KAYNE ANDERSON MUTUAL FUNDS
Supplement dated August 10, 2000
to the Statement of Additional Information
Dated April 28, 2000
THE FOLLOWING SUPPLEMENTS THE SECTION "PORTFOLIO TRANSANCATIONS AND BROKERAGE"
ON PAGE B-36 OF THE STATEMENT OF ADDITIONAL INFORMATION:
For the year ended December 31, 1999, brokerage commissions paid by the Large
Cap Fund to firms for research, statistical or other services provided to the
advisor were $10,261.20 and the transaction amounts related to the brokerage
commissions paid were $9,299,315.
For the year ended December 31, 1999, 9.85% and 33.62% of the Small Cap Fund and
International Fund's total commissions, respectively, were paid to KA
Associates, an affiliate of the Advisor.
