FLAG INVESTORS TOP 50 WORLD
CLASS A SHARES AND CLASS B SHARES
A Series of the Flag Investors Funds, Inc.
SUPPLEMENT TO THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION DATED
DECEMBER 31, 1999, AS REVISED JANUARY 18, 2000
Effective April 8, 2000, Investment Company Capital Corp. replaces Federated
Shareholder Services Company and Federated Services Company in each of their
capacities for the Funds and Portfolios. Accordingly, all references to
Federated Shareholder Services Company and Federated Services Company in your
Prospectus and Statement of Additional Information should reflect this change.
Investment Company Capital Corp. has principal offices at One South Street,
Baltimore, Maryland 21202, and can be called at 1-800-553-8080.
Effective March 31, 2000, the Flag Investors US Money Market Fund will not
accept new accounts or additional exchanges into the Fund (except for
participants in 401(k) plans).
Please add the following disclosure to the fifth paragraph under "FUND
MANAGEMENT" on Page 11 of your Prospectus:
"On March 9, 2000, Deutsche Bank AG announced a merger with Dresdner Bank
AG. Pending various approvals, the merger is scheduled to be completed by
January 1, 2001. Deutsche Bank AG is not expected to retain DWS as a
subsidiary after the merger is completed. The Board of Directors of the
Fund and Board of Trustees of the Portfolio have made no determination
regarding the status of DWS as the Portfolio's Sub-Adviser."
Please replace the section entitled "PORTFOLIO MANAGER" on Page 12 of your
Prospectus with the following:
"PORTFOLIO MANAGERS
Following are the portfolio managers who are primarily responsible
for the day-to-day management of the Portfolio that is the underlying
investment of the Fund.
Mr. Klaus Kaldemorgen has served as the sole portfolio manager since
the inception of the Portfolio in October 1997. He will share
responsibility for managing the Portfolio with Mr. Vermehren effective
March 2000. Mr. Kaldemorgen has 17 years experience as an investment
manager. Mr. Kaldemorgen joined the DWS Group in 1982 as Senior Investment
Officer, Head of the Global Equity Team, Investment Group of Deutsche
Bank. He supervises funds holding assets under management of EUR 25.0
billion ($24.1 billion) as of February 29, 2000. Mr. Kaldemorgen also
serves as Senior Portfolio Manager for the Top 50 Welt and Top 50 Asien,
German registered mutual funds with substantially the same investment
objective, policies and restrictions as the corresponding Portfolios for
the Top 50 World and Top 50 Asian Funds. He has held this position since
the inception of these funds in April 1996, and January 1997,
respectively.
Mr. Rainer Vermehren has participated in the management of the
Portfolio since its inception in October 1997, and will share
responsibility of portfolio manager with Mr. Kaldemorgen effective March
2000. He has three years experience as an investment manager. Mr.
Vermehren joined DWS in January 1997 and is responsible for U.S. and Latin
American equities. He supervises funds holding assets under management of
EUR 5.0 billion ($5.0 billion) as of February 29, 2000. Among the funds he
manages, are the DB-Lateinamerika, CH-US Equities, F&F Top 50
Internazionale and DWS-Konsumwerte. Mr. Vermehren serves as Co-Manager for
the DWS Top 50 Welt, DWS-Nord Amerika, and DWS US Aktien Typ-O. He has
held these positions since January 1997."
March 31, 2000
ICC Distributors, Inc., Distributor
SUPPTOP50W (3/00) 513233
FLAG INVESTORS TOP 50 ASIA
CLASS A SHARES AND CLASS B SHARES
A Series of the Flag Investors Funds, Inc.
SUPPLEMENT TO THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION DATED
DECEMBER 31, 1999, AS REVISED JANUARY 18, 2000
Effective April 8, 2000, Investment Company Capital Corp. replaces Federated
Shareholder Services Company and Federated Services Company in each of their
capacities for the Funds and Portfolios. Accordingly, all references to
Federated Shareholder Services Company and Federated Services Company in your
Prospectus and Statement of Additional Information should reflect this change.
Investment Company Capital Corp. has principal offices at One South Street,
Baltimore, Maryland 21202, and can be called at 1-800-553-8080.
Effective March 31, 2000, the Flag Investors US Money Market Fund will not
accept new accounts or additional exchanges into the Fund (except for
participants in 401(k) plans).
Please add the following disclosure to the fifth paragraph under "FUND
MANAGEMENT" on Page 13 of your Prospectus:
"On March 9, 2000, Deutsche Bank AG announced a merger with Dresdner Bank
AG. Pending various approvals, the merger is scheduled to be completed by
January 1, 2001. Deutsche Bank AG is not expected to retain DWS as a
subsidiary after the merger is completed. The Board of Directors of the
Fund and Board of Trustees of the Portfolio have made no determination
regarding the status of DWS as the Portfolio's Sub-Adviser."
