COMMONWEALTH SHAREHOLDER SERVICES,INC.
1500 FOREST AVENUE, SUITE 223
RICHMOND, VIRGINIA 23229
(804) 285-8211
FILED VIA EDGAR
July 28, 2000
Filing Desk
U.S. Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Reference: Monument Series Fund
File Number 333-26223
Filed Pursuant to rule 497(e)
Gentlemen:
Transmitted herewith for electronic filing on behalf of Monument Series Fund
please find enclosed, pursuant to Rule 497(e) under the Securities
Act of 1933, as amended, a supplement dated July 10, 2000 to the prospectus
dated June 30, 2000.
Should you have questions or comments regarding this filing, please contact
Beth-ann Roth at (703) 352-0095.
Sincerely,
/s/ Darryl S. Peay
------------------
Darryl S. Peay
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[MONUMENT FUNDS GROUP, INC. LOGO]
MONUMENT SERIES FUND
MONUMENT INTERNET FUND
MONUMENT MEDICAL SCIENCES FUND
MONUMENT TELECOMMUNICATIONS FUND
SUPPLEMENT DATED JULY 10, 2000
TO THE PROSPECTUS DATED JUNE 30, 2000
This Supplement updates certain information contained in the Prospectus of
Monument Series Fund dated June 30, 2000 regarding the Monument Internet Fund,
Monument Medical Sciences Fund, and Monument Telecommunications Fund (each a
"Fund"). You may obtain an additional copy of the Prospectus, free of charge, by
writing to 7920 Norfolk Avenue, Suite 500, Bethesda, Maryland 20814, or by
calling 888-420-9950.
The following information is added to the end of the first paragraph on page 1
of the prospectus:
In addition to offering Class A and Class B Shares, each Fund offers Class C
Shares with a reduced front-end sales charge and a contingent deferred sales
charge.
The following information is added to pages 9-10 of the prospectus in the
section entitled "Table of Fees and Expenses:"
TABLE OF FEES AND EXPENSES
The following table is designed to help you understand the fees and expenses
that you may pay, both directly and indirectly, by investing in the Funds.
Shareholder Fees
(fees paid directly from your investment) Class C
----------------------------------------- -------
Maximum Sales Charge (Load)(1) 1.00%
Maximum Deferred Sales Charge (Load) 1.00(2)
Maximum Sales Charge (Load) Imposed on None
Reinvested Dividends and Distributions
Redemption Fees None
Exchange Fees None
Annual Fund Operating Expenses (Class C Shares)
(expenses that are deducted from fund assets as a percentage of average net
assets)
Internet Medical Sciences Telecommunications
Fund Fund Fund
-------- ---------------- ------------------
Advisory Fee 1.25% 1.25% 1.25%
Distribution (12b-1)Fees(3) 1.00% 1.00% 1.00%
Other Expenses 0.40% 0.75% 0.75%
Total Annual Fund
Operating Expenses 2.65% 3.00% 3.00%
Fee Waivers and/or
Expense Reimbursements(4)
Net Expenses 2.65% 3.00% 3.00%
----------
(1)As a percentage of offering price. The sales charge is waived for certain
classes of investors. See "Buying Fund Shares -- Public Offering Price" and
"Buying Fund Shares -- Rights of Accumulation."
(2)A contingent deferred sales charge of 1% is imposed on the proceeds of Class
C Shares redeemed within one year. The charge is a percentage of net asset
value at the time of purchase.
(3)The Company has approved a Plan of Distribution Pursuant to Rule 12b-1 of
the 1940 Act for Class C Shares, providing for the payment of distribution
fees to Monument Distributors, Inc., the principal underwriter for each Fund
("12b-1 Plan"). Class C Shares pay a maximum distribution fee of 1.00% of
average daily net assets. See "Rule 12b-1 Fees." The higher 12b-1 fees borne
by Class C Shares may cause long-term investors to pay more than the economic
equivalent of the maximum front end sales charge permitted by the National
Association of Securities Dealers.
(4)The Advisor has contractually agreed to waive its fees and pay expenses to
the extent necessary to cap Class C Share total operating expenses at 3.00%
of the Fund's average daily net assets until May 1, 2001.
Example. This example is intended to help you compare the cost of investing
in Class C Shares of the Fund with the cost of investing in other mutual funds
with similar investment objectives. The example assumes that you invest $10,000
in a class of shares of the Fund for the time periods indicated then redeem all
of your shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the operating expenses of the
relevant class remain the same. Although your actual cost may be higher or
lower, based on these assumptions your cost would be:
1 Year: 3 Years: 5 Years: 10 Years:
Internet $ 368 $ 823 $1,405 $2,983
Medical Sciences 403 927 1,577 8,548
Telecommunications 403 927 1,577 7,078
The above examples assume payment of the maximum initial sales charge of
1.00% at the time of purchase. Your actual expenses may vary. The above examples
assume payment of the deferred sales charge applicable at the time of
redemption.
The following information is added to page 11 of the prospectus in the third
paragraph of the section entitled "The Advisor:"
In the interest of limiting expenses of the Funds, Monument Advisors has
entered into an expense limitation agreement with the Company. Pursuant to the
agreement, Monument Advisors has agreed to waive or limit its fees and to assume
other expenses so that the total annual operating expenses for Class C Shares of
the Funds covered by the agreement are limited to 3.00%. This limit does not
apply to interest, taxes, brokerage commissions, other expenditures capitalized
in accordance with generally accepted accounting principles or other
extraordinary expenses not incurred in the ordinary course of business.
