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OHIO NATIONAL FUND, INC.
SUPPLEMENT DATED NOVEMBER 22, 1999 TO THE
PROSPECTUS DATED MAY 1, 1999
This prospectus supplement describes the following changes to the May 1, 1999
prospectus:
- New sub-advisory agreements for the Equity, Capital
Appreciation and Aggressive Growth portfolios
- A management fee increase and modified investment policy for
the Equity portfolio
- Changes in the portfolio managers for the Equity,
International, International Small Company, Capital
Appreciation, Aggressive Growth, Core Growth and Social
Awareness portfolios
- Decreases in the sub-advisory fees for the Capital
Appreciation and Small Cap portfolios
- A change in the name of the Small Cap Growth portfolio to the
Capital Growth portfolio
EQUITY PORTFOLIO
The Board of Directors and shareholders have approved a sub-advisory agreement
between the Adviser and Legg Mason Fund Adviser, Inc. (LMFA). LMFA is located at
100 Light Street, Baltimore, Maryland 21202. It was founded in 1982 to manage
equity mutual funds and now has more than $13 billion of assets under
management. LMFA is wholly owned by Legg Mason, Inc.
The sub-advisory agreement took effect August 2, 1999. It provides for the
Adviser to pay LMFA a sub-advisory fee at the annual rate of 0.45% of the first
$500 million of the average daily net assets of the Equity portfolio and 0.40%
of the average daily net assets of the portfolio in excess of $500 million.
The Board of Directors and shareholders have also approved an increase in the
investment advisory fee paid to the Adviser by the portfolio. The new fee is at
the annual rate of 0.80% of the first $500 million of the average daily net
assets of the Equity portfolio and 0.75% of the portfolio's average daily net
assets in excess of $500 million.
The Board of Directors and shareholders have deleted from the portfolio's
investment objectives the statement that says: "Current income is a secondary
consideration although growth of income may accompany growth of capital."
The Equity portfolio is managed by LMFA under a sub-advisory agreement with the
Adviser. LMFA seeks long-term growth of capital using the "value" approach to
investing.
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It purchases securities that appear to be undervalued and therefore offer
above-average potential for capital appreciation. It then tends to hold those
companies for a long time. This reduces portfolio turnover and brokerage
expenses.
The portfolio manger of the Equity portfolio is William H. Miller, III. Mr.
Miller is LMFA's chief executive officer and president. He is a chartered
financial analyst with an economics degree from Washington and Lee University
and graduate studies in the Ph.D. program at Johns Hopkins University. Mr.
Miller has been the portfolio manager of the Legg Mason Value Trust, Inc. since
1990. Until then, he served as that fund's co-manager from its inception in
1982. Before that he was a corporate treasurer.
INTERNATIONAL PORTFOLIO
Alexandre de Bethmann has replaced Drew Collins as co-manager of the
International portfolio. Prior to assuming that position in October 1999, Mr. de
Bethmann had been a senior portfolio manager and vice president of FGIM for four
years. For a year before that, Mr. de Bethmann had been assistant vice president
and portfolio manager for Japanese and Korean equities at the College Retirement
Equities Fund. Mr. de Bethmann is a chartered financial analyst. He has a
bachelor of science degree from the Universite Paris X, Nanterre, and a master
of business administration degree in finance from Duke University.
INTERNATIONAL SMALL COMPANY PORTFOLIO
Leonardo Vila and Henry Frantzen are now the co-managers of the International
Small Company portfolio. Prior to assuming this position in July 1999, Mr. Vila
had been an assistant vice president and senior investment analyst with FGIM for
a year and a half. For three years before that, he was a quantitative analyst
for FIC. He held earlier positions as an equity research manager for the
American Stock Exchange, a systems analyst for Kemper Group, a senior
programming analyst for Manufacturers Hanover Trust and an associate of J.P.
Morgan & Co. Mr. Vila has a bachelor of science degree from Arizona State
University and a master of business administration degree emphasizing
quantitative research from St. John's University.
Mr. Frantzen has been co-manager of this portfolio since October 1999. He has
also co-managed the International portfolio since January 1999. Mr. Frantzen is
the chief investment officer, international, of FGIM. He joined FGIM as its
executive vice president when it was established in 1995. For four years prior
to that, he served as chief investment officer of international securities at
Brown Brothers Harriman & Co., and for three years before that he was the
executive vice president and director of equities at Oppenheimer Management
Corporation. He is a financial analyst fellow. He has a bachelor of science
degree from the University of North Dakota.
