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PROSPECTUS SUPPLEMENT
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SBL Fund
Members of The Security Benefit Group of Companies
700 Harrison, Topeka, Kansas 66636-0001
Supplement Dated December 23, 1998
to Prospectus Dated April 1, 1998
Effective December 31, 1998, Lexington Management Corporation ("Lexington")
has resigned as sub-adviser to SBL Fund, Series K (Global Aggressive Bond
Series). Beginning January 1, 1999, Security Management Company, LLC (the
"Investment Manager") will assume Lexington's investment advisory
responsibilities with respect to Series K.
Any references in the prospectus to the sub-advisory services provided by
Lexington with respect to Series K are deleted effective December 31, 1998.
Under the section "Management of the Fund," a sub-advisory contract between
Lexington and MFR Advisors, Inc. ("MFR") is described. Effective December 31,
1998, such sub-advisory agreement is terminated.
The ninth paragraph of the section "Management of the Fund" is deleted in its
entirety and replaced with the following:
The Investment Manager pays Lexington an annual fee equal to .35
percent of the average net assets of Series K for management services
provided to Series K. For the services provided to Lexington by MFR, MFR
receives from Lexington, on an annual basis, a fee equal to .15 percent of
the average net assets of Series K, calculated daily and payable monthly.
Beginning January 1, 1999, the Investment Manager will cease paying
Lexington fees for such advisory services and Lexington will cease paying
MFR.
The first paragraph of the section "Portfolio Management" is amended to
reflect that effective January 1, 1999, Series K is managed by the Investment
Manager and David Eshnaur has day-to-day responsibility for managing the Series'
portfolio.
The fifth and ninth paragraphs of the section "Portfolio Management" are
deleted effective December 31, 1998, to reflect the change in portfolio manager.
Investors should retain this Supplement for future reference.
