IDEX MUTUAL FUNDS
IDEX AEGON TAX EXEMPT
SUPPLEMENT DATED APRIL 4, 2000 TO PROSPECTUS DATED MARCH 1, 2000
Please retain this supplement for reference.
At a meeting of the Board of Trustees (the "Board") of IDEX Mutual Funds on
March 20, 2000, the Board was notified that AEGON USA Investment Management,
Inc. (AIMI), sub-adviser of IDEX AEGON Tax Exempt (the "Fund"), will no longer
serve as sub-adviser to the Fund effective June 15, 2000. As a result, effective
June 15, 2000, AIMI will terminate the Investment Counsel (Sub-Advisory)
Agreement dated April 22, 1992, as amended March 1, 1999, between Idex
Management, Inc. and AIMI, and AIMI will no longer provide investment management
services to the Fund.
The Board has selected Federated Investment Management Company ("Federated") to
replace AIMI as sub-adviser to the Fund effective June 15, 2000, subject to
approval by the Fund's shareholders. The Board also approved March 21, 2000 as
the record date and June 5, 2000 as the date for the meeting of shareholders of
the Fund to consider the transfer of AIMI's investment management
responsibilities to Federated with no change in the overall investment
management fees paid by the Fund (the "Proposal"). There is no assurance that
the Fund's shareholders will approve the Proposal.
Shareholders will also be asked to amend certain fundamental investment
restrictions for the Fund so that Federated can manage the Fund in a similar
manner to a Federated tax exempt fund. The Board does not anticipate that the
changes, individually or in the aggregate, will result at this time in a
material change in the level of investment risk associated with investment in
the Fund. Nor does the Board anticipate that the proposed changes in fundamental
investment policies, will, individually or in the aggregate, change materially
the manner in which the Fund is managed.
