CENTURION FUNDS, INC.
on behalf of the
Centurion U.S. Equity Fund
Supplement dated January 31, 2000 to the
Prospectus dated January 28, 2000
The following information supplements certain information contained in the
Prospectus and Statement of Additional Information of the Funds.
On January 13, 2000, the Board of Directors of Centurion Funds, Inc. approved
the following with respect to the Centurion U.S. Equity Fund (the "Fund"):
Changing the Fund's investment goal from "seeks to provide long-term after-tax
growth consistent with reasonable efforts to preserve capital" to "seeks to
provide long-term growth consistent with
reasonable efforts to preserve capital." The Board of Directors may change the
Fund's investment goal without shareholder approval.
To seek its new investment goal, the Board of Directors also approved the
termination of Parametric Portfolio Associates ("Parametric") as an investment
sub-adviser to the Fund. Parametric will be
replaced with Trainer, Wortham & Company Inc. ("Trainer") commencing on March
15, 2000. Trainer will render sub-investment advisory services to the Fund on
an interim basis pending approval by a majority vote of shareholders of the
Fund as defined in the Investment Company Act of 1940, as amended.
Trainer employs a "bottom-up" stock fundamental analysis process which
emphasizes companies with the following qualities: (i) large capitalization,
high quality, industry leaders; (ii) financially sound
companies with solid, proven management; (iii) consistent earnings growth rates
above those of the market; (iv) stock prices that have historically out
performed the S&P 500 Index; and (v) a catalyst for further stock price
appreciation.
The Board has also approved changing the Fund's performance benchmark from the
Russell 3000 Index to the S&P 500 Index (the "Index"). The Index is one of the
most widely used benchmarks of U.S. Equity
performance. The Index consists of 500 stocks chosen for market capitalization,
liquidity and industry group representation. The Index is market-value-
weighted, so the largest of the 500 companies have a bigger impact on the
performance of the Index. The Index is unmanaged.
The investment sub-advisory agreement between the Fund's Manager,
Centurion Trust Company, and Trainer will be substantively identical to the
comparable agreement with Parametric. Trainer, located at 845
Third Avenue, New York, New York, currently manages approximately $2.6 billion
in assets. With the hiring of Trainer, the allocation of assets of the Fund
will be as follows: Trainer 90% and Credit Suisse Asset Management LLC 10%.
The above changes with respect to the Fund will become effective on March 15,
2000, the date on which Trainer will begin managing the Fund.
