PROTECTIVE INVESTMENT COMPANY
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SUPPLEMENT DATED SEPTEMBER 1, 1998 TO
PROSPECTUS DATED MAY 1, 1998
Under "INVESTMENT OBJECTIVES AND POLICIES - Protective CORE U.S. Equity Fund,"
the fifth sentence of the third paragraph is deleted.
Under "INVESTMENT OBJECTIVES AND POLICIES - Protective Global Income Fund" the
second sentence of subsection "Currency and Interest Rate Techniques" is revised
to add credit swaps as one of the management techniques that the Fund may
employ.
Under "SPECIAL INVESTMENT METHODS AND RISKS" subsection "When-Issued Securities
and Forward Commitments," the following sentence is added:
Each Fund may sell securities on a forward commitment basis; that is,
make contracts to sell securities for a fixed price at a future date
beyond the customary, three-day settlement. Securities sold on a
forward commitment basis involve the risk that the value of the
securities to be sold may increase prior to the settlement date.
Under "SPECIAL INVESTMENT METHODS AND RISKS" subsection "Foreign Transactions -
Foreign Investments" the following language has been added to the fourth
paragraph after point (4):
(5) the fluctuation of the euro relative to non-euro currencies
during the transition period from January 1, 1999 to December 31,
2000 and beyond; (6) whether the interest rate, tax and labor
regimes of European countries participating in the euro will
converge over time; (7) 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.
Under "SPECIAL INVESTMENT METHODS AND RISKS" subsection "Other Investment
Companies" the first sentence has been revised to read as follows:
All of the Funds reserve the right to invest up to 10% of their total
assets, calculated at the time of purchase, in the securities of other
investment companies including business development companies, small
business investment companies and, with the exception of the Money
Market and Global Income Funds, World Equity Benchmark Shares ("WEBS").
Under "MANAGEMENT" subsection "Investment Advisers," the following language is
added at the end of the first paragraph:
The Goldman Sachs Group, L.P., which controls the Investment Advisers,
has announced that it will pursue an inital public offering of the firm
during the fourth quarter of 1998; if the public offering is
consummated, The Goldman Sachs Group, L.P. will merge into the new
public company, which will be called The Goldman Sachs Group, Inc.
Under "MANAGEMENT" subsection "Investment Advisers - Portfolio Managers," the
following portfolio managers have been added:
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FUND MANAGERS
FIVE YEAR
NAME AND TITLE FUND RESPONSIBILITY EMPLOYMENT HISTORY
MELISSA BROWN SENIOR PORTFOLIO MANAGER- MS. BROWN JOINED THE INVESTMENT
VICE PRESIDENT CORE U.S. EQUITY ADVISER IN 1998. FROM 1984 TO
1998, SHE WAS THE DIRECTOR OF
QUANTITATIVE EQUITY RESEARCH
AND SERVED ON THE INVESTMENT
POLICY COMMITTEE AT PRUDENTIAL
SECURITIES.
GREG GIGLIOTTI SENIOR PORTFOLIO MANAGER- MR. GIGLIOTTI JOINED THE
VICE PRESIDENT GROWTH AND INCOME INVESTMENT ADVISER IN 1997.
FROM 1996 TO 1997 HE WAS A
VICE PRESIDENT AND SENIOR
ANALYST
AT FRANKLIN MUTUAL ADVISORS,
INC. , THE ASSET MANAGEMENT
DIVISION OF FRANKLIN
RESOURCES,
INC. FROM 1989 TO 1996 HE
WAS A VICE PRESIDENT AND
SENIOR
ANALYST AT HEINE SECURITIES
CORPORATION WHICH WAS
PURCHASED BY FRANKLIN
RESOURCES, INC.
SUSAN NOBLE SENIOR PORTFOLIO MANAGER- MS. NOBLE JOINED THE
EXECUTIVE DIRECTOR INTERNATIONAL EQUITY INVESTMENT ADVISER IN OCTOBER
1997 AS SENIOR PORTFOLIO
MANAGER AND
HEAD OF THE EUROPEAN EQUITY
TEAM. FROM 1986 TO 1997, SHE
WORKED AT FLEMING INVESTMENT
MANAGEMENT IN LONDON, WHERE SHE
MOST RECENTLY WAS PORTFOLIO
MANAGEMENT DIRECTOR FOR THE
EUROPEAN EQUITY INVESTMENT
STRATEGY AND PROCESS.
THOMAS S. PRICE SENIOR PORTFOLIO MANAGER- MR. PRICE JOINED THE
VICE PRESIDENT GROWTH AND INCOME INVESTMENT ADVISER IN 1997.
FROM 1996 TO
1997 HE WAS A VICE PRESIDENT
AND SENIOR ANALYST AT FRANKLIN
MUTUAL ADVISORS, INC., THE
ASSET MANAGEMENT DIVISION OF
FRANKLIN RESOURCES, INC. FROM
1993 TO 1996 HE WAS A VICE
PRESIDENT AND SENIOR ANALYST
AT HEINE SECURITIES
CORPORATION WHICH WAS
PURCHASED BY FRANKLIN
RESOURCES, INC.
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IN ADDITION, ALLESSANDRO P.G. LUNGHI AND KARMA WILSON ARE NO LONGER SERVING AS A
PORTFOLIO MANAGERS OF THE INTERNATIONAL EQUITY FUND; MS. WILSON IS NOW SERVING
AS A PORTFOLIO MANAGER OF THE GROWTH AND INCOME FUND; EILEEN A. APTMAN, G. LEE
ANDERSON AND RONALD E. GUTFLEISH ARE NO LONGER SERVING AS A PORTFOLIO MANAGERS
OF THE GROWTH AND INCOME FUND; AND TAKEYA SUZUKI IS NO LONGER SERVING AS A
PORTFOLIO MANAGER FOR ANY OF THE FUNDS.
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