Supplement dated August 6, 1998
to the Prospectuses of
Flag Investors Emerging Growth Fund, Inc.
dated March 1, 1998
On June 30, 1998, the Fund's Board of Directors approved,
subject to shareholder approval, a Sub-Advisory Agreement among the
Fund, Investment Company Capital Corp. ("ICC") and Alex. Brown
Capital Advisory & Trust Company ("ABCAT"). ABCAT was until June
30, 1998, a subsidiary of Bankers Trust Corporation, the indirect
parent of ICC. On June 30, 1998, Bankers Trust sold ABCAT to a
group including ABCAT's management and other investors.
ABCAT, with offices at 19-21 South Street, Baltimore, Maryland
21202, is a trust company chartered under the laws of the State of
Maryland. ABCAT employs Frederick L. Meserve, who is also an
employee of ICC, and has managed the Fund's investments since 1993.
Approval of the Sub-Advisory Agreement is necessary to ensure
continuity of Fund management.
The matter will be submitted to shareholders of the Fund at a
meeting scheduled for September 25, 1998. Only shareholders of
record of the Fund as of the close of business on August 7, 1998
will be entitled to vote on the proposal.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
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