SUPPLEMENT DATED JANUARY 2, 2001
TO
DREYFUS FOUNDERS FUNDS, INC.
CLASS F PROSPECTUS
DATED MAY 1, 2000
(AS PREVIOUSLY SUPPLEMENTED ON OCTOBER 4, 2000)
The section of the Funds' prospectus entitled "Fees and Expenses" is hereby
amended by the addition of the following new paragraph on page 26 following the
footnotes to the Annual Fund Operating Expenses table:
Effective January 1, 2001, Founders has agreed to waive a portion of its
management fees for the Government Securities and Money Market Funds.
Specifically, Founders has agreed to reduce the Government Securities
Fund's management fee from 0.65% to 0.35% of the Fund's average net
assets, and the Money Market Fund's management fee from 0.50% to 0.45% of
the Fund's average net assets. These waivers will extend through at least
May 31, 2001, and will not be terminated without prior notification to the
Funds' Board of Directors.
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JANUARY 2, 2001
DREYFUS FOUNDERS FUNDS, INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 2000
(AS PREVIOUSLY SUPPLEMENTED THROUGH SEPTEMBER 1, 2000)
The section of the Company's Statement of Additional Information entitled
"Directors and Officers - Directors" is hereby amended on pages 32-33 to replace
the biographical information regarding Robert P. Mastrovita with the following:
NAME, ADDRESS POSITION(S) HELD PRINCIPAL OCCUPATION(S)
AND DATE OF BIRTH WITH FUND DURING PAST FIVE YEARS
--------------------------- ----------------------- --------------------------
ROBERT P. MASTROVITA Director of the Private investor; Chairman
88 Upland Road Company3,4 of private foundation.
Duxbury, Massachusetts Formerly (1982 to 1997),
02332 Chairman and Director,
Born: November 6, 1944 Hagler, Mastrovita &
Hewitt, Inc., Boston,
Massachusetts, a
registered investment
adviser. Member, Boston
Society of Security
Analysts. Overseer and
Investment Committee
Member, Boston Children's
Hospital.
--------------------------- ----------------------- --------------------------
3 Member of Investment Integrity Committee
4 Member of Valuation Committee
The section of the Company's Statement of Additional Information entitled
"Investment Adviser, Distributor and Other Service Providers - Investment
Adviser" is hereby amended on page 39 by replacing the second paragraph on that
page with the following:
As described in the applicable Prospectuses, certain expenses of the
Focus, Government Securities, and International Equity Funds are being
reimbursed or waived voluntarily by Founders pursuant to a commitment to
the Funds. In addition, effective January 1, 2001, Founders has agreed to
waive a portion of its management fees for the Government Securities and
Money Market Funds. Specifically, Founders has agreed to waive the portion
of its management fee for the Government Securities Fund that exceeds
0.35% of the first $250,000,000 of the Fund's average net assets and 0.20%
of the Fund's average net assets in excess of $250,000,000, and the
portion of its management fee for the Money Market Fund that exceeds 0.45%
of the first $250,000,000 of the Fund's average net assets, 0.40% of the
next $250,000,000 of the Fund's average net assets, 0.35% of the next
$250,000,000 of the Fund's average net assets, and 0.30% of the Fund's
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average net assets in excess of $750,000,000. These waivers will extend
through at least May 31, 2001, and will not be terminated without prior
notification to the Funds' Board of Directors.
The section of the Company's Statement of Additional Information entitled
"Investment Adviser, Distributor and Other Service Providers - Investment
Adviser" is hereby amended on page 40 by replacing the last 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; Curtis J. Anderson,
Vice President; Thomas M. Arrington, Vice President; Marissa A.
Banuelos, Vice President; Angelo Barr, Senior Vice President and
National Sales Manager; Scott A. Chapman, Vice President; Kenneth
R. Christoffersen, Senior Vice President, General Counsel and
Secretary; Gregory P. Contillo, Executive Vice President and
Chief Marketing Officer; Julie D. Di Iorio, Vice President;
Francis P. Gaffney, Senior Vice President; Laurine M. Garrity,
Senior Vice President; Robert T. Kelly, Vice President; Douglas
A. Loeffler, Vice President; Andra C. Ozols, Vice President;
David L. Ray, Senior Vice President and Treasurer; Bridget M.
