THE HIGHLAND FAMILY OF FUNDS
THE HIGHLAND GROWTH FUND
Supplement Dated October 14, 1997 to
Prospectus Dated April 14, 1997
1. Shares of Highland Aggressive Growth Fund currently are not offered for sale.
2. Add to page 3 before the section captioned "The Highland Family of Funds,"
the following text and table:
FINANCIAL HIGHLIGHTS
The following information represents selected data for a single share
outstanding of the Highland Growth Fund. This information is not audited.
Highland Growth Fund commenced operations on May 13, 1997. The financial
statements for the period May 13, 1997 through August 31, 1997 are set forth in
Appendix B to the SAI and may be obtained from the Company without charge.
Period Ended
AUGUST 31, 1997
Net Asset Value, Beginning of Period $10.00 (a)
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Investment Operations
Net Investment Income (Loss) (0.02)
Net Realized and Unrealized Gain (Loss) on
Investments 1.24
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Total from Investment Operations 1.22
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Net Asset Value, End of Period $11.22
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Total Return 12.20% (b)
Ratio/Supplementary Data:
Net Assets at End of Period (000's omitted) $460
Ratios to Average Net Assets:
Expenses including reimbursement/waiver 1.95% (c)
Expenses excluding reimbursement/waiver 121.41% (c)
Net investment income (loss) including
reimbursement/waiver (0.69%) (c)
Average Commission Rate (d) $ 0.2337
Portfolio Turnover Rate 1.43%
(a) The Fund commenced operations on May 13, 1997.
(b) Not annualized.
(c) Annualized.
(d) Amount represents the average commission per share paid to brokers on the
purchase or sale of equity securities.
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THE HIGHLAND FAMILY OF FUNDS
HIGHLAND GROWTH FUND
HIGHLAND AGGRESSIVE GROWTH FUND
SUPPLEMENT DATED OCTOBER 14, 1997 TO
THE STATEMENT OF ADDITIONAL INFORMATION
DATED APRIL 14, 1997
AS AMENDED OCTOBER 14, 1997
Shares of Highland Aggressive Growth Fund currently
are not offered for sale.
