PROTECTIVE INVESTMENT COMPANY
Supplement dated October 16, 1998 to
Prospectus dated May 1, 1998
The Investment Manager for each of the Funds, Investment Distributors Advisory
Services, Inc. ("IDASI"), has changed its name to Protective Investment
Advisors, Inc.
The fourth paragraph under the heading Foreign Transactions on page 20 is
replaced by the following paragraph:
The expected introduction of a single currency, the euro, on January 1,
1999 for participating European nations in the Economic and Monetary Union
("EU") presents unique uncertainties, including whether the payment and
operational systems of banks and other financial institutions will be ready by
the scheduled launch date; the creation of suitable clearing and settlement
payment systems for the new currency; the legal treatment of certain outstanding
financial contracts after January 1, 1999 that refer to existing currencies
rather than the euro; the establishment and maintenance of exchange rates for
currencies being converted into the euro and the euro; the fluctuation of the
euro relative to non-euro currencies during the transition period from January
1, 1999 to December 31, 2000 and beyond; whether the interest rate, tax and
labor regimes of European countries participating in the euro will converge over
time; and whether the conversion of the currencies of other EU countries such as
the United Kingdom, Denmark and Greece into the euro and the admission of other
non-EU countries such as Poland, Latvia and Lithuania as members of the EU may
have an impact on the euro. These or other factors, including political and
economic risks, could cause market disruptions before or after the introduction
of the euro, and could adversely affect the value of securities and foreign
currencies held by the Funds.
