COMMONWEALTH SHAREHOLDER SERVICES, INC.
1500 Forest Avenue, Suite 223, Richmond, VA 23229
804-285-8211 * 800-527-9500 * (fax) 804-285-8251
FILED VIA EDGAR
Filing Desk
U.S. Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
RE: Monument Series Fund, Inc.
File Number 333-26223
Gentlemen:
Transmitted herewith for electronic filing, please find enclosed pursuant to
Rule 497 (e) a copy of the Supplement to the Prospectus for the Monument Series
Fund, Inc.
This Supplement dated July 10, 2000 to the Prospectus dated June 30, 2000 adds
Class C Shares.
Sincerely,
/s/ Darryl S. Peay
-------------------------
Darryl S. Peay
Vice President
Filed pursuant to Rule 497(e)
Registration File Nos.: 333-26223
811-8199
MONUMENT SERIES FUND
MONUMENT INTERNET FUND
MONUMENT MEDICAL SCIENCES FUND
MONUMENT TELECOMMUNICATIONS FUND
CLASS C SHARES
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 Medical Sciences 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 part of the prospectus dated June 30, 2000:
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.
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 Reinvested Dividends and None
Distributions
Redemption Fees None
Exchange Fees None
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Annual Fund Operating Expenses
(expenses that are deducted from fund assets as a percentage of average net
assets)
Class C Shares
Internet Medical Sciences Telecom
Advisory Fee 1.25% 1.25% 1.25%
Distribution (12b-1) Fees3 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 contingentdeferred 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:
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1 Year: 3 Years: 5 Years: 10 Years:
Internet 368 823 1405 2983
Medical Sciences 403 927 1577 8548
Telecommunications 403 927 1577 7078
The above examples assume payment of the maximum initial sales charge of
1.% 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 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 sales 5.75% None None
charge. (Subject to
reductions
See "Distribution beginning with
Arrangements" for a investments of
schedule itemizing $50,000)
reduced sales
charges.
Contingent deferred None Year 1 5% Year 1 1%
sales charge Year 2 4% Years 2+ None
("CDSC") imposed Year 3 3%
when shares are Year 4 3%
redeemed (percentage Year 5 2%
based on purchase Year 6 1%
price). Years are Year 7 None
based on a Year 8 None
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 Class A N/A Automatically after No conversion
about 8 years, at feature. Rule
which time 12b-1 fees remain
applicable Rule higher than those
12b-1 fees are of Class A Shares
reduced. for life of
account.
Appropriate for: All investors, Investors who plan Investors who
particularly those to hold their intend to hold
who intend to hold shares at least 6 their shares for
their shares for a years. at least 1 year,
long period of but less than 6
time and/or invest years.
a substantial
amount in the Fund.
<PAGE>
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
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Minimum Initial Investment $1,000 $1,000 $1,000
Minimum Subsequent $250* $250* $250*
Investment
* 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.