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Prospectus Supplement
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April 19, 1999
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Fund Name Prospectus # (MM/YY Printed)
Strategist Growth Fund, Inc. S-6120 F (9/98)
Strategist Growth Fund
Strategist Growth Trends Fund
Strategist Special Growth Fund
Strategist Growth and Income Fund,
Inc. S-6122 D (11/98)
Strategist Balanced Fund
Strategist Equity Fund
Strategist Equity Income Fund
Strategist Total Return Fund
Strategist Income Fund, Inc. S-6124 D (7/98)
Strategist High Yield Fund
Strategist Government Income Fund
Strategist Quality Income Fund
Strategist Tax-Free Income Fund,
Inc. S-6126 E (1/99)
o Strategist Tax-Free High Yield Fund
Strategist World Fund, Inc. S-6131 E (12/98)
o Strategist Emerging Markets Fund
o Strategist World Growth Fund
o Strategist World Income Fund
o Strategist World Technologies Fund
SHAREHOLDER MEETINGS
At the regular meetings scheduled to be held on June 16, 1999, shareholders will
vote on the following proposals:
1. Change the Investment Management Services Agreement. As shown in the
following table, four funds will be voting on adding a performance incentive
adjustment. Under a performance incentive adjustment, the management fee is
calculated as shown in the prospectus. The fee is then adjusted for performance.
The fund's performance is compared to the performance of a Lipper Index of
similar funds. If the fund performs better than the index, the fee will
increase. If the fund performs worse than the index, the fee will decrease. The
maximum increase or decrease is shown in the table.
Proposed Management Fee Change
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Fund Maximum Adjustment
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Emerging Markets .12%
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Equity Income .08%
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Special Growth .12%
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World Growth .12%
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2. Change Fundamental Policies. Shareholders will be asked to eliminate or
modify a number of policies. Policies to be voted on include those regarding:
potential conflicts of interest; issuing senior securities; transactions with
affiliates; and investing in other investment companies. Eliminating or changing
these policies is not expected to have any impact on the funds' investment
practices.
3. New Subadvisory Agreement. Shareholders of Total Return will be asked to
approve a subadvisory agreement with Kenwood Capital Management, LLC, a
subsidiary of AEFC.
S-6227 (4/99)
*Destroy - June 17, 1999
