FTI FUNDS
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SUPPLEMENT TO COMBINED PROSPECTUS DATED JANUARY 31, 1998
As of July 6, 1998, the "Total Fund Operating Expenses" figure for FTI
International Equity Fund has been reduced to 1.20%. Accordingly, please delete
the "Summary of Fund Expenses" table on page 3 and replace it with the
following:
SUMMARY OF FUND EXPENSES
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<TABLE>
<S> <C>
INTERNATIONAL EQUITY FUND
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price)....................... None
Maximum Sales Charge Imposed on Reinvested Dividends
(as a percentage of offering price)....................... None
Contingent Deferred Sales Charge (as a percentage of
original
purchase price or redemption proceeds, as applicable)..... None
Redemption Fee (as a percentage of amount redeemed, if
applicable)............................................... None
Exchange Fee................................................ None
ANNUAL FUND OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee.............................................. 1.00%
12b-1 Fees(1)............................................... 0.00%
Total Other Expenses (after reimbursement)(2)............... 0.20%
Shareholder Services Fees(1)....................... 0.00%
Total Fund Operating Expenses (after
reimbursement)(3)..................................... 1.20%
</TABLE>
(1) The Fund has no present intention of paying or accruing 12b-1 fees or
shareholder services fees during the fiscal year ending November 30, 1998. If
the Fund were paying or accruing the 12b-1 fee or shareholder services fees, the
Fund would be able to pay up to 0.75% of its average daily net assets for the
12b-1 fees and up to 0.25% of its average daily net assets for the shareholder
services fees. See "FTI Funds Information."
(2) Total other expenses have been reduced to reflect the voluntary
reimbursement of certain other operating expenses by the adviser. The adviser
may terminate this voluntary reimbursement at any time at its sole discretion.
(3) The Total Fund Operating Expenses were 1.60% for the fiscal year ended
November 30, 1997. The current rate of Total Fund Operating Expenses is shown in
the table above, and reflects an increase in the voluntary reimbursement of
certain other operating expenses by the adviser from July 6, 1998 through the
fiscal year ending November 30, 1998. Total Fund Operating Expenses are
estimated to be 1.40% absent the anticipated voluntary reimbursement described
above in note (2), and are expected to be 1.37% for the fiscal year ending
November 30, 1998. <PAGE>
The purpose of this table is to assist an investor in understanding the
various costs and expenses that a shareholder of the Fund will bear, either
directly or indirectly. For more complete descriptions of the various costs and
expenses, see "Investing in the Funds" and "FTI Funds Information."
Wire-transferred redemptions of less than $5,000 may be subject to additional
fees.
LONG-TERM SHAREHOLDERS MAY PAY MORE OVER TIME THAN THE ECONOMIC EQUIVALENT
OF THE MAXIMUM FRONT-END SALES CHARGES PERMITTED UNDER THE RULES OF THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS, INC.
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years 5 years 10 years
------- -------- --------- --------- ---------
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment assuming (1) 5% annual return; (2)
redemption at the end of each time period; and (3)
payment of the maximum sales charge. The Fund charges
no redemption fees..................................... $12 $38 $66 $145
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. THIS
EXAMPLE IS BASED ON ESTIMATED DATA FROM JULY 6, 1998 THROUGH THE FUND'S FISCAL
YEAR ENDING NOVEMBER 30, 1998.
July 30, 1998
EDGEWOOD SERVICES, INC.
5800 CORPORATE DRIVE
PITTSBURGH, PA 15237-5829
CUSIP 302927108 SCEF
CUSIP 302927207 IEF
CUSIP 302927306 IBF
CUSIP 302927405 GBF
G01958-08 (7/98)