Please replace the section entitled "PORTFOLIO MANAGER" on Page 13 of your
Prospectus with the following:
"PORTFOLIO MANAGERS
Following are the portfolio managers who are primarily responsible
for the day-to-day management of the Portfolio that is the underlying
investment of the Fund.
Mr. Klaus Kaldemorgen has served as the sole portfolio manager since
the inception of the Portfolio in October 1997. He will share
responsibility for managing the Portfolio with Mr. Gerhardt effective
March 2000. Mr. Kaldemorgen has 17 years experience as an investment
manager. Mr. Kaldemorgen joined the DWS Group in 1982 as Senior Investment
Officer, Head of the Global Equity Team, Investment Group of Deutsche
Bank. He supervises funds holding assets under management of EUR 25.0
billion ($24.1 billion) as of February 29, 2000. Mr. Kaldemorgen also
serves as Senior Portfolio Manager for the Top 50 Welt and Top 50 Asien,
German registered mutual funds with substantially the same investment
objective, policies and restrictions as the corresponding Portfolios for
the Top 50 World and Top 50 Asian Funds. He has held this position since
the inception of these funds in April 1996, and January 1997,
respectively.
Mr. Thomas Gerhardt has participated in the management of the
Portfolio since its inception in October 1997, and will share
responsibility of portfolio manager with Mr. Kaldemorgen effective March
2000. He has seven years experience as an investment manager. Mr. Gerhardt
joined DWS in 1993 as Portfolio Manager, responsible for Asian markets. He
serves as Senior Portfolio Manager, responsible for Asian and emerging
markets, since 1997. Mr. Gerhardt supervises funds holding assets under
management of EUR 3.0 billion ($3.0 billion) as of February 29, 2000.
Among the funds he manages are Top 50 Asien and DB Mandarin since 1993,
and DVG Emerging Markets since January 1997."
March 31, 2000
ICC Distributors, Inc., Distributor
SUPPTOP50A (3/00) 513234
FLAG INVESTORS TOP 50 US
CLASS A SHARES, CLASS B SHARES AND CLASS C SHARES A Series of the Flag Investors
Funds, Inc.
SUPPLEMENT TO THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION DATED
DECEMBER 31, 1999, AS REVISED JANUARY 18, 2000
Please replace the section under "FEES AND EXPENSES" on Page 3 and Page 4 of you
Prospectus with the following:
"This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.
CLASS A CLASS B CLASS C
SHARES SHARES SHARES
INITIAL DEFERRED DEFERRED
SALES SALES SALES
CHARGE CHARGE CHARGE
ALTERNATIVEALTERNATIVALTERNATIVE
--------------------------------
SHAREHOLDER FEES:
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price) . . . . . .. 5.50% None None
. . . . . . . . . . . . . . . . . . . . . . . . . .
. .
Maximum Deferred Sales Charge (Load) (as a
percentage
of original purchase price or redemption 0.00%* 5.00% ** 1.00%***
proceeds, whichever is lower) . . . .
Maximum Sales Charge (Load) Imposed on Reinvested None None None
Dividends . . . . . . . . .
Redemption Fee . . . . . . . . . . . . . . . . . . None None None
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
Exchange Fee . . . . . . . . . . . . . . . . . . . None None None
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . .
ANNUAL FUND OPERATING EXPENSES:
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees. . . . . . . . . . . . . . . . . . 0.85% 0.85% 0.85%
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .
Distribution and/or Service (12b-1) Fees . . . . . 0.25% 1.00% 1.00%
. . . . . . . . . . . . . . . . . . . . . . . . . .
.
Other Expenses. . . . . . . . . . . . . . . . . . . 4.61% 4.98% 5.30%
------ ----- -----
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
TOTAL ANNUAL FUND OPERATING EXPENSES (BEFORE FEE
WAIVERS AND EXPENSE 5.71% 6.83% 7.15%
REIMBURSEMENTS) . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .
Total Reimbursements of Fund Expenses . . . . . . . 4.56% 4.93% 5.25%
----- ----- -----
. . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL NET ANNUAL FUND OPERATING EXPENSES (AFTER FEE
WAIVERS AND 1.15% 1.90% 1.90%
===== ===== =====
EXPENSE REIMBURSEMENTS)**** . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
.
* You will pay no sales charge on purchases of $1 million or more of Class A
Shares. However, you may pay a contingent deferred sales charge when you
redeem your shares unless you are otherwise eligible for a sales charge
waiver or reduction. (See "Sales Charges - Redemption Price.")
** The maximum contingent deferred sales charge declines over time and reaches
0% after the sixth year. (See "Sales Charges" and "How to Choose the Class
That is Right for You.")
