-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HzoEacS6JcVZo3gPIj7V6aQFjLLU8zHL8AxNrVzb+UFvVTbgiaPkHnRI/gz11iCQ nRZ1dr0MP7Xp6U/2jgJ6XA== 0000912057-96-003833.txt : 19960305 0000912057-96-003833.hdr.sgml : 19960305 ACCESSION NUMBER: 0000912057-96-003833 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19960304 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONNECTICUT MUTUAL INVESTMENT ACCOUNTS INC CENTRAL INDEX KEY: 0000356865 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 061052841 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-75276 FILM NUMBER: 96531022 BUSINESS ADDRESS: STREET 1: 140 GARDEN ST CITY: HARTFORD STATE: CT ZIP: 06154 BUSINESS PHONE: 2039875002 FORMER COMPANY: FORMER CONFORMED NAME: CONNECTICUT MUTUAL LIQUID ACCOUNT INC DATE OF NAME CHANGE: 19851106 497 1 497 CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. SUPPLEMENT TO THE PROSPECTUS DATED OCTOBER 1, 1995 MARCH 1, 1996 Connecticut Mutual Liquid Account ("Liquid Account") Connecticut Mutual Income Account ("Income Account") Connecticut Mutual Government Securities Account ("Government Account") Connecticut Mutual Total Return Account ("Total Return Account") Connecticut Mutual Growth Account ("Growth Account") CMIA LifeSpan Capital Appreciation Account ("LifeSpan Capital Appreciation Account") CMIA LifeSpan Balanced Account ("LifeSpan Balanced Account") CMIA LifeSpan Diversified Income Account ("LifeSpan Income Account") (collectively, the "LifeSpan Accounts") (collectively, the "Accounts") APPOINTMENT OF OPPENHEIMERFUNDS, INC. AS EACH ACCOUNT'S INVESTMENT MANAGER. (EFFECTIVE MARCH 1, 1996). On February 14, 1996, shareholders of each Account authorized the Accounts to enter into new investment management agreements with OppenheimerFunds, Inc. (the "Manager"). These agreements became effective on March 1, 1996 at the time of the consummation of the merger between Connecticut Mutual Life Insurance Company and Massachusetts Mutual Life Insurance Company ("MassMutual"), the indirect parent company of the Manager. The new management agreements (the "New Agreements") provide for compensation to the Manager at the same rate as was previously paid to G.R. Phelps & Co., Inc. ("Phelps"), the former investment manager to the Accounts, and set forth in the Accounts' respective prospectuses. The New Agreements do not contain the contractual limitation on an Account's expenses that was included in the investment advisory agreement with Phelps. Effective March 1, 1996, the portfolio managers of the Accounts, previously employed by Phelps, have become employees of the Manager and will continue to manage the Accounts, except as noted below. Phelps will provide fund administrative services to the Manager pursuant to an administrative services agreement between Phelps and the Manager. Compensation to Phelps for such services is paid by the Manager. The Manager has operated as an investment adviser since 1959 and, together with an affiliate, manages investment companies with $40 million in assets and more than 2.8 million shareholder accounts. The Manager is owned by Oppenheimer Acquisition Corp., a holding company that is owned in part by senior officers for the Manager and controlled by MassMutual. The address of the Manager is Two World Trade Center, New York, NY 10048-0203. APPOINTMENT OF SUBADVISERS TO THE LIFESPAN ACCOUNTS. (EFFECTIVE MARCH 1, 1996). BEA Associates will continue to provide investment subadvisory services to the LifeSpan Accounts pursuant to separate subadvisory agreements between BEA and the Manager. Pilgrim Baxter & Associates Ltd. will continue to provide subadvisory services to the LifeSpan Capital Appreciation Account and the LifeSpan Balanced Account pursuant to separate subadvisory agreements between Pilgrim and the Manager. The shareholders of the LifeSpan Capital Appreciation Account and the