SEQUOIA FUND, INC.
Supplement dated December 9, 2009
to the Prospectus dated May 1, 2009
The first paragraph
under the section “How to Buy Shares” is deleted in its entirety
and replaced with the following:
·
You
may purchase shares of the Fund directly by mail, by wire transfer or through
the Internet or indirectly through participating financial intermediaries that
have selling arrangements with the Fund.
After you have established an account with the Fund directly and made
your first purchase, you may make subsequent purchases by mail or telephone or
through the Internet or the Fund’s automatic investment plan. The Fund accepts purchase orders for
fractional shares. The Fund
reserves the right to withdraw the offering of Fund shares at any time, without
notice.
·
Purchases Through the Internet
You may open
the following types of accounts at www.sequoiafund.com:
individual, joint, Transfer on Death, UGMA/UTMA and Traditional and Roth
IRAs. Once you have opened an
account online with the Fund and registered for online transaction privileges,
you may make initial and additional purchases of Fund shares online. The Fund limits the amount that you may
purchase through the website to $100,000 or less per day. To purchase shares online, you must have
Automated Clearing House (“ACH”) instructions on your account. The ACH network is an electronic funds
transfer system, which is governed by the operating rules of NACHA (an
electronic payments association). Purchases
of Fund shares online will be completed via ACH, and the amount of the purchase
will be deducted from your bank account.
Your account with the Fund will be credited with Fund shares on the
trade date, but the dollar amount will not post until it clears the banking
system.
If you plan to
purchase Fund shares through the Internet, please review the important
information below under “Information
about Online Account Information and Transactions.”
The first sentence under
the section “How to Buy Shares - Additional Purchases by the Automatic
Investment Plan (Via Automated Clearing House)” is deleted and replaced
with the following:
·
Except
for initial purchases made online, you may not make initial purchases of Fund
shares by ACH.
The section “How to Redeem Shares – By Telephone”
is deleted in its entirety and replaced with the following:
·
By Telephone or Through the Internet
You may make a
redemption request of $25,000 or less (per account per business day) by
telephone or through the Internet, which does not require a signature
guarantee, unless your address has changed within the 60
days prior to the request. All
other redemption requests must have signature guarantees as described
above. Certain shareholders, such
as corporations, trusts and estates, may be required to submit additional
documents.
If you plan to
redeem Fund shares through the Internet, please review the important
information below under “Information
about Online Account Information and Transactions.”
The following section is added prior to the section
“Frequent Purchases and Redemption of Shares”:
·
Information about Online
Account Information and Transactions
You may visit us online
at the Fund’s website at www.sequoiafund.com. In addition to checking your Fund
account balance, you may purchase or redeem shares of the Fund through the
website. You may establish online
transaction privileges by enrolling on the website. You automatically have the
ability to establish these privileges, but you will be required to enter into a
users’ agreement through the website to enroll for the privileges.
Transactions through the website are subject to the same minimums as other
transaction methods.
The Fund limits the amount
that you may purchase through the website to $100,000 or less per day. To purchase shares online, you must have
ACH instructions on your account. Only bank accounts held at domestic financial
institutions that are ACH members can be used for transactions through the
Fund’s website. Payment for purchases of Fund shares through the website
may be made only through an ACH debit of your bank account.
The Fund limits the
amount that you may redeem through the website to $25,000 or less per day. Redemption proceeds may be sent by check
or, if your account has bank information, by wire or ACH. Redemptions will be
paid by check, wire or ACH transfer only to the address or bank account of
record.
You should be aware that
the Internet is an unsecured, unstable, and unregulated environment. Your
ability to use the Fund’s website for transactions is dependent upon the
Internet and equipment, software and systems provided by various vendors and
third parties. While the Fund and its service providers have established
certain security procedures, they cannot assure you that inquiries, account
information or trading activity will be completely secure. There may also be
delays, malfunctions or other inconveniences generally associated with this
medium. There may also be times when the website is unavailable for Fund
transactions or other purposes. Should this happen, you should consider
purchasing or redeeming shares by another method.
Neither the
Fund nor its affiliates or its transfer agent will be liable for any such
delays or malfunctions or unauthorized interception or access to communications
or account information. In addition, neither the Fund nor its affiliates or its
transfer agent will be liable for any loss, liability, cost or expense for
following instructions communicated through the Internet, including fraudulent
or unauthorized instructions.
The following paragraph is added under the section
“GENERAL INFORMATION.”
The following policy will be implemented by the Fund after July 1, 2010:
·
Due
to the relatively high cost to the Fund of maintaining low balance accounts,
the Fund requests that you maintain an account balance of more than
$1,000. If your account balance is
$1,000 or less for 90 days or longer, the Fund reserves the right to redeem the
shares in your account at their current NAV on the redemption date after giving
you 60 days notice to increase the balance. The redemption of shares could have tax
consequences for you.
THIS SUPPLEMENT SHOULD BE RETAINED FOR
FUTURE REFERENCE