AMERICAN DIVERSIFIED FUNDS, INC.
AMERICAN DIVERSIFIED GLOBAL VALUE FUND
SUPPLEMENT DATED MAY 7, 1999 TO
PROSPECTUS DATED JULY 31, 1998
The Board of Directors of the American Diversified Global Value Fund (the
"Fund") has voted to approve a tax-free reorganization of the American
Diversified Global Value Fund. The Board, after careful deliberations, has
determined that this transaction is in the best interest of the Fund and its
shareholders, and will recommend to shareholders that the Fund be brought under
the umbrella of the Orbitex Group of Funds through a merger with the Orbitex
Growth Fund. The Orbitex Growth Fund seeks long-term growth of capital through
investments in global equities and debt instruments, selected on the basis of
strong value and growth characteristics. The Orbitex funds are managed by
Orbitex Management, Inc., an experienced global investment advisor focused on
specialty equity markets. Orbitex and its affiliates have more than $1.2 billion
under management.
These actions require a shareholder vote. Proxy statements regarding this change
will be mailed to shareholders within 60 days. Orbitex Management, Inc. has
agreed to serve as the Fund's investment advisor during this interim period
replacing American Diversified Asset Management, Inc.
How will these actions affect current shareholders? Effective immediately,
Orbitex will take over investment management of the Fund subject to the Fund's
existing investment objectives, policies and guidelines as set forth in the
Fund's current prospectus. The Board of Directors has selected ADS Distributors,
Inc. as the Fund's new distributor. Shortly, you will receive more detailed
information describing the tax-free reorganization and the Orbitex funds. In
addition to the Growth Fund, Orbitex currently manages several other mutual
funds with which shareholders will have commission free exchange privileges.
Orbitex manages the Orbitex Group of Funds (US), a family of equity mutual funds
available to individual investors through broker/dealers and financial advisors.
Orbitex is affiliated with the Orbitex Group of Funds (Canada), a global
investment advisor founded in 1986. Orbitex maintains offices in New York,
London, Zurich, Nassau, Frankfurt, Mexico City and Dubai.
