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AMWAY MUTUAL FUND, INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 21, 1997
The Fund's Board of Directors, at a meeting on February 9, 1998, approved
(a) amendments to the Fund's investment advisory and sub-advisory agreements,
(b) a new distribution plan for the Fund, and (c) reorganization of the Fund as
a series of a Delaware business trust. All of such actions are subject to
approval of the Fund's shareholders at the Annual Meeting of Stockholders which
will be held on April 22, 1998.
The Fund's investment adviser presently receives a fee amounting on an
annual basis to 0.55% of the daily average net assets of the Fund. The proposed
amendment would reduce this fee. Under the proposed amendment, the Adviser
would receive a fee of 0.55% on the first $100 million in assets of the Fund,
0.50% on the next $50 million in assets, and 0.45% on the next $50 million in
assets. When the Fund's assets reach $200 million, the rate would be 0.50% on
assets up to $200 million and 0.45% on assets in excess of $200 million, so long
as the Fund continued to have at least $200 million in assets.
Amway Management Company serves as the Fund's principal underwriter and
presently receives a maximum sales charge of 3% of the offering price of the
Fund's shares. Under the proposed distribution plan, the 3% sales charge would
be eliminated and, in lieu of this payment, Amway Management Company would
receive a maximum amont computed at an annual rate of 0.25% of the average daily
net assets of the Fund.
The Fund is presently organized as a Delaware corporation. Under the
proposed reorganization, the Fund would be reorganized as a series of a Delaware
business trust. There would be no change in the Fund's investment adviser or
sub-adviser, and the Fund's investment objectives and investment policies would
remain the same.
The date of this Supplement is February 9, 1998.
