Marketvest Funds
Marketvest Funds, Inc.
Supplement to the Combined Prospectus dated June 30, 1997
At a Special Meeting held on November 11, 1997, the Board of Trustees/Directors
of Marketvest Funds and Marketvest Funds, Inc. (collectively referred to as the
"Funds") approved an Agreement and Plan of Reorganization between the Funds and
ARK Funds whereby certain existing or soon to be created portfolios of ARK Funds
would acquire the assets and stated liabilities of corresponding portfolios of
the Funds (as indicated below) in exchange for Institutional Shares of such
portfolios of ARK Funds. Shareholders of the Funds would then receive
Institutional Shares of the corresponding portfolios of ARK Funds that would be
equal in value to the Fund shares they owned, and the Funds would be liquidated
and terminated (the "Reorganizations"). The transactions would be tax-free to
Fund Shareholders and would be effected without the imposition of a sales
charge.
<TABLE>
<CAPTION>
<S> <C>
Marketvest Funds
Marketvest Funds, Inc. ARK Funds
Marketvest Equity Fund ARK Value Equity Portfolio
Marketvest International Equity Fund ARK International Equity Selection Portfolio
Marketvest Pennsylvania Intermediate ARK Pennsylvania Tax-Free Portfolio
Municipal Bond Fund
Marketvest Short-Term Bond Fund ARK Short-Term Bond Portfolio
Marketvest Intermediate U.S. ARK U.S. Government Bond Portfolio
Government Bond Fund
</TABLE>
The Reorganizations will be presented for the approval of Shareholders of the
Funds at a Special Meeting of Shareholders to be held on or about March 4, 1998.
Shareholders of the Funds will receive a proxy statement discussing the terms of
and the reasons for the Reorganizations in detail, and will be entitled to vote
at the Special Meeting. Assuming satisfaction of the conditions to the
Reorganizations, including approvals by Fund Shareholders, the completion of the
Reorganizations is contemplated to take place in March 1998.
In addition, effective January 1, 1998, Daryl B. Girton will no longer serve as
portfolio manager for Marketvest Short-Term Bond Fund and Cathleen S. Saylor
will no longer serve as portfolio manager for Marketvest Pennsylvania
Intermediate Municipal Bond Fund and Marketvest Intermediate U.S. Government
Bond Fund.
Effective January 1, 1998, Susan S. Schnaars will serve as portfolio manager for
Marketvest Pennsylvania Intermediate Municipal Bond Fund, Steven M. Gradow and
Wilmer C. Stith, III will serve as co-managers of Marketvest Short-Term Bond
Fund, and Steven M. Gradow and N. Beth Volk will serve as co-managers of
Marketvest Intermediate U.S. Government Bond Fund.
<PAGE>
Accordingly, please delete the biographical information of Daryl B. Girton and
Cathleen S. Saylor from the section entitled "Portfolio Managers' Background" in
the Prospectus and replace it with the following:
"Susan S. Schnaars, investment officer of Dauphin Deposit Bank & Trust Company
("Dauphin"), is the portfolio manager of Marketvest Pennsylvania Intermediate
Municipal Bond Fund effective January 1998. Ms. Schnaars is a Principal of
Allied Investment Advisors, Inc. and manager of the ARK Intermediate Fixed
Income Portfolio, ARK Maryland Tax-Free Portfolio and ARK Pennsylvania Tax-Free
Portfolio. Ms. Schnaars is also responsible for managing several commingled
funds (taxable and tax-free) and several large institutional accounts. Prior to
1992, Ms. Schnaars managed institutional and commingled fixed-income portfolios,
including the RAF Fixed Income Fund for PNC Investment Management and Research
(formerly known as Provident National Bank). Ms. Schnaars is a Chartered
Financial Analyst and a Certified Public Accountant.
Steven M. Gradow, investment officer of Dauphin, is a co-manager with Mr. Stith
of Marketvest Short-Term Bond Fund and co-manager with Ms. Volk of Marketvest
Intermediate U.S. Government Bond Fund effective January 1998. Mr. Gradow is a
Managing Director of Allied Investment Advisors, Inc. and manager of ARK Income
Portfolio. Prior to joining First Maryland in January 1996, Mr. Gradow was
responsible for management of $15 billion of fixed-income pension assets for
Washington State Investment Board in Seattle for four years. Mr. Gradow's
experience also includes five years of fixed-income management for the Public
Employees Retirement System of California (CALPERS).
Wilmer C. Stith, III, investment officer of Dauphin, is a co-manager with Mr.
Gradow of Marketvest Short-Term Bond Fund effective January 1998. Mr. Stith is a
Vice President of Allied Investment Advisors, Inc. and Fixed Income Portfolio
Manager. He manages separate account money market accounts, assists in the
management of the ARK money market portfolios, and is responsible for analyzing
and trading various fixed-income securities. Prior to joining Allied, Mr. Stith
was an investment executive with the Treasury Banking Group of First National
Bank of Maryland.
N. Beth Volk, investment officer of Dauphin, is a co-manager with Mr. Gradow of
Marketvest Intermediate U.S. Government Bond Fund effective January 1998. Ms.
Volk is a Principal of Allied Investment Advisors, Inc. and Senior Fixed-Income
Credit Analyst responsible for leading the corporate research efforts of the
Fixed Income Group. Prior to 1996, Ms. Volk was the former head of corporate
fixed income research at Alex. Brown & Sons. Ms. Volk has over 17 years of
experience in the industry. Ms. Volk is a Chartered Financial Analyst."
December 19, 1997
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Cusip 57061D107 Cusip 57061D206 Cusip 57061E105 Cusip 57061E204 Cusip
57061E303 G01608-09 (12/97)
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