SUPPLEMENT dated May 11, 1998 to PROSPECTUS dated
September 16, 1997,
as supplemented January 13, 1998
Kopp Emerging Growth Fund
Capitalized terms have the same meaning here as they do
in the Prospectus.
PRIOR PERFORMANCE OF INVESTMENT ADVISOR
The following information updates the information
contained on pages 6-7 of the Prospectus.
The following tables and charts show Advisor's
historical composite performance data for all actual,
fee paying, discretionary private accounts managed by
Advisor, for the periods indicated, that have
investment objectives, policies, strategies, and risks
substantially similar to those of the Fund. Since
inception of Advisor through March 1998, these accounts
have shown an annual return of approximately 30%. The
private accounts that are included in Advisor's
composite are not subject to the same types of expenses
to which the Fund is subject nor to the specific tax
restrictions and investment limitations imposed on the
Fund by the Code and the 1940 Act. Consequently, the
performance results for Advisor's composite could have
been adversely affected if the private accounts
included in the composite had been regulated as
investment companies under the federal tax and
securities laws.
Advisor's performance information has been
calculated in accordance with recommended standards of
the Association for Investment Management and Research
("AIMR"), retroactively applied to all time periods.
All returns presented were calculated on a total return
basis and include all dividends and interest, if any,
accrued income, if any, and realized and unrealized
gains and losses. All returns reflect the deduction of
investment advisory fees, brokerage commissions, and
execution costs paid by Advisor's private accounts
without provision for federal or state income taxes.
Custodial fees, if any, were not included in the
calculation. If custodial fees had been included,
Advisor's performance would have been lower. Also
excluded from the returns are expenses and fees,
including the advisory fee and any sales charges, that
an investor in the Fund will bear, since the
performance data presented does not represent the
performance of the Fund or an investment therein. If
such expenses and fees were included, the Advisor's
performance would have been lower. Cash and
equivalents are included in performance returns. Total
return is calculated monthly in accordance with the
"time-weighted" rate of return method provided for by
the AIMR standards, accounted for on a trade-date and
accrual basis. No leveraged positions were utilized.
Principal additions and withdrawals are weighted in
computing the monthly returns based on the timing of
these transactions. The monthly returns are
geometrically linked to derive annual total returns.
Also included in the first table below is an
annual measure of Advisor's composite dispersion. The
measure of composite dispersion illustrates the
internal risk associated with accounts included in the
composite.
<PAGE>
The following data is provided to illustrate the
past performance of Advisor in managing accounts which
are substantially similar to the Fund as measured
against specified market indices and does not represent
the performance of the Fund. Investors should not
consider this performance data as an indication of the
future performance of the Fund or Advisor.
Private Account Performance History
Annual Annual
Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Return Dispers
ion
1990 * * -26.89% 28.72% * *
1991 32.80% 4.35% 10.68% 31.51% 101.42% 47.3%
1992 -10.76% -4.18% 17.49% 33.80% 34.43% 27.5%
1993 -2.37% 30.38% 21.19% 2.74% 58.49% 22.9%
1994 -10.53% -6.70% 22.14% 23.52% 25.95% 12.6%
1995 5.32% 17.00% 13.96% -7.16% 30.37% 10.4%
1996 -0.37% 9.54% 1.12% 0.20% 10.58% 9.2%
1997 -16.48% 26.12% 21.04% -21.58% -0.02% 7.8%
