SUPPLEMENT DATED JULY 26, 1999 TO
FOUNDERS FUNDS, INC. PROSPECTUS DATED MAY 1, 1999
Effective July 26, 1999, Tracy P. Stouffer has been appointed portfolio manager
of Founders Passport Fund and Douglas A. Loeffler, Thomas M. Arrington, and
Scott A. Chapman have been appointed co-portfolio managers of Founders Worldwide
Growth Fund. Mr. Loeffler will manage the international portion of the Worldwide
Growth Fund and Messrs. Arrington and Chapman will manage the domestic portion
of the Fund. Accordingly, the description of Founders' Investment Management
Team on pages 37-39 is amended as follows:
The following paragraph is added to page 39 of the Prospectus:
Tracy P. Stouffer, Vice President of Investments. Ms. Stouffer is a
Chartered Financial Analyst who has been portfolio manager of Founders
Passport Fund since July 1999. Before joining Founders, Ms. Stouffer was a
vice president and portfolio manager with Federated Global, Inc. from 1995
to July 1999, and a vice president and portfolio manager with Clariden
Asset Management from 1988 to 1995. Prior to 1988, Ms. Stouffer held
various portfolio management and securities analyst positions. A graduate
of Cornell University, Ms. Stouffer received an MBA with a concentration in
marketing from the University of Western Ontario, Canada.
The paragraph on page 38 entitled "Thomas M. Arrington" is amended by replacing
the first full sentence of that paragraph with the following sentences:
Mr. Arrington is a Chartered Financial Analyst who has been co-portfolio
manager, along with Scott Chapman, of Founders Growth Fund since December
1998 and the domestic portion of Founders Worldwide Growth Fund since July
1999. Mr. Arrington has also been the lead portfolio manager of Founders
Growth and Income Fund since February 1999.
<PAGE>
The paragraph on page 38 entitled "Scott A. Chapman" is amended by replacing the
first full sentence of that paragraph with the following sentence:
Mr. Chapman is a Chartered Financial Analyst who has been co-portfolio
manager, along with Thomas Arrington, of Founders Growth Fund since
December 1998 and the domestic portion of Founders Worldwide Growth Fund
since July 1999.
The paragraph on page 39 entitled "Douglas A. Loeffler" is amended by replacing
the first full sentence of that paragraph with the following sentence:
Mr. Loeffler is a Chartered Financial Analyst who has been lead portfolio
manager for Founders International Equity Fund since 1997 and portfolio
manager of the foreign portion of Founders Worldwide Growth Fund since July
1999.
The last paragraph on page 38, concerning Michael W. Gerding, is deleted, since
Mr. Gerding is no longer associated with Founders.
<PAGE>
FOUNDERS FUNDS INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1999, AS PREVIOUSLY SUPPLEMENTED MAY 21, 1999
The section of the Funds' Statement of Additional Information entitled
"Investment Adviser, Distributor and Other Service Providers -- Investment
Adviser" is hereby amended on page 39 to replace the third paragraph on that
page with the following:
Founders and its predecessor companies have been providing investment
management services since 1938. In addition to serving as adviser to the
Funds, Founders serves as investment adviser or sub-adviser to various
other mutual funds and private accounts. The officers of Founders include
Christopher M. Condron, Chairman, Richard W. Sabo, President and Chief
Executive Officer; Robert T. Ammann, Vice President; Thomas M. Arrington,
Vice President; Angelo Barr, Vice President and National Sales Manager;
Scott A. Chapman, Vice President; Kenneth R. Christoffersen, Vice
President, General Counsel and Secretary; Gregory P. Contillo, Senior Vice
President and Chief Marketing Officer; Francis P. Gaffney, Vice President;
Roberto Galindo, Jr., Vice President; Laurine Garrity, Vice President;
Brian F. Kelly, Vice President; Paul A. LaRocco, Vice President; Douglas A.
Loeffler, Vice President; David L. Ray, Senior Vice President and
Treasurer; Linda M. Ripley, Vice President; and Tracy P. Stouffer, Vice
President.
The date of this Supplement is July 26, 1999.