*** You will be required to pay a contingent deferred sales charge if you
redeem your Class C Shares within one year after purchase. (See "Sales
Charges - Redemption Price.")
**** The Manager has contractually agreed to waive its fees and reimburse
expenses of the Fund through April 30, 2001 to the extent necessary to
maintain the Fund's expense ratio at the level indicated as "Total Net
Annual Fund Operating Expenses (after reimbursements)."
EXAMPLE:
Example is intended to help you compare the cost of investing in each
class of the Fund with the cost of investing in other mutual funds. The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and 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 Fund's operating expenses remain the same. Each of the
examples assumes that the fee waivers and expense reimbursements to the
Fund's operating expenses are in effect for only the first year of the 1,
3, 5 or 10-year periods.
Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Class A Shares. . . . . . . . $658 $1,722 $2,771 $5,329
. . . . . . . . . . . . . . .
. . .
Class B Shares. . . . . . . . $688 $1,804 $2,974 $4,303
. . . . . . . . . . . . . . .
. . .
Class C Shares. . . . . . . . $288 $1,567 $2,895 $6,065
. . . . . . . . . . . . . . .
. . .
You would pay the following expenses if you did not redeem your shares:
Class A Shares. . . . . . . . $658 $1,722 $2,771 $5,329
. . . . . . . . . . . . . . .
. . .
Class B Shares. . . . . . . . $188 $1,504 $2,774 $4,303
. . . . . . . . . . . . . . .
. . .
Class C Shares. . . . . . . . $188 $1,567 $2,895 $6,065"
. . . . . . . . . . . . . . .
. . .
Please replace the section under "FUND MANAGEMENT" on Pages 11 and 12 of your
Prospectus with the following:
"Deutsche Fund Management, Inc. (DFM), the Portfolio's Adviser, is
responsible for managing the Portfolio's assets, including buying and
selling portfolio securities. However, the Adviser has delegated daily
management of the Portfolio's assets to the Sub-Adviser, who is paid by
the Adviser and not by the Portfolio. Deutsche Asset Management, Inc.
(DeAM, Inc.) is the Portfolio's Sub-Adviser. The address for the Adviser
is 280 Park Avenue, New York, NY 10017. The address for DeAM, Inc. is 855
Third Avenue, 32nd Floor, New York, New York 10022. The Adviser receives
an annual fee of 0.85% based on the average daily net assets of the
underlying Portfolio in which the Fund invests. The Adviser pays the
Sub-Adviser a portion of this fee. The Adviser has agreed to waive its fee
and reimburse expenses of the Fund and Portfolio in order to maintain the
Fund's total operating expenses (other than extraordinary expenses) at not
more than the following percentages of average annual net assets of the
Share classes through April 30, 2001: 1.15% for Class A Shares; 1.90% for
Class B Shares; and 1.90% for Class C Shares. The Fund may withdraw its
investment from the Portfolio at any time if the Fund's Board of Directors
determines that it is in the Fund's best interests to do so. The Board
would determine what action should be taken to manage the Fund's
investments, including investing of all the Fund's assets in another
investment company having the same investment objective and restrictions
as the Fund or retaining an investment adviser to directly manage the
Fund's assets in accordance with its investment objective and policies.
The Adviser and the Sub-Adviser are subsidiaries of Deutsche Bank AG, a
major global banking institution. With total assets the equivalent of US
$874.8 billion and 90,850 employees as of June 30, 1999, Deutsche Bank AG
is one of Europe's largest universal banks. It is engaged in a wide range
of financial services, including retail and commercial banking, investment
banking and insurance. Deutsche Bank AG and its affiliates may have
commercial lending relationships with companies whose securities may be
held by the Portfolio.
On June 4, 1999, Deutsche Bank AG (Deutsche Bank) acquired Bankers Trust
Corporation. On March 11, 1999, Bankers Trust Company (Bankers Trust), a
separate subsidiary of Bankers Trust Corporation, announced that it had
reached an agreement with the United States Attorney's Office in the
Southern District of New York to resolve an investigation concerning
inappropriate transfers of unclaimed funds and related record-keeping
problems that occurred between 1994 and 1996. Bankers Trust pleaded guilty
to misstating entries in the bank's books and records and agreed to pay a
$63.5 million fine to state and federal authorities. On July 26, 1999, the
federal criminal proceedings were concluded with Bankers Trust's formal
sentencing. The events leading up to the guilty pleas did not arise out of
the investment advisory or mutual fund management activities of Bankers
Trust or its affiliates. Deutsche Bank's acquisition of Bankers Trust
occurred after these events took place. As a result of the plea, however,
absent an order from the SEC, DFM and DeAM, Inc. may not be able to
continue to provide advisory services to the Funds. The SEC has granted a
temporary order to permit Bankers Trust and its affiliates to continue to
provide investment advisory services to registered investment companies.