LifeSpan Balanced Account approved the Manager's selection of Babson-Stewart Ivory International ("Babson-Stewart") to provide subadvisory services to the LifeSpan Capital Appreciation Account and the LifeSpan Balanced Account pursuant to separate subadvisory agreements between Babson-Stewart and the Manager. Babson-Stewart is located at One Memorial Drive, Cambridge, MA 02142, and is a partnership formed in 1987 between David L. Babson & Co., Inc., a subsidiary of MassMutual, and Stewart Ivory & Co., Ltd., located in Edinburgh, Scotland. OPPENHEIMERFUNDS DISTRIBUTOR, INC. HAS BEEN APPOINTED AS THE ACCOUNTS' DISTRIBUTOR. (EFFECTIVE MARCH 18, 1996). OppenheimerFunds Distributor, Inc. (the "Distributor"), a subsidiary of the Manager, has been selected by the Board of Directors as each Account's Distributor, and shareholders of each Account approved new Rule 12b-1 Plans (the "Plans") for each class of its shares. The Class A Plans authorize the Accounts to reimburse the Distributor for its actual expenditures in servicing accounts. The fee under each Class A Plan is 0.25% of the average net assets of the Class A shares. Services provided include answering customer inquiries about an Account, assisting in establishing and maintaining accounts in an Account, making an Account's investment plans available and providing other services at the request of an Account or the distributor. The Class B Plans authorize the Accounts to compensate the Distributor for its services in distributing Class B shares and servicing accounts. The fee under each Class B Plan consists of an "asset-based" sales charge of 0.75% of the average net assets of the Class B shares and a service fee of 0.25% of such assets. The asset-based sales charge is used to compensate the Distributor for distribution services to an Account including paying and financing the payment of sales commissions, service fees and other costs of distributing and selling Class B shares. The service fee is used to provide the same services described for the Class A Plan. CHANGE IN NAMES. (EFFECTIVE MARCH 18, 1996). The Board of Directors has approved the change in name of the registered investment company from Connecticut Mutual Investment Accounts, Inc. to Oppenheimer Series Fund, Inc. (the "Company") and the following changes to the names of five series of the Company: Connecticut Mutual Total Return Account to OPPENHEIMER DISCIPLINED ALLOCATION FUND Connecticut Mutual Growth Account to OPPENHEIMER DISCIPLINED VALUE FUND CMIA LifeSpan Capital Appreciation Account to OPPENHEIMER LIFESPAN GROWTH FUND CMIA LifeSpan Balanced Account to OPPENHEIMER LIFESPAN BALANCED FUND CMIA LifeSpan Diversified Income Account to OPPENHEIMER LIFESPAN INCOME FUND OTHER CHANGES TO THE ACCOUNTS. THE PORTFOLIO MANAGERS. As of March 1, 1996, Carol E. Wolf has assumed portfolio management of the Liquid Account. Ms. Wolf is an officer of Centennial Asset Management Corporation, a subsidiary of the Manager, and provides portfolio -2- management services to Oppenheimer Money Market Account, Inc. David A. Rosenberg has assumed portfolio management of the Government Account and the Income Account. Mr. Rosenberg provides portfolio management services to two other Oppenheimer fixed-income funds and was an officer and portfolio manager at Delaware Investment Advisors until 1994. Mr. Arthur Zimmer will join the team that currently provides portfolio management services to Total Return Account and Growth Account. Mr. Zimmer is a Vice President and Portfolio Manager for the Manager, and currently serves as an officer and portfolio manager for other Oppenheimer funds. Mr. James M. Burns, Managing Director of Babson-Stewart, will manage the international component of the LifeSpan Capital Appreciation Account and LifeSpan Balanced Account on behalf of Babson-Stewart. He has been affiliated with Stuart Ivory & Co., Ltd. since 1990, and serves as a portfolio manager for that firm and leads the Continental Europe Team. The portfolio management teams at BEA and Pilgrim Baxter will continue to provide portfolio management services to the respective components of the LifeSpan Accounts. TRANSFER AGENT. Effective as of March 18, 1996, the Accounts' transfer and shareholder servicing agent will be OppenheimerFunds Services ("OFS"), a division of the Manager. OFS will provide these services to the Accounts at cost. Until that date, National Financial Data Services will continue to serve as the Accounts' transfer agent. EXCHANGE PRIVILEGE. Shareholders of each Account will continue to be entitled to the same exchange privileges described in the current Prospectus. At the current time, shares of the Accounts may be exchanged as provided in the Prospectus only for shares of other funds for which Phelps formerly acted as investment adviser. PROPOSED REORGANIZATIONS. The Company's Board of Directors has approved the reorganization of each of Liquid Account, Income Account and Government Account with a corresponding Oppenheimer mutual fund subject to shareholder approval. EXPENSES SHAREHOLDER TRANSACTION EXPENSES AND ANNUAL ACCOUNT OPERATING EXPENSES FOR THE ACCOUNTS. (EFFECTIVE MARCH 18, 1996). Please see the current Prospectus for a description of the Shareholder Transaction Expenses and Annual Account Operating Expenses for the Accounts in effect until March 18, 1996. The following table sets forth the Shareholder Transaction Expenses and Annual Account Operating Expenses of the Accounts for the current fiscal year effective as of March 18, 1996. Annual Operating Expenses are based on expenses incurred in the fiscal year ended December 31, 1995 and restated to reflect the change in sales charges and the termination of the agreements by Connecticut Mutual Financial Services, L.L.C. not to impose Rule 12b-1 fees and to reimburse expenses for certain of the Accounts. -3- SHAREHOLDER TRANSACTION EXPENSES AND ANNUAL OPERATING EXPENSES*
LifeSpan Total Capital LifeSpan LifeSpan Income Government Return Growth Appreciation Balanced Income Account Account Account Account Account Account Account ------------- ------------ ------------- ------------- ------------ ------------- ------------ Liquid Class Class Class Class Class Class Class Class Class Class Class Class Class Class Account A B A B A B A B A B A B A B SHAREHOLDER TRANSACTION EXPENSES Maximum Sales Charge Imposed on Purchases (as a percentage of offering (price) None 4.75% None 4.75% None 5.75% None 5.75% None 5.75% None 5.75% None 5.75% None Deferred Sales Charge (as a percentage of original purchase price or redemption proceeds, as applicable) None None(1) 5.00% None(2) 5.00% None(1) 5.00% None(1) 5.00% None(1) 5.00% None(1) 5.00% None(1) 5.00% Exchange Fee None None None None None None None None None None None None None None None ANNUAL OPERATING EXPENSES OF EACH ACCOUNT (as a percentage of average net assets) Management Fees .50% .625% .625% .625% .625% .625% .625% .625% .625% .85% .85% .85% .85% .75% .75% 12b-1 Fees N/A .25 1.00 .25 1.00 .25 1.00 .25 1.00 .25 1.00 .25 1.00 .25 1.00 Other Expenses .46 .315 .315 .355 .355 .295 .295 .345 .345 .45 .45 .45 .45 .50 .50 ---- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- TOTAL ANNUAL OPERATING EXPENSES OF EACH ACCOUNT .96% 1.19% 1.94% 1.23% 1.98% 1.17% 1.92% 1.22% 1.97% 1.55% 2.30% 1.55% 2.30% 1.50% 2.25% ---- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- - ----------------------------------------------------------------------------------------------------------------------------------
