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Rule 497(e)
File Nos. 333-16093 and 811-0792
BERKELEY FUNDS
Supplement dated April 21, 1998 to
Berkeley Money Market Fund Prospectus
dated March 2, 1998
Effective April 21, 1998, the "Summary of Expenses" table on page 1 of
the Berkeley Money Market Fund Prospectus has been revised as follows:
SUMMARY OF EXPENSES
Shareholder Transaction Expenses ................................. None
Annual Fund Operating Expenses
(as a percentage of average net assets)
Management Fee* ............................................ 0.25%
12b-1 Fee .................................................. None
Other Expenses
Service Fee .............................. 0.25%
Miscellaneous Expenses* .................. 0.13%
Total Other Expenses* .................... 0.38%
Total Fund Operating Expenses* ........... 0.63%
*Although not required to do so, the Investment Manager has agreed to reduce
its fees and, or reimburse the Fund for certain expenses to the extent
necessary to limit the Total Fund Operating Expenses to the amount indicated
above. The Fund is required to reimburse the Investment Manager for any
reduction of fees and reimbursement of expenses only during the three years
following such reductions and, or reimbursements and only if certain
conditions set forth in the section titled "Organization and Management of
the Fund -- Operating Fees and Expenses" below are satisfied. Absent such
reduction and, or reimbursement, the Fund's actual total operating expenses for
the current year are estimated to be 0.80% (0.30% other expenses). The
Investment Manager may terminate these voluntary reductions at any time.
EXAMPLE. You would pay the following expenses on a $1,000 investment,
assuming (1) a 5% annual return and (2) redemptions at the end of each period:
1 Year ..................................................... $6
3 Years .................................................... $20
The purpose of the preceding table is to assist investors in understanding
the various costs and expenses that an investor in the Fund will bear
directly or indirectly. In the table above, "Other Expenses" is based on
estimated amounts for the current fiscal year. THE EXAMPLE SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY
BE GREATER OR LESS THAN THOSE SHOWN. The example assumes a 5%
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annual rate of return pursuant to requirements of the SEC. This hypothetical
rate of return is not intended to be representative of past or future
performance.
Effective April 21, 1998, the subsection titled "Operating Fees and
Expenses" under "Organization and Management of the Fund" has been revised as
follows:
OPERATING FEES AND EXPENSES. Pursuant to its Investment Management Agreement
with the Trust, the Investment Manager receives from the Fund an annual fee,
payable monthly, of 0.25% of the Fund's average daily net assets. As
described in the "Summary of Expenses" table, the Investment Manager has
agreed to reduce its fees and/or to reimburse the Fund for certain expenses
to the extent necessary to limit the Total Fund Operating Expenses of the
Fund to 0.63%. The Fund is required to reimburse the Investment Manager for
any reduction of fees and reimbursement of expenses only during the three
years following such reductions and/or reimbursements and only if such
reimbursements by the Fund (i) are requested by the Investment Manager, (ii)
are approved by the Trust's Board of Trustees, and (iii) can be achieved
within the Fund's then current expense limits (after all current expenses of
the Fund for that year have been paid).
