HORACE MANN MUTUAL FUNDS
INTERNATIONAL EQUITY FUND
SOCIALLY RESPONSIBLE FUND
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1998
On September 7, 1998, the financial services businesses of Zurich Insurance
Company ("Zurich") and the financial services businesses of B.A.T Industries plc
("B.A.T") formed a new global insurance and financial services group known as
Zurich Financial Services. By way of a dual holding company structure, current
Zurich shareholders own approximately 57% of the new organization, with the
balance owned by B.A.T's shareholders.
Upon consummation of the transaction, the current sub-advisory agreement for the
International Equity Fund and the Socially Responsible Fund between Horace Mann
Investors, Inc. and Scudder Kemper Investments, Inc. ("Scudder Kemper") will
automatically terminate and a new agreement must be approved by the Board of
Trustees as well as the shareholders of the Funds. The Board of Trustees has
scheduled a meeting for October 29, 1998 to consider a new sub-advisory
agreement that will be substantially identical to the current sub-advisory
agreement. Pending Board and shareholder approval of the new sub-advisory
agreement, Scudder Kemper will continue to provide sub-advisory services to the
International Equity Fund and to the Socially Responsible Fund and will seek
retroactive compensation following Board and shareholder approval of the new
subadvisory agreement.
Dated: September 11, 1998
