SCM PORTFOLIO FUND, INC.
Statement of Additional Information Supplement
dated November 22, 1996 to
Statement of Additional Information
dated April 29, 1996
1. The following is added to the Statement of Additional
Information for SCM Portfolio Fund, Inc. (the "Fund") at the end
of the section entitled "SHARE PURCHASES AND REDEMPTIONS":
Individual Retirement Accounts (IRA)
Individuals who are not active participants (and, when a
joint return is filed, who do not have a spouse who is an
active participant) in an employer maintained retirement
plan are eligible to contribute on a deductible basis to an
IRA account. The IRA deduction is also retained for
individual taxpayers and married couples with adjusted gross
incomes not in excess of certain specified limits. All
individuals who have earned income may make nondeductible
IRA contributions to the extent that they are not eligible
for a deductible contribution. Income earned by an IRA
account will continue to be tax deferred. A special IRA
program is available for employers under which the employers
may establish IRA accounts for their employees in lieu of
establishing tax-qualified retirement plans. Known as SEP-
IRAs (Simplified Employee Pension-IRA), they free the
employer of the recordkeeping requirements of establishing
and maintaining a tax-qualified retirement plan trust.
Effective January 1, 1997, a new type of special IRA program
is available for employers that is known as a SIMPLE
Retirement Plan. A SIMPLE permits eligible employers to
contribute up to $6,000 per year out of their wages or
salary to an IRA on a before-tax basis, with only a modest
employer contribution requirement.
2. The Fund's investment adviser, SCM Associates, Inc. (the
"Adviser") has changed its address to 119 Maple Street,
Carrollton, Georgia 30117.
3. The Fund's portfolio manager, Stephen C. McCutcheon, has
retired from the faculty of State University of West Georgia
effective June 30, 1996. Dr. McCutcheon will continue to devote
his services full-time to the Adviser and to managing the assets
of the Fund.
scm-sai.lst
