<PAGE>
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).
April 7, 2000
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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 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."
April 7, 2000
<PAGE>
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 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."
April 7, 2000
