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LB SERIES FUND, INC.
Supplement to Prospectus and
Statement of Additional Information
Dated May 1, 1998
At a special meeting of shareholders of each of the Growth Portfolio,
Opportunity Growth Portfolio, Mid Cap Growth Portfolio, World Growth
Portfolio, High Yield Portfolio, Income Portfolio and Money Market Portfolio
(each, a "Portfolio") of LB Series Fund, Inc. (the "Fund"), held on December
1, 1998, the shareholders approved the following changes to certain
fundamental investment restrictions:
1. Elimination of the current fundamental investment restriction on
borrowing and the issuance of senior securities (restriction number 1 on
page 28 of the Prospectus and restriction number 4 on page 4 of the
Statement of Additional Information) and adoption of the following two
new fundamental investment restrictions:
None of the Portfolios may borrow money, except that a Portfolio may
borrow money (through the issuance of debt securities or otherwise) in
an amount not exceeding one-third of the Portfolio's total assets
immediately after the time of such borrowing.
None of the Portfolios may issue senior securities, except as permitted
under the Investment Company Act of 1940 or any exemptive order or rule
issued by the Securities and Exchange Commission.
2. Elimination of the current fundamental investment restriction on lending
(restriction number 4 on page 29 of the Prospectus and restriction
number 5 on page 4 of the Statement of Additional Information) and
adoption of the following new fundamental investment restriction:
None of the Portfolios may lend any of its assets except portfolio
securities. The purchase of corporate or U.S. or foreign governmental
bonds, debentures, notes, certificates of indebtedness, repurchase
agreements or other debt securities of an issuer permitted by a
Portfolio investment objective and policies will not be considered a
loan for purposes of this limitation.
3. Elimination of the current fundamental investment restriction on real
estate and commodities (restriction number 1 on page 4 of the Statement
of Additional Information) and adoption of the following new fundamental
investment restriction:
None of the Portfolios will buy or sell real estate, commodities or
commodity contracts, although the Portfolios may buy and sell securities
or other instruments which are secured by real estate and securities of
real estate investment trusts and of other issuers that engage in real
estate operations and except that the Portfolios may enter into
financial futures contracts, may purchase put options on financial
futures contracts and may purchase and sell call options on financial
futures contracts.
4. Elimination of the fundamental investment restriction on reverse
repurchase agreements (restriction number 2 on page 28 of the
Prospectus).
5. Elimination of the fundamental investment restriction on the pledge of
assets (restriction number 3 on page 29 of the Prospectus).
6. Elimination of the fundamental investment restriction on restricted
securities, illiquid securities and unseasoned issuers (restriction
number 6 on page 29 of the Prospectus).
7. Elimination of the fundamental investment restriction on control
securities (restriction number 2 on page 4 of the Statement of
Additional Information).
8. Elimination of the fundamental investment restriction on short sales
(restriction number 3 on page 4 of the Statement of Additional
Information).
9. Elimination of the fundamental investment restriction on investments in
other investment companies (restriction number 8 on page 4 of the
Statement of Additional Information).
10. For the Money Market Portfolio only--elimination of the fundamental
investment restriction on investments in oil and gas interests, common
stock and other equity securities (restriction number 1 with respect to
the Money Market Portfolio on page 4 of the Statement of Additional
Information).
11. For the Money Market Portfolio only--elimination of the fundamental
investment restriction on portfolio maturity (restriction number 2 with
respect to the Money Market Portfolio on page 5 of the Statement of
Additional Information).
In addition, the Board of Directors of the Fund has adopted the following
non-fundamental investment restriction which is applicable to each
Portfolio:
None of the Portfolios will purchase any security while borrowings,
including reverse repurchase agreements, representing more than 5% of
the Portfolio's total assets are outstanding.
The changes to the investment restrictions set forth above are effective on
December 30, 1998.
January 4, 1999
PLEASE INCLUDE THIS SUPPLEMENT WITH YOUR PROSPECTUS
