File No. 811-6187
File No. 33-36454
Filed pursuant to Rule 497(e)
under the Securities Act of
1933, as amended.
ASM Index 30 Fund, Inc.
Supplement dated December 28, 1998 to Prospectus dated March 1, 1998
The expense table included in this prospectus reflects a commitment to
the Fund (the "expense commitment") that the Advisor would bear expenses of the
Fund exceeding eighteen basis points computed on the Fund's average net assets.
Recently, the Board of Directors of the Fund was advised of information which
required the Board to consider whether the Advisor will be able to continue
to fulfill the expense commitment in the future. Absent the expense
commitment, the expense ratio for the Fund would be materially higher than
the Fund had to bear under the terms of the expense commitment. The Fund was
reimbursed by the Advisor for excess expenses during the fiscal years ended
October 31, 1997 and 1998. In the absence of such payments, the Fund's expense
ratio during such years would have been 1.05% and 0.91%, respectively.
The Chairman and President of the Advisor, who is also a director and
officer of the Fund, has requested and received an indefinite leave of absence
for personal reasons from all positions with the Fund, and from the day-to-day
operation of the Advisor with respect to the Fund. Other officers and employees
of the Advisor and the Fund continue to operate the Fund under the supervision
of the independent directors of the Fund.
On December 23, 1998, at a meeting of the independent members of the
Board of Directors, the directors voted to notify the Advisor of the termination
of the present investment advisory agreement effective sixty days after delivery
of notice of termination of the agreement. During this sixty-day period, the
Board will solicit proposals from other funds and advisors, and will consider
alternative arrangements. Such alternatives include a recommendation that
shareholders vote to approve a new investment advisory relationship with another
advisor, vote to reorganize the Fund with another fund in a tax-free
reorganization or, in the absence of such options, vote to terminate the Fund
and distribute its assets to the shareholders. The Board has established a
reserve for the expense of implementing such alternatives.
Pending resolution of these concerns, the Board is confident that the
custodian bank, transfer agent, accounting services agent, independent
accountants and counsel for the Fund can continue to provide the services
required for the conduct of the Fund's business.
