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ONE FUND, INC.
SUPPLEMENT JUNE 18, 1999 TO THE
PROSPECTUS DATED NOVEMBER 1, 1998
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
> new portfolio managers for the Growth and Small Cap portfolios
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.
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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.
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.
The portfolio manager of the Core Growth portfolio is Jeffrey A. Wrona. He is
also the portfolio manager of the PBHG Growth II portfolio, co-manager of the
PBHG Technology & Communications Fund and has managed other small and mid cap
portfolios for PBA since 1997. Prior to that he was a senior portfolio manager
at Munder Capital Management for seven years, and before that he was a
securities analyst for Drexel Burnham Lambert and a design engineer for Ford
Motor Company. Mr. Wrona is a chartered financial analyst. He has a bachelor's
degree in engineering and a master of business administration from the
University of Michigan.
GROWTH PORTFOLIO
The portfolio manager of the Growth portfolio is now Stephen Komrska. He is an
investment officer of ONLI and has managed equity securities for ONLI and the
Adviser since 1997. For six years before that, he was a fixed income analyst and
high yield bond portfolio manager for Ohio Casualty Insurance Company. Mr.
Komrska is a chartered financial analyst with a bachelor of business
administration degree in finance and marketing from the University of Michigan.
SMALL CAP PORTFOLIO
The portfolio manager of the Small Cap portfolio is now Stephen Williams. Mr.
Williams continues to be portfolio manager of the Income & Growth portfolio.
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