The following information is added to page 11 of the prospectus after the
section entitled "Principal Underwriter:"
Other Information. Advisors or its affiliates may make payments to
broker-dealers, financial advisors, banks or other financial institutions for
certain services to the Funds and/or their shareholders, including (but not
limited to) sub-administration, sub-transfer agency and shareholder servicing.
These payments come out of the resources of the entity making the payment so
that there are no additional costs to the Funds or their shareholders.
The following information replaces the material on page 12 of the prospectus
under the section entitled "Buying Fund Shares:"
Share Class Alternatives. The Fund offers investors three different classes
of shares. The different classes of shares represent investments in the same
portfolio of securities, but the classes are subject to different expenses and
may have different share prices. When you buy shares be sure to specify the
class of shares in which you choose to invest. If you do not select a class your
money will be invested in Class A Shares. Because each share class has a
different combination of sales charges, expenses and other features, you should
consult your financial advisor to determine which class best meets your
financial objectives. Additional details about each of the share class
alternatives may be found below under "Distribution Arrangements."
Class A Shares Class B Shares Class C Shares
-------------- -------------- --------------
Max. initial 5.75% None None
sales
charge. (Subject to
reductions
beginning with
investments of
$50,000)
See "Distribution Arrangements" for a schedule itemizing reduced sales
charges.
Contingent None Year 1 5% Year 1 1%
deferred sales Year 2 4% Years 2+ None
charge ("CDSC") Year 3 3%
imposed when Year 4 3%
shares are Year 5 2%
redeemed Year 6 1%
(percentage based Year 7 None
on purchase Year 8 None
price). Years
are based on a
twelve-month
period.
See below for information regarding applicable waivers of the CDSC.
Rule 12b-1 fees. 0.50% 1.00% 1.00%
See "Distribution
Arrangements"
for important
information
about Rule 12b-1
fees.
Conversion to N/A Automatically No conversion
Class A after about 8 feature. Rule
years, at 12b-1 fees
which time remain higher than
applicable those of
Rule 12b-1 Class A
fees Shares for
are reduced. life of
account.
Appropriate for: All Investors who Investors who
investors, plan to hold intend to hold
particularly their shares their shares
those who at least 6 for at least 1
intend to years. year, but less
hold their than 6 years.
shares
for a long
period of
time and/or
invest
a substantial
amount in the
Fund.
The following information replaces the table on page 13 of the prospectus
under the section entitled "Minimum Investments:"
Minimum Investments. The following table provides you with information on the
various investment minimums, sales charges and expenses that apply to each
class. Under certain circumstances the Fund may waive the minimum initial
investment for purchases by officers, directors and employees of the Company,
and its affiliated entities and for certain related advisory accounts,
retirement accounts, custodial accounts for minors and automatic investment
accounts as detailed below under "Waiver of Sales Charges."
Class A Class B Class C
------- ------- -------
Minimum Initial Investment $1,000 $1,000 $1,000
Minimum Subsequent Investment $ 250* $ 250* $ 250*
----------
* For automatic investments made at least quarterly, the minimum subsequent
investment is $100.
The following information replaces the paragraph on page 13 of the prospectus
under the section entitled "Public Offering Price:"
Public Offering Price. When you buy shares of a Fund, you will receive the
public offering price per share as determined after your order is received in
proper form, as defined below under the section entitled "Proper Form." The
public offering price of Class A and Class C Shares is equal to the Fund's net
asset value plus the initial sales charge. The public offering price of Class B
Shares is equal to the respective Fund's net asset value.
The following information is added to page 14 of the prospectus under the
section entitled "Distribution Arrangements:"
Class C Broker-Dealer Commission and Service Fee
Broker-Dealer
Sales Charge Percentage
------------ -------------
All purchases 1.00% 1.00%
After a one-year holding period, broker-dealers will be entitled to receive
an ongoing service fee of 0.25%, payable quarterly.
The following paragraph replaces the paragraph on page 14 of the prospectus
under the section entitled "Rule 12b-1 Fees:"
Rule 12b-1 Fees. The Board of Trustees has adopted a Plan of Distribution
pursuant to Rule 12b-1 under the 1940 Act ("Rule 12b-1 Plan") for each class of
shares. Pursuant to the Rule 12b-1 Plans, each Fund may finance any activity or
expense that is intended primarily to result in the sale of its shares. Each
Fund may pay a fee ("Rule 12b-1 fee") to Distributors, on an annualized basis of
its average daily net assets, up to a maximum of 1.00% for Class B and Class C
Share expenses and 0.50% for Class A Share expenses. Up to 0.25% of the total
Rule 12b-1 fee may be used to pay for certain shareholder services provided by
institutions that have agreements with the Funds' distributor to provide those
services. Each Fund may pay Rule 12b-1 fees for activities and expenses borne in
the past in connection with the distribution of its shares as to which no Rule
12b-1 fee was paid because of the maximum limitation. Because these fees are
paid out of a Fund's assets on an ongoing basis, over time these fees will
increase the cost of your investment and may cost more than paying other types
of sales charges.
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[MONUMENT FUNDS GROUP, INC. LOGO]
Monument Series Fund
Monument Internet Fund
Monument Medical Sciences Fund
Monument Telecommunications Fund
SUPPLEMENT DATED JULY 10, 2000
To the Prospectus dated June 30, 2000