TMK/UNITED FUNDS, INC.
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1996
The following information replaces the second paragraph under the heading
"Mortgage-Backed Securities" on page 12:
Each Portfolio may purchase mortgage-backed securities issued by both
governmental and non-governmental entities, such as banks, mortgage
lenders, or other financial institutions. Other types of mortgage-backed
securities will likely be developed in the future, and a Portfolio may
invest in them if the Manager determines they are consistent with its
goal(s) and investment policies.
The following information replaces the information under the heading "Asset-
Backed Securities" on page 13:
Asset-backed securities represent interests in pools of consumer loans
(generally unrelated to mortgage loans) and most often are structured as
pass-through securities. Interest and principal payments ultimately depend
upon payment of the underlying loans by individuals, although the
securities may be supported by letters of credit or other credit
enhancements. The value of asset-backed securities may also depend on the
creditworthiness of the servicing agent for the loan pool, the originator
of the loans, or the financial institution providing the credit
enhancement. Each Portfolio may invest no more than 30% of its total
assets in asset-backed securities.
The following information replaces the last sentence under the heading
"Custodial and Auditing Services" on page 48:
Deloitte & Touche LLP, Kansas City, Missouri, the Fund's independent
accountants, audits each Portfolio's financial statements.
This Supplement is dated January 10, 1997.
