https://www.sec.gov/Archives/edgar/data/870156/000087015616000085/s497.htm497
1 s497.htm
STRATUS FUND, INC.
Supplement dated May
11, 20
16 to the Prospectuses, dated October 3
1, 20
15,regarding the Retail Class A Shares and the Institutional Class Shares, respectively, of the Government Securities Portfolio and Growth Portfolio (the “Portfolios”) of Stratus Fund, Inc.
The Board of Directors (the “Board”) of Stratus Fund, Inc. (the “Fund”) has determined that it is in the best interests of the shareholders of the Fund to liquidate and terminate the Fund. The laws of the Fund’s state of incorporation require the approval of a majority of the shareholders of each Portfolio to effect such a liquidation and termination. As such, the Board intends to call for a Special Meeting of Shareholders to be held on or about June 7, 20
16.
If the liquidation of the Fund is approved by a majority of the shareholders of each Portfolio, the Fund will cease accepting purchase orders from new or existing investors, except for the reinvestment of dividends, effective as of the close of the New York Stock Exchange on that date. The liquidation is expected to be effective on or about June
10, 20
16, or at such other time as may be authorized by the Board (the “Liquidation Date”). Termination of the Funds is expected to occur as soon as practicable following liquidation.
The Fund anticipates making a distribution of any income and/or capital gains of the Portfolios in connection with its liquidation. The liquidation distribution may be taxable. The tax year for the Fund will end on the Liquidation Date.
Purchasers of Fund shares who purchase from the date of this notice and before the liquidation date may be subject to liquidation expenses that they would otherwise not bear, and also may incur short-term capital gains on losses on those shares upon liquidation.
Shareholders of the Fund may redeem their shares at any time prior to the Liquidation Date.
If a shareholder has not redeemed his or her shares as of the Liquidation Date, the shareholder’s account will be automatically redeemed and proceeds will be sent to the shareholder at his or her address of record. Liquidation proceeds will be paid in cash for the redeemed shares at their net asset value.
If a you are a retirement plan investor, you should consult your tax advisor regarding the consequences of a redemption of Fund shares, or the receipt of a liquidating distribution. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement. If you have questions or need assistance, please contact your financial advisor.
If the liquidation is approved by shareholders, the Fund’s portfolio managers will likely increase the Fund’s assets held in cash and similar instruments in order to pay for Fund expenses and meet redemption requests. As a result, as of the date of shareholder approval of the liquidation, the Portfolios...
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