CAPITAL APPRECIATION PORTFOLIO
The Fund has notified TRPA that their sub-advisory agreement will terminate
before the start of business on January 3, 2000. The Board of Directors has
approved a new sub-advisory agreement with Jennison Associates LLC ("Jennison")
to take effect on January 3,
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2000. That agreement shall only continue beyond 120 days after its effective
date if it is also approved by a majority of the shareholders of the Capital
Appreciation portfolio.
Jennison is located at 466 Lexington Avenue, New York, New York 10017. It is an
investment adviser that has managed large pools of assets for tax-free
institutions since 1969. Jennison is a wholly-owned subsidiary of The Prudential
Insurance Company of America.
The portfolio manager of the Capital Appreciation portfolio on and after January
3, 2000 shall be Bradley Goldberg. He is a director, executive vice president,
balanced portfolio manager and chairman of the asset allocation committee of
Jennison. Before joining Jennison in 1974, Mr. Goldberg was vice president and
group head in the investment research division of Bankers Trust Co. Mr. Goldberg
is a chartered financial analyst with a bachelor of science degree from the
University of Illinois and a master of business administration from New York
University.
Under the sub-advisory agreement with Jennison, the sub-advisory fees for the
Capital Appreciation portfolio are changed to an annual rate of 0.75% of the
first $10 million of average daily net assets, 0.50% of the next $30 million,
0.35% of the next $25 million, 0.25% of the next $335 million, 0.22% of the next
$600 million, and 0.20% of average daily net assets of the Capital Appreciation
portfolio in excess of $1 billion.
SMALL CAP PORTFOLIO
Effective January 1, 2000, the sub-advisory fee payable to FAM for management of
the Small Cap portfolio is reduced to an annual rate of 0.55% of the first $75
million of average daily net assets of the portfolio. The fees for assets in
excess of $75 million shall remain at the annual rate of 0.55% of the next $75
million, 0.50% of the next $150 million, and 0.40% of average daily net assets
of the Small Cap portfolio in excess of $300 million.
AGGRESSIVE GROWTH PORTFOLIO
The Fund has notified SCM that their sub-advisory agreement will terminate
before the start of business on January 19, 2000. The Board of Directors has
approved a new sub-advisory agreement with Janus Capital Corporation ("Janus")
to take effect on January 19, 2000. That agreement shall only continue beyond
120 days after its effective date if it is also approved by a majority vote of
the shareholders of the Aggressive Growth portfolio. The new sub-advisory
agreement does not provide for any change in the sub-advisory fees for this
portfolio.
Janus is located at 100 Fillmore Street, Denver, Colorado 80206. It has been an
investment adviser since 1970. It manages all the Janus mutual funds, is the
sub-adviser for several private label mutual funds, and also manages
institutional accounts.
The portfolio manager of the Aggressive Growth portfolio on and after January
19, 2000 will be Claire Young. She has been executive vice president and
portfolio manager of the Janus Olympus Fund since 1997. Prior to that, she
served as assistant portfolio manager of the Janus Growth & Income Fund and the
Janus Twenty Fund for more than five years. Before that, she was a research
analyst for Andersen Consulting Strategic Services. Ms.
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Young is a chartered financial analyst with a bachelor of science degree in
electrical engineering from Yale University.
CORE GROWTH PORTFOLIO
The portfolio manager of the Core Growth portfolio is Jeffrey Wrona. He is also
the portfolio manager of the PBHG Growth II portfolio, co-manager of the PBHG
Technology & Communications Fund and has managed other small and mid cap
portfolios for PBA since 1997. He was a senior portfolio manager at Munder
Capital Management for seven years. He has also been a securities analyst for
Drexel Burnham Lambert and a design engineer for Ford Motor Company. Mr. Wrona
is a chartered financial analyst. He has a bachelor's degree in engineering and
a master of business administration degree from the University of Michigan.
SMALL CAP GROWTH PORTFOLIO
On August 1, 1999, the name of the Small Cap Growth portfolio was changed to
Capital Growth portfolio.
SOCIAL AWARENESS PORTFOLIO
The portfolio manager of the Social Awareness portfolio is Stephen Komrska. He
is an investment officer of ONLI and has managed equity securities for ONLI and
the Adviser since 1997. For six years before that he was a fixed income analyst
and high yield bond portfolio manager for Ohio Casualty Insurance Company. Mr.
Komrska is a chartered financial analyst with a bachelor of business
administration degree in finance and marketing from the University of Michigan.
