SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
W&R Funds, Inc.
The following information supplements the disclosure regarding the fees for
shareholder servicing and accounting services under the caption "Investment
Management and Other Services -- Payments for Management, Accounting and
Shareholder Services:"
Effective September 1, 2000, under the Shareholder Servicing Agreement,
with respect to Class A, Class B and Class C shares, for each shareholder
account that was in existence at any time during the prior month: Asset Strategy
Fund pays the Agent a monthly fee of $1.4125; High Income Fund, Limited-Term
Bond Fund and Municipal Bond Fund each pay the Agent a monthly fee of $1.6125;
and International Growth Fund, Large Cap Growth Fund, Mid Cap Growth Fund,
Science and Technology Fund, Small Cap Growth Fund, Tax-Managed Equity Fund and
Total Return Fund each pay the Agent a monthly fee of $1.3375. The Funds no
longer pay a fee of $0.30 per dividend or distribution.
Also effective September 1, 2000, under the Accounting Services Agreement,
each Fund pays the Agent a monthly fee of one-twelfth of the annual base fee
shown in the following table:
Accounting Services Fee
Average Net Asset Level Annual Fee Rate
(in millions) for Each Level
----------------------- ---------------
From $ 0 to $ 10 $ 0
From $ 10 to $ 25 $ 11,000
From $ 25 to $ 50 $ 22,000
From $ 50 to $ 100 $ 33,000
From $ 100 to $ 200 $ 44,000
From $ 200 to $ 350 $ 55,000
From $ 350 to $ 550 $ 66,000
From $ 550 to $ 750 $ 77,000
From $ 750 to $1,000 $ 93,500
$1,000 and Over $110,000
In addition, for each class of shares in excess of one, each Fund pays the
Agent a monthly per-class fee equal to 2.5% of the monthly base fee.
To be attached to the cover page of the Statement of Additional Information
dated August 28, 2000, of W&R Funds, Inc.
This Supplement is dated September 1, 2000.
