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SECURITY CAPITAL PRESERVATION FUND
A MEMBER OF THE SECURITY BENEFIT GROUP OF COMPANIES
700 HARRISON, TOPEKA, KANSAS 66636-0001
SUPPLEMENT DATED AUGUST 31, 1999
TO PROSPECTUS DATED MAY 3, 1999
THE FOLLOWING REPLACES THE "ANNUAL FUND OPERATING EXPENSES" TABLE AND THE
"EXAMPLE" IN THE "EXPENSE SUMMARY" SECTION OF THE FUND'S PROSPECTUS:
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ANNUAL FUND OPERATING EXPENSES
(as a percentage of the Fund's projected average daily net assets)
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CLASS A CLASS B CLASS C
Management Fees (after fee waivers)(1)............ 0.00% 0.00% 0.00%
12b-1 Fees(2)..................................... 0.25% 0.75% 0.50%
Other Expenses (after expense reimbursements)(3).. 0.82% 0.82% 0.82%
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Total Fund Operating Expenses..................... 1.07% 1.57% 1.32%
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1 The Fund does not directly pay a management fee. However, the Portfolio,
which is the underlying investment of the Fund, does pay a management fee to
its investment adviser, Bankers Trust Company. Bankers Trust Company has
contractually agreed to waive its advisory fee from the Portfolio until July
31, 2000.
2 Long-term holders of shares that are subject to an asset-based sales charge
may pay more than the equivalent of the maximum front-end sales charge
otherwise permitted by NASD Rules.
3 "Other Expenses" includes 0.20% for the purchase of wrapper agreements by the
Portfolio. This amount is an estimate and the actual cost of wrapper
agreements may be more or less than 0.20%. The wrapper fee expenses incurred
by the Portfolio will be those fees actually charged by the wrapper
providers. Wrapper Agreements are contracts entered into by the Portfolio
that are intended to stabilize the value per share of the Fund (see
"Investment Objectives, Policies, Practices and Risk Factors").
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EXAMPLE -- You would pay the following expenses on a $1,000 investment, assuming
(1) 5% annual return and (2) redemption at the end of each time period. No
Redemption Fee has been included.
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CLASS A CLASS B CLASS C
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1 Year $48 $66 $23
3 Years 70 80 42
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You would pay the following expenses on a $1,000 investment, assuming (1) 5%
annual return, (2) redemption at the end of each time period and (3) assessment
of the 3% Redemption Fee.
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CLASS A CLASS B CLASS C
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1 Year $ 78 $ 96 $53
3 Years 100 110 72
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You would pay the following expenses on a $1,000 investment, assuming (1) 5%
annual return and (2) no redemption.
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CLASS A CLASS B CLASS C
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1 Year $48 $16 $13
3 Years 70 50 42
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THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES, AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. Moreover,
while the example assumes a 5% annual return, actual performance will vary and
may result in a return greater or less than 5%.
In connection with the discussion of the Interest Rate Trigger in the "Expense
Summary" and "Explanation of Performance Terms" section of the prospectus,
please replace (i) each reference to 1.80% with 1.35% and (ii) each reference to
1.55% with 1.10%. These changes shall remain in effect for the period in which
the management fee waiver, as described above in this Supplement, is in effect.
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE FUND" IN THE FUND'S
PROSPECTUS:
Prior to June 4, 1999, Bankers Trust Company was a wholly owned subsidiary of
Bankers Trust Corporation. On June 4, 1999, Bankers Trust Corporation merged
with a subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global
banking institution that is engaged in a wide range of financial services,
including investment management, mutual funds, retail and commercial banking,
investment banking and insurance. Because Deutsche Bank AG, as Bankers Trust's
new parent company, controls its operations as investment adviser, the Fund's
shareholders will be asked to approve new investment advisory agreements for the
Portfolio. A Special Meeting of Shareholders will be held for this purpose.
Bankers Trust believes that, under this new arrangement, the services provided
to the Portfolio will be maintained at their current level.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