1998 5.29% * * * * *
1 Year Rate of Return -0.02% 7.8%
(12/31/96 - (12/31/97)
3 Year Rate of Return - Annualized 12.96%
(12/31/94 - 12/31/97)
5 Year Rate of Return - Annualized 23.53%
(12/31/92 - 12/31/97)
Since Inception - Annualized 30.45%
6/30/90 - 12/31/97)
* Not applicable
<PAGE>
Growth of a Unit Value
June 30, 1990 through March 31, 1998
The graphic on page 3 of the Prospectus Supplement
contains a chart which plots the growth of $10,000
invested on June 30, 1990. The graphic compares the
Advisor's composite performance of this investment to
the Russell 2000. The plot points for the graphic are
as follows (numbers are in thousands):
Time Period Advisor Russell 2000
06-30-90 $ 10.00 $10.00
06-30-90 to 09-30-90 7.31 7.49
09-30-90 to 12-31-90 9.41 7.82
12-31-90 to 03-31-91 12.50 10.11
03-31-91 to 06-30-91 13.04 9.90
06-30-91 to 09-30-91 14.43 10.65
09-30-91 to 12-31-91 18.98 11.23
12-31-91 to 03-31-92 16.94 12.05
03-31-92 to 06-30-92 16.23 11.15
06-30-92 to 09-30-92 19.07 11.41
09-30-92 to 12-31-92 25.52 13.07
12-31-92 to 03-31-93 24.91 13.55
03-31-93 to 06-30-93 32.48 13.80
06-30-93 to 09-30-93 39.36 14.96
09-30-93 to 12-31-93 40.44 15.29
12-31-93 to 03-31-94 36.18 14.85
03-31-94 to 06-30-94 33.76 14.21
06-30-94 to 09-30-94 41.23 15.14
09-30-94 to 12-31-94 50.93 14.80
12-31-94 to 03-31-95 53.64 15.42
03-31-95 to 06-30-95 62.76 16.77
06-30-95 to 09-30-95 71.52 18.35
09-30-95 to 12-31-95 66.40 18.68
12-31-95 to 03-31-96 66.15 19.56
03-31-96 to 06-30-96 72.46 20.50
06-30-96 to 09-30-96 73.28 20.48
09-30-96 to 12-31-96 73.42 21.44
12-31-96 to 03-31-97 61.32 20.26
03-31-97 to 06-30-97 77.34 23.44
06-30-97 to 09-30-97 93.61 26.83
09-30-97 to 12-31-97 73.41 25.84
12-31-97 to 03-31-98 77.30 28.42
<PAGE>
Advisor Composite Performance (US$)
RUSSELL 2000 (US$)
Average Annualized Return in Percent
Period Ending
December 31, 1997 Advisor Composite Russell 2000
Performance
1 Year -0.02% 20.52%
2 Years 5.14% 17.61%
3 Years 12.96% 20.41%
4 Years 16.07% 14.02%
5 Years 23.53% 14.61%
6 Years 25.29% 14.90%
7 Years 34.11% 18.63%
Since Inception* 30.45% 13.49%
_______________________
*June 30, 1990.
Annualized Rate of Return
June 30, 1990 through December 31, 1997
The graphic on page 4 of the Prospectus Supplement
contains a bar chart which shows the annualized rate of
return from June 30, 1990 through December 31, 1997 for
the Advisor composite versus the NASDAQ OTC Index, the
Russell 2000 and the S&P 500 Index. The annualized
rate of return for the Advisor composite was 30.45%
versus 17.71%, 13.49% and 17.34% for the NASDAQ OTC
Index, the Russell 2000 Index and the S&P 500 Index,
respectively.
FUND ORGANIZATION AND MANAGEMENT
The following information supplements the
information contained on page 9 of the Prospectus.
Distributor
The Distributor from time to time will pay fees
to, and sponsor business seminars for, qualifying
brokers for certain services or activities that are
primarily intended to result in sales of Class A
shares. Fees may include payment for travel expenses,
including lodging, incurred in connection with trips
taken by invited registered representatives and members
of their families to luxury urban or resort locations
within or outside the United States for meetings or
seminars of a business nature. Brokers may elect to
receive cash incentives of equivalent amounts in lieu
of such payments.
ADDITIONAL INFORMATION
The following information amends the information
contained on the inside back cover of the Prospectus.
Officers
Effective February 9, 1998, Donald B. Cornelius
resigned as the Chief Financial Officer of the
Corporation. LeRoy C. Kopp has been appointed to serve
in such position until the election and qualification
of his successor.
Please retain this Supplement with the Prospectus for
future reference.
