The Internet Fund June 17, 1999
Supplement to the Prospectus
dated April 30, 1999
Effective June 11, 1999, the proposed assignment of the Investment Advisory
Contract with Kinetics Asset Management, Inc. (the "Adviser") to Lepercq, de
Neuflize & Co. Incorporated has terminated. Kinetics Asset Management, Inc. will
continue to be the investment adviser of The Internet Fund under the existing
Investment Advisory Contract. The termination of the proposed assignment of the
Investment Advisory Contract will have no immediate impact upon the adviser's
performance of its responsibilities and obligations. Furthermore, Ryan Jacob
will continue as the portfolio manager of The Internet Fund.
The prospectus is amended as follows:
Page 5
Following the section under the caption "Management of the Fund", the following
material should be deleted:
On March 12, 1999, Kinetics Asset Management, Inc. entered into an
agreement under which its business and substantially all of its assets
will be sold to Lepercq, de Neuflize & Co. Incorporated ("Lepercq"), an
investment adviser registered under the Investment Advisers Act of 1940.
If effectuated, this transaction will result in an assignment of the
Investment Advisory Contract with the adviser to Lepercq. Under the
Investment Company Act of 1940, such an assignment will cause the
Investment Advisory Contract between the fund and the adviser to
automatically terminate. Therefore, as a condition to the closing of the
purchase, the shareholders of the fund will be asked to approve a new
Investment Advisory Contract with Lepercq.
The adviser and Lepercq have indicated that the potential sale of the
adviser will have no immediate impact upon the adviser's performance of
its responsibilities and obligations. Furthermore, Ryan Jacob will
continue as the portfolio manager of the fund.
Please retain this Supplement with your Prospectus for future reference.
