IDEX SERIES FUND
CAPITAL APPRECIATION, GLOBAL, GROWTH, BALANCED
AND FLEXIBLE INCOME PORTFOLIOS
SUPPLEMENT DATED JUNE 25, 1998 TO PROSPECTUS DATED MARCH 1, 1998,
AS SUPPLEMENTED MARCH 20, 1998, MARCH 31, 1998 AND MAY 22, 1998
Pursuant to the terms of a Stock Purchase Agreement between AUSA Holding Company
("AUSA") and Janus Capital Corporation ("Janus Capital"), AUSA became the sole
shareholder of Idex Management, Inc. ("IMI") on June 25, 1998. IMI is now a
direct wholly-owned subsidiary of AUSA.
IMI serves as the investment adviser to the Capital Appreciation, Global,
Growth, Balanced and Flexible Income Portfolios (each a "Portfolio";
collectively, the "Portfolios") of the IDEX Series Fund (the "Fund"). In
anticipation of the transaction between AUSA and Janus Capital, a new Management
and Investment Advisory Agreement (the "Advisory Agreement") between the Fund
and IMI, and a new Investment Counsel Agreement between IMI and Janus Capital
(the "Sub-Advisory Agreement"), were approved by the Fund's Board of Trustees
with respect to each Portfolio. A special meeting of shareholders of the
Portfolios was held on June 10, 1998, at which time the shareholders of each
Portfolio approved a new Advisory Agreement and Sub-Advisory Agreement
(collectively, the "Agreements"). The new Agreements are effective as of June
25, 1998.
The new Agreements are substantially identical to the prior Agreements. Under
the terms of the new Agreements, IMI and Janus Capital will continue to serve as
the investment adviser and investment sub-adviser, respectively, to each of the
Portfolios.
In connection with the new Agreements, both IMI and Janus Capital have, on a
voluntary basis, agreed to waive a portion of the fees that each is scheduled to
receive under the terms of the new Agreements. While the waiver of a portion of
the advisory fees payable to IMI under the Advisory Agreement is voluntary, it
is anticipated that this reduction will remain in effect for at least two years
from the date of the closing of the transaction between AUSA and Janus Capital.
This voluntary fee reduction will result in the following net advisory fee
payable by each Portfolio:
<TABLE>
<CAPTION>
GROWTH, CAPITAL
APPRECIATION AND BALANCED ADVISORY FEE (NET OF
PORTFOLIOS ADVISORY FEE VOLUNTARY FEE WAIVER WAIVED ADVISORY FEES)
(AVERAGE DAILY NET ASSETS)
<S> <C> <C> <C>
First $100 Million 1.0000% None 1.0000%
Next $400 Million
($100-500 Million) 1.0000% 0.0250% 0.9750%
Next $250 Million
($500-750 Million) 1.0000% 0.0750% 0.9250%
Next $250 Million
($750 Million - 1 Billion)
0.9000% 0.0250% 0.8750%
Above $1 Billion 0.8500% 0.0250% 0.8250%
</TABLE>
<TABLE>
<CAPTION>
FLEXIBLE INCOME PORTFOLIO
(AVERAGE DAILY NET ASSETS) ADVISORY FEE (NET OF
ADVISORY FEE VOLUNTARY FEE WAIVER WAIVED ADVISORY FEES)
<S> <C> <C> <C>
First $100 Million 0.9000% 0.0250% 0.8750%
Next $150 Million
($100-250 Million) 0.8000% 0.0250% 0.7750%
Above $250 Million 0.7000% 0.0250% 0.6750%
</TABLE>
<PAGE>
Similarly, the waiver of a portion of the sub-advisory fees payable to Janus
Capital by IMI under the Sub-Advisory Agreement is voluntary; however, Janus
Capital has entered into an agreement to keep this reduction in effect for at
least two years from the date of the closing of the transaction between AUSA and
Janus Capital. This voluntary fee reduction will result in the following new
sub-advisory fees payable by each Portfolio:
<TABLE>
<CAPTION>
GROWTH, CAPITAL
APPRECIATION AND BALANCED SUB-ADVISORY FEE (NET
PORTFOLIOS SUB-ADVISORY FEE VOLUNTARY FEE WAIVER OF WAIVED SUB-ADVISORY
(AVERAGE DAILY NET ASSETS) FEES)
<S> <C> <C> <C>
First $100 Million 0.5000% None 0.5000%
Next $400 Million
($100-500 Million) 0.5000% 0.0125% 0.4875%
Next $250 Million
($500-750 Million) 0.5000% 0.0625% 0.4375%
Next $250 Million ($750
Million - 1 Billion)
0.4500% 0.0125% 0.4375%
Above $1 Billion 0.4250% 0.0125% 0.4125%
</TABLE>
<TABLE>
<CAPTION>
FLEXIBLE INCOME PORTFOLIO
(AVERAGE DAILY NET ASSETS) SUB-ADVISORY FEE (NET
SUB-ADVISORY FEE VOLUNTARY FEE WAIVER OF WAIVED SUB-ADVISORY
FEES)
<S> <C> <C> <C>
First $100 Million 0.4500% 0.0125% 0.4375%
Next $150 Million
($100-250 Million) 0.4000% 0.0125% 0.3875%
Above $250 Million 0.3500% 0.0125% 0.3375%
</TABLE>
BALANCED PORTFOLIO:
The following paragraph replaces the first paragraph under the heading "Debt
Securities" on page 46 of the Prospectus:
None of the Portfolios, other than the Balanced, Value Equity, Strategic Total
Return, Flexible Income and Income Plus Portfolios, may invest more than 5% of
its net assets in high yield/high risk bonds, commonly referred to as "junk
bonds." Junk bonds are bonds that are rated below investment grade and normally
involve greater risk than investment grade securities. (See Additional Risk
Factors.) The Flexible Income Portfolio may invest up to 50% of its total
assets, the Balanced Portfolio may invest up to 35% of its total assets, and
each of the Value Equity and Strategic Total Return Portfolios may invest up to
10% of its total assets, in junk bonds, or in the case of the Value Equity and
Strategic Total Return Portfolios, in convertible securities rated lower than
investment grade.
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