UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
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Exchange Act of 1934 (Amendment No. __)
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The Yacktman Funds, Inc.
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CONTACT:
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Jon D. Carlson
President, The Yacktman Funds, Inc.
630/734-3792
Stanislaw ("Stas") Maliszewski
Director, The Yacktman Funds, Inc.
312/780-1933
FOR IMMEDIATE RELEASE:
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YACKTMAN CRITICIZED BY PROXY ANALYST
CHICAGO, ILLINOIS, November 18, 1998---The Yacktman Funds, Inc. (the "Funds")
announced that Institutional Shareholder Services ("ISS"), the foremost analyst
of proxy statements for institutional investors, issued a report on November 12,
1998, advising institutional investors to support the current independent
directors of the Funds by voting AGAINST the proposals of Yacktman Asset
Management Co. ("Yacktman"). In preparing its report, ISS reviewed substantial
information involving the Funds and interviewed both Yacktman and the
independent directors. After reading the ISS report, lead independent director
Stanislaw ("Stas") Maliszewski stated, "This report shows that, in the opinion
of an experienced, unbiased source, Yacktman has overstepped its bounds by
trying to remove the independent directors. When the heat got to be too much,
Don Yacktman wanted to change thermometers rather than admit he'd burned the
roast."
In its analysis of the proxy contest, ISS termed Yacktman's decision to
challenge the independent directors "inappropriate." It is the responsibility of
the independent directors to oversee the management of the Funds; to carry out
this responsibility, the independent directors were compelled to question
Yacktman about its performance and resources. ISS noted that the decline of fund
assets was not due to the actions of the independent directors, but were the
result of recent events--including the proxy contest launched by Yacktman.
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Yacktman initiated the proxy contest in September--an action unprecedented in
mutual fund annals--when the independent directors refused its demand that they
resign. This demand followed intense questioning of Yacktman by the independent
directors about such issues as change in investment style, increased portfolio
risk, inadequacy of investment staff, and ethics violations, all culminating in
poor investment performance.
