Chaplin, Portfolio Manager, has focused on stock selection and
investment strategy since joining the portfolio management team in
1997. Ms. Chaplin, who joined SSC in 1996, has over four years of
investment experience as a securities analyst and portfolio manager.
Prior to joining SSC, Ms. Chaplin was a research fellow in the Faculty
of Letters at Kyoto University, Japan.
Benjamin W. Thorndike, Portfolio Manager, is the Fund's chief analyst
and strategist for convertible securities. Mr. Thorndike, who has 18
years of investment experience, joined SSC in 1983 as a portfolio
manager, and the Fund at its inception.
Kathleen T. Millard, Portfolio Manager, has been involved in the
investment industry since 1983 and has worked as a portfolio manager
since 1986. Ms. Millard, who joined SSC in 1991 and the Fund at its
inception, focuses on strategy and stock selection.
Supplement dated October 8, 1997.
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