DRIEHAUS MUTUAL FUNDS
SUPPLEMENT DATED JULY 10, 2000 TO
PROSPECTUS DATED MAY 1, 2000
On June 28, 2000, the Driehaus Mutual Funds' (the "Funds") Board of
Trustees authorized the adoption of a redemption fee of 2.00% of the amount of
shares redeemed within 60 days of purchase, effective as to shares purchased
after July 31, 2000.
The following information replaces the first paragraph under the heading
"Investor Expenses" on pages 4, 8, 12, 16 and 20:
SHAREHOLDER FEES. All Driehaus Mutual Funds are no-load investments, so you
will not pay any shareholder fees (such as sales loads) when you buy or
sell shares of the Fund, unless you sell your shares within 60 days after
purchase, as described in the table below. There is a $25 charge for
payments of redemption proceeds by wire (which may be waived for certain
financial institutions, however, certain financial institutions may charge
an account-based service fee).
The following information replaces similar information found in the table
under the subheading "Fees and Expenses of the Fund" on pages 4, 8, 12, 16 and
20:
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge Imposed on Purchases..............................None
Maximum Deferred Sales Charge..........................................None
Maximum Sales Charge Imposed on Reinvested Dividends...................None
Redemption Fee (on shares held less than 60 days for
shares purchased after July 31, 2000) (as a % of amount redeemed).....2.00%
Exchange Fee...........................................................None
The following sentence is added as the first bullet point under the
paragraph entitled "How to Purchase Shares" on page 34:
o The Funds will deduct 2.00% from the redemption amount if you sell
shares within 60 days of purchase effective as to shares purchased
after July 31, 2000.
The following sentence is added to the end of the first paragraph of the
section titled "Purchases through Financial Institutions" under the heading "How
to Purchase Shares" on page 34:
However, the Funds will deduct 2.00% from the redemption amount if you sell
your shares within 60 days of purchase effective as to shares purchased
after July 31, 2000.
The following information replaces in its entirety the second paragraph of
the section titled "Execution of Requests" found under the heading "General
Redemption Information" on page 36:
Each Fund will deduct a redemption fee of 2.00% from the value of shares
redeemed for shareholders who sell their shares within 60 days of purchase
effective as to shares purchased after July 31, 2000. This fee is paid to
the Fund and is designed to offset the commission costs, market impact
costs, tax consequences to the Fund, and other costs associated with
fluctuations in fund asset levels and cash flow caused by short-term
shareholder trading. Under certain circumstances, a Fund may not deduct a
redemption fee.
For shareholders who purchased shares on different days, the shares held
the longest will be redeemed first for purposes of determining whether the
redemption fee applies. The redemption fee does not apply to shares that
were acquired through reinvestment of distributions.
<PAGE>
A redemption order will be executed at the price which is the net asset
value determined after proper redemption instructions are received, minus
the redemption fee, if applicable (see "HOW TO REDEEM SHARES"). The
redemption price received depends upon the Fund's net asset value per share
at the time of redemption and any applicable redemption fee. Therefore, it
may be more or less than the price originally paid for the shares and may
result in a realized capital gain or loss.
The following information is added to the end of the section titled
"Exchanging Shares" under the heading "Shareholder Services and Policies" on
page 37:
The 2.00% redemption fee which applies to shareholders who sell their
shares within 60 days of purchase is also applied to shareholders who
exchange their shares for other Driehaus Mutual Fund shares within 60 days
of purchase effective as to shares purchased after July 31, 2000.
