PBHG INSURANCE SERIES FUND, INC.
SUPPLEMENT DATED NOVEMBER 3, 1999
TO THE PROSPECTUS DATED MAY 1, 1999
This Supplement updates certain information contained in the
Prospectus, as supplemented on May 28, 1999 and November 1, 1999. This
Supplement supercedes and replaces in its entirety the Supplement dated
September 20, 1999. You should retain the Prospectus and all Supplements for
future reference. You may obtain an additional copy of the Prospectus, as
supplemented, free of charge by calling 1-800-347-9256.
On November 2, 1999, a special meeting of shareholders of the Portfolio
was held, at which shareholders approved two proposals: (1) to change the
Portfolio from a diversified to a non-diversified investment company and (2) to
allow the Portfolio to concentrate its investments in one or more industries in
the technology and communications sectors. Accordingly, effective immediately
the following replaces in its entirety the information appearing under the
headings "Main Investment Strategies" and "Main Investment Risks" on page 12 of
the Prospectus:
MAIN INVESTMENT STRATEGIES:
Under normal market conditions, the Portfolio, a non-diversified fund, will
invest at least 65% of its total assets in common stocks of companies doing
business in the technology and communications sectors of the market. In
addition, the Portfolio is concentrated which means it will invest 25% or more
of its total assets in one or more of the industries within these sectors. These
industries may include computer software and hardware, network and cable
broadcasting, semiconductors, defense and data storage and retrieval, and
biotechnology. The Portfolio offers investors significant growth potential
because it invests in companies that may be responsible for breakthrough
products or technologies or positioned to take advantage of cutting-edge
developments. The Portfolio's holdings may range from smaller companies
developing new technologies or pursuing scientific breakthroughs to large, blue
chip firms with established track records in developing, using or marketing
scientific advances.
The Portfolio may use options and futures contracts for hedging and risk
management.
MAIN INVESTMENT RISKS:
The Portfolio is non-diversified which means, as compared to a diversified fund,
it invests a higher percentage of its assets in a limited number of stocks in
order to achieve a potentially greater investment return than a more diversified
fund. As a result, the price change of a single security, positive or negative,
has a greater impact on the Portfolio's net asset value and will cause its
shares to fluctuate in value more than it would in a more widely diversified
fund.
The Portfolio is concentrated which means, compared to a non-concentrated fund,
it invests a higher percentage of its assets in specific industries within the
technology and communications sectors of the market in order to achieve a
potentially greater investment
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return. As a result, the economic, political and regulatory developments in a
particular industry, positive or negative, have a greater impact on the
Portfolio's net asset value and will cause its shares to fluctuate more than if
the Portfolio did not concentrate its investments.
The value of your investment in the Portfolio will go up and down, which means
you could lose money, but you also have the potential to make money.
The price of the securities in the Portfolio will fluctuate. These price
movements may occur because of changes in the financial markets, the company's
individual situation, or industry changes. These risks are greater for companies
with smaller market capitalizations because they tend to have more limited
product lines, markets and financial resources and may be dependent on a smaller
management group than larger, more established companies.
Securities of technology and communications companies are strongly affected by
worldwide scientific and technological developments and governmental policies
and, therefore, are generally more volatile than securities of companies not
dependent upon or associated with technology and communications issues.
The Portfolio's use of options and futures contracts may reduce returns or
increase volatility.
Although the Portfolio strives to achieve its goal, it cannot offer guaranteed
results.
Your investment in the Portfolio is not a bank deposit. It is not insured or
guaranteed by the FDIC or any other government agency.