* Effective as of March 18, 1996. See the current Prospectus for the sales charges and fees in effect until March 18, 1996. (1)Purchases of $1,000,000 or more will not be subject to an initial sales charge but may be subject to a contingent deferred sales charge of 1% if the shares are redeemed within 18 months after the calendar month of purchase. -4- EXAMPLE: Assuming that a Fund's annual return is 5% and that its operating expenses are exactly as shown in the table above, if you closed your account after the number of years indicated below, for every $1,000 invested, your investment would bear the following amounts in total expenses:
LIFESPAN GOVERNMENT TOTAL CAPITAL LIFESPAN LIFESPAN INCOME SECURITIES RETURN GROWTH APPRECIATION BALANCED INCOME ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ------- ---------- ------- ------- ------------ -------- -------- CLASS A SHARES After 1 year $ 59 $ 59 $ 69 $ 69 $ 72 $ 72 $ 72 After 3 years 83 85 93 94 104 104 103 After 5 years 110 112 118 121 N/A N/A N/A After 10 years 185 189 191 197 N/A N/A N/A CLASS B SHARES ASSUMING COMPLETE REDEMPTION AT END OF PERIOD After 1 year $ 70 $ 70 $ 70 $ 70 $ 73 $ 73 $ 73 After 3 years 101 102 100 102 112 112 110 After 5 years 125 127 124 126 N/A N/A N/A After 10 years 207 211 205 210 N/A N/A N/A ASSUMING NO REDEMPTION After 1 year $ 20 $ 20 $ 20 $ 20 $ 23 $ 23 $ 23 After 3 years 61 62 60 62 72 72 70 After 5 years 105 107 104 106 N/A N/A N/A After 10 years 207 211 205 210 N/A N/A N/A WITH RESPECT TO THE LIQUID ACCOUNT: LIQUID ACCOUNT ------- After 1 year $ 10 After 3 years 31 After 5 years 53 After 10 years 118
THESE EXEMPLES ILLUSTRATE THE EFFECT OF EXPENSES, AND SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. -5- EX-99.1 2 STATEMENT OF ADDITIONAL INFORMATION CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED OCTOBER 1, 1995 Connecticut Mutual Liquid Account Connecticut Mutual Income Account Connecticut Mutual Government Securities Account Connecticut Mutual Total Return Account Connecticut Mutual Growth Account CMIA LifeSpan Capital Appreciation Account (""LifeSpan Capital Appreciation Account'') CMIA LifeSpan Balanced Account (""LifeSpan Balanced Account'') CMIA LifeSpan Diversified Income Account (collectively, the ""LifeSpan Accounts'') (collectively, the ""Accounts'') APPOINTMENT OF OPPENHEIMERFUNDS, INC. AS EACH ACCOUNT'S INVESTMENT MANAGER. (EFFECTIVE MARCH 1, 1996). On February 14, 1996, shareholders of each Account authorized the Accounts to enter into new investment management agreements with OppenheimerFunds, Inc. (the ""Manager''). These agreements became effective on March 1, 1996 at the time of the consummation of the merger between Connecticut Mutual Life Insurance Company and Massachusetts Mutual Life Insurance Company (""MassMutual''), the indirect parent company of the Manager. The new management agreements (the ""New Agreements'') provide for compensation to the Manager at the same rate as was previously paid to G.R. Phelps & Co., Inc. (""Phelps''), the former investment manager to the Accounts, and set forth in the Accounts' respective prospectuses. The New Agreements do not contain the contractual limitation on an Account's expenses that was included in the investment advisory agreement with Phelps. Phelps will provide fund administrative services to the Manager pursuant to an administrative services agreement between Phelps and the Manager. Compensation to Phelps for such services is paid by the Manager. The Manager has operated as an investment adviser since 1959 and, together with an affiliate, manages investment companies with $40 million in assets and more than 2.8 million shareholder accounts. The Manager is owned by Oppenheimer Acquisition Corp., a holding company that is owned in part by senior officers for the Manager and controlled by MassMutual. The address of the Manager is Two World Trade Center, New York, NY 10048-0203. APPOINTMENT OF SUBADVISERS TO THE LIFESPAN ACCOUNTS. (EFFECTIVE MARCH 1, 1996). BEA Associates will continue to provide investment subadvisory services to the LifeSpan Accounts pursuant to