SUPPLEMENT DATED FEBRUARY 10, 2000
TO
WEBS INDEX FUND, INC.
PROSPECTUS
AND
STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 30, 1999
The information in this Supplement updates the information in, and should
be read in conjunction with, the Prospectus and the Statement of Additional
Information of WEBS Index Fund, Inc., each dated December 30, 1999.
The WEBS Fund's Board of Directors has approved, subject to approval by
shareholders, several changes to the WEBS Fund's advisory agreement. The Board
also approved fee reduction proposals from the WEBS Fund's administrator and
accounting services agent and its global custodian and changes to the WEBS
Fund's distribution arrangements.
* The Board of Directors has approved, subject to shareholder approval at a
special meeting of shareholders expected to be held in early April 2000,
amendments to the WEBS Fund's advisory agreement with Barclays Global Fund
Advisors ("BGFA"), including a change to the WEBS Fund's fee arrangements
with BGFA. The proposed new fee arrangements are designed both to
compensate BGFA for its advisory services and to require BGFA to pay
expenses of the WEBS Fund if and to the extent necessary to ensure that the
expense ratio of each of the WEBS Fund's initial 17 WEBS Index Series,
exclusive of fees payable under the WEBS Fund's Rule 12b-1 plan, brokerage
costs and certain extraordinary expenses, equals .59% of the average daily
net assets of the Series. The effect of the proposed amendments, at
current asset levels and assuming no extraordinary expenses, would be an
expense ratio of .84% (.59% + .25%) of average daily net assets for each
WEBS Index Series. Expense ratios of the WEBS Fund's 17 WEBS Index Series
in the fiscal year ended August 31, 1999 ranged from a high of 1.43% of
average daily net assets for the Malaysia (Free) WEBS Index Series to a
low of .94% of average daily net assets for the Japan WEBS Index Series.
Details of the proposed amendments to the advisory agreement, including
breakpoints and fee arrangements for the WEBS Index Series that have not
yet commenced operations, will be included in the proxy statement for the
special meeting of shareholders.
* The Board of Directors has approved fee reduction proposals from PFPC Inc.,
the WEBS Fund's administration and accounting services agent, and its
global custodian. Based on current asset levels, these changes, which
became effective as of the date of this supplement, resulted in reductions
in asset based fees for the WEBS Fund ranging from approximately .13%
(Hong Kong WEBS Index Series) to approximately .07% (Mexico (Free) WEBS
Index Series) of average daily net assets.
* A new Distributor, SEI Investments Distribution Company, has been appointed
for the WEBS Fund, effective no later than the end of March 2000. In
addition, the Board of Directors' previous limitation on annual
distribution fees paid by a WEBS Index Series under the WEBS Fund's Rule
12b-1 distribution plan (up to .20% of the average daily net assets of the
Series) will be removed at the time that SEI becomes the WEBS Fund's
Distributor, with the effect that each Series may pay annual distribution
fees of up to .25% of the average daily net assets of the Series under the
12b-1 plan (the maximum permitted by the 12b-1 plan). An affiliate of the
WEBS Fund's current distributor, Funds Distributor, Inc., is expected to
provide marketing and consulting services in respect of WEBS after the
transition of the distribution function to SEI.