Richards, Vice President; Richard A. Sampson, Senior Vice
President; Kevin S. Sonnett, Vice President; Tracy P. Stouffer,
Vice President; and Lisa G. Warshafsky, Vice President. The
affiliations of Messrs. Sabo, Ray, Christoffersen, Gaffney and
Kelly and Ms. Ozols with the Company are shown under the
"Directors and Officers" section of this SAI.
The section of the Company's Statement of Additional Information entitled
"Pricing of Shares" is hereby amended by revising the first four paragraphs of
the section on pages 75-76 to read as follows:
The Company calculates net asset value per share, and therefore
effects sales, redemptions, and repurchases of its shares, once daily as
of the close of regular trading on the New York Stock Exchange (the
"Exchange") on each day the Exchange is open for trading. The Exchange is
not open for trading on the following holidays: New Year's Day, Martin
Luther King Jr. Day, President's Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
ALL FUNDS EXCEPT MONEY MARKET FUND. The net asset value per share of
each Class of each Fund is calculated by dividing the value of all
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securities held by that Fund and its other assets (including dividends and
interest accrued but not collected) attributable to that Class, less the
Fund's liabilities (including accrued expenses) attributable to that
Class, by the number of outstanding shares of that Class. Expenses and
fees, including the advisory fees and fees pursuant to the Distribution
Plans and Shareholder Services Plan, are accrued daily and taken into
account for the purpose of determining the net asset value of each Class
of each Fund's shares. Because of the differences in the operating
expenses incurred by each Class of a Fund, the per share net asset value
of each Class will differ.
DOMESTIC EQUITY SECURITIES. A security listed or traded on a
securities exchange or in the over-the counter market is valued at
its last sale price on the exchange or market where it is
principally traded; lacking any sales on that day, the security is
valued at the current closing bid price, or by quotes from dealers
making a market for the security if the closing bid price is not
available.
FOREIGN SECURITIES. Foreign securities traded on foreign
exchanges ordinarily are valued at the last quoted sale price
available before the time when the Funds' assets are valued. Lacking
any sales on that day, the security is valued at the current closing
bid price, or by quotes from dealers making a market for the
security if the closing bid price is not available. In some cases,
particularly certain Latin American countries, prices may not be
available in a timely manner. Therefore, such prices will be
obtained from a Board-authorized pricing service. These prices will
be reflective of current day trading activity, and will be secured
at a consistent time each day. If a security's price is available
from more than one U.S. or foreign exchange, the exchange that is
the primary market for the security will be used. Foreign securities
not traded on foreign exchanges, including 144As and foreign income
securities, are valued on the basis of the average of at least two
market maker quotes and/or the portal system. London closing
exchange rates are used to convert foreign currencies to U.S.
dollars.
If events occur that are known to Founders to have materially
affected the value of foreign securities that are not reflected in
the value obtained through regular procedures, the securities may be
valued at fair market value as determined in good faith by the Board
of Directors or pursuant to procedures approved by the Board of
Directors..
DEBT INSTRUMENTS. Fixed and variable income securities are
valued at the evaluated bid prices as determined on each valuation
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day by a portfolio pricing service approved by the Directors.
Instruments for which vendor valuations are not available are valued
by averaging the bid prices obtained from two active market makers
in the security. Short-term securities are valued at amortized cost
if their remaining maturity at the time of purchase is 60 days or
less.
SECURITIES FOR WHICH MARKET QUOTATIONS ARE NOT AVAILABLE.
Securities for which quotations are not readily available, or other
assets, shall be valued at fair market value as determined in good
faith by the Board of Directors or pursuant to procedures approved
by the Board of Directors.
PRICING SERVICES. The Company's Board of Directors
periodically reviews and approves the pricing services used to value
the Funds' securities. All pricing services may employ electronic
data processing techniques and/or computerized matrix systems to
determine valuations. Normal institutional-size trading units are
normally selected in valuing debt securities.
