FTI FUNDS
fti municipal bond fund
fti bond fund
fti large capitalization growth fund
fti large capitalization growth and income fund
fti small capitalization equity fund
fti international equity fund
SUPPLEMENT TO COMBINED PROSPECTUS DATED MARCH 31, 2000
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A special meeting of the shareholders of FTI Funds (the "Trust"), which
presently consists of six portfolios or series, FTI Municipal Bond Fund, FTI
Bond Fund, FTI Large Capitalization Growth Fund, FTI Large Capitalization Growth
and Income Fund, FTI Small Capitalization Equity Fund and FTI International
Equity Fund (individually a "Fund," and collectively the "Funds"), was held at
the offices of Fiduciary International, Inc., the Funds' investment adviser,
located at Two World Trade Center, 94th floor, New York, New York, at 10:00 a.m.
(Eastern time), on November 21, 2000.
At the meeting, shareholders of record on October 11, 2000, approved the
following items. Please note that changes to the Funds' investment policies are
not expected to result in any material change in the manner in which the Funds
are invested.
(1) Elect five Trustees.
(2) Amended the Funds' fundamental investment policies:
(a) Amended the Funds' fundamental investment policy regarding
diversification to read as follows:
"The Fund is a "diversified company" within the meaning of the 1940
Act. The Fund will not purchase the securities of any issuer if, as a
result, the Fund would fail to be a diversified company within the
meaning of the 1940 Act Laws, Interpretations and Exemptions."
(b) Amended the Funds' fundamental investment policy regarding issuing
senior securities and borrowing money to read as follows:
"The Funds may borrow money, directly or indirectly, and issue senior
securities to the maximum extent permitted under the 1940 Act, Laws,
Interpretations and Exemptions."
(c) Amended the Funds' fundamental investment policy regarding investments
in real estate to read as follows:
"The Funds may not purchase or sell real estate, provided that this
restriction does not prevent the Funds from investing in issuers which
invest, deal, or otherwise engage in transactions in real estate or
interests therein, or investing in securities that are secured by real
estate or interests therein. The Funds may exercise their rights under
agreements relating to such securities, including the right to enforce
security interests and to hold real estate acquired by reason of such
enforcement until that real estate can be liquidated in an orderly
manner."
(d) Amended the Funds' fundamental investment policy regarding investments
in commodities to read as follows:
"The Funds may not purchase or sell physical commodities, provided
that the Funds may purchase securities of companies that deal in
commodities."
(e) Amended the Funds' fundamental investment policy regarding
underwriting securities to read as follows:
"The Funds may not underwrite the securities of other issuers, except
that the Funds may engage in transactions involving the acquisition,
disposition or resale of its portfolio securities, under circumstances
where it may be considered to be an underwriter under the Securities
Act of 1933."
(f) Amended the Funds' fundamental investment policy regarding lending by
the Funds to read as follows:
"The Funds may not make loans, except to the extent permitted by the
1940 Act Laws, Interpretations and Exemptions. This restriction does
not prevent the Funds from purchasing debt obligations, entering into
repurchase agreements, lending its assets to broker/dealers or
institutional investors and investing in loans, including assignments
and participation interests. This restriction will not prevent the
Funds from lending to each other consistent with any exemption the
Funds might obtain or as permitted by the 1940 Act Laws,
Interpretations and Exemptions"
(g) Amended the Funds' fundamental investment policy regarding
concentration of the Funds' investments in the securities of companies
in the same industry to read as follows:
"The Funds will not make investments that will result in the
concentration (as that term may be defined or interpreted by the 1940
Act Laws, Interpretations and Exemptions) of their investments in the
securities of issuers primarily engaged in the same industry. This
restriction does not limit the Funds' investments in (i) obligations
issued or guaranteed by the U.S. Government, its agencies or
instrumentalities, or (ii) tax-exempt obligations issued by
governments or political subdivisions of governments. In complying
with this restriction, the Funds will not consider a bank-issued
guaranty or financial guaranty insurance as a separate security."
(h) Removed the Funds' fundamental investment policy on selling securities
short and amended, and made non-fundamental, the Funds' fundamental
investment policy regarding buying securities on margin to read as
follows:
"The Funds will not purchase securities on margin, provided that the
Funds may obtain short-term credits necessary for the clearance of
purchases and sales of securities, and further provided that the Funds
may make margin deposits in connection with its use of financial
options and futures, forward and spot currency contracts, swap
transactions and other financial contracts or derivative instruments."
(i) Amended, and made non-fundamental, the Funds' fundamental investment
policy regarding pledging assets to read as follows:
"The Funds will not mortgage, pledge, or hypothecate any of their
assets, provided that this shall not apply to the transfer of
securities in connection with any permissible borrowing or to
collateral arrangements in connection with permissible activities."
(3) Approved an Amendment to the Funds' Declaration of Trust.
(4) Ratified the selection of Ernst & Young LLP as independent accountants
for each of the Funds for the fiscal year ending in 2001.
To transact such other business as may properly come before the
meeting or any adjournment thereof.
November 21, 2000
Edgewood Services, Inc., Distributor
CUSIP 302927504 MBF
CUSIP 302927603 BF
CUSIP 302927702 LCGF
CUSIP 302927801 LCGIF
CUSIP 302927108 SCEF
CUSIP 302927207 IEF
26034 (11/00)
