Passing of Mr. Albert O. Nicholas (Nicholas Funds)

(With the deepest regards....)

https://www.sec.gov/Archives/edgar/data/913131/000091313116000022/nei497e082016.htm

497 1 nei497e082016.htm RULE 497(E)

Rule 497(e)
Registration No. 033-69804
1940 Act File No. 811-08062

SUPPLEMENT DATED AUGUST 29, 2016
TO THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION DATED JULY 31, 2016
OF

Nicholas Equity Income Fund, Inc.

THIS SUPPLEMENT UPDATES THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION.
PLEASE READ AND KEEP IT TOGETHER WITH YOUR COPY OF THE PROSPECTUS AND STATEMENT OF
ADDITIONAL INFOMARTION FOR FUTURE REFERENCE.

The purpose of this supplement is to notify the shareholders of Nicholas Equity Income Fund, Inc. (the “Fund”) with deep and sincere regrets that Mr. Albert O. Nicholas passed away on August 4, 2016. He was very hard working, diligent, humble, and generous. Effective immediately, Mr. Michael L. Shelton is the Lead Portfolio Manager of the Nicholas Equity Income Fund, Inc. and David O. Nicholas is the Portfolio Manager of the Fund. The information regarding the previous portfolio manager found in the following sections of the prospectus dated July 31, 2016 is deleted and replaced with the following effective August 29, 2016.

PART A: INFORMATION REQUIRED IN THE PROSPECTUS:

1. The section “SUMMARY -- Portfolio Managers” on page 4 of the prospectus is revised and restated as follows:

Portfolio Managers

Mr. Michael L. Shelton is the Lead Portfolio Manager of the Fund and is primarily responsible for the day-to-day management of the Fund's portfolio. Mr. Shelton is a Vice President of the Fund and has been the Lead Portfolio Manager of the Fund since August 2016. He formerly served as the Co-Portfolio Manager of the Fund from April 2011 to August 2016, and has been employed by the Adviser since 2006. Mr. David O. Nicholas is the President of the Fund and has been Portfolio Manager of the Fund since August 2016. He formerly served as the Co-Portfolio Manager of the Fund from July 2001 to April 2008.

2. The first paragraph of the section captioned “THE FUND'S INVESTMENT ADVISER” on page 12 of the prospectus is revised and restated as follows:

Mr. Michael L. Shelton is the Lead Portfolio Manager of the Fund and is primarily responsible for the day-to-day management of the Fund's portfolio. Mr. Shelton was the Co-Portfolio Manager of the Fund from April 2011 to August 2016. Mr. Shelton also serves as the Portfolio Manager to another fund managed by the Adviser, and has been employed by the Adviser since 2006, and is a Chartered Financial Analyst and a Certified Public Accountant. In August 2016, Mr. David O. Nicholas became Portfolio Manager of the Fund. Mr. Nicholas was the Co-Portfolio Manager of the Fund from July 2001 to April 2008. Mr. Nicholas is President of the Fund, a Director of the Adviser and the President, Chief Executive Officer and Chief Investment Officer of the Adviser. Mr. Nicholas also serves as a Lead Portfolio Manager or Portfolio Manager to other funds managed by the Adviser, and is a Chartered Financial Analyst.

3. The last paragraph of the section captioned “THE FUND'S INVESTMENT ADVISER” on page 12 of the prospectus is revised and restated as follows:

David O. Nicholas is a controlling person of the Adviser through his ownership of 60% of the outstanding voting securities of the Adviser which are held in trust for his benefit...