There is no assurance that the SEC will grant a permanent order.
PORTFOLIO MANAGERS
Following are the portfolio managers who are primarily responsible for the
day-to-day management of the Portfolio that is the underlying investments
of the Fund. Each portfolio manager has served as manager of the Portfolio
since October 1999.
Mr. Leo Grohowski has been a Vice President of DeAM, Inc. since July 1999.
Mr. Grohowski joined Bankers Trust in 1996, where he has served as the
Managing Director and Head of Investment Management for the Trust and
Investment Advisory Group through 1999. He is Chief Investment Officer of
Bankers Trust Private Banking and Head of Active Equities for Deutsche
Asset Management Americas, supervising funds holding assets under
management of $22.5 billion as of June 30, 1999. Mr. Grohowski was Chief
Investment Officer and Managing Director of equity investments for HSBC
Asset Management Americas from 1988 to 1996.
Mr. Owen Fitzpatrick has been a Vice President of DeAM, Inc. since March
2000. Mr. Fitzpatrick has 13 years experience in investment management.
He joined Bankers Trust in 1995 as Director and Portfolio Manager for
Bankers Trust Private Banking and co-head of the Equity Strategy Group.
Mr. Fitzpatrick supervises funds holding assets under management of $1
billion as of June 30, 1999. Mr. Fitzpatrick was a Vice President,
Portfolio Manager and Research Analyst for Princeton Bank & Trust Company
from 1991 to 1995. Mr. Fitzpatrick is a Chartered Financial Analyst."
Effective April 8, 2000, Investment Company Capital Corp. replaces Federated
Shareholder Services Company and Federated Services Company in each of their
capacities for the Funds and Portfolios. Accordingly, all references to
Federated Shareholder Services Company and Federated Services Company in your
Prospectus and Statement of Additional Information should reflect this change.
Investment Company Capital Corp. has principal offices at One South Street,
Baltimore, Maryland 21202, and can be called at 1-800-553-8080.
Effective March 31, 2000, the Flag Investors US Money Market Fund will not
accept new accounts or additional exchanges into the Fund (except for
participants in 401(k) plans).
March 31, 2000
ICC Distributors, Inc., Distributor
SUPPTOP50US (3/00) 513235
FLAG INVESTORS TOP 50 EUROPE
CLASS A SHARES, CLASS B SHARES AND CLASS C SHARES
FLAG INVESTORS EUROPEAN MID-CAP FUND
CLASS A SHARES, CLASS B SHARES AND CLASS C SHARES
FLAG INVESTORS JAPANESE EQUITY FUND
CLASS A SHARES AND CLASS B SHARES
FLAG INVESTORS US MONEY MARKET FUND
CLASS A SHARES AND CLASS B SHARES
Series of the Flag Investors Funds, Inc.
SUPPLEMENT TO THE PROSPECTUSES AND STATEMENT OF ADDITIONAL INFORMATION DATED
DECEMBER 31, 1999, AS REVISED JANUARY 18, 2000
Effective April 8, 2000, Investment Company Capital Corp. replaces Federated
Shareholder Services Company and Federated Services Company in each of their
capacities for the Funds and Portfolios. Accordingly, all references to
Federated Shareholder Services Company and Federated Services Company in your
Prospectus and Statement of Additional Information should reflect this change.
Investment Company Capital Corp. has principal offices at One South Street,
Baltimore, Maryland 21202, and can be called at 1-800-553-8080.
Effective March 31, 2000, the Flag Investors US Money Market Fund will not
accept new accounts or additional exchanges into the Fund (except for
participants in 401(k) plans).
Please add the following disclosure to the fifth paragraph under "FUND
MANAGEMENT" on Page 8 of your Flag Investors US Money Market Fund Prospectus:
"On March 9, 2000, Deutsche Bank AG announced a merger with Dresdner Bank
AG. Pending various approvals, the merger is scheduled to be completed by
January 1, 2001."
Please add the following disclosure to the fifth paragraph under "FUND
MANAGEMENT" on Page 11 of your Flag Investors Japanese Equity Fund Prospectus
and Page 12 of your Flag Investors Top 50 Europe and Flag Investors European
Mid-Cap Fund Prospectuses:
"On March 9, 2000, Deutsche Bank AG announced a merger with Dresdner Bank
AG. Pending various approvals, the merger is scheduled to be completed by
January 1, 2001. Deutsche Bank AG is not expected to retain DWS as a
subsidiary after the merger is completed. The Board of Directors of the
Fund and Board of Trustees of the Portfolio have made no determination
regarding the status of DWS as the Portfolio's Sub-Adviser."
March 31, 2000
ICC Distributors, Inc., Distributor
SUPPDFSAI (3/00) 513122