separate subadvisory agreements between BEA and the Manager. Pilgrim Baxter & Associates Ltd. will continue to provide subadvisory services to the LifeSpan Capital Appreciation Account and the LifeSpan Balanced Account pursuant to separate subadvisory agreements between Pilgrim and the Manager. The shareholders of the LifeSpan Capital Appreciation Account and the LifeSpan Balanced Account approved the Manager's selection of Babson-Stewart Ivory International (""Babson-Stewart'') to provide subadvisory services to the LifeSpan Capital Appreciation Account and the LifeSpan Balanced Account pursuant to separate subadvisory agreements between Babson-Stewart and the Manager. Babson-Stewart is located at One Memorial Drive, Cambridge, MA 02142, and is a partnership formed in 1987 between David L. Babson & Co., Inc., a subsidiary of MassMutual, and Stewart Ivory & Co., Ltd., located in Edinburgh, Scotland. OPPENHEIMERFUNDS DISTRIBUTOR, INC. HAS BEEN APPOINTED AS THE ACCOUNTS' DISTRIBUTOR. (EFFECTIVE MARCH 18, 1996). OppenheimerFunds Distributor, Inc. (the ""Distributor''), a subsidiary of the Manager, has been selected by the Board of Directors as each Account's Distributor, and shareholders of each Account approved new Rule 12b-1 Plans (the ""Plans'') for each class of its shares. The Class A Plans authorize the Accounts to reimburse the Distributor for its actual expenditures in servicing accounts. The fee under each Class A Plan is 0.25% of the average net assets of the Class A shares. Services provided include answering customer inquiries about an Account, assisting in establishing and maintaining accounts in an Account, making an Account's investment plans available and providing other services at the request of an Account or the distributor. The Class B Plans authorize the Accounts to compensate the Distributor for its services in distributing Class B shares and servicing accounts. The fee under each Class B Plan consists of an ""asset-based'' sales charge of 0.75% of the average net assets of the Class B shares and a service fee of 0.25% of such assets. The asset-based sales charge is used to compensate the Distributor for distribution services to an Account including paying and financing the payment of sales commissions, service fees and other costs of distributing and selling Class B shares. The service fee is used to provide the same services described for the Class A Plan. CHANGE IN NAME. (EFFECTIVE MARCH 18, 1996). The Board of Directors has approved the change in name of the registered investment company from Connecticut Mutual Investment Accounts, Inc. to Oppenheimer Series Fund, Inc. (the ""Company'') and the following changes to the names of five series of the Company: Connecticut Mutual Total Return Account to OPPENHEIMER DISCIPLINED ALLOCATION FUND Connecticut Mutual Growth Account to OPPENHEIMER DISCIPLINED VALUE FUND CMIA LifeSpan Capital Appreciation Account to OPPENHEIMER LIFESPAN GROWTH FUND CMIA LifeSpan Balanced Account to OPPENHEIMER LIFESPAN BALANCED FUND CMIA LifeSpan Diversified Income Account to OPPENHEIMER LIFESPAN INCOME FUND -2- OTHER CHANGES TO THE ACCOUNTS. TRANSFER AGENT. Effective as of March 18, 1996, the Accounts' transfer and shareholder servicing agent will be OppenheimerFunds Services (""OFS''), a division of the Manager. OFS will provide these services to the Accounts at cost. Until that date, National Financial Data Services will continue to serve as the Accounts' transfer agent. EXCHANGE PRIVILEGE. Shareholders of each Account will continue to be entitled to the same exchange privileges described in the current Prospectus. At the current time, shares of the Accounts may be exchanged as provided in the Prospectus only for shares of other funds for which Phelps formerly acted as investment adviser. SUPPLEMENT DATED: MARCH 1, 1996 -3- -----END PRIVACY-ENHANCED MESSAGE-----