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Security Benefit Life Insurance Company 700 SW Harrison St.
Security Benefit Group, Inc. Topeka, Kansas 66636-0001
Security Distributors, Inc. (913) 295-3000
Security Management Company
Supplement Dated April 1, 1997
To Security Income Fund Prospectus Dated February 5, 1997
The following section is added to the prospectus following "Management of the
Funds," page 22.
PROPOSED NEW ADVISORY AGREEMENTS FOR THE GLOBAL AGGRESSIVE BOND FUND
The Board of Directors of Security Income Fund has approved (i) a new investment
advisory agreement between MFR Advisors, Inc. ("MFR") and Security Income Fund
and (ii) a new sub-advisory agreement between MFR and Lexington Management
Corporation ("Lexington"). MFR and Lexington currently serve as sub-advisers of
the Global Aggressive Bond Fund. The new agreements provide for MFR and
Lexington to provide investment advisory and sub-advisory services,
respectively, to the Global Aggressive Bond Fund. Security Management Company,
LLC (the "Investment Manager") which currently serves as investment adviser to
Global Aggressive Bond Fund proposed the new advisory agreements to the Board of
Directors. The Board of Directors, including a majority of the disinterested
directors of the Fund, approved the agreements at a meeting of the Board held on
February 7, 1997. The stockholders will vote on approval of the proposed
investment advisory and sub-advisory agreements at a special meeting of
stockholders to be held April 28, 1997. If the stockholders approve the new
investment advisory and sub-advisory agreements, the existing advisory and
sub-advisory agreements will terminate effective May 1, 1997, and the proposed
agreements will be in effect on that date. The terms of the new advisory and
sub-advisory agreements are identical in all material respects to the existing
agreements, including the investment management fee payable by the Fund under
the agreements.
Security Benefit Life Insurance Company ("SBL"), parent company of the
Investment Manager, is negotiating with Maria Fiorini Ramirez, Inc. ("Ramirez"),
which owns 100% of the outstanding common stock of MFR, to acquire stock rights
that would enable SBL to acquire up to 100 percent of the ownership interest in
MFR upon the exercise of those rights. Maria Fiorini Ramirez, an individual,
owns 100 percent of the common stock of Ramirez.
See "Management of the Funds" above for more information about the existing
investment advisory and sub-advisory agreements.
