Granum Value Fund
(a series of Granum Series Trust)
Supplement dated March 11, 1999 to
Statement of Additional Information dated March 1, 1999
This information supplements the Statement of Additional (SAI)
for the Granum Value Fund dated March 1, 1999. This Supplement, together with
the SAI, constitute a current Statement of Additional Information.
The Fund is authorized to participate in other derivative
transactions. The Fund may take advantage of opportunities in the area of swaps,
swaptions and certain other customized derivative instruments (provided such
other instruments are used ina a manner consistent with the Fund's investment
objective and investment restrictions).
A swap is a contract under which two parties agree to make
payments to each other based on specified interest rates or the value of an
index or other instrument, applied to a stated or "notional" amount. Swaps in
which the Fund may participate generally can be classified as interest rate
swaps, currency swaps or equity swaps, depending on the type of index or
instrument used to calculate the payments. Such swaps would increase or decrease
the Fund's investment exposure to the particular interest rate, currency or
equity involved. A swaption is an option entitling one party to enter into a
swap agreement with a counterparty. In addition to swaps and swaptions, the Fund
may become a party to various other customized derivative instruments entitling
the counterparty to certain payments on the gain or loss on the value of an
underlying or referenced instrument. Certain swaps, swaptions and other
derivative instruments may be subject to various types of risks, including
market risk, liquidity risk, counterparty credit risk, legal risk and operations
risk. In addition, swaps and other derivatives can involve significant economic
leverage and may, in some cases, involve significant risks of loss.
