The Heritage West Dividend Capture Income Fund
Supplement dated April 9, 1999 to the
Prospectus dated June 17, 1998
Replace "What is the Fund's Investment Objective" on page 2 with:
The investment objective of the Fund is to achieve a high rate of current
income. Heritage West Advisors, LLC (the "Advisor") attempts to achieve
this objective by primarily buying and selling preferred stocks as well as
securities having similar characteristics. No assurance can be made that
the Fund will achieve its objective.
Append to the "What is Preferred Stock" section on page 2 the following:
Securities Having Characteristics of Preferred Stocks
"Preferred-type" securities that the Fund may purchase include, among
others, Monthly/Quarterly Income Debt Securities (MIDST/QUIDST), Preferred
Trust Securities, Quarterly Income Capital Securities (QUICS), Quarterly
Interest Bonds (QUIBST), Monthly/Quarterly Income Preferred Shares
(MIPS/QUIPS) and Trust Originated Preferred Securities (TOPrS) and Trust
Preferred Securities. These securities, also known as Fixed Rate Capital
Securities (FRCS) are debt securities that pay a fixed amount of interest
to security holders on a monthly or quarterly basis. Generally, FRCS are
unsecured and subordinated to other debt of the same issuer. This means
that no specific asset or collateral exists to support repayment of
principal or interest to security holders and that the rights to interest
and principal payments of holders of these securities rank below payments
owed to holders of more senior debt. In the event of bankruptcy,
insolvency, dissolution or any other restructuring, holders of senior debt
securities of the issuer will be paid principal and interest due before
holders of subordinated debt securities. Holders of the issuer's equity in
the form of preferred or common stock will receive payment after all
debtholders' claims have been satisfied.
Append to the "What is the Advisor's Strategy" section on page 3 the following:
In addition to exploiting inefficiencies in the preferred stock market the
Advisor may choose to hold preferred stocks and securities having the
characteristics of preferred stocks to recoup any unrealized capital loss
incurred due to a price decline in the security. In other circumstances, a
dividend may have been captured but the Advisor may choose to continue
holding the security to realize a capital gain. The Advisor may also
purchase and hold securities having characteristics of preferred stocks in
the same manner as just described, except that these securities would be
held during the period around the dates that they pay interest.
All references to "preferred stocks" are expanded to include
"securities having characteristics of preferred stocks."
