PANORAMA SERIES FUND, INC.
Supplement dated September 25, 1998 to the
Statement of Additional Information dated May 1, 1998
The Statement of Additional Information is revised as follows:
The following is added to the end of the section captioned "Investment
Objectives and Policies - Foreign Securities" on pages 3 and 4:
Risks of Conversion to Euro (International Equity Portfolio only). On
January 1, 1999, eleven countries in the European Monetary Union will adopt
the euro as their official currency. However, their current currencies (for
example, the franc, the mark, and the lire) will also continue in use until
January 1, 2002. After that date, it is expected that only the euro will be
used in those countries. A common currency is expected to confer some
benefits in those markets, by consolidating the government debt market for
those countries and reducing some currency risks and costs. But the
conversion to the new currency will affect the Portfolio operationally and
also has potential risks, some of which are listed below. Among other
things, the conversion will affect:
issuers in which the Portfolio invests, because of changes in
the competitive environment from a consolidated currency market and
greater operational costs from converting to the new currency. This
might depress stock values.
vendors the Portfolio depends on to carry out its business, such as its
Custodian (which holds the foreign securities the Portfolio buys), the
Manager (which must price the Portfolio's investments to deal with the
conversion to the euro) and brokers, foreign markets and securities
depositories. If they are not prepared, there could be delays in settlements
and additional costs to the Portfolio.
exchange contracts and derivatives that are outstanding during the
transition to the euro. The lack of currency rate calculations between the
affected currencies and the need to update the Portfolio's contracts could
pose extra costs to the Portfolio.
The Manager is upgrading (at its expense) its computer and bookkeeping
systems to deal with the conversion. The Portfolio's Custodian has advised
the Manager of its plans to deal with the conversion, including how it will
update its record keeping systems and handle the redenomination of
outstanding foreign debt. The Portfolio's portfolio manager will also
monitor the effects of the conversion on the issuers in which the Portfolio
invests. The possible effect of these factors on the Portfolio's investments
cannot be determined with certainty at this time, but they may reduce the
value of some of the Portfolio's holdings and increase its operational
costs.
September 25, 1998 PX.001
