Sunstone Financial Group, Inc.
207 East Buffalo Street
Suite 400
Milwaukee, WI 53202
May 3, 1996
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, D.C. 20549
Re: The Yacktman Fund, Inc. Prospectus
Filing Pursuant to Rule 497e
SEC File No. 811-6628, 33-47044
Sir or Madam:
On behalf of The Yacktman Fund, Inc. (the "Fund"), transmitted herewith for
filing pursuant to Rule 497e and Section 24(b) under the Investment Company Act
of 1940, as amended, is the Supplement to the Prospectus dated April 29, 1996
(used only in the states of Massachusetts, Missouri and Texas).
Questions regarding this filing should be directed to the undersigned.
Sincerely,
/s/ Jon Kiekhofer
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Jon Kiekhofer
Financial Analyst
JK/kg
Encl.
SUPPLEMENT FOR MASSACHUSETTS,
MISSOURI AND TEXAS RESIDENTS
The Fund's annual 12b-1 Fees may be as high as 0.65% of average net assets.
The Fund's annual 12b-1 Fee will ultimately be determined by the mix of sales
made by the Fund as contrasted with those sales made by broker-dealers. During
1995 the Fund paid 12b-1 fees at the annual rate of 0.08%.
The investor should be aware that the Fund's Distribution Plan under Rule
12b-1 has an unusual characteristic which differentiates it from most 12b-1
Plans in that the Distribution Plan anticipates the possibility of significant
share purchases directly through the Fund. The 12b-1 Fees, although a Fund
expense which is paid by all shareholders, will only directly benefit investors
who purchase their shares through a broker-dealer rather than from the Fund.
Broker-dealers who sell shares of the Fund may provide services to their
customers that are not available to investors who purchase their shares directly
from the Fund. Investors who purchase their shares directly from the Fund will
pay a pro rata share of the Fund expense of encouraging broker-dealers to
provide such services but not receive any of the direct benefits of such
services. The 12b-1 Fees will continue to be paid to these broker-dealers for as
long as the related assets remain in the Fund.
Please refer to the fee table on page 3 of the Prospectus for additional
information on the Fund's operating expenses.
April 29, 1996
