THE DEFENSIVE EQUITY PORTFOLIO
of Analytic Optioned Equity Fund, Inc.
SUPPLEMENT TO THE PROSPECTUS
Dated July 28, 1997
The information under the heading "FUND EXPENSE TABLE" on page 5
is amended as follows:
The following tables illustrate the expenses and fees that a
shareholder of the Fund will incur. However, transaction
fees may be charged if a broker-dealer or other financial
intermediary deals with the Fund on your behalf. (See "How
to Purchase Shares.") The expenses set forth in the tables
are based on the Fund's 1996 fiscal year.
The first paragraph under the heading "HOW TO PURCHASE SHARES" on
page 17 is amended as follows:
Shares of the Fund are purchased directly from the Fund
with no sales charge or commission at net asset value next
computed after an order and payment are received by the
Fund. Any order received after 1:00 P.M. Pacific Time will
be processed at the next day's closing net asset value.
There is no minimum on initial or subsequent purchases of
Fund shares by tax deferred retirement plans (including IRA,
SEP-IRA and profit sharing and money purchase plans) or
Uniform Gifts to Minors Act accounts. For other investors
the minimum is $5,000 for an initial purchase and there is
no minimum for subsequent purchases.
The information under the heading "HOW TO PURCHASE SHARES"
on page 17 is supplemented as follows:
Shares of the Fund may be purchased by customers of
brokers-dealers or other financial intermediaries ("Service
Agents") which have established a shareholder servicing
relationship with the Fund on behalf of their customers.
Service Agents may impose additional or different conditions
on purchases or redemptions of Fund shares and may charge
transaction or other account fees. Each Service Agent is
responsible for transmitting to its customers a schedule of
any such fees and information regarding additional or
different purchase or redemption conditions. Shareholders
who are customers of Service Agents should consult their
Service Agent for information regarding these fees and
conditions. Amounts paid to Service Agents may include
transaction fees and/or service fees paid by the Fund from
the Fund assets attributable to the Service Agent, which
would not be imposed if shares of the Fund were purchased
directly from the Fund or the Distributor. Service Agents
may provide shareholder services to their customers that are
not available to a shareholder dealing directly with the
Fund.
Service Agents may enter confirmed purchase orders on
behalf of their customers. If shares of the Fund are
purchased in this manner, the Service Agent must receive
your investment order before the close of trading on the New
York Stock Exchange, and transmit it to the Fund's Sub-
Transfer Agent, Chase Global Funds Services Company, prior
to the close of their business day to receive that day's
share price. Proper payment for the order must be received
by the Sub-Transfer Agent no later than the time when the
Fund is priced on the following business day. Service Agents
are responsible to their customers and the Fund for timely
transmission of all subscription and redemption requests,
investment information, documentation and money.
