PROTECTIVE INVESTMENT COMPANY
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Supplement dated March 1, 1999 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 - Global Income Fund" the second
sentence of subsections "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 sentences are 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 replaces the fourth paragraph:
The introduction of a single currency, the euro, on January 1, 1999 for
participating European nations in the European Economic and Monetary
Union presents unique uncertainties, including 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; the fluctuation of the euro relative to non-euro currencies
during the transition period from January 1, 1999 to December 31, 2001
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 countries that
now are or may in the future become members of the European Union
("EU") may have an impact on the euro. These or other factors,
including political and economic risks, could cause market disruptions
that could adversely affect the value of securities held by the Funds.
Brokerage commissions, custodial services and other costs relating to
investment in international securities markets generally are more
expensive than in the United States. In addition, clearance and
settlement procedures may be different in foreign countries and, in
certain markets, such procedures have been unable to keep pace with the
volume of securities transactions, thus making it difficult to conduct
such transactions.
Under "SPECIAL INVESTMENT METHODS AND RISKS" subsection "Other Investment
Companies" the first sentence is 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").
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Under "MANAGEMENT" subsection "Investment Advisers - Portfolio Managers," the
following portfolio managers have been added:
M. Roch Hillenbrand, a Managing Director of Goldman, Sachs & Co., is
the Head of Global Equities for Goldman Sachs Asset Management,
overseeing U.S., Europe, Japan, and non-Japan Asia. In this capacity,
he is responsible for managing the group as it defines and implements
global portfolio management processes that are consistent, reliable and
predictable. Roch is also President of Commodities Corporation LLC, of
which Goldman, Sachs & Co. is the parent company. Over the course of
his 18-year career at Commodities Corporation, Roch has had extensive
experience in dealing with internal and external investment managers
who have managed a range of futures and equities strategies across
multiple markets, using a variety of styles.
All of the Value Style Funds, which include the Growth and Income Fund
and Small Cap Value Fund, are managed on a team basis with certain
members of the team taking primary responsibility for particular Funds.
Each member of the team generally participates in the active discussion
of the composition, structure and strategy of each Fund. The members of
the Value Team are Eileen Aptman, Paul D. Farrell, Matthew B.
McLennan and Karma Wilson.
Fund Managers
Five Year
Name and Title Fund Responsibility Employment History
Melissa Brown Senior Portfolio Manager-Ms. Brown joined the Investment Adviser
Vice President CORE U.S. Equity in 1998. From 1984 to 1998, she was the
director of Quantitative Equity Research
and served on the Investment Policy
Committee at Prudential Securities.
Susan Noble Senior Portfolio Manager- Ms. Noble joined the Investment Adviser
Executive International Equity in October 1997 as Senior Portfolio
Director 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.
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In addition, Allessandro P.G. Lunghi and Karma Wilson are no longer
serving as portfolio managers of the International Equity Fund; Ms.
Wilson and Paul D. Farrell, a Managing Director, are now serving as
portfolio managers of the Growth and Income Fund; Eileen A. Aptman, G.
Lee Anderson, Greg Gigliotti, Ronald E. Gutfleish, Thomas S. Price and
Lawrence S. Sibley are no longer serving as 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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