SUPPLEMENT DATED NOVEMBER 9, 1999
TO PROSPECTUS DATED SEPTEMBER 20, 1999
THE SMT FUND
The following information supplements the information found in the Fund's
prospectus on page 3, under the heading "Principal Strategies":
In order to minimize certain adverse tax consequences that might arise
because of frequent portfolio turnover, the Fund may, instead of investing
directly in common stock, invest in other equity securities. These other
securities include S&P Depository Receipts ("SPDRs"), DIAMONDS, NASDAQ 100
Depository Receipts, and other similar instruments. SPDRs are shares of a
publicly traded unit investment trust which owns the stocks included in the S&P
500 Index, and changes in the price of SPDRs track the movement of the index
relatively closely. DIAMONDS and NASDAQ 100 Depository Receipts are similar to
SPDRs, but own the securities consisting of all of the stocks of the Dow Jones
Industrial Average and the NASDAQ 100 Index, respectively.
The following information supplements the information found in the Fund's
prospectus on page 3, under the heading "Principal Risks of Investing in the
Fund":
The securities described in this supplement are equity securities, and
like common stocks, are more volatile than some other investment choices, such
as money market funds or U.S. Treasury bills. The value of the Fund's shares may
decrease in response to the activities and financial prospectus of the
individual companies included in the underlying index.
The following information supplements the information found in the Fund's
prospectus on page 8, under the heading "Other Information About Investments and
Strategies":
When the Fund is in the market, the adviser generally intends to stay
fully invested (subject to liquidity requirements) in common stock or other
equity instruments. The Fund normally will invest primarily in common stocks of
companies whose securities, in the opinion of the adviser, are well established
and enjoy an acceptable degree of liquidity, or in shares of unit investment
trusts which own such common stocks.
This Supplement, and the Prospectus dated September 20, 1999, contain
information that you should know before investing in the Fund and should be
retained for future reference. Additional information is included in the State
of Additional Information dated September 20, 1999, which has been filed with
the Securities and Exchange Commission and is incorporated herein by reference.
It is available upon request and without charge by calling 877-SMT-FUND.
