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ONE FUND, INC.
SUPPLEMENT DATED MAY 24, 1999 TO THE
PROSPECTUS DATED NOVEMBER 1, 1999
This prospectus supplement discloses changes to the November 1, 1998
prospectus. These include:
> a plan of merger for certain portfolios
> a new sub-advisory agreement and fees for the International and
Global Contrarian portfolios
> a new portfolio co-manager and sub-advisory fees for the Core Growth
portfolio
PLAN OF MERGER
The Board of Directors has approved a plan of merger and liquidation under
which, if approved by the shareholders of the portfolios to be merged and
liquidated, the Global Contrarian portfolio will be merged into the
International portfolio, and the Tax-Free Income portfolio will be merged into
the Income portfolio.
If the mergers are approved by the owners of a majority of the outstanding
shares of each of the Global Contrarian and Tax-Free Income portfolios (the
"liquidating" portfolios), each shareholder of the Global Contrarian portfolio
shall receive a number of shares, including fractional shares, of the
International portfolio equal in dollar value to the number of whole and
fractional shares the shareholder owns in the Global Contrarian portfolio, and
each shareholder of the Tax-Free Income portfolio shall receive a number of
shares, including fractional shares, of the Income portfolio equal in dollar
value to the number of whole and fractional shares the shareholder owns in the
Tax-Free Income portfolio. The two liquidating portfolios will then be
terminated.
FEDERATED GLOBAL INVESTMENT MANAGEMENT CORP.
The sub-adviser of the International and Global Contrarian portfolios is
Federated Global Investment Management Corp. ("FGIM"). It has replaced Societe
Generale Asset Management Corp. ("SGAM"). The sub-advisory fees paid by the
Adviser to FGIM for the International portfolio are at an annual rate of 0.40%
of the first $200 million of the average daily total net assets and 0.35% of
average daily total net assets in excess of $200 million of that portfolio. The
Adviser is waiving 0.05% of its 0.90% investment advisory fee for the
International portfolio. The sub-advisory fee for the Global Contrarian
portfolio is 0.75% of the first $100 million and 0.65% of average daily total
net assets in excess of $100 million of that portfolio.
All references in the prospectus to SGAM are changed to FGIM.
The lead portfolio manager of the International and Global Contrarian portfolios
is Drew Collins, senior vice president of FGIM. Mr. Collins has directed
portfolio management and investment research of global equity and fixed income
funds for FGIM since 1995. For one year prior to that he was vice president and
international portfolio manager of Arnhold and S. Bleichroeder, Inc., and for
eight years before that he was a portfolio manager for College Retirement
Equities Fund. Mr. Collins is a chartered financial analyst with a bachelor's
degree from Oberlin College and a master of business administration degree in
finance from the Wharton School of the University of Pennsylvania.
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CORE GROWTH PORTFOLIO
The Sub-Advisory Agreement with PBA has been amended to provide for the Adviser
to pay PBA fees accruing at the following rates on and after January 1, 1999:
0.65% of the first $50 million of the average daily net assets of the Core
Growth Portfolio, 0.60% of the next $100 million and 0.50% of all average daily
net assets in excess of $150 million.
Michael Hahn has replaced Ellen McGee as co-manager of the Core Growth Portfolio
primarily responsible for the portfolio's small and micro cap investments. He
has been a portfolio manager for PBA since 1996. For two years prior to that he
was an assistant portfolio manager for First National Bank of Maryland and spent
a year as a financial accountant for International Business Machines. Mr. Hahn
is a chartered financial analyst with a bachelor's degree in finance from
Pennsylvania State University and a master of business administration degree
from the University of Maryland